RETAIL
The word retail is, in fact, derived from the French word retailer, which means – “to cut off a piece or to break bulk.”A retailer may be defined as a dealer or trader who repeatedly sells goods in small quantities.
RETAIL INDUSTRY
The growth of retail revenues in India is impressive by any yardstick — a steady 25 percent per annum for the past decade with no signs of slowing down.
"Retailing is one of the oldest business activities in India. But until the liberalization and deregulation of the Indian economy in the 1990s, it was dominated by small one-man retail units.
However since the past five years, it has become more structured and formalized and is moving towards international standards. Today, the organized retail sector is an industry.
The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010.
100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangements are also permitted in retail trade.
51 per cent FDI is allowed in single-brand retailing.
Evolution Of Indian Retail
Weekly MarketsVillage Fairs Melas
Convenience StoresMom and Pop/Kiranas
PDS outlets Khadi storesCooperatives
Exclusive Brand OutletsHyper/Super marketsDepartment storesShopping Malls
Historic/ Rural Reach
Traditional/Pervasive Reach
Government Supported
Modern FormatsInternational
Source of entertainment
Neighborhood storesConvenience
Availability/Low costs/Distribution
Shopping experience/Efficiency
Evolution Of Indian Retail……
Formal Retailing SectorTypically large retailers
Greater enforcement of taxation mechanisms
High level of labor usage monitoring
Informal retailing SectorTypically small retailers.
Evasion of taxes
Difficulty in enforcing tax collection mechanisms
No monitoring of labor laws.
Growth Drivers for Organized Retail
Reasons for the fast Growth of Retail Companies in India Existing Indian middle classes with
an increased purchasing power Rise of upcoming business sectors
like the IT and engineering firms Change in the taste and attitude of
the Indians Effect of globalization Heavy influx of FDI in the retail
sectors in India
Why FDI?A. Improve competitionB. Develop the marketC. Greater level of exports due to
increased sourcing by major playersD. Investment in technologyE. Better lifestyle
o Greater level of wages paid by international players usually
o More product varietyo Newer product categorieso Economies of scale to help lower consumer
priceo Increased purchasing capacity of consumers
COMPANY PROFILE
Flagship company of Future Group Founder and Group CEO, Mr. Kishore
Biyani Company operates over 12 million
square feet of retail space Over 1000 stores Across 71 cities in India Employs over 30,000 people.
ROAD TO SUCCESS Incorporated on the 12th October,
1987 under the name of Manz Wear Private Limited.
on 20th September 1991, it was converted into a Public Limited Company under the name of Manz Wear Limited
Pantaloon Fashions (India) Limited with certificate of incorporation dated the 25th September.
In 1994, The Company launched a new brand of shirts called `John Miller‘
In 1998, the Company introduced Shrishti range of Salwaar Kameez.
The name of the Company was changed with the approval of the Members to Pantaloon Retail (India) Ltd. In 1999
K Raheja Corp Group
started in the year 1991
Shoppers Stop has 27 stores in 12 cities in India
Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside
More than 50 Westside stores established in various cities and states of India
Part of the Landmark Group, a Dubai – based retail chain.
began operations in 1999 with its first store in Chennai.
Around 20 stores across India
Launched in January 1998,
Part of the Rajan Raheja group.
Around 25 stores in India
RESEARCH METHODOLOGY SCOPE OF THE RESEARCH
Some stores of New Delhi and Noida
DATA COLLECTION Primary Data With the help of Questionnaires
SAMPLE SIZE 100 Respondents
POPULATION Customer of Lifestyle/Fashion segment of retail
stores in Delhi and Noida
OBJECTIVES
To compare the various stores under the Lifestyle segment
To find out which stores customers visit for different purposes (Men’s wear, women wear, and kid’s wear)
To find out the store considered best on the basis of membership benefits
To find out the best store among the 5 stores on the basis of product and service quality
To suggest means of improving “shoppers experience by enhancing the deliverable parameters
56%
44%
Male
Female
56%
44%
Male
Female
AGE GROUP
4%
41%
51%
4%
Less than 18 years
18-25 years
25-40 years
40 years and above
MONTHLY FAMILY INCOME (In Rs)
29%
50%
21%
15-30 thousand
30-50 thousand
50 thousand and above
OCCUPATION
28%
14%
21%
4%
31%
2%
Student
Businessman
Professional
Govt Service
Private Service
Housewife
How frequently do you shop for garments?
At le a st onc e a fortnig ht, 20
At le a st onc e a month, 36
At le a st onc e in 2 months, 27
At le a st onc e a we e k, 10Only during sa le s
pe riod, 4
On spe c ific oc c a sions, 3
Out of the following stores which Lifestyle store are you most likely to visit when looking for:
When you think of shopping, which factors out of following have importance in your decision
Rank the Sales Personnel of these stores on the basis of attentiveness, appearance and knowledge of product
Rank the stores on the basis of these services
You are a member of which company’s customer loyalty programme
50
63
16
43
15
7
0
10
20
30
40
50
60
70
Pantaloons Shopper'sStop
Westside Lifestyle Globus None
Is there any benefit of being a member
Which one is best on the basis of membership benefits
Pantaloons28%
Shoppers Stop36%
Westside6%
Lifestyle19%
Globus11%
Pantaloons36%
Shoppers Stop28%
Westside4%
Lifestyle22%
Globus10%
It was found that, the preference of customers in the Kid’s section does not vary too much. Because of availability of similar brands in all stores.
Most of the respondents said that pantaloons is most consistent in quality followed by Shoppers’ stop
It was found that, the preference of customers in the Kid’s section does not vary too much. Because of availability of similar brands in all stores.
It was found that most of the respondents said that Pantaloons provides maximum value to their money
In the survey, maximum of the respondents said that Lifestyle is having best Store Ambience
It is found out that, most of the respondents preferred Shopper’s Stop for providing maximum membership benefits followed by Pantaloons
It is found out that Pantaloons is considered best on the basis of advertisement & communication in the market
ank followed by Lifestyle on 2nd rank.
Findingscontd….
On the basis of appearance, attentiveness and knowledge of product of their Sales personnel Shopper’s Stop got 1st rank and Lifestyle got 2nd rank followed by Pantaloons
It is found out that On the basis of Waiting area provided by different Lifestyle stores, Shoppers stop got the highest rFrom the research it is found out that Location of the Store is the most important factor considered by the customer in their shopping decision
Pantaloons stands 1st among all for providing clean drinking water to the customers. Shoppers’ stop got 2nd rank followed by Lifestyle on 3rd rank.
It is found out that maximum respondents were having membership cards of more than 1 or 2 stores.
63 respondents were having membership card of Shopper’s stop and 50 respondents were having membership card of Pantaloons
On the basis of membership benefits, 36% of the respondents said that Shoppers’ stop is the best, while 28% respondents said that Pantaloons is best.
36% of the respondents have favored Pantaloons as the best Lifestyle store, 28% of the respondents have favored Lifestyle as the best store under this retail format
7Abhishek, Amit & Sumit . IMS MBA(MM)
Weekly MarketsVillage FairsMelas
Convenience StoresMom and Pop/Kiranas
PDS OutletsKhadi StoresCooperatives
Exclusive Brand OutletsHyper/Super MarketsDepartment StoresShopping Malls
Traditional/Pervasive Reach
Government Supported
Historic/Rural Reach
Modern Formats/ International
Evolution of Indian retail
Source of Entertainment
Neighborhood Stores/Convenience
Availability/ Low Costs /
Distribution
Shopping Experience/Efficiency