Retailing in India Issues & Lessons to Learn

Ashish Kumar Sharma Krishna Murari Anjali Sharma (MITS, Lakshmangarh)

Open Up Need of the Hour

India No. 1 Retail destination Domestic demand-driven economy Objections of Parliamentary Standing Committee Need for huge private investment

India Most Attractive Retail Market

GRD Index Based on 25 variables Reasons Low inflation & rent reduction Increasing affluence & brand-conscience

India A Nation of Shopaholics

ICRIER Size of Retail business in India: $40 billion (Rs. 20 lakh crore) Expanding middle class New India loves to shop New brands being launched everyday Consumers spending a lot on entertainment & tourism Shopping is Fun Availability of world-class intl brands

The Retail Scenario in India The Threats Recession Threat to real estate business Media rumours New purchases on hold Rising input costs of steel, iron & building material Size of organised retail very small Size of malls small cant take benefits of economies of scale

Innovations in Retailing Lessons from the World

Aim Making Shopping joyful for customers Ito-Yokado (Japan) Convenient business hours (open 24 hrs), payment of utility bills, local taxes, insurance/pension premiums, in-store ATMs, photocopy facility & home-delivery service; larger store easier to shop

Innovations in Retailing Lessons from the World Sprint (Global Communications Service provider) In-store repair services, employee-host to assist customers, accessories near related devices, virtual queue, reservation system to meet a representative, accessory express lane

CRM in Indian Retailing An Innovative Strategy for Success To spend $ 1.7 b by 2010 on IT (like ERP systems) with CAGR of 44% Improve target marketing effectiveness of seasonal programmes and promotions Increase revenue per customer visit To predict consumer buying behaviour

Skilled Manpower The Workplace Challenge 2.1 million new jobs between 2002 & 2012 (increase of 14%) Retail Assoc. of India Need of professionals (Fin, IT, HR, Mktg) Search for people who enjoy working Solution Academic institutions to offer UG & PG programmes in the field of Retail Management

Conclusion
Retail industry in nascent stage but growing rapidly New formats emerging Entry of MNCs Factors affecting retail Changing customer demands, opening-up of markets, technological development and increasing competition Need for innovative ways to attract customers Alert to the changes posed by the dynamic nature of retail industry

THANKS