What Is Retailing?

Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world

Types of Retailing In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows: • Food products • Hard goods ("hardliner retailers") - appliances, electronics, furniture, sporting goods, etc. • Soft goods - clothing, apparel, and other fabrics. There are the following types of retailers by marketing strategy:

Department Stores- very large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Discount stores- tend to offer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. Supermarkets- sell mostly food products; Warehouse stores- warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; charge a membership fee; Variety Stores or "dollar stores" - these offer extremely low-cost goods, with limited selection;

• •

• Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).

Speciality stores: A typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a

hand cart and pavement vendors. the local shops. Moreover. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years. paan/beedi shops. etc. It is a huge industry in terms of size and according to India Brand Equity Foundation (IBEF). owner manned general stores. The Retail Business in India is currently at the point of inflection. refers to the traditional formats of low-cost retailing. and also the privately owned large retail businesses. it is valued at . Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. An increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. those who are registered for sales tax. over thirty regulations such as "signboard licenses" and "anti-hoarding measures" may have to be complied before a store can open doors. There are taxes for moving goods to states. Unorganized retailing. The organized retail market is growing at 35 percent annually while growth of unorganized retail sector is pegged at 6 percent. etc. from states. income tax. for example. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. that is. Organized retail such supermarkets accounts for just 4% of the market as of 2008. and even within states. Retailing in India Retailing is one of the pillars of the economy in India and accounts for 13% of GDP. The retail industry is divided into organized and unorganized sectors. Regulations prevent most foreign investment in retailing. These include the corporate-backed hypermarkets and retail chains. on the other hand. convenience stores. Organized retailing refers to trading activities undertaken by licensed retailers.customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.

000 hypermarkets and 3. maintaining its position as the most attractive market for retail investment. the retail business in India is estimated to grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-12. Organised retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. With over 1.000 sq ft ( m2) as compared to today.000 sq ft (46. The enormous growth of the retail industry has created a huge demand for real estate. The predictions for 2008 are 7.000. India will need additional retail space of 700. Current projections on construction point to a supply of just 200.000.000 m2) that needs to be filled.000 m2). The Indian economy has registered a growth of 8% for 2007. leaving a gap of 500. Kearney’s annual Global Retail Development Index (GRDI) for the third consecutive year.000 supermarkets projected to come up by 2011. According to the Icier report. 300 malls are estimated to be operational in the country.about US$ 395.000 sq ft (19. at a cost of US$15–18 billion.9%. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12 . Property developers are creating retail real estate at an aggressive pace and by 2010.000. India has topped the A.T.96 billion.000.

iPods. refrigerators. Consumers in the status category buy because they need to maintain a position in their social group. When it comes to the festival shopping season. purchase decisions can be separated into two categories: status-oriented and indulgence-oriented.8 million households in India have an annual income of over 45 lakh (US$100. CTVs/LCDs. there are significant challenges as well given that over 90% of trade is conducted through independent local stores. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0. high-end digital cameras. camcorders. washing machines. Delving further into consumer buying habits.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world.The Indian Retail Market Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. Challenges include: Geographically dispersed population. and little use of IT systems. limitations of mass media and existence of counterfeit goods. Indulgence-oriented products include plasma TVs. complex distribution network. 1. small ticket sizes. While India presents a large market opportunity given the number and increasing purchasing power of consumers. and gaming consoles. stateof-the-art home theatre systems. .350). dishwashers. Indulgence-oriented buying happens with those who want to enjoy life better with products that meet their requirements. it is primarily the status-oriented segment that contributes largely to the retailer’s cash register. microwave ovens and DVD players fall in the status category.

