A DISSERTATION REPORT ON IMPACT OF ORGANIZED RETAILERS ON UNORGANIZED RETAILERS As a partial fulfillment for the award of MBA Degree under
UTTARANCHAL INSTITUTE OF TECHNOLOGY (Approved by AICTE, Affiliated to Uttarakhand Technical University) ACADEMIC SESSION (2010-12)
Mr. DEVKANT KALA FACULTY (UIM)
VIPIN RAWAT MBA IV Sem
Mentor Certificate Student Declaration Acknowledgement CHAPTER I 1.1 Introduction 1.2 Review of Literature 1.3 Objectives of the Study CHAPTER II 2.1 Company Profile CHAPTER III 3.1 Details of Work Done CHAPTER IV 4.1 Research Methodology CHAPTER V 5.1 Suggestions 5.2 Conclusion 5.3 Bibliography
i ii iii
This is to certify that Mr. Vipin Rawat of M.B.A (MARKETING) 2010-12 Batch, Uttaranchal Institute Of Technology, Dehradun has successfully complete his dissertation report on “Impact of Organized Retailers on Unorganized Retailers” under my guidance and supervision. This dissertation report is his original work and not copied from any other source. I wish him good luck.
Date: Place: Dehradun
Project Guide Mr. Devkant Kala
This dissertation report has not been present in any seminar or submitted.STUDENT DECLARATION
This dissertation report has been under taken as a partial fulfillment of the requirement of the award of the degree of the “Master of Business Administration” Uttarakhand Technical University.
. Dehradun. This dissertation report was executed during IV Sem. Further I declare that this dissertation report is my original work and the analyses are for academic purpose only. Devkant Kala. of MBA program under the supervision of Mr.
VIPIN RAWAT MBA IV Sem
. without his guidance. who provided me valuable guidance for this dissertation. this report might not have reached the present stage. support and encouragement. my research guide. Finally.ACKNOWLEDGEMENT
I am graceful to Mr. as they have been generous with their time. who helped me directly or indirectly. Devkant Kala. I would like to thank other countless people.
INTRODUCTION REVIEW OF LITERATURE OBJECTIVES OF THE STUDY
There has been considerable growth in organized retailing business in recent years and it is poised for much faster growth in the future. the Indian Council for Research on International Economic Relations (ICRIER) was appointed by the Ministry of Commerce and Industry. opinions are divided on the impact of the growth of organized retail in the country. In order to assess the impact of growing organized retail on different aspects of the economy. Impact on consumers. Overall impact on economic growth. Impact on farmers and manufacturers. on the one hand and. Effect on employment. Government of India to carry out a study on organized retail focusing on the following issues: Effect on small retailers and vendors in the unorganized sector keeping in mind the likely growth in the overall market. enabling better access to markets to producers (including farmers and small producers) and enabling higher prices. Impact on prices. Transnational corporations are also seeking to come to India and set up retail chains in collabouration with big Indian companies. it is essential that an in-depth analytical study on the possible effects of organized retailing in India is conducted. However.
.1. on the other.
ICRIER has been asked by the Ministry to analyze the above issues in the context of a growth scenario of 7-10 per cent per annum in the next five years and in the light of practice in other fast.growing emerging market economies. In the context of divergent views on the impact of organized retail. It has also been argued that growth of organized retailing will yield efficiencies in the supply chain. Major industrial houses have entered this area and have announced very ambitious future expansion plans.1 INTRODUCTION
An important aspect of the current economic scenario in India is the emergence of organized retail. Concerns have been raised that the growth of organized retailing may have an adverse impact on retailers in the unorganized sector. lower prices to consumers.
Retail sector forms 10-11% of GDP1. In such a scenario. DSS (Decision Support System) which provide timely and accurate information can be viewed as an integrated entity providing management with the tools and information to assist their decision making. There is a constant need to capture accurate information and make it available not only within the store but send it to warehouse. However.In India. Retailing is in a rapid state of change due to speedy technological developments. information is crucial to plan and control profitable retail businesses and it can be an important source of competitive advantage so long as it is affordable and readily available. it is expected to increase to 5%. employment opportunity. varying consumer behaviour as well as their expectations and liberalized regulatory environment. distributors and manufacturers. changing competitive positions. by 2010. and usage of technology. is contributing 3% of total retail sector and is still evolving. organised retailing. It is alluring in terms of investment.
Retailing consists of all activities involved in selling goods and services to consumers for their personal. It has been forecasted that the share of modern retail will increase from 2 per cent currently. more than rest of the world put together. in the last few years modern retail has also established its presence in the second rung cities. India has approx 12 million retail stores.
. hypermarkets.2 sq. RETAILING Means “Re-tailing” to the customers so that they comeback. supermarkets and specialty stores across a range of categories. But the per capita square feet area under retail is just 2 sq.Indian Retail Industry
The sea of change can pull customers in many directions. Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not considered a retail activity. It is our responsibility to light the way and take care of them… before the competition does. and services ranging from hair cutting to air travel and computer education. To begin with. or household use. they have never experienced before. exposing the residents of these cities to shopping options. The challenge for leading retailers shall therefore shift from diverting demand to creating demand.ft or 0. family. It covers sales of goods ranging from automobiles to apparel and food products. Modern retail formats have mushroomed in metros and mini-metros. Thus. meters with fragmented kirana stores being the predominant players. Retailing in India has remained in the unorganized sector and largely untouched by corporate. The first decade of modern retail in India has been characterized by a shift from traditional channels to new formats including department stores. retailers today will have to support the large retail infrastructure in terms of Malls and Superstores that are being created. to about 15-20 per cent over the next decade. The Indian retail story couldn't have been more different.
Increased literacy from 44% in 1965 to 70% in 2003. exposing residents to shopping options like never before. ambience.Figures suggest that the total turnover of the sector is around Rs 10 lakh crores. the average Indian consumer has never had it so good. of which 4 percent is contributed by the organised sector.8 million in 1998. Times are changing. In the last few years. modern retail has also established its presence in the second-rung cities. The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales. A young population with 54% population below 25 years. hypermarkets. there is a larger role they would be required to play in boosting consumption levels. A high spending community below 45 years comprises 81 percent of the population. and McDonald‟s led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries. However. Relevant experiences from consumer goods companies.With all the modern stores offering convenience in terms of an assortment of products. through innovation. service and innovative products. The retail sector in developed countries was also highly fragmented at the beginning of the last century but emergence of large chains like Wall Mart. With the GDP at an all time high and income levels shooting through the roof. supermarkets and specialty stores across a range of categories.
.3 million in 1961 to 4. forming 27% of the total population. Increase in working women from 1. which have successfully crafted an explosion in demand in their sectors. one of the largest consuming base in the world. The propensity to consume has reached peaks that had never been scaled before. consumer driven strategies.
The first decade of modern retail in India has been characterized by a shift from traditional kirana shops to new formats including department stores. Sears. the paradigm shall shift from competing with the kirana stores to an in-house demand creation. Credit cards are flashed with disdain and shopping baskets are getting bigger all the time. will be head runner. Modern retail formats have mushroomed in metros and minimetros. even as modern retailers garner share from traditional channels. Here are some factors that indicate the potential of retail in India: At 271 million.
and favorable demographic patterns.
. Industry of retail in India which have become modern can be seen from the fact that there are multi.Organized retail is growing rapidly and we see the emergence of large organized retail chains like Shopper‟s Stop. We also find retail malls mushrooming all over the country. with an employment of around 8% and contributing to over 10% of the country's GDP.5 billion. as a result a great demand for real estate is being created.stored malls. The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change. and Westside. and sprawling complexes which offer food. Shopping in India have witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering. India retail industry is expanding itself most aggressively. Retail industry in India is expected to rise 25% yearly being driven by strong income growth. and a steep rise in rural consumption.India retail industry is the largest industry in India.5 billion by 2010 from the current size of US$ 7. rising incomes.200 billion. Lifestyle. It has further been predicted that the retailing industry in India will amount to US$ 21. It is expected that by 2016 modern retail industry in India will be worth US$ 175. changing lifestyles. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas. huge shopping centers. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. and entertainment all under the same roof. shopping.
