ACKNOWLEDGEMENT

I owe gems of words of thanks to my guide Mr. Naved Zarif (H R ManagerWALMAR !" . L #$ M%%R& 'RAN(H) for a**owing me to do my summer training under his kind and a+*e guidan,e. My efforts in a,,om-*ishing this -ro.e,t are a resu*t of ,onstant motivation and -atient *istening su--ort +y him. he know*edge -rovided +y him has +een a great va*ue addition for me and wi** go a *ong way in sha-ing our -romising ,areers. A*so I wou*d *ike to e/-ress my s-e,ia* thanks to a** the fa,u*ty mem+ers for their ,onstant he*- for the ,om-*etion of the -ro.e,t. heir ever avai*a+*e en,ouragement and en*ightening guidan,e has +een of immense he*towards the su,,essfu* ,om-*etion of the -ro.e,t. A+ove a**$ I wou*d *ike to e/-ress my dee- gratitude to my -arents$ friends 0 s-e,ia**y to my +rother for -roviding me the mora* su--ort without whi,h it was im-ossi+*e to ,om-*ete the -ro.e,t Any suggestion or o-inion in favor of this -ro.e,t re-ort wou*d +e kind*y a,,e-ted. R%%NA 1&! A

RETAIL MARKETING IN INDIA

2

TABLE OF CONTENTS
1. Industry Overview 05 2. Organized Retail Sector 10 3. Origin of retail 13 4. Indian Retail Industry 18 5. Retailing or!ats in India 23 ". S#ecialty stores 25 $. %a&or Industry 'layers 33 8. ()e growt) *rivers 44 +. Swot of t)e %ar,et 51 10. -)allenges 55 11. .ocation 'lanning 58 12. -o!#etitor /nalysis "5 13. uture Outloo, "8 14. %erger and /c0uisition $0

3

15. References +4 4 . (ec)nology in retail $5 1". Researc) analysis 8" 1+. Researc) !et)odology 83 18. -onsu!er survey 0uestionnaire +0 21. -onclusion 8+ 20. 1overn!ent initiatives and regulation $+ 1$.

from discount stores to supermarkets to hypermarkets to specialty chains. near to their house. However. This organized segment typically comprises of a large number of retailers. kiranas still continue to score over modern formats mostly due to the convenience factor i. It s no longer about !ust stocking and selling but about efficient supply chain management. The government also stands to gain through more efficient collection of tax revenues. entertainment. greater enforcement of taxation mechanisms and better labour law monitoring system. $etwork marketing has been 5 . which will result in huge savings for the farmers as well as for the nation. The modern retail formats are encouraging development of well#established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens.Industry Overview Industry analysis of t)e Indian retail sector2 Modern retailing has entered India in form of malls and huge complexes offering shopping. developing vendor relationship "uality customer service.e. efficient merchandising and even the labour class is also in the working process timely promotional campaigns. leisure to the consumer as the retailers experiment with a variety of formats.

the kirana retailing has been one of the easiest ways to generate self#employment.ookstore 3ew or!ats +uasi#mall .orner *epartmental (tore +uasi#mall. as it re"uired minimum investment in terms of land. depilatory products and convenience and health foods.growing "uite fast and has a few large players today. In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country.ist of retailers t)at )ave co!e wit) new for!ats2 Retailer (hoppers) (top . These store are not affected by the modern format of retailing. The organized retailing has helped in promoting several niche categories such as packaged fruit !uices. &hmedabad. In order to keep pace with the modern formats. shower gels. 1wn brand store (ubhiksha (upermarket moving to self service %lobus fashion stores *epartment (tore considering (mall Traditionally. which are generally not found in the local kirana stores. 'stimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years . -ooking at the vast opportunity in this sector. hair creams. several small towns like $agpur. food courts and pharmacies appearing in many outlets. big players like 2eliance has announced its plans to become the country s largest modern retainers by establishing a chain of stores across all ma!or cities. %as stations are seeing action in the form of convenience stores. They also provide services like credit. &part from metro cities. kiranas have now started providing more value#added services like stocking ready to cook vegetables and other fresh produce. (mall towns in Maharashtra are emerging as retail hubs for large chain stores like /antaloon 2etail because many small cities like $agpur have a student 6 . fabric bleaches. 3olhapur and &mravati has seen the expansion of modern retails. home delivery etc. (holapur. $asik.rossword shop /iramyd 0ood retail /antaloon Hypermarket -urrent or!at *epartment (tore -arge . labour and capital. &urangabad. phone service. &TMs.

retailers need to ad!ust their product mix for smaller cities. 7< 9= 86 7< 74 24t) 34 7. 47 45 1st Socio demographic factors will lead to faster growth of Organized retail in India: 7 . as they tend to be more conservative than the metros. restructuring the tax regime.razil India4s Ran. accessing and developing new skills and investing significantly in India. =6 79 =< =5 :7 79 14t) +1 8< 7: 99 75 7. fewer power cuts and lower levels of attrition. India is rated as t)e !ost attractive retail !ar. . lower real estate costs.et /ttractiveness 255 %ar.et Saturation 305 (i!e 'ressure 205 Ran. "2 74 9. However.population.hina Turkey Thailand Malaysia 'gypt .7 78 1st 80 54 56 97 8< =6 :6 46 $t) 1st 4nd 4t) 5 <4 <. In order for the market to grow in modern retail. it is necessary that steps are taken for rewriting laws. India 2ussia .ets -ountry Ris. -ountry 255 %ar.

6> 96> =6> 46> 6> 5> <5> 47> 5> <5> 4=> <6> 46> 4=> <<> 44> 49> <4> 4:> 48> =8> =8> =7> =4> :5> <55< 6#<5 ?rs <559 46#:= ?rs 466< :7#7= ?rs 4669 77@ ?rs 46<6' 8 .<66> .

lothing and Textile :9> Health A .ooks.eauty <> . Music A %ifts :> Batch A Cewellery <8> 0ootwear <:> 9 .'ntertainment *urable <6> <> Home :> /harma 4> 0ood A %rocery <=> .

ORGANIZ ! R "AI# :. .

apparel and electronics retailers usually enter emerging markets some two years after international grocers establish themselves. 3earney. India has attracted Gthe low end and the high end because of the breadth of the consumer segments that are available. do#it#yourself. are limited to cash#and#carry and franchise or license operations. debt and credit ratingsF market attractiveness . a principal :: . : from its $o. together with retailers moving into second#tier cities.G The country s growing population of young urban professionals with disposable incomes and the nouveau riche has also made India attractive for luxury retailers.Emerging Retail Markets: India. according to the study. <6 India has emerged as the world s most attractive destination for mass merchant and food retailing. 3earney s consumer and retail practice.G the report said. population.T. Bhile India and 2ussia have held the top two spots since 466=. Middle 'astern countries are also represented on the list. with (audi &rabia ranking $o. Bhen variables stay constant. maintaining its 4667 position in an annual study of retail investment attractiveness among :6 emerging markets.G said 0adi 0arra. In India. . encompassing retail sales per capita. . 7 spot last year.G said %urski. %urski said. India was given the top ranking in management consulting company &T 3earney s 4669 %lobal 2etail *evelopment Index H%2*II.hina and Dietnam top the list of the most attractive emerging markets for retailers investment in 4668. India has already attracted the attention of global retailers like Bal# Mart (tores Inc. measuring political risk. there will be little opportunity for market domination in the main cities. 2ussia. helped it rise to $o. which is working with India s . which ranks the top :6 emerging countries for retail development and focuses on mass#merchant and food retailers. according to the 4668 %lobal 2etail *evelopment Index from management consultant firm &. these are the markets that demonstrate the characteristics HwhereI you can be successful. foreign multiple#brand retailers. which sell diverse brands under one roof.harti 'nterprises to set up a !oint venture for a cash#and#carry business.. GIndia s window of opportunity continues to be wide for retail investment and development. infrastructure and regulationsF market saturation F and time pressure .hina s market becomes increasingly saturated. GThe Indian retail market is gradually but surely opening up. the more urgency for retailers to enter the market.G said -aura %urski. The study based its results on four variablesE country risk . while . G1nce India s window closes for grocery retailers. The higher the ranking.T.hina s booming consumer spending. GIf you want to be an international player in retail. a co#author of the study and partner in &.

G said 0arra. *espite its focus on luxury. 2ussia slipped to second place behind India last year and remained there in 4669 too. the market is becoming increasingly saturate as and Jnited &rab 'mirates $o. the study reveals. (outh 3orea and Malaysia. %urski said. *ubai has capitalized on consumer desire for a more Bestern lifestyle and has established itself as a retail mecca. . /owering &sia s charge are Dietnam. &ccording to the study.ut she cautioned that a separate strategy is needed for the smaller markets since consumer tastes. or those that have been slow to gain a foothold there. &fter topping the ranking for two consecutive years in 466: and 466=. all of which are in the top <7. <. 3nowing when to enter emerging retail markets is the key to success. &sia with a large =6 per cent of the top 46 markets has surpassed 'astern 'urope as the dominant region for global retail expansion. ability to spend and willingness to embrace new formats may be different than in larger urban areas.hinese cities like (hanghai and . 2etailers that have already established a presence in ma!or .hina was ranked fifth in this year s tally..hina remains very attractive. GIf the markets are saturated. are now looking at less developed markets in second#tier cities. declining one more place since 4667.ei!ing. . they re looking to make profits in the second# tier cities. International retailers rush to establish a presence and build market share. and countries like Thailand. Much to the surprise of market observers. which has risen five places to third place. Bhile .onsumer Industries and 2etail /ractice and leader of the %2*I study. %ap Inc announced last week it had struck a deal with two franchisees to open %ap stores in (audi &rabia starting at the end of this year. *ubai is G!ust beginning to be populated by the bread#and#butter retailers of the Jnited (tates and the Bestern world.in &T 3earney s . the study found. :2 .G %urski said.G she said. GThe learning is that timing is the most important source of competitive advantage for global and regional retailers in the globalization race.

Origin of Retail Sector :3 .

These early efforts to swap goods developed into more formal gatherings. This would have led to symbolic representations of such debts in the form of valuable items Hsuch as gemstones or beadsI. They would purchase any goods that they thought they could sell for a profit. and others providing a broad mix. 1eneral Store2 This division continues to this day with some shops specializing in specific areas.Early Trade: Bhen man started to cultivate and harvest the land. he would occasionally find himself with a surplus of goods. he may have allowed others to owe him goods.asey s in the Midwest of the :4 . known as %eneral (tore Hsuch as . 1nce the needs of his family and local community were met.O'8*2 /eddlers and /roducersE The 2etail Trade is rooted in two groups. 6O7 R8(/I.oncord of Hong 3ongI. and eventually money. Bhen a producer who had a surplus could not find another producer with suitable products to swap. reflecting their origins as outlets for producers Hsuch as /acific . the peddlers and producers. *898. /eddlers tended to be opportunistic in their choice of stock and customer. Thus early credit terms would have been developed. he would attempt to trade his goods for different goods produced elsewhere. /roducers were interested in selling goods that they had produced. Thus markets were formed.

They arranged for some of these goods to be sent to them. &lthough advantageous in many respects.I. & second reason that distance selling increased was through war. regular markets appeared. so has their size. &lthough such trading routes expanded mainly through the growth of traveling salesmen and then wholesalers. they laid down communication lines stretching from their home base to the front. Its thought that this process would have :5 . This soon turned into a regular trade.ets2 1ver time. markets would become permanent fixtures i. 1ver time. This combined with the advent of (elf#(ervice has lead to the (upermarket. 1thers in their newly adopted community en!oyed these goods and demand grew. the earliest instances of distance retailing probably coincided with the first regular delivery or postal services.The 0irst (hop E 'ventually. new settlers discovered goods in their new surroundings that they dispatched back to their birthplace. &lthough specialist shops are still with us. horse etc. (imilarly. this removed the mobility that a peddler or traveling merchant may still have en!oyed.&. purchasing these goods and selling them for a profit. shops. These shops along with the logistics re"uired to get the goods to them were. &s armies marched through territories. over time. demand grew. (uch services would have started in earnest once man had learned how to ride a camel. and once again. Thus the retail chain would have started. as markets became more permanent fixtures they evolved into shops.(. they would have also taken advantage of the lines of communication to order goods from home. it made sense to obtain extra stock and open up another shop.ustomers have found this to be more convenient than having to visit many shops # thus the term G. &s well as garnering goods from whichever locality they found themselves in. ()e :irt) of *istance Retailing2 *efined as sales of goods between two distant parties where the deliverer has no direct interest in the transaction. 8arly %ar. would regularly take their goods to one selling place in the centre of the community. most probably operated by another family member. Merchants would also have begun to appear. Thus. &s the popularity of general stores has grown. both producers and merchants. producers would have seen value in deliberately over# producing in order to profit from selling these goods. . some missed foodstuffs and other goods that were only available in their birthplace. there were still instances where individuals purchased goods at long distance for their own use.onvenience (toreG has also been applied to these shops. the start of the 2etail Trade. the general store has increasingly taken on specialist products. Bhen individuals or groups left their community and settled elsewhere. 0or some shopkeepers.e. They would travel from village to village. Origins of Retail It is likely that. or (uperstore. This would recover business from peddlers and create new business and the greater volume would allow the shopkeeper to strike a better deal with suppliers.J.

There was. Bhen this happened towards the end of the <5th century. 8fficiency These entrepreneurs noticed that their staff had to spend a great deal of time taking grocery orders from customers. therefore. &nother. That was the case until transport and communications became faster and more reliable. The shopkeeper would only need to tot up the final bill at the end of the process and transfer the goods from the basket to the customer and receive payment. chains became much bigger and more widespread. as some chains grew. This was soon followed a year later by the /iggly BigglyK self#service store. the more time and effort would have been needed to effectively manage outpost shops and to service them with goods. collecting their shopping in a basket that was supplied. a natural barrier to expansion. The groceries were stacked on shelves allowing customers to walk around and browse.(. 1rowt)2 This new type of shopping was more efficient and many customers preferred it.larence (aunders in Tennessee in the J. ro! a!ily :usiness to or!al Structure2 &lthough retail chains would have been mostly run by families. this new concept started a rapid growth of self#service stores in the Jnited (tates. founded by . even more definite limiting factor was the distance the furthest shop would have been from the original shop. leading to the retail chain that we see today. but there has been a steady rise in the global amount of self#service stores ever since.Service Store2 This all changed in <5<7 when &lbert %errard opened the %roceteria in -os &ngeles. :6 . The greater the distance.started in china over 4466 years ago with a chain of shops owned by a trader called -o 3ass. 1ther countries were slow to take up the idea. the first documented self#service store. &lthough personal service stores remain to this day. they would have needed to employ people from outside of their family. ()e irst Self. This was a limiting factor as there would have been a limit to the amount of trusted non family members available to help run the chain. Many of these businesses became more structured and formalized.

:7 .

:8 .

