India retail industry is the most promising emerging market for investment. Furniture Bazaar. Music & Gifts: Depot Health & Beauty Care: Star. The India retail industry is expected to grow from Rs. It is also expected to reach 22% by 2010. With growing market demand. Major Retailers in India Pantaloon: Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. India retail industry is one of the fastest growing industries in India. the share of organized sector in 2007 was 7. Sitara E-tailing: Futurebazaar. . By the same time. the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. the retail industry in India was mostly unorganized. It has the following retail segments: y y y y y y y y Food & Grocery: Big Bazaar. ft by the year 2010.000 crore in 2004-05 to Rs. In 2001. the organized sector will be 20% of the total market Entertainment: Bowling Co. Growth of Indian Retail According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney. the industry is getting more popular these days and getting organized as well. especially over the last few years. ft retail space located across the country. it rose to 12%. It can be mentioned here that. It's growing at an enviable pace and is expected to reach 30 million sq. Though initially. According to a report by North bride Capita.INDIAN RETAIL INDUSTRY: The Indian retail industry is the fifth largest in the world. Headquartered in Mumbai. Pantaloon launched country's first hypermarket µBig Bazaar¶. In 2007. 35. Comprising of organized and unorganized sectors. however with the change of tastes and preferences of the consumers. the India retail industry is expected to grow to US$ 700 billion by 2010. In 2009.5% of the total retail market. 109. Collection-i Consumer Electronics: e-zone Shoes: Shoe Factory Books. it has more than 5 million sq. Food Bazaar Home Solutions: Hometown. the industry is expected to grow at a pace of 25-30% annually.000 crore by the year 2010.

. This is also known as Multi Brand Outlets or MBO's.000 crores by 2010. snacks and other small items can be bought via vending machine. Category killers: small specialty stores that offer a variety of categories. Retail formats in India Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories. y y y y y y y y Mom-and-pop stores: they are family owned business catering to small sections. They are known as category killers as they focus on specific categories. Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered. 90. Reliance Reliance is one of the biggest players in Indian retail industry.Tata Group Tata group is another major player in Indian retail industry with its subsidiary Trent. when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Discount stores: these are factory outlets that give discount on the MRP. Established in 1998. It's expecting its sales to reach Rs. such as electronics and sporting goods. Shopping malls: the biggest form of retail in India. it also acquired the largest book and music retailer in India µLandmark¶ in 2005. they are individually handled retail outlets and have a personal touch. which operates Westside and Star India Bazaar. Vending: it is a relatively new entry. 8000-9000 crores by 2010. Departmental stores: are general retail merchandisers offering quality products and services. AV Birla Group AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe. Here beverages. RPG Group RPG Group is one of the earlier entrants in the Indian retail market. malls offers customers a mix of all types of products and services including entertainment and food under a single roof. E-trailers: are retailers providing online buying and selling of products and services. Allen Solly. Later it also opened the pharmacy and beauty care outlets µHealth & Glow¶. in the retail sector. ft retail space across the country. It will invest Rs. Trent owns over 4 lakh sq. It's also investing in other segments of retail. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. Peter England are quite popular. Van Heusen.

y y Increase ROI: Identify non-moving stock across the chain. y Lower Pilferage: Continuous stock audit based on ABC classification of items instead of periodic full stock verification helps you identify mismatch between physical stock & system stock early. This lowers investment & increases the return. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples. temporary stock addition etc. Corrective action for such poor practices can be taken by training the personnel at the point of sale. This helps in making sure poor practices do not become bad habits . transfer them to where they are selling and/or return them. This builds better awareness among point of sale staff and prevent fraud y Prevent poor practices from becoming bad habits: Audit trail help HQ know the activities done at the point of sale and identify the poor practices such as stock updating. allows store keeper source products from the cheapest and best. effective inventory management etc. y Fraud Prevention: Real-time / Periodic upload of point of sale data to the HQ prevents any tampering with data at the point of sale. Combining this with the analysis of their sales. purchase and inventory data. store get better financial control over its business. optimal utilization of store space. identify and return non-moving stock at purchase value to avoid any loss on non-moving stock return. Also. leads to lower operating costs y Centralized Financial Control: As store¶s business moves to a model of depositing the entire receipts/collections with the HQ and all payments are made from HQ. Such continuous stock audit helps lower pilferage. y Best Purchase: As store pool its requirements. Such effective stock transfers coupled with purchase returns increase the ROI. Also ensures that stock can be transferred to the point of sale at short notice. y Lower Operating Cost : Optimal utilization of man power.y Specialty stores: are retail chains dealing in specific categories and provide deep assortment. This allows store better negotiating leverage. the volume of purchase goes up. STORE ACTIVITIES: Lower Inventory Investment: Consolidated view of inventory including the need at each point of sale facilitates optimum inventory at each point of sale.

