Retail Marketing An Empirical Study
Retail Marketing An Empirical Study
Retail Marketing An Empirical Study
Introduction 1
of change, and the pace of this change has been accelerating over the last
decade. From the marketing perspective, retailers are, by definition, closer to the
the marketing process and the contact point between consumers and
manufactured products. While retailing has long set buying decisions as its
highest priority and was very focused on the product assortment, it now follows a
consumer behaviour and preferences. What was once a simple way of doing
rapidly as a big industry all over the world and hence, India is also not untouched
with this. So there is a need to know the current and the future trends of retail in
India. For the third year in a row, India has topped AT Kearney’s annual Global
Retail Development Index (GRDI). The Indian retail market is expected to grow
from the current US$ 350 billion to US$ 427 billion by 2010. This study will be
based on the latest retail trends being adopted by the companies, why the big
fishes are showing their interest in this sector particularly. Of the current size,
billion (36,000 crore INR approx). The rest of the retail pie is crowded with
unorganized retail – or the traditional shops. India’s retail market which is seen
developed nations.
4% 10%
organised organised
unorganised unorganised
96% 90%
Fig. 1.1
Market estimates say that by 2010, organised retail will form 10 percent of
Euromonitor International, the entire sector will grow – in value terms – by 39.6
percent between 2006 and 2011. This means that it will strike an average a
growth of rate of almost 7 percent annually. According to the Indian Brand Equity
country may have 600 new shopping centres by 2010. Mall space from a meager
one million square feet in 2002, is expected to touch 40 million square feet by
end – 2008.”
store (the kirana shop), in small or individual lots for direct consumption by the
quantities to the end-user i.e., the consumer or the end-buyer. In the supply
Fig. 1.2
store is any business enterprise whose sales volume comes primarily from
retailing.” Retail is India's largest industry, accounting for over 10 per cent of the
country's GDP and around eight per cent of the employment. Retail industry in
India is at the crossroads. It has emerged as one of the most dynamic and fast
The presence of 15 million kirana stores brings into light the very fact that
gradually inching its way toward becoming the next boom industry, organized
India. Modern retail has entered India as seen in sprawling shopping centers,
multi-storied malls and huge complexes offer shopping, entertainment and food
Fig. 1.3
India has one retail outlet per 90 people, one of the highest densities in
the industry in the world. India is the 9th largest retail market, with annual sales in
the organized segment at Rs. 35,000 crore in 2005 – with revenues doubling
durables, food services and home improvement are the top categories in the
to grow 5.5% a year to Rs. 28,70,000 crore by 2015 at current prices. The
crore by 2015.
The future of Indian retailing may even witness the concept of 24 hour
retailing and Gurgaon, Delhi and Bangalore have already started operations up
to 11 p.m. Even though this concept has been in existence in few retail segments
segments like food and groceries, apparel etc to adopt this trend.
cannot simply ignore the competition from the conventional stores because of
various factors like reach, extending credit facility and other intangible factors like
the human touch which are provided only by the conventional stores.
The urban retail market has been embracing various new formats and the
shoppertainment. The trends in the rural market also have been changing from
the old Haats and Melas to the rural malls like ‘Chaupal Sagar’ launched by ITC,
Fig. 1.4
IBEF (Indian Brand Equity Foundation) says, “The US$ 6.1 billion Indian food
industry, which forms 44 per cent of the entire FMCG sales, is growing at 9 per
cent and has set the growth agenda for modern trade formats. The prospect for
growth of the branded segment is huge, as nearly 60 per cent of the average
Direct Investment (FDI) in retail? The Government allows 100 per cent FDI in
cash and carry through the automatic route and 51 per cent in single brand.
Besides, the franchise route is available for big operators. Now, the government
also proposes further liberalisation in the retail sector allowing 51 per cent FDI in
Some key players in India are – Pantaloon Retail (India) Limited, Reliance
Retail, Aditya Birla Retail, Bharti Retail, Shopper’s Stop and Lifestyle.
operates multiple retail formats in both the value and lifestyle segment of
company operates over 5 million square feet of retail space, has over 450
stores across 40 cities in India and employs over 18,000 people. The
supermarket chain, blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and quality and Central,
Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top
10, mBazaar and Star and Sitara. The company also operates an online
recently awarded the International Retailer of the Year 2007 by the US-
based National Retail Federation (NRF) and the Emerging Market Retailer
parallel in size and spread and make India proud. Ensuring better returns
to Indian farmers and manufacturers and greater value for the Indian
Birla, Chairman, Aditya Birla Group, with its mission – “Our mission is to
change the way people shop. We will give the Indian consumers a
what they expect”. While unveiling the brand name ‘More’, he had this to
say about the vision of his company: “We believe that the Indian consumer
India, many of them do not offer the kind of shopping experiences that
people in most other parts of the world are used to, and even take for
needs and special shopping occasions are much less than they ought to
be…” The Company operates under the brand ‘More’, has selected two
formats – hypermarkets and supermarkets – for its initial foray. The first
store has opened in Pune. Last January, the company acquired Trinethra
Super Retail, which has given it more than 5,00,000 sq ft and a strong
Nadu and Kerala, where it is the No. 1 retailer. The Birlas’ outlay for the
• Bharti Retail: - The world’s largest retailer Wal-Mart, which usually has a
Mittal’s Bharti Enterprises in India. The venture will start with the cash &
that is expected in due course. More about the company, Bharti Retail
India with a population of over one million. The 60,000 people, it plans to
employ, will include ex-servicemen and women and provide multi faceted
suburb of Andheri in 1991 has now transformed into Shopper’s Stop, with
chain.
Landmark Group today operates over 5 million sq ft in the Middle East and
India. The group’s first Lifestyle store in India opened in Chennai in 1999.
Mumbai.
Carrefour waiting in the wings. Expect a lot of action in this sector in next
five years!
