kL1AIL

1nL ICUNL 8LGINS

Jf |s kef|| ?
1he selllng of goods Lo consumers ln small quanLlLles
and noL for resale
1e 3 en||es |n ref|||ng
Manufacturer
Retailer
consumer
lsLory
8eLall was prevalenL ln Chlna over 2200 years ago
wlLh a chaln of shops owned by a Lrader called Lo
kass
LxcavaLlons revealed LhaL reLaller chalns exlsLed ln
anclenL 8ome Lhen
RGN RETAL CHAN8
1ra[ans MarkeL 8ome 2006
1he markeL had shops whlch was used for selllng oll
wlnes seafood grocerles vegeLables and frulLs
BUSINESS STATEGIES
1argeL
markeLs
roducL
offerlngs
rlclng
sLrucLure
romoLlonal
emphasls
ulsLrlbuLlon
meLhod
Servlce level
Cwnershlp
Sr
No
kef||
Iormfs
Def||s Logos
Momfndop 8epresenL Lhe small lndlvldually
owned and operaLed reLall
ouLleL
k|rfnf Sores
2 D|scouners 1hese reLallers can be elLher
general or speclalLy
merchandlsers buL elLher way
Lhelr maln focus ls on offerlng
dlscounL prlclng
3 Cfegory k|||ers 8eLall chalns whlch have
expanded as speclalLy sLore Lo
creaLe large speclalLy sLores
4 Depfrmen
Sores
1hese reLallers are general
merchandlsers offerlng mldLo
hlgh quallLy producLs and sLrong
level of servlces whlch carrles a
wlde range of producLs from
hardware Lo cosmeLlcs
SrNo kef||
Iormfs
Def||s Logos
8ou|que A small store carrying very
specialized and often high-
end merchandise.
6 Cff|og
kef||ers
1hey have bullL Lhelr buslness by
havlng cusLomers place orders afLer
seelng producLs LhaL appear ln a
malled caLalog Crders are Lhen
dellvered by a LhlrdparLy shlpper
7 Lf||ers 1he mosL publlclzed reLall model Lo
evolve ln Lhe lasL 0 years ls Lhe
reLaller LhaL prlnclpally sells vla Lhe
lnLerneL
SrNo kef||
Iormfs
Def||s Logos
Irfnc|se A franchlse ls a form of
conLracLual channel ln whlch one
parLy Lhe franchlsor conLrols Lhe
buslness acLlvlLles of anoLher
parLy Lhe franchlsee who agrees
Lo pay for Lhe rlghL Lo use Lhe
franchlse name
9 Conven|ence
Sore
8eLallers caLer Lo offerlng
cusLomers an easy purchase
experlence Convenlence ls
offered ln many ways lncludlng
Lhrough easlly accesslble sLore
locaLlons small sLore slze LhaL
allows for qulck shopplng and
fasL checkouL
Sr
No
kef||
Iormfs
Def||s Logos
0

Vend|ng AuLomaLed meLhods for allowlng

consumers Lo make purchases and qulckly
acqulre producLs vendlng machlnes allow
cusLomers Lo purchase smaller lLems
such as beverages and snack food
producLs 1hese sysLems requlre Lhe
vendlng machlne have elLher lnLerneL or
LelecommunlcaLlons access Lo permlL
purchase uslng credlL cards

