The Retail Evolution

-Nishant Thacker

Retail Industry : Overview

Retailing
Worlds largest private industry US$ 6.6 trillion sales annually

Indian retailing
Largest

employer after agriculture - 8% of population Highest outlet density in world

Around 12 mn outlets

Still evolving as Long way to go

an industry

Evolution of Indian retail

Historic/Rural Reach Traditional/Pervasiv e Reach Government Supported Modern Formats/ International

Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas Weekly Markets Village Fairs Melas
Source of Entertainment Neighborhood Stores/Convenience Availability/ Low Costs / Distribution Shopping Experience/Efficiency

Evolution of Indian retail

Informal retailing Sector Typically small retailers. Evasion of taxes Difficulty in enforcing tax collection mechanisms No monitoring of labor laws
Formal Retailing Sector Typically large retailers Greater enforcement of taxation mechanisms High level of labor usage monitoring

Categories of Indian retail

Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and Glow, etc ITC: Wills Life Style Rahejas(ShoppersStop), Hiranandani(Haiko), cinemas) etc. Dedicated brand outlets Nike, Reebok, Zodiac etc Multi-brand outlets Vijay Sales, Viveks etc Manufacturers/ Exporters Pantaloons, Bata, Weekender

DLF(DT

Large Indian retailers

Hypermarket

Big Bazaar Vishal Mega Mart Giants Shoprite Star Lifestyle Pantaloons Piramyds Shoppers Stop Trent

Department store

Entertainment

Fame Adlabs Fun Republic Inox PVR

The Retail Store

A successful retail store is nothing more than a series of well connected and thought out plans, ideas and processes. The retail marketplace has fast become the domain of those who know how to use core strengths to dominate. Successful retail strategies are based on four primary areas:
- Product Selection

- Convenience - Shopping Experience - Price

Retailing Strategy

In setting goals for your retail business, you should consider the following: - The Owner's Personal Quality of Life - Sales - Profits - Customer Satisfaction - Suppliers - Employees - Image and Positioning

Keeping Check on the Trends

Watch for key trends that involve the following groups or topics:
Consumers Competition Economy Government Policy Technology Industry

Marketing Facets

From the list of objectives below, identify those that are applicable to your store:

Build short-term sales. Develop or reinforce your image and store concept. Provide information about your services or products. Increase customer traffic. Create interest and demand for unique/private label brands.

Visual Merchandising

Visual Merchandising is first and foremost a strategic activity that requires planning and analysis. Put your best-selling merchandise in your best-selling space. If you only do one thing with your store, make it professional. Your storefront, including your windows, must tell the right story about who you are as a retailer. Invest in proper signage to take your store to the next level.

Customer Satisfaction

Be confident that placing the customer ahead of profits will result in greater profitability. Customer service starts at the top of every organization with management's commitment to providing total customer satisfaction. The right staff, with the right skills and the right support, are needed to provide excellent front line service. Learn to listen to your customers to understand what they want, don't want and, most importantly, what they think of your store. Continually measure your service results.

Consumer Perspective
Survey done of 300 people. The data gathered through primary Questionnaire survey. Responses were surprising. Lets see what people say

Frequency to Visit the Super Markets

tim e
f ortnight once a month 17.86% 32.14% rarely weekly

3.57%

46.43%

Superiority of Giants
7.14%

su peri or
agree disagree neither agree nordisagree strongly agree

21.43%

32.14%

strongly disagree

25.00%

14.29%

Sales Promotions
sp
discount off ers draw sy stem 3.57% 14.29% 35.71% 10.71% f ree gif ts f ree home deliv ery others price packs

28.57% 7.14%

Media Influence
m e di a
circulars hoardings local TV 25.00% 35.71% newspapers others word of mouth

14.29% 10.71%

7.14% 7.14%

Shocking But True

Do you END UP BUYING WHAT YOU EXACTLY INTEND TO?
i nten d
no y es

42.86% 57.14%

Refreshments After Shopping?

refresh
no y es

28.57%

71.43%

Gender Influence
ge nd er
f emale male

42.86% 57.14%

What works the most?

100% 80% 60% 40% 20% 0% Layout Ease of Finding items Spacious Shopping Unlimited Selection Good Display

Unimportant

Most Important

Neutral

Recommendations
By providing a logical layout. Ensuring point of purchase. Providing good customer service. Ensuring good stock availability. Location (Primarily)

Thank You