Indian Retail Industry :9 .

which represents =7 per cent or J(L <:7 billion of the gross retail market. The Indian retail sector is currently sporting a brand new look and together with a =9. shopping plazas. . The retail industry in India is split up into the unorganized and organized retail segments.ut the unorganized segment still dominates and leads the industry. which makes up 77 per cent or J(L <97 billion of the overall retail market as opposed to urban segment. the likes of superstores. The country s retail market totals L::6 billion. The rural market is spread over 948. The anticipated staggering growth in organized retailing provides an opportunity to expand the market for both established and new players.666 villages that makes up 76 per cent of the rural population.666 villages. S8-(OR2 Today.9= per cent three#year . The unorganized retail sector includes the big. The sole purpose of all this is retaining the brand loyalty of customers. 2. even though its centre of attention is focused around a core group of <66.&%2I. the total retail market is primarily focused in rural regions. the Indian retailing sector is anticipated to become an 2s<4. %lobal retailers that missed opportunities to capture first#mover advantage in . India represents the most compelling international investment opportunity for mass merchant and food retailers looking to expand overseas.hina will make up for it in India. The message for retailers on India is clear N move now or forego prime locations and market positions that will soon become saturated. *riving global brands into India is the greatly improved investment climate due to the recent relaxation of direct ownership restrictions on foreign retailers. supermarkets and brand label stores.y 46<6. ac"uainting the Indian customer to a uni"ue shopping experience. Indian retail is currently a J(L 4=7 billion market and is anticipated to extend to almost J(L :.ompounded &nnual %rowth 2ate H. International style shopping centers have started dotting the skyline of cities and smaller towns. The share of organized retailing is supposed to !ump to about <6 per cent from the existing three per cent.7 billion mark by the next five years. average and modest grocery stores and the chemist shops. .<3OR1/3IS8* R8(/I. & changeover is taking place from the conventional retail sector to organized retailing. . is vastly underserved and has grown by <6 per cent on an average over the past five years. an annual study of retail investment attractiveness among :6 emerging markets. India is rated as the fifth largest emerging retail market and is seen as a potential goldmine. . &ccording to the latest report India 2etail (ector &nalysis H4669M68II by 2$.7 trillion market. it includes analyzing the market in an effort to provide reasonable prices together with an array of options and experience to customers.onventional marketplaces are paving way for new shopping malls. according to management consulting firm &T 3earney s 4667 %lobal 2etail *evelopment Index H%2*II. retailing doesn)t involve !ust dealing or marketing from shops.1(.

there are cheaper "uick#fix solutions available too.azaars and (pencer)s. which takes care of the front#end store needs. (oftware available to the retailers is (hawMan)s 2etailMagi3. To begin with. The product is a simple to use. by cutting the layers of middlemen involved. among others. batch control and "uick information search. The efficiency of organized sector in retailing is manifested in some of the newer supermarkets in urbanOmetropolitan India N the produce is cleaner. fresher. far better paid than the underage labor working in the local shops.agwadia. This is possible because of the far more efficient distribution system.ig . delivery order management. 1rganized retailing refers to trading activities undertaken by licensed retailers who are registered for sales tax and income tax. the huge unorganized retail sector is finally beginning to see the merit of logging on. There is no supply chain management perspective. which will also benefit the economy as a whole. the organized sector is only 47 per cent and the rest is unorganized. most retailers look at decent entry#level solutions starting at 2s 47. which will make their operations more efficient. business development manager. Though it)s early days yet to measure it penetration in the unorganized retail industry. which organized retail chains are employing. Jnorganized retailing is the traditional low#cost shops. the benefits to the producer and consumer through better prices and lesser wastageF throwing up exportable surpluses. even if at a model scale. a number of new !obs will be created. PIt would surely help the unorganized sector to get into technologies like bar#coding. There are other benefits too. 1ne can even deploy a computer and start with 2: . Thus one can see that allowing 0*I in retailing is beneficial to all the stakeholders involved The . The screen design and the functionality are designed in such a way that the user need not press too many keys to get things done. interest levels are surely raising fast. (econdly. These include corporate backed hypermarket and retail chains and so on. (hawman (oftware.Though India has more than five million retail outlets. Taxation policies also push you to automate and the push is even harder for those looking to expand beyond their single store existence. PIt)s good to at least answer their "uestions. they are greatly unorganized.666.Q says 3hushroo . (ome other features are a user#defined billing screen and discount with control mechanism from the head# office. However. 0irstly. In fact. well packed and often cheaper than the local shopkeeper. out of the entire retail sector in India. of transforming the unorganized retail sector into an organized sector. handcarts and pavements and is by far the prevalent form of trade in India. The retail industry is divided into organized and unorganized sectors. Though the interest is more with retailers who register good sales and volumes. as well as the back#end warehouse re"uirements. 59 per cent of the retail outlets are smaller in area than the standard norms.

organized into different departments such as 1ne stop shop catering to variedO clothing. and consider these as frills. &nd solutions providers like Microsoft. smart inexpensive solutions are the need of the hour. we find the organized sector to be 46#4:> of the total industry. Here. They avoid the high#end technology. toys.omparing the case with . . carry most of comparison between brands is the brands available possible -arge stores having a wide variety of products. Dedamani suggests India is on the right track.omplete range available for a 'xclusive showrooms either owned or franchised out given brand. who at times compete with the big names in the industry.financial accounting programmers like Microsoft 'xcel. which will get their work done at a reasonable cost. (pecialty (tores *epartment (tores 22 . anywhere between 2s <6. &ccording to 1beroi of /olaris. These solutions might not work for the mid#sized retailers with five stores. or!at *escri#tion ()e 9alue 'ro#osition . Most of the time these solutions are developed by local firms. /olaris and (hawman are now working on developing smart tools for the retail enthusiasts.666 to 2s 47. furniture.666. 0ocus on a specific consumer need. 0or small players with !ust one store. &t the low#end however. PIn .Q he says. the investment on retail solutions go really low. etc. "uality %reater choice to the consumer. house wares. generally the mom#and#pop stores like to go for technology. so the cheap systems are more than welcome. and so is the case in India.hina. (mall retailers seem next in line and vendors are also warming up to the opportunity. the technology has advanced in phases. 0ox/ro and Tally. certified product by a manufacturer.hina. as then one need to scale it up and take care of inventory and supply chain management. PThey are not even bothered about upgrading. consumer needs.randed (tores . appliances.

generally located in "uieter including services such as parts of the city cafeterias. sometimes with a -ow prices. other. (mall self#service formats located in crowded urban .onvenience stores (hopping Malls Formats adopted by the Retail layers i! INDIA" 23 . operating hours. vast choice available warehouse appearance.(upermarkets 'xtremely large self#service retail outlets 1ne stop shop catering to varied consumer needs (tores offering discounts on the retail price through *iscount (tores selling high volumes and reaping economies of -ow /rices scale Hyper# mart -arger than a supermarket. all under one roof. 'nclosure having different formats of in#store Dariety of shops available to each retailers. .onvenient location and extended areas.

1rou# Ot)ers <ma** format out*ets (<ho--e) <u-ermarket(=ood'AZAR) Hy-ermarket ('ig 'a?aar) Ma** ((entra*) #e-artment <tore (sho--er>s <-e.troni.ount <tore ( ruMart) R'1 Retail 'ira!al=s 'antaloon Retail #e-artment <tore (!anta*oon) > Ra)e&a 1rou# sto-) (ata? (rent .Retailer Ori#i!al $ormats <u-ermarket (=oodwor*d) #e-artment Megastore) <tore (!iramyd Later Formats Hy-ermarket (<-en.ount <tore (<u+hiksha$ Margin =ree$ A-na 'a?aar)$ <u-ermarket (Ni*giri>s)$ <-e.ia*ty %*e.and!ar.s 24 .ia*ty <tore (Hea*th and 1*ow) #is.ia*ty <tore ((rossword) #e-artment <tore (Westside) #e-artment <tore (Lifesty*e) <u-ermarket Hy-ermarket ( 'A) Hy-ermarket (<tar India 'a?aar) Hy-ermarket ( 'A) #is.er>s)<-e.

-ocated mainly in metro cities. in proximity to urban outskirts. 2anges from 25 . %alls2 The largest form of organized retailing today.Retaili!# $ormats i! I!dia 1.

6y#er!arts?Su#er!ar.666 s". -onvenience Stores2 These are relatively small stores =66#4. ". all under a common roof. ft. are focusing on specific market segments and have established themselves strongly in their sectors. service and entertainment. 3. *e#art!ent Stores2 -arge stores ranging from 46666#76666 s". These are located in or near residential high streets. 'xamples include (hoppers (top. $. catering to a variety of consumer needs. ftI across India and even has its own in store brand for clothes called (topR. discount stores or factory outlets. having a strong focus on food A grocery and personal sales. 4.rossword. 2/% s Music Borld and the Times %roup s music chain /lanet M.666 s". which started in Mumbai and now has more than seven large stores Hover :6.hains such as the . /rices are slightly higher due to the convenience premium. S#ecialty Stores2 .96. 0urther classified into localized departments such as clothing. 26 .angalore based 3ids 3emp.666 s" ft to 8. 2. They stock a limited range of high# turnover convenience products and are usually open for extended periods during the day. offer discounts on the M2/ through selling in bulk reaching economies of scale or excess stock left over at the season.ets2 -arge self service outlets. feet located near residential areas. the biggest success is 3 2ahe!a s (hoppers (top. (uper Markets can further be classified in to mini supermarkets typically <.666 s" ft.766 s" ft to 7. *iscount Stores2 &s the name suggests.666 s" ft and large supermarkets ranging from of :. They lend an ideal shopping experience with an amalgamation of product. catering to varied shopper needs are termed as (upermarkets. etc 5. &mong these. toys.66. The product category can range from a variety of perishableO non perishable goods. /antaloon.666 s" ft to 4. groceries. *e#art!ent Stores2 *epartmental (tores are expected to take over the apparel business from exclusive brand showrooms. the Mumbai books retailer . seven days a week. home. These stores today contribute to :6> of all food A grocery organized retail sales. /yramid.666 s" ft and above.

rand outlets. These usually do well in busy market places and Metros. also known as .ategory 3illers. S$ %IA#I"& S"OR S 27 . offer several brands across a single product category. %:O4s 2 Multi .8.

The J(L 9. In comparison.  (wiss kidswear brand Milou is collaborating with Tirupur# based (ree!a Hosieries.  %lobal lifestyle brand $autica is bringing $autica 3ids. with kids clothing in India following international fashion trends. retailers are busy bonding##and brandingE  Monalisa.  Turner International India /vt -td. >ids retail2 Bhen it comes to Indian children.< billion Indian foods industry. the Dersace of kids is coming to India. is growing at 5 per cent and has set the growth agenda for modern trade formats.ood retail 2 0ood dominates the shopping basket in India. which forms == per cent of the entire 0M. -eading the kids retail revolution is the apparel business. ()e !o@ile revolution2 The retail market for mobile phones ## handset. &ccording to research 28 .9 billion.  International brand Sapp tied up with 2aymond to foray into kids apparel.% sales. the branded food industry is homing in on converting Indian consumers to branded food. (ince nearly 96 per cent of the average Indian grocery basket comprises non#branded items. growing at over 46 per cent per year. the consumer electronics and appliance market is worth J(L 7. airtime and accessories ## is already a J(L <9.  *isney launched exclusive chains which stock character# based stationery. Middle 'ast s largest kids entertainment brand for animation and live action content.  (ahara 1ne Television has also signed a Memorandum of Jnderstanding to source content from (pacetoon Media %roup.artoon $etwork Townsville and /lanet /1%1##two theme parks designed around its channels##in the $ational . which accounts for almost . will launch .apital 2egion.6 per cent of the revenue.  /antaloon s !oint venture with %ini A Cony will set up a retail chain to market kids apparel. with a growth rate that is half of the mobile market.8 billion business.

built internet kiosks in rural villages so farmers can access latest information on weather. International retailers 2 The &ustralian government s $ational 0ood Industry (trategy and &ustrade initiated a test marketing food retail in India wherein <4 ma!or &ustralian food producers have tied up with India#based distributor &. /un!ab.8 million of the total kids apparel market#size of over J(L : billion. sportswear. /epsi.ommittee H&/M. 64. floriculture. Mauri to sell their products directly at retail outlets. Industry experts say kids retailing will touch annual growth of :6#:7 per cent. chilies. agri retail 29 . along the lines of the Model &/M. tailored clothing. cultivation of vegetables. Best . Margins are in the range of 46#47 per cent Hfor dealers and distributorsI. theme parks.9 billion. including Maharashtra. Bith 88 per cent of India s population relying on agriculture for a living. The largest#ever <76#member . fragrance. 'xport potential and a rapidly growing domestic demand for reliable produce from new supermarket chains is driving change. the branded segment comprises J(L 86<. &gricultural sectors such as horticulture. outerwear. .I act this year. Bith a J(L 7. etc. Toys. foods#in#demand. improved efficiency and new markets can benefit a large number of people. planning to become India s first large#scale exporter of produce. TD channelsT the segment is growing rapidly at <6 per cent per annum. stationary. <= states.ritish business delegation in India committed investments in the areas of food processing. peanuts. a"ua culture. eyewear. 0or its e#. current market prices.engal and Maharashtra. development of seeds. multi#year investment in agriculture and retail. IT.o##with agriculture exports worth J(L =6 million##also introduced farmers to high#yielding basmati rice. pisciculture.666 to lease land for vegetables. will annually pay farmers over J(L :6. mushroom under cultivated conditions and services related to agro and allied sectors are open to <66 per cent 0*I through the automatic route. footwear. to hire tractors and to pay their workers. &ct. potatoes. watches. while companies en!oy an average gross margin of about <6 per cent. 2eliance 2etail will establish links with farms on several thousand acres in /un!ab.firm 3(& Technopak. mangoes. /gricultural retail2 &griculture across India is heralding the country s second %reen 2evolution.esides a five#year program with the /un!ab government to provide several hundred farmers with four million sweet#orange trees for its Tropicana !uices by 466. animal husbandry. 0ield0resh.. &ndhra /radesh and 2a!asthan amended the &gricultural /roduce Marketing .houpal scheme. which allows farmers to sell their produce directly to buyers offering them the best price. and barley for its 0rito#-ay snacks.

harti. 3. (pecialised Transportation Inc. Tesco is sure to try again. J(#based home delivery and logistics company. a subsidiary of /atel Integrated -ogistics. Bal#Mart has announced its plans for India in partnership with . It is also likely to press for the liberalisation of sectors like financial A legal services and retail. . and . &mong other big international players. will enter the Indian market through a strategic alliance with /atel 2etail.arrefour too might finally find the right partner.and manufacturing.

666 s" ft to 4. while similar goods can be offered in several forms. (uper Markets can further be classified in to mini supermarkets typically <. This is what everybody means when they say organized food retailing. "uality service.(tarbucks recently expressed their interest in entering India through the franchise route. counterparts /izza Hut. Mc*onald)s has ma!or expansion plans lined upF in the next : years. and the very successful Mc*onald)s. These are located in or near residential high streets.766 s" ft to 7. it plans to open another <66 outlets in cities across India. 0ashion brands *3$? is also al set to foray into the Indian fashion Industry through a franchisee agreement with Indian company. These stores today contribute to :6> of all food A grocery organized retail sales. other J( retailers are firming up their India entry strategies and if they are already in. It consist of dozens of thousands of items. Hypermarket is known for a wide range of goods offered. (ubway. 0ashion brand *3$? is also all set to foray into the Indian fashion Industry through a franchisee agreement with Indian company. 6y#er!ar. The specific features of a hypermarket are the wide range of goods offered.666 s" ft and large supermarkets ranging from of :. like their &merican0A.666 s" ft. In order to work with such an assortment it is necessary to group it into categories and sub categories that would unite goods according to this or that criteria.Su#er!ar. they are undergoing rapid expansion. they are undergoing rapid expansion. other J( retailers are firming up their India entry strategies and if they are already in. 3umar (tarbucks recently expressed their interest in entering Indian company -ike Tommy Hilfiger and Bal#Mart. (upermarkets are relatively new entrants in the market. (.ets2 -arge self service outlets. "uality display of goods on the shelves and complex systems providing for customers loyalty. ranc)ise outlets2 -ike Tommy Hilfiger and Bal Mart. ( 3umar)s. having a strong focus on food A grocery and personal sales. S)o##ing %alls2 3: . catering to varied shopper needs are termed as (upermarkets.et2 & very large commercial establishment that is a combination of departmental store and a supermarket. They are so called pioneers in organized food retailing and go by the western model in look and feel and format.

built on international formats of retailing and integrated with entertainment and restaurants to provide a complete family experience. The present day malls are a creation of the past few years post 4666. most of which were small stores that promised bargains for their various wares. 1ver :66 malls are expected to be built over the next two years and most Indian cities with over a million populations will be exposed to this modern method of retailing. (hopping malls have existed in India since several decades but were designed and built to house several shops in a single facility. Most malls also feature a multiplex cinema that offers entertainment to the visitors of the mall. food and entertainment. These (hopping &rcades tried to maximize on their store space and did not offer any areas for recreation and entertainment. 32 . These malls also known as (hopping &rcades offered only rows of shops. recreation.The new shopping malls that have been expanding their footprint across Indian cities are well designed. Malls also have a large format store that serves as their anchor for shopping and a prominent restaurant that anchors the food needs of visitors. They are designed professionally using a lot of international experience and combine shopping with a lot of brand building. 0inally the mall has large atria and open spaces to allow visitors and families to hang#out.

