Final Retailing

Managing Retail Stores
RETAILING
An Introduction
Retailing is the set of business activities that adds value to the products and services sold to consumers for their personal or family use. Often people think of retailing only as the sale of products in stores. However, retailing also involves the sale of services: overnight lodging in a motel, a doctors consultation, a haircut, a video tape rental, or a home delivered pizza. When countries grow, they buy more things. More products become available. They need more shelf space. The result: a retail revolution. Thats whats happening in India today. A new generation of retail outlets is emerging, which will change the landscape of the countries cities.
With 12 million retail outlets, India can claim the distinction of truly being a nation of shopkeepers. Yet, unlike the USA, which has 1 million shops, India can hardly be called shoppers paradise. The unorganized sector that comprises of the retail sector ranges from grocery stores to the corner shops and stalls that stock soaps and sweets and are spread across six lakhs villages and thousands of small towns. The organized sector, on the other hand, comprises largely of chain stores limited mainly to major metropolitan cities. Only 2% of Indias retailing sector is organized.
History of RETAILING
Beginnings of Retail Trade
1. Early Trade
When man started to cultivate and harvest the land, he would occasionally find himself with a surplus of goods. Traditionally Mom & Pop run the retail business having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. Thus markets were formed. These early efforts to swap goods developed into gatherings that are more formal. When a producer who had a surplus could not find another producer with suitable products to swap, he may have allowed others to owe him goods. Thus early credit terms would have been developed. This would have led to symbolic representations of such debts in the form of valuable items and eventually money. 2. Early Markets
After, the Industrial Revolution, there was a change in the pattern of production of goods and services. Handmade articles were replaced by machine made ones and were made in bulk. Marketing this bulk production was a challenge that was faced. Slowly, small-scale retailing developed into medium and then large-scale retailing.
The basic chain of distribution that was operational in the olden days remained unchanged. The producers produced in bulk, the wholesalers purchased goods from
them and sold them to retailers in small quantities. The retailers sold these to the end consumers as per their requirements. 3. The First Shops
Eventually, markets would become permanent fixtures i.e. shops. These shops along with the logistics required to get the goods to them were, the start of the Retail Trade.
How Retail Developed

1. Peddlers and Producers
The Retail Trade is rooted in two groups, the peddlers and producers. Peddlers tended to be opportunistic in their choice of stock and customer. They would purchase any goods that they thought they could sell for a profit. Producers were interested in selling goods that they had produced. 2. General Store
This division continues to this day with some shops specializing in specific areas, reflecting their origins as outlets for producers and others providing a broad mix, known as General Store. Although specialist shops are still with us, over time, the
general store has increasingly taken on specialist products. Customers have found this to be more convenient than having to visit many shops - thus the term Convenience Store has also been applied to these shops. As the popularity of general stores has grown, so has their size. This combined with the advent of SelfService has lead to the Supermarket, or malls 3. Self-Service Stores
Up until the introduction of self-service stores, customers would simply ask the shopkeeper for their goods. The shopkeeper would price them (weighing them if necessary), pack them in a bag or other container (often supplied by the customer), tot up the bill and receive payment. There was a personal one-to-one relationship between customer and shopkeeper.
Now scenario has changed, this new type of shopping was more efficient and many customers preferred it. Although personal service stores remain to this day, this new concept started a rapid growth of self-service stores in the United States, India etc... Other countries were slow to take up the idea, but there has been a steady rise in the global amount of self-service stores ever since.
Definition OF RETAILING
The word retail is 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 sells goods in small quantities or one who
repeats or relates.
Retailing includes all the activities involved in selling goods of services of the final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing.
PHILIP KOTLER
NATURE OF RETAILING
Retailing includes all transactions in which the ultimate consumers are the buyers. The buyer intends to consume the product through personal, family or household use. A retailer is a business entity that purchases product for reselling them, to the ultimate consumer. Retailing often takes place in stores or service establishments, but it also occurs through direct selling, direct marketing and vending machines outside the stores.
Retailing is important to the national economy of any country. The number of retailers has remained relatively constant for the past twenty years. But the sales volume has increased.
Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user but now there are various in retail industry. As we know that change is what, which is permanent in nature. Retailers add value, provide services and assist in making product selections. Retailer image can enhance the value of the product through the shopping experience, availability or convenience such as home shopping. Through its location, a retailer can facilitate comparison-shopping. Product value is also enhanced as retailers offer services such as technical advise, delivery, credit and repair services. Retail sales personnel can also demonstrate to customers how a product can help address their needs or solve a problem.
The value added by retailers is significant for both producers and ultimate consumers. Retailers are the critical link between producers and ultimate consumers because they provide the environment in which exchanges with ultimate consumers occur. Ultimate consumers benefit through retailers performance of marketing
functions that result in the availability of broader arrays of products. Retailers play a major role in creating time, place and possession utility.
Leading retailers such as Wal-Mart, The Home Depot, Macys and Toys R Us, big bazaar, hyper mart offer consumers a place to browse and compare merchandise to find just what they need. Such traditional retailing is being challenged by direct marketing channels that provide home shopping through catalogues, television and internet. Traditional retailers are responding to this change in the retail environment in various ways. Wal-Mart has joined forces with fast-food giants like McDonalds and PepsiCo to attract consumers and offer them added convenience of eating when they shop.
New store formats and advances in information technology are making the retail environment highly dynamic and competitive. The key to success in retailing is first to have a strong customer focus with a retail strategy that provides the appropriate level of service, product quality and innovativeness that consumers desire. Partnership among non-competing retailers and other marketing channel members are providing new opportunities for retailers.
Retailers are also finding global opportunities. Toys R Us is now opening more international units than domestic stores, a trend that is likely to continue for the near future.
IMPORTANCE OF RETAILING
As the final link between consumers and manufacturers, retailers are a vital part of the business world. Retailers add value to products by making it easier for manufactures to sell and a consumer to buy.
The need for increased customer focus in a global competition has led to growing popularity of retailing. This is because the corporate have started realizing the significant role that retailing plays:
Sorting: Manufacturers sell their entire lot to retailers and consumers prefer to choose in small quantities from a wide range of products. Thus the retailer sorts out a wide variety of goods and provides convenience to consumers in the form of onestop shopping.
Dissemination of Information to consumers and other channel members: Retailing enables more consumer awareness of new products, product
differentiation and new categories introduced in the market. Also manufacturers can be informed about sales forecast, delays in shipping, consumer complaints, defective parts, inventory turnover etc. In fact, many goods are developed in consultation with the retailers.
SCOPE OF RETAILING
As with most other business activities, retailing is extremely competitive, and the mortality rate of retail establishments is relatively high. The basic competition is price competition, but this is moderated somewhat by such non-price forms of competition as convenience of location, selection and display of merchandise, attractiveness of the retail establishment itself, and intangible factors such as reputation in the community.
Competition for sales has led to a blurring of traditional product lines in retailing, and many establishments offer a much wider variety of merchandise than their basic classification would indicate (e.g., drugstores may carry food, clothing, office supplies, hardware, etc.
The diversity of retailing is evident in he many forms this
commercial activity now takes, including hawkers vending machines, sales,
door-to-door
telephone sales, mail-order houses, specialty stores, department stores, supermarkets, and discount houses,
consumer
cooperatives.
Whatever forms it takes, however, the essence the of good retailing attractive,
remains
same:
appropriate merchandise offered for sale in an attractive, eyecatching manner at a reasonable price at a convenient location.
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TYPES OF RETAILING
Retailing involves a direct interface with the customer and the coordination of business activities from end to end- right from the concept or design stage of a product or offering, to its delivery and post-delivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today.
TYPES OF RETAIL OPERATIONS:
Retail operations enable a store to function smoothly without any hindrances. The significant types of retail operations consist of:
Department store Specialty store Discount/Mass Merchandisers Warehouse/Wholesale clubs Factory outlet
Retail Management System targets small and midsize retailers seeking to automate their stores. The package runs on personal computers to manage a range of store operations and customer marketing tasks, including point of sale; operations; inventory control and tracking; pricing; sales and promotions; customer management and marketing; employee management; customized reports; and information security.
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CLASSIFICATION OF RETAIL SECTOR

