It Is Easy To Open A Store - The Hard Part Is Keeping It Open!

"It is easy to open a store -- the hard part is keeping it open!
"
Respect Excellence Team Focus Accountability
Innovation Leadership
INTRODUCTION
 French word ‘RETAILER’- ‘to cut a piece off’ or ‘to break bulk’
 Retailing is the sale of goods and services to the ultimate consumer for personal, family or household use.”
 According to Kotler: “Retailing includes all the activities involved in selling goods or services to the final consumers
for personal, non business .e”
 “
EVOLUTION
Innovation
Leadership OF RETAIL IN
INDIA
Historical/rural Traditional Government Modern Formats/
research Research Supported International
Exclusive Brand
Outlets
Khadi Stores Hyper/Supermarkets
Convenience Store Cooperatives Department Stores
Weekly MarketsMom and Pop/ Shopping Malls
Village Fairs Kiranas
Melas
Availability/Low
Source of Neighborhood Costs/ Shopping Experience/
entertainment Stores Distribution Efficiency
INDIAN RETAIL MARKET
Innovation
Leadership
OVERVIEW
INDIAN
RETAIL
INDUSTRY
Organized Unorganized
Sector Sector
Corporate Chains Traditional Family run

Retail Chains stores
Franchise Organisation Corner Stores
FEWLeadership
MAJOR PLAYERS
Innovation
ORGANIZED
Innovation
Leadership
- CATEGORIES
INDIAN
InnovationLeadershipRETAIL
SCENARIO
 Worth US $416 billion and is expected to reach $850 billion by 2013.
 Growing at the rate of 30% annually.
 The sector contributes 10% of the GDP.
 Largest employer after agriculture - 7%* of population.
 Most fragmented in the world and only 5-7% of the entire retailing
business is in the organized sector.
 Highest outlet density in world. i.e around 12 million outlets.
 Source: http://www.ibef.org/industry/retail.aspx
FORMATS
Innovation
Leadership
IN RETAIL
Format Description The Value Proposition
Branded Exclusive showrooms either Complete range available
Stores owned or franchised out by a for a given brand, certified
manufacturer. product quality
Specialty Focus on a specific consumer Greater choice to the
Stores need, carry most of the consumer, comparison
brands available between brands is possible
Department Large stores having a wide One stop shop catering to

Stores variety of products, organized varied/ consumer needs.
into different departments
such as clothing, house wares,
furniture, appliances, toys,
etc.
Supermarkets Extremely large self-service One stop shop catering to
retail outlets varied consumer needs
FORMATS
Innovation
Leadership IN
RETAIL(contd..)
Format Description The Value Proposition
Discount Stores offering discounts on Low Prices
Stores the retail price through selling
high volumes and reaping
economies of scale
Hyper- mart Larger than a supermarket, Low prices, vast choice
sometimes with a warehouse available including services
appearance, generally located such as cafeterias.
in quieter parts of the city
Convenience Small self-service formats Convenient location and

stores located in crowded urban extended operating hours.
areas.
Shopping Enclosure having different Variety of shops available
Malls formats of in-store retailers, to each other.
all under one roof.
KEY LDRIVERS
Innovationeadership
 Rising incomes
 Change in consumer behavior
 The Rural Market: Waking up (GODREJ ADHAR ,

ITC –CHAUPAL, HARIYALI BAZAAR)
 Entry of corporate sector(RELIANCE , TATA)
 Foreign retailers seeking entry(MOTHERCARE ,

CARREFOUR, WALMART)
NEWLeadership
ENTRANTS
Innovation
Recent Trends …..
India vs. World
India has the highest number of outlets per capita in the

world - widely spread retail network but with the lowest per
capita retail space (@ 2 sq. ft. per person)
Annual turnover of Wal-Mart (Sales in 2009 were $421
billion) is higher than the size of Indian retail industry.
Almost 100 times more than the turnover of HLL (India's
largest FMCG company).
Wal-Mart - over 4,800 stores (over 47 million square
meters) where as none of India's large format store
(Shoppers' Stop, Westside, Lifestyle) can compare.
The sales per hour of $22 million are incomparable to any
retailer in the world. Number of employees in Wal-Mart are
about 1.3 million where as the entire Indian retail industry
employs about three million people.
One-day sales record at Wal-Mart (11/23/01) $1.25 billion -
RETAIL
Innovation
MARKETING MIX
Leadership
 Store location
 Visual Merchandising
 Store Ambience
 Customer Service
 Retail Pricing
SURVIVAL STRATEGIES
 Innovation
 Positioning
 Customer Service
 CRM
 Competitor Analysis
If you don’t take care of your customers, someone else will.

IThe keyLeadership
nnovation factor is innovation: stores
that do not change will perish.
POSITIONING STRATEGY
 Differentiate itself from the other organizations
competing for the same customers.
 Involves selling the store , not the merchandise.
 Gives the customer the reason to shop from your store
rather than the competitors.
 Match your retail mix to consumer expectations
 Exclusive Offers
 Store Hours
 Shopper-friendliness
 Salespeople
Customer service is not a department, it's an attitude!

WHATLeadership
Respect
DOES A RETAILER
Innovation
Excellence Team Focus Accountability
PROVIDE?
 Products/services
 Transfer of ownership
 Temporary use of store

facilities
 Delivery
WHATLeadership
DO CUSTOMERS
Innovation
PROVIDE?
Do’sL
Innovation eadership
 Put your customers first  Be fast and friendly
 Listen
 Help, Don’t sell
 Have Fun
 Be extra patient
 Be flexible
 Make your customers

 Brainstorm with
smile your team
 Put yourself in their

shoes
Don’ts
Innovation
Leadership
 I don’t know  That’s not my

department
 All sales are final
 I am new here
 You are wrong
 Hold on
 It’s over there
 I am busy right now

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"It is easy to open a store -- the hard part is keeping it open!

Corporate Chains Traditional Family run

 Growing at the rate of 30% annually.

 The sector contributes 10% of the GDP.

 Largest employer after agriculture - 7%* of population.

 Highest outlet density in world. i.e around 12 million outlets.

Department Large stores having a wide One stop shop catering to

Convenience Small self-service formats Convenient location and

 Change in consumer behavior

 The Rural Market: Waking up (GODREJ ADHAR ,

 Entry of corporate sector(RELIANCE , TATA)

 Foreign retailers seeking entry(MOTHERCARE ,

India has the highest number of outlets per capita in the

If you don’t take care of your customers, someone else will.

Customer service is not a department, it's an attitude!

 Temporary use of store

 Put your customers first  Be fast and friendly

 Make your customers

 Put yourself in their

 I don’t know  That’s not my

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