India is the last large Asian economy to liberalize its retail sector. Organised retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time. the organized sector will be 20% of the total market share.Growth of Indian Retail According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney. and has been concentrated mainly in the metro cities. In 2007. but the organised sector represents only 2% share of this market. A similar phenomenon has swept through all other Asian countries. Most of the organised retailing in the country has just started recently. it rose to 12%. India retail industry is the most promising emerging market for investment. The Indian retail sector is estimated to have a market size of about $ 180 billion. the share of organized sector in 2007 was 7.5% of the total retail market. In Thailand. The Indian retail sector can be broadly classified into: a) FOOD RETAILERS . more than 40% of all consumer goods are sold through the super markets and departmental stores. It is also expected to reach 22% by 2010. According to a report by Northbride Capita. In 2009. the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. It can be mentioned here that.

in contrast. e) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign .In comparison. d) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. modern clothing and footwear stores have modern products and attractive displays to lure customers. c) CLOTHING & FOOTWEAR Numerous clothing and footwear shops in shopping centers and markets operate all over India. who operate small single-outlet businesses mainly Using family labour. Despite the large size of this market. and changing patterns of consumer tastes and preferences. dominate this sector . However there is considerable potential for the entry or expansion of specialized retail chains in the country. super markets account for a small proportion of food sales in India. However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. Traditional outlets stock a limited range of cheap and popular items.Here also small. it is unlikely that the traditional outlets will survive the test of time. However. single-outlet retailers dominate the market .There are large number and variety of retailers in the foodretailing sector.However in recent years. their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products . b) HEALTH & BEAUTY PRODUCTS With growth in income levels. Although these retail chains account for only a small share of the total market . very few large and modern retailers have established specialized stores for these products. a few retail chains specializing in these products have come into the market. with rapid urbanization. Traditional types of retailers. Indians have started spending more on health and beauty products .

. There are specialized retailers for each category of products (books. f) LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country.companies during the post liberalization period. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. A greater variety of consumer electronic items and household appliances became available to the Indian customer. etc. music products.) in this sector.

000 crores • 5X growth in organized retailing between 2000-2005 • Over 4.000 crores (US$ 7 Billion) or more by 2010-11 . of retail space • Over 400.5.000 crores • Organized market: Rs.000 sq.000 shoppers walk through their doors every week • Growth in organized retail on par with expectations and projections of the last 5 Years on course to touch Rs.PRESENT INDIAN SCENARIO • Unorganized market: Rs.000 new modern retail outlets in the last 3 years • Over 5. ft. 583. of mall space under development • The top 3 modern retailers control over 750. 35. ft.000 sq.000.

000 crores ($20 billion) by 2009-10. Westside. entertainment etc.Key Players in Indian Retail Sector • AV Birla Group has a strong presence in apparel retail and owns renowned brands like Allen Solly. music & gifts. book and music retail chain. Segments include books. The company has investment plans to the tune of ` 8000 – 9000 crores till 2010. health & beauty care service • • • • • . the lifestyle retail chain registered a turnover of ` 3. Louis Phillipe. K Raheja Corp Group has a turnover of ` 6. Trouser Town. Landmark Group invested ` 300 crores to expand Max chain. Van Heusen and Peter England. Lifestyle International is their international brand business. books. e-tailing. Reliance has more than 300 Reliance Fresh stores. and ` 100 crores on Citymax 3 star hotel chain. consumer electronics. it operates lifestyle retail chain.58 mn in 2006. apparel. Segments include Food & grocery. home solutions. Trent is a subsidiary of the Tata group. shoes. they have multiple formats and their sale is expected to be ` 90. music and gifts. Pantaloon Retail has 450 stores across the country and revenue of over ` 20 billion and is expected to touch 30 million by 2011. consumer electronics chain etc. entertainment.75 billion which is expected to cross US$100 million mark by 2010.

the consumer spending has also gone up and is also expected to go up further in the future. As a result. the organized sector is also expected to grow at a CAGR of 40%. As the country has got a high growth rates.3 trillion by the year 2018 at a CAGR of 10%. By the year 2013. In the last four year. It is further expected to reach US$ 1. the consumer spending in India climbed up to 75%.The Future The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. the India retail industry is expected to grow further in the future days. .