The Indian retail sector can be broadly classified into:
health &beauty products clothing and footwear
food retailers
classification of retail sector leisure & personal goods home furniture & household goods durable goods
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector. Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector .In comparison, malls account for a small proportion of food sales in India. However the growth rate of super malls sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super stores/malls due to higher standards of hygiene and attractive ambience.
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b) HEALTH & BEAUTY PRODUCTS
With growth in income levels, Indians have started spending more on health and beauty products .Here small, single-outlet retailers dominate the market. However, in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market , their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products .
c) CLOTHING & FOOTWEAR
Numerous clothing and footwear shops in shopping centers and markets operate allover India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time. d) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However, there is considerable potential for the entry or expansion of specialized retail chains in the country. e) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer
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electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. f) LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers.
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THE RETAILING BOOM

In the past years, a lot has been written about the so-called revolution in the Indian retail sector and the boom it has supposedly been experiencing.
Magazines of all genres have routinely come out with cover stories on this subject though most of the time, their coverage has been almost unanimously based on the growth of a few leading retail businesses e.g. Shoppers Stop, Trent (Westside), RPG Group (Food world, Music world, Giant), Pantaloon/Big Bazaar, Landmark Group (Lifestyle) and a handful of others.
Again, most of the time, the euphoria has been largely been based on the metro, upwardly mobile consumer. No wonder, despite all the about the retail revolution in India, the share of the "organized" retail remains an insignificant 2 per cent or so of the total consumer spending in India.
Is it, therefore, a wasted effort to write one more column on this subject? It is believed that this time, there are some very interesting signs of fundamental change in the consumer and retail business environment in India that are likely to give an unprecedented momentum to the growth of modern retailing in India.
First significant change is that in all the cities where modern retail formats have made some presence, the average Indian consumer has given them a big "thumbs up" by and large. Giant and Big Bazaar are some of the more recent examples that are drawing in consumers across a wide swath of socio-economic classification.
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The rapid growth of Big Bazaar (soon to be joined in by expansion of Giant, and a likely entry of Trent/Tata Group later this year in a similar format) testifies this, and in turn, this will lead to many other major business houses in this sector very shortly. The consumer appreciation has not only been limited to the national players.
Specialty players like Loft (footwear retailing), Vijay Sales and Vivek (consumer durable retailing), Fab India (clothing/accessories) and even local players (e.g. Bombay Selection and Mehrasons in Delhi) have been able to draw consumers from the traditional high streets to new swanky malls and/or modern, large footprint stand-alone stores.
Hence, the growth in organized retail is no longer determined only by the growth plans of the existing national players -- new entrants as well as local/regional players making rapid expansion beyond their traditional markets will be actually driving the growth now.
The second significant change is that from the end of 2004 and through almost 2007, India will see the coming to market of new, large shopping malls almost every week. Next year alone is likely to have at least 50 new malls ready for opening, and 2006 seeing opening of as many as 150!
The year 2006 may see another 100 or more ready for possession. This makes entry into retailing far easier for almost all kinds of entrants, for almost all kinds of formats and scale of operations. The rentals are likely to settle down at about Rs 40 -Rs 60 per sq ft per month making most retail businesses financially very viable. Scaling up will also is easy for the new entrants once they have got their initial business models right and resources (financial and human) put in place. The easier availability of space will therefore encourage retail start-ups in high potential categories such as food and grocery, consumer durables, furniture and furnishings, jewellery etc.
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Financial resources themselves would be very easy from 2004 itself. The forthcoming IPO of Shoppers Stop is likely set very encouraging benchmarks for raising capital from the primary markets, and thereby attracting adequate interest of various categories of investors including VCs to look at funding retail ventures at various stages.
The fourth significant change is the likely entrance of many leading international brands/retail businesses in India initially through the franchising route, and subsequently through direct retailing route when the FDI policy on retail is liberalized (hopefully soon after the next general elections).
With
the
increased
attractiveness of India, many top international brands are
reportedly poised to make an entry into India this year. These may include Calvin Klein,
Tommy Hilfiger, Athlete's Foot, Tiffany, Bvlgari etc. More are evaluating options, and should make their presence in 2005 and beyond, creating a multiplier effect in various formats and product categories giving
further stimulus to growth of organized retailing.
At last, therefore, we can rightly say that Indian retail sector may well see an onset of a revolutionary phase and very rapid growth can be forecast in the immediate future.
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RETAIL MARKETING BRINGS MODERNIZATION IN

THE PEOPLES LIFE
Its have everything what everyone want and have fun for some time you feel bore when you can have window-shopping too. Everyone feel comfortable and regarding budget all are well calculated everything is displayed and itemized there will be a effect but this is minimized by the way he has done shopping because shopping at bazaars makes purchasers mind something like a person are going to buy something modern, stylish, safer, you can ask for replacement, worthy and no irritating at the time when you want to buy anyone can choose from multiple items so no one feel this wont show any effect may be 2 or 3 % but it feel that is not a effect and now way days everything in kirana and big mall are almost same but mall are more always safer and satisfied its almost something like coming for shopping and having short picnic with family or friends.
It
is
arguably
the
most
glamorous store in the world; its also an instantly recognizable global brand universally associated with luxury and quality.
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Shopping Malls
The new shopping malls that have been expanding their footprint across Indian cities are well designed, built on international formats of retailing and integrated with entertainment and restaurants to provide a complete family experience. Over 300 malls are expected to be built over the next two years and most Indian cities with over a million populations will be exposed to this modern method of retailing.
Shopping malls have existed in India since several decades but were designed and built to house several shops in a single facility. These malls also known as Shopping Arcades offered only rows of shops, most of which were small stores that promised bargains for their various wares. These Shopping Arcades tried to maximize on their store space and did not offer any areas for recreation and entertainment. The present day malls are a creation of the past few years post 2000. They are designed professionally using a lot of international experience and combine
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shopping with a lot of brand building, recreation, food and entertainment. Malls also have a large format store that serves as their anchor for shopping and a prominent restaurant that anchors the food needs of visitors. Most malls also feature a multiplex cinema that offers entertainment to the visitors of the mall. Finally, the mall has large atria and open spaces to allow visitors and families to hangout.
These new format malls are coming up in all the major cities of India. The cities that are seeing the first rush of malls are New Delhi, Noida, Gurgaon, Chandigarh, Mumbai, Pune, Bangalore, Ahmadabad, Chennai, Kochi, Hyderabad, and Kolkata. The next run-up of the malls will be the second level cities of India that includes Visakhapatnam, Coimbatore, Trivandrum, Raipur, Bhopal, Surat, Jaipur, Kanpur, Luck now, Ranchi, and Dehra Dun.
The new malls are airconditioned and have spacious areas and accesses, which make them a true breath of fresh-air from the earlier arcades and shop line streets that used to be the available options for Indian customers.
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Definition
A mall is defined in the Webster Dictionary as "a large self-service grocery store selling groceries, food products, and household goods". It was also defined in a court ruling at the State of New York Court of Appeals in 1971 as "A Retail Market that sells foods, convenience goods, and household merchandise arranged in open mass display."
Malls: The new face of retail market Robust GDP growth, stronger currency reserves and ever-improving market and operating environments are propelling the Indian market through a period of stellar growth and the retail community is
responding with newer formats and innovative of products. has The shown a
economy
India
remarkable increase driven by overall political and social stability.
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The decade-old economic reforms have engendered a new, shop-till-you-drop breed of middle class Indians who, having tasted the shopping experience of big cities overseas, have fuelled a demand that was inevitable -- the rise of the shopping malls. Centrally air-conditioned malls with piped music, high-speed lifts and escalators, underground parking space, a multiplex movie theater, multi-cuisine restaurants and a host of national and international brands, these malls generates approximately 25,000 footfalls each, per day, with figures doubling on weekends.
Sobha Group has set its eyes on launching the largest retail mall in the country. Retail Biz tracks the unprecedented move that is ready to add a new chapter in the history of Indian retailing. It is estimated that there are 450 malls in various stages of development across India, 60 in the greater Delhi area alone. This trend has attracted several major global retail players to India. International style shopping has finally come to India - and with a splash.
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WALK FROM TRADITIONAL MARKETS TO SHOPPING MALLS...