Organized Sector Retail 33 .

*elhi. India also has the largest number of retailers. In 466:#6=. shopping centre and multiplexes under construction To open :7 hypermarkets.'roduct Seg!ents2 The organized retail business in India is very small. &didas. operate.ommands. lease and sell basisG. . . . 2etail business contributes around <6#<< per cent of %*/. adds to this slice of the pie. :47 large department stores. Most of the organized retailing in the country has !ust started recently.In terms of penetration by the organized retail sector. &nil 3 &garwal saysEQ The organized sector retailing is all set to grow at much faster speed than unorganized sector and the higher growth speed will alone be responsible for its higher market share which has been pro!ected for L<8 billion by 46<6#<<. followed by clothing. 34 . e.666 crores HJ(* :87 billionI of which. and has been concentrated mainly in the metro cities.H&M president. . footwear is the highest category.956. 2eebok.ities and metropolis in which retailing will show booming prospects include Mumbai.ata .hennai.ooks A Music.onsumer *urables and . &s a result. The = ma!or organized retail sectors are 0ood A %rocery. 0oreign /resence.666 new outlets To add J( L <6 billion of business to organized retail. . 3olkata. This is despite the fact that India is one of the biggest markets. 1rganized retail only accounts for :> of the total retail industry as yet and is estimated to grow to L9= billion by the year 46<7. retail sales constitute about 9<> HJ(* 4:6 billionI. <766 supermarkets and over <6. &((1. said &garwal adding that the popular mode adopted for building shopping malls in these cities will be based on build.g.angalore and 3anpur. retailer . $ike etc. about <4 million.lothing. 0ootwear is driven by the dominance of home Ngrown players like -iberty as well as the <7> market share that M$. the retailing space in the country will also rise by <7#46> by 46<6. private consumption expenditure in India amounted to 2s <. 76 million s" ft of "uality space under development 8 ma!or cities to account for =< million s" ft development :66 malls. especially through the franchisee route. 1rganized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product "uality and services. though they are mostly small.

especially in Tier II . stimated Growth in Organized Retail 35 .0ranchisee activity in this category. is pegged to rise.ities.

hain stores #(ingle -arge (tores .54= <.lothing #Manufacturer retailers #.74 .4= ::> :7> 46> <9> <7> 44> <4> :75 <=< 5. <46 .=8.687 45: :<7 =98 <.> $on#store 4:5 2etailing Total 1rganized :.= 45.arge Seg!ents2 0ood #.> <7> 47> <7> 58 7= =: :<6 464 <6. retail ()e our .2004 -arge (egments 1ther (egments <.94= <.64= 4..hain stores #(ingle -arge (tores .:<7 200+ 7.65< -/1R A5B 4<> <7> <4> <. 49> :6> 46> 36 .hain (tores #(ingle -arge (tores :5< :49 97 <.onsumer durables # Manufacturer retailers #. 4=6 <.44 4.9=7 =44 .hain (tores #(ingle -arge (tores .=94 <94 4.499 756 .ook and Music #.

ets #otential in retail and is dee!ed a D'riority4 !ar.et for International retail. Ma%or I!d&stry layers 37 .Retail is a!ongst t)e fastest growing sectors in t)e country.s irstC a)ead of RussiaC in ter!s of e!erging !ar. Indiaran.

The newcomers who are knocking at the gates are 2eliance 2etail. due to some strange reason. (hoppers (top. /antaloon in the 'ast and . 0uture . that is now omnipresent in almost all formats right from small groceries to e#tailing. we intend to do a brief profiling of the ma!or players in order to understand the retail business in a better manner.apital.rossroads in Mumbai imparted some valuable lessons to their parent. 0uture . $ilgiris in the (outh. . 38 . The company went on to manufacture ready made trousers under the P/antaloonsQ brand name.rossroad in the Best were the pioneers of the retail revolution in India. 0uture (pace. did not see any logic to expand beyond the southern frontiers. The 0uture %roup is divided into six verticals N 0uture 2etail. Bestside. which was earlier known as /2I.rands. 1 The Future Group The 0uture %roup. 0uture Media and 0uture -ogistics. It came out with a public issue in <55< and later changed their name to /antaloon 0ashions HIndiaI -imited H/0I-I.$anz in $orth India. . $ilgiris. (ubiksha and 2/% (pencer. The big players in Indian retail landscape now are the 0uture %roup.irla Trinethra. the /iramyd %roup. who has since then gone on an expansion drive with other formats of retailing in different cities. /antaloon went to scale up and become bigger and bigger to form the 0uture %roup.harti Balmart and &ditya . The 0uture %roup started operations in the mid <5.8s by incorporating the company as Manz Bear /rivate -imited.6s. Here.H/antaloon 2etail India -imitedI began as a trouser manufacturer in the mid <5. $anz faced several obstacles in their business and had to finally down their shutters.

hennai A %haziabad. was one of the first movers to have set up a large retail outlet in $ew *elhi with international ambience. the 0uture %roup has :. (hopper)s (top -td now has a considerable presence all over the country with overr 8 lakh s"uare feet of retail space and stocks over 466 brands of garments and accessories. The store was a success and recorded revenues of 2s <66 million within the first year of operations.azaarQ to retail low cost general merchandising. formats and over :.azaarQ to retail food products. 39 . .IT? and Mothercare. *elhi. the company)s name was changed to /antaloon 2etail HIndiaI -imited H/2I-I. In <555. The stores are spread all over India with presence in Mumbai.to come up with other retailing formats such as P.8 million. . Hyderabad. It employs more than <4. thereby turning the 0uture %roup into a J(L8 billion company with over J(L< billion in profits by the year 46<6. it had reached to a crucial number of 86.666 people and has a customer base of more than <46 million.21((B12*.angalore.The first exclusive men)s store called /antaloon (hoppe was inaugurated in <554.hief 3nowledge 1fficerQ has plans to launch <. Hyper.ig .:=6 stores. The success of /antaloons departmental stores encouraged /2I. 3ishore .7 million s" ft of retail space and over <66 stores across 47 cities in India. promoted by the real estate group 3 2ahe!a. (hoppers) (top is also very well known for having pioneered several "uality retailing concepts in India like . the promoter of the group who likes to address himself as P. and P0ood . They are the only retailer from India to become a member of the prestigious Intercontinental %roup of *epartmental (tores HI%*(I. /une . &s of 4667. Caipur. The first departmental store called /antaloons was opened in 3olkata in <558 with an investment of 2s 6. 3olkata.iyani. /antaloons went for a franchisee route to expand the number of retail outlets and by <557. %urgaon. 2 Shoppers Stop (hoppers) (top.

I. . . (ervices like *ial#a#book. (hoppers) (top)s customer loyalty program is called PThe 0irst . The stores offer a complete range of apparel and lifestyle accessories for the entire family. & large number of $on # 2esident Indians visit the shop for ethnic clothes in the international environment they are accustomed to. music.7 lakh members who contribute to nearly 76> of the total sales of (hoppers) (top. (cullers. (hoppers) (top has a database of over 4. -e Teint 2icci etc. open new stores faster and get information about merchandise and customers online. Bith its wide range of merchandise. (hoppers) (top caters to almost every lifestyle need. Today it is one of the few stores in India to have retail '2/ in place. The program offers its members an opportunity to collect points and avail of innumerable special benefits. (hoppers (top also retails its own line of clothing namely (top. 46. which offers the widest range of books along with .<. which is now being integrated with 1racle 0inancials and the &rthur /lanning (ystem. (hoppers) (top)s core customers represent a strong ('. they are able to replicate stores. exclusive shop#in#shop counters of international brands and world#class customer service. They fall between the age group of <9 years to :7 years. . -ife . . the best retail planning system in the world.urrently.76.I ventures also ac"uired the reputed bookstore.(hoppers) (top is positioned as a family store delivering a complete shopping experience. & skew. in 4666. 0ax#a#book and 'mail#a#book enable customers to shop from their homes.olor /lus. . which reduces the turnaround time in taking "uick decision. 3ashish.rosswordQ. The 1rganisation.. stationery and toys. &rrow. -evi)s. Bith the help of the '2/.666O#.hambor. (tores. 0rom apparel brands like /rovogue.666O# and an annual spend of 2s. Dettorio 0ratini and *I?.itizenQ. The merchandise at (hoppers) (top is sold at a "uality and price assurance backed by its guarantee stamp on every bill. (hoppers) (top brought international standards of shopping to the Indian consumer providing them with a world class shopping experience.*#21M. Sodiac to cosmetic brands like -akme. along with I.rossword currently has <. (hoppers) (top was among the first few retailers to use scanners and barcodes and completely computerise its operations. 2ealising the role of IT way back in <55<. the ma!ority of them being families and young couples with a monthly household income above 2s. 4. P.

. In <559 it added music to its product portfolio and also started the trend of stocking curios. 'arlier -andmark was focused on books. 4: .azaar. Bell#designed interiors. stock receiving systems. generation and fixing of price and store tags. it ac"uired -andmark. food. The company intends to bring the world)s best retail technology.azaar. prime locations and coffee shops enhance the customers shopping experience. artifacts. footwear and accessories. Trent also runs another chain of retail stores called (tar India .hennai. which was followed up in 466= with (tar India . -andmark commenced its operations in <5. and now has nine stores in the ma!or metros of the country. dairy products.azaar is located in &hmedabad and offers a wide choice of staple food. one of the largest books and music retail chains in India. In a recently signed deal. (tar India . toys. This amounts to about 48 locations. purchase order management. vegetables. The company has developed process manuals for each part of the logistics chain. Trent operates some of the nation s largest and fastest growing retail store chains.azaar and books. a hypermarket with a large assortment of products at the lowest prices. music. fruits.urrently. consumer electronics and household items at (tar India . stationery and greeting cards. Trent has also recently ac"uired a 89 per cent stake in -andmark. 3 Trent – Westside 'stablished in <55. beverages. India s largest book and music retailer.azaar outlets. health and beauty products. dispatch of stocks to the retail floor and forwarding of bills for payment. women and children. dairy products. Trent has agreed to anchor <4 malls set up by *-0 Jniversal -td across the country.(hoppers (top has been very keen to understand the importance of distribution and logistics in ensuring that merchandise is available on the shop floors. as table linens. consumer electronics and household items at the most affordable prices. . health and beauty products. (hoppers) (top has a grand ambition to position itself as a global retailer. fruits. (tar India . at its Bestside.8 with its first store in . These modules include vendor management. a lifestyle retail chain. retail practices and sales to India. sprawling space. -andmark and (tar India . purchase verification and inventory build up. beverages. cosmetics and perfumes at Bestside. Trent retails garments and household accessories for men.*s and other gift items. This has led the retail chain o streamline its supply chain. In 4667. they are adding = to 7 new stores every year.. music and stationery at -andmark. & beginning was made in <55. vegetables.azaar provides a large assortment of high "uality products made available at the lowest prices coupled with a uni"ue shopping experience. -aunched in 466=. home accessories and furnishings. totaling to about a million s"uare feet of space. with Bestside. Bestside has 47 outlets across <8 cities in India offering a variety of designs and styles in garments.

Most of the stores are on the lease format and the company is prone to higher lease rentals due to the overall increase in real estate prices. The promoters launched the apparel business in <555 under /iramyd 2etail and Merchandising /vt. H. %ross margins from private labels are over =6> and hence the company is planning to increase this business.I were housed under . due to distant synergies in two businesses in March 4667.. /iramyd 2etail currently has 7 Mega stores and .666 people. H0ood A /ersonal . /iramyd 2etail did have a first mover advantage in many locations but it has actually failed to capitalise over this advantage. &s the apparel and food businesses individually reached a critical mass the management merged the two companies into /iramyd 2etail -td. /yramid also has a smaller format of stores called TruMart that caters to 0ood and /ersonal . which has presence in diverse sectors spanning /harmaceuticals. /iramyd 2etail plans to increase the contribution of private labels from existing 8> to <.areI business is volume driven while the -ifestyle store is a margin driven business. 42 .4.# 46> of the revenues by 46<6. H/2M/-I while its foodF home A personal care businesses H0H/.(/-I. 2eal 'state.are products. The floor space is expected to be 7 times on successful expansion..rossroads (hoppertainment /vt. 0amily 'ntertainment and 2etail with manufacturing operations in <5 locations across five states and employing over <. The 0H/. Textiles. Its competitors like /antaloon. -td. TruMart stores mainly in Maharashtra . Piramyd /iramyd 2etail is part of the /iramal %roup. This may bring the profit levels down substantially. (hoppers (top and Trent gained larger benefits of their far more aggressive business A marketing strategy in the retail space. The company plans to increase these numbers to <8 Mega stores and 95 TruMarts by 466. -td. 'ngineering.

5.

Su@i,s)a

The ,hennai based (ubiksha grocery chain runs around 466 outlets all over the country and it)s current turnover stands at 2s 44= crores. Their target customer is the middle income value conscious buyers. The main aim of (ubiksha is to offer a functional and transactional shopping experience. This retail chain has no "ualms and spends almost no money on creating a pleasant shopping experience, and all stores are non#air conditioned. There is no false roofing or sparkling vitrified tiles on the floor. & few years ago, (ubiksha did not even offer shoppers self service. The customer had to place an order at a computerized teller and the goods were billed and delivered after cash is collected. ,ustomers had to bring their own carrybags or pay to buy them from the store. (ubiksha even attempted to charge the customers for home delivery. However, now (ubiksha has slightly tweaked their business model in order to create a better appeal to customers who were defecting to the competitors. The store formats are still small and non# airconditioned. .ut customers have the option to pick from shelf spaces. They also get shopping bags and free home delivery. .ut the selling J(/Huni"ue selling propositionI remains the same ### (ubiksha tries to be as close to the customer as possible and offers the lowest price and huge savings in comparison to competitors. It)s slogan happens to be ### b achat mera adhikar hain Hsaving is my fundamental rightI.

".

R'1 S#encer

43

2/%)s (pencer presently has <47 stores across 47 cities covering a retail trading area of half a million s"uare feet and with a clientele of : million customers a month. (pencer s has a national footprint with seven hypermarkets, three supermarkets and 86 daily use outlets, called *ailies. &ll the newly opened (pencer s stores stock every conceivable product that is re"uired by a household on a daily basis. &t (pencer s *aily shoppers can get fresh fruits, vegetables, fast# moving consumer goods, household items, groceries, with regular offers and discounts. (pencer s outlets are divided in to three retail formats. These are, (pencer s Hyper, the over 47,666#s" ft hypermarkets stocking over 47,666 items. The ;,666s" ft to <7,666#s" ft mini hyper stores, branded as (pencer s (uper and the daily purchase =,666#s" ft to 8,666#s" ft (pencer s *aily for groceries, fresh food, chilled and frozen products, bakery and weekly top up shopping.

$.

Reliance Retail

44

1n Cune 49, 4669, Mukesh &mbani, ,hairman and Managing *irector, 2eliance Industries -imited, announced a 2s 47,666#crore investment in the retail sector. 2eliance 2etail started it)s retail operation with P2eliance 0reshQ, a grocery store that sells vegetables, fruits, personal care items and other food products. (oon, these retail outlets will also be selling apparel and footwear, lifestyle and home improvement products, electronic goods and farm implements and inputs. They will also offer products and services in energy, travel, health and entertainment. In addition to this, partnerships would be developed to bring the best of global luxury brands to India as well. 2eliance 2etail plans to extend it)s footprint to cover <,766 Indian cities and towns with outlets of a varied format, a mix of neighborhood convenience stores, supermarkets, specialty stores and hypermarkets. 2eliance also plans to open restaurant outlets, financial services marts and tourism counters within it)s stores. Mukesh &mbani)s ultimate ambition seems to be to create the Indian e"uivalent of Bal#Mart by scaling up the business to unprecedented heights to reach every nook and corner of the country. Bith it)s retailing venture, 2eliance expected a revenue target of J( L46 billion through it)s retail operations by 46<6. 1ver a span of five years, 22- expects a 46> return#on#investment. The first store christened P2eliance 0reshQ opened in $ovember 4669 at Hyderabad. Bithin a few months they have now opened stores in Mumbai, /une and &hmedabad and plans foray into other cities on a rapid scale.

