Introduction to

What is Retailing?
Encompasses the business activities involved in

selling goods & services to consumers for their

personal, family or household use
It includes every sale to the final consumer- ranging

from cars to apparels, to meals at restaurant to

movie tickets

Five Core Principles of RetailingThe customer is the most important person in your

business
Retail is detail
Understand the four Ps
Go the extra mile for your customer
Location, location, location

Special Characteristics
Direct End-User Interaction
Platform for Promotions & POP Displays
Services as important as core product
Large number of retailers to meet geographical

coverage and population density

Develops personal contact with the customer
More Employment opportunities

Present Indian Retail Scenario

* Unorganized market: Rs. 583,000 crores
* Organized market: Rs.5, 000 crores
* 5X growth in organized retailing
* Over 4,000 new modern Outlets in the last 3 years
* Over 5,000,000 sq. ft. of mall space under
development
* The top 3 modern retailers control over 750,000
sq. ft. of retail space
* Over 400,000 shoppers walk through their doors
every week
* Growth in organized retailing

Reasons for the growth of retail industry in India:

Emergence of Organized Retail.
Spending Capacity of Youth of India.
Raising Income and Purchasing Power.
Changing Mindset of Customers.
Easy Customer Credit.
Higher Brand Consciousness.
Increasing no. of Dual Income Nuclear Families.
Changing Lifestyle and Consumer Behavior.

Organized Retailing In India

Organized Retailing In India

comprises mainly of modern retailing with busy

shopping malls, multi stored malls and huge

complexes that offer a large variety of products in
terms of quality, value for money and makes
shopping a memorable experience
Today, organized retailing has become an
experience characterized by comfort, style and
speed

Major Players in Indian Organized Retailing:

MAJOR PLAYERS

1) TATA GROUP

STORE BRANDS (PRODUCTS)

Landmark (leading retailer of books &

music);
Croma (multi brand electronics);
World of Titan (Watches);
Tanishq (Jewelry);
Titan Eye+( Eye wear);
Westside (Life style retail store);
Star bazaar (hyper market chain);
Fashion Yatra (family fashion store)

Major Players in Indian Organized Retailing:

2) FUTURE GROUP

3) RELIANCE GROUP

Central (Shopping Mall)

Big Bazaar (Hypermarket)
Brand factory ( Multi brand
readymade Garments)
Ethnicity (Indian ethic wear)
E-Zone (Electronics)
Shoe Factory(shoe wear)
Depot (books & music)
Reliance mart ( super market)
Reliance footprints (Footwear)
Reliance digital (Electronics)
Reliance Trends (Apparels &
Accessories)
Reliance Jewels(Jewellery)

Major Players in Indian Organized Retailing:

4) ADITYA BIRLA GROUP

5) RPG Group

Pantaloons ( Shopping Mall)

More ( Hyper market)
Abof (Online Fashion Store)
Fashion & Lifestyle (Apparel
Store)

Spencers (multi-format retail store)

Music World (music & home video
store)
Books & Beyond(Book Store)

Unorganized Retailing in India

TYPES OF RETAILERS
Store Retailers:
Specialty Store: Particular specific category,
providing high levels of customer satisfaction.
E.g. Tanishq, Reebok, The Body Shop etc.
Department Stores: Several product lines.

E.g. Shoppers Stop, Lifestyle etc.

TYPES OF RETAILERS
Discount Stores: Merchandise at affordable & cut

rate prices, the service provided is inadequate.

E.g. The Loot, The Brand factory etc.
Convenience Stores: Small Store in residential area,

open 24*7, limited line of high turnover convenience

products.
E.g. Reliance Fresh

TYPES OF RETAILERS
Hypermarkets: Provides variety & high volumes of

exclusive merchandise at low margins, Operating

costs comparatively less than other retail formats.
E.g. Big Bazaar, D-Mart, Vishal Mega mart etc.
Supermarkets: A self service store consisting mainly

of grocery & limited products on non food items.

E.g. SPAR supermarket, Target etc.

TYPES OF RETAILERS
Non-Store Retailers:
Direct Selling: also known as Network marketing &
Multilevel Selling.
E.g. Avon (one-to-one selling), Tupperware(one-tomany)
Direct Marketing: includes tele-marketing, television

direct-response marketing & e-marketing

E.g. Naaptol, Flipkart, E-bay etc.

TYPES OF RETAILERS
Automatic Vending: A piece of equipment which

offers 24 hrs. selling, self service and merchandise

that is stocked to be fresh.
E.g. Nescafe, Coca Cola vending machine
Buying Service: A storeless retailer serving a specific

clientele i.e. agreeing to give discounts in return for

membership

TYPES OF RETAILERS
CORPORATE RETAILING & FRANCHISING:
Corporate Chain Store: E.g. Reliance mart, Reliance

digital etc.
Franchise Organization: E.g. McDonalds, Subway
Merchandizing Conglomerate: The Future Group
Consumer Cooperative: E.g. Super Bazaar
Retailer Cooperative: E.g. ACE HArdware

The New Retail Environment

New Retail forms & combinations: Book stores feature

coffee shops, Gas stations include food stores.

Growth of intertype competition: Expanding the
product line
Competition between Store-based & Non-store based
Retailers
Growth of Giant Retailers
Decline of Middle-Market Retailers
Growing investment in Technology
Global Profile of Major Retailers
Growth of Shopper marketing

Marketing Decisions
Target Market: E.g. Fashion & You, targeted at a

niche market segment that wants to purchase

authentic designer merchandise.
Channels: E.g. Fab India, now combines retail,
online & institutional sales to reach the customers.
Product Assortment
Procurement
Prices: E.g Westside stores combine a hip image with
price affordability

Marketing Decisions
Services
Store Atmosphere
Store Activities & Experiences
Communications
Location:

Central Business Districts

Regional Shopping Centers
Community Shopping Centers
Shopping strips
A location within a larger store
Stand-Alone stores

PRIVATE LABEL IN RETAILING

IMPACT OF FDI IN RETAIL