RETAIL INDUSTRY

1. OVERVIEW OF RETAIL INDUSTRY IN INDIAN CONTEXT
‡ Size of Indian retail market (In terms of retail sales) - US$ 353 billion
rd

(According to BMI India Retail Report for the 3 Quarter of 2010). ‡ India is the 39th most preferred destination for retailers in the world (According to realty consultant firm CB Richard Ellis )

1.1. Classification of the Indian market into Organized and Unorganized Market

Still a major chunk of the retail market is ruled by the unorganized players. The organized retail penetration is slowly catching up with more number of foreign players entering the market as well as the growth of Indian retail companies and changing income and standard of living of the people. Competition from the traditional retail sector will continue to be a major issue for international firms entering the Indian market, whether directly at the wholesale level or indirectly through local firms. Traditional shops are mostly owner-operated, have low labor and property costs, and generally pay little or no tax. New entrants to the organized retail sector will also face higher labor and property costs than traditional firms and must bear the additional expense of back-up power supplies. Other impediments include high intermediation costs, expensive and often inadequate supplychain infrastructure, inflexible labor laws, complicated property codes, multiple licensing requirements and a shortage of skilled managerial staff.

1.2. Top 10 Global Players by 13th annual Global Powers of Retailing by Deloitte Touche Tohmatsu
This report identifies the 250 largest retailers around the world based on publicly available data for the companies¶ 2008 fiscal year (encompassing fiscal years ended through June 2009).

1.3. Top Indian Players in The Retail Market
Future Group/ Pantaloon Retail India Ltd K.Raheja Group Tata trent RPG Retail Relaince Retail Aditya Birla Landmark Group Piramal Group Vishal Retail Bharti Walmart

1. 4. Retail Formats Format Department Store Hypermarket Brand Name Pantaloon, Shoppers Stop, Westside, Lifestyle, Piramyd Big Bazaar, Star India Bazaar, Spencers, Reliance Fresh, Reliance Mart Food Bazaar, Fashion Station, Blue Sky, Shoe Factory, Ezone, Food World, More, Madura Garments Crosswords, Inorbit Mall, Hypercity,Café Brio, Music World, Health and Glow True Mart

Supermarket

Specialty Stores

Discount Stores

1.5. Preferred Locations for Retailing in India 
Mumbai emerges as the preferred location for retailing  Northern region ± most popular among these companies .They denoted their preference to have their retail stores in the northern region.  Reason for the preference  This region has been riding high on the success of the IT and ITeS-BPO companies operating in the region.

2.2. Job Roles Entry Level:
y y Stock and Inventory Associate Bagger

y Retail Sales Associate Middle Level:
y y Retail District Manager Loss Prevention Manager

y y y y y y y

Store Manager Assistant Store Manager Management Trainee Merchandising Trainee Sales Manager Retail Buyer Assistant Retail Buyer

y Warehouse Manager Senior Level:
y y y y y y Group Manager Divisional Merchandising Manager Vice President and General Merchandising Manager Senior Vice President Stores Executive Vice President Chairman

y CEO

3. Career in Retail
Organized retail segment has better job prospects for the younger generation. The Dun n Bradstreet survey revealed : y y y 56% of the employees are under-graduates. Graduates 36% Post-graduates 8%

3.1. Career Path 
While there are many jobs in retail for those without college degrees, a degree makes it possible for you to enter the retail work force at a higher level² management trainee for example, instead of sales clerk.  Typical career paths in the industry include management and buyer positions.  Management trainees generally work within a department for one to two years to gain experience and qualify for promotion to department manager.  In some retail operations, the management trainee can move into an assistant buyer position, gaining experience in buyer functions²merchandise selection, order writing, receiving, and related responsibilities. Store manager, division manager, buyer, merchandising manager, divisional merchandise manager, and other upper-level positions can follow.

3.2. Retail Training Institutes in India 
Integrated Learning in Management (IILM),  Indian Retail School,  Loyola Institute of Business Administration (LIBA),  Mudra Institute of Communications,  S P Jain Centre of Management,  Welingkar Institute of Management's Centre for Retail Studies  K J Somaiya Institute of Management Studies & Research. From our observations we inferred that most of the retail institutes in India do not have exclusive courses on IT used in Retail.