45

. supermarkets and convenience stores and would provide employment to about 96. The first retail outlet is expected to open somewhere in the month of &ugust . unveiled the roadmap for its retail venture on <5 th 0ebruary. 46 .7 billion Habout 2s.%art . :)arti 7al.harti is now conducting a massive consumer survey to take a final decision on branding and promotional campaign. The CD was presently scouting for <6 million s".harti 2etail H/vt. he added. The company would open multi#format retail outlets in all cities with a population of about one million. Bhile . supply chain and cash# and#carry. 4668 envisaging an investment of L4.harti)s plan is to invest L4. ft.666 croreI from this business by 46<7.8.7 billion by 46<7 and open stores across all ma!or cities. which would include hypermarkets. & high#level team from Bal#Mart was visited India in the later part of 0ebruary to work out the details of the back#end chain.I -td. of retail space. are in the process of being worked out. The modalities for its back#end linkage. 46. including its !oint venture with the world s largest retailer Bal#Mart.harti would manage front#end of the retail venture.7 billion with expectation of revenue of L=. . including logistics. Bal#Mart would be involved in the back#end.666 people. This investment would be only for setting up front# end stores.

lub more. /ditya :irla E %OR8 The &ditya .entonville giant will make life difficult for the small grocers and create massive unemployment. . chain of supermarket stores.Q 1ur mission is to change the way people shop. &ditya .irla. value are the four delivery cornerstones of the more. 1ver 76 per cent of its revenues flow from its operations across the world. Be will give them more. promises best in market pricing.irla %roup. more. the membership program . -inking up directly with farmers to source fresh fruits. agriculturists. the %roup is driven by a performance ethic pegged on value creation for its multiple stakeholders. & J(L 4= billion conglomerate.However. more. for you advantageE more.Q says Mr. 47 . %lobal in vision. variety. politicians. Dalue M12'. They also expect Bal#Mart to take a tough stance on lowering prices and force farmers to sell their produce at lower rates. vegetables and staples ensure great "uality as well as great price. the $%1s and other pressure groups that their business model would serve to work in the best interests of all the stakeholders. 3umar Mangalam . M12'.oth . & lurking fear of monopolistic regime in the retail sector is also enhancing their fears. &dd to this. more. convenience and more.666 employees belonging to over 47 different nationalities.harti and Bal#Mart have been facing stiff opposition from the left parties and other political outfits who fear that the entry of the .harti and Balmart are presently having a tough time in convincing the ministers. promises a world#class pleasurable shopping experience to Indian consumers in their very own neighborhood. The more.hairman. with a market capitalization of J(L 4: billion and in the -eague of 0ortune 766. +. . rooted in values. which provides convenience.irla %roup is India s first truly multinational corporation. . it is anchored by an extraordinary force of <66. more. +uality.

9 in 3olkataHerstwhile. The showrooms have over 86. The cost benefits that is derived from the large central purchase of goods and services is passed on to the consumer. 'ach store gives you international "uality goods and prices hard to match. and can be catered to under one roof. enthusiastic team that represents the best experience from India and globally.customized shopping solutions and savings. state across India. To avail additional benefits. R8(/I. customers can also enroll for the membership program . and the more. 2 9is)al is one of fastest growing retailing groups in India. M12'. Its outlets cater to almost all price ranges.66 products range which fulfills all your household needs. It is covering about <4. premium and select ranges. (ituated in the national capital *elhi this store boasts of the singe largest collection of goods and commodities sold under one roof in India. More.4666 s". The products have been "uality#checked and are available in attractive packaging at competitive prices. . at no extra charge. in <. Be have a bright and committed.lub more. also has a range of products from its own stable available across value. ft. 10. The group)s prime focus is on retailing.alcuttaI is today a conglomerate encompassing 51 showrooms in 3+ cities. Bhat started as a humble one store enterprise in <5. 9IS6/. value promise becomes all the more evident. India)s first hyper#market has also been opened for the Indian consumer by Dishal. Is an inspirational brand for an inspirational country. 48 .

urrently. which in the next two to three years. .ompany is doing research on more formats. &pparel sales currently at 9:> in the next 4#: years should come down to 76> as the company is now also focusing on different segments.ompany can sustain margins as it is going for backward integration. is the third largest trading and retailing group in the world. M'T21 . . The group)s philosophy is integration and towards this end has initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility to support its retail endeavors.% at <7> could go up to 46#47>.ompany has already tied up for 7#lakh s" ft space and is looking for more. 'ventually.ash A .666 staff in :6 countries. In the year 4667 M'T21 %roup had generated sales of over U77. %8(RO E -/S6 F -/RRG I3*I/ M'T21 %roup today. .8 billionF 7:> of total sales came from outside %ermany. . The company employs over 4. will go up to 47>. 11.ompany is looking for opportunities of expansion in the (outh. The current share of 0M. . .ontribution of apparels business at 7:> may slightly come down to 76>.ompany is increasing its focus on the non#apparel and 0M.76.ompany will venture wherever it gets real estate space. the cost of sourcing will come down in the near future. . . India is a big country and there is huge space for four#five big retail players.The 9is)al stores offer affordable family fashion at prices to suit every pocket.ompany will come up with :4 new stores this year. .arry started operations in India in 466: with two 49 . Dishal can always sustain growth in this big market. .% segment. it will have a pan# India set up. it has very little space in the south India. Bith growth in volumes.urrently manufacturing contributes <6> of the business.

()e <nli!ited S)o# Divek -imited is a professionally managed public limited company carrying three retail brands # Diveks. 0ood and $on#food Traders. It is a modern format of wholesale trading. In this process.entres in . Cainsons. M'T21 offers assortment of over <. :76 crores HJ(* . . catering only to business customers.angalore.4. 12. Bith the liberalization of economy and other 5.6 millionI and also become a public limited company from a family run enterprise.666 businesses in . Diveks evolved its strategies to suit the larger scene where there was a stigma attached to borrowing. These . Divek -td is the largest consumer electronics A home appliances retail chain in India. Institutional buyers and professionals.angalore. 2estaurants.I concept and focuses on meeting all the needs and re"uirements of business customers.arry business model is based on a . Dery few hire purchase options were available and hence Diveks started Divek Hire /urchase and -easing -td to finance consumer durables. . 9ive. Bith this M'T21 introduced the concept of . 4 store /remier in 466< and (pencers in 4664 and have recently absorbed (pencers into the /remier brand.666 articles across food and non food at the best wholesale prices to business customers such as Hotels.ash A .ash A .usiness H.arry to India. which enhanced the core retailing business also.s. /remier and continuously adding to the formidable strength of <666 employees.aterers. M'T21 s .*istribution . <= store Cainsons was bought over in <555.usiness to .entres offer the benefit of "uality products at the best wholesale price to over <76.Diveks grew from : stores to more than 74 stores and turnover increased to over 2s. Diveks popularized several brands by creating visibility and have the distinction of being market leaders and trendsetters with continuous support from the principal companies.

Diveks streamlined the marketing and advertising activities and shopping ambience was improved. T'E GRO(T' DRI)ERS 5: .changes in the global scene.

The "uantum of investments is likely to sky#rocket as the inherent attractiveness of the segment lures more and more investors to earn large profits. /lastic 2evolutionE Increasing use of credit cards for categories relating to &pparel. Murugappa A /iramal %roups etc and also foreign investors and private e"uity players are firming up plans to identify investment opportunities in the Indian retail sector. (tocks in the retail sector are also becoming increasingly attractive from an investor s point of view.ombay *yeing. .*rivers of Retail Industry • • • The *emography *ynamicsE &pproximately 96 per cent of Indian population below :6 years of age.overing distances has become easierE with increased automobile penetration and an overall improvement in the transportation infrastructure. • • *RI98RS OR 1RO7(62 Indian consumers are rapidly evolving and accepting modern formats overwhelmingly. if he or she sees value in shopping from a particular location. . 2eliance. &ggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale. 2etail (pace is no more a constraint for growth.onsumer *urable %oods. 0ood and %rocery etc. 0urther. $ow a customer can travel miles to reach a particular shop. IT. (uccessful development of value based concepts as well as development of retail space in smaller cities and towns shall drive the organized retail into the next levels of cities.. . 2etailers have responded to this phenomenon by introducing contemporary retail formats such as hypermarkets and supermarkets 52 . Investments into the sector are estimated at I$2 46 N 47 billion in the next 4#: years. large Indian corporate groups like Tata. 2ahe!a. covering distances has become easier than before. *ouble IncomesE Increasing instances of *ouble Incomes in most families coupled with the rise in spending power. and over I$2 466 billion by end of 46<6. India is on the radar of %lobal 2etailers and suppliers O brands world# wide are willing to partner with retailers here. JrbanizationE increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers.

manufacturers are beginning to acknowledge them as channel members to be partnered with for providing solutions to the end#consumer more effectively. creating "uality space for retailers to fulfill their aggressive expansion plans. or as a Vnecessary evil as was the case earlier. *evelopment of India as a sourcing hub shall further make India as an attractive retail opportunity for the global retailers. Indore. automobiles. /enney. financial services etc are increasingly targeting consumers in tier II cities and towns. have set up dedicated units to service the retail channel. consumer durables. . 2etailers like Bal#Mart. -ucknow. instead of viewing retailers with suspicion. 3arstadt#+uelle etc stepping up their sourcing re"uirements from India and moving from third#party buying offices to establishing their own wholly owned O wholly managed sourcing A buying offices shall further make India as an attractive retail opportunity for the global players. mobile phones. &lready. . mall development activity in the small towns is also picking up at a rapid pace. . petro#retailing efforts of petroleum giants scattered through out the country s landscape have also ensured that smaller towns are also exposed to modern retailing formats. /rominent Vtier#II cities and towns which are witnessing a pick#up in activity include (urat. catering services and home improvement.oimbatore. In addition. consumer durables.hopal. consumer durables. Manufacturers in industries such as 0M. !ewellery and accessories. . These sectors 53 . Thus. C. The next level of opportunities in terms product retail expansion lies in categories such as apparel.%. *ehra *un. the Vretail boom . 1ver the last few years. 1RO7I31 -O3S<%8R -. a number of manufacturers in India.hubaneswar. paints etc are waking up to the growing clout of the retailers as a shift in bargaining power from the former to the latter becomes more discernible. Bith consumption in metros already being exploited. manufacturers and retailers of products such as personal computers.7> of which has so far been concentrated in the metros is beginning to percolate down to smaller cities and towns. many international retailers have entered the Indian market on the strength of rising affluence levels of the young Indian population along with the heightened awareness of global brands and international shopping experiences and the increased availability of retail real estate pace. Di!aywada. Tesco. The contribution of these tier#II cities to total organized retailing sales is expected to grow to 46#47>. wider availability of products and brand communication are some of the factors that are driving the retail in India. Daranasi and -udhiana among others. thereby. international exposure. %&/./SS2 0avorable demographic and psychographic changes relating to India s consumer class. in line with trends in developed markets.in the new pockets of growth. HAM. &lso. 1n the supply side. $asik. availability of increasing "uality retail space. Dadodara.

4 180. increase in demand."15 215 ()e -onsu!ing -lass Rs 45." 28. 215C000 Source: NCAER 2. presence of large number of young population. The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity. Rs. In India they do not have to face this dilemma largely because rapid urbanization. Indian consumer class can be classified according to the following criteriaE 1.8cono!ic status 3. 215C000 and !ore Rs.3 12. 1eogra#)ical dis#ersion 1.$ 200+ ". /ge de!ogra#)ics 4.1 23.8cono!ic -lassification2 54 ."55 .22C000 :elow Rs.8 1++.45C000 Rs.0 54.have already witnessed the emergence of organized formats though more players are expected to !oin the bandwagon. Socio.5 54. 1"C000 1+++ 1. There are a lot of young people in India in different income categories.8 2004 2.1 15. 22. 1"." $1.1 44 33 1"4.+ $4. Inco!e 2. Inco!e -lassification -onsu!er -lasses ()e Ric) ()e -li!@ers ()e /s#irants ()e *estitute (otal /nnual Inco!e in Rs.2 +0. any number of opportunities are available .2 -)ange 41"5 1$+5 3$5 . Socio. (ome of the niche categories like .2 32.ooks. Indian consumer goods market is expected to reach L=66 billion by 46<6. Music and %ifts offer interesting opportunities for the retail players. India has the youngest population amongst the ma!or countries.

0 24".5 23+.1+ yrs 20.$ 224 1$8.255 14.4 1++" 11+. In addition to that. There is huge potential for further consumption of goods and services due to the increased level of disposable income.1 88.+5 0.5 233. $early two# thirds of its population is below the age of :7. -onsu!#tion (rends ood 8ssentials 45.515 55 .1 10+.lassification H('."85 8ssential Services AwaterC #owerC rentC and 10. if compared with some advanced and developed countries.3 101. and nearly 76 > is below 47.15 fuelsB -lot)ing ootwear %edicare (rans#ort F -o!!unication 4. ('.In addition to income classification and consumer classification. The expenditure on essential goods and services has a higher share in developing countries as compared with that of developed countries.14 yrs 15.1 2001 108. A e distri!ution i" #ndian population $#n %illions& Gear? /ge :elow 4 yrs 5.54 yrs 55 F a@ove (otal 200" 113."35 4. is made to understand the purchase behavior and the consumption pattern of the households 3.4 2$+. it is expected that this will generate trade opportunities and continuous investment in the economy.34 yrs 35.$ 1012. This is called as (ocio#'conomic .2 Marketers explain that the boom in the consumption level and leisure related expenditure is because of this young population.2 118.I.8 20$.5 221.$ 10+4.1 23+.2 +0. which is mainly used by market planners to target market before launching their new products.$ +34. It will have a significant impact over the consumer goods market. /ge *e!ogra#)ics2 India is a very young nation. Indian households can also be segmented according to the occupation and education levels of the chief earner of the household Hthe person who contributes most to the household expensesI.2 122.

zech 2epublic and also a ma!or player in Hungary apart from being one of the fastest growing clothing retailers in the J3. 1RO7I31 8-O3O%G 'otential for all or!ats to ()rive 2 Most of the global powerhouses in the retailing sector such as Bal# Mart. linked to the wealth creation from trade. Identify the changes that have already happened. That s total rubbish and rather an assumed limitation. the 2eport says. (pain since the <5. 2emaining 466 districts Hcategory . 1eogra#)ical *is#ersion of !ar. accusing or !ustifying that retailing business is only for larger players and multinational retailing companies. Tesco etc have adopted multi#format and multi# product strategies in order to customize their product offering for distinct target segments.I are backward and account for only 8> of national market potential. %ermany. . There are poor districts in many states.ess t)an 45 3. 0rance. *r Billiam T Bilson.hief 'conomist for 3eystone India M a . classified according to their market potential. India has 766 districts. .hicago#based firm providing cross#border trade facilitation and asset management services in J( are likely to be exhibited in India as all formats present prospects for growth. districts have =6> of the geographical share. 56 .> and <7> of the national market potential respectively. Tesco is one of the food sector s most successful exponents of clothing in 'urope *IS'OS/:. industrial.255 4.RecreationC 8ducationC and -ulture 6o!e 1oods . (imilar trends Identifying t)e future The important thing is to identify the '"uture that has already happened' ( Peter )ruc*er The important and distinctive are always the result of changes in values. Tesco. perceptions and goals of people. exploit the changes that have already occurred and use them as opportunities.6s and 'astern 'urope more recently. Together with its rival. has become the number one apparel retailer in the .8 I3-O%8 There is no point complaining. with the emergence of larger store formats like superstores and hypermarkets in countries like J3. Bal#Mart#owned &(*&.et #otential There is large difference in economic prosperity levels among several states in India. .ategory . J3 s leading grocer. 0urther.I account for 8. and agricultural development. traditional food retailers have been able to stock more extensive non#food ranges. In fact. out of which <76 districts Hcategory &I and next <76 districts Hcategory .arrefour.