Traditional Convenience Stores
Traditional convenience stores are too well established in India than to be wiped out and besides there is uniqueness in the traditional items that represent the sub-continent. The retail stores in India are essentially dominated by the unorganized sector or traditional stores. If the stores are not food based then the type of retail items available are local in nature. Infact the traditional stores have taken up 98 percent of the Indian retail market.
. The traditional family run convenience stores can take pride in the fact that the Kirana is the most common outlet forms for the consumers. The tough competition for convenience stores are coming from organized retail stores dealing in food items. Basically they provide high service with low prices. The benefits of family run convenience stores is that they give importance to: Personal touch Facilities of credit Quick home delivery Non-food based stock comprises of multiple and varieties of local brands. The food products of traditional family run convenience stores are comprised of branded as well as non-branded items. A good example of such would be Convenio. like: Apna Bazaar Canteen stores Food World Subhiksha Food Bazaar
Convenience Stores are open for long hours and is one of the formats of the Indian retail stores that cater to basic needs of the consumer. These stores are found in both residential as well as commercial markets. Now stores run by families are primarily food based and the set up is as Kirana or the 'corner grocer' stores.
among people in general can be highlighted as below: Groceries Fruits Drug Store Necessary stationery
As such traditional family run convenience stores are here to stay and cannot be oversized by the organized retail sector besides. The convenience factor in terms of items. it represents the variety of India.
. would depend on the following particulars: Place and capacity Diligent area coverage Disciplined work schedule Managing turnover Revenue from assets Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the housewives who definitely wants to avoid traveling long distances to purchase daily needs.The future of such stores as they face competition from organized sector.
A number of global retail giants such as Walmart.
.000 billion accounting for about 10% to the country's GDP. Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. entertainment.Indian Organized Retail Market
Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. One such company is the Reliance Industries Limited. Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010. and 300 new malls are being built. Indian organized retail market will definitely grow as a result of all this investments. Carrefour. Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost. 325 departmental stores. and Metro AG are also planning to set up shop in India. and patterns of demography which are favorable. the retail industry in India amounted to Rs 10. and shopping all under one roof.5% of the total revenues. In 2005. This change has come in the consumer due to increased income. medium. and small grocery stores. Traditionally the retail industry in India was largely unorganized. changing lifestyles. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million joint venture. comprising of drug stores. This has given Indian organized retail market a major boost. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior. Now the consumer wants to shop at a place where he can get food. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3.
Modern retail formats. The share of organized retail varies widely from just one per cent in Pakistan and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia.
. whereas such forms of retail outlets have only just begun to spread to developing countries in recent years. 1996-01. superstores. Grocery dominates retail sales with a share of approximately 40 per cent which varies from about 30 per cent in rich Japan to an average of 60 per cent in poor Africa. global retail sales grew strongly in the last five years (2001-06) at an average nominal growth of about 8 per cent per annum in dollar terms . This is in contrast to near stagnant global retail sales during the previous five years. such as hypermarkets. discount and convenience stores are widely present in the developed world.
Organized vs Unorganized Retail
In the developed economies. the retailing business continues to be dominated by family-run neighbourhood shops and open markets.International Retail
Global retail sales are estimated to cross US$12 trillion in 2007.1 Almost reflecting the growth in the world economy. wholesalers and distributors who carry products from industrial suppliers and agricultural producers to the independent family-owned shops and open markets remain a critical part of the supply chain in these countries. supermarkets. organized retail is in the range of 75-80 per cent of total retail. the unorganized sector dominates the retail business. Retail sales through modern formats have been rising faster than total retail sales. whereas in developing economies. the share of modern retail has risen from about 45 per cent in 1996 to over 52 per cent in 2006. As a consequence. In developing countries.
there are four types of policy regulations that can be seen in countries which have experienced advanced retail expansion. • Policies to strengthen traditional retailers and suppliers through technology and practice upgrading. and financial access. on the other. market penetration. in most West European countries.
. land use restrictions (zoning laws). • Zoning and hours regulations to limit the diffusion. enhancing organizational capacity. on the one hand and the traditional retailers and suppliers to the modern retail. the very small number of countries where opening on Sundays are prohibited include developed countries such as Germany and Austria (Planet Retail). These restrictions involve the use of a combination of competition laws. As noted by Reardon and Hopkins (2006). and convenience of organized retail. Recently.Regulatory Framework
It is interesting to note that regulatory restrictions on the growth in modern retail is more stringent in developed rather than in developing countries. While in most countries opening hours are liberalized including holiday trading. • Pricing regulations that prevent modern retail companies from pricing below cost and promptpayment regulations to secure speedy payment to suppliers. They are: • Competition policy that limits concentration and collusion. setting up of hypermarkets has become very difficult since the late 1990s and early 2000s as governments became alive to the demands of traditional small retailers and non-mobile consumers in these countries. and Thailand) imposed a number of restrictions on the growth of large retail companies particularly the transnational companies in contrast to a fairly liberal approach to the retail sector followed until the late 1990s. and limits on operating hours. For example. FDI regulation. Merger and acquisition plans are now looked at more critically by the national and European competition authorities.
The above regulations were put in place in different countries basically with a view to balance the conflicts of interests between modern retail. countries in Southeast Asia (Malaysia. Indonesia.
.000 to one million. This is based on a projection of three significant changes that will occur.8 per cent during 2000-03 and a smart pick up in the last four years. a low growth of 4. while the population in the age-group 35-50 years will decline leading to acute shortage of middle and upper management positions. shot up to 6. This meant a substantial rise in disposable income of Indian households since the mid-1990s. the population in the age-group 50-70 years and above in the developed world will explode. Driven by these trends.Future Trends
The Deloitte-Stores (2007) study held that the retail business would slow down definitely over the next decade in developed countries. more than doubled from 157 million to 327 million during the last decade 1995-96 to 2005-06. while it would grow strongly in developing countries. First. it is expected that retailers in developed countries will increasingly move to the markets of developing countries for growth. the population growth in the age-group 20-35 years in these countries will be relatively modest making the hiring of entry-level workers difficult.6 per cent during 1994-00 but the growth slackened to 4. Gross domestic product (GDP) grew by an annual rate of 6. Retail sales (in nominal terms) in the country also followed a similar pattern: a high annual growth of 13.7 per cent per annum during 2003-07. 90. shifting the share of consumer spending further away from goods towards services.3 The data from the Central Statistical Organization (CSO) indicate that the growth of real private final consumption expenditure. in developing countries. there will be plentiful supply of workforce and consumers in the younger age groups. 2003-07 at around 11 per cent.7 per cent per annum during the next three years before the growth remarkably rose to 8.
The growth of the retail trade in India is associated with the growth in the Indian economy. Second. healthcare and maintenance of the elderly. the number of people in the income groups of “aspirers” and the middle class with annual income ranging from Rs. Besides.7 per cent per annum in the last four years . such as travel. which dipped from an average of 5. Third. Based on the Market Information Survey of Households (MISH) of the National Council of Applied Economic Research (NCAER).7 per cent per annum during 1994-00 to 4 per cent per annum during 2000-03. this demographic shift will make the developing countries more dynamic and risk-taking enabling them to grow much faster than the developed world.6 per cent during 1994-00.
93 million during 2000-05 – and the urban sector has also shown an employment growth.06 million. According to CSO estimates. However.47 million in the urban areas.71 million was in the rural sector and 3.77 million in the urban sector.98 million) sectors.88 million was in the rural sector and 10. but only of 0.65 million in the urban sector.Employment and Output in the Retail Sector
Retail is a labour-intensive economic activity. it is interesting to note that the retail employment growth has been quite large in the rural sector – there has been a massive rise in employment in rural retailing of 3. the contribution of retail trade alone to GDP can be estimated to be around 11-12 per cent in 2007-2008. showing an annual employment growth of 2. Economic Census has been carried out for 2005 but its detailed results are yet to be released. This means that an additional employment of 4. on the other hand. The total employment in these enterprises in 1998 was 18. employment in the retail trade has been 35. According to the Economic Census carried out by the CSO in 1998.1 per cent of India‟s GDP in 2006-07.
