Retail Industry in Growing Stage

Salman Sadham Safarulla

RETAIL SECTOROVERVIEW

PRESENTED BY

SALMAN SADHAM SAFARULLA

ALLEN BOBBY KURIAN


WHAT IS RETIALING

• Retailing involves selling products and services to consumers for their personal or family use.

• According to Philip Kotler “Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non-business use.

• Retailing may be understood as the final step in the distribution of merchandise, for consumption by the end consumers.

• Retailers attempt to satisfy consumers needs by having the right merchandise, at the right price, at the right place when consumers want it.


• Retailers are the final business in a distribution channel that links manufacturers to consumers

• The word retail means the sale of goods or commodities in small quantities directly to consumers

• Retailing can be defined as a distribution channel function, where an organization, buying the products from supplying firms or manufacturing the products themselves, sells these directly to consumers. (Example: Fab India design clothing products under there brand itself)

• Through retail promotions they can build product demand and provide consumer feedback to the product marketer


GROWTH OF RETAIL SECTOR

• The size of Indian retail market in 2010 was estimated at US$ 353 billion and by 2014, it is expected to increase up to US$ 543 billion

• Further, the estimated value of current size of Indian retail market is about 500 billion USD and by 2020 its value is pegged to be at 1.3 trillion USD.

• Over 20 per cent of India's gross domestic product (GDP)is contributed by retail sector and in total employment it contributes eight percent


EVOLUTION OF RETAIL IN INDIA

• The journey of retail started long back through the Kirana store in India.

• This is first effort by local shopkeeper.• The shopping centre concept comes into the existence in

year 1869, with Mumbai Crawford market and Kolkata’s New Market in year1874.

• The underground shopping complex Palika Bazaar in New Delhi was established in the late 1970s and mini malls on the Bangalore's Brigade Road come into existence in 1980s.


CONTINUATION…

• Government of India entered into the rural India by franchisees called Khadi Bhandar.

• These stores serve as outlets for products made by village industry i.e. Khadi, matchsticks, incense sticks, decorative items made from wood and earth, ahinsak (non-violent) honey, ahinsak leather items etc.

• The industries came in the retailing in 1980s through dealer network.

• In 1980s, the big group of textile industry i.e. Raymond, S.Kumar, Bombay dyeing and Grasim came with this concept of retailing.


CONTINUATION…

• In the manufacturing sector, the pioneers were DCM group & Bata. Titan came with an organized retail concept and establishes number of showroom for premium watches.

• After the 2003, many other organizations either planning to come into the retail market through the retail store or initiated the establishment work.


Structure Of Retail Market In India

• Organised and Unorganised (Traditional) Retail• The total retail sector in India can be divided into

organized and unorganised sectors. • The trading activities undertaken by licensed

retailers are categorized as organized retailing. Licensed retailers are those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.


CONTINUATION…

• Unorganized retail or traditional retail on the other hand, include a large number of small retailers that consists of local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc


Relative shares of organizedand traditional retail in Indian retail market.


CONTINUATION…

• From the above long journey shows that organized retailing in India came through a long path and many changes. It means it is an evolution rather than sudden, revolutionary change.


DRIVERS OF EVOLUTION

• Accelerating Household Income in India• After the 1991, the income of the educated middle

class houses is increasing at the rate of 3.6%• It is expected that this rate will be 5.3% in future.• The rate of growth in the urban middle class is 4.6% as

compare to the growth rate in the rural middle class households

• It is also expected that average real household disposable income (income minus taxes, adjusted for inflation) will reach $6,977.


CONTINUATION…

• Change in Population Structure and Choice: • The Indian population structure is changing now. It consists

more than 60% of people who are below the 30 years.• The people (20-30 year age group) who affect the buying

pattern of the family are more than 20% of whole population.• After the 1991, the income of younger middle class is

increase at higher rate because of open of Indian economy• The choice of this new young middle class earning people is

also changing and they now shifted from local brand to global brand, Dhaba to Macdonald, bread to burger and most important is from money saving to money enjoying.


• Infrastructure development: • After 2003, India is recognized for all round

development in the important infrastructure sectors.• The government is investing hugely on the road, port,

aviation.• All these factors attract the foreign investor to invest in

retail sector.• Now, the reach of information has easier than previous

years because of the development in infrastructure i.e. Telecommunication, IT, Internet and satellite TV.


CONTINUATION…

• Now customer is more aware of the product and their features because of the Internet accessibility.

• The reach of satellite TV channels is helping in creating awareness about global products for local markets.

Allen Bobby Kurian

10 TOP WORLD’S LEADING PLAYERS

• Walmart• Metro AG• TESCO• Kroger• COSTCO• Schwarz• Aldi• Walgreens• The Home Depot• Target

WALMART

• WalMart is the world's largest company by revenue, according to the Fortune Global 500 list in 2014

• Walmart is a family-owned business, as the company is controlled by the Walton family

• founded by Sam Walton in 1962 and incorporated on October 31, 1969.

Allen Bobby Kurian

List of leading players in India`s organised retail market

• Here is the list of leading players in India`s organised retail market:

• Pantaloons Retail• Over 1000 stores across 73 cities in India and employs over

30,000 people. The flagship company of Future Group. The companies also operates in other retail segments such as - 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 andHealth village in the pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling co.) The turnover this year was 12500 crores.