(top. customized and more. . Bhile we all know what a brand is. India s economy is expected to e"ual or surpass Capan as the world s third largest sometime in the year 4669. experience and convenience. Though this growth is most evident in urban areas. declared and straight income meaning there will be a considerable number of consumers with other sources of incomeR HI supposeI. 0urther. television has accelerated to a pint where there are more cable connections than telephones in Indian homes and more than <66 channels are being aired at all times . 3ick#started by the cable#explosion during the gulf war. India)s middle and High Income group has grown at a rapid pace of over <6> per annum . different. This emerging consumers would want something special. &ccording to (ynovate. the growth of private labels is about 4#: times more than that of advertised 57 . by 'bony are private label brands. this is the official.rands.onsidering the third successive year with great economic growth in India. uni"ue. each of these terms has a different meaning. Mind you. *r Bilson also added that India s economy measured in /// Hpurchasing power parityI terms will eclipse the J(L four trillion mark in 4669. 0ind the synonyms and transliterate these into value offerings in your field of business and you have a gold mine.6 million by 4668. better.angalore.666 per annum is about :6 million today and is expected to grow to . Indian consumers are getting richer noticeably leading to higher disposable money.2ecent research finding is that by the year 46<6.a@els . RISI31 I3-O%8S 1ver the past deacde . and 'T. making it e"ual to or greater than Capan s.666. 'rivate . is the market research arm of global communications specialist &egis %roup. &mong Indian retailers. the discerning Indian consumers are not going to be conscious about price alone. -ife and 3ashish by (hoppers (top. However. the number of house holds earning above 2s.OSIO3 O %8*I/ There has been an explosion in media as well during the past decade . said that after significant accelerations in economic growth recently.This media bombardment has exposed the Indian consumer to the lifestyles of more affluent countries and raised their aspirations from the shopping experience N they want more choice . it is obvious that we shall have more people with higher disposable income. merchandised and sold by a specific retailer in its own stores. store labels. 1ne could comfortably presume that one fourth of the three millions would reside in . These terms may seem to be synonyms of each other.666. Bith higher disposable income.<76. store brands. a private label and a store label are different from any other brand because they are product lines that are owned. when it comes to retailing. controlled. leading to the proliferation of Higher "ualityOhigher priced products. especially when you manage to connect with the customers value and perception and India. India will have at least three million people with an annual income of over 2s =. This growing high#income population is triggering the demand for consumer goods. value . private label brands. 8H'. it has also taken place in rural markets.

in menswear. 0oodworld and $ilgiris have launched their own brand of supermarket products under the G0oodworldG and G$ilgirisG brand names. 0or instance. the retailers can earn whopping margins of around 77#96 per cent on private labels. . retailers say that gross margins on branded products vary from 47#:. but also the failure. so the product experience keeps bringing the consumer back The "uestion isE why would retailers want to get into the trouble of launching an own brand when there are GnG number of local. & retailer can achieve differentiation through a large Hbut not necessarily exclusiveI portfolio of private label products. which may have a negative rub#off effect on the retailer s image. They have more control over the merchandise and are able to make the re"uired changes and modifications to suit the changing customer profile much "uicker. and together with a uni"ue product range. There is a distinct advantage in naming the brand launched by the retailer after the same name as that of the store. the ones whose nomenclature is the name of the store itself are called store labels. &n established private label brand provides the retailers a platform to negotiate with suppliers. &n outside brand could be purchased from any outlet. This is not so in the case of private labels. the store label also carries the burden of not only the success of the brand.&mong the product lines launched by retailers. Introduction of an in house brand of products helps the retailer to have means with which they can compete head on with the other branded products. . per cent. regional and national brands for practically all kinds of productsW The reasons are multifold. is a brand in itself. and the retailers are thus self#sufficient in a certain category. This brings about a more consistent and acceptable product portfolio. which also helps reduce mark#downs.ut at the same time. $allis. which is what the store brand signifies. They are not perceived as being interchangeable with similar private label products launched by other retailers Hunlike manufacturers of branded products.azaar and The Home (tore are store brands since each of them stands for a certain retail offering. 2etailers are now aggressively moving into developing their own private labels as it not only makes economic sense in the form of retailers achieving higher margins. & retailer can create a stronger emotional connect with the consumer as the experience is not !ust the store experience but also the product experience. Modern . (ervice adds to the differentiation. /rivate label products contribute to a retail brands differentiation. it also helps them to plug gaps in their product portfolio.brands . & store brand on the other hand is a brand name the retailer carries. results in a strong retail brand. 'ach retailer.ompared to that. 58 . which are the same regardless of the retailerI. because of its uni"ue offering.

SWOT MARKET OF THE 59 .

.6.

2etail revolution restricted to 476 million people due to monolithic urban#rural divide. 8I -ack of huge investments for expansion 6: . &lmost 47 million s". 4nd largest contributor to %*/ after agriculture at 46>. . & %rowing population will translate to move consumers.orporate Houses XManufacturersO'xporters 78/>38SS8S <I 4I (hortage of "uality retail spaces at affordable rates. retail space available. /aradigm shift in shopping experience for consumers pulling in more people. . • • • X2eal 'state *evelopers X. /attern of consumption changing along with shopping trends. 9I 0ootfalls not a clear indicator of sales as actual consumers lower in number.I Most of the entrants to organized retail come from : main categories. ft. and have ventured into retail as their business extension. %overnment regulations on development of real estateHJrban -and .:< billion. growing at .onsumer spending increasing at <<> annually.S(R831(6 <I 4I :I =I 7I 9I 8I 1rganized retailing at J(L :.eiling &ctI :I =I 7I $eed to provide Dalue for Money#s"ueezing margins -ack of industry status.>.

7I 9I /ersonalized service offered by Mom#A#/op stores. /oor monsoons and low %*/ %rowth could affect consumer spending drastically. 0*I restrictions in the retail sector. 9I &verage grocery spends at =4> of monthly spends#presents a huge opportunity. Jnavailability of "ualified personnel to support exponential growth in retail. 62 . (6R8/(S2 <I 4I :I 2ising leaseOrental costs affecting pro!ect viability. =I (pends moving towards lifestyle products and esteem enhancing products.O''OR(<3I(I8S2 <I Increasing revolution. (ocial factors like dual household income has enhanced spending power. urban population#more participants in retail 4I :I Increase in consuming middle class population. =I &rchaic labor laws are a hindrance to providing 4=O8 shopping experience. 7I &vailability of old industrial lands#prime real estate locked in sick industrial units. 8I Increase in use of credit cards.

8I *ifferentiate taxation laws hindering expansion. C'ALLENGES 63 .

The most important difference is that where marketing has the classic = /s H/roduct. /romotion. Y -ow price strategyE The Indian consumer being value#conscious. a key to success for many retailers is the ability to attract customers by offering low price guarantee.ut retail management in the true sense Has retailing is known in the westI is a relatively new discipline in India. Things such as waiting and parking areas need to be taken care of. It is unlike other forms of marketing and the traditional marketing rules do not apply. credit facilities. Y Indian consumer behaviors # 2etailers need to conduct M2s and behavioral studies into the Indian psyche simply because he is so different from those in the west and in fact.2etailing in its traditional form has been existing in India for decades. Therefore the contact person Hwhom the consumers interact withI becomes a doubly important entity. Y -ocationE & prime location in the cityOtown so a big plus. the /eople. people is added which is critical. 64 . . there is a fifth / added to the existing = of marketing.I and thus keep the enthusiasm going. His shopping patterns need to be analyzed in detail. /rice and placeI. as in service. different from other Indian consumers. They are critical to a service business like retailing both as employees who execute the business and the customers with whom retailers must interact. Y &ggressive sales. discount and collection schemes Hsay. in retailing a fifth /. In retailing. The "ollo+in are the *ey challen es o" retailin : Y -arge transactionsE 2etailers need to handle smaller transactions in large numbers and still be able to make money.

a critical !usiness process: The Industry is facing a severe shortage of talented professional. efficient customer responsiveness and swiftly evolving retail environment in India. business development. &s somebody rightly pointed out.e supply chain is *ey -ogistical challenges. . the people. An a ile and adapti.on"uering the retailing in India will be a ma!or challenge. operating margins. supply chain. especially for mid#sized retailers will shrink. the local %odsR . &ny retail chain needs to experiment and re# orient to cater to the local needs and preferences. (uccessful Indian retailers are creating a robust second and third level of management by hiring aggressively for these key roles. . constant changes in consumer preferences and patterns.R. talented professionals will put increased pressure on wage costs. Therefore. the supply 2etailing in India chain dynamics. &reas gradually becoming critical are technology. %iven that these chains come with huge asset bases and financing from their international operations. There is also a huge risk for Indian retailers becoming a poaching ground for international retailers once they enter India.However. marketing. India remains one of the last frontiers of modern retailing. the poorer Hbut strongI unorganized cousins and of course. This will bridge the gap in availability of talented professionals at the middle and lower levels. this is not a difficult task. especially at middle#management level. These factors pose a huge challenge for that all important key to pushing growth in this kind of an environment# an efficient and adaptable supply chain. product development and research. 65 . & wise retailing hawk would set up special cellsF committees to track retailing industry throughout the country. There is also an increasing trend towards hiring hotel management graduates in the retail sector. given the complications that the unorganized sector poses those of the supply chain and consumer behavior as well as the glaring complexities of such a vast a market with all kinds of consumer segments thrown in. Bhile Indian markets still beckon a large retail chain. There is also an increase in number of retail management programmes and institutes. The retail industry is expected to create 4 million !obs between now and 46<6. the success of anyone foraying into the land of snake#charmers and mahara!as ultimately depends on how well and in#depth understanding they have of the conditions.enchmarking the best in the country and seeing oneself as to where exactly he wants to be in the complicated perceptual map would be a fine starter. crowded marketplaces.Y Jse of information technology HITI in developing a supply chain and integrating all the retailing processes from procurement to after sales.

Be believe that the implications and size of this loss will be more significant as retailers continue to scale up and increase product lines. refrigerated transport and ware house facilities across the country. 99. along with timely distribution of supplies to retail outlets will. there will be a pressing need for a single. operators to discount clothing. %oing ahead. 0raud and theft. 66 . & bulk of its population.M.several retailers ranging from 0A. In financial terms. compliance and management of point of saleH/1(I data. Fraud in retail is e/pensi. lives in rural retail potential Be feel that private logistics companies offering specialized services. /1( systems and anti shoplifting systems for greater control over fraud and theft.% and retail sectors are likely to see an increase in adoption of (.transparency and visibility in financials and inventory. &s Indian and International retailers continue to grow their presence regionally. which will become increasingly complex. India)s 0M. most Indian retail players are under serious pressure to make their supply chains more efficient in order to deliver the levels of "uality and service that consumers are demanding. This is despite the fact that most large modern format retailers use standard security features such as . including employee pilferage. vendor frauds and inaccuracy in supervision and administration costs the Indian retail industry about 2s 776#966 crores every year.MI solutions to improve core business processes such as global sourcing.In the last 4#: years .logistics. have implemented (upply chain management H(.innovation.<>. with 45 states and <. enterprise#wide IT platforms to manage operations.e Be feel that fraud in going to be one of the retail sector)s primary challenges in the future. However.. shoplifting.distribution.TD)s. #mpro.ement in in"rastructure and lo istics needed India is a large and highly fragmented country. officials) languages. cost of this fraud constitutes about 4> of the organized retail sector)s revenues.

LOCATION LANNING 67 .

Jrbanization is driving an increasing need to upgrade or create infrastructure facilities. for next two years. &n indicator of the urgent need for highway development. May have a large parking area. Infrastructure is the weakest link in India)s path to progress and there is urgent need to address issues plaguing this area.ocation a. d. or lack of it.In contrast to the global standards.ompounds and (hopper)s (top in Mumbai.angalore A:B *estination ? reestanding . The lack of ade"uate infrastructure makes it virtually impossible to reach this virtually untapped market. May not be a commercial retail area at all.666 /assenger car units H/.666 /. port infrastructure cannot be ignored. -ow real#estate rentals.ocation 68 . the average load carried by trucks in India around 8 tonsZ is very low. <6.666 MB of power needs to be added every year for next decade.ocation2 a. is the fact that average daily traffic volume on highways of :5. High real#estate rentals. c. *istribution. areas. Has an array of retail stores in small sizes. b. necessitates "uadrupling of airport capacities. %rowth in air passenger traffic. Has stores that are generally found in clusters based on product categories. Dery busy with high customer traffic. . estimated at 46> p.rigade 2oad in . is a ma!or hindrance for retailers in India. A-B S)o##ing -entre?%all .T* ES OF LOCATIONS /B 6ig) E Street . c.andra.> increase in tonnage in next #: years and hence. The lack of "uality infrastructure across the country and a non# existent distribution sector results in inefficient logistics systems. 'g E/hoenix Mills . with a deteriorating railway system and a limited highway network . for instance. /orts will witness :. However. Transport is a ma!or concern. This will help in an overall decline in logistics a cost which is currently <6#<4> of total %*/. b. 'gE -inking road in . the Indian %overnment is presently investing heavily in the state highway system.a. *oes not have a high footfall rate Hcustomer traffic needs to be pulled I through the store)s marketing efforts or productsOservicesOprocess differentiationsI b.J)sI far exceeds the highway capacity of <7.J)s.

psychology. such as people.Has an 'xisting mall traffic. Has a designated parking area. / well t)oug)t out #lan not only !a. but mistakes made in the area of store design and layouts are usually "uite costly to correct. (ome bad decisions made in the planning stage can be corrected.Has a clean 'nvironment. The most important planning occurs before a retail store even opens for business. there is plenty of room for creativity. lighting.G In assessing the desirability of various available locations. The retailer draws on knowledge from such areas as marketing. $o location is staticF it is either improving or declining in such things as traffic flow and potential market area. funds.rossroads in Mumbai #ocation' store design and layout: 1nce a geographical market has been chosen. and storage are examples of areas covered in this part of the retail business plan.Medium to High rental cost. 0rom the field of management.a . but it is so important that the successful retailer must give it top priority. (tore design and layout of the store s interior and exterior help determine the store s image and character. In order to use these resources in the most productive way. fixtures. b . 'lanning a retail @usiness )as several advantages. local architects. analysis of trends is important. 'gE *-0 Mall in *elhi. and store planning consultants. The importance of this decision is summarized by a favorite saying of retailersE GThere are three vitally important things in retailing # location. customer traffic flow throughout the store. This part of the plan takes a lot of thought and consideration. 1nce again.areful planning at this time can greatly enhance a 69 . c. and maximizing profit per s"uare foot. the retailer plans for the future. and location. the next step in formulating the retail business plan is to select a site for the store.es t)e @est of t)e #resentC @ut also antici#ates future contingencies 2etailing is a challenging and dynamic field. . finance. location. 2etailers can get specialized assistance from merchandise suppliers. note the positive and negative aspects of each. 2etailers must decide how to make the best use of limited resources. accounting and management. In planning a new store or remodeling of an old one. *isplay windows. and inventories. d . (tore layout involves such considerations as allocation of space. we learn that planning is one of the most important functions of the retailer. It is a function often neglected under the pressure of day#to# day business activity. .

retailers do not know what to do. however. They waste their own energies and the resources of the store. calculate a break# even point. (tores can have many different ob!ectivesE survival. 2evise and update your ob!ectives periodically as well. the retailer can make better decisions. In forming the retail business plan. &sset planning. must often be given consideration. 0inancial statistics on the type of business under consideration are often available from trade associations. 1ften. 7. too. and so on. *o not lose sight of these ob!ectives once they are formulated. and estimate the capital re"uirements of the business. Steps in "ormulatin the retail !usiness plan: Setting o@&ectives. or if appropriate.store s chances of success. .y gathering and synthesizing the relevant information into a retail business plan. This information can be invaluable to the manager in the initial planning stages. involves inventory. (chedule "uarterly. and cash. these assets must be financed in part with funds obtained from outside sources # banks. . or why it should be done. is a primary ob!ective for any retail organization. per cent this yearG or Gto break even in the first year of operationG are examples of clearly defined and measurable ob!ectives. relatives. e"uipment and fixtures. there is no predetermined course of action. Bithout planning. where to do. accounts receivable. and in writing. market share increase. The retailer must make a sales forecast. and with out some predetermined course of action. (ome ob!ectives are more important than others. &n ob!ective should establish a measurable goal # a yardstick to compare results with efforts. if the store is to be a Ggood citizenG of its business community 1b!ectives are difficult to apply to real situations and decisions if they are stated in vague terms. Indeed. In fact. another essential part of financial planning. & workable retail business plan should be detailed. Financial plannin : 0inancial planning is an important part of the retail business plan. of course. specific. policies. high return on investment. a ma!or advantage of planning is that it forces the retailer to put ideas in writing. /lanning begins with ob!ectives. /lanning involves selecting ob!ectives and developing specific program)s. inade"uate financial planning is a fre"uent cause of store failure. growth. and procedures for achieving them. %oals or ob!ectives such as Gto increase sales by <. (ocial concerns. monthly reviews of progress. They must be supported with concrete plans that are specific for reaching these goals. and development of a good store image. be as specific as possible. 2emember to be customer#oriented while setting ob!ectivesF it is one of the keys to successful retailing. /rofit.