.4 This constituted about 7. total domestic trade. divided between rural (16. constituted about 15.62 million in 1999-00 with 12. the country had a total of 10.3 per cent of the workforce in the country (459 million). 2000-05. a successive increase in share from 13 per cent of GDP in 1999-00. both wholesale and retail included. Wholesale trade. according to NSSO‟s Employment and Unemployment Survey for 2004-05. Taking into account the fact that retail trade is more labour intensive than wholesale trade.69 million enterprises engaged in retail trade.46 million in the urban areas. of which 5. However. of which only 1.7 per cent per annum. contributed to an employment of 5.54 million of which 7.48 million.15 million in rural areas and much higher at 18. The NSSO data also indicated that retail employment was about 30.51 million during this period.08 million) and urban (18.44 million was added in this sector during the five-year period.23 million were in the rural areas and 5.
rising real estate prices. As a result of shortage of land and rising property prices. and expensive technology are making the retail industry capital intensive. a few levy exit taxes. The current regulatory environment is not very conducive to the growth of modern retail in India. shift of the traditional family structure towards the nuclear family are buttressing the organized retail growth in India. On the other hand. the local municipal government also levies octroi. several large business houses are entering the retail industry under multiple modern retail formats.5 per cent on different products.
. Being considered as a sunrise sector of the economy. The recent growth of the retail industry is already impacting the commercial real estate sector. in some states. owner-managed shops. finding property in commercial markets is becoming difficult. At the macro level factors such as rising disposable income. some states levy entry tax. The domestic organized retail industry is at a nascent stage. dominance of the younger population in spending. for operational efficiencies.Domestic Organized Retailers
The Indian retail sector is highly fragmented. infrastructure constraints. the lobby against modern retail is mounting in recent months from traditional retailers. there is the central sales tax (CST) of 3 per cent on inter-state sales and value added tax (VAT) of 4-12. Besides. On the one hand. The licensing process for organized retail is cumbersome requiring as many as 33 licensing protocols. backward and forward. the advancement of information technology is improving end-to-end business processing by integrating the entire value chain. consisting predominantly of small. Further. Taxes differ from state to state on the movement of goods: for instance. Presently. The Government of India (GOI) prohibits FDI in retail except for single-brand JVs with up to 51 per cent equity share. the land conversion process is complex. urbanization. independent.
(d) Spencer‟s Retail. (iv) pricing different products. product. the model works by: (i) improving sourcing efficiencies.
Modern retail business focuses on maximizing customer footfalls and capturing rising volume and share of the customer wallet. Thus. there are four drivers of modern retail‟s “one-stop shopping model”: price. (iii) operating the end-to-end value chain. (e) ITC: Choupal Sagar and Choupal Fresh. (iii) spur investments in support industries.Nevertheless. and (f) Mother Dairy. (c) Future Group: Pantaloon India Retail Limited (PRIL). and (iv) enhancing the store ambience. Through a balanced regulatory framework and competition policy. and (v) capturing customer footfalls. (ii) improve business process practices. both the traditional format and the modern format can continue to grow. and ambience. (ii) expanding product assortment. The sixth case study is the first co-operative retail model in India. (b) Trent Limited. (iii) differentiating service.
This chapter attempts to summarize the business models of key six established organized retail players in the country. While the competition strategy is largely price focused. eventually closing the gap between the organized and unorganized sectors. The main objective of these case studies is to understand how these firms are: (i) penetrating markets. and (iv) enable the modernization of the fragmented traditional retail industry. service.
Organized retailing will: (i) promote quality employment. (ii) introducing formats and product categories. the macroeconomic landscape indicates that the domestic retail industry has immense scope for the modern as well as traditional retailers to co-exist. These are: (a) Subhiksha.
the supermarket format has been in India for a while. and private labels in staples and general merchandize. and in India typically the cluster approach is more popular. packaged food products. artificial jewelry and watches. bulk purchases enable them to squeeze profit margin from suppliers. and logistics like a separate business unit. The hypermarket format is predominantly the backbone and primary driver of the modern retailers‟ market access strategy. and FMCG goods. modern retail is diverting the shoppers‟ traffic and noise congestion away from residential localities and minimizing the possibility of land encroachment beyond the store area as it is currently being done in the case of traditional retail outlets. and household durables. mobile phones. The format incorporates a larger share of apparel. Further. large retailers are heading for a pyramidal approach by launching several small-sized neighbourhood convenience stores in tandem with a few large hypermarket or department store formats. The product mix in the hypermarket format is typically 60 per cent food and 40 per cent non-food. However.Market Penetration Strategy
The modern retailers follow either a spiral or a cluster approach for retail expansion. alcohol-based beverages and pharmaceutical electronics and household durable product categories encompass a much smaller share.
. in recent years. Another dominant format used by modern retailers includes the department and speciality stores focusing primarily in clothing. The discount and convenience formats largely concentrate on fruit and vegetables and grocery products. of which the share of apparel merchandize is 30 per cent. the local traditional retailers in the nearby locations feel more intense competition. Fruit and vegetables. This strategy is beneficial to large retail firms because they can absorb supply-chain costs across formats. the new crop of modern retailers expanded the product mix incorporating FMCG goods. the firm initially launches in an urban city and then expands towards surrounding tier-1 towns belonging to the same cluster catchment area. cosmetics. In the cluster approach. grocery products in staples. The real estate constraint however is restricting the retailers‟ expansion plans in large formats. This approach is favourable for retailers because they can build a more efficient logistics network and take advantage of cultural similarities among consumers in the same region in order to develop their product offerings. However. Each cluster covers its own region for direct sourcing. Although. distribution. Paradoxically. The new crop of retailers across the country are acquiring or leasing mega sized store spaces in newly constructed malls in an approved market space.
and onions). fruit and seasonal vegetables are higher profit-margin produce: fruit sell at 40 per cent margin on the cost price. gents‟ wear.Product Margin of Retailers
Clearly. Nevertheless. In addition. organized retail firms are strategizing convenience format stores up to 2. clothing margins are higher than 60 per cent typically. the share of product category in modern retail formats is driven by the level of profit margin retailers make and the consumer adoption rate. In the food and grocery section across hypermarket. store branded private labels are becoming popular and fetch up to 12 per cent average margin. Across the fruit and vegetable section.known FMCG products. As a result. and seasonal and exotic vegetables around 30 per cent above the cost price. the customer adoption rate is also low in fresh fruit and vegetables because of its daily need-based requirement and the distance factor. tomatoes. The profit margin in FMCG products is tight because large suppliers control the brand power and store shelf space at local neighbourhood stores. area in order to penetrate the local neighbourhood markets. As regards fresh fruit and vegetables. In the absence of national brands in staple food products. supermarket. however the store level penetration is low compared to other categories for various reasons: (i) high wastage. ft.
. grocery covers around 45 per cent of store space in FMCG and staple food products. An organized retailer gets an average of 30 per cent gross margin or above on MRP across women‟s wear. however. and discount store formats. (ii) lack of temperature-controlled isles. In the case of private labels of store brands. In staples and lesser. and kids‟ wear on branded labels. Modern retail penetration and consumer adoption in the apparel and clothing category is the highest.000 sq. retailers gain 13 per cent profit margin on the cost price . The firms‟ competition strategy is differentiated in the lifestyle segment and cost focused in the value segment. and (iii) low profit margins in bulk produce (potatoes. the net profit gain is between 8 per cent and 10 per cent on an average.
Classifying Indian Retail
(A) Modern Format retailers 1) Supermarkets (Foodworld) 2) Hypermarkets (Big Bazaar) 3) Department Stores (Shoppers Stop) 4) Specialty Chains (Ikea) 5) Company Owned Company Operated (BP) (B) Traditional Format Retailers: 1) Kiranas: Traditional Mom and Pop Stores 2) Kiosks 3) Street Markets 4) Exclusive /Multiple Brand Outlets (C)Large Indian retailers I) Hypermarket 1) Big Bazaar 2) Giants 3) Star II) Department store 1) Lifestyle 2) Pantaloons 3) Piramyds III) Entertainment 1) Fame Adlabs 2) Fun Republic 3) PVR
Although these retail chains account for only a small share of the total market their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products.However in recent years.