3.3. Retail Training Institutes Abroad
U.S. retail Degree Programmes and Advanced retail Education Courses are available in:  University of Arkansa  University of Arizona  University of Florida, Warrington Business College- David F. Muller Centre of Retailing, education and research  Texas A&M centre for Retailing studies  University of Pennsylvania / Wharton School- Jay H. Baker Retailing Initiative  University of Santa Clara-Leavey School Of business Retail

management Institution

3.3. Top 10 Recruiters for Retail Companies
Reliance Retail Lilliput Pantaloon Retail India Ltd Shoppers Stop

Number of Vacancies
79 30 21 17

Unisource Group Welspun Retail Limited Homestore India Ltd. Express Retail Services HAS Lifestyle Pvt. Ltd. Wadhawan Food Retail (P) Ltd.

16 16 13 11 8 5

4. Expansion Plans of Indian Retail Players
Pantaloon Retail:  Plans to hire around 4000  To open 150 new store Shoppers Stop:  Will hire around 2000  Plans to add 18 department stores Aditya Birla Group:  Plans to hire atleast 2000 sales staff  To open a dozen hypermarkets

5. Challenges in Retail and some IT Solutions 
Under developed SCM  Unavailability of products and high billing time (high shelf out)  High price technology  Shop lifting  Poorly intergrated distribution channels  Managing customer loyalty programs

Key Challenges
Lack of distribution Hubs Lack of National Distribution Networks Fragmented Market Distribution Costs Infrastructure Constraints Large Geographic area 0 10 20 30 40 50 32 42 44 46 59 59 60 70

Source: KPMG Market Survey It took some time for IT vendors to realize the vast potential in retail. Vendors are unveiling an entire range of IT products and solutions for the retail sector. Some of the key innovations include:
y

Customer identification using RFID: This involves identifying customers by issuing them smart cards embedded with smart chips. These cards would be RFID enabled and would give information regarding the customer like his preferences, shopping behavior etc. E-Catalog based selling: Here a limited range of merchandise is available instore, while the range of a hyper format is made available through self browse kiosks. Mobile Point of Sale (POS): This would enable the purchase of goods while putting them in a shopping cart. The customer would be spared the hassle of standing in long queues. Digital Signage: Static signboards have not proved beneficial in terms of helping a customer track a product. Digital signboards integrated with an automated tracking system can make this easier.

y

y

y

y

Intelligent database: A detailed database of the customer is made available online and helps the retailer understand a particular customer¶s buying characteristics.

In addition, retailers are even deploying applications such as CRM for loyalty programs and personalized service and ERP, inventory management, supply chain management and security solutions, POS, master data repository, data management etc to get the basic infrastructure in place. Large scale IT adoption is not equal across categories in the retail industry. There are eight key segments in the retail sector, food/ grocery/ vegetables, garments, electronics/electrical, cosmetics/medicines, home furnishing and furniture, lifestyle products (jewelery, shoes, watches), office products and multi product outlets. ³Lifestyle and apparels are more open towards IT. Even grocers are thinking of deploying basic IT solutions. On a whole every retailer is looking at a tailor made solution which meets his needs.

6. Availability of Retail Skills in the IT Companies
Zensar Technologies
Major Clients: Somerfield, Giant, Food World Retail is the second most revenue generating verticals Pune ± Hub for Oracle Retail professionals

Tesco 50% of employees in Retail Supervalue 70% of Supervalue in Retail WIPRO: ‡ ‡ ‡ 75-100 employees in Oracle Retail. Most of them are based in Chennai followed by Bangalore. Apart from this they also have employees from their acquisition of

the Portugal Company, Enabler. ‡ TCS: y Most of the Retail vertical employees are in Chennai followed by Bangalore. y y y IBM: y 200 people in Bangalore in the retail vertical. Approximately 700-800 people in the retail vertical in Bangalore In the North, Noida is the hub for almost all retail projects Employees in the retail vertical work on SPSS, SAS, Nitro and Planogram (basically used in merchandising to design a retail outlet) They have their largest account with Pepsi Co followed by Nike

Accenture: Approximately has 1500 people in this vertical