(ufficient working capital to meet the costs of doing business the first year is another. and second. the shoe business. The key factors in market assessment areE first.ustomers are drawn to the area because of this convenience. 0or some types of stores. have an area with many anti"ue shops.Assessin a. a retailer can maximize the use of all available assets and can limit or eliminate the handicaps imposed by the inherent weakness of these resources. for example. It leads to better products and services at lower prices. could benefit greatly by hiring experienced shoe salespeople if she is planning to open a shoe store. . /ssessing t)e co!#etitive situation . &t least as important as knowing the strengths of the business is analyzing its weaknesses. 7: . the best strategy can be to locate as close as possible to the competition. &dditional training and outside reading are other answers to many weak areas. /rice wars eat away profits. but they should try to find a market where there is an unfilled demand for the type of store they are planning. & retailer with general retailing experience but little knowledge of. the number of people living in the trade area. 'ven during the planning stage. creative management is a strong resource. 2etailers should not be afraid of competition. or what segment of the market.aila!le resources: Bhat are the strengths and weakness of the businessW . .ompeting stores located in the same area may increase customer traffic.ompetition is a good thing. and each store s traffic helps the other stores. 'ven the age distribution of the population can affect a store s market potential. numerous and O or aggressive competitors are costly to the retailer in many ways. &n extreme example of poor market assessment would be trying to sell expensive fur coats in a poor mining town. Assessin mar*et potential Bhat type of customer. Too many similar stores serving too few consumers cause the sales volume of each store to suffer.y assessing these factors. &wareness of weak areas is the first step in overcoming them. It can inspire a retailer to do a better !ob. However. 'xperienced. (ome cities. the buying power of these people. an accountant can be helpful in setting up an appropriate bookkeeping system. (ome weaknesses can be overcome by hiring an outside expert in areas in which the retailer s knowledge and experience are limited. however. & retailer who is weak in the areas of financial planning and control needs to work closely with a good accountant. say. does the store cater toW Is there enough demand for the products to provide sufficient sales volumeW These are some of the main "uestions the retailer tries to answer by assessing market potential.

0or example. It is a vitally important function because the employees of a store represent that store to the public. 1nce again. . be aware of trends as well. while at the same time accomplishing the goals of the organization. an area with slightly lower market potential at present could be growing very fast and provide a better long#run market for a particular store. tax rates. and store planning consultants. but the effort put into planning at this stage will pay off handsomely when store operations get under way. /eople can really be the most important asset of a retail firm. analysis of trends is important.ocationC store design and layout2 1nce a geographical market has been chosen. 1n the other hand. and storage are examples of areas covered in this part of the retail business plan. and the labour force are other areas that can affect the retail store. 'very retailer is in a leadership position. The importance of this decision is summarized by a favorite saying of retailersE GThere are three vitally important things in retailing # location. local architects. -eadership means motivating employees to achieve their maximum potential.Ot)er assess!ents2 -ocal laws. (ome bad decisions made in the planning stage can be corrected. note the positive and negative aspects of each. These assessments are often difficult to make. customer traffic flow throughout the store. there is plenty of room for creativity. but the population of this area might be declining. (taffing entails the recruitment and selection of employees. materials. (tore design and layout of the store s interior and exterior help determine the store s image and character. staffing. and controlling. and other resources to get a !ob done. The planner should investigate these uncontrollable environmental factors. location. the next step in formulating the retail business plan is to select a site for the store. .y organizing. and location. the retailer establishes relationships among people.ecause leadership means understanding people. 2etailers can get specialized assistance from merchandise suppliers. fixtures. -abour is organized and divided.G In assessing the desirability of various available locations. (tore layout involves such considerations as allocation of space. 1ther management functions performed by the retailer are organizing. *isplay windows. lighting. . and responsibility is delegated. leading. demand for the products may look very promising in a certain area. This part of the plan takes a lot of thought and consideration. $o location is staticF it is either improving or declining in such things as traffic flow and potential market area. In planning a new store or remodeling of an old one. but mistakes made in the area of store design and layout are usually "uite costly to correct. Organization and su#ervision /lanning is an example of a management function. In this preliminary work. and maximizing profit per s"uare foot. it is one of the most 72 .

a unit control system must be set up to keep track of the stock. (uccessful retailing involves having the right merchandise in the right place. an understanding of the target customer s shopping habits and motivations. & balance between meeting customers needs and high inventory carrying costs must be found. /ricing is. Third. and product lines affect its overall image.creative and challenging aspects of a retailer s !ob. &dvertising is another key element of the store s image in the minds of customers. 1nce the inventory has been obtained. Information channels beyond the direct control of the retailer are publicity and word#of#mouth communication. a desired profit must be made. /ricing in retailing is both a science and an art. . design. markdown. closely related to financial planning. and at the right price for the customer. However. sales promotion. if a sales forecast and desired inventory turnover rate have been determined. The retailer s professionalism and attitudes set the tone for employees attitudes and performance. 0irst. layout. The ob!ective of an advertisement is to stimulate the customer to want what the retailer has to offer. and to persuade the customer to take action to satisfy the stimulated want or need. 2etailers have special terms to describe various pricing operations. the goods must sell at a satisfactory rate. inventory costs and expenses must be covered. Information from suppliers can provide valuable input for the store buyer. these past data are not available. past sales data are very helpful in knowing how much to buy. (econd. prices should be fair to customers. &dvertising can be thought of as communicating with customers. 'ricing The goals of retail pricing are fourfold. from the discount store to the exclusive shop with "uality merchandise and expanded customer services. the beginning inventory figure can be calculated. naturally.ontrolling is the follow#up function of retail management.esides advertising. such as markup. and packaging. and fourth. and psychological pricing. /dvertising and #ro!otion & store s location. . In the absence of this information. &ctual performance is compared with planned performance to spot and evaluate deviations. retailers send messages to customers through personal selling. is helpful. 3nowing how much to buy goes hand in hand with knowing what to buy. >nowledge on @uying 0or established retail operations. 73 . Information from store records is a valuable aid in knowing what to buy. 0or a new retail business. at the right time. There are different pricing strategies for different types of stores.

/ccounting and financial !anage!ent Information and control play an important role in the internal operation of a retail business. %ood records are the basis for guiding 74 . 0airness.ecause window displays are so visible.y giving careful consideration to defining who the advertisement is directed at Hthe Gtarget customerGI. In addition. can stimulate impulse buying. 8!#loyee selection and training The salesperson is a communicatorE This person translates product features into benefits and satisfactions for the customer. to show customers the kind of merchandise the store carries. . honesty. they should be given the attention. The uni"ue "uality that distinguishes personal selling from other promotion activities is the opportunity for feedback between customer and salesperson. decisions must be made about the types of services to be offered. (ales promotions can have various ob!ectives. This attitude is expressed to the customer through shopping conveniences. or can suggest uses of a product. retailers can get more mileage out of advertising spend. such as generation of immediate sales. Many retailers are surprised to learn that monetary compensation. The content of an advertisement should focus on benefits desired by the target customers. sales. and trading stamps. and building goodwill. services. deserve the ongoing attention of the manager. The importance of employee selection and training cannot be overstated. employee attitudes. attracting customers to the store.. is usually not their most important concern. they can enhance the store s image. although important to employees. &s part of the retail business plan. %ood salespeople and good value keep them coming back. and opportunity are often more important than pay. (ervices. and to pro!ect the image of the store. (ales promotion and display techni"ues are a ma!or promotional tool. %ood advertising and promotion can get people into a store. . Interior displays can be informative. coupons. 1ther sales promotion strategies include special events. security. Bindow displays can serve to attract customers. and fair values. Services &n enlightened retailer realizes that the customer is the pivot around which all retailing activities revolve.ut most important. care. and creative input they deserve. and handling of credit policies and customer complaints. the salesperson is the representative of the store to its customers.

and that is the computer. They tell how well a business is doing. 0inancial planning in the form of budgets helps retailers to spot problems before they occur. They are the tools a manager uses to control inventory. . 75 . This means that better and faster decisions can be made. such as the market assessment. More and better information is available to the retailer now than ever before. profits. marketing research. expenses. 2esearch can also help answer "uestions in such areas as pricing. Most of the research involved in formulating the retail business plan is in fact. Infor!ation 1ne information tool in particular has been a real boon to retailers. and give evidence about the "uality of management decisions.and controlling a retail business. because of computers. such as balance sheets and income statements. and ultimately. are summaries of the financial strength and profitability of the retail business. promotion and distribution. Information is important for intelligent decision#making. Much of this information evolves from basic store records or is provided by a computer system. 0inancial statements.omputers offer speed and accuracy of information processing that is especially helpful in inventory management. &nother source of information for the retailer is marketing research.

%O($ "I"OR ANA#&SIS The table below outlines some of the strategic moves being planned to change the competitive structure of 2etail business in India. 8arly :irds Retailer :rands 'lans Strengt)s -)allenges ()reats 76 .

and introducing new retail formats It)s smaller ret operations 2/% (pencer)s.af[ :<6 (hoppers) (top 1utlets by 46<6.an evolve on vast customer experience and existing models 'xpanding customer base. .3 2ahe!a %roup (hopper)s (top.:66 planned by 46<6 .rioO *esi .ity.azaar. <66 . . 96#86 new .ities next on list (till considered a southern brand 'stablishing itself into newe regions.ig .ould get bogged down positioning itse right 0uture %roup /antaloon.af[ .rossword outlets within two years. opening more outlets.af[ and <= new Hypercity /ulse on customer tastes with vast local retailing experience 3eeping up brand loyalty . sourcing products at competitive prices Source : #ndian %ana ement0 1olume 230 #ssue 10 4anuary 56670 Pa e 13 !e)utantes Retailer rands !lans Strengt"s C"allenges T"reats 77 .azaar. Inorbit Mall Hyper . . Music Borld 'xpansion into other ma!or cities at prime locationsF . 0ashion (tation.af[ .rioO*esi .rossword.lue (ky & store a day for the next three to four years N :. . 0ood . sourcing products at cheaper rates (traddling with too many reta formats Tata Trent Bestside -ooking to register it)s presence in hypermarketsF currently operates 4< stores &lready has an established brand like Bestside (prucing up product offerings.# .

e =resh !*ans to set u.ing foray into retai*.h Hero 1rou- =*oated Aero Infrastru.ing$ she*f and overa** offerings In t)e 'i#eline Retailer Aditya 'ir*a rands Madura 1arments$ 'ir*a <un Life Insuran.t -ri.hain management$ vendor deve*o-ment with -remium +rands *ike Louis !hi**i--e$ "an Heusen and A**en <o**y <trong +a.a range of different store formats$ .ia* +ase C"allenges 1aining a nationa* foot-rint T"reats 'ui*ding retai* formats from s.ture$ man-ower$ +rands 'harti Wa*mart =ie*d =resh 'harti@s *o.turing se. (urrent*y deve*o-ing two industria* -arks at Haridwar and &ttaran.rat.rat.onsumer retai*ing.k-end retai*servi.reate a +a.onvenien.om+ination of *arge and sma** stores Strengt"s %/tensive e/-erien.ted <trong +a.e stores and hy-ermarkets as we** as .om+o Wooing the -ri.t -ri.e in everyday .k end$ nationwide fue* retai*ing -*atform 1etting the retai* -ortfo*io right for Indian tastes !rodu.h Litt*e e/-erien. 78 .Re*ian.a* e/-ertise and Wa*-Mart@s +a.onsumer !rodu.e Re*ian.e sensitive Indian .e in su--*y-.ture Ltd announ.es +usiness !an-Indian o-erations e/-e.k-end make it a *etha* .kground in severa* manufa.torsA sound finan.ha* (reating retai* o-erations from s.e and Idea (e**u*ar$ !*anet =ashion and rouser own %asy 'i** !lans o ro** out it@s retai* +usiness within the ne/t 7-8 months with a .ing$ infrastru.

*uture Outloo+ 79 .

The Indian population is witnessing a significant change in its demographics. & large young working population with median age of 4= years. the prospects of both the sectors are mutually dependent on each other. The trends that are driving the growth of the retail sector in India are • • • • .5. along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.. 76#plus (pencer s Hyper covering = million s".666 crore plus HL46 billionI by 4665#<6. The whole concept of shopping has altered in terms of format and consumer buying behavior.arge Retailers • Reliance RetailE investing 2s.ft by 46<6.ft retail space and achieve 2s. one of India)s largest industries. • • • 8. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth tra!ectory.ow s)are of organized retailing alling real estate #rices Increase in dis#osa@le inco!e and custo!er as#iration Increase in eI#enditure for luIury ite!s A-6/R(B Road /)eadJ 'lans of . :6. . ushering in a revolution in shopping in India. nuclear families in urban areas.666 crore HL9.=66 crore#plus HL56 millionI in next five years on Max Hypermarkets A value retail stores. multiplex# malls and huge complexes offer shopping.I 8S(G. Modern retail has entered India as seen in sprawling shopping centers. entertainment and food all under one roof. 2etail. entertainment and food all under one roof.98 billionI in setting up multiple retail formats with expected sales of 2s. R'1E /lanning I/1 will have =76#plus Music Borld. This has also contributed to large#scale investments in the real estate sector with ma!or national and global players investing in developing the infrastructure and construction of the retailing business.666 crore#plus HL4 bnI sales by 466. 56. ushering in a revolution in shopping in India. .8E Investing 2s. 2etail and real estate are the two booming sectors of India in the present times. &s the contemporary retail sector in India is reflected in sprawling shopping centers. multi#storied malls and huge complexes offer shopping.2etailing in India is gradually inching its way toward becoming the next boom industry. &nd if industry experts are to be believed. has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. the concept of shopping has altered in terms of format and consumer buying behavior. home and lifestyle centres. 'antaloon RetailE Bill occupy <6 mn s". &ccounting for over <6 per cent of the country)s %*/ and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry.

