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4th JULY 10th JULY

Evol Evolution of Indian Retail Industry etail


Indian Retail Industry is standing at its point of inflexion waiting for the inflexion; boom to take place. The inception of the retail industry dates back to time where retail stores were found in the village fairs, melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail sector took place with the establishment of convenience retail place stores in the locality. With the government intervention the retail intervention, industry in India took a new shape. Outlets for Public Distribution System, cooperative stores and Khadi stores were set up. These retail stores demanded low investments tores for its establishment. The retail industry in India gathered a new dimension with the setting up of the different international brand outlets, hyper or super markets, shopping malls and departmental stores. yper artmental

Key Players in the Indian Retail Sector:


The untapped scope of retailing has attracted superstores like Wal Mart into India, leaving behind Wal-Mart the Kiranas that had been serving us for years. Such companies are basically IT based. The other ing important participants in the Indian retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe mportant Coffee Day, Landmark, Khadims, Crossword to name a few. andmark, Crossword,

Retailing in India: A forecast


Future of organized retail in India looks pretty bright. According to the Union Minister of Commerce & Industry, Shri Kamal Nath, the organized retail sector is expected to grow to a value of `2,00,000 crore (US$45 billion) and may generate 10 to 15 million jobs in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly with retailing and the rest 10 million people may be gainfully employed in related sectors that will be pulled up through the strong forward and backward linkage effects.

The India Retail Industry: Who's Who?


Big Bazaar- Big Bazaar is a chain of department stores owned by the
Pantaloon Group (Future Group) and headed by Kishore Biyani and ) headquartered at Mumbai. It offers all types of household items such as home furnishing, utensils, fash fashion products etc. It has a grocery department and vegetable section known as the Food Bazaar and its online shopping site is known as FutureBazaar.com. The real estate fund management company promoted by the Future Group expects to develop more than 50 projects across India covering a combined area of more than 16 million jects sq. ft.

Bharti Retail- A wholly owned s subsidiary of Bharti Enterprises has announced two joint
ventures (JV) with the international retailing behemoth, Wal Mart. The first JV ensures cash and Wal-Mart. carry business, in which 100 percent FDI is permitted and it can sell only to retailers and distributors. The second JV concerns the franchise arrangement. Sunil Mittal Chairman of Mittal, Bharti Group assured that the ventures will use low prices every day and best practices for the satisfaction of the customer. Processed food and vegetables will be delivered by Bharti Field Fresh, Bharti's JV with Rothschild. Bharti Retail aims to foray every city with a population exceeding 1 million. It has plans to come up with an investment of more than $2 billion in convenience stores, supermarkets and hypermarkets spread over an aggregate 10 million sq. ft.

Reliance Retail- Reliance claimed last year to start a retail chain


that will be unique in size and spread, will lead to the welfare of one and all ranging from Indian farmers, manufacturers and ultimately consumers. It is known as Reliance Retail Ltd (RRL) and Ltd. is a 100 percent subsidiary of Reliance industries Ltd (RIL). y Ltd. Reliance Retail has plans to open 4,000 outlets across 1,500 towns for an investment of $5.6

DLF Shopping Malls DLF Retail Developers Ltd. is one of the part of the DLF Group. MallsBesides being India's largest real estate developer, DLF is also of the leaders in estate innovating shopping malls in India. It caught public eye when it launched the 2 2, 50,000 sq ft. shopping mall in Gurgaon. It has brought a dramatic change in the lifestyles and entertainment with its City Centres and DT Cinemas. DLF has plans to invest `2000-3000 crore in all the emerging areas from metros to A class cities in the 3000 next two years. Till last year the company was involved in building 18 malls out of ars. which 10 were in the NCR region. Future plans of DLF involve opening up of 100 malls (specialty malls, big box retailing and integrated malls) across 60 cities in next 8 10 years. 8-10

E-Retailing in India Retailing


E-retailing, most commonly known as e retailing, e-tailing is nothing but shopping through the internet and other media forms. There are many things that are common between direct retail stores and online retail stores. Both have the process of bi billing of the customers and have to maintain a relationship with the suppliers.
Bottlenecks Faced By E-Retailing in India Retailing Problems with the Payment System

People in India are not used to the online shopping system and moreover the online payment system through the credit card is also totally alien to them. Most of them do not avail of the ugh transaction facilities offered by the credit cards. They are also dubious regarding the online payment system through the credit cards. Hence different payment options sho Hence, should be made available to them like the credit card, cash on delivery and net banking to give them further assurance. Problems with Shipping

The customers using the online shopping channel should be assured that the products that they have ordered would reach them in due time. For this the retail companies have resorted to ach this, private guaranteed courier services as compared to postal services. Offline presence

The customers should be assured that the online retailers are not only available online but offline as well. This gives them the psychological comfort that these companies can be relied upon. Products offered at discounted rates

The online retailers save on the cost of building and employee salaries. Some part of this benefit should also be enjoyed by the online customers by a reduction in the price of the product. The e customers should be conveyed this message that they are getting the products at a discounted price.

Language Problem

Most internet retail shops use English as their mode of communicatio communication. English may not be comprehensible to the majority of the Indian population. To increase the customer base, content in the online retail shops should be provided in local language. Another reason why the concept of e retailing or online retailing has not e-retailing gained prominence in India is that the Indians prefer to touch the products physically before buying them. This facility is provided through the multi multibrand outlets, not available online. Studies have revealed the preferences of the customers towards the traditional shopping methods. Hence the retailer Hence, online should first make it a point to spot the potential customers and accordingly plan out the product. If the customers are more open to online shopping, then nothing can be more beneficial. They save the time and effort to visit, departmental stores, shopping malls, etc. products can be e delivered by a click of the mouse. Another problem is that the retail industry is standing on its point of inflexion and considering its infant stage, it would take time for the new concept of e e-retailing to take off. Some online retailing sites in India

E-Bay is heading the race of online retailers. In this race it has become very difficult to determine Bay the online retail store that makes the products available at convenient and cheap rates. From this very difficulty has cropped up comparison sites. Comparison is done on the basis of an index Comparison which is constructed from the data available from different shopping sites. The bechna.com and the ultop.com are such sites though many more sites are entering this zone. The comparison sites not only help to choose the online sites that would be providing the best deal but also offline as well. Sites like Rediff product search, Compareindia.com have constructed ndia.com the data that is taken from the conventional local retai ers. These sites help the customer in retailers. finding out the local retail store that will best suit his purpose. Future of E-retailing in India retailing

There are divergent views on the future of e retailing in India. Some experts are of the opinion e-retailing that the giant, big brand retailers would dominate the small ones due to their wider investment their capacities. It would be next to impossible for the small retailers and the Kiranas to prove their iranas existence in the battlefield of online retailing. Another viewpoint is that there would be an exponential growth in the online retailing business in India.

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