HOME FURNITURE & HOUSEHOLD GOODS
Small retailers again dominate this sector. very few large and modern retailers have established specialized stores for these products. in contrast. Traditional outlets stock a limited range of cheap and popular items. super markets account for a small proportion of food sales in India. and changing patterns of consumer tastes and preferences. single-outlet retailers dominate the market . a few retail chains specializing in these products have come into the market. dominate this sector In comparison.
of Indian Retail Sector
There are large number and variety of retailers in the food-retailing sector. Despite the large size of this market. However there is considerable potential for the entry or expansion of specialized retail chains in the country.
HEALTH & BEAUTY PRODUCTS
With growth in income levels. 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 types of retailers. However. with rapid urbanization. it is unlikely that the traditional outlets will survive the test of time. Here also small. who operate small single-outlet businesses mainly using family labour. modern clothing and footwear stores have modern products and attractive displays to lure customers.
CLOTHING & FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate all over India. Indians have started spending more on health and beauty products.
There are specialized retailers for each category of products (books. Critical to these malls is the concept of the anchor. Lifestyle and hypermarkets like Big Bazaar and Giant.
LEISURE & PERSONAL GOODS
Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. as was done in the US. etc. multi-level malls of at least 100. the latest trend in this sector is the increasing focus on providing leisure activities such as multiplexes. Cinemas also often anchor malls. air-conditioned. Globus. An increasing number of retailers are focusing on malls now as opposed to stand-alone developments.00 sq ft.
. eateries etc. music products.) in this sector.DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. Driven by the lucrative tax breaks. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Less crowed and These are enclosed. Today trend is the development of integrated retail cum Entertainment centers or shopping malls. The most popular Indian anchors include Shoppers' Stop. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. the key outlet or store around which other outlets cluster. facilities for kids' entertainment. within the mall premises. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. Good environment in mall. Example for wave and PVR. Customer less the time consumes and more entertainment with his family in malls because they within shopping mall number of retail shop and variety of products and selected the product they want. While the number of shopping malls has seen a massive surge in the recent past in the metros and their suburbs. the old single screen theatres are being divided into three-five smaller screens. years ago. Pantaloon.
. roles and family. Psychological Factors These are internal to an individual and generate forces within that influence her/his purchase behavior. lifestyle. and situational factors. Personal Factors These include those aspects that are unique to a person and influence purchase behavior. Consumer behavior involves study of how people buy. anthropology and economics. perception. social class and reference groups. It also tries to assess the influence on the consumer from groups such as family. Buyer behavior has two aspects: the final purchase activity visible to any observer and the detailed or short decision process that may involve the interplay of a number of complex variables not visible to anyone. Social Factors Social factors refer to forces that other people exert and which affect consumers‟ purchase behavior. what they buy. sociology. sociopsychology. B.Consumer Behavior and Retailing Decisions
Consumer behavior refers to the mental and emotional process and the observable behavior of consumers during searching.
Factors Affecting Consumer Buying Behavior
Consumer buying behavior is influenced by the major three factors: Social Factors Psychological Factors Personal Factors
A. friends. reference groups and society in general. These factors include demographic factors. These social factors can include culture and subculture. It blends the elements from psychology. attitude and personality. purchasing and post consumption of a product or service. The major forces include motives. learning. C. when they buy and why they buy.
Problem Recognition 3. Post purchase Actions
Customer Attributes Affecting Choice of Format
Organised and Unorganised Retail
. Information Search 2. Alternative Evaluation 5. Purchase Action 4.Consumer decision-making process generally involves five stages:
the consumers may not have developed a relationship with any retailer which is strong enough to get into the `evoked retail set' or ii. One more dimension may be to compare brands in the evoked set at retail outlets which also exist in an evoked set of their own. especially in the Indian context where dealers develop a social relationship with consumers. A `brand first' dimension may need feature-based advertising and a `retail outlet first' dimension may require a set of point-ofpurchase (POP) materials and special training to sales personnel to recognize the needs of consumers. Local advertising with the mention of brand names which have already got into the evoked set would enable consumers to be `pulled' to the outlet. brand second 3. refrigerator and audio products retailed through outlets like Vivek and Co. Primary research could be used to discover the specific sequence involved in a situation of this kind. Brand first and outlet second: The brand was probably thought of by the consumers becausei. retail outlet second 2. consumers may think of the retail outlet initially and then the brands (television. the brand has got into the evoked set because of advertising or positive word of mouth.
. could be an example). In certain product categories. Brand and retail outlet simultaneously A consumer wanting to buy a car may collect information on brands and purchase it from a retail outlet based on his perception of price offered or after sales service provided by the outlet (typically. This is highly possible. Brand first. especially where `category killers' exist. Primary research may be required to identify the brands in the evoked set. search for information on brands is followed by retail outlet selection in durables). Retail outlet first. especially in semi-urban and rural areas. which a consumer can follow and they could be: 1. in the South.Retail Outlet Selection and Brand Selection
There are three fundamental patterns.
such as hypermarkets. In developing countries. the unorganized sector dominates the retail business.Organized vs Unorganized Retail
In the developed economies. The share of organized retail varies widely from just one per cent in Pakistan and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia. whereas in developing economies. organized retail is in the range of 75-80 percent of total retail.983 1. As a consequence. Country Total Retail Sales (US$ bn) Share of Organized Retail (%) USA Japan China United Kingdom France Germany India 2. superstores. whereas such forms of retail outlets have only just begun to spread to developing countries in recent years. discount and convenience stores are widely present in the developed world.182 785 475 436 421 322 85 66 20 80 80 80 4
. wholesalers and distributors who carry products from industrial suppliers and agricultural producers to the independent familyowned shops and open markets remain a critical part of the supply chain in these countries. Modern retail formats. supermarkets. the retailing business continues to be dominated by family-run neighbourhood shops and open markets.
Lucy. brief overview is presented in the following section. C(1998) report 271 published applications of DSS in organizations in a survey of DSS applications between period 1988-1994. as complete as possible and easy to communicate with. provided insights into the complex nature of fast fashion buying through case studies with a supermarket. artificial intelligence. Moreover. executive support systems. Liz. Margaret. Little (1989) suggest that DSS must be simple. Bruce. easy to control.1. namely. adaptive. Frederick (1999) describes applicability of DSS in a wide variety of applications of semi-structured and unstructured problems confronting managers and offers categorization of DSS into model-oriented and database oriented DSS. It was found that there appears to be more creative applications of optimization and suggestion models and a decrease of representation models. The buying practices for fast fashion. Eom. yet has received attention in most of the fashion and business press . department store and own brand label.2 LITERATURE OF REVIEW
Scanning the relevant literature on DSS (Decision Support System) applications in organized retailing. increasing its effectiveness. are emerging as powerful DSS tools. group decision support systems. and knowledge-based systems applications are becoming more prevalent in many organizations. Three non-MS/OR tools : viz graphics.The concept of agile supply chains or supply chain theory is explored using in-depth interviews of key informants in the fashion industry with reference to fast fashion requirements. Kim. Decision support systems allow people at many levels to systematically analyze problems before making a decision. S M. Lea-Greenwood. E B. The phenomenon of fast fashion raises questions about traditional approaches to sourcing and buying. It was found that trust was an important factor in the supplier-retailer relationship to
. Barnes. Lee. these systems extend the range and capability of the decision-making process. robust. Somarajan. Daly. Gaynor (2006) stated that the phenomenon of fast fashion in apparel sector is under-researched academically. a combination of global and local suppliers were revealed. In the process. Gallegos. S B. and visual interactive modeling.
the most important attribute mentioned was quality. learning how to manage money and time more efficiently.ensure fast delivery at an agreed quality. It was highlighted that integration of key internal activities and processes to facilitate the speed of buying decisions were necessary.