The retail and retailing is changing with a good pace and consumers are
(working women) as well as the lifestyle of women, food and apparel industry
growth, online marketing or buying and selling, rural markets giving high
Fig. 1.5
Now the picture will be more clear to you that why there is a need to study
the retail marketing. The above factors have affected the retail industry of India
and created threat among the unorganised small retailers for their existence. This
report will reveal the actual scenario of retail industry in India and also global.
Fig. 1.6
What is Retail? 2
Retail:
Retail comes from the French word “retaillier” which refers to "cutting off,
clip and divide" in terms of tailoring (1365). It first was recorded as a noun with
the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for
retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch
Retailing:
Fig. 2.1
towards giving the best merchandise available and it consists of the sale of
in small or individual lots for direct consumption by the purchaser. Retailing may
sells smaller quantities to the end-user. Retail establishments are often called
shops or stores. Retailers are at the end of the supply chain. Manufacturing
distribution strategy.
activity of purchasing products from other organisations with the intent to resell
the final step in the distribution of merchandise; retailers are therefore organised
to sell merchandise in small quantities to the general public. The services added
to the products commonly include transportation and stock keeping ensuring that
the products are available at the point of sale. However, the process also
Fig. 2.2
Fig.2.3
Table 2.1
Table 2.2
Fig. 2.4
Marketing Mix:
1) Place:
Table 2.3
Table 2.4
Location Positioning:
Fig 2.5
2) Product or Merchandise:
Merchandise Mix
The product assortment is the core of the retailing service. A retailer’s total
level, merchandise management includes the process of selecting the right items
for a store and, at an operational level, ensuring that they are available when
and the items within them. The selection of the appropriate items for a store
refers to the breadth and depth of the assortment, quality levels and the brand
portfolio.
The lowest level of detail identifying a product in the retailer’s assortment is the
stock keeping unit (SKU), which identifies a particular item. For example, a pair
of pants of a certain brand, in a particular style, colour, and size, is one SKU. The
often carry less than 1,000 SKUs, a typical hypermarket assortment accumulates
many different criteria. The product life cycle is one important classification
criterion: -
permanently by the retailer and that have relatively stable sales over time.
changing tastes and lifestyles. Colours and cuts of clothing change and
pants and similar products have very high sales during one season of the
• Fad merchandise generates very high sales for a short time period. Often,
toys and games, certain clothing accessories, or certain music CDs are
fads. Tamagochis and Pokémons, for instance, were classic fads. Movie
sensitivity is often very low and ensuring supply, while demand is high, is
Fig. 2.6
Fig. 2.7
3) Price:
played a very important role in retail marketing. However, it is precisely this focus
on price reductions, often based more on belief and intuition on the part of the
retailer, than on facts and knowledge about its effects that makes pricing a field
margins are very low. In food retailing, it is about 1 % of sales, so that a product
that is sold for 1.00 EUR leaves the retailer with an average profit of 1 cent. This
Methods of Price
Setting in Retail
Fig. 2.8
retail prices is the cost oriented method, also called cost plus pricing.
retailer identifies his main competitors and sets his prices accordingly.
Depending on the pricing strategy, prices for certain products are then
price. The price elasticity (more precisely: own price elasticity) of demand
different prices for the same product. The extreme case is negotiating the price
prices actually paid vary greatly. While in the service industry (for example, movie
theatres), prices for students or senior citizens are often lower, this is not usually
relatively high regular prices, but use substantial temporary price reductions to
advertise their products and draw customers into the stores. Many supermarkets
appeal to smart shoppers who only buy items on special prices. Especially for
intensive HiLo strategies, this can lead to reduced profits of the retailer.
strategy, for which prices remain stable over a long period of time. It involves
strategy.
EDLP has high price transparency, and thus can only be implemented
successfully if the retailer has a very low cost structure. EDLP makes price
comparisons much easier for consumers (and competitors) than a HiLo policy. An
EDLP retailer must, therefore, have a very low retail price for most of his
products and only the most efficient retailers will be able to sustain this in the
long run.
4) Promotion:
Fig. 2.9
customer flow and it is often not very stimulating, but it is well suited for shopping
trips in which customers need to easily locate certain products and basically
move through the entire store. Self-service is rather easy, and the shopping
process for customers often fast and efficient. Space is utilised to a large extent.
certain areas of the store and along certain paths. It allows for more relaxed and
customer to find certain products. This style is found in many clothing stores.
Merchandise
Grouping
Fig. 2.10
products is displayed and grouped together like festivals, marriages, etc. And,
Visual
elements
(Colour,
Brightness,
Size and
Shape)
Gustatory Aural
elements elements
(Extra- (Background
services in Music and
normal Senses Audio
shopping)
affecting advertising)
Consumer
Behaviour
Tactile Olfactory
elements elements
(Floor (Various
Material and types Scents
Sensation of in store)
touching)
Fig. 2.11
In the figure above it is shown that how the above mentioned five factors
affects the senses of consumer who step into the store. These are some of the
very important factors that must be considered while making a store and planning
Fig. 2.12
Fig. 2.13
does not necessarily correspond with behaviour and latent loyalty can occur.
Situational influences can form a barrier between attitude and behaviour. For
example, people can have a very positive attitude towards Tiffany’s, but not be
able to buy there. Alternatively, they may feel very positively towards Harrods in
London, but live hundreds of miles away. Ultimately, however, retailers do not
wish to foster a positive attitude of consumers, but aim at increasing their sales.
repeat patronage based on a strong relative attitude towards the retailer. Most
patronage is observed, but is not based on a strong positive attitude towards the
retailer. For example, a lack of alternatives in the area can result in store
Retail design:
placed on retail space. Because the primary purpose of retail space is to stock
and sell product to consumers, the spaces must be designed in a way that
The space must be specially-tailored to the kind of product being sold in that
Retail spaces, especially when they form part of a retail chain, must also
be designed to draw people into the space to shop. The storefront must act as a
billboard for the store, often employing large display windows that allow shoppers
to see into the space and the product inside. In the case of a retail chain, the
Retail types:
The first is the market, a physical location where buyers and sellers
The second form is shop or store trading. Some shops use counter-
service, where goods are out of reach of buyers, and must be obtained from the
seller. This type of retail is common for small expensive items (e.g. jewelry) and
controlled items like medicine and liquor. Self-service, where goods may be
handled and examined prior to purchase, has become more common since the
Twentieth Century.
