SDRM Article Presentation

Understanding the Evolution in the Concepts of Organized Retailing in India

- Dr. Qazi Asif Zameer

Professor
FORE School of Management

Group—8, SDRM-2
 History of Retail Industry
According to the world history ;

a) The Romans are the first civilization to establish a form of retailing

b) American retailing institutions originated after 1850

Figure 1- The F&R Lazarus Co. Columbus, Figure 2-Rich’s Departmental Store
Ohio (1867-2005)
• Catalog from mail order houses allowed goods required Image Source :
hassle of travelling - CHAIN STORE evolved [1] https://ohiopix.org/contentdm-search-results/?cdm-
page=9&cdm-
keywords=Lazarus%20Department%20Store&cdm-
• As technology improved, online retailers evolved
mode=all&cdm-field=subjec

Example – Amazon , Flipkart etc. Avinash Singh - 271012 [2] https://en.wikipedia.org/wiki/Rich%27s_(department_store)

 Evolution of Retail in India

Emergence of Mom & Pop Stores

Early 90s, help from Khadi & Village Industries

Commission (KVIC) & Canteen Store Department
(CSD) boosted the retail network

Textile Retail Chain – 1980s

a) Bombay Dyeing
b) Raymond’s
c) Titan

Source :
https://en.wikipedia.org/wiki/File:Evolution_of_i
ndian_retail.gif
Figure 3- Evolution of Indian Retail Industry

Avinash Singh - 271012

 Present Scenario of Retail Industry
Overall Indian Retail Size (USD Billion)
Organised Retail : 2017

MARKET SIZE (USD BILLIONS)

1400 1300
55%
%age of Organised Retail

60% 1200
50% 1000
40%
36% 800 672
30% 518 534
600 424
368
20% 13.70% 400 238 278 321

10% 1% 200
0% 0
2002 2004 2006 2008 2010 2012 2014 2016 2020E
Pakistan India Brazil Malaysia

Factors Supporting Growth –

• Growth of middle class consumers

• Rise in Income
• Emerging rural market
• Entry of foreign retailers
• Impact of Technology
Source :
[1] Retail Report 2018 : IBEF
Avinash Singh - 271012 [2] Retail Report 2017 : IBEF
Organized Retail Features
 Organized Retail

Unorganized Retail

Company is in compliance with required

tax regulation like GST Registration etc.

Hemant Gaur - 271020

 Authorized to Operate

Should be a Registered
Company & a Legal Entity

Possessing Mandatory
Licenses

Approval in regard to
Business segment is required

Hemant Gaur - 271020

Distribution Time Reduction

Hemant Gaur - 271020

Hemant Gaur - 271020
 Source of Income
Organized Retail not only earn from selling of products but also from in store
advertisements and providing a separate section for a specific brand

Big bazaar and Disney – Super Hero Mania in Stores

Hemant Gaur - 271020
 External Branding
Organized Retail should have appropriate and consistent external branding
for customer to identify before shopping

Hemant Gaur - 271020

 Modern Retail Features

● Structured Employment
i. All employees at operational level should be on
ii. Company’s payroll
iii. Adherence to HR practices

● Invoice/Notification of Transaction
i. All transactions should be track able
ii. It should provide information like item purchased,
quantity, price, discount, tax etc.

Heesha Sawhney - 271019

 Modern Retail Features

● Ethical Customer Service

i. Providing Promised Goods and Services to customers
ii. Measurable mechanism of handling customer grievances

● Credible Sourcing
i. Source of products and provider of services to company
should be legal and authentic
ii. Credible, transparent , accountable procedure

Heesha Sawhney - 271019

 Modern Retail Features

● Replicable and Scalable Concept

i. Able to grow carrying same identity and expandable
ii. Either presence of multiple outlets or sale in case of single
outlet
iii. In case of ecommerce and services, expandable ‘customer
base’ and the ‘service area’

● Technology Driven
i. Technology driven in the areas of billing, stock and
vendor management and Customer loyalty program

Heesha Sawhney - 271019

Indian Retail Industry: At the Crossroads

● The economy’s third largest sector,

the retail sector, is vital to India’s
growth, with an 11% contribution to
GDP and an 11% contribution to
employment.

● Retail is poised to grow at 12 %

annually over the next five years, with
modern trade and e-commerce
expected to lead the growth.

Anish Rai - 271006

Growth Drivers

E-Commerce Modern Trade

● Smartphone and Internet penetration ● New store additions, especially in tier 1

● Large investments by leading platforms and
retailers to promote online sales
● Convenience (one-stop solution for all needs,
ease of comparison, single-day home delivery,
and easy returns)
● Diverse product assortment for both tier 1 and
tier 2 markets
and tier 2 markets
● Creation of more sale events to match
online offers
● Convenience (location, instant
gratification, and touch and feel)
● Loyalty programs

Anish Rai - 271006

The road ahead will not be easy, with both modern trade and e-commerce
segments facing multiple challenges

Anish Rai - 271006

CHANGING LANDSCAPE

Dakshay Kumar - 271016

CONSUMER TRENDS: FROM AFFLUENCE TO INFLUENCE

This shift translates into five characteristics for today’s consumers

Dakshay Kumar - 271016

 KEY TRENDS

Source: AT Kearney and Retail Association of India Report Dakshay Kumar - 271016
KEY TRENDS

Dakshay Kumar - 271016

KEY TRENDS

Dakshay Kumar - 271016

https://www.youtube.com/watch?v=336YkwayCD4