A new idea whose time has come when arrives cannot be bunged by anyone. Especially when it proposes an essentially finer monetary and behavioral value scheme to its clientele, it gradually takes over the old way, and other stakeholders have no option but to acknowledge and transform accordingly. Modern retailing is one such inevitable reality, which has started taking a spin in the traditional retail scenario and is soon liable to capture the retail sector and further enhance its compass. All elements in the delivery chain better accept it and prepare, rather than trying to rob the customers of a superior way of life by promulgating fallacy and protecting stakes.
The question, which then arises in the face of this foreseeable change, is the future of the traditional outlets (Kiranas) with a network so intense that most of us have a kirana store within five minutes of our residence. The Kiranas also operate on a low-cost model with family-owned properties (an extension of the house), with most of the family working in the store itself. They cater to impulse needs at short notice, and early opening and late closing times, which suit many families. The supermarkets on the other hand propose an elite ambience with economy for all sectors of the society.
This paper deals with the dilemma of calling this confrontation - competition or conflict. Both rivalries have competitive advantages. The kirana will have a low cost structure, convenient location and customer intimacy. Modern trade large outlets will have product width and depth, disintermediation and technology. Like in any competitive market, the smartest survives and the consumers win.
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Indian retailing is unorganized and due to its feudal structure and inefficiency need for Organized Retailing is being felt day by day. Organized retailing not only
provides better customer services but also facilitates easy and smooth handling for the government. At the same point of time if FDI is also approved in Indian Retailing, it would not only streamline the retailing of India, but would further accelerate expansion of markets. There is enormous scope for foreign players in Indian economic
conditions, and if somehow FDI be extracted, it would supplement not only the customers by better services but also the government by capital inflow, generating employment and by becoming big source of tax revenue. The Transformation
In the last five years, (2001-2006) Indian retailing industry has seen exceptional augmentation. Where the country was in the dominance of unorganized retailing, the organized retailing sector has now emerged in a momentous way and is contributing significantly to the growth of Indian retail sector. It is predicted that organized retail will form 10% of total retailing by the end of this decade (2010). Cultural and regional disparity in India is the major challenge in the face of retailers. Therefore, there is a scope for a variety to formats to co-exist in India.
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EXAMPLE
Every person wants changes in their life. From this example, it is clear that how person has changed their mind according to the life style. The example: Absolutely, without any doubt the mall culture has
gripped Indians and they seem love every bit of it. In the early, no one has thought that our every need will be satisfied under one- roof mall in. there is various numbers of people that had thronged the place. It seemed to be some kind of a huge people procession out there.
In earlier days (about a decade back), if you wanted to do any kind of shopping, one had couple of places to go (or should I say streets) like Laxmi Road or Main street (every city has shopping streets like these, especially in the downtown area), where small shoppers line up across the roads. Bargaining to extract the best price was common place- and it had its own charm too.
However,
everything
has
changed now. The younger and older generation alike prefers
buying stuff from huge malls where one not only gets variety, but also quality too at moderate prices. Even for your everyday grocery, buying superstores have come up at every nook and corner
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Supply chain and logistics management: key to success in RETAILING
"Interdependence is a higher value than independence"

As rightly said by Stephen Covey, the value of interdependence is as much important in the business of Retail as it is important in the business of life. Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape, the retail sector is poised for a big leap.
Currently retail sector in India accounts for Rs. 55,000 crore ($12.4 billion) business at current prices in the calendar year 2006, increasing its share to 4.6% of the total Indian Retail Value that stood at Rs. 12,00,000 crore ($270 billion). With the potential of crossing Rs 2, 00,000 crore ($45 billion) business by the Year 2010, generating employment for some 2.5 million people in various retail operations and over 10 million additional workforce in retail support activities including contract production & processing, supply chain & logistics, retail real estate development & management etc.; the retail sector is growing at a scorching pace of about 37 percent in 2007 and expected to grow by 42 per cent in 2008. With this enormous growth, the retail sector is also facing challenges on the fronts of escalating real estate cost, scarcity of skilled workforce and structured supply of merchandise.
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FUTURE GROUP
Future Group is the country's leading retail business group that caters to the entire Indian consumption space. It operates through six verticals: Future Retail (encompassing all lines of retail business), Future Capital (financial products and services), Future Brands (all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media spaces).
Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, etc
Future Group is working on the vendor network as well as the logistics network. The company has identified up to 40 anchor vendors, each with turnovers of US$45 million, to achieve economies of scale. The group is also keen to ensure that its smaller vendors are able to reach turnovers of around US$1 million and a growth rate of 40% annually, to be able to pass on the benefits of scales. The company is also working towards bringing its 1,200 vendors online, like Wal-Mart.
Going further in this direction, the Future Group has also launched Future Logistics initially aimed at handling the supply chain logistics of the group. However, sensing immense opportunity in this area, the company is now looking to offer its services to its 1000-odd vendors, spread across consumer related goods, to reach a targeted turnover of about Rs.700 crore by 2010.The thrust at present will be on modes of surface transport like roads and rail only. However, at a later stage, sea and air modes might also be considered as per the requirement, said sources.
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In India, Future group derives significant economies of scale in managing their supply chain. With more than 170000 products, the company maintains a strong supplier relationship in a partnership mode, avoiding the exploitative supplier buyer transactional philosophy. The IT enabled back-end operations and supply chain management increases the reliability and efficiency of the business.
As part of the operation, Future Group is also undertaking to reduce its warehousing costs through a consolidation process. In a country like India, where most retail stores are located in the heart of the citywhere rents are high and storage space is scarcesupply chain management has even more serious business implications. Future Logistics now handles two-and-a-half million SKUs (or stock keeping units) a day across the Future Group's various retail formats around the country. By 2010, this number is expected to increase to more than 30 million SKUs a day. Even with 98% accuracy, some 600,000 pieces will not be delivered correctly, resulting in an estimated sales loss of more than Rs 4 crore a day.
The biggest driver in consumer logistics is going to be zero defects in managing the supply chain. While
infrastructure,
technology,
automation,
processes and people will all play an important role, zero defects can only be achieved through vertical integration across the entire supply chainfrom raw material supply, production, wholesale and retail. Here is an attempt to simplify the analysis of a retailing company.
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COMPETITIVE FORCES
In an attempt to understand the retail industry in India, an analysis of the industry has been done using the five competitive forces as started by Michael porter. The five forces model is a strategic tool that is used to analyze the attractiveness of the industry structure. The five fundamental of competitive forces:
Entry of competitors:
The case of entry for competitors to enter the market
and to start competing and the barriers to entry which may exist.
Threat of substitutes: The ease, with which a product or a service can be substituted, especially made cheaper. Bargaining power of buyers: The position of the buyers, can they work together to gain efficiencies buying.
Bargaining power of supplier: The position of the sellers. Do many suppliers exist or is there a existence of only a few suppliers. Rivalry among the existing players: the level of competition between the existing players, the size and the strength of the players in the industry.
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Bargaining power of suppliers
Potential Entrants
Threat of new entrants
Buyers
Industry competitiors rivalry among existing firms
Suppliers
Threat of substitute profits or services
Subsitutes
Bargaining power of buyers
Threat of new entrants: In the case of retail sector, there exists a high threat of new entrants as the sector itself is in a nascent stage and is growing. Limited barriers to entry exist. Government regulation of FDI in the country can be seen as a barrier to entry. Other barriers to entry may be the inability to build economies of scales, substantial capital requirements in terms of investment in store location , high costs in terms of supply chain efficiencies etc product differentiation or the lack of product differentiation could also be seen as a threat to entry. Threat of substitutes: The presence of substitute products can lowers the attractiveness and profitability because they limit price levels. The threat of substitute products is a function of the buyers willingness to buy a substitute product
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and is influenced by the relative price and performance of substitutes and the cost of switching to substitutes.
In Indian retail, the threat of substitutes is very high. The unorganized retailing in India is still the largest wherein cheaper versions of products are available this still services most of the middle and poor income families in the country. Bargaining power of suppliers: The price at which the product is available to the retailer for selling to the end consumer is very important in retail, as it plays a large role in the actual profitability. If suppliers have high bargaining power over a company, then the companys industry is less attractive.
The suppliers to the retailing industry are the companies who provide the finished products to make various retail products. The bargaining power of suppliers varies from the products suppliers. The bargaining power of suppliers is low because there are large numbers of potential suppliers in the market. Therefore, the prices become competitive. The emergence of private labels in apparel and food has infact played role in controlling the bargaining power of supplier. Bargaining power of buyers: The bargaining power of buyers I greater when there are few dominant buyers and many sellers in the industry, the products are standardized and the suppliers do not threaten to integrate forward into the buyers industry.
In retail, the bargaining power of buyers is fast increasing and can be termed as a moderate to high, depending on the product or service. The buyers are most powerful in the retailing industry. In an age of informed
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consumers, meeting the buyers expectation in terms of product, price and service is increasingly becoming difficult. Intensity of rivalry: The intensity of rivalry between competitors in an industry depends on the structure of competition for example, rivalry is more intense where there are many small or equally sized competitors; rivalry is less when an industry has a clear market leader.
In case of the retail sector in India as is in many parts of the world, is a highly fragmented sector. Retailers need to take these factors into consideration and work towards creating economies of scale. The time span needed to achieve the critical mass will be crucial in the ability to build a competitive edge over competitors. Retailer will also need to focus on recognizing industry trends early and building the ability to covert them in the market place. Standardization of needs and wants of the consumer in divers market like India.
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Life cycle in RETAIL