A third form of retail is virtual retail, where products are ordered via mail,
existing retail types such as online shops or virtual marketplaces such as eBay or
Amazon.
Retailing in India 3
retailing is well on its way to become a Rs 35,000 crore market by 2005. The size
2010. Its contribution to total retailing sales is likely to rise to 9% by the end of
the decade.
Fig. 3.1
Currently Indian retail is seen as ‘The Goldmine’ for the investors and big
retailers. It is expected that the current retail market is about $ 350 billion out of
which $ 8 billion is of organised retail only. There are over 13 million kirana stores
In this scenario of feverish activity, this report aims to map the global
scene of the Indian retail Industry. It looks at the factors that have been fuelling
this boom so far and what will drive the growth of the industry in the future. Urban
India represents only a fraction of the opportunity that the retail sector can hope
to exploit. Significant portion of future growth has to come from the rural market.
This report takes a look at the modern retailing formats being experimented with,
both in the cities and the countryside and highlights how they are different from
one another.
To fully harness the potential benefits that a huge leap in retail can offer to
all its stakeholders in India, the roadblocks in its way have to be removed. This
report analyses the issues that currently impede the realisation of the maximum
implemented, can provide a fillip to the current growth rate of the industry and
truly make the Indian Retail Revolution a success story that the world will have to
1. Introduction
Retailing is the final step in the distribution of merchandise - the last link in
the Supply Chain - connecting the bulk producers of commodities to the final
• Total Consumer Spend in the Year 03-04 - INR 9300 billion (USD 375
have an average age of 24 years for its population as against 36 years for
the USA and 30 years for China. A younger population tends to have
higher aspirations and spends more as it enters the earning phase. Also,
to the consuming class with the growth in income levels. Also, with
service that is lesser in quality than the best offered in any other place on
the globe.
Till 1980s, India knew only kirana stores. Things started to change slowly
after that, with companies like Bombay Dyeing, Raymond's, S Kumar's and
Grasim opening their company owned outlets. Later on, Titan, maker of premium
In recent years in line with the global retail scenario, India has seen
2. Retail Formats
• In-store Retailers: Operate through fixed point of sale outlets located and
• Retail Organisations
etc.
Supermarkets Extremely large self-services One stop shop catering to
economies of scale.
Hyper-Mart Larger than a Supermarket, Low prices, vast choice
Of the Top-200 Global Retailers, 21% of retailers fall in the specialty stores
• Kiosks.
• Street Markets.
Piramyds, Trent.
Forecourt Retailing: -This concept recently shot into limelight with oil companies
trying to milk this revenue stream for more moolah. Apart from dispensing fuel,
the stores offer value added services to busy consumers. This strategy is
Greater Noida, International Home Deco Park (IHDP) set up by a group of private
investors in Noida and World Trade Park coming up in Jaipur. IHDP will provide
International buyers ready access to 60 world class exporters from India in the
Home Furnishings category. This would be beneficial to buyers as they would not
have to go to remote towns (where the infrastructure is not good) to see the
visibility will also get other facilities such as design library, design studio,
forwarding services and so on. The parks are built to promote trade and are open
The key to a winning retail format is to follow a model that suits the Indian
consumer behaviour. One big undisputable fact is that almost all retail players
Nilgiris, Margin Free Market, Giant, Varkey's and Subhiksha in the South, Sabka
Issues to be tackled
customisation?
• When to scale?
• More real estate space is available in smaller towns, but do the footfalls
Clearly, a retailer needs different formats for different town classes - but
then what happens to economies of scale via standardization? A good way out is
the way the RPG group is treating its Music World stores - flagship vs. smaller vs.
the express outlets located in, say, a FoodWorld. Similarly, the way ABC has
In line with the global evolution, Indian Retailing has also witnessed a
series of experiments across the country with new format being tested out; old
ones tweaked around or just discarded. Some of these are listed in the table
below: -
the rural consumer. However, off late, some private players like ITC, HLL and
3.1 Opportunity
The importance of the rural market is underlined by the fact that the rural
market accounts for close to 70 per cent of toilet-soap users, 38 per cent of all
two-wheeler, half of all TV sets, fans, pressure cookers, bicycles, tea, salt and
toothpowder sold. What is more, the rural market for FMCG products is growing
Although the rural market does offer a vast untapped potential, it should
also be recognized that it is not that easy to operate in rural market because of
• Dispersed market
problems. The alternative 4As Model when applied to the rural retailing scenario
• Availability: - India's 627,000 villages are spread over 3.2 million sq km.
backwaters of Kerala.
affordable to the rural consumer, most of who are on daily wages. Some
unit packs.
• Acceptability: - There is a need to offer products that suit the rural market.