Inorbit Mall.uisition activity 8: .87 million s". • (erger and ac.rossword.ft retail spaces through <76 stores in next five years. and Home (top formats. Bill operate 77 GHypercityG hypermarkets with J(L<66 million sales across India by 46<7. .• Ra)e&a=sE 1perates (hoppers (top. 'ira!yd RetailE &iming to occupy <.

arlson 2estaurant H0ood 2estaurant Borld# retailI wideI -ingerie and women s wear retailing 47> $O& Indus -eague clothing 4669 H0uture group companyI 'tam group.India witnessed a record number of MA& deals in the first half of 4669.usiness (take HJ(L millionI : 7 4667 4667 2etail H0ootwearI 2etail clothing 7<> 9. 0rance 76> HCDI .hronicle Holdings -eisure retail chain Hbooks. music.<: The table below shows some recent deals that have taken place in the Indian retail sectorE .ooks.9 billion. <66> toysI .onsideration ?ear &c"uiredO CD . accessories <= 4667 -andmark Tata Trent 8=> 4= 4669 .istro Hospitality T%I 0riday s Ha subsidiary of .ompanyO &c"uirer Target -iberty (hoes 0uture group $ature of .lothing 0uture group 4667 1dyssey India *eccan . & significant number of deals have being carried out in the Indian retail sector in the past few months in order to ac"uire a larger share in the growing domestic market and to compete against the prospective global and domestic players. Source: Price +ater house Coppers0 Asia(Paci"ic %8A !ulletin0 mid year 56639 82 . which were collectively worth J(* 47. music.> Indus # -eague .

lifestyle shifts and availability of a wide range of brands are dictating the high#growth of different retail formats in India. enabling information to flow freely from retail functions to suppliers. &nd with this increased competition. In another instance. 2etailers are now looking at creating an efficient supply#chain via a concept popularly referred to as consumer driven replenishment. Bhat this implies is placing the consumer in the centre of the replenishment process. To implement consumer driven replenishment. (panish retailer Sara furnishes its store employees with /*&s to help them order out#of#stock items the minute the customer brings it to the assistant s attention.onsumer driven replenishment will change the way the industry handles forecasting and replenishment. 0or example."echnology . consumer driven replenishment within the Indian retail sector will be reflected in rapid growth in sales of supermarkets. some of the other key modules that the store of the future will look to implement will includeE Store connecti. department stores and hypermarkets. They simply keep their money and leave the store in search of another product. &ll supply chain partners will become part of a cohesive architecture. consumers often do not substitute the same brand. consumers may speak to store associates or call centre agents to en"uire on a particular product. Bith visibility into every resource. .onsidering the Indian retail industry grew by :66 per cent in the last <4 months and supply chain accounts for 76 per cent of costs. these out#of#stocks rise to <7 per cent. This data helps Bal#Mart align inventory with increased demand to cover unnatural events and prevent out#of#stock situations. Bal#Mart leverages weather data for replenishment. which often go unnoticed today. 3eeping these deliverables in mind. . stores will take advantage of up#to#the#minute data at the right time for increased strategic flexibility and informed decision# making for managing inventory. retailers are now looking at ways to enhance the supply chain and predict consumer#buying habits. This information captured via the /*&s dictates next#day replenishments at the stores. maximizing mind share in a cluttered market and delivering the best in store experience. the stores in that area are doubly stocked up with essential items such as bottled water and batteries. selection and service to consumers. High consumption patterns driven by disposable incomes. These will include initiatives to streamline internal back end costs so as to translate savings onto customers. . The ma!or business change will start at the business process levelF to respond "uickly to consumer demand.ity: (tores will invest in building wide#area networks HB&$sI and virtual private networks HD/$sI to access information across various sites. retailers and their supply chain partners must redesign the current business process.A %ritical "ool 1ut#of#stocks are the most noticeable problem for consumers \ during normal shopping experiences eight per cent of intended purchases are not on the shelf and when it comes to promotional offers. to allow retailers to be able to use real#time data to sense and respond to changing consumer demands. Inevitably. 0aced with an empty shelf. retailers will look at various opportunities to maximize customer satisfaction. -et s take the example of a L47#billion retailerE lost sales due to out#of#stocks added up to nearly < per cent of total sales \ a mind#boggling figure of L< billionR 2etailers across the nation are unable to predict and master the demand#supply gap as a result of orthodox tools to measure changing consumer behavior. 0or example. one needs to first collect and analyze pre# shopping signals. $o wonder. &s this often leads consumers to purchase products. Bhen the world s largest retailer knows about an approaching hurricane or snowstorm. retailers and supply chain partners can use existing consumer touch points to map consumers buying preferences. Indian retail players are under tremendous pressure to make the supply chain more efficient in order to deliver "uality.

In conclusion. the Indian consumer will hopefully never find his shopping preferences out of stock. and there are numerous applications\both business and consumer\that can be built around radio fre"uency identification H20I*I to deliver operational . control costs. receiving points. Store MobilityE (tores will use wireless technologies at the point of sale for faster checkout and real#time product information in the store to improve operations. The Indian retail market is booming.ation throughout stores at signifi. allowing them to identify problems as shop lifting. IP Communications: <tores wi** . for organizations relying on the delivery of specific components to fulfill their own order schedule. Y &llowing !ust#in#time practices. the goal is to maximize warehouse space. %ini!izing errors in delivery Misdirected deliveries or incorrect orders can immediately result in on#shelf out#of#stock situations leading to reduced sales and damaged customer relationships. Bithin the retail environment goods shrinkage is widely perceived to account for up to one per cent of stock. and throughout the supply chain to reduce costs. -et)s see the actual benefits of using 20I* in the supply chain.RFID: Bidely regarded as the key defining technology to hit the retail sector. %ini!izing goods s)rin. such errors can have a serious impact on customer satisfaction. inventory management.e systems$ -roviding instant . These readers in turn will be networked to a centralized monitoring system that would give companies information they could never imagine with current operations. Bith networks that will enable real time updates to predict and replenish stocks. 20I* tags on each piece of merchandise will enable companies to monitor their inventory at a more detailed level than ever before. Y Trigger alerts around inventory movement based on business rules you construct. and even gray market) sales that can erode profits and damage distribution relationships. %aIi!izing ware)ouse s#ace Bith the high costs associated with storage real estate.osts. This will improve utilization without undermining the ease with which goods can be moved in and out. counterfeit control. representing a significant dent in profit margin. suffice to say that faced with poor supply chain management and a rapidly changing environment. Indeed. and measure results. backrooms and store shelves. as 20I* can play a role in food safety.usinesses must avoid focusing too intently on the ways 20I* tags can be used and instead stay focused on how 20I* can improve consumer value and address complex business issues.age Theft combined with imprecise inventory management can create a significant shortfall in actual versus expected goods available.ant*y redu. today s retailers will most definitively look for consumer driven replenishment to simplify supply chain operations. such as loading docks. distribution centers. The biggest benefit is the total visibility across the entire supply chainE Bhat managers worry about the mostW It is directly or indirectly related to uncertainty.entory and the "ather o" stoc*(outs9 Inventory %anage!ent Y Maintain a real#time view of tagged inventory as it flows through the supply chain.ommuni. . Y Track discrete movement of tagged inventory. 'xecutives will identify when problems occur by monitoring signal readers installed at key !unctures. :enefits to -onsu!ersC 20I* can go beyond !ust intangible cost savings.ed . and warranty programs. :ncertainty is the mother o" in.onverge their data and voi.

retail. merchandising and inventory management. 'xplains . it will surely be a boon for both retailers and .hain Disibility and 2eusable &sset Tracking will emerge as key solutions that have high applicability in the Indian market. unlike in developed countries.efficiencies. government and healthcare. 0or instance. The level of bar#code usage is also largely due to the retailers) initiatives of printing these codes at their warehouses. Many retailers have few IT systems in the areas of supply chain management. The cost of tags and readers is fairly high todayF once it comes down and 21I is established.6 percent savings in time spent on scanning items.'& elaborates.G . where suppliers print bar# codes. P20I* is a transformational technology that has the potential to change the way business is conducted. it can minimise losses. &lthough at a nascent stage. PBhile 20I* is at a nascent stage.hopra. (upply . -aments . if a retailer is able to track shipments and high#value assets in real#time./% companies. Most retailers do not have integrated IT systems today. especially in manufacturing. we expect 20I* will start gaining traction around 46<6.Q &ggarwal of .Q .hamaria. vendor development. PIndian retailers are still to adopt bar#coding completely. The annual expenditure on IT is "uite negligible. 20I* has hardly any presence in India.ut as of now. there are several killer applications that can utilise 20I* technology across verticals. 20I* can also lead up to . &part from improved and enhanced accuracy.

Te+h!olo#y i! Retail .

ar . which makes the process very fast. 2ather than manually process a che"ue. use pre#stored data to calculate the cost and generate the total bill for a client. the retailer voids it and hands it back to the consumer along with a receipt.1ver the years as the consumer demand increased and the retailers geared up to meet this increase. processes a che"ue electronically by transmitting transaction information to the retailer and consumer s bank. &n integrated supply chain helps the retailer in maintaining his stocks. • '2/ (ystem Darious '2/ vendors have developed retail#specific systems which help in integrating all the functions from warehousing to distribution. having digitally captured and stored the image of the che"ue. • /ayment /ayment through credit cards has become "uite widespread and this enables a fast and easy payment process. In a matter of seconds. -usto!er Interfacing Syste!s • . The hardware and software tools that have now become almost essential for retailing can be into : broad categories. preventing stock#outs and thus reducing his costs. removing the need of a consumer physically visiting the store. while servicing the customer better. 'lectronic che"ue conversion. • Internet Internet is also rapidly evolving as a customer interface. front and back office store systems and merchandising. a recent development in this area. . &ll that the consumer has to do is to pay for the goods. getting his supplies on time. the items in the cart are hit with laser beams and scanned.oding and (canners /oint of sale systems use scanners and bar coding to identify an item. technology evolved rapidly to support this growth. Tunnel (canning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale.

along with the various available .pportunities • • /otential 0or InvestmentE The total estimated Investment 1pportunity in the retail sector is around J(L 7#9 . #n. $eilsen and Moda. • &dvanced /lanning and (cheduling (ystems &/( systems can provide improved control across the supply chain. .2M (ystems The rise of loyalty programs. $agpur there exists tremendous potential in two tier towns over the next 7 years.angalore. allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses. weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data.illion in the $ext five years.estment . all the way from raw material suppliers right through to the retail shelf. Mercia-incs and (tirling#*ouglas. &hmedabad. The (/&. distributors and retailers and considering &/( packages such as those from i4.ann. . . *elhi. *ata warehousing A mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. /une.hennai.ustomer 2elationship ManagementI (ystems.ertain segments that promise a high growth are • .2M H.&* are example of products helping in modeling a retail store design. software packages are helping retailers not only in their locational decisions but in decisions regarding store sizing and floor#spaces as well.'M&$ (tore (uit from &. • Disual Merchandising The decision on how to place A stack items in a store is no more taken on the gut feel of the store manager.oimbatore. . Mumbai. monthly forecasting. mail order and the Internet has provided retailers with real access to consumer data. -ocationE with modern retail formats having made their foray into the top cities namely Hyderabad. This. (ectors with High %rowth /otentialE . -eading manufactures. They enable consolidation of activities such as long term budgeting. These &/( packages complement existing Hbut often limitedI '2/ packages. Today.• . Strate#i+ De+isio! S&pport Systems • (tore (ite -ocation *emographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. Manugistics. & larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options.

Batch A Cewellery • 0astest %rowing 0ormatsE (ome of the formats that offer good growth potential areE o (peciality and (uper Market     • • Hyper Market *iscount stores *epartment (tores . IT. %erman giant Metro &% and (outh &frican (hoprite Holdings have already made headway in this segment by setting up stores selling merchandise on a wholesale basis in .azaar .     0ood and %rocery . There has been yet another initiative by the *.angalore and Mumbai respectively. Bholesale TradingE wholesale trading also holds huge potential for growth. offering a diverse product range from 0M. 2ural 2etailE 2etail sector offers opportunities for exploration and investment in rural areas. attempting to provide farmers a one#stop destination for all of their needs. launched the country s first rural mall . 1ther corporate bodies include 'scorts and Tata .M (riram %roup called the Hariyali .onsumer .heap . • • .haupal (agar . India s largely rural population has caught the eye of retailers looking for new areas of growth.% to electronics appliance to automobiles. with .redit .orporates and 'ntrepreneurs having made a foray in the past.lothing 0urniture and 0ixtures /harmacy *urables. that has initially started off by providing farm related inputs and services but plans to introduce the complete shopping basket in due course.onvenience (tores and '#2etailing (upply . 0ootwear A -eather.hemicals Hwith Tata 3isan (ansarI setting up agri#stores to provide productsOservices targeted at the farmer in order to tap the vast rural market.hain InfrastructureE (upply chain infrastructure in terms of cold chain and -ogistics. These new#format cash#and#carry stores attract large volumes from a sizeable number of retailers who do not have to maintain relationships with multiple suppliers for all their needs.

Government Initiatives . Regulations .

hina had one supermarket. of the top 476 have already opened stores in . The globalization of china is complete. %lobal chains have had a <: year run in china. the left parties are orchestrating a passionate opposition to allowing 0*I in retail.Q he clarifies. Most of India)s home grown retailers also oppose 0*I. H(upermarkets are perceived to be kirana killersRI. if the approach is instinctively protectionist. These days. Hypermarkets. managing director. because of their enormous numbers. wipe out small kirana stores and put millions of !obs in !eopardy. The arguments are familiar N that global retailers will swamp the Indian markets.hina. Indian companies need time to mobilize at least part of the capital before the foreign players are allowed in. :7 of the top 76 and 8. In Thailand and Malaysia. They also argue that giant global retailers will s"ueeze suppliers and finish them off. then the . . It set up &llied 2etail Trade.II. in fact acts as an informal social security net N almost anyone without a !ob can set up a kirana. when they have built up larger business. Pargues 3ishore . I$*I&)s retail industry N the fourth largest in the world N accounts for << per cent of the country)s %*/ and employs over =6 million people Habout 8 per cent of (ector retailers H?es. they may get far higher valuations. 0our of the world)s <6 largest retailers. . PBhat is the hurry Hto allow 0*IIW 0or <6 years. 666. I allowed domestic chains to build up good valuation before opening 0*I. global retailers have spelt doom for the traditional mom and pop stores. The .This sector. 666 crore will be needed in retail to scale up to its potential. P The negative effects in terms of !ob losses and the displacement of traditional supply chains by the monopolyO monophony power of multinational retailers far outweigh the supposed benefitsTQ the left observed in a recent seven#page note that summarized its arguments against 0*I.ut five or <6 years later. 1f course.hina. In <554. the government has barred 0*I in retailing since <558. . /antaloon 2etail. a huge ma!ority of the retail workforce is in kiranas.hina allowed only one foreign store per province. argues .iyani is also chairman of . total employment in the countryI. though towards the end of Da!payee)s governmentVs term there were noises that it would consider such a move. In private some domestic retailers fear getting lower valuations from their global counterparts if they sell out today. In fact the Thai government had to step step in to save local retailers from annihilation. the argument of asking for more time to get even better valuation may not lose its appeal even a decade later. Today it has 96.ut if the Thailand story is forbidding. P The debate is not Vwhether or not to allow 0*I. .46. discount stores. they have retailing /(J)sRI had a :4 percent share and private sector retailers had =7 per cent. leading to millions of !ob losses. though for a different reason.hina one is inspirational. which estimates that 2s. which brought small stores together to fight the big chains. So what impact has this had? . The big worry is that global retailers will "uickly put these kiranas out of business.onfederation of Indian Industry)s retail committee. a network of franchised stores.iyani.C/ was not too keen on it early on. $ow. but Vwhen and how). Is that fear !ustifiedW The answer can be found in the experience of othercountries that allow 0*I in retail. supermarkets.There has always been a strong opposition to 0*I in India)s retail sector Hthough <66 percent 0*I is allowed in distribution companies that sell to the trade and not to the consumerI. %iven the political clout of the small trading community. . cash A carry convenience stores every conceivable format operates in .