Malls lL ls so huge lL houses huge brands of

apparel accessorles food grocerles
resLuranLs LheaLers eLc
Slgnlflcance of WalMarL
Sam WalLons LalenL for dlscounL reLalllng made
Jf|Mfr e wor|ds number one ref||er
oint venture
olnLs 1o 8e noLed
Ind|fn |fw pro|b|s forelgn reLallers from |nves|ng d|rec|y |n
e ref|| secor
1hey have Lo s|gn frfnc|se fgreemen def|s w| |ocf| pfrners
1he wo|esf|e [o|n venure Lo be brfnded 8fr| Jf|
Mfr
1hey would |nves |n fn "eff|c|en supp|y cf|n"
1hls wlll enable llnklng farmers wlLh reLallers ln a counLry where
poor loglsLlcs causes more Lhan a Lhlrd of all fresh produce Lo be
wasLed before lL can be sold
Lessons for lndlan 8eLallers
R REACH
EEconomies in operations
T TECHNLGY
A AVALABLTY RE8&RCE8
- NNVATN
L LG8TC8
ConLd
Procurement of resources
ltt0vATlvF
THF STRATF6Y
SuCCFSS TFRH wAS
F0lP
LvL8? uA? LCW 8lClnC
Wal-Mart's advertisement
describing EDLP said:
"Because you work hard for
your every dollar, you
deserve the lowest price
we can offer every time you
make a purchase.
l06lSTlCS
THF Hu At0 SP0KF STRuCTuRF
%he first company to establish a fully-automated distribution center
oods were centrally ordered
Assembled at the distribution center
(hub)
From where they were dispatched to
the individual stores (spokes) as per
the orders received from stores.
nub
Spoke
Spokes Spoke
Economies of large scale Operations}
Explaining his pricing
strategy
Mr. Sam Walton said:
"You can lower your
markup but earn more
profits because of the
increased volume
TFCHt0l06Y
redit/debit Point of sale system Bar ode Readers
ard readers
kefc
kurf| peneerf|on
Shopper's SLop lndla's flrsL deparLmenLal sLore ln
200
00 [olnL venLure wlLh Lhe nuance Croup for
AlrporL 8eLalllng
Shoppers SLop's Lurnover 8s 67 bllllon
1he flrsL yperclLy opened ln Mumbal ln 2006
Area of 20000 sq fL
Cross sales of 8s bn ln lLs flrsL year
Crossword brand of book sLores
LsLabllshed ln 99 1renL one of Lhe
subsldlarles of 1aLa Croup operaLes WesLslde
1urnover of 8s 3 mn
lans Lo open 27 more sLores
1lLan lndusLrles owns brands llke 1lLan" Lhe
waLch of lndla
200 excluslve ouLleLs
1anlshq Lhe [ewellery brand has 7 excluslve
ouLleLs
1helr comblned Lurnover ls 8s 6 bllllon
8C has Spencer's yper Super ually and
Lxpress formaLs and Muslc World sLores across Lhe
counLry
1urnover of 8s 4 bllllon
Lxpanslon Lo 40+ MuslcWorld 0+ Spencers
hyper ouLleLs coverlng 4 mllllon sq fL by 200
LlfesLyle was launched ln 99 ln lndla
1urnover of 8s 3 bllllon
LlfesLyle lnLernaLlonal has emerged for Lhelr
lnLernaLlonal brands buslness comprlslng 8osslno
kappa and Sprlngfleld ln Lhelr porLfollo
1hey have already lnsLlLuLed a separaLe company
chrlsLened ClLymax oLels (lndla)
ln SepLember 999 lramal LnLerprlses announced Lhelr
arrlval lnLo reLall wlLh Lhe launch of Lhree reLall concepLs
lndlas flrsL Lrue shopplng mall of lnLernaLlonal sLandards
called Crossroads
a llfesLyle deparLmenL sLore named lramyd MegasLore
and a famlly enLerLalnmenL cenLre known as !ammln
Crossroads was laLer sold Lo anLaloon for 8s 4 bllllon
ln 200 Lhe group enLered Lhe buslness of food grocery
reLall wlLh Lhe launch of 1ruMarL supermarkeLs ln une
Subhlksha ls a Chennalbased decade old no
frllls food grocery pharma and Lelecom dlscounL
reLall chaln
lClCl venLure CaplLal holds 24 ln Lhe equlLy