Because of the lack of electricity and refrigerators in the rural areas, Coca-
Cola provides low-cost ice-boxes - a tin box for new outlets and thermocol
awareness, events like fairs and festivals, Haats, etc., are used as
• ITC's Chaupal Sagar: - Chaupal Sagar is one of the first organised retail
information centres in Madhya Pradesh. The first rural mall has come up
sells are national such as Marico, LG, Philips, torches from Eveready,
shirts from ITC's apparel business, bikes from TVS, and tractors from
Eicher.
o Entertainment facilities
o Restaurants
o Cafeteria
o Information centres
o Godowns for storing the wheat and soybean and also for stocking
The store complex is spread over 2-3 acres and caters to all the
farmers requirements (both DCM Sriram products & other sources): farm
To get started the Shakti woman borrows from her "Self Help
Group" and the company itself chooses only one person. A Shakti
entrepreneur receives stocks at her doorstep from the HUL rural distributor
established Shakti dealers are now selling Rs. 10,000 - Rs. 15,000 worth
of products a month and making a gross profit of Rs. 700 - Rs. 1,000 a
month. The company is creating demand for its products by having its
recently finished a pilot project for its super-stockists in Patna and has
now rolled it out in Bihar, Madhya Pradesh and Rajasthan. Reckitt has
also adopted the super-stockist system in Tamil Nadu and plans to set up
such a system all over the country in the next year, with the target of
The business model for rural retail can be successful only when
integration between the profit and social motive is apparent. The social angle
rural consumer and at the same time take advantage of this empowerment
through creation of demand for its own products and that of its partners.
The roadblocks in the way of retail revolution hamper the growth of the
industry both in urban and rural areas. These bottlenecks if not removed have
the potential to retard the rapid progress that this sector has been witnessing.
investment in retail trade have sparked off a debate on the advisability and
Some of the areas in retailing that will be affected by FDI are as follows: -
• Benefit to Consumers
• Increased Exports
other assets are protected. However, it is clear that FDI in retail trade will lead to
strategy in the direction of FDI should ensure that domestic players are not
unduly displaced and sufficient opportunities are available for the growth of
and inputs from all stakeholders should be taken in shaping the policy.
The government of India is looking for a tear-free FDI in retail. They have
allowed 51 per cent equity ownership to single-brand retailers and thinking for
allowing FDI but with full preparation to save the small retailers and the loss of
Greater Consumer
Greater Per
Spending due to
Capita Income
economic boom
GDP Growth
Reduced Tax
Evasion
Fig 3.2
There is a shortage of good quality retail space, and rents are high for
Only Indians can own property in India, which complimenting the restrictions
Stamp duties on property deals are significant. The lease alone can cost
up to 6-10 per cent of sales while it's just 3-5 per cent globally.
The initial urban planning of cities was done with smaller plots in mind which
along with rigid building and zoning laws make it difficult for procurement of retail
space.
The urban land ceiling act and rent control acts have distorted property
The labour laws instituted to protect store workers are not flexible enough
to support the modern formats of retailing. These rigidities in the law constrain
the operations of modern retail outlets. Working hours are restricted, with shops
required to close one day of the week and the hiring of part-time employees is
difficult.
4.4 Taxes
Effective corporate tax rate is 36.59% for a local company and 41.82% for
The varying sales tax rate across states makes supply chain management an
even more difficult task for retailers. However, with the introduction of Value
Added Tax (VAT) across all states, some of the sales tax anomalies in the supply
The last few years have seen rapid transformation in many areas like: -
Scalable and profitable retail models are well established for most of the
categories
overwhelmingly
• Given the size and the purchasing power of the Indian consumer, the road
ahead can only get smoother and it is only a matter of time before the
1. Reliance Retail Limited (RRL) recently announced the launch of its second
area of 41,000 sq ft. and over one lakh products (books, music, stationery,
3. Luxor Group and Reliance Retail enter a Joint Venture to open new outlets
5. In the Indian Retail Summit Adlabs Cinemas bags ‘Retailer of the Year’
award.
6. Reebok focuses on kids wear and lifestyle segment and plans to increase
the number of retail outlets from 580 to 750 by the end of year 2008.
7. Tata Tea forays into retail with Chai Unchai outlet at IIM, Bangalore.
9. Reliance Retail Ltd (RRL) launched the third outlet of its specialty store
‘Reliance Footprint’ at Star City Mall, New Delhi. It is spread over 7,500 sq
10. RIL Retail forays into lifestyle, entertainment. Reliance Retail aims to add
ft.
16. Swarovski India opens largest boutique in India in the area of 1,500 sq ft.
cashew processor and exporter), has forayed into the retail sales of
almonds.
20. Home Solutions has an expansion plan of Rs 450 crore to 500 crore.
22. Jodhpur Maharaja Gaj Singh II joins hand with Stadia Infrastructure to set
Fig. 3.3
From the above life cycle of shopping malls it will be clear to you that India
is in the Development Stage whereas USA and UK are in the decline stage that’s
why they are now focusing on the countries which are in the infancy and
development stage. And India and China have become the favorite investment
spots in the retail industry in the world because here the percentage of
North
North 42%
44% West
40%
West
29%
Fig. 3.4
The above have clearly shown that the western part has grown the most in
Fig. 3.5
The above graph shows clearly that the food and grocery industry is
growing at a rapid speed of 91%, clothing comes at the second place with 55%
and furniture & fixtures and pharmacy grows with 27%. The reason for the growth
of food and grocery at the highest pace is that it the fastest consumable product
in the market and cannot be stored for a longer period of time except some of the
dry foods. So the company’s are showing their interest in this field to earn a good
profit easily.
Fig 3.6
more than 13 times of the total retail market size as compared to India.
• 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.
than the size of Indian retail industry almost 100 times more than the
can compare.
• The sales per hour of $22 million are incomparable to any retailer in the
• 60% of retailers in India feel that the multiple format approach will be
sector has an average inventory turns ratio of about 18. Many Indian
retailers KPMG surveyed have inventory turns levels between 4 and 10.