Its retailing industry is one of the most matures ones in the world. . .=<9 stores with a total area of 47.hina)s or Thailand)sW PIndia cannot be compared with Thailand and Malaysia as the scale is much smaller and economic levels are dissimilar. %reater investment in the food processing sector technology . Therefore their performance cannot be compared with rest of the country)s retail sector. so they have great inventory management. more efficient more customer# friendly than they were five years agoF they are matching the chains) prices and continue to do brisk business.. one could also look at the J( story.hina (imilar increase in sourcing observed for Metro in India /rovides access to global markets for Indian producers.Q says &rvin (inghal. large chunk of underdeveloped population.hina had combined sales of L96 billion in 466=. P(mall businesses have their own competitive advantages. .etter lifestyle %reater level of wages paid by international players usually More product variety $ewer product categories 'conomies of scale to help lower consumer price. the "uestion is which theory is relevant to India N .hain (tore A 0ranchise &ssociation.e competition )e. back home.ut N and here)s the revelation they have only 5. I think small business can grow and prosper with Bal Mart. but they are still small Vmom and pop) operations on the J( scale.The top <66 retailers Hboth domestic and foreignI in . .hina makes sense because of its similarities with IndiaE large area. .5 per cent in 4666.# billion retail tradeR That figure has grown from 4. It is also home to some of the world)s largest retailers.hennai.9 per cent share of .ut the fact is that the single# store operations still control a little less than 76 percent of J( retail trade. They are localF they are usually in the same block that the customers are inF and they are very convenient. They know their customers by name. &gain. these small players have not find a lot of them in the vicinity of a Bal# Mart or a target.hina . *espite over six decades of dominance by large chains. so they offer great customer service. million s"uare metres. the foreign firms account for only 4: percent sales of the top <66 retailers.B during his May visit. according to the . They are also under pressure and their market share in on the decline. Investment in technology .hina)s public $ow. disparity in income levels.ut there is a less understood aspect of the J( retail scene N 57 percent of all retailers in the J( are single N store operations. offer a different product mix.hinaVs L94.hina improved multifold after 0*I permitted in .razil today. Increased purchasing capacity of consumers . 'ven stores in close vicinity of these large supermarkets have survived. . and keep their customers happy. They are smarter. They have tailored their inventory for their customers. PMenzer had argued in an inclusive interview with .etter operations in production cycle and distribution. These <66 companies have so far opened :6. but must be benchmarked only against the top <66 firms. The right comparison would be %ermany 46#:6 years ago or . chairman of consultancy 3(& Technopak. the kiranas haven)t been slaughtered. They may not be as the Indian 3irana. Bhen seen thus. where large and organised supermarket chains like 0oodBorld and $ilgiri)s have grabbed a 46 percent market share.hina only in 466=. in .elop the mar*et : %reater level of exports due to increased sourcing by ma!or players (ourcing by Bal#Mart from .old storage chains solve the perennial problem of wastage. It must be mentioned that the global giants got unfettered access into . (mall businesses have their own model. and many times they give credit. 1r better still. Be!e$its o$ ope!i!# the Retail se+tor #mpro.

This is lost demand. PIf the economy grows at 9. If you do not have an efficient distribution chain. managing director.ash A . Bon)t these kill kiranas and lead to !ob losses.hina. Here poor distribution and below#par processes is another bottleneck. Increased consumer demand implies employment generation across the value chain does not need very high skill sets. but they also create many !obs. India.Q argues retail expert %ale. its retail still employs 9 percent of the total workforce H only marginally smaller than IndiaI. . In the J(. This is almost double the retail workforce in . &nd it is due to India)s rather inefficient supply chain. a figure growing at over 47 percent every year.ut they will have an impact on the consumer almost immediately.elopment : & strong retailing sector boosts tourism as seen from the experience of (ingapore and *ubai.hina employ . almost <7 million people or <<. If you do not have organized distribution.hina N and much higher than in IndiaR Many believe that organised retail actually leads to !ob gains rather than !ob losses. P(upermarket chains will divert business from small vendors.arry. 0*I would result in market growth and expansion. (hifting of !obs is bound to happen. Investment in whole supply chain Improved product basket from India for exports. -ong term benefits.<6. the percentage looks paltry. 1ne reason for that is growth of organised retail stimulates consumption. &nd increased consumption means more production and therefore more !obs. development of efficient small and medium size industries. the economy cannot growT(uch inefficiency will lead to !ob losses. 1n a much larger scale . then the government ought to be e"ually concerned about Indian retailers as well.oom in employment similar to !ob generation in IT'( industry. therefore argue that India)s consumption is actually way below actual potential N and that there is inherent !ob loss of !obs that exists in the economy.Manpower and skill development through retail training and %reater managerial talent inflow from other countries Tourism )e. 'mployment generated at various levels. if the fear of kiranas being snuffed out is true.666 people. we will have 7#8 years.ahadur.8 of the workforce are employed in retail. .7 percent or so every year. *espite the entry of organized retail N domestic and foreign N in . 1f course.urrently this is a ma!orly unemployed demographic group . Metro . you won)t have employment growth. 0inally. (everal large and influential business groups like the Tatas and &mbanis have ambitious plans that include setting up of hundreds of supermarkets and hypermarkets. owners of large and small stores will tell you that they face stockouts N products not available when a consumer asks for it. The top <66 retailers in .In India.ut compared with the J(. . This is not to say that the changeover will be painless. 1ne could. in India the consumer is invariably forgotten when protectionist lobbies voice their concern.ut new !obs comparatively lower down the value chain %reater clarity and ob!ectivity can be achieved if one looks beyond kiranas at the larger issue of employment. needs high school graduates and other similar skill level.up#gradation of agriculture. In realityF foreign retailers will be in a position to influence employment only several years after they enter India. .Q argues Harsh .

R8S8/R-6 %8(6O*O.O1G

O@&ectives of study • The overall purpose of this endeavor is to investigate empirically customers) preference towards exclusive and multi brand retail outlets and to determine the factors that influence the satisfaction level of customers) in retail sector especially in -ucknow city. • This study is also aimed at finding out the relation between ma!or demographic variables and satisfaction level of customers) and preference of retail formats. • To study the preference given by consumers in term of "uality, ambience, service, scheme and location for retail purchase. • Bhat are the factors affects for the purchaseW

Researc) *esign2 *escriptive research design will be used. • • • (y#e2 *escriptive (tudy Sco#e2 combination of theoretical study as well as (tatistical (tudy 8nviron!ent2 0ield 2esearch

*ata Sources2

Primary )ata # (urvey of ,ustomers in -ucknow. It will be collected with the help of +uestionnaire Method and (urvey 2esearch. &s well as unstructured observation will also come in use at some part HtopicI of study.

Secondary )ata # It will be collected with the help of Internet, books, !ournals, articles of newspapers A magazines and research papers related to booming organized retail sector.

*ata /nalysis2 *ata will be analyzed with the help of certain statistical tools. 1. +uestionnaire method 2. Method of observation Sa!#ling *esign2 • • • • 'o#ulation2 ,onsumers of -ucknow city Survey area2 ,onsumer located in different area of -ucknow city Sa!#ling !et)od2 $on#/robability ,onvenient sampling plan. Sa!#le size2 <66 consumers from -ucknow city

Significance of t)e Study2 • • To know the awareness of people about different brands of retail sector. 2esult will be the knowledge about customer)s preference towards exclusive and multi#brand retail outlet that will be helpful to find out the factors that influence the satisfaction level of customer. • It will be helpful to know the connection between demographic factors of consumer like age, income, education and choice of people for different types of product.

.i!itations of t)e Study2

• • •

The present study is limited to the growth of retail sector in india only. The bias of respondents while responding cannot be eliminated. The study was limited to only in -ucknow city.

*elivery %et)od2 Two hard copies in form of booklets and two softcopies in form of ,*s.

GSIS .• • 0irst copy of pro!ect report will be submitted to pro!ect guide. R8S8/R-6 /3/. (econd copy is participant)s own copy.

In the sample size most of the people Hi.e.>Iwere able to do shopping between 2s. • /verage %ont)ly S)o##ing :udget of -onsu!ers2 The below given was the interpretation of the average monthly shopping budget for the sample size in the pro!ect survey. The Dishal Mega Mart is also famous because of its reach in the various areas of the city. its customer services. its "uality are the important factors for the awareness of the any retailing company or brand but apart from all these the most important thing which influence the awareness of any particular brand is it)s advertising and other promotional activities. . discount schemes and offers. 4666#7666.ig .azaar of future group in -ucknow is very well know brand among the people of sample because of it)s pricing. :. .This research analysis is based on the answers given by the sample customers of -ucknow city in the above given consumer survey "uestionnaire. <4> 8> <> 6#4666 4:> 4666#7666 7666#<6666 <6666#46666 :. attractive offers and discounts and its very good promotional and marketing activities.> 46666#76666 76666 A More <5> • /wareness a@out different @rands of Retail Sector2 The store location.

&mbience came in last for all of them.azar Dishal Mega Mart (hoppers (top -andmark Best (ide • 7)ic) Retail c)ain -usto!ers li.azaar most often. They want to get well treated by the sales persons of the stores.6 96 =6 46 6 . shopping comfort and good customer services.ig .ecause of it)s attractive pricing and good schemes and offers people like to visit . &fter that they also going there for the "uality experience. . (hoppers stop do not have discount offers and schemes but it is still liking of some of people in sample size because of its ambience. Dishal Mega Mart is also giving attractive discount on formal wear so it is also known for good footfall.azar :9> Dishal Mega Mart 48> • -usto!er 'references for s)o##ing fro! Retail c)ains2 The consumers of sample size were visiting the big retail outlets most because of their good pricing and for their attractive schemes and discounts offers. Thereafter they are also looking for good customer services. -andmark <<> (hoppers (top <8> Best (ide 5> . The location of the store is also a big concern for the consumers.<46 <66 .ig .ig .e to visit often2 .

:ecause of co!#etitions in t)e !ar. In t)e case of ot)er ite!s li. /ssu!ing t)at i!#rove!ents in infrastructure and lower real estate costs @eco!e a realityC :ig Retail still )as a long way to go @efore satisfying t)e )ig)ly diverse needs of t)e Indian #o#ulation.e #urc)ases in a @ul.et t)e @randed for!als are also @eca!e c)ea#er so t)e younger generation #refers to #urc)ase fro! t)e retail outlets of t)e @rand t)e city.*iscount (chemes +uality -ocation . /fter studying t)e custo!er survey 0uestionnaire statistically and t)eoretically as well and after o@serving t)e consu!er4s !ood and t)eir #references I can say t)at :ig Retail is )ere to stay. So!e of t)e! )ave #erce#tion t)at t)ese @ig stores are too costly to afford and so!e of t)e! are not a@le to !a.e it fro! w)ere t)ey are getting c)ea# #ricesC good after sales services and t)e goodwill of t)e store.irana store. #refers to go to t)e retail c)ains.e wristwatc)esC @randed &ewelryC !o@ilesC gift ite!s and ot)erC t)ey #refer to ta. It is difficult for t)e retail stores to satisfy all t)e needs of t)e custo!ers.eIist wit) S!all Retail. /s a resultC t)ere will @e a steady state w)ere :ig Retail will co. Only t)e @ig retail c)ains are a@le to satisfy all t)ese needs of t)e new age consu!ers w)ereas t)ere is still so!e consu!ers !ostly of t)e old age are willing to #urc)ase fro! t)e local . so t)ey do not want to waste t)eir ti!e to go es#ecially to t)e @ig store for 2. ()e !ost of t)e consu!er4s want to get so!e attractive #ricesC good sc)e!es and offers on every #urc)ases and a s)o##ing co!fort as well. ()ose w)o are a@le to #urc)ase t)eir needs and want for a !ont) in a @ul. .ustomer (ervice &mbience Conclusion ()e consu!er4s #references are c)anging ra#idity and @eco!ing )ig)ly diversified.3 ite!s #urc)ase.

A ENDI.ide us your un!iased and "ran* opinions9 :.ify) EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE 3.hains do you visit oftenB 'ig 'a?aar <ho--ers <toWestside Landmark "isha* Megamart .C 2.-2. What is your month*y sho--ing +udgetB .C D5. CONS#MER S#R$E% &#EST'ONNA'RE RETA'L C(A'NS The o!<ecti.C 2.h retai* .hains did you visit B 'ig 'a?aar <ho--ers <toWestside Landmark "isha* Megamart Any other (!*ease s-e.-2C 2-5C 5-:.-5.e .h retai* .ey is to collect tan i!le in"ormation a!out shoppin in Retail Chains9 This =uestionnaire is !ein administered to people li*e you +ho ha.C :. Whi.ided !y you shall !e *ept con"idential and +e shall only !e pu!lishin the outcomes9 Please pro. Whi.isited and !ou ht products in Retail Chains9 Please let us *no+ your spontaneous response to the =uestions that pertain to your shoppin e/perience in Retail Chains9 All in"ormation pro.e o" this sur.

h -rodu.hemes =ree Fffers (ustomer <ervi.e #is.h retai* .e Attra.a*e of -3 to G3 your -er.e Home #e*ivery 'ig "isha* Westside <ho--ers Landmark 'a?aar Megamart <to:5 7. 65 8.ates su-erior) H =eature Am+ien. Whi.hainB Am+ien.tive !ri.ates inferior and G 3 indi.e Attra.es !ri. 6.hoi.i*ities (onvenien.hain did you *ike mostB 'ig 'a?aar <ho--ers <toWestside Landmark "isha* Megamart Any other (!*ease s-e.hainsB EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE .hains (where -3 indi.tive !ri.ts do you norma**y +uy from retai* .es Wide range of .e-tions a+out your sho--ing e/-erien. Mark on a s. Whi.e in the fo**owing retai* .u*ar retai* .ounts =ree+ies <a*es-eo-*e 'ehavior !arking =a.ify) EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE 6. Why did you *ike that -arti.es Range of (hoi.e Any Fther (!*ease <-e.ify) EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE 5.es #is. 7.ify) EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE 4.Any other (!*ease s-e.ount <. 5.

reate unem-*oyment -ro+*emsH <trong*y Agree Agree Neither Agree Nor #isagree #isagree <trong*y #isagree :4. Whi. How mu.ts do you norma**y +uy from your *o.ts do you norma**y +uy from your . he emergen.hain on every visitB .-6.hemist sho-B EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE :. Whi.hains wi** destroy so.EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE 8. Why do you *ike to +uy from .ia* harmonyH . Minutes 4-5 Hours :-2 Hour I5 Hours 2-3 Hours :3.ery storeB EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE ::.h time do you s-end in the retai* .e of retai* . he emergen. Minutes 3-4 Hours 3..e of retai* . Why do you *ike to +uy from *o.a* gro.h -rodu.ery storeB EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE 9.h -rodu.a* gro.hains wi** .-3.hemist sho-sB EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE :2.

-40. G$aduate #o&t-G$aduate An" ot'e$ (#!& &peci)"* ___________________ /ive . Occupation: _______________ 4. 20.ontri+ute to the 1rowth MomentumH <trong*y Agree Agree Neither Agree Nor #isagree #isagree <trong*y #isagree. he emergen.e of retai* . mp!o"ee #$ivate mp!o"ee %u&ine&&man An" ot'e$ (#!& &peci)"* 5. +ncome g$oup: 5. Student -%A 10.-20. 40. 1e!ep'one Numbe$ 4 mai!:___________________________________________ KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK ()an.-50. =#I in Retai* <e. Numbe$ o) /ami!" 0ependant&: Ni! One 12o An" ot'e$ (#!& &peci)"* 3.tor wi** . 50.ontro* over -ri. ..<trong*y Agree Agree Neither Agree nor #isagree #isagree <trong*y #isagree :5. ducation: ______________________________________________________ 15-20 40-50 20-30 50 & above 30-40 Student Govt. & above 30.-30. Age: 3.ause mono-o*isti.hains wi** .-10. GouKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK .esH <trong*y Agree Agree Neither Agree Nor #isagree #isagree <trong*y #isagree :6. Name: 2. )emo raphics 1.

economywatch.com www.s and %agazines • • • .usiness -ine :oo.org 3ews#a#ers • • • • • • The Times 1f India The Indian 'xpress The 'conomic Times 0inancial 'xpress .ibef.indiabiznews.com www.e"uitymaster.indiainfoline.com www.com www.com www.usiness A 'conomy .usiness Borld The Indian *ream .rediff.References 7e@ Sites and Searc) 8ngines • • • • • • • • www.fashion4fibre.com www.usiness (tandard .google.com www.