. 2002) confirms these tendencies. 2001) and others point out the relationship between the type of store and the type of products. Sen (2000) confirms this in the study undertaken in Indian context. He confirms that in the case of hypermarkets. There is a huge untapped market is present in India right now which contains a number of opportunities for retailers. either modern or traditional. Mathew Joseph and Manisha Gupta . educated and demanding. With the increase in number of various formats for shopping like malls. Several investigations emphasize the possible coexistence of different store formats (Chandrasekhar. and also for frozen food. the possibility of buying everything in the same place and the general appearance of the store. hypermarkets are preferred for shopping in general. Indian consumer has different reasons for preferring different store formats. the main motives for preferences. These studies show that. Sen-2000: Store Image and Consumer Shopping Habits: Indian Context: In India. followed by price. Economical and social changes are major contributors for a growing fragmentation of consumers into multiple segments with different values and buying priorities. In this review the author talked about the impact of organized retailing on traditional retailing. groceries and beverages. The study developed by ETIG (Economic Times Intelligence Group. The focus on low prices was gradually replaced by a value for money perspective. Concerning food. in decreasing order are low prices. some empirical studies provide important information about consumer behavior and its responses to the development of organized retail.September 2008: The Indian retail sector is booming and modernizing rapidly in line with India‟s economic growth. The purchase of perishables in hypermarkets is reduced. departmental stores. Consumers have become more pragmatic. while specialized and traditional stores are preferred for fresh products. hypermarkets etc the Indian consumer‟s preferences are changing towards and that‟s the reason foreign investors like the king of retail Wal-Mart also came into the Indian retail ground in collaboration with Bharti.
By 2011. it is not exclusively responsible. The impact of organized retail is also significant on other types of retail. moreover. such as clothing and furniture. 2003: Traditional Retailers Perceptions about Organized Retail As already mentioned. which is heavily influenced by economic growth. stationery goods and household appliances. However. as per "Global Convenience Store Market Analysis". Changing consumer preferences. RNCOS (March 15. 2009/24-7 press releases): Increasing trend of organized retailing will drive the growth of convenience-store industry in the world. remains the major driving force for c-store industry in the Asian region. as other changes (economical. on the food sector.Radhakrishnan. social and cultural ones) have occurred simultaneously.
. in particular. namely toys. it is probable that competition gets more intense in other sectors. organized retail has deeply changed the Indian commercial structure. lifestyle and rising income level. it is possible to verify that the major impact is felt on traditional retail and. Asia remains the fastest growing convenience store market in the world as the major Asian retail markets registered explosive growth in opening up of new convenience store. Concerning the more direct effects of organized retail on different types of commerce.
possible applications in organized retail formats in Apparel Sector.
.3 OBJECTIVES OF THE STUDY
Hence. Know the retail formats and what are the difference between those categories.
3. To study the Structure of Indian Retail Market and the opportunity that Indian market provides. benefits realized and future outlook. Understand the sector of unorganized retails.
2. find out the challenges faced by them and determine what are the measures taken by these retailers to survive in this current scenario.1. To understand practices and usage of retailing in apparel sector .
4. To discuss issues arising out of applications of retailing.
6. To provide a conceptual overview. the objectives of the research study are:
Big Bazaar is part of Future Group.com. that is listed on Indian stock exchanges.2.ft. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels. Brand Factory.1 COMPANY PROFILE
BIG BAZAAR Big Bazaar is a chain of hypermarket in India. KB's Fair Price to name a few and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited(BSE: 523574 523574). general merchandise. of retail space. which also owns the Central Hypermarket. Currently there are 214 stores across 90 cities and towns in India covering around 16 million sq. HomeTown. furniture. eZONE. books. fast food and leisure and entertainment sections. Pantaloons. futurebazaar. food products. electronics.
India Department store Rs 6000 crores (in 2011) (Big Bazaar and Food Bazaar combined)
Employees Parent Divisions Website
36000 people Future Group 100 Big Bazaar
. Maharashtra.Type Industry Founded Headquarters Products Revenue
Public Retailing 2001 Mumbai.
there are now 152 Big Bazaar stores in 90 cities and towns across India. over the years Big Bazaar has included a wide range of products and service offerings under their retail chain. accessory and general merchandise. Big Bazaar has come up a new logo with a new tag line: „Naye India Ka Bazaar‟. Indore. The current formats includes Big Bazaar. Chennai The stores are customized to provide the feel of mandis and melas while offering the modern retail features like Quality.
. in 2011. a local store in T. 2001 with the opening of its first four stores in Calcutta. Though Big Bazaar was launched purely as a fashion format including apparel. Nagar. As the modern Indian family's favorite retail store. Food Bazaar. replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'. Bangalore and Hyderabad in 22 days. Electronic Bazaar and Furniture Bazaar. Within a span of ten years. Big Bazaar is popularly known as the "Indian Walmart". Choice and Convenience. cosmetics. The inspiration behind this entire retail format was from Saravana Stores. Big Bazaar was started by Kishore Biyani.Big Bazaar was launched in September. the Group CEO and Managing Director of Pantaloon Retail India. On successful completion of ten years in Indian retail industry.
Future Group emerged as a retail destination for consumers across all classes in the Indian society. Change and Confidence among the entire population is leading to rise in Consumption. Big Bazaar has divided India into three segments: India one: Consuming class which includes upper middle and lower middle class (14% of India's population). household helps. Aadhaar Wholesale is aimed at reaching the population in India three segment. washermen. through better employment and income which in turn is creating value to the agricultural products across the country. India two: Serving class which includes people like drivers. While Big Bazaar is targeted at the population across India one and India two segments. etc. office peons.
.STRATEGY 3-C Theory
According to Kishore Biyani's 3-C theory. (55% of India's population) and India three: Struggling class (remaining 31% of India's population). liftmen. With this.
.000 SKUs in a wide range of categories led primarily by fashion and food products.000 square feet (4.000 m2) and 160. While the larger metropolises have Big Bazaar Family centres measuring between 75.000 m2).000 square feet (15.600 m2) of retail space.OPERATIONS
Most Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls.800 m2). and offers free shipping on some of their products. Big Bazaar Express stores in smaller towns measure around 30.000 square feet (7. A typical Big Bazaar is spread across around 50.000 square feet (2. Food Bazaar. Big Bazaar has the facility to purchase products online through its official web page. These stores offer over 200. a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations.
Big Bazaar introduced the concept of "Sabse Sasta Din". The idea was to simply create a day in a year that truly belonged to Big Bazaar. the aim of the concept is "to give home makers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day". This was launched on January 26. Electronic Bazaar and Furniture Bazaar .catering to the entire needs of a consumer. According to the chain. The Great Exchange Offer On February 12. Over the years it has grown into a 6 days biannual campaign. through with the customers can exchange their old goods in for Big Bazaar coupons.
. when least number of customers are observed. Later. 2006 and the result was exceptional that police had to come in to control the mammoth crowd. Food Bazaar. Sabse Sasta Din With a desire to achieve sales of Rs 26 Crore in a one single day. It has attractive offers in all its value formats such as Big Bazaar. 2009 Big Bazaar launched "The Great Exchange Offer". The concept was such a huge hit that the offer was increased from one day to three days in 2009 (24 to 26 Jan) and to five days in 2011 (22-26 Jan). It was mainly to draw customers to the stores on Wednesdays. consumers can redeem these coupons for brand new goods across the nation. Maha Bachat Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers across all Big Bazaar stores.INNOVATIOS
Wednesday Bazaar Big Bazaar introduced the Wednesday Bazaar concept and promoted it as “Hafte Ka Sabse Sasta Din”.
a part of the RPG Group.in
Foodworld. previously known as Spencer's Daily. Currently it operates 73 stores in Bangalore. India 67 FoodWorld. is a chain of supermarket stores. It was started in May 1996 as a division of Spencer & Co. Coimbatore & Chennai.
Type Industry Founded Headquarters Number of locations Website
Subsidiary Retail 1996 Bangalore. In August 1999 it became a separate company. Hyderabad. Karnataka.
Foodworld Superstore is the company's Large store format. Along with the extensive grocery range and bakery products.
Foodworld Gourmet store
Foodworld Gourmet store is a new concept store with 2. currently only one store exists in the city of Hyderabad. The Store caters to customers seeking a selection of gourmet products.