India’s position globally, more particularly in the Asian region, in the race
for organising the retail sector, still way behind. In India, only about four per cent
of the entire retail sector is organised while the figure is at least a double digit in
Nonetheless, India’s retail sector offers far more potential than most other
countries. Observing the huge potential and opportunities therein, big overseas
investors and retailers like Tesco, Carrefour, Wal-Mart, despite FDI barriers, are
making efforts to step into the Indian Retail space and market their services and
products. At domestic levels, all the biggies, including Reliance, Bharti, Future
Group and Tata, are engaged in initiating new ventures and expanding existing
retail formats. Premium financial institutions such as ICICI and HDFC have also
The potential might of India’s retail sector is not without reasons. Broadly
speaking, a number of factors account for making the Indian retail sector
potentially huge and viable enough to attract offshore and domestic firms,
Interesting, while the GDP contribution of the Indian retail sector is around
10 per cent, which is higher than any other country’s, employment in the sector is
eight per cent. This amounts to the sector’s bigger role and responsibility in the
size, manpower or quality, the sector is fast getting organised. As it grows, it will
generate more revenue, more employment and upgrade its allied sectors giving a
But, then, what are the forces instrumental for the progress of the
industry? Unarguably, they are people and organizations, for, without them, it
progress and development of the sector. Their contributions have elevated the
any doubt, these visionaries have helped in shaping India for a better tomorrow.
Judging by the present pace of progress, India can attain, in a couple of years, its
conscious and like to buy brands that speak out their individual personalities,
identities and attitudes. Brands are indeed the face of the company, and a
positive image of a brand will attract customers and thereby help the company
Tata. He joined the Tata Group in December 1962, when he was sent to
Jamshedpur to work at Tata Steel. In 1981, Mr. Tata was named Chairman
of Tata Industries and, in 1991, he took over as group chairman from JRD
Tata. Under Mr. Tata’s guidance, Tata Consultancy Services went public
and Tata Motors was listed on the New York Stock Exchange. His dream
$2,200; today: $2,258). He realized his dream by launching the car in New
Delhi Auto Expo on January 10, 2008. The car is expected to be sold to
his three group companies viz. India’s most valued firm Reliance
net worth of Mukesh Ambani rose to $63.2 billion (Rs 2,49,108 crore). The
46, is credited for the launch of Home Town, Future Money, Future Media
and Future Logistics. One thing he would like to change in retail industry in
India would be to bring more and more Indians into the fold of modern
retail. His role models include Verghese Kurien, Rahul Bajaj, Sam Walton
inflection and the years ahead will see new formats, new business models
Forty years-old Kumar Mangalam Birla took on, at the age of 28,
Within 10 years, the revenues rose to Rs 33,000 crore and the company
chairmanship, the group has entered into the domestic organised retail
retail industry. He began his career in 1973 with a single store in Bahrain
nationalities, the Group has retail presence of six million sq ft with its over
570 stores across 10 countries. In 2007, the Group opened around 140
stores. Other achievements include entering new market (China) with the
Enterprises)
University, Chandigarh, Sunil Bharti Mittal started his career at the age of
50, his enterprise figures among the ‘top five’ in India with a market
employing over 30,000 people. Bharti has recently forayed into the retail
sector and inked a 50-50 joint venture agreement with world’s biggest
and formed, in1985, Gitanjali Gems Ltd, the flagship company of the
group. The Gitanjali Group hlds the largest number of diamond jewellery
brands in India and these include Gili and D’damas. His vision and
excellent foresight led him to craft the Gili brand almost a decade ago
Pennsylvania (USA) with a degree in finance, she has worked for the risk-
leading MNCs and Indian companies over a span of a decade and has
and exercise a uniform single tax on all goods and services and remove
service tax. He believes that the organised retail in India is potentially the
largest sector. Efficiencies in this sector will lead to gains and welfare. A
Haliburton to work for its international services business in the year, 1995.
Under his leadership, Indiabulls (set up in financial year 2000) has grown
conglomerates in the country. He has recently been named the 88th most
Working with Vishal all the way since its inception and having 21
One thing he would like to change in Indian retail is making VAT uniform
revamping and the latest research has rated India as the top destination
for retailers. The organised retail sector is expected to grow stronger than
and launching several projects in the Indian real estate industry. He has
also taken Unitech beyond the borders by getting Unitech Corporate Park
development.
• Big Bazaar
hypermarket. It caters to every need of the family. Big Bazaar scores over
opened the doors into the world if fashion and general merchandise
much more at prices that will surprise consumers. The company is now
looking at opening a total of 300 Big Bazaar stores. It has introduced the
will also introduce new business segments such as health and wellness.
Current Stores: 80
• Reliance Fresh
launched Reliance Fresh, the first of its multi-format retail forays involving
format, the focus is on fresh fruits and veggies and staple products that
consumers buy very frequently. As of now, there are 453 Reliance Fresh
stores operational across India. Reliance Fresh sells vegetables and fruits
• Pizza Hut
Pizza Hut of Yum! Brands, Inc. that has also KFC, Taco Bell, A&W
dine-in restaurant segment. The brand made its foray into India with a
the eating-out market and over 70,000 footfalls per day across the country,
Pizza Hut is geared to create an ideal eating out experience for its
patrons. In India, Pizza Hut has 136 restaurants across 35 cities including
Chandigarh. The company plans to double its business in India in the next
three years.
Over the last seven years, ITC’s Lifestyle retailing business division
Wills Sport relaxed wear from the first store at South Extension, New Delhi
consumer with Wills Classic formal wear, Wills Clublife eveningwear and a
Current Stores: 40
Upcoming Stores: 80
• D’damas
D’damas. Numerous brands that have made a mark in the Indian milieu
come under the brand, D’damas and these include Forevermark Solitaire,
Inspirations.
• Gili
1994, the group introduced India’s first ever branded jewellery, Gili. Gili’s
price’. It is the first jewellery brand that brought diamond jewellery within
• Croma
consumer electronics and durables from Infiniti Retail (a 100 per cent
Croma with technical support and strategic sourcing facilities from its
global retail network. Croma offers to its consumers the country’s widest
Current Stores: 31
• Adidas
subsidiary of adidas Group AG. The adidas Group is one of the global
decade in the country (India), adidas today has a total of 113 exclusive
• Titan
Established in 1984 as a joint venture between the Tata Group and Tamil
‘premium segment’, fastrack, and Sonata along with several sub brands
like Titan, Edge, Titan Raga, and Nebula. The company has launched its
first Swiss made watch, Xylys and also markets Tommy Hilfiger brand.