The concept of product life cycle as explained by PHILIP KOTLER is also applicable to retail organizations. This is because the retail organizations pass through identifiable stage of innovation, development, maturity and decline. This is what is commonly termed as the Retail Life Cycle. Attributes and strategies change as institutions mature. The Retail Life Cycle is a theory about the changes through time of the retailing. It is claimed that retail institutions how an S-shaped development curve through their economic life. The S-shaped development curve has been classified in to four main phases:
Profit Maturity
Growth Innovation Decline
Innovation: A new retail organization is born; it improves the convenience or creates other advantages for the final customers, which differ sharply from those offered by other retailers. This is the stage of innovation, where the
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organization has few competitors. Since it is a new concept, The rate of growth is fairly rapid and the management fine-times its strategy through experimentation. Levels of profitability are moderate and this stage can last up to five years, depending on the retailer. Accelerated growth: The retail organization faces raped increases in sales. As the organization moves to stage two of growth which is the stage of development, a few competitors emerge. Since the company has been in the market for while, it is now in a position to pre-empt the market by establishing position of leadership. Since the growth is imperative, the investment level is also high, as is the profitability. This stage can last from five to eight years. However towards the end of this phase, cost pressures tend to appear. Maturity: The retailing still gores, but competitive pressures are felt acutely form newer forms of retailing that tend to arise. Thus, the growth rate tends to decrease. Gradually, as markets become more competitive and direct competition increases, the rate of growth slows down and profits also start declining. This is the time when the retail organization needs to rethink its strategy and reposition itself in the market. A change may occur not only in the format but also in the merchandise mix offered. Decline: The retail organization losses its competitive edge and there is a decline. In this stage, the organization needs to decide if it is still going to continue in the market. The rate of growth is negative, profitability, declines further and overheads are high.
The retail business in India has only recently seen the emergence of organized, corporate activity. Traditionally, most of the retail business in
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India was constituted of small owner-managed businesses. It is hence difficult to identify a retail organization which has passed through all the four stages of the retail life cycle.
Bit a few years ago, most cities in India had a few independent retailers in the private sector.
Example: Mumbai had sores like Akbar allys, premsons. Amarson, big bazaar etc the store initially offered apparel, imitation, jewellery, cosmetic perfumes and home fashion. It also had a customer loyalty programme, place, which many stores at that time did not offer.
A retailer can succeed in moving back to the growth phase after reaching it stage of maturity with a certain format and a certain mix of products.
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RETAIL marketing mix

The basic function of retail is to provide the right goods to the consumer, at the right place and time, however, in todays competitive world.
How does a retailer inform the customers about the product that he has an offer?
How does he lure them to visit and hop at his store?
How does he achieve the sale stages?
The marketing tools that a retail organization uses to pursue its marketing objectives are termed as the retail marketing mix. Let see the components of the retail marketing mix:
Product:
One of the main elements of the retail marketing mix is the products or the services that the store offers to the customer. Products are also termed as merchandise. The different products that the store offers are together termed as the merchandise mix. A merchandise line consists of a group of products that are closely related because they are intended for the same end users are sold to the customer group or fall within the same price range. For example, if It considers the menswear section at a department store, the merchandise line would comprise of formal wear, casual wear, accessories etc
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Product
price
Customer service
Place/location
Presentation
Promotion
People
Retail marketing mix The variety of the merchandise mix refers to the number of different merchandise lines that the retailer stock in the store. Thus, the merchandise lines in department store would be menswear, ladies wear, childrens wear, home fashion, jewellery etc the same in case of a grocery retailer would comprise of cereals, pulses, personal care products, ready-to-serve foods, packaged goods like biscuits, snacks etc Price: Pricing is an integral part of the retail marketing mix. The price policy that the organization decides to follow depends on the customer which the target audience for its range of products. It also depends on whether the product of ten is unique or has other substitutes available. The various
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pricing policies that a retail firm can adopt, which deals with retail merchandise.
Place: For a very long time, the location of the retail store was considered to be the most important elements of the retail marketing mix. However, with the advances in technology and the advent of television shopping.
Promotion: The advertising budget, sales promotion, publicity and public relation play a very important role in the competitive world of retailing. Retailers need to develop a communication strategy includes with their target market and the products that they stock in the store.
Presentation: The manner in which the merchandise is presented at the store level is very important. This aspects not only deals with the store layout and the ambience created, but also with visual merchandising, visual merchandising is the orderly, systematic and intelligent way of putting stock on display in the retail store. Many large retail organizations employ visual merchandisers to aid the store in the function.
Customer service: The support services that a retailer offers have become very important today. The credit policies and the product returns policies need t5obe clear not only the sales staff, but also the end customers. Relationship marketing, customer relationship management are the new
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buzzwords in the industry today and all these are aimed at enhancing the customer service. People: Retailers operate in a unique environment. The retail industry is characterized by a large number of inexperienced workers, ho need to put or long hours of work. Most of the time, these employees are in direct contact with the customers and they face irate or unreasonable customers.
The people who work at the front-end of a retail organization are very important, as they are the face of the origination for the customers. Their attitude, behavior, manners and product knowledge plays a very important role in building long-term relations with the customers.
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CUSTOM RETAIL DISPLAY STANDS

Successfully displaying collectibles or merchandise comes down to one variable: location! Whether you are trying to effectively arrange a retail store or simply show off a collection of valuable coins, where the display case is situated will make or break your efforts. Working hand in hand with location to appeal to an onlooker is the specific type of display, meaning the materials used, the size, and the overall aesthetic value to the exhibit. Those in the retail business understand that dressing up a product is often the difference in a slow day and selling out. Customers should be impressed with the product from the moment they set eyes on it. This same concept can be applied to unique collectibles at home too. The key is showing off the product with an appropriate display. It can be difficult finding the perfect fit for whatever you are trying to show off. In order to get the most attractive setup for their product some retailers often use custom made display stands. No matter your needs, display cases should meet the standards of size, materials, general aesthetics, and overall harmony of the pre-existing room and its dcor. Typical manufactured display stands are produced in large quantities that are designed to fit a general theme, but rarely are a perfect match. In the retail world and in our homes this is just not good enough. Decorating styles within a home are well thought out and most times consistent throughout in order to reinforce a theme or common tie among the dcor. The best store designs that make people feel comfortable, reinforce the store branding, and show products well are done with custom display fixtures using matching colors and materials. The lighting on products can also be critical. Custom display fixtures allow specific supplemental lighting or many times spot lighting to show off merchandise in with dramatic flair.
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Additionally, custom display cases and custom retail stands can be designed for exact space requirements so the maximum amount of merchandise can be displayed per square foot.
Custom displays are made according to the exacting needs of the store owner. One can indicate the exact dimensions, material, finish, and color they would like. A good custom retail display company will work with its customer in designing the best fit for their desired location and product to display. Many of these displays will be manufactured from scratch and provide exactly the unique look you are in search of. If you are artistically inclined it is even possible to provide a sketch to the display maker and they will be able to produce what you have envisioned for the store or for showcasing at home.
There are hundreds of reasons why we would want to display a product or collectible. Many have perfected their methods by using custom display cases at a show, in a retail store, and often in their home. Regardless of where they are used, the results from using custom retail displays speak for themselves; give them a shot.
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THE CUSTOMER IS ALWAYS RIGHT... AND OTHER MYTHS

For too many years there have been some "accepted truths" in business. The belief in these "accepted truths" and the dogged determination by some "experts" to defend and cling to them have caused no end of problems in the workplace. Businesses have started and failed at an alarming rate. Why do they fail? The problem most of the time is that they are working hard on the wrong things. They are following the ratings of high paid "experts" who are building sand castles at low tide. They have bought into systems of "excellence" that don't work. Myth #1: The customer is always right WRONG! We know more about our own products and services than 90% of our customers can ever expect to understand. The customer seldom understands their needs as well as a salesperson might. Many years ago, a travel agent refused to book a customers family into a hotel an acquaintance had recommendeda hotel where the customer could "save some money." Jim explained, "You are already spending a lot of money on this trip. I won't book you into a cheap hotel that might wreck your vacation." Now the cynical will say, "Oh, he wanted the extra commission." But we drove by the original hotel and I can tell you we were glad Jim insisted we spend an extra $20 per night. Jim knew his business better than we knew what we wanted. Jim was just doing his job.
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Your employees already know that the customer is not always right. They have to deal with them every day. One of the quickest ways to hurt yourself is to adopt a policy that the customer is always right. Myth #2: "The customer is #1" WRONG! Your employees are #1! If you believe that your employees are not the most important people who step through the doors of your organization each day you are in trouble. If you are not letting your employees know that they are #1, you are doomed to failure! Bob Gee, a long time V-P of a major appliance distributor in Arkansas, tells the story of a retailer who explained that, "We can have the best products in the world, the most knowledgeable and best salespeople, the best price and credit policy in five states, but if our delivery guy gets grease on the customer's carpet and doesn't handle the situation right, we may never see her again. "Meanwhile the customer is being assaulted with choruses of "That's not my department" or "I'm sorry but company policy will not allow that." Employees at the same time are being trained to smile and listen carefully while the customer is exploding and spewing outrage all over the showroom floor. And I still hear managers and owners tell me "You just can't get decent help these days." Myth #3: Quality customer service is "Knowing what the customer wants and giving it to them" WRONG! Quality customer service is understanding the customers' expectations and then gaining a reputation for exceeding those expectations. If we assumed that the customer always knew what they wanted our world would look significantly different. We have to understand the customer's expectations and their perceptions of our business. If the industry expectation is that we can deliver a pizza in 20 minutes and we fail to do that, then the customer perception is that we don't take seriously our commitment to service..
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Myth #4 "Our mission is to make a profit WRONG! Our mission is to grow and survive. To paraphrase, Peter Drucker "Profits are like food, we need them to live but they are not our reason for living." Making a profit is far too shallow an incentive to be the mission of our organization. Try to draw a mental picture of your employees leaping from bed each morning with one enthusiastic thought in their mind, "Oh Boy, another opportunity to go to work and make my bosses company a good profit!". Serve the customer first, then the profits will come. Customers and profits will come in direct proportion to our capacity and desire to give the customer more than they expect. Myth #5 "I need more satisfied customers " WRONG! "You want missionaries!" George owns and manages George's Distinctive Men's Wear in a prominent location in a major shopping mall. George is proud of his 12 years of success, he has many satisfied customers and his sales increase each year. George, however, is in trouble, his market share is going down and he can track a down turn in normal sales volume whenever his four major competitors in the mall have major sales events. George's customers are satisfied, but they are not necessarily loyal. They depend on George to give them quality at a fair price and them come back when it is convenient and when they need him. But they shop elsewhere when they think the prices will be better. Satisfied customers are fickle. If the customer only feels satisfied, he or she will likely continue buying from us until a competitor offers better price. Satisfied customers leave us all too often and for reasons we consider, unreasonable. That's why George needs to go past earning satisfied customers. He needs missionaries. Customers that not only shut out competitors but who also bring us more customers with their praise of our services cleaners. Ask yourself what they do to earn your respect. Now offer your customers the same level of service.
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RETAILING business scenario

Retail is such a part of everyday life that people often take it for granted, but it is one of the fastest changing, most dynamic industries in the world today. Today, perhaps more than ever before, retailing is a mirror of society. The diversity, variety & change in society offer an opportunity for retailers to respond and succeed. Retail today is a combination of revolution and evolution.
The retail industry will continue to evolve and change. With increasing interest in non-store retailing (catalogue shopping, online shopping, home delivery), companies will have to redefine and plan new shopping environments that make shopping experience as enjoyable as possible. While unique displays add flavor to the store's interior, merchandising displays help the customer learn about a product and to promote an impulse purchase and is much more preferable.
In order to survive in today's tough retail climate, companies must continually innovate in ways to create stronger, more direct links with their customers. At the same time retailers must focus on the most demanding customers who want customization, value and service. New store designs must assault the consumer's sense of sight, sound, Taste, touch and smell-preferably all at the same time. In this environment, merchandising and especially displays is more important than ever, as being top-of-mind will keep the brand growing.
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RETAIL STORE management tips

The job of a retail store manager is overseeing the everyday running of a retail store. Some of the key retail services performed by a retail store manager are: Meeting sales and personal targets as well as customer satisfaction via maximizing the shopping experience of customers; Managing all aspects of the operations of the store in order to ensure maximum sales as well as profitability. Retail management also includes focusing on key initiatives in business, daily cost control in operations, risk management, payroll management, loss prevention, inventory management, marketing execution, and store presentation. Retail store managers should have organizational
skills which includes the ability of paying attention to detail as well as following-up matters. The job also of involves the
capability
managing
multiple priorities along with management communication, skills like
recruiting,
training, and coaching. Here are some tips that can help you to become a successful retail store manager:
The customer is always right: Yes, that age-old saying holds true even today. The customer is the most important facet of any business. Hence, as a retail store manager you need to ensure that the whole team comprehends that, and behaves as if they do.
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Make the customer feel special: Everybody likes feeling special. So, when you are with a customer, give him or her your exclusive attention, listening closely to whatever they may be saying to you. During that time dont let anything else interrupt you.
Please the customer: Although this is touted often, it is seldom practiced. As a retail store manager, see to it that the sales staff does that extra bit to make the customer feel pleased, especially as a measure of calming their displeasure about something. For instance, some special store giveaways can be packed with their purchases.
Promise less and deliver more: You have heard of the old saying Dont promise what you cannot deliver. Well, by giving more than whatever you may have promised, you can build a strong customer rapport, both inside as well as outside the retail store.
Appearances do matter: Although you may dismiss it as a superficial aspect of a superficial consumerist society, however, there is no escaping the fact, that the first impressions of the store, including the staff how they are dressed and how they behave do matter. People do care about the ambience of where they shop.
Display merchandise attractively: A vital part of retail store management is seeing to it that the merchandise is displayed properly. If the items are not displayed or seen properly, they wont be sold in the numbers that they ought to be. Merchandise should look crisp and new at all times. If the items are shop-worn, they should be put in the bargain section. Items that are usually bought on impulse should be placed on display close to the cash out area. Also, appropriate sections should be made for merchandise, and the items should be placed in the correct sections. Items that are similar in nature should be placed in the same area.
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Items should be shown to advantage: Apart from displaying merchandise attractively, as a retail store manager, you should also make sure that the items are placed in such a way that they draw the customers attention. Hiding or stacking merchandise will not attract the attention of the customer. When thinking about how to display items, try to imagine what the customers will view with the display. Placing merchandise at eye level, or a little lower than that, is the best way to display specials. Placards and signs are also another method of grabbing the eye of the customer.
Get rid of unsold merchandise: The bottom 10 to 20 percent of the product lines should be gotten rid of every year to be replaced by new products. The product lines that are not selling well should be marked down to half their price in order to sell them off fast.
Clear up shopping areas: While making racks and other display areas full, clear up other areas. According to studies it has been shown that having easy shopping areas results in more sales rather than having more racks and tables cluttering up the store.
Timely ordering of inventory: This is another important aspect of a retail store managers duties. The levels of inventory should be monitored and kept in adequate amounts at all times. If customers do not find what they are looking for, they will just go to another store. Hence, the store manager must keep track of the inventory constantly.
Hire the right people: A retail managers success is largely dependent on the kind of people he/she helps to hire. The staff that is hired has to have the ability of making a quantifiable and meaningful contribution to the stores performance. In order to be able to rise in the organization, the store manager has to draw the attention as well
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as the recognition of the top management. The correct people will help in showcasing their talents while they achieve their objectives. In order to get the best out of the rest of the team, the store manager has to be able to keep them motivated.
Training the staff: However, hiring the right kind of people and keeping them motivated is just a part of a retail store managers path to success. Part of a retail store managers job is to train the staff so that they are aware of what is expected of them. This will ensure that all the people involved in the success of the store move in the same direction.
Incorporating time management skills: After hiring the right people, training them fully, and getting them ready to achieve success, the next thing a retail store manager has to take care of is managing their time along with the changing priorities they have to deal with each day.
Long range planning: Therefore, a retail store management job involves long range planning so that every hour of every day in a week is managed effectively. The skill of long range planning is what will be appreciated by the top management, for they look for people who have the ability of looking forward, and creating concrete plans, in order to increase the business. A retail manager who can accomplish this will rise in the organization.
Retail software: These days, there are many retail software that are available which provide scalability, data integrity, stability, and speed offering a complete retail management solution, which can be adapted according to each type of doing business. From inventory management to Point of Sale (POS) ticket entry to customer tracking, integrated purchasing, and monitoring the movement of merchandise, retail software provides all the capabilities required to run a retail store business more effectively and efficiently.
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Top 10 RETAILERS in India

Miss D'souza rubs her nose as her specks annoy her; she calls out to Shanta Bhai. I am leaving for work; please make sure you do the vegetable shopping today, as I will be getting late. Shanta Bhai mutters & just nods. Oh god, I will have to go and bargain with these bhajiwalas because madam is so particular about the price. Then she realized actually its not such a bad thing, a new supermarket is open nearby. Ill go there, roam in the mall and also shop in convenience of AC and no bargaining also. Grocery shopping will actually be fun! In the supermarket, she realized they had good price bargains and was thrilled. She was going to earn some brownie points with Ms D'souza for purchasing at such cheap rates. Our very own Shanta Bhai signifies the Indian consumer of today who wants the right price, ambience and good quality all under one roof. The lifestyle and mindset-change of the Indian customer has led to a spur in the retail industry with the total private consumption in 2006 clocking Rs.20,000 billion according to the Indian Retail Report 2007. Cities like Mumbai, Bangalore, New Delhi, Hyderabad, and Pune have around 40 malls as of today, which is expected to touch 250 by 2010 (KPMG report). The Indian retail industry is valued at $270 billion, with organized retail cornering 4.5 %. The organized pie is expected to see a growth at a CAGR of 37 % (India Retail Report 2007).
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Source: India Retail Report
Top players:
1. Pantaloon Retail: It is headquartered in Mumbai with 450 stores across the country employing more than 18,000 people. It can boast of launching the first hypermarket Big Bazaar in India in 2001. An all-India retail space of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is not only the largest retailer in India with a turnover of over Rs. 20 billion but is present across most retail segments - Food & grocery (Big bazaar, Food bazaar), Home solutions (Hometown, furniture bazaar, collection-i), consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts (Depot), Health & Beauty care services (Star, Sitara and Health village in the pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling co.)
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One of their recent innovations include e-commerce hybrid format of small shops , the area for these stores will be 150 sq. ft. fitted with 40 digital screens. Customers will be encouraged to browse through the entire range of products on digital screen. They will be able to place the order, the delivery of which will be arranged by the shop to their homes within a few hours 2. K Raheja Group They forayed into retail with Shoppers Stop, Indias first departmental store in 2001. It is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group for Airport Retailing. Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs 6.75 billion. The first Hyper city opened in Mumbai in 2006 with an area of 1, 20,000 sq. ft. clocking gross sales of Rs. 1 bn in its first year. Crossword brand of book stores, Homes stop a store for home solutions, Mother care a concept stocking merchandise related to childcare are also owned by them. Recently, Rahejas have signed an MoU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing. The group has announced plans to establish a network of 55 hypermarkets across India with sales expected to cross the US$100 million mark by 2010. 3. Tata group: Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment of products at the lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Trent has more than 4 lakhs sq. ft. space across the country. Westside registered a turnover of Rs 3.58 mn in 2006.
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Tatas has also formed a subsidiary named Infiniti retail which consists of Croma, a consumer electronics chain. It is a 15000-17000 sq. ft. format with 8 stores as of September 2007. Another subsidiary, Titan Industries, owns brands like Titan, the watch of India has 200 exclusive outlets the country and Tanishq, the jewellery brand, has 87 exclusive outlets. Their combined turnover is Rs 6.55 billion. Trent plans to open 27 more stores across its retail formats adding 1.5 mn sq ft of space in the next 12 DLF malls. 4. RPG group: One of the first entrants into organized food & grocery retail with Food world stores in 1996 and then formed an alliance with Dairy farm International and launched health & glow (pharmacy & beauty care) outlets. Now the alliance has dissolved and RPG has Spencers Hyper, Super, Daily and Express formats and Music World stores across the country. RPG has 6 lakhs sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006. It is planning to venture into books retail, with the launch of its own bookstores Books and Beyond by the end of 2007. An IPO is also in the offering, with expansion to 450+ Music World, 50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010. 5. Landmark group: It was launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakhs sq. ft. with a turnover of Rs 3.5 billion in 2005. A new division named Lifestyle International has emerged for their international brands business comprising Bossino, Kappa and Springfield in their portfolio.
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Their retail mix includes Home solutions (Home centre), fashion (lifestyle, landmark International), value retailing (max retail), hypermarkets & supermarkets (Max), kids entertainment (Fun city). They plan to invest Rs. 300 crores in the next two years to expand on Max chain, and Rs 100 crores on Citymax 3 star hotel chain. They have already instituted a separate company christened Citymax Hotels (India). 6. Piramal Group In September 1999, Piramal Enterprises
announced their arrival into retail with the launch of three retail concepts: India's first true shopping mall of international standards, called Crossroads; a lifestyle department store named Piramyd Megastore; and a family entertainment centre known as Jammin. Piramyd Megastore and Jammin were anchor tenants for Crossroads (recently sold to Pantaloon for Rs 4 billion). In 2001, the group entered the business of food & grocery retail with the launch of TruMart supermarkets in Pune. They have around 18 TruMart stores covering 1.90 lakh sq. ft. registering a turnover of Rs 37.6 mn in 2005. Piraymd Megatsores contributes more than 70 % to their retail mix with a turnover of Rs 112.8 mn. They plan to open 150 stores covering 75 mn sq ft of retail space in the next 5 years. 7. Subhiksha Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It has more than 500 stores across the country covering a retail space of more than 1 million sq ft with a registered turnover of Rs 3.34 bn in 2006. It has a planned investment of Rs.300 crores to ramp up its operations to 1200 stores by 2008.
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New but potential BIG players 8. Bharti-WalMart Their plans include US$ 7 bn investment in creating retail network in the country including 100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint venture agreement with Walmart. Wal-Mart will do the cash & carry while Bharti will do the front-end. 9. Reliance Indias most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000 cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by 2009-10. There are already more than 300 Reliance Fresh stores and the first Reliance Mart Hypermart has opened in Ahmadabad. The next ones are slated to open at Jamnagar, followed by marts in Delhi / NCR, Hyderabad, Vijayawada, Pune and Ludhiana. 10. AV Birla Group They have a strong presence in apparel retailing through Madura garments which is subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen Solly, Peter England, Trouser town. In other segments of retail, AV Birla Group has announced investment plans of Rs 8000 - 9000 crores in the first 3 years till 2010. The acquisition of Trinethra (food & grocery) chain in the south has moved their tally to 400 stores in the country. Their More range of 15 supermarkets are slated to open at Nashik, Pune and other tier II cities in Western India in 2007.
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Impact of RETAIL INDUSTRY

Retailing is a `technology-intensive' industry. It is quoted that everyday at least 500 gigabytes of data are transmitted via satellite from the 1,200 point-of-sales counters of JC Penney to its corporate headquarters. Successful retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and thereby, save cost. Wal-Mart pioneered the concept of building a competitive advantage through distribution and information systems in the retailing industry. They introduced two innovative logistics techniques - crossdocking and electronic data interchange.
Today, online systems link point-of-sales terminals to the main office where detailed analyses on sales by item, classification, stores or vendor are carried out online. Besides vendors, the focus of the retailing sector is to develop the link with the consumer. `Data Warehousing' is an established concept in the advanced nations. With the help of `database retailing', information on existing and potential customers is tracked. Besides knowing what was purchased and by whom, information on softer issues such as demographics and psychographics is captured.
Retailing, as discussed before, is at a nascent stage in our country. Most organized players have managed to put the front ends in place, but these are relatively easy to copy. The relatively complicated information systems and underlying technologies are in the process of being established. Most grocery retailers such as Food World have started tracking consumer purchases through CRM. The lifestyle retailers through their `affinity clubs' and `reward clubs' are establishing their processes. The traditional retailers will always continue to exist but
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organized retailers are working towards revamping their business to obtain strategic advantages at various levels - market, cost, knowledge and customer. With differentiating strategies - value for money, shopping experience, variety, quality, discounts and advanced systems and technology in the back-end, change in the equilibrium with manufacturers and a thorough understanding of the consumer behaviour, the ground is all set for the organized retailers.
It would be important to note, however, that the retailing industry in India is still a `protected industry'. It is one of the few sectors which still has restrictions on FDI. Given the current trend in liberalization, it will not be long before the retailing sector is also thrown open to international competition. This will see a further segregation of the international retailing brands and the domestic retailers, thereby injecting much greater dynamism into the market. That will be when the real action will begin.
Major retailers in India
Indias top retailers are largely lifestyle, clothing and apparel stores.
This is followed by grocery stores.
Following the past trends and business models in the west retail giants such as Pantaloon, Shoppers Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores.
These Wal-Mart wannabes have the economy of scale to be low medium cost retailers pocketing narrow margin.
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RETAILING SCENARIO-INDIA:
The retail scenario in India is unique. Much of its is in the unorganized sector, with over 12 million retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than 500 sq.ft. In size, the per capita retail space in India being 2 sq.ft. Compared to the US figure of 16 sq.ft. Indias per capita retailing space is thus the lowest in the world. With more than 9 outlets per1,000 people , India has the largest number in the world. Most of them are independent and contribute as much as 96% to total retail sales.
Because of the increasing number of nuclear families, working women, greater work pressure and increased commuting time, convenience has become a priority for Indian consumers. They want everything under one roof for easy access and multiplicity of choice. This offers an excellent opportunity for organized retailers in the country who account for just 2% (and modern stores 0.5%) of the estimated US $180 billion worth of goods that are retailed in India every year.
The growth and development of organized retailing in India is driven by two main factors lower prices and benefits the consumers cant resist. According to experts, economies of scale drive down the cost of the supply chain, allowing retailers to offer more benefits offered to the customer.
The retail business in India in the year 2000 was Rs.400,000 crore and is estimated to go to Rs.800,000 crore by the year 2005, an annual increase of 20%.The contribution of the organized retail industry in the year 2000 was Rs.20,000 crore and is likely to increase to Rs.160,000 crore by 2005.
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GROWTH OF RETAIL OUTLETS IN INDIA:
India is rapidly evolving into a competitive marketplace with potential target consumers in the niche and middle class segments. The market trends indicate tremendous growth opportunities. Global majors too are showing a keen interest in the Indian retail market. Over the years, international brands like Marks & Spencer, Samsonite, Lacoste, McDonalds, Swarovski, Dominos among a host of others have come into India through the franchise route following the relaxation of FDI (foreign direct investment ) restrictions. Large Indian companies among them the Tata, Goenka and the Piramal groups are investing heavily in this industry.
Organizations ready to take on this challenge can leverage the opportunities offered by a population of more than a billion. The prospects are very encouraging. Buying behaviour and lifestyles in India too are changing and the concept of Value for Money is fast catching on in Indian retailing. This is evident from the expansion of the pantaloons chain into a large value format, Big Bazaar, and the entry of new discount stores in food retailing in the South, namely, Subhiksha and Margin Free.
TRENDS IN RETAILING:
The single most important evolution that took place along with the retailing revolution was the rise and fall of the dotcom companies. A sudden concept of `nonstore' shopping emerged, which threatened to take away the potential of the store. More importantly, the very nature of the customer segment being addressed was almost the same. The computer-savvy individual was also a sub-segment of the `store' frequenting traffic.
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Internationally, the concept of Net shopping is yet to be proven. And the poor financial performance of most of the companies offering virtual shopping has resulted in store-based retailing regaining the upper hand. Other forms of non-store shopping including various formats such as catalogue/mail order shopping, direct selling, and so on are growing rapidly. However, the size of the direct market industry is too limited to deter the retailers. For all the convenience that it offers, electronic retailing does not suit products where `look and see' attributes are of importance, as in apparel, or where the value is very high, such as jewellery, or where the performance has to be tested, as of consumer durables. The most critical issue in electronic retailing, especially in a country such as ours, relates to payments and the various security issues involved.
Recent trends include:
Retailing in India is witnessing a huge revamping exercise. India is rated the fifth most attractive emerging retail market: a potential goldmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion. As per a report by KPMG the annual growth of department stores is estimated at 24%. Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney.
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Opportunities in Indian organized RETAIL SECTOR

The opportunities in Indian organized retail sector are many for this sector is witnessing a boom.
The retail industry in India amounted to US$ 200 billion in 2006, and out of this amount the Indian organized retail sector amounted to US$ 6.4 billion. The opportunities in India organized retail sector can be judged from the fact that by 2010 it is expected to rise to US$ 23 billion.
The various opportunities in the organized retail sector in India are mainly there for the Indian consumers behavior pattern has changed. Now the Indian consumer gets more hefty pay- packages, is younger, a large number of women are working, western influences, and more disposable income have opened a lot of opportunities in Indian organized retail sector. The Indian consumer wants to shop, eat and get entertainment in one place and is have also given Indian organized retail sector an opportunity to grow.
The Indian government in 2005 allowed foreign direct investment (FDI) in single brand retail to 51%. This have opened up a lot of opportunities in India organized retail sector. In fact 325 departmental stores, 300 new malls, and 1500 supermarkets are being built which shows the tremendous opportunities in the organized retail sector in India.
Many Indian companies seeing the various opportunities in organized retail sector in India have entered it. Pantaloons have decided to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Reliance Industries Limited is targeting for annual sales of US$ 25 billion by 2011. It is planning to invest
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US$ 6 billion in order to open 1,500 supermarkets and 1000 hypermarkets. Bharti Telecoms is planning a joint venture with Telco a global retail giant worth 750 million.
The opportunities in the organized retail sector in India have also increased with the desire of many global retail giants to set up shop here. The global retail giants who are entering the Indian organized retail sector are:

Tesco Wal- Mart Metro AG Carrefour SA
The opportunities in Indian organized retail sector are varied and it must be fully exploited by the Indian retailers.
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BIG BAZAAR
{Detail Story}
India's answer to global hypermarkets like Wal-Mart and Carrefour is right here in Big Bazaar - India's first hypermarket chain in the lines of global discount chains. BIG BAZAAR, the hypermarket chain was introduced in India by Pantaloon Retail (India) Ltd in the year 2001 in Calcutta and was followed by stores in Hyderabad and Bangalore in a short span of 22 days. Today there are more than 20 Big Bazaars all over India with an average of 40,000 Sq. ft. area (1, 40,000 Sq. ft. in Malad) Jo bazaar mein milta hai, who sab yahan milta hai, is how Rakesh Biyani, Director, Pantaloon Retail (India) limited describes Big Bazaar. The Bazaar is a term commonly used for the market or marketplace. Whenever any of us need anything, the simplest way to go is to go to the Bazaar. Big Bazaar represents a location where a customer can shop for anything that he needs, for which he would normally visit a bazaar or the market.
Findings:
Big Bazaar is very well positioned. One of the successful ventures of big bazaar Food Bazaar is also very successful. Big Bazaars annual income is more than that of Pantaloons. Big Bazaars annual promotional expense is almost double to that of Pantaloons. In addition, the stores are very well maintained where as the cleanliness is considered and Big Bazaar also has a customer help desk at the entrance of the store.
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In addition, customers can find many sales executive willing to help during their shopping.
CUSTOMERS FEEDBACK
THIS SURVEY DONE BY BIG BAZAAR
1.
How often do you go for shopping? Regularly Monthly Half- Yearly Yearly
2.
What do you generally buy? Clothing Jewellery Leather Articles Cosmetics Gift Articles Others (please specify)
3.
Where do you normally go for shopping? Shoppers Stop Pantaloons Linking Road Big Bazaar
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4.
What makes you visit all this stores or place? Product Range Service Quality Ambience Price Brand Name
5.
Have you ever tried Bargaining at this Branded Retail outlet?
6.
If not (why?)
7.
DO you think collection changes according to fashion? (please specify)
8.
Do you think Branded retail gives you value for your hard earned
money? Yes No
9.
Any suggestions/improvements for any particular Retail outlet
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Customers Feedback
The following Feedback big bazaar has got is form 20 people almost all of whom have visited all the stores. This will give you a general publics perception of the stores and also retailing at these stores. 1) How often do you go for shopping? People were not really sure whether they did go for shopping monthly or yearly. Majority of them said it all depends on the mood or even on some special occasions. 2) Where do you normally go for shopping?
20 18 16 14 12 10 8 6 4 2 0
This was a multiple choice question. What I conclude from the graph is that people do visit all the stores. But the graph clearly shows that largely people like to visit Pantaloons for their shopping. The major competition is between Pantaloons, Lifestyle
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3) What do you generally buy?
20 18 16 14 12 10 8 6 4 2 0
clothing
Jewellery
Leather Articles
Cosmetics
Gift Articles
All the stores being exclusive brands in clothing most of the people go to the store to buy the same. Along with that, things such as cosmetics, gift articles and leather articles also had a reasonable but less demand.
4) How do you rate the following: (for each store) Ambience Price Quality Variety Salesmen behavior
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In this question customers rated the shopping experience at all the stores according to the following five criterions: a). Ambience got a rating of an average 7 which clearly shows that it is quite well maintained in all the stores. Akbar allys got the least rating and big bazaar, pantaloons, lifestyle and Shoppers Stop all are very close to each other. b). Price is a very discouraging factor at all the stores. An average rating of just 2 makes obvious the expensive nature of all the stores. Only Big Bazaar got the best rating. c). Quality got an extensive high around of 8.5 which shows that the standards maintained at the store are quite high. Pantaloons got the best rating followed by Shoppers Stop, Lifestyle and Westside d). Variety getting a rating of 7.5 illustrates that the customers has ample range of products to choose from. e). Salesmen Behaviors was rated as low mean of 4 which indicates that the customer-employee relationship is quite undeveloped. In this category again Akbarallys and Westside losing out badly with rating of just 1 and 3 respectively, big bazaar has got good rankings 5) DO you think collection changes according to fashion in all the stores?
18 16 14 12 10 8 6 4 2 0
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6) DO you think Branded retail gives you value for your money? A) Considering the review, 75% of the total customers agreed that, Yes, the store did give them the value for their hard earned money. But the rest 25% did not feel so. 7) Any suggestions/improvements for any particular Retail outlet? A) All the stores except for Big Bazaar should compromise on pricing, provide better guarantee on products and also improvement in the exchange policies.
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Conclusion
After analyzing the retail industry, I can conclude that Retailing has come to occupy a prominent position in todays modern society.inspite of the Indian are still through traditional trade.nevertheless, modern organized retail format is slowly gaining acceptance and can easily be said to be emerging as a sturdy contender among consumers. Typically, the evolution of the retail trade can be studied by having a look at four key components-consumers behaviour, trade structure, the retailer-manufacturer relationship and competition. it is said that organized modern retail has altered t he first paradigm of consumer behaviour the profile of the modern format shopper can easily be described as an affluent one with higher and more disposable income, although they face the paucity of time to explore a detailed shopping experience .however, such consumers have also revealed a willingness to pay a premium, provided they receive better service quality at retailed outlet Today the market sees more of organized retailing mainly due to the following reasons-increase in per capita spending by consumers, rapidly growing middle class and double income households, rising workforce with global trade, exposure of international taste and lifestyle though media, increase in the usage of credit and debit cards. Some of the factors attracting global retailers to India could be : improved living standards and continuing economic growth increase in Indias GDP,growth of retailing industry sheer size and potential on Indias consumer market, friendly business environment, growing spending power and brand conscious customers aspiring to own quality and branded products. The factors which have played a key role in the development and growth of the organized retailing industry are consumer pull, changes in social structure and consumer behaviour, retailers proximity to consumers, evolution of family owned
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establishments, emerging rural markets, changes occurring in retail scenario, global retailers call for FDI and corporate interest in retailing.
Big is beautiful. Malls are all very good for shopping, but the kirana store is for the odd quantities in life. Like when you need one-fourth of a packet of rice.
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Final Retailing

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Managing Retail Stores

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How Retail Developed

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The diversity of retailing is evident in he many forms this

commercial activity now takes, including hawkers vending machines, sales,

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TYPES OF RETAIL OPERATIONS:

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CLASSIFICATION OF RETAIL SECTOR

health &beauty products clothing and footwear

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b) HEALTH & BEAUTY PRODUCTS

c) CLOTHING & FOOTWEAR

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THE RETAILING BOOM

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attractiveness of India, many top international brands are

further stimulus to growth of organized retailing.

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RETAIL MARKETING BRINGS MODERNIZATION IN

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remarkable increase driven by overall political and social stability.

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WALK FROM TRADITIONAL MARKETS TO SHOPPING MALLS...

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changed now. The younger and older generation alike prefers

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Supply chain and logistics management: key to success in RETAILING

"Interdependence is a higher value than independence"

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The case of entry for competitors to enter the market

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Bargaining power of suppliers

Threat of new entrants

Industry competitiors rivalry among existing firms

Threat of substitute profits or services

Bargaining power of buyers

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Life cycle in RETAIL

Growth Innovation Decline

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RETAIL marketing mix

How does he lure them to visit and hop at his store?