Emergence of New Retail Formats
Transcript of Emergence of New Retail Formats
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To study the emerging formats of retailing in
India
To study airport retailing in detail in the Indian
context To study the scope of airport retailing in Patna
Objective
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Secondary study- Internet & magazines
Primary study- Questionnaire
Survey area: Passenger at Patna airport
Sampling method: Convenient sampling Sample size: 30
Research Methodology
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ORGANIZED RETAIL IN INDIA
Source: Crisil Research All figures are in US billion $1$= Rs41
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High Income
Opportunities
Changing
Attitude
International
Exposure
Necessities to
Lifestyle
Service
Sector:
creating new
jobs.
Working
Population
Rising Salary
levels
From Save to
Spend
Highdisposable
income
Nuclear
Families
DINKS
(Double
Income No
Kids)
Exposure to
global
trends
Shift of expense
basket from
basics to lifestyle
products
Increased
spend on
Apparel and
entertainment
Easy Bank
credit boosts
retail
Market &
Government
FDI Policy
Tax policy
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Experi ent ti n itf rmat
Emergence f i counttores
Unorgani edretailingisgettingorgani ed
Experimentation itformats
Emergenceofdiscountstores
Unorgani edretailingisgettingorgani ed
Recent changes
Unorgani ed
Fragmented : Mostly small
individually owned businesses
Rural bias: Nearly two
thirds of the stores are located
in rural areas
Unorgani ed
Fragmented : Mostly small
individually owned businesses
Rural bias: Nearly two
thirds of the stores are located
in rural areas
Traditionally three
factorshaveaffected theretail industry
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CURRENT RETAILING FORMATS IN INDIA
Formats DescriptionKey categories
retailed
Typical
size Sq.ft.Example
Hyper
markets
Alarge superstore,combining a
supermarket and
departmental store,
Food, groceries,
apparel,
furnishings,
consumer
durables
15,000-100,000 Big Bazaar
Hypercity
Spencer
Vishal Megamart
Super
markets
Alarge self service
outlet offering food
and household
goods
Food, groceries
medicines 3,000-15,000FoodWorld,
Food baazar
Convenience
stores
Small size, easily
accessible stores
offering a quick
shopping
Food, groceries
medicines500-2,000 In&Out
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CURRENT RETAILING FORMATS IN INDIA(CONTD.)
Formats DescriptionTypical
size Sq.ft.Example
Speciality
Store
Focus on a specific
consumer need
apparel, watch,
music,
jewellery1,000-5,000
Tanishq,
Raymonds
Planet M
Music world
Factory
outlets
Off price stores of old
season stocksApparel 1,000-5,000 Primus
Madura garments
factory outlets
Key categories
retailed
Departmental
stores
variety of
Merchandise
organised into
Different
departments
Apparel,
accessories,
perfumes
10,000-50,000 Shoppers Stop,
Lifestyle,
Pantaloon,
Westside
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NEW RETAIL FORMATS
Rural retailing
E-Retailing
Direct Retailing/Door to Door retailing
Retail Kiosk Retailing
Catalogue and Mail Order Sales- Retailing
Airport Retailing
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RURAL RETAILING
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FEATURES OF RURAL RETAILING
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PROBLEMS IN THE RURAL MARKETING
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ROLE OF RURAL RETAILING
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DEVELOPMENT IN RURAL RETAILING
RURAL MALLS: CHAUPAL SAGAR
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E- CHOUPAL
Farmers
Sanchalak
Uses net
provides spot
quotes
If price right
farmer take the
produce to ITCcollection centre
SanyojakCoordinates a
group of villagers
Performs
documentation
work
Supplies inputs
from ITC to
Sanchalak
ITC
Factory
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OTHER RURAL RETAIL MODELS
Project Shakti - Hindustan Lever Ltd's (HLL)
rural self-help group initiative to push the
penetration of its products to reach areas of low
access and low market potential.
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FUTURE OF RURAL RETAILING
The business model successful only when
profit + social motive
The model should empower the rural consumer
and create of demand
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E-RETAILING
Retailing using a variety of different technologies
or media
Traditional
store
Direct
mail
Technology
E- retailing
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PROCESS OF E-RETAILING
Consumers find a product of interest
Shopping cart software used
A"checkout" process followed
Consumers allowed to sign up for a permanentonline account
The consumer receives e-mail confirmation
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CHALLENGES OF E RETAILING
Controlling customer data
Integrating on- and off-line order
Delivering the goods cost-effectively
Handling returns
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MODELS OF E-RETAILING
E-Retail + Traditional Retail Operations (Clicks-
and-Mortar): Shoppers stop
E-Retail + Catalogue Operations: Landsend.com
E-Retail + Web Site Content: Product reviews
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MAJOR E RETAILERS
Amazon.com: The domain amazon.com attracted at
least 615 million visitors annually by 2008 according
to a Compete.com survey.
E-bay.com:.
Buyers can bid on items of interest andall eBay users to browse through listed items in a
fully automated way
Indiatimes.com
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ADVANTAGES OF E-RETAILING
Convenient
Infinite shelf space available
Able to compare product price and features
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DISADVANTAGES OF E-RETAILING
Enjoyment of retail shopping lost
Privacy and security issues
Access to the Internet and computer necessary
Product category risk: purchasing on the Internetdecreases with increases in product risk
(Bhatnagar, Misra, & Rao)
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FUTURE OF E-RETAILING IN INDIA
Best model that works in India is -a combination of
retailing and e-tailing
Vishal retail launches online shopping portal.