• @home
accessories, lights, kitchens, flooring and all that requires for home décor
Bangalore and Chennai) with around two lakh sq ft of retail space, @home
Current Stores: 11
Upcoming Stores: 70
• Reliance TimeOut
TimeOut’, a one-roof shop for books, music, stationery, toys and gifts.
Spread over 21,000 sq ft of area and housing over 56,000 products, the
music, stationery, toys and gifts. The company plans to expand into
different locations in the country, including tier I and II cities. In the next
three years, it plans to open 45 stores. The company has launched a pilot
project, under which it opened two stores in Bangalore and Gurgaon, and
the third one would be rolled out at Kochi in March 2008. The first store
proposes to launch the third one in Kochi and it will be spread over 23,000
sq ft area.
Current Stores: 2
Upcoming Stores: 45
• Cygnus
manufacturing. With a turnover of over 1500 crore, Laxmi has sales offices
and jewellery units all over the world. ‘Cygnus’ is a constellation of stars
that is shaped like a swan. The Cygnus brand became, within just four
recognition and overall success, Cygnus is, indeed, within ‘top 3’ jewellery
Current Stores: 24
Upcoming Stores: 10
• PVR
multiplex was opened in the form of 11-screener. Today, the chain has 89
screens across the country. Its singular belief is ‘Movies first’. PVR
Cinemas will soon have a very firm national footprint with 250 screens
across the country. PVR plans to open cinemas soon in many cities like
Latur and other territories. PVR’s distribution arm, ‘PVR Pictures’, acquires
Current Stores: 89
• Lifestyle
a part of the prestigious USD 1.5 billion Landmark Group (Dubai). Each
Lifestyle store brings together five concepts under one roof apparel,
footwear, children’s wear and toys, furniture and home décor. Positioned
not only just the ease of shopping experience. Currently, there are 18
Current Stores: 18
Upcoming Stores: 35
• Subway
largest fast food chain in the world. The company has over 28,788
in India was opened in December of 2001 in the Saket area of New Delhi.
Subway’s growth in India has been very encouraging. During last year,
• More
Aditya Birla Group started with a simple mission, ‘to change the
way Indian shops’. And, to achieve this goal, the team started with the
variety she experiences in her everyday shopping ritual, the retail promise
of the Aditya Birla Group is aptly called ‘more’. The retail offering is
the country, with a pan-India presence. The Group has plans to have two
• Yo! China
India’s first and largest Chinese fast food chain. With its tagline od
operated by Moods Hospitality Pvt. Ltd. On the average, over five lakh
guests per month visit Yo! China restaurants. The chain delivers food to
Gurgaon. All staff personnel are trained on ‘production hygiene’. Chefs are
also trained on all menu preparations where the quality of each dish is
Current Outlets: 30
• Woodland
during the fiscal year 1999-2000. The brand is poised for steady growth of
nearly 20 per cent every year. Woodland was introduced to the Indian
every good shoe store in all metropolitan and major town(s) is retailing
Woodland shoes.
owned subsidiary of Levi Strauss & Co. (LS & Co.), San Francisco. The
company markets the Levi’s, Dockers and Levi Strauss Signature brands
in India. Levi Strauss (India) Pvt. Ltd was established in 1994 and brought
Levi’s Brand.
• Westside
Trent entered into the hypermarket business in 2004 with ‘Star Bazaar’. In
music, movies and stationery. Trent agreed in 2006 to anchor the next 12
Current stores: 28
• Lacoste
Group as its partner and formed Sports and Leisure Apparel Limited, the
October 1993. Though the Lacoste range in India includes a wide range of
manufacture only one product ‘Quality’. The brand has grown steadily over
the last 14 years. Today Lacoste is redefining the retail landscape and the
Current boutiques: 37
• Kwality Wall’s
Continuing the trend in 2007, the brand has inducted over 100
franchisees. With over 300 parlours, Kwality Wall’s is one of the largest ice
in number.
• Reebok
In 1995, Reebok started operations in India through its 100 per cent
500 exclusive Reebok stores, 200 shop-in-shop outlets and 2,500 dealer
outlets. The company intends to capture the hearts and minds of young
culture.
• Home Town
is divided into three sections. While exhibitions sections have live displays
(around 150 in numbers) of various rooms such as living room and dining
room, markets section features products like sofa sets and kids furniture.
The services section offers service options such as Mr. Plumber and Mr.
Bangalore and Pune, HomeTown displays products from all the major
Current stores: 5
Upcoming stores: 4
• Hidesign
Dilip Kapur ventured out with the brand Hidesign in late 1970s. in
the beginning Hidesign was retailing via distributors. However, from the
last few years, the company ramped up its own-retail presence not only in
has stores in the USA, Russia and UAE and intends to enhance its retail
India, the Rs 101-crore company has 37 stores. Capetown and Abu Dhabi
are also in the radar for opening of the outlets. Hidesign already has one
store each in Shanghai, Hong Kong and the US, apart from two stores in
Russia and also three in Dubai. The company is also looking, for
expansion, at San Diego, San Francisco and the Californian coastal cities.