Foodworld Supermaket store Foodworld Gourmet store Foodworld Superstore Foodworld Express store
Foodworld Supermaket store
FoodWorld Supermaket store is the Main format store with 3000-5000 sq ft size.000 sq ft (1.Store Formats
The FoodWorld brand currently operates in four store formats. It Operates as a regular supermarket. Spanning over 15.400 m2). India. the store also offers for sale common household goods and baby products (including toys and clothes).800 sq ft (260 m2) size in Bangalore. Available in-store are produce and a selection of international food and beverage items sourced both from domestic and international suppliers.
Foodworld Express store
Foodworld Express is a convenience store and mini-marts with 1000-1500 sq ft. snacks. bakery. It carries basic Fresh range offers. wider ranges in drinks.
Supermarket/Express Gourmet Store Superstore Total
1 0 0 0 1 0 1 1 0 1 40 21 7 5 73
Bangalore 39 Hyderabad 20 Chennai 6
Coimbatore 5 Total 70
Locations and store numbers
The Company has a presence in the following cities. confectionery and impulse products.
„always in-stock‟ status and assured savings. Chhattisgarh. Uttar Pradesh.
. Uttarakhand. warm and caring service. New Delhi. The assortment also includes personal care products. Jammu & Kashmir.EASYDAY
easyday aims at making the everyday life of the homemaker a lot easier in many small ways and enabling her to save money on an everyday basis. With the right assortment. Haryana. Rajasthan. Madhya Pradesh.
Currently. stationery. the easyday stores cater to over 60000 customers daily through over 170 stores across Punjab.
The easyday stores are intended to be the most trusted neighborhood stores and to cater primarily to the daily and weekly Food and Grocery needs of our customers. our stores are aimed at becoming a one-stop shop for everyday needs and empowering customers and their families to live a better life. household articles and dairy and meat products. Himachal Pradesh and Karnataka.
cosmetics. Spread over 60. grocery and general merchandise. Items range from apparels for men. including staples. biscuits. oils. believes organised retail has the potential to greatly contribute to India‟s economic growth. tablets and cameras is also available in this format. compact hypermarket stores called easyday Market and hyper market called easyday Hyper. meat & poultry and fresh produce. The wide assortment of goods includes personal care products. home ware. refrigerators. small appliances. chocolate & candy. mobile phones and stationery.Bharti Retail. easyday Market provide customers the choice of 30. namkeens. a great shopping experience and consistent availability. Easyday Markets and Easyday Hyper promise “Sabse Kam Daam. as well as daily-need groceries. religious needs. stationery. ethnic sweets. ready to fry. within and outside the store. spices. Live Better‟. They bring together wide range of relevant goods. all under one roof. wholly-owned subsidiary of Bharti Enterprises. Har Din” or everyday low prices offer for their extensive product mix. frozen vegetables & pickles. mobile phones. bakery & dairy products. hosiery items. one of India‟s leading business groups.These stores provide consumers a wide assortment of quality products at everyday low prices. laptops. a wide assortment of 3D & LED televisions. Bharti Retail is committed to make a positive impact on the lives of its customers across India. this easyday Hyper store offers over 475 new items across categories such as jams & spreads. frozen mutton.000 products across 250 categories that bring together a combination of the familiar and the innovative – all under one roof. Bharti Retail‟s goal is to establish a pan-India footprint and become the most-preferred retailer of India.
.000 sq ft. flour. In addition. meat. home furnishings. women and kids. washing machines. Easyday. Driven by its mission to „Enable India. processed foods. poultry and fish and offer fresh fruits and vegetables. easyday Hyper offers customers quality products at everyday low price. high quality products and great in-store experience and service – all under one roof. household articles. easyday stores are one-stop shops that cater to every family‟s day-to-day needs. a wide range of kids‟ toys. Bharti Retail operates neighbourhood stores called easyday. These stores also have live bakery. It also aims to provide employment to thousands of youth with diverse backgrounds.
wherein a permanent BAR setup at a specified location caters to hiring requirements of the hub location and nearby smaller locations.000 people by 2015. Himachal Pradesh. The first easyday store opened in Ludhiana and easyday market in Jalandhar in 2008.Pan-India Footprint. An equal-opportunity employer. Karnataka and Andhra Pradesh. the Company has established the Bharti Academy of Retail (BAR) to provide basic retail training free of cost. BAR sources candidates across categories. Uttarakhand. Talent Pool Creation To provide multi-faceted career opportunities for India‟s youth. This would include ex-servicemen. trains them on basics of retailing and recruits them for the various format of stores.
. there are over 186 stores in cities across Punjab. A temporary BAR setup is operational only for the period of hiring and uses the services of the staff at the Hub location for counseling and training. Rajasthan. The stores comprise about 170 easyday Supermarkets and over 18 easyday Markets and Hyper. New Delhi. BAR is the pre-employment trainingcum-hiring arm of Bharti Retail that ensures a hiring pool for Store Associates positions. Bharti Retail employs people from diverse backgrounds with different academic qualifications. categorized as spoke locations. and assures consistent quality of recruitment and provides on-time hiring to stores. women and the differently-abled. Madhya Pradesh. Bharti Retail plans to employ 60. BAR‟s unique training curriculum with a two-day module (two days‟ Classroom Training followed by Certification and Selection) is based on observation and experience and designed to equip people with the knowledge and expertise required to work in Bharti Retail Stores. Uttar Pradesh. Jammu & Kashmir. Haryana. gender and age. Presently. In order to create a retail industry talent pool. BAR follows the Hub-and-Spoke model. work experience. Chhattisgarh.
Jharkhand. Madhya Pradesh and Jammu&Kashmir. is all set to become one of India‟s leading retailers. At easyday. has grown across the north with an extensive presence in Punjab. The easyday brand started with the launch of the first easyday store in Ludhiana in April 2008. easyday Market and easyday Hyper. Home Furnishings. The easyday brand is built around the mission of saving money for our customers by offering quality products at the lowest prices in the market. Driven by its success across these regions. Haryana and the NCR Delhi region.
Through our three formats easyday. which means that our customers can be assured of savings every time they visit our stores.Overview
With over 186 stores successfully operating across 12 states. Electronics. the brand has now spread to other regions including UP. Rajasthan. we cater to households‟ shopping needs across Food & Grocery.
More recently. Uttarakhand. we aim to provide significant savings to our customers by being low priced everyday. the retail brand of Bharti Retail Ltd. Consumer durables and Clothing. easyday.
. Himachal Pradesh. easyday has ventured into the South and West with stores in Karnataka and Mumbai.
tablets and cameras. religious needs. Haryana and Karnataka. flour. Chhattisgarh. mobile phones. ethnic sweets. Uttar Pradesh.000 products across 250 categories to ensure that our customers always find the products they are looking for. They bring together a wide range of goods. Rajasthan. easyday Hyper stores offer a destination shopping experience that caters to all household needs of every family. frozen vegetables & pickles. our promise is to bring a world class shopping experience within everyone‟s reach. With our relevant assortment of quality products at everyday low prices.
Each of our easyday Market stores prides itself on knowing exactly what our customers want and carries assortment that delivers not just on value but also delights them with unparalleled quality.Easyday Market
The easyday Market brand is aimed at celebrating the homemaker and to cater to the complete needs of her family across categories like Food & Grocery. Electrical Appliances and Clothing. Kitchen Accessories. washing machines. The product assortment includes jams & spreads. ready to fry. easyday Market caters to over 16000 customers daily through its 17 stores across Punjab. Additionally. frozen mutton. meat. customer service in a clean. oils.
. Maharashtra. high quality products and great in-store experience & service all under one roof. chocolate & candy. refrigerators. and hygienic ambience and convenient format adding to a great shopping experience. Home Furnishings. The easyday Market stores carry over 30. NCR Delhi. laptops. namkeens. These stores also have live bakery. biscuits.
Currently. poultry and fish and the freshest of fruits and vegetables. the store offers a wide assortment of 3D & LED televisions. the first of the easyday Hyper has opened in Mumbai. Madhya Pradesh. spices.