caplLal of Subhlksha
lL has more Lhan 00 sLores across Lhe counLry
lL has a reglsLered Lurnover of 8s 334 bn
SLrong presence ln apparel reLalllng Lhrough Madura
garmenLs whlch ls subsldlary of AdlLya 8lrla nuvo LLd
1hey own brands llke Louls hllllpe van eusen Allen
Solly eLer Lngland 1rouser Lown
ln oLher segmenLs of reLall Av 8lrla Croup has
announced lnvesLmenL plans of 8s 000 9000 crores Llll
200
1he acqulslLlon of 1rlneLhra (food grocery) chaln ln
Lhe souLh has moved Lhelr Lally Lo 400 sLores ln Lhe
counLry
kAI V|s|on
1o develop faclllLaLe and propagaLe
pracLlces and processes LhaL wlll grow Lhe
lndlan reLall lndusLry leadlng Lo lncreased
consumpLlon and growLh of Lhe economy
kAI M|ss|on
1o esLabllsh growLh of modern reLall ln lndla (and
lncrease lLs share)
1o supporL reLallers by provldlng Lhe requlred
knowledge and lnformaLlon
1o lobby and llalse wlLh Lhe governmenL for easler
esLabllshmenL and operaLlons of reLalllng ln lndla
1o educaLe and Lraln reLallers Lo adopL modern reLall
pracLlces ln lndla
1o work for cusLomer dellghL by helplng reLallers
creaLe Lhe rlghL reLall envlronmenL
1o encourage adopLlon of Lhe rlghL values
Lransparency and code of conducL by reLallers
kAI
Govern|ng
8ody
Clbson C vedamanl
CLC ral
8 S nagesh
Shoppers SLop
Chalrman ral
A[lL !oshl
lnflnlLl 8eLall
8 A kodandarama SeLLy
vlvek LLd
klshore 8lyanl
anLaloon 8eLall (lndla) LLd
Aff|||f|on
Awarded membershlp Lo Lhe lorum for lnLernaLlonal 8eLall
AssoclaLlon LxecuLlves (ll8AL) of n8l
Lnables Lhe Lransfer and exchange of besL pracLlces ln
reLalllng
elearnlng
Course CerLlfled 8eLall rofesslonal
lnLernshlp wlLh ral member companles
!ob CuaranLee
wwwlnsLlLuLeofreLallmanagemenLcom
Curren IDI
Ln||es esfb||sed pr|or o 1997
A||owed o con|nue w| e|r ex|s|ng fore|gn
equ|y componens
No IDI resr|c|ons |n e ref|| secor pre1997
Ioodwor|d
149 IV beween kG fnd Df|ry Ifrm
Inernf|onf|
Lefd|ng food ref||er |n Ind|f now
Mc Donf|ds
Curren IDI
IDI |s f||owed up o 1 percen |n e kef|| rfde |n
s|ng|e brfnded producs w| pr|or fpprovf| from e
Governmen of Ind|f
1e producs sou|d be|ong o f s|ng|e brfnd
1e producs sou|d be brfnded f e |me of
mfnuffcur|ng
Jo|esf|e rfd|ng
Cfs fnd Cfrry operf|ons
1IDI perm|ed
Mero Cfs n Cfrry
IDI 8enef|s
(Generf|)
InfIow of invesfmenf ond funds.
0enerofing more empIoymenf.
Increosed IocoI sourcing.
Provide beffer voIue fo end consumers.
Invesfmenfs ond improvemenf in fhe suppIy choins ond worehousing.
Fronchising opporfunifies for IocoI enfrepreneurs.
0rowfh of infrosfrucfure.
Increosed efficiency.
Cosf reducfion.
ImpIemenfofion of IT in refoiI.
SfimuIofe infonf indusfries ond ofher supporfing indusfries.
reater Per
apita ncome
reater onsumer
Spending due to
economic boom
ncreasing
%ax Paying
Population
reater
Sourcing
From ndia
Reduced %ax
Evasion
DP rowth
ncreased %ax
Revenues
reater
Exports
Employ
ment
Benefits
to ovt.
IDI 8enef|s
(GCV1)
IDI Drfwbfcks
ouId give rise fo cuf-fhroof compefifion rofher fhon
promofing incremenfoI business.
Promofing corfeIs ond creofing monopoIy.
Increose in fhe reoI esfofe prices.
MorginoIi;e domesfic enfrepreneurs.
The finoncioI sfrengfh of foreign pIoyers wouId dispIoce
fhe unorgoni;ed pIoyers.
Absence of proper reguIofory guideIines wouId induce
unfoir frode procfices Iike Predofory pricing.
ConLd