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DIRECT RETAILING/DOOR TO DOOR
RETAILING
Face-to-face sales presentations at home or in the
workplace
Party plans: Hosting groups to view a product
demonstration and encouraging participants topurchase the products.
y Example: Eureka Forbes.
Send messages directly to consumers, without
the use of intervening media.
This involves commercial communication (direct
mail, e-mail, and telemarketing) with consumers
or businesses, usually unsolicited.
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ADVANTAGES OF DIRECT RETAILING
Personal attention to customer.
Convenience of time and place of presentation.
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RETAIL KIOSK RETAILING
Small carts
Located : high foot traffic area
Examples: The Redbox kiosk allows customers to
walk up and choose a DVDfor certain rental fee
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ADVANTAGES OF RETAIL KIOSK RETAILING
Ensures round the clock sales or service
Encourages self service
Reduces work load
Increases market reach: wide variety of users
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DISADVANTAGES OF MALL OR RETAIL KIOSK
RETAILING
Complex and technical transactions
Expensive
Disgruntled employees: sales commission
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CATALOGUE AND MAIL ORDER
SALES- RETAILING
Selling products via mail order
Example: Burlington, Klingle, Atto,
Spiegel, Together
Ability to reach hundreds of thousands of readerswith just one mailing .
Written, designed and mailed purposefully to a
particular target demographic
Because payment is received in advance, retailersmay not need to stock the merchandise and tie up
their cash flow.
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AIRPORT RETAILING
A R
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AIRPORT RETAILING
Traditionally, airport as a transition space betweenground and air transportation
Life in airports is changing.As time-strapped travellers
seek to use every minute
Today, airports are using spaces into revenue-generating
Travel experience begins when the customer enters the
airport
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Brand Identity for airports
Commercialisation
Rising F&B Demand
Uniqueness: local specialty, an exclusive area
specialising in local offerings
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Large groups of prospective shoppers
Captive audience
Strong sales per square foot of retail space
Strong sales of gift and travel items
Difficulty in replenishment
Longer operating hours
Duty-free shopping possible.
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AIRPORT STRESS AND ROLE OF AIRPORT
RETAILER
Research from Pragma Consulting
Focus on Shopping and
eating
Check
in
Time
Arrival Airport Flight
Anticipation/Excitement
Stress
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Apassenger currently spends less than $3
(Rs138) on average while shopping at Indian
airports, according to retail industry estimates.
The global average is $15.Although Indians are
compulsive duty-free shoppers outside, they are
shy of buying at terminals in India(Source: The
Hindu)
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AIRPORT RETAILING IN INDIA
According to a report published by Cushman and
Wakefield, airports globally earn nearly 50 per
cent of their revenues from non-aeronautical
sources, of which retail is the largest.
Airport privatisation : GMR (DIAL) non-
aeronautical revenues 35 per cent
Every premium brand in India is keen on
participating in the airport's retail zone.(Source:
GMR website)
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MEASURES ADOPTED BYAAI
Invited tenders for five-year duty-free shop contracts
Airports under the tender, including
Thiruvanthapuram, Kolkata, Chennai, Bangalore,
Hyderabad, Calicut, Gaya, Ahmedabad, and Goa.
The AAI has also identified 15 non-metro airports
includingAurangabad, Bhubaneswar, Coimbatore,
Vadodra, Varanasi, Vizag, Trichy, Rajkot, Port Blair,
Patna, Bhopal, Indore, Agatti, Nagpur, and
Khajuraho for development
Emerge as major tourist destinations where retailers
can also add regional flavours and continue to
generate revenue
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The target audience comprising of passengers, visitors
and escorts
Increase in the number of low-cost carriers
Foreign direct investment (FDI): possible in duty-free
products
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MAJORAIRPORT RETAILERS
Shoppers' Stop: The Nuance Group AG, 50:50 JV
Versace store:Versace home-line store at Indira
Gandhi International Airport
Caf Coffee Day : nine airport cafes, including NewDelhi and Bangalore, and tourist attraction centres
ofAgra and Jodhpur, Kochi and Coimbatore.
Croma: The 850 sq ft store is called Croma Zip. JV
with Australian retailer Woolworths.
Pantaloon: The Alpha-Pantaloon JV 7,000 sq ft at
Delhi's Indira Gandhi International Airport
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MAJORAIRPORT RETAILERS
Mithaas (confectionery):Bial
Kingfisher Sports Bar and restaurant
ITC's Kitchens of India range
Illy caf from Paris
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PATNAAIRPORT AND
RETAIL ESTABLISHMENT
Bookstore and a restaurant
No apparel store
Large parking area
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TRAVEL FREQUENCY
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HOW PASSENGERS SPEND TIME DURING
WAITING FOR FLIGHT
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PREFERENCE OF THE RETAIL STORES AT AIRPORT
Most preferred category of retail is Food followed by Menswear. (However,
the data is a little skewed because 28 out of30 respondents were males)
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PRODUCT PREFERENCE
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EXPECTED SERVICE
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FACTORS ATTRACTING PASSENGERS TO VISIT THE
STORES AT AIRPORT
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FACTORS PASSENGERS PREFER IN AIRPORT RETAILING
OVER MALL/HIGH STREET SHOPPING
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FINDINGS: AIRPORT RETAILING THE SUCCESS LOOP
National Brands
Hassle free
Environment &
Duty free
Merchandise
Store Ambience
&
Visibility
Food & Mens
Apparel
Full fledged
Customer
Service
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