exposure to media.12. The country is witnessing a period of boom in retail trade. is also bringing in slow changes in lifestyle in the smaller towns of India. resulting in increase in operational efficiencies and decline in costs for the supply chain. The addition of better and affordable retail space would enable retailers to deliver more better-quality products and services to the consumers. India is one of the complex real estate markets in the world due to the large degree of variation and inconsistence in the market practice and regulatory norms. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores. apart from bringing in sweeping.Conclusion In India the retail sector is the second largest employer after agriculture.90. directly or indirectly. although it is highly fragmented and predominantly consists of small independent. transparency in ownership. However. and organised retail trade is worth about Rs. have all resulted in narrowing down the spending differences between the consumers of larger metros and those of smaller towns. The retail revolution. greater availability and penetration of a variety of consumer goods into the interiors of the country. positive changes in the quality of life in the metros and bigger towns. furnishing stores and chemist shops. and availability of loans for retail land. A combined effort by both central and state governments in terms of appropriate zoning laws. mainly on account of a gradual increase in the disposable incomes of the middle and uppermiddle class households.There are over 12 million retail outlets in India . . is very much necessary for reducing existing bottlenecks. More and more corporate houses including large real estate companies are coming into the retail business. the supply of quality real estate space would be instrumental in propelling the future growth momentum of the retail sector in India. in the form of mall and shopping center builders and managers. owner – managed shops . Increase in literacy.000 crore .

An alignment of the retail sector with the tourism sector could also promote India as a global shopping hub. and services. as well as standardize and unify taxes for the industry. Although many international retailers and brands still regard India as too difficult. increasing income levels and living standards. if they felt India was changing. the organised sector will grow to almost Rs. . a better shopping experience. Recognition would ease financing prospects. representing 6% of the total retail market. The growth of the organised retail industry in the country will mean thousands of new jobs. a leading consulting firm.30. better products. 000 crores by 2005.Accordance of ‘industry status’ to retail in India is an issue that needs to be addressed soon. According to KSA Technopak. the spread of organised retailing has to become a national phenomenon. and more social activities. For the retail sector to achieve further growth. they would welcome the opportunity to create an appropriate joint venture. The top 6 cities will account for 66% of total organised retailing.

jackets. . jackets. contemporary range of readymades from Park Avenue. The retail chain constantly sets new standards and creates environments that make shopping a pleasure. It also offers Made to Measure – a unique offering for a perfect comfort fit. shirts & finely crafted garments from Raymond. smart casuals from ColorPlus and luxury formals from Manzoni. This chain of shops has over the years become a yardstick by which other retail stores are judged. trousers. stylish casual wear for occasions beyond work from Parx. contemporary range of readymades from Park Avenue. stylish casual wear for occasions beyond work from Parx. The Raymond Shop’s wide reach and range of products.The Raymond Shop The Raymond Shop is a premium retail store offering complete wardrobe solutions to the discerning man through its range of fine fabrics for suits. trousers. Added to this is a quality Custom Tailoring service which makes The Raymond Shop an ideal destination for anyone to look good and feel great. makes it the largest one stop retail network in the country. shirts & finely crafted garments from Raymond. The Raymond Shop has been a pioneer in organized retailing in the country starting around five decades ago. The Raymond Shop is a premium retail store offering complete wardrobe solutions to the discerning man through its range of fine fabrics for suits.

Each store makes available to customers the entire product range of garments and accessories. travel or occasion wear. These provide customers a unique and leisurely shopping experience while also presenting them a new look to suit every new occasion – be it formal. which includes topof-the-line brands Raymond. Added to this is a quality Custom Tailoring service which makes The Raymond Shop an ideal destination for anyone to look good and feel great. Evening. The Raymond Shop is a premium retail store offering complete wardrobe solutions for men. Travel and Heritage Wear. Manzoni. .smart casuals from ColorPlus and luxury formals from Manzoni. It also offers Made to Measure – a unique offering for a perfect comfort fit. Brands under Raymond To let customers soak in the brand experience. outdoor. casual. Raymond has setup exclusive brand stores. The Park Avenue store offers the perfect premium lifestyle experience and addresses the customers need for Business. ColourPlus and Parx. Leisure. Park Avenue.