Allen Bobby Kurian

CONTINUATION…

• K Raheja Group• They forayed into retail with Shopper’s Stop,

India’s first departmental store in 2001.• Shoppers Stop has a national presence, with

over 2.05 million square feet area across 39 stores in 17 cities.

Allen Bobby Kurian

CONTINUATION…

• 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.

• Another subsidiary, Titan Industries, owns brands like “Titan”, the watch of India and Tanishq, the jewellery brand. Sales turover was 197.13 crore.

Allen Bobby Kurian

CONTINUATION…

• RPG group• One of the first entrants into organised food &

grocery retail with Foodworld 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 Spencer’s Hyper, Super, Daily and Express formats and Music World stores across the country

Allen Bobby Kurian

CONTINUATION…

• Landmark group• Landmark Group was launched in 1998 in India;

currently owning 100 stores across various retail formats. The retail ventures of Landmark Group includes - Home Centre, Centrepoint, Babyshop, Splash, Shoe Mart, Lifestyle, Max, Lifestyle Department Stores, SPAR hypermarkets, Foodmark, Fun City, Fitness First, Citymax India etc. It is a 3.8 billion dollar company.

Allen Bobby Kurian

CONTINUATION…

• Bharti-Walmart• Bharti have signed a 50:50 percent joint

venture agreement with Walmart’ in which Wal-Mart will be taking care of cash & carry and Bharti will do the front-end. Further they plan to invest USD 7 billion in creating retail network in the country including 100 hypermarkets and several hundred small stores.

Allen Bobby Kurian

CONTINUATION…

• Reliance• The company owns more than 560 Reliance

Fresh stores and recently it has also launched Reliance Mart Hypermart. The company further plans to launch its hypermart in Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana region. The turnover was 4500 crore.

Allen Bobby Kurian

CONTINUATION…

• AV Birla Group• AV Birla Group`s brand portfolio includes brands such

as Louis Phillipe, Van Heusen, Allen Solly, Peter England, Trouser town. Also, Madura garments is subsidiary of Aditya Birla Nuvo Ltd. The recently acquired food and grocery chain of south, Trineth, has further increased their number of store to 400 stores in the country. The company also own ‘More’ supermarkets and hypermarkets. Currently it runs 600 supermarket and nine hypermarkets across India. The turnover was 1700 crores.

Allen Bobby Kurian

CONTINUATION…

• Metro• Metro Cash & Carry, the first company to introduce

cash and carry business, started its operations in India in 2003 with two Distribution Centres in Bangalore. Metro offers assortment of over 18000 articles across food and non food at the best wholesale prices. Currently Metro operates six cash and carry centres in Banglaore, Hyderabad, Kolkata and Mumbai.

Allen Bobby Kurian

CONTINUATION…

• Fabindia (or Fabindia Overseas Pvt. Ltd.)• Indian chain store retailing garments, furnishings, fabrics and

ethnic products handmade by craftspeople across rural India. Established in 1960 by John Bissell

• opened its first retail store in Greater Kailash, New Delhi. Today it has over 170 stores across India and abroad, and is managed by his son, William Bissell.

• The products of Fabindia are mainly sourced from villages helping to provide and sustain rural employment in India. They are currently produced by over 40,000 artisans and craftspeople across India. The hand-crafted products also encourage good craftsmanship.

Allen Bobby Kurian

SKILLS REQUIRED

• Retail is a popular industry, so it's imperative to find out what the in demand skills are, acquire these skills and give yourself a competitive advantage over your fellow applicants.

• Business Focus• Personal Effectiveness• Relationship Management• Critical Thinking

Allen Bobby Kurian

CONTINUATION…

• These competencies include a range of typical skills that employers are looking for in applicants, such as:

• excellent communication and interpersonal skills• good standard of IT and numeracy• effective influencing and negotiation skills• strong customer focus• ability to work under pressure and to tight deadlines• analysing and problem-solving skills• commercial awareness• flexibility• strong time-management skills• attention to detail• demonstrable leadership and management qualities

ROLES AND RESPONSIBILITIES

• Customer Relation Executive• Assistant Jobs• Salary for MBA Fresher starts from 15000-

25000 (Salary is Negotiable according to our performance)



• STORE MANAGER• you are responsible for all operational tasks in ensuring the

smooth functioning of the store. • This includes a lot of coordination between various teams.

For instance, you will be required to coordinate with the category managers to ensure the supply of various products,

• talk to the Human resources to handle the employee availability during various shifts, execute the requirements as detailed by the various departments within the company including marketing and legal.

• Anoop Sir in Fab India(Kottayam) is a Good Example



• Category Manager• The job of a category manager is to ensure

that the inventory level of the products in the category are kept at optimal levels.

• The category manager position is largely a supply chain position where you are required to handle demand effectively.



• Store Marketing Manager :• The job of the marketing manager in a retail store is

to coordinate and execute the various branding and marketing functions within the store.

• if your company has signed a deal with Nestle to promote their chocolates, then the marketing manager coordinates with the sales team of Nestle to procure the banner and is responsible for deploying these promotional campaigns within the store.

Work your way through the corporate ladder in retail.

REFERENCE

(A). Johree Rajan,Singh Ruhbani and Makhaniya Karan:”KIRANIZATION OF INDIAN MALLS: The Snow White and the Seven Dwarfs Effect”.

(B). The 2008, 2007,2006,2005,2004 A.T. Kearney global index development index

(D) www.indiainbusiness.nic.in

Retail Industry in Growing Stage

Retail

Transcript of Retail Industry in Growing Stage