2012 Eight easyday Market and easyday stores located in Patiala owned
easyday Store Employees & Customers Donate 86 Units of Blood For Amritsar Citizens Blood Donation camp organised by easyday stores in association with Indian Red Cross Society 86 blood units donated by 54 stores employees and 32 customers Amritsar. 7 February.000 sq.
easyday Hyper: Bharti Retail Launches New Store Format Enters Maharashtra to help Mumbaikars save money with everyday low prices on quality products. 2012 Fifteen easyday Market and easyday stores located in Amritsar. owned
easyday Store Employees & Customers Donate 78 Units of Blood For Jalandhar Citizens Blood Donation camp organised by easyday stores in association with Indian Red Cross Society 78 blood units donated by 61 stores employees and 17 customers Jalandhar. ft Offers over 20.What's New
easyday Store Employees & Customers Donate 90 Units of Blood For Patiala Citizens Blood Donation camp organised by easyday stores in association with Indian Red Cross Society 90 blood units donated by 48 stores employees and 42 customers Patiala.
Be a Part of ‘Go Recycle’ First of its kind initiative in India targeted to recycle plastic waste and educate consumers on responsible consumption. 7 February. 7 February.
. 2012 Thirteen easyday Market and easyday stores located in Jalandhar owned.000 quality products at everyday low price.Store spread over 60.
This facility is currently available at select easyday stores.free experience.
Mobile Payment easyday is the first retailer to launch a mobile payment facility in India. we are committed to saving money for our customers every day.Financial Services
At easyday. our Customers have the facility to walk into any easyday store and receive money transfers from abroad. customers can also avail a 1% extra savings on any spends outside easyday. We offer safer and longer working hours as compared to any other Moneygram outlets to provide our customers with a convenient and stress. Moneygram: With Moneygram. and the various financial products and services on offer have been created to cater to our customers‟ diverse requirements. This feature provides our customers with the option of paying their in-store bills through mobile wallets without tendering any actual physical cash. The card offers a 2% extra savings on spends in easyday stores in addition to the existing low prices across categories.
The easyday Kotak Credit card combines the best features of a credit card and an In-store card to give you unmatched savings across your shopping needs. Furthermore.
breakage and distribution of physical gifts.Easyday Gift Card easyday Gift card is a simple and convenient way of gifting that allows our customers to redeem the balance on the card against purchases at our stores. reloaded with money and redeemed multiple times.000 easyday products across 250 categories Load any denomination from Rs 500 to Rs 5000 Reuse the card any number of times across any store with no service or annual Fee
. It also takes away burdens related to logistics. wrapping. This is a very smart way of gifting for our customers. our gift card can be reused. Easyday Gift card helps our customers to
Choose their own gift from over 30. Unlike a paper gift card.
Details of Work Done
For the study of available literature in the library and of some major web portals the understanding of the subject . Transnational corporations are also seeking to come to India and set up retail chains in collabouration with big Indian companies. it is expected to increase to 5%. How the reduce the cost? How they provide different product under one roof? How they face the challenges of different retails company in the market and give best quality to ultimate customer? By the deeply study of the majors retail company like Big Bazaar.3. Easy Day. However. and usage of technology. on the one hand and. is contributing 3% of total retail sector and is still evolving. Retail sector forms 10-11% of GDP1. in the market I improve my understanding. enabling better access to markets to producers (including farmers and small producers) and enabling higher prices. It has also been argued that growth of organized retailing will yield efficiencies in the supply chain.1 Details of Work Done
As the taste of consumers is changing in the present era with the changing of income and life style of people. For the understanding of the people along with the nature of both the sectors. lower prices to consumers. employment opportunity.
. Concerns have been raised that the growth of organized retailing may have an adverse impact on retailers in the unorganized sector. opinions are divided on the impact of the growth of organized retail in the country. I how the retails company work and how the organize there working environment. Reliance Freash etc. Wall Mart. In India. It is alluring in terms of investment. However. Impact of organized retailers on unorganized retailers may somehow affect the unorganized sector. organised retailing. on the other. by 2010.
Retailing is in a rapid state of change due to speedy technological developments, changing competitive positions, varying consumer behaviour as well as their expectations and liberalized regulatory environment. In such a scenario, information is crucial to plan and control profitable retail businesses and it can be an important source of competitive advantage so long as it is affordable and readily available. DSS (Decision Support System) which provide timely and accurate information can be viewed as an integrated entity providing management with the tools and information to assist their decision making. Indian economy, with one of the handsome economic growth rate in the world, is also witnessing boom in India‟s retail industry. Although the recent recession slowed down the growth for some time, it still has great prospects. To show the extent of its scope consider this – penetration of organized retail in US is more than 85% where as in India it is just about more than 8%. The Indian retail industry is divided into unorganized sector and the organized sector. Organized sector consists of the retail shops which are registered, licensed (where applicable) and pay sales and income taxes. It also consists of big malls which provide a jubilant shopping experience with all the glitz and glamour. Unorganized sector typically consists of small grocery stores, more popularly known as kirana stores, hand cart vendors, street vendors, door-to-door direct sales vendors, bargain shops etc. Though in urban parts of the country, there are many retail shops and malls, a big chunk of contribution towards GDP from the entire retail industry still predominantly comes from the unorganized sector. Almost 93% of retail is manned by unorganized sector. Efforts are to bring the contribution to 9-10% by organized sector. The retail industry also happens to be the largest source of employment after agriculture.
The penetration of organized retail will happen much faster in the coming decade, even in tier 2 and tier 3 cities, because of the changing demographics of our population and a healthy rate of economic growth. With good underlying economic growth, increase in disposable income, increased awareness due to penetration of broadband and mobile devices with internet accessibility, the demand for consumer goods will rise. With better systems and processes in place, all this is bound to assist in increasing the penetration of the organized retail sector in India. According to report by McKinsey & Co., the organized retail market in India is expected to grow to 14-18% by 2015 of the total retail market in India from 8% in 2008. Its value is estimated to be around US$450 billion by 2015. The BMI India Retail Report for the first quarter of 2011 forecasts that the total retail sales will grow to US$ 674.37 billion by 2014, from US$ 392.63 billion in 2011. The growing wealth with the middle-class in India, the population size and the big percentage of population being in 30s, makes immense possibilities for entrepreneurial growth in the retail sector. Some of the fastest growing segments of this industry are food & beverages, electronics and apparels. The consumer electronics segment is expected to grow at about 55% between 2011-2014, with most of the growth driven by demand for TVs, mobile devices and laptops and desktops. With changing lifestyles and habits, food segment is also expected to double to US$ 150 billion by 2025.
SAMPLE SIZE METHOD OF SAMPLING AREA OF WORK PARAMETER OF STUDY METHODS OF DATA COLLECTION TOOLS LIMITATIONS
Research Period: Research work is only carried for 1 week.RESEARCH METHODOLOGY
Sample Size and Design: A sample of 4 stores was taken on the basis of convenience. 15
Method of Sampling:
There are total of 13 questions that aim to cover all aspects of the best practices in field of marketing in retail sectors and exploratory study of the organized and unorganized retail sectors. It includes multiple choice questions (internal scale).
Area of work:
After the detailed study. National Retail federation Report. The data has been collected directly from respondent with the help of structured
. Magazines. revenue per customer and value of the stock in the various departments. This project is based on information collected from primary sources. without demonstrating that some relationship exists between variables. Data Collection: The data. In collecting requisite data and information regarding the topic selected. is divided into 2 bases:Primary Source: The primary data Industry”. The data had been used to cover various aspects like inter-departmental customer flows. which is collected for the purpose of study. The questions included were close ended with Ordinal-polytomous response scale.
The study is based on descriptive research design because the data were collected to reveal accurate descriptions of variables related to the decisions being faced. For the purpose of present study a related sample of stores were selected on the basis of convenience. an attempt has been made to present comprehensive analysis of four major organised retailers. and Big Bazaar of Dehradun and collected the data. SECONDARY DATA Secondary data was collected through websites.