Current stores: 50
Upcoming stores: 10
• Tommy Hilfiger
Hilfiger himself was in India to launch the brand. It was a two-city launch
(Delhi and Bangalore). The launch activities included store opening events
and a fashion show in Delhi. Today, Tommy Hilfiger is the only premium
Arvind Murjani Brands Pvt. Ltd is the sub licensee for Tommy Hilfiger
Current stores: 9
• Food Bazaar
Indian values have been put together to ensure customer satisfaction and
and hygiene are offered through pre-packed commodities and the Indian
created by displaying staples out in the open, all at very economical and
• Spencer’s
one of the fastest growing organised retailers in India. The group is adding
30 stores a month and has retail area of 1.3 million sq ft. in 2008, the
Spencer’s brand of hyper, super, daily and express stores. Currently, they
double by March next year. Spencer’s retail has several formats such as
Upcoming stores: 30 - 40
• Esprit
and accessories are made with a special Esprit twist. The brand is for the
all lines are contemporary and stylish. So, it is not surprising that Esprit is
one of the brands with highest rate of repurchases. In other words, it has
the most loyal regular-customers. Esprit is all about lifestyle, attitude and
• Puma
in India in 2006. The company would also use India’s expertise in garment
Current stores: 15
Upcoming stores: 30
• Baskin Robbins
venture between its parent company Allied Domeq Quick Service and the
areas. Today, Baskin Robbins is one of the world’s largest ice cream
franchisees, with more than 5,600 locations of which over 250 are in India.
After 14 years, Baskin Robbins has become a part of daily lives and is one
of the brands indelibly linked with the discerning Indian consumer. In India,
• Provogue
Clothing Private Limited. Provogue stands for fashion and not for pure
apparel and this, in itself, makes it the leader instantly. Its designs are
The company launched the fashion brand ‘Provogue’ in March 1998, and
with a short span of seven years; it has established a strong brand identity
• Raymond
the world. Currently, Raymond has more than 430 stores in India, Middle
East and South Asia comprising ‘The Raymond Shop’ (TRS) and EBOs,
stores in the country, with over two million sq ft of retail space. The
company has diverse product range of nearly 20,000 designs and colours
• Hypercity
leader in the Indian retail sector. Hypercity, hypermarket in the true sense,
along with Shopper’s Stop Ltd has entered into franchise agreement with
the Home Retail Group, UK to offer for the first time a unique multi-
to consumers in India.
Current stores: 1
Upcoming stores: 60
• Metro Shoes
doors to the public in Colaba. Over the past five decades, the company
and the brand name have become synonymous with unmatched quality,
Current stores: 74
• McDonald’s
Restaurants Pvt. Ltd run by joint venture partner, Mr. Vikram Bakshi and
Hard Castle Restaurant Pvt. Ltd run by joint venture partner Mr. Amit Jatia.
cities like Ropar and Patiala. It also plans to set up a food processing plant
western regions.
Upcoming restaurants: 40
• Club City
Company Pvt. Ltd, which is a part of the Franchise India Holdings Ltd. the
City has 15 food brands under its umbrella that offers to its customers a
Current stores: 43
Upcoming stores: 24 - 30
• Crossword
Shopper’s Stop Ltd, is India’s leading department store chain. The holding
tech aspect, Crossword features large, spacious, well laid out stores and
cheerful interiors that encourage people to stay on and browse and make
Current stores: 48
Upcoming stores: 52
• Copper Chimney
a blue food brand menu includes Bombay Blue, Noodle bar, Copper
Chimney, Cream centre, Spaghetti Kitchen, Coffee Blues, Blue Sea and
Spoon at various locations across India. Thirty five years ago, Copper
Chimney opened its door to cater to the demand for Mughlai cuisine, a
perennial favourite. Since then, this famous brand has been synonymous
Current restaurants: 9
Upcoming restaurants: 5
experience to a new level. With high profile premiers and celebrity events
Current screens: 51
crore ISO 9002 certified company. Café Coffee Day pioneered the café
Bangalore. Remained restricted to a very few people till late 1990s, coffee
drinking in India grew as need for relaxed ‘hangouts’ for urban youths
began to emerge. Recognizing this, Café Coffee Day embarked upon the
identity. The chain plans, by 2010, to have 1,000 cafés in India and 50
cafés internationally.
• Samsonite
Pvt. Ltd. under 60:40 joint venture with the Tainwala family. The company
an annual hard sell capacity of 100 lakh units. Almost 80 per cent capacity
is being exported.
Upcoming stores: 50
• Bata
Bata, the Czech shoe major, was incorporated way back in 1931 as
Bata Shoe Company Private Limited. In 1973, the company went public
and changed its name to Bata India Limited. A leading player in the Indian
is the only footwear brand that offers quality and fashionable footwear for
the entire family. Bata has been on an aggressive expansion mode and
plans to add 200 international-look stores in the next two years. The
• NEXT
microwaves to small home appliances. Besides its own brands, NEXT has
• Maspar
the parent company which has been manufacturing home furnishings for
houses like Mark & Spencer, Ikea and Waverly, it brings its international
quality standards to the Indian market. The team behind Maspar believes
that Indian homes are becoming more and more contemporary. Ornate
curtains and lifetime investments and décor are a thing of the past. The
Current stores: 9
Upcoming stores: 1
• Viveks
retail chain in India. The company grew from three stores to more than 53
and Mckinsey raved about Viveks in these terms: ‘More trusted than the
brands it sells’.
Current stores: 53
• Adlabs
Started as a laboratory for processing ‘ad films’ over three decades ago.
entity, Synergy Adlabs, continues to create exciting new genres for the
few.
Upcoming stores: 30
• Landmark
retail stores. Trent entered into hypermarket business in 2004 with ‘Star
Landmark has, over the past 20 years, built its stores on the foundation of
Landmark stores offers exhaustive range of over one lakh titles in books
and music alone. Landmark’s USP is the range and depth of its stocks.