Launch new schemes time to time like customer cards. Hire. telephone calls. Enforce safety. Direct and supervise employees engaged in sales. Provide help to customer in choosing appropriate product. Provide customer service by greeting and assisting customers. Involvement in other activities like sponsorship of any mega event. Plan budgets and authorize payments and merchandise returns . Inventory stock and reorder when inventory drops to a specified level. or in performing services for customers. free items on purchasing. messages etc. train. Examine merchandise to ensure that it is correctly priced and displayed and that it functions as advertised. Monitor sales activities to ensure that customers receive satisfactory service and quality goods. and evaluate personnel in sales or marketing establishments. Assign employees to specific duties. and security rules. Choose appropriate distribution channel. health.OTHER ACTIVITES: y y y y y y y y y y y y y y y y y y Provide discounts to customers Provide better purchasing environment Provide value added service like assistance in purchasing etc. inventory-taking. reconciling cash receipts. and responding to customer inquiries and complaints. promoting or firing workers when appropriate. Provide information about new products to customers by emails. Instruct staff on how to handle difficult and complicated sales.

PRIVATE LABEL These are the products of store owner. For example if we visit reliance fresh than we can see reliance is its various products with well established brands. . Reliance fresh is also do that brands of reliance itself get front place or with established one in same category. Private labels also give retailers a chance to bring in unique products in their supply chains that have not been branded before and it¶s a win-win situation even for the producers who get a chance to display their produce. wheat floor with name whole wheat. These private brands are actually creating threat to other brand which has space in the same store. Private labels are making their Presence felt in a variety of retail items in the country. its wheat floor was placed with itc¶s ashirwad floor. In the dogfight world of Indian retail. We can find various private brands among other established brands in a store. More.40% stake. Its detergent cake & powder was placed in same rake of established brands. Like it is selling its tea with name reliance select. We can see all these things are happening in all big stores. in total sale quantity stake of private label is 20-30% and in monetary terms of sales private labels have 25. other products like noodles. Though. Retailers have realized that by having top quality private labels they can differentiate themselves from other stores and become destination stores. pohe etc. In reliance fresh its noodles was placed with nestle¶s maggi . sugar. Experts feel they can grow up to 30% once retail brands develop in the country. detergent powder & cake. Most retail Chains in the country are increasingly relying on private labels to bridge the gap in their product mix and are targeting specific needs of consumers. Shopper¶s Stop. Private labels at present constitute about 5% of the organized retail business. readymade cloths with its own name. In any retail store. the private label is emerging as a new business model. Reliance and Vishal Mega mart are expanding their range of private label products from cosmetics and food to clothing to improve the profit margins of their stores. Retailers like Pantaloons. Vishal mega mart is selling chips and snaks.

a major flashpoint vis-a-vis private labels is the possibility of a conflict with other brands in the category. sampling activities and brand development activities such as the cost of promotions. travel to industry fairs. private labels translate into better margins.ADVANTAGES OF PRIVATE LABELS · Store brands most often mean products of reasonable quality at lower Prices · For the retailer. · Nascent retail market and prevalent unorganized retail sector in India. . greater clout with the manufacturers and the ability to fill value gaps in the consumer¶s requirements · Private labels offer the consumer greater value · Private labels offer greater bargaining power to the retailer · Private labels offer the added advantage of exclusivity as no other store has them DISADVANTAGES OF PRIVATE LABELS · Despite the apparently rosy picture. hiring of buying and merchandising resources. · Developing a private label does take a lot of investment.

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