You are on page 1of 18

Fashion Retail Management

14 Session @ 3.0 Hrs. Per Session

Anchor :SUSHIL RATURI ,ASSOCIATE PROF. DEPT. OF FASHION MANAGEMENT STUDIES NIFT - MUMBAI

Retailing
Derived from French word RETAILLIER RE+TAILLIER =RE+CUT Historically it was viewed as sale of goods to consumers through shops Retailers are the final business in a distribution channel that link manufacturer to the consumer In modern days it is viewed as sale of tangibles and intangibles to the consumer through brick and mortar format as well non brick and mortar format. Retailing does not have to include a store Phone orders , direct selling , web transaction and sale through vending machine all are retailing Retail is the biggest industry in the world with sales of $ 10 trillion. 25 of the top 50 Fortune 500 companies are retail.

Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Company Wal-Mart Carrefour Ahold Metro Group Kroger Tesco Target Rewe Costco Aldi ITM (Intermarche) Safeway (USA) Albertsons Schwarz Group Walgreens

Country of Origin USA France Netherlands Germany USA UK USA Germany USA Germany France USA USA Germany USA

Net Sales 2007 (US $ mn) 256329 87342 68224 65147 53791 50326 48163 44251 41693 41011 37723 35552 35436 33357 32505

Evolution of Indian Retail


Historic Traditional Government Supported Modern Formats/ International

Exclusive Brand Outlets/ Shopping Malls PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas Weekly Markets Village Fairs Melas
Source of Entertainment Neighborhood Stores/Convenience Availability/ Low Costs / Distribution Shopping Experience/Efficiency

Evolution of Fashion Retail in India


Pre 90s 1990-95 19952000 2000 onwards

Era of Tailormade

Era of RMG introduced

Brand Flourish

Retail growth

Emergence of Indian Retail -Reasons


YOUNGISTAAN (40% of population is between 25-35 years) : Quality , design , fashion conscious , free from hassles ,believe in spending ) Kids becoming aware of external environment and are becoming more demanding Influence of International travel and media (5 Mn Indians Travelled abroad , 67 mn cable and satellite homes) Emergence of new activities Credit friendliness Fashion in the business to be in the business of fashion

Retailing functions
Buying & Merchandising. Five golden rules:1. Right merchandise. 2. Right time. 3. Right Place. 4. Right Price. 5. Right stock qty.

Retailing functions
1. 2. 3. 4. 5. Store Planning and Operations Space Management Ambience/ Services. Visual Merchandising The silent seller. Customer management. Inventory management

Retailing functions
Human Resources
Finance & Accounts IT

Growing Indian Retail Market

1999

2002

2007

2010

2015

Retail :Share of categories


Market Size $billion 2010 Food, Beverages and Tobacco Personal Care Apparel Footwear Furnishings Consumer Durables & IT Furniture Jewellery & Watches Medical Care and Health Services Others 280 20 61 7 5 17 12 20 10 18 450 % Share 2010 62% 4.4% 14% 1.6% 1.1% 3.8% 2.7% 4.4% 2.2% 4.0% 100%

Growing Indian Apparel Retail Market

1999

2002

2007

2010

2015

Organized Indian Retail Market


% Share of Organised Retail
6

5.6

4.6

3.2
3 % Share of Organised Retail

1.8

0.7

0 1999 2002 2005 2007 2010

Current Channels : Organized Retail


The share of organized retail is 5.6% of the total retail market
100% 80% 55% 60% 40% 20% 0% US Taiwan Malaysia Thailand Brazil Indonesia Poland China India 85% 81% 40% 36% 30% 20% 20%
5%

Traditional Channel

Modern Channel

Characteristics of Retailers
Sorting Breaking Bulk Holding Stock

Additional services : Product guarantees, after sales service , feedbacks , credit , demo and installations., gift packing.
Channel of communication :To customers ,manufacturers

Transport and advertising

Significance of Retail
Customer point of view: Wide variety of brands , wide choice of Brands under one roof with the desired ambience and service levels. Manufacturer point of view : Retailer helps in promotion , product development and improvisation , takes the burden of demonstration and installation.

Careers
Retail Merchandisers Retail Buyer Category Visual Merchandisers Store Operations (Space management, inventory management ) Retail Business Development Training and development Brand Mall Management

Retail Professional
Analytical Creative Extrovert Stress handler Initiator Flexible