Current stores: 10
• Ethos
Ethos Swiss Watch Studios is the India’s largest retail chain for
Swiss watches. Ethos entered the watch retail market in 2003, when it
four years, Ethos has grown to a chain of nine stores around the country
offers more than 25 premium Swiss watch brands. The latest addition are
Breguet (a high end, most revered Swiss Brand in watches) and Maurice
with the rare ‘double retrograde’. Considering that over 30 per cent of
overall sales fall into gifting category, Ethos has recently established a
Current stores: 15
Upcoming stores: 50
• Koutons
exports in early 1991. The company moved up the value chain from a
The company owns two brands with unique positioning ‘Koutons’ and
‘Charlie Outlaw’. Of these, 610 are exclusive shops while rest (537 stores)
India is shining all the way and investing in India has become one of the
profitable businesses. For those who aspire to see their brand recognised and
known at the global circuit, India cannot be ignored any longer. With booming
economy and promising future, international players are coming onto the Indian
shores. The foremost in the league was the Wal-Mart-Bharti tie up. Since then,
there has been no looking-back and the retailing sector is on the way to
revolutionise itself. With the entry of foreign companies in India via joint venture
After Walmart-Bharti tie up, joint ventures between other Indian and
international players have been catching up and the retail market of the country
has immense potential to grow further into a sector completely organised. The
• Wal-Mart
incorporated in October 31, 1969 and listed on the New York Stock
Exchange in 1972. Wal-Mart is the largest grocery retailer in the US, with
business, as well as the largest toy seller in the US, with an estimated 22
per cent share of the toy market. The company’s operation primarily
clubs, apparel stores, soft discount stores and restaurants. In 2006, Wal-
Mart was the 67th most profitable corporation (profits divided by total
revenue), behind retailers such as Home Depot, Dell, and Target, and
ahead of Costco and Kroger. For the Fiscal year ended January 31, 2006,
sales revenue (3.5 per cent profit margin). For the same fiscal year, Wal-
Mart’s international operations accounted for about 20.1 per cent of total
8.6 per cent from the previous year’s results. Revenues are up 11 per cent
over last year, but profits grew less than one per cent, amid a slowdown in
same-store sales.
with US retail giant Wal-Mart to launch the first mega-retail store joint
• Carrefour SA
European Union, Brazil, Argentina and Columbia; but it also has shops in
North Africa and Asia. In French, Carrefour means crossroad. The first
group was created by Marcel Fournier and Denis Defforey and grew into a
chain from this first sales outlet. In 1991, it got merged with Promodes,
Carrefour also operates in the UAE and Jordan with a joint venture with
Avenues mall.
Carrefour WC & C India Pvt. Ltd will roll out fully-owned wholesale stores
and Carrefour India Master Franchise Co. Pvt. Ltd will enlist an Indian
• Tesco
global sales and domestic market share, and is the world’s third largest
retailer, just behind Wal-Mart and Carrefour. Tesco now controls over 30
per cent of the grocery market in the UK, approximating the combined
market share of its closest rivals, Asda and Sainsbury’s. in 2007, the
The first Tesco store was opened in 1929 in Burnt Oak, Edgeware,
1956. The Tesco brand first appeared in 1924 and the founder is Jack
size and the range of products sold: Tesco Extra, Tesco superstores,
Tesco Metro stores, Tesco Express stores and One stop. Britain’s biggest
profits of more than $ 3.5 billion (approximately Rs 140 billion), 13 per cent
higher than previous year’s. Tesco now operates in 13 nations, with over
India plans: Whilst Tesco is still in the look out for a Indian partner
busy scouting for talent in the top B-schools in the country and also
seeking for manpower with retail background. Well, the official line is ‘it is
scouting for talent for its Tesco Hindustan Service Centre’ but the unofficial
talk is ‘the latest round of manpower scouting is for its retail foray’. Tesco
• Burger King
Edgerton. Since then, it has been using franchise model to expand to just
over 11,200 stores in more than 65 countries around the globe. Burger
King Holdings is the parent company of Burger King. In the US, it operates
under the Burger King Brands title while, internationally, it operates under
the Burger King Corporation banner. By the end of fiscal year 2006,
Burger King has more than 11,220 outlets in 61 countries. The company
has more than 37,000 employees who serve approximately 11.4 million
customers daily.
No. 2 burger chain, posted a 41 per cent surge in its fiscal 2007 second-
quarter profit. For the quarter ended on December 31, Burger King earned
India plans: Burger King is in talks with DLF for setting up a joint
venture (JV).
• Starbucks
partners viz. English teacher Jerry Baldwin, history teacher Zew Siegel
Izze soda, and Horizon Organic Milk. As of 2008, Starbucks was ranked
by Fortune magazine as the 7th best company to work for in the United
States, up from 16th in 2007. In 2006 and 2005, it was ranked 29th and 11th
with the country’s leading multiplex operator PVR Ltd for its select
• Shopper’s Stop
Shopper’s Stop Ltd has introduced various retail formats in India. Apart
from the flagship business of department stores, there are also specialty
stores for books, home décor, cosmetics and maternity acre and infant
care. Shopper’s Stop Ltd has also forayed in the food & beverages
business.
Current stores: 21
Upcoming stores: 28
Morrison and Tata Coffee. Barista, India’s largest and fastest growing
currently has over 160 espresso bars across India, Sri Lanka and the
Middle East. Barista traces its roots back to the old coffeehouses in Italy –
the hotbeds of poetry, love, music, writing, revolution and, of course, fine
coffee retail chains wi-fi enabled. Italy’s Lavazza Group acquired 100 per
cent stake in Barista Coffee Company Ltd in the end of first quarter 2007.
Upcoming stores: 35
• Tanishq
Industries Ltd promoted by the Tata Group, India’s most respected and
fastest growing jewellery brand with 103 boutiques in 72 cities across the
country. Tanishq has recorded sales turnover of Rs 1,290 crore for the
Upcoming stores: 20
Location Kota
Built up Area 3.0 lakh sq ft
Plot Size 412’ X 215’ sq ft
Site frontage 400 ft
Front Road width 200 ft
Architects Maithel & Associates, Jaipur
Table 4.1
Location