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Authors:
Nidhi Phulwaney , research scholar, Indore, India. Contact:9755107896
Surbhi Jain, research scholar, Indore, India. Contact:9479826924
Swati Jain, research scholar, Indore, India. Contact:9407103999
Abstract:
In todays era, retailing has emerged as a magnificent sector enjoying great
success.This sector is growing at a very great pace, inducing lots of
competition for all the retail operators be it a small colony outlet, mom and
pop store, supermarket, departmental store or a giant shopping mall. Its
influence covers all the retailers and to survive and grow in such competitive
retail era, retailers have come up with astonishingly huge variety of new
trends,emerging today.
In this study,such new trends of retail marketing have been studied.Retail
sector has been categorized into 11 areas of retailing. These include food and
groceries, fashion and apparel, etc. Each of these sub-sectors, have been
studied and the changes in their marketing systems and trends have been
analyzed using secondary data.The focus of this study is to throw some light
on the changes in the marketing tactics as well retail related trends.This will
be helpful for the retailers to understand the intensity of growing competition
and retail happenings so as to make further strategies accordingly.Not only
the retailers, but the customers can also be facilitated by the study.Knowhow
of recent trends,ways of shopping as well as the facilities or add-on
techniques of shopping offered by retailers may help the customers.
------------------------------------------------------------------------------------------------------------------------Key words: retailing trends, retail marketing, retail sub-sectors
Retail market of India is expected to cross 1.3 trillion USD by 2020 from the
current market size of 500 billion USD. In modern times, retail is expected to
grow up about six times from the existing 27 billion USD to 220 billion USD,
for all categories and segments. Indian retail sector is hastily growing,
accommodating numerous changes in its system as well.
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300
200
100
0
2006
2011
2016
There are several factors that drive the organized retail sector. Few of them
include the following:
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The India retail market was US$ 470 Bn in 2011, accounting for nearly 35% of
GDP and is now expected to reach to US$ 675 Bn by 2016, at CAGR of 7.5%
organized market
90
80
70
60
50
40
30
20
10
0
organized market
2006
Literature Review
2011
2016
few key success factors have been identified like local market adaptation,
right real estate, getting the right partner, differentiation through service and
many more.
To
To
To
To
owing to changing customer mind set and the emerging trends of retail
trade in India.
Research Methodology
Research design : The research design is descriptive in nature where the
details related to Indian retail system has been studied and discussed using
secondary data.
Data collection : Secondary data has been used from the various existing
reports and the existing literature have been studied.
Data analysis : No statistical tool of analysis is used. The content and
statistics mentioned in the reports and the information provided in the
literatures have been self analyzed.
60
50
40
total market
30
organized
market
20
10
0
2006
2011
2016
was US$ 5.5 Bn in 2011 and is probable to grow to US$ 8 Bn by 2016, @ 8.5%
CAGR
60
50
40
total markeyt
30
organized market
20
10
0
2006
2011
2016
18
16
14
12
10
8
6
4
2
0
total market
organized
market
206
2011
2016
very less scope of discrimination for retailers in this segment except the
servicing.
5. Jewellery Retail
Jewellery would now be a need as an extravaganza and not for mere
investment purpose. Treating it as a luxury need would require for more
special designing and best quality. It is now seen as a symbol for moving
towards upward trend in lifestyle and social status. This leads to
consciousness of customers about what they buy and from where. Hence,
exclusive brands of jewellery will be of great interest.
The recent trend of possessing unique pieces through ordering customized
jewellery is time consuming. So, customers now move onto designer finished
masterpieces readily available. This will require retailers to maintain
appropriate inventory as well enhance the purchase environment through
visual merchandising.
Also, customers would instead of demanding precious jewellery like that of
precious gems or diamonds, they would prefer costume jewellery. Precious
jewellery would have decreased shelf life as compared to costume jewellery
that act as accessories with the apparels relevant to the event or occasion.
Men will also have their interest in luxury destinations where they are availed
with diamond watches or other accessories with precious gems.
Customers today, have reduced their preference for weight of the jewellery
possessed, instead the trend of having more number of pieces has gained
momentum . Therefore, the masterpieces with low weights will take place in
the shelf, so that customer can frequently buy such low weight designer
pieces and increase their possession in numbers to use them alternatively.
The Jewellery & Watches market in India is estimated to grow to US$ 44 Bn by
2016, @
50
40
30
total market
20
organized
arket
10
0
2006
2011
2016
jewellery
18
16
14
12
10
8
6
4
2
0
total market
2006
2011
2016
Quick service
7. Beauty Services
This service segment faced a gradual shift from US$ 0.6 Bn in 2006 to 1.3 in
2011 and is expected to reach USD$ 3 Bn in 2016. This segment highly enjoys
customer loyalty. Customers prefer their loyal service providers in case of
beauty. Experimented variations are also preferred nowadays which creates a
space for new comers, providing distinguished services, using new gadgets
and technology at affordable prices. Few high class people might also prefer
them at premium prices. Concept of packages or price bundling is preferred
significantly nowadays. New stylist may also open up their private label
services especially the international ones. WOM (word of mouth) and
attractive service environment with personalized tips and guidance, works
well with beauty services.
3.5
3
2.5
2
total market
1.5
1
0.5
0
2006
2011
2016
Beauty
services
8. Specialty Retailing
This includes eye wears, books, stationeries, gifts etc. online conversion of
these items have come up in order to enhance their sales like e-gifts, e-cards,
e-books , e-vouchers etc. Customized and personally availed services are
more preferred and new service providers are expected to increase.
25
20
15
total market
10
organized
market
5
0
2006
2011
2016
speciality
The Food & Beverages Services in India is likely to grow US$ 16 Bn by 2016,
at 12.5% CAGR. The organized market in was US$ 1.5 Bn in 2011 and might
grow to US$ 6 Bn by 2016, at CAGR of 30%.Youth of India are bending
towards such items increasingly. The trend of small instantly planned parties
increases their consumption. Beverage manufacturers should ensure their
availability in the retail outlets. Loyalty towards such items is generally not
present and hence, their availability, offers, celebrity endorsements etc may
enhance their preference. Variations in food and beverages are also
welcomed nowadays. conventional taste and presentation should be replaced
with new ingredients, new flavors as well as distinguished complimentary
items.
18
16
14
12
10
8
6
4
2
0
total market
organized
market
2006
2011
Food and
beverages
2016
50
40
30
total market
20
organized
market
10
0
2006
2011
2016
electronics
3
2.5
2
1.5
total market
1
0.5
0
2006
2011
Health and
2016
with customers and customers might also purchase items available in the
shop.
Conclusion
This paper studied the scenario of various retail segments in India to highlight
the emerging as well as upcoming trends and practices. The major findings
include that the consumption pattern of customers and their requirements are
drastically changing. Customers require personalized services in beauty and
fitness segment whereas readily available masterpieces with less weight
Suggestions
Here are the suggestions for the retailers to undergo practices that would
help them differentiate themselves and grow in the times when retailing in
India is facing frequently changing trends.
preferences.
Adopting e-commerce platform
Strong or aspirational Brand creation and management
Increasing customer experiences.
Local market adaptation
Differentiating through services provided.
Developing local supply chain
Wide product range.
Appropriate pricing scheme.
Limitations
This study has several limitations though it has been undertaken to the best
of efforts. These are
Time limitation was a big challenge for analyzing the topic of the study.
The study relates to the customers analysis and trends of India only.
References
Barta,S. et al(n.a.).Trends in retail trade,Oklahoma cooperative
extension service AGEC 565,Oklahoma state university