Manzoni. Most of these stores are franchisees and the inventory is bought out by these franchisees without any recourse to the company. This makes it an asset light mode The company. the textile and apparel major owning brands like Color Plus. Raymond expects revenue of its biggest brand. Raymond Ltd. Its strong brand 'Raymond' has allowed it to bypass wholesalers and increase its retail presence." Singhania said. Be. Aniruddha Deshmukh. trousers and elegant accessories. had revenues of 8 billion rupees from its apparel division in 2009/10. Parx and ColorPlus. Park Avenue. Park Avenue. Park Avenue. Singhania said the firm plans to open 100 new retail stores under the brand Raymond in FY12. which sells apparel brands such as Manzoni. The company is also planning to launch additional branded outlets for Park Avenue in the next financial year."Park Avenue is a 5-billion-rupee brand and we expect sales from this to grow at least 30 percent in FY12. Parx. Get a cool trendy makeover for that ‘chilled out’ out of office look! Raymond is one of India's largest and oldest clothing and apparel companies. reaching out to over 400 towns. In the last fiscal. . is aiming to increase its retail top line to Rs 1100 crore by 2010 from Rs 700 crore at present. The company has built a robust distribution network. it exited its loss-making overseas operations and shut down its Thane plant. and Zapp children wear. to grow 30 percent year-onyear.Exclusive stores where one can shop for smart casual shirts.

Thus. Generally. The plan is to increase the number of retail stores to 950 by 2010 from 430 at present across the globe. At present. of which 328 are in India and 27 abroad. Since expansion would involve a huge investment. these exclusive brand outlets and The Raymond Shop in the malls take longer in breaking even. 355 are The Raymond Shop. it has 76 stores in small towns. III. the expansion plan would also put emphasis on the model. He said to further strengthen its retail presence. Bibliography . Exclusive brand outlets are all Raymondowned. Raymond will focus on tier-II. Of the 430 retail stores. said the company's retail expansion strategy will lead to growth. IV and V cities. Deshmukh said Raymond would be covering 20 lakh sqft retail space by 2010. Deshmukh said.Raymond's president for retail and FMCG. comprising The Raymond Shop and exclusive brand outlets. Deshmukh said the company has all along been stressing on the franchisee model with 90% of The Raymond Shop being franchised out as it attains a quicker breakeven. across 170 cities on 10 lakh sqft. he said. late breakeven would put pressure on the company's bottom line. Although he did not disclose the expansion investment. which contribute around 12-13% to its total turnover.

Pure Silk.COM WWW.COM WWW. Angora.WWW.RAYMONDINDIA.YAHOO.COM Creating the finest suiting in the world Over time. Alpaca.WIKIPEDIA. Raymond has mastered the craft of producing the finest suitings in the world using super fine wool (with a fine count from 80s to 240s) and blending the same with superfine polyester and other specialty fibres like Cashmere. .GOOGLE.COM WWW. Linen etc.

Mohair. • 2005: Raymond achieved a historical milestone with the creation of the world's finest worsted-suiting fabric from the finest wool ever produced in the world. • 2005: Launch of 'Expressions' an exquisite collection of all wool and polywool suiting fabric specially crafted using exotic fibres like Cashmere.2 microns) fabrics under the Chairman's Collection.5 microns) fabrics under the Chairman's Collection. • 2003: Applause Wool-Rich home washable suiting. • 1999: The Chairman's Collection of Super 150s made from Merino Wool and Cashmere followed by Super 160s to Super 190s.8 micron of wool. Bamboo.We also produce and market plush-velvet furnishing fabric in a wide array of designs and colours for Indian and overseas markets. • 1996: The Renaissance Collection made of Merino wool blended with polyester and specialty fibres (Super 100s to Super 140s). Angora. . • 2003: Super 210s (13. • 2004: Super 220s (12. During the last decade many path breakthroughs were made. • 2002: Super 200s (13.7 microns) fabrics under the Chairman's Collection. Casein. Technological Breakthroughs to our Credit Raymond has been pioneering technological breakthroughs over the years and was the first to introduce Polyester-Wool and Polyester-Wool-Viscose in the Indian market. • 1995: Superfine pure wool collection under the Lineage Line (Super 100s to Super 140s).The Super 230s fabric made up of 11.

Sterling College of Arts. Commerce and Science .

Topic: Indian Retail Scenarios Name: Aniket Y. Khot Course: S.S Roll No: 27 Subject: Marketing Management .M.B.Y.

Submitted To:Prof. Ipshita Das .

no 1 2 3 4 5 6 What Is A retailing? Retailing in India Indian Retail Market Growth & future Example Conclusion Content .Index Sr.