This work is carried out through self-administered questionnaires. GDP Report.Methods of data collection:
PRIMARY DATA This chapter describes the methodology of the study. Life Style. we went to the Vishal Mega Mart.
questionnaires. Efficient supply chain: The robust sourcing and distribution network likely to be set in place by modern trade would result in a more efficient supply chain management -reduced lead times. better shopping experience because of improved store ambience and increased browseability. upgrade their stores and enhance value-added services to retain and strengthen relationships with their customers. Greater job creation: Organized retail will create employment at several levels. enhanced service. where the contribution of organized retail will be not only in the greater number of the people employed but also in making jobs that were otherwise considered “menial”. Small retailers account for the bulk of retail sales today and will remain a significant force in the future since growing consumption will itself warrant the growth of both organized and traditional retail. the advent of organized retail in India was both welcome and inevitable for the Indian economy. The most significant increase will be in front-end jobs for retail staff. In their opinion. more dignified. and quality levels. fewer stock outs. Traditional retailers will also innovate. manufacturers felt that the impact of modern retail will be positive. giving even those without higher educational qualifications a decent livelihood. lower prices. and consistent product quality. Survival of traditional retail: Manufacturers believe that both small and large retailers would continue to co-exist in India. reduced wastage. thereby. Some of the reasons cited for this positive impact were: Benefits for consumers: Organized retail will offer consumers several benefits. At a macro level.
. According to them. such as wider product choice more in line with consumer needs. the benefits that organized retail would bring by far outweigh the negative effects of inadequate retail services in a country like India.
Secondary Source: T
references from Library and various journals on retail industry. ANALYSIS AND FINDINGS 1.
they will be able to effect improvements in products and brands and “go to market” faster. subsequently. Organized retail will aid development of new FMCG categories. Initially. however. because of increased consumption created by the consumers‟ exposures to categories and brands at modern retail formats. Manufacturers anticipate several benefits. processes. categories that have a high degree of consumer involvement and those which benefit from consumer touch and feel – like personal care products and eatables. Manufacturers felt that the advent of modern retail will stimulate their growth as well. most of organized retail is operating through the traditional supply chain with its multiplicity of intermediaries. packaging. manufacturers will be able to supply directly to these retailers. since modern retail facilitates faster customer feedback. Manufacturers felt that. The likely direct impact on the business of manufacturers. and.
. Organized retail will fuel growth and build efficiencies. They also felt that the need to service large buyers demanding lower prices and greater efficiencies will force large manufacturers to invest in people. Manufacturers anticipate that organized retail will help in the development of new product categories – particularly higher priced categories. currently. The benefits that organized retail would bring in terms of creating higher demand for their brands and greater efficiency in the distribution system would need to be weighed against the pressures on prices. 3. credit. The response of manufacturers interviewed to the likely impact of growth of organized retail on their own businesses was. will not be entirely positive. Further. and the threat of competition from private label brands. margins. more guarded and less positive. Elimination of intermediaries would also bring in more transparency in the flow of operations. this will be because of increased demand created by organized retailers in order to fill retail shelf space. Organized retail’s sourcing and distribution network will benefit manufacturers.2. and technology to streamline their own production and distribution operations. etc. This would help reduce transaction costs on logistics. commissions. As organized retail grows and large retailers have their distribution centres (DC) and IT infrastructure in place. on the whole.
. Survey is a time consuming process but the time to collect the data for research was very less.
They can be pointed as:
Sample size restricted to 100 only which was very less according total population. The responses given by respondents were not always accurate because the respondents gave the response according to their understanding. ·Sometimes the respondents are not willing to fill the questionnaire and hence the resultant may not be correct.LIMITATIONS
Every report has its pros and cons so mine also have some limitations.
enhancing their retail presence and collabourating with traditional retailers.
. and intensely competitive rivals.CONCLUSION At a macro level. directly or indirectly. The retail revolution. mainly on account of a gradual increase in the disposable incomes of the middle and upper-middle class households. Present systems. And. retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores. are more guarded in their assessment of the likely impact of organized retail on their own businesses. the overall picture that emerges from interviews with large manufacturers is largely positive regarding the likely impact of organized retail in India. greater availability and penetration of a variety of consumer goods into the interiors of the country. The country is witnessing a period of boom in retail trade. The past 4-5 years have seen increasing activity in retailing. more so the end consumers -. The robust sourcing and distribution network of large retailers would certainly help make the supply chain more efficient. exposure to media. They are gearing up to counter these pressures by strengthening their own brands. is also bringing in slow changes in lifestyle in the smaller towns of India. Manufacturers. More and more corporate houses including large real estate companies are coming into the retail business. have all resulted in narrowing down the spending differences between the consumers of larger metros and those of smaller towns. more investments will keep flow in. apart from bringing in sweeping.in terms of better product choices. Manufacturers believe that organized retail would benefit society at large. And though the retailers will have to face increasingly demanding customers. They anticipate that they will be subject to price and competitive pressures as organized retail grows in importance. IT and processes will improve because of investments in infrastructure that are likely to be made by organized retailers. furnishing stores and chemist shops.. Increase in literacy. And the share of organized sector will grow rapidly. however. in the form of mall and shopping center builders and managers. More employment opportunities will be generated. positive changes in the quality of life in the metros and bigger towns. various business houses have already planned for few investments in the coming 2-3 years.
Big retail stores are running customer loyalty programmes which has increased profits and no. The shopping malls & retail outlets are targeting to middle class customers because the purchasing power of this class is rapidly growing as well as the class is also growing. The main strength of most of the retail outlets are providing attractive offers to attract customers. The young generation is fashion & show-off conscious so retail outlets are mainly focused on them. Most of the family wants to purchase from big showrooms and malls because there are no bargaining system so the have a trust that there is no cheating.
.Lastly I want to conclude my project in some points The customers are attracting towards shopping malls & retail outlets. of customers.
I am a student of Uttaranchal Institute Of Technology. I request you to spare a
. Dehradun and am working on a project “Impact of Organised Retailers on Unorganised Retailers because of changing consumer preferences towards Organised retailing from unorganised retailing”.
LESS THAN GRADUATION c. >40
B) Gender wise distribution: a. Wholesaler c. A) Age wise distribution: a. BETWEEN Rs 30.001 TO 50. 30-39 d. FEMALE C) Education wise distribution: a.000 c. POST GRADUATION e.000 d.000 TO 40.000
1) Which type of place do you visit frequently for your shopping needs? a. MORE THAN Rs 50. MALE b. GRADUATION d. this questionnaire. Local Stores
. Supermarket b. LESS THAN Rs 20. BETWEEN Rs 40. <20 b. 20-29 c.000 b. needed for the project assigned to me as a part of my curriculum. PROFESIONAL QUALIFICATION D) Income wise distribution: a.while to help fill. HIGH SCHOOL b.
Local stores 4) What are the prime factors for shopping in malls? a. Single brand store b. Discounts d. Multi brand store c. Variety in product. Serviceability c. Customer service
. Mode of payment e. Reasonable price c. Local Big Retail Store 3) Which one from malls/ Local Stores (kirana store) is more convenient for all your shopping needs ? a. For grocery items only c. All 5) What are the prime factors for shopping in kirana stores? a. Emergency buying b. Availability of size d.2) From where would you prefer to buy products? a. Availability of range b. Serviceability
6) What influences your buying selections? a. Factory outlets d. b. Malls b. Discounts d.
Discount Mailers c. 1-3 month c. Brand name 7) What do you look for in a product during your purchase? a. To a large extent b. Price b. <1 month b. To the same extent
. 1 year 10) What more fascinates you at shopping in malls? a. Brand Name c.e. Lucky draw offer 11) How far growth of the organized retailing has motivated to shift from unorganized to organized retail shop? a. During Sale b. Variety available 8) When do you prefer to shop Most in Store? a. When required 9) How frequently you visit the Store (wherever you go for the shopping)? a. During Fresh season stock c. Membership Card b. Customer Service d. Parking Facility d. During Discount d. 1-6 month d.
To a little extent e.c. To a considerable extent d. Not all 12) Presence of organized retailers in the market has intensified the competition for unorganized retailers to reduce the margin? a) May be b) No c) Yes d) Never 13) Availability of branded and private level brand at organized retail store has posed a great threat to unorganized retail? a) May be b) No c) Yes d) Never