Arpit Tripathi

324304

Assignment - 1
Indian Retail Sector and its
Problem

Introduction:
India is the second quickest developing
economy on the planet. It is third biggest
economy on the planet as far as GDP and
fourth biggest economy as far as Purchasing
Power Parity. India displays a colossal chance
to the world at age, to use as a center point.
Remaining on the limit of a retail insurgency
and seeing a quick changing retail scene, India
is all situated to encounter the wonder of
worldwide town. India is the "guaranteed
area" for worldwide brands and Indian
retailers An "Energetic economy". India best in the rundown of developing business for
worldwide retailer and India's retail division is extending and modernizing quickly in
accordance with India's financial development. What's to come is promising; the business sector
is developing, government strategies are turning out to be more ideal and rising advances are
encouraging operations.
Retailing in India is step by step creeping its way toward turning into the following blast
industry. The entire idea of shopping has changed as far as configuration and customer
purchasing conduct, introducing a transformation in shopping in India. Present day retail has
entered India as found in sprawling strip malls, multi-storied shopping centers and colossal
edifices offer shopping, amusement and sustenance all under one rooftop. The Indian retailing
part is at an expression point where the development of composed retailing and development in
the utilization by the Indian population is going to take a higher growth trajectory. The Indian
population is witnessing a significant change in its demographics. A large young working
population with average age of 24 years, nuclear families in urban areas, along with increasing
working-women population and emerging opportunities in the services sector are going to be the
key growth drivers of the retail sector in India. Retailing in India is evolving rapidly, with
consumer spending growing by unprecedented rates and with increasing no of global players
investing in this sector. Organized retail in India is undergoing a metamorphosis and is expected
to scale up to meet global standards over the next five years. Indias retail market has
experienced enormous growth over the past decade. The most significant period of growth for
the sector was between year 2000 & 2006, when the sector revenues increased by about 93.5%
translating to an average annual growth of 13.3%.The sectors growth was partly a reflection of
the impressive Indian economic growth and overall rise in income level of consumers. Apparels
and consumer durables are the fastest growing vertical in the retail sector. Mobile phone as a
product category has witnessed the highest growth in the consumer demand amongst all retail
products offering, with increasing penetration of telecommunication in towns and villages. The
telecommunication sector has been adding on an average 5 million new users every month. The
other product categories are gaining traction predominantly in the urban areas and emerging
cities, with increasing average income and spending power of young urban India.
India remained as the most attractive market for third year in a row in an index prepared by At
Kearney. Retail sector is the largest contributing sector to countrys GDP.

INDIAN REATAIL SECTOR:

India represents to a monetary open door both as a
worldwide base and as a residential business sector.
The real GDP will grow at 8-10 percent for per
annum in the following five years and consumers
with yearly Household salaries above Rs. 90,000
will increase from around 370 million in 2006-07 to
620 million in 2011-12.
India's endless white collar class and its verging on
undiscovered retail industry are key attractions for
worldwide retail titans needing to enter more up to
date markets.
Meaning of Retail:
The word retail is derived from the French word retailer, intending to allow a piece off or to
some breathing room mass. In basic terms, it infers a direct exchange with the client. Retailing
can be characterized as the purchasing and offering of products and administrations. It can
likewise be characterized as the opportune conveyance of merchandise and administrations
requested by customers at costs that are focused and reasonable.
Retailing includes an immediate interface with the client and the coordination of business
exercises from end to end-right from the idea or outline phase of an item or offering, to its
conveyance and post-conveyance administration to the client. The business has added to the
monetary development of numerous nations and is without a doubt one of the quickest changing
and element commercial ventures on the planet today.

Modern Retail format in India:

HYPER MARKET
CASH & CARRY
DEPARTMENT STORES
SPECIALITY STORES
DISCOUNT STORE
CONVENIENT STORE

Challenges faced by Malls:

Malls are part of organized retail industry. With the growth of economy and rise is disposable
income of individual purchasing capacity is increasing. This is leading to opening of more and
more malls across the county.
Talent shortage to handle organized retail and lack of well-trained manpower.
Supply chains involved in retail sector are not so efficient yet and the quality which a
customer demand is not available yet.
Involvement of too many intermediaries in the whole supply chain process. Such long
intermediaries chains in the system are in turn increasing up their costs.
A plenty of clearances are needed for setting up retail outlet. It constrains the development of
retail outlets at a quicker pace.
Inefficient infrastructure, such as, electricity, posts, cord chains, roads which effects for a
pan-India expansion.
Organized sector still do not have industry status. It is further making it troublesome for the
players to raise reserves for their extension arranges.

Government limitations on
FDI point of confinement are
bringing about constrained
introduction to worldwide best
practices.
Malls remain empty on week
days and overcrowded on
weekends.

 Effect on the sale due to on line purchasing of

consumer
Low prices offered by online retailers hampers the purchase of goods form
a retail store.
Customer already know the prices of item available at a retail outlet. Ex. Mobile
The free home delivery where the goods are delivered directly to the
consumers place restrict consumers to go out and shop.
Attractive offers placed by online retailers again attract the customers.
Large variety of products available with online retailers push the consumer to buy from
the online site rather than from a retail outlet.
With introduction of online shopping Malls have become a place of time
pass for many where the customers come just for window shopping.

Promotional strategies

Any correspondence by a retailer that advises, induces, and/or reminds

the objective market about any part of that firm.

Posters: The crucial motivation behind a publication is the quick

recounting a solitary basic message utilizing a set number of
components.
Billboards: Place a huge blurb in the focal anteroom of Goodwin
Hall.

 Banners: A huge expansion of the publication, these can be

hung outside the corridor or in the mailroom or in an entryway.
Word of Mouth: And obviously, there is the time-respected
informal strategy. This is maybe the most established, yet best
approach to get the word out.
Systems networking destinations, Mass messages and
Bags.
o A retailer's area will help focus the objective territory for
advancements
o Retailers require elevated amounts of activity to keep stock
moving advancement helps fabricate movement
o Retailer's credit clients more store faithful and buy on bigger
amounts making them an incredible focus for advancements
o Advancements can expand short-run income
o Limited time inventiveness and style ought to correspond with
building and apparatus imagination

HR PROBLEM:
Following are some of the HR problem according to me faced by modern retail industry.

Recruitment: Its hard to get a good and talented employee in retail sector as the sector is
not considered as an industry.
Training & Development: There is no proper module and method for training and
development of employees and as a result employees are not compatible enough to
handle customers.
Admin & Legal compliances: The legal problems are common in retail industry.
Salary Management & Performance Management: Many a times employees are not
given salary on time due to decrease in sales for that month. Also there is no proper
method for performance management.

 Joining & Exit formalities

Retaining Employees /
Counseling / Grievance Handling