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DECLARATION
I hereby declare that the project entitled THE INDIAN RETAIL SECTOR
submitted for the Degree of Master of Business Administration is my original
work and the project has not formed the basis for the award of any degree,
diploma, associate ship, fellowship or similar other titles It has not been
submitted to any other uni!ersity or Institution for the award of any degree or
diploma.
wwwstudygala"ycom
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A&'$()*+D+M+$-
-he success of my project report was not only with efforts but also withinterest, guidance . help offered to me by others
It is my duty to acknowledge with gratitude the help rendered to me by
each . e!ery indi!idual with whom I interacted during the completion of the
project
/ist . foremost I wish to e"press my deep debth of gratitude to Mr.
Rajat Mendirattafor helping me to carry out my project work
I e"press my gratitude . sincere indeptness to all faculty members of
MBA for their !aluable guidance persistent encouragement . inspiration .
guidance they ha!e to me
Also, not forgetting the college library facilities . computer lab facilities
without whose help gathering the rele!ant information would not ha!e been
possible
*ast but not the least I also pay my sincere thanks for guidance to those
persons mentioned abo!e or not who ha!e directly or indirectly helped me into
preparation of this reports
-hank you all
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#1+/A&+
-he distribution of consumer products begins with the producer and ends
at the ultimate consumer Between the producer and the consumer there is a
middleman222the retailer, who links the producers and the ultimate consumers
1etailing is defined as a conclusi!e set of acti!ities or steps used to sell a
product or a ser!ice to consumers for their personal or family use It is
responsible for matching indi!idual demands of the consumer with supplies of
all the manufacturers -he word 3retail4 is deri!ed from the /rench work
retailer, meaning 3to cut a piece off4 or 3to break bulk4
A retailer is a person, agent, agency, company, or organi5ation which is
instrumental in reaching the goods, merchandise, or ser!ices to the ultimate
consumer 1etailers perform specific acti!ities such as anticipating customer4s
wants, de!eloping assortments of products, ac6uiring market information, and
financing A common assumption is that retailing in!ol!es only the sale of
products in stores 7owe!er, it also includes the sale of ser!ices like thoseoffered at a restaurant, parlor, or by car rental agencies -he selling need not
necessarily take place through a store 1etailing encompasses selling through
the mail, the Internet, door2to2door !isits222any channel that could be used to
approach the consumer )hen manufacturers like Dell computers sell directly
to the consumer, they also perform the retailing function
1etailing has become such an intrinsic part of our e!eryday li!es that itis often taken for granted -he nations that ha!e enjoyed the greatest economic
and social progress ha!e been those with a strong retail sector )hy has
retailing become such a popular method of conducting business8 -he answer
lies in the benefits a !ibrant retailing sector has to offer9an easier access to a
!ariety of products, freedom of choice and higher le!els of customer ser!ice
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As we all know, the ease of entry into retail business results in fierce
competition and better !alue for customer -o enter retailing is easy and to fail
is e!en easier -herefore, in order to sur!i!e in retailing, a firm must do a
satisfactory job in its primary role ie, catering to customers 1etailers4 cost
and profit !ary depending on their type of operation and major product line
-heir profit is usually a small fraction of sales and is generally about ;2%
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+?+&@-I+ @MMA1C
-his is a project report on the topic -7+ I$DIA$ 1+-AI* +&-(1
In order to sur!i!e in retailing, a firm must do a satisfactory job in itsprimary role ie, catering to customers 1etailers4 cost and profit !arydepending on their type of operation and major product line -heir profit isusually a small fraction of sales and is generally about ;2%
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CERTIFICATE
&ertified that the project is a work done by Mr. NARENDRA SIN"Hduring
the period of his study under my guidance, and that the project has not
pre!iously formed the basis for the award of any degree, diploma, associates
hip, fellowship or similar other titles and that it is an independent work done by
his.
#laceF $ameF Mrs MA7IMA 1AI
DateF
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INDE#
CHA$TER $ARTICULAR $A"E NO.
CHA$TER % INRODUCTION & RETAIL INDUSTR' 8-26
CHA$TER ( MA)OR * MINOR CHALLEN"ES OF
INDUSTR'
27-33
CHA$TER + $AST* $RESENT , FUTURE OF
INDUSTR'
34-41
CHA$TER - IM$ACT OF RETAIL INDUSTR' IN
INDIA
42-48
CHA$TER LATEST TRENDS N RETAIL SECTOR 49-53
CHA$TER / A$$ENDI#
&onclusion
Bibliography
)ebliography
54-57
54-56
57
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RETAIL INDUSTR'
-he word 1etail originates from a /rench2Italian word 1etailer2
someone who cuts off or sheds a small piece from something 1etailing is the
set of acti!ities that markets products or ser!ices to final consumers for their
own personal or household use It does this by organi5ing their a!ailability on a
relati!ely large scale and supplying them to customers on a relati!ely small
scale 1etailer is a #erson or Agent or Agency or &ompany or (rgani5ation
who is instrumental in reaching the oods or Merchandise or er!ices to the
+nd @ser or @ltimate &onsumer.
1etail is IndiaJs largest industry It accounts for o!er %< per cent of the
IndiaJs D# and around eight per cent of the employment 1etail sector is one
of IndiaJs fastest growing sectors with a E per cent compounded annual growth
rate IndiaJs huge middle class base and its untapped retail industry are key
attractions for global retail giants planning to enter newer markets Dri!en by
changing lifestyles, strong income growth and fa!orable demographic patterns,
Indian retail is e"pected to grow 0E per cent annually It is e"pected that retail
in India could be worth @K %HE20
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retailers entered ;< new markets, but at the same time, %H retailers left markets
in 0
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malls are on the !erge of completion and may be operational by the end of
current financial year A forecasted number of nearly 0
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&ompanies like hoppers top, -rent, 1eliance, *ifestyle, #antaloons
-anish6, &rossroads, AkbarallysJ and -anish6 already ha!e planned to in!est
o!er 1s E,
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STRUCTURE OF RETAIL
INDUSTR'
-he retail industry continued in India in the form of 'iranas till %;L
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home Markets $ew geographies help them sustain top line growth in Addition
to enabling global sourcing and encasing on global ad!antages of getting the
best products at optimum prices
-here has been a boom in retail trade in India owing to a gradual
increase in the disposable incomes of the middle class households, as a result
of good performance of I-, er!ice and Infrastructure sectors More and more
players are entering the retail business in India to introduce new formats like
malls, supermarkets, discount stores, department stores and e!en changing the
traditional looks of bookstores, chemist shops, and furnishing stores
Or3ani4ed retai0 or2ats pre5a0ent 30o6a007
Super2ar1etsF elf2ser!ice >
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RETAILIN" FORMATS IN INDIA
Ma00s9
-he largest form of organi5ed retailing today *ocated mainly in metro
cities, in pro"imity to urban outskirts 1anges from G
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H7per 2arts*Super2ar1ets9
*arge self ser!ice outlets, catering to !aried shopper needs are termed as
upermarkets -hese are located in or near residential high streets -hese stores
today contribute to :
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RETAILIN" MA$ IN INDIA
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%. Retai0in3 Map
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E;OLUTION OF
RETAILIN"
1etailing, one of the largest sectors in the global economy, is going
through a transition phase in India /or a long time, the corner grocery store
was the only choice a!ailable to the consumer, especially in the urban areas
-his is slowly gi!ing way to international formats of retailing -he traditional
food and grocery segment has seen the emergence of supermarketsgrocery
chains, con!enience stores and fast2food chains
-he traditional grocers, by introducing self2ser!ice formats as well as
!alue2added ser!ices such as credit and home deli!ery, ha!e tried to redefine
themsel!es 7owe!er, the boom in retailing has been confined primarily to the
urban markets in the country +!en there, large chunks are yet to feel the
impact of organi5ed retailing -here are two primary reasons for this /irst, the
modern retailer is yet to feel the saturationJ effect in the urban market and has,
therefore, probably not looked at the other markets as seriously econd, the
modern retailing trend, despite its cost2effecti!eness, has come to be identified
with lifestyles
In order to appeal to all classes of the society, retail stores would ha!e to
identify with different lifestyles In a sense, this trend is already !isible with the
emergence of stores with an essentially P!alue for moneyJ image -he
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attracti!eness of the other stores actually appeals to the e"isting affluent class
as
)ell as those who aspire to be part of this class 7ence, one can assume that
the retailing re!olution is emerging along the lines of the economic e!olution
of society
It was only in the year 0
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INDIAN SCENARIO OF RETAIL
INDUSTR'
-he present !alue of the Indian retail market is estimated by the India
1etail 1eport to be around 1s %0,
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%. Rise in the purchasin3 po8er o Indians 2 the rise in the per capita income
in the last few years has been magnificent -his has led to the generation of
insatiable wants of the upper and middle class -he demand of new as well as
second hand durables has risen throughout the country thus pro!iding the
incenti!e for taking up retailing
(.Fa5ora60e to ar2ers&retailing has helped in remo!ing the middlemen and
has thus enhanced the remuneration to farmers -his is a new re!olution in the
agricultural sector in India and will go a long way in amending the condition of
agriculture, a major concern among policy makers
+ Use o credit&a typical Indian is most con!ersant with using credit cards
than carrying money -his is led to shift of the consumer base towards
supermarkets and make the payments in the form of credit
> Co2orta60e At2osphere& a !isit to a retail store appears to be more
soothing for the generation2C #eople and kids prefer to shop in an air
conditioned -he retail industry is the second largest employer in India It
currently employs about H percent of the total labor force in India Finance
Minister $. Chida26ara2:s recent state2ent ?sa0aries ou3ht not to 6e
0e3is0ated@ is a welcome mo!e as most of the organi5ed retail is in pri!ate
hands (nly >G= of the total retail trade is into organi5ed sector It generates
about 1sEE,
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as political instability and infrastructure namely power and roads are the major
roadblocks in the path of smooth functioning of the market
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$RESENT INDIAN SCENARIO
R @norgani5ed marketF 1s EL:,
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RETAIL 9 ORLDIDE SCENARIO
China&the total sales from retail market in &hina reached @KHEE billion in
0
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Spain2pain +nergy Industry pain energy consumption is estimated to ha!e
reached %GE Million -ons of (il +6ui!alent in 0
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include the categories of gasoline, automobiles, and food ser!iceO were up
about :L= in 0; trillion N#lunkett 1esearch estimateO -he 0
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O)ECTI;ES , ROLE OF RETAIL INDUSTR'
1etail is clearly the sector that is poised to show the highest growth in
the ne"t fi!e years -he sector is set for a re!olution, as both the present players
and new entrants are gearing up to e"plore the market -his sector contributes
%
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CHALLEN"ES OF RETAIL INDUSTR'
-he big challenge for the Indian retailing industry is the heterogeneity of
the market It is up to us retailers to e!ol!e with consumers, predict where and
what they will spend on, be there and take the highest share of their wallet and
use this last leg of the economic chain to build India At #anta2loon, through
our deli!ery formats, we touch E0= of the customer4s wallet My !ision is to
capture where this new, young and emergent India is going to spend and
capture as close to %
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li!es -ier2II and tier2III cities present an enormous growth potential o!er the ne"t
fi!e years and are the future of modern retail in India
MA)OR CHALLEN"ES
%. A2a03a2ation or Conusion&According to -A-A trategic Management
roup, India has a high density retail structure of % retail outlet per ;< people
and is the ;th largest retail market in the world But the structure of the retail
industry in India is in utter jumble -he parallel operation of con!enience
stores, supermarkets, hypermarkets and specialty stores in the economy is
bewildering According to the J)heel of 1etailing -heoryJ, certain loopholes in
one of the forms of marketing can get communicated to other forms also
(. hat to se002 Another bemusement is the category of items to be offered
According to researches, >% percent of total consumption e"penditure goes to
the segment of food and groceries and it accounts for HH percent of total retail
sales o it is ob!ious that this is the most preferred section of retailers But
unfortunately the foible taste bias for Jwet marketJ Nie fresh food a!ailable
through hawkersO has marred this prospect also -herefore supply chain
management, storage of fresh perishable foods and persuading the customers
that the food is ine"pensi!e despite being fresh are genuine challenges to the
newcomers Di!ersifying the product base to consumer products such as
readymade garments, furniture4s, mobiles and computers can mitigate the
losses, if any from food marketing and also broaden the reach to consumers
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+. Nosta03ia& Indian shopping habits are no different #eople tend to attach
6ualities like honesty, fair price, good beha!ior etc to shopkeepers with whom
they ha!e been dealing right from childhood -hey find no reason to go to a
distant megaspore without any genuine reason -his problem is difficult to deal
with as it demands a change in long2formed mindset (rgani5ed retail outlets
can o!ercome this problem by employing eligible local peoples who can
interact in !ernacular language and win the confidence of people
-. Inor2ation Techno0o372 -his is a major problem and India must act fast if
it wishes to create a smooth field for organi5ed retailing Digiti5ation of
ser!ices will make transfer of goods easy and an impro!ement in supply chain
management will definitely play a significant role in attracting more consumers
and less consumer grie!ances Besides, it will generate easier payments option
for customer and easier money mo!ement for the &+(s of these highly
di!ersified malls
MINOR CHALLEN"ES
%. Hu2an resource crunch2 the concern for insufficient manpower in the
industry has been in news for the last few months -his fear is somehow
unfounded -he retail industry according to recent reports is growing at a rate
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of %
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come up as home grown in!estment is always sweeter than foreign in!estment
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OTHER CHALLEN"ESF
N%O *(&A-I($F
1ight #lace, 1ight choice
*ocation is the most important ingredient for any business that relies on
customers, and is typically the prime consideration in a customers store choice
*ocations decisions are harder to change because retailers ha!e to either make
sustainable in!estments to buy and de!elop real estate or commit to long term
lease with de!elopers )hen formulating decision about where to locate, the
retailer must refer to the strategic planF
R In!estigate alternati!e trading areas
R Determine the type of desirable store location
R +!aluate alternati!e specific store sites
0O M+1&7A$DI+F
-he primary goal of the
most retailers is to sell the
right kind of merchandise
and nothing is more
central to the strategic thrust of the retailing firm Merchandising consists of
acti!ities in!ol!ed in ac6uiring particular goods and ser!ices and making them
a!ailable at a place, time and 6uantity that enable the retailer to reach its goals
%.%% Retai0 Cha00en3e
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Merchandising is perhaps, the most important function for any retail
organi5ation, as it decides what finally goes on shelf of the store
:O #1I&I$F
#ricing is a crucial strategic !ariable due to its direct relationship with a firmJs
goal and its interaction with other retailing elements -he importance of pricing
decisions is growing because todayJs customers are looking for good !alue
when they buy merchandise and ser!ices #rice is the easiest and 6uickest
!ariable to change
>O -A1+- A@DI+$&+F
&onsumer the prime mo!er
&onsumer #ull, howe!er, seems to be the most important dri!ing factor
behind the sustenance of the industry -he purchasing power of the customers
has increased to a great e"tent, with the influencing the retail industry to a great
e"tent, a !ariety of other factors also seem to fuel the retailing boom
EO &A*+ (/ (#+1A-I($F
cale of operations includes all the supply chain acti!ities, which are carried
out in the business It is one of the challenges that the Indian retailers are
facing -he cost of business operations is !ery high in India
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SOME $ULISHED ISSUE OF RETAIL INDUSTR'
-he retail industry is e"pected to grow into a @D >0H billion industry by
0
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$AST* $RESENT* FUTUREOF RETAIL INDUSTR'
Before the decade of eighties, India with hundreds of towns and cities
was a nation stri!ing for de!elopment -he e!olution was being witnessed at
!arious le!els and the people of India were learning to play different roles as
businessmen and consumers
1etail2which literally means to put on the market, is a !ery important
aspect of e!ery city )ithout a well organi5ed retail industry we would not
ha!e our necessities and lu"uries fulfilled Be it our daily groceries or fashion
accessories and e!erything in between, retail industry brings us the blissful
e"perience of shopping -hough organi5ed retailing industry began much
earlier in the de!eloped nations, India had not acti!ely participated 7owe!er
with its !ast e"panse and young population, India in the 0%st century emerges
as a highly potential retail market -he journey of retailing in India has been
ri!eting and the future promises further growth 7ere is a complete picture
deciphering the past, present and future trends of Indian 1etail Market
It is widely accepted that the retail industry has undergone a drastic
change in last fi!e years and there is yet more to come *et us compare the
Cha ter&+
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image of Indian retailing in 0
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actually brought in the organi5ed format for 1etailing in India which was
absent earlier-o your surprise there was not a single mall in India a decade
before and just a few years ago only a handful of them were stri!ing, today
there are more than E< malls across different cities and 0 years from now
around E
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As the spending power is no longer limited to metros, e!ery tier 0 city in the
country has good market for almost e!ery product or ser!ice Due to this, tier 0
cities like &handigarh, &oimbatore, #une, 'olkatta, Ahmedabad, Baroda,
7yderabad, &ochin, $agpur, Indore, -ri!andrum etc pro!ide a good platform
for a brand to enter Indian market
7owe!er there are a few precautions for e!ery brand that e"plores Indian
market As Indian consumers are !ery curious and ha!e a broad perspecti!e,
they respond well to a new product or concept and there are !ery fair chances
of a brand sur!i!ing well, but e!ery Indian consumer be it an urbanite or a
small town dweller needs a feeling of !alue for money Although labeled as
tight fisted, Indian consumers are great spenders once they reali5e that they are
getting !alue for their money Also new product ser!ice concepts from the
western world are better adopted first by the urban Indians, the smaller markets
respond well to the need based retailing rather than lu"ury concepts
As the Indian retailing is getting more and more organi5ed !arious retail
formats are emerging to capture the potential of the market
R Mega Malls
R Multiple"es
R *arge and small supermarkets
R 7ypermarkets
R Departmental stores are a few formats which flourishing in the both big and
small regional markets
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As the major cities ha!e made the present retail scenario pleasant, the future of
the Indian 1etailing industry lies in the rural regions &atering to these
consumers will bring tremendous business to brands from e!ery sector
7owe!er as the market e"pands companies entering India will ha!e to be more
cautious with their strategic plans
Future G Retai0 Industr7 in India
According to a study the si5e of the Indian 1etail market is currently
estimated at 1s H crores which accounts for a meager : = of the total retail
market As the market becomes more and more organi5ed the Indian retail
industry will gain greater worth -he 1etail sector in the small towns and cities
will increase by E< to G< = pertaining to easy and ine"pensi!e a!ailability of
land and demand among consumers
rowth in India 1eal estate sector is also complementing the 1etail
sector and thus it becomes a strong feature for the future trend (!er a period
of ne"t > years there will be a retail space demand of >< million s6 ft
7owe!er with growing real estate sector space constraint will not be there to
meet this demand -he growth in the retail sector is also caused by the
de!elopment of retail specific properties like malls and multiple"es
According to a report, from the year 0
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currently has only := of the total market share will ac6uire %E20< = of the
market share by the year 0
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/oreign direct in!estment is not allowed in retail sector, which can be a
concern for many brands But /ranchise agreements circum!ent this problem
Along with this regulations and local laws and real estate purchase restrictions
bring up challenges And with ood #lanning, -imely Implementation and a
media campaign that touches Indian consumers any brand can go far ahead in
the Indian 1etail 1e!olution
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IM#A&- (/ 1+-AI* I$D@-1C I$ I$DIA
(rgani5ed retailing is spreading and making its presence felt in different
parts of the &ountry -he trend in grocery retailing howe!er, has been slightly
different with a rowth concentration in the outh -hough there was
traditional family owned retail &hains in outh India such as $ilgiri4s as early
as %;
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supermarket stocks up to E
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As of now, while &hennai has about fi!e organi5ed food and grocery retail
chains, other big cities such as Delhi, Bangalore, and Mumbai a!erage only
two2three such chains Almost all food retail players ha!e been region2
specific as far as geographical presence is concerned in the country -o
illustrate with e"amples, the 1# roupJs /ood )orld, $ilgiri4s, Margin /ree,
iant, arkeyJs and ubhiksha, all of which are more or less spread in the
outhern regionV abka Ba5aar has a presence only in and around DelhiV names
such as 7aiko and 1adhakrishna /ood2land are Mumbai2centricV while Adani
is Ahmedabad2centric Industry topography in India is such that spreading
presence across cities is a tough call As pointed out by many e"perts,
organi5ed food and grocery retailing chains going national re6uires significant
in!estments 1etailing within this sector is not just about the front2end, but
in!ol!es comple" supply chain and logistics issues as well
-he trend and mindset of the present retailer chains in India can be best
understood by studying /ood2)orld as an e"ample, which came in first in the
food and grocery retailing sector -he chain has no plans to !enture beyond the
outhern region just yet &urrent plans are to focus on the outhern markets
and achie!e saturation -he intention is that by 0
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within E
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-here are many problems face by 1etail industry in Indian Market -hey are
followingF2
The or2at does not suit rura0 IndiaF )hile the format suits the urban areas,
it does not suit the rural areas in a country like India -oday, in Indian,
organi5ed retailing is confined to class A cities, the 0: largest cities About L0
per cent of organi5ed retailing comes form the top si" cities and another %0
percent from the ne"t four -hus, the top %< cities account for ;> per cent of all
organi5ed retailing in India -he scattered location of consumers has been the
main deterrent to the rapid spread of the idea in the rural areas
$urchasin3 patterns not 5er7 conduci5eF +!en in urban centers, the
purchasing patterns of the Indian consumers differ form those of westerners
)hereas in the west, the purchases are spread better o!er the month, in India
#urchases are by and large made in the first week of the month -heirs perhaps
has a correlation to patterns of payment of wagesV #urchasing patterns differ
also because of the difference in the eating habits of people
Inadeuate 3ro8th o 6randsF Inade6uate growth of brands is another factor,
In India, branding was almost not2e"istent in con!enience products until
recentlyV this has naturally inhibited retailing through sophisticated chains
upply chain problemsF As suppliers are not properly organi5ed in the country,
replenishment of stock poses problems for large chains ource de!elopment
also poses special problems
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ein3 a2i07 6usinesses retai0in3 enterprises ha5e 0i2itation in e!pansionJ
Cet another reason for the slow pick up of mega retailing idea in India is that
all along retail enterprises ha!e been family concerns And, family businesses
usually ha!e a limitation in e"pansion,
E!a2p0e o ;i5e1KsV -he i!ek4s N/ormerly i!ek4s . &o O of &hennai, is
an e"ample /or the past se!eral years, it remained rather small because of its
family character During the three decades from %;GE to %;;E, it had just three
showrooms It was a family concern and remained for a long time, a single
store outfit, managed by the father and assisted by his three sons (nce the
father grew old, the sons started managing the business, and because there were
three sons engaged in the business, the enterprise went in for three showrooms
In recent years, howe!er, it has emerged as a major chain, as it has shed its
family business character, now it is actually the largest consumer durable chain
in the country It has big sales !olumes and multiple locations
Rea0 estate pro60e2sV 1eal estate is an integral re6uirement of large scale
chain store operation (ne needs a large number of stores in each city to
achie!e optimum scale Also, big chains ha!e to operate in se!eral cities 1eal
estate thus becomes crucial -hat is why groups that ha!e been in real estate
and hotel businesses are more comfortable in branching off into retailing /ro
other firms, real estate de!elopment are a problemV they don not command
property in prime locations
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(ther *imitation of 1etail Industry
-he organi5ed retail industry in India is faced with
stiff competition from the unorgani5ed sector
-here is a shortage of 6uality real estate and
infrastructure re6uirements in our country
(pposition to /oreign Direct In!estment from small
traders affects retail industry
A !ery high stamp duty on transfer of property
affects the industry
hortage of retail space in central and downtown
locations also hinders the growth of retail industry
#resence of strong #ro2tenancy laws makes it
difficult to e!ict tenants and this is posing problems
*and2use con!ersion is time consuming and
becoming comple"
/or settling property disputes, it consumes lot of
time
$on residents are not allowed to own property e"cept
they are of Indian origin
Inade6uacies in infrastructure such as lack of high
6uality road networks, power shortages and insufficient storage spaces
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employment for more than 0E million people by the year 0
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Recent Trends , Chan3es
1etailing in India is witnessing a huge re!amping e"ercise as can be seen in
the graph
India is rated the fifth most attracti!e emerging retail marketF a potential
goldmine
Multiple dri!ers leading to a consumption boomF
/a!orable demographics
rowth in income
Increasing population of women
1aising aspirations F alue added goods sales
+.% Retai0 Ana07sis
(rgani5ed retailing in India has been largely an urban phenomenon with
affluent classes and growing number of double2income households
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1ural markets emerging as a huge opportunity for retailers reflected in the
share of the rural market across most categories of consumption
&ompanies using their own web portal or tie2sups with hori5ontal players
like 1ediffcom and Indiatimescom to offer products on the web
Spencer:sis also planning to set up E
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formats being tested out +" Wuasi2mall, sub2urban discount stores, &ash
and carry etc
Unor3ani4ed retai0in3 is 3ettin3 or3ani4ed9 -o meet the challenges of
organi5ed retailing such as large cineple"es, and malls, which are backed by
the corporate house such as JAnsa0sJ and J#13 the unorgani5ed sector is
getting organi5ed 0E stores in Delhi under the banner of #ro!ision mart are
joining hands to combine monthly buying Bombay Ba5aar and +2food mart
formed which are aggregations of 'iranas
E2er3ence o discount stores9 -hey are e"pected to spearhead the
organi5ed retailing re!olution tores trying to emulate the model of )al2
Mart +" Big Ba5aar, Bombay Ba5aar, 1#s
+.+ Retai0 Se32ents
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Latest Ne8s o Retai0 Mar1et in India
Israeli iants +nter Indian 1etail ector
Israeli mall giants, owners of retail2linked realty assets across the world,
are buying into India4s money minting retail sector -el A!i!2based mall giant
a5it lobe has tied up with one of the 7D/& funds to pump in K%E< million
into de!eloping assets, including supermarket anchored retail play Big
hopping roup, of Israel4s biggies has teamed up with *ehman Brothers 1eal
+state #ri!ate e6uity to set up 3open malls4 in tier I and tier II cities
Israeli tycoons and families, which raked in money from core real estate
de!elopments in the @, ha!e turned their attention to retail assets from ao
#aulo to Macedonia, as mall ownership and management pro!ides attracti!e
0
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ones Interestingly, America $o : general retailer behind )al2Mart and -he
7ome Depot runs all its nearly 0,E
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CONCLUSION
/or a start, these retailers need to in!est much more in capturing more
specific market Intelligence as well as almost real2time customer purchase
beha!ior information -he retailers also need to make substantial in!estment in
understandingac6uiring some ad!anced e"pertise in de!eloping more accurate
and scientific demand forecasting models 1e2engineering of product sourcing
philosophies2aligned more towards collaborati!e planning and replenishment
should then be ne"t on their agenda -he message, therefore for the e"isting
small and medium independent retailers is to closely e"amine what changes are
taking place in their immediate !icinity, and analy5e )hether their current
market offers a potential rede!elopment of the area into a more modern multi2
option destination If it does, and most commercial areas in India do ha!e this
potential, it would be !ery useful to form a consortium of other such small
retailers in that !icinity and take a pro2acti!e approach to pool in resources and
impro!e the o!erall infrastructure -he ne"t effort should be to encourage
retailers to make some in!estments in impro!ing the interiors of their
respecti!e establishments to make shopping an enjoyable e"perience for the
customer
As the retail marketplace changes shape and competition increases, the
potential for impro!ing retail producti!ity and cutting costs is likely to
Cha ter&/
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decrease -herefore, it will become important for retailers to secure a
distincti!e position in the marketplace based on !alue, relationships or
e"perience
/inally, it is important to note that these strategies are not strictly independent
of each otherV !alue is function of not just price, 6uality and ser!ice but can
also be enhanced by #ersonali5ation and offering a memorable e"perience In
fact, building relationships with customers can by itself increase the 6uality of
o!erall customer e"perience and thus the percei!ed !alue But most
importantly for winning in this intensely competiti!e marketplace, it is critical
to understand the target customerJs definition of !alue and make an offer,
which not only delights the customers but also is also difficult for competitors
to replicate
+. Retai0 Touches Econo27
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httpFwwwindianretallingcom
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httpFwwwchanneltimescom
httpFwwwc"otodaycom
httpFwwwindiainbusinessnicin
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Specia0 Than1s to9&
)ikipedia, the free encyclopediahtm
httpFwwwgooglecom
httpFwwweconomywatchcombusiness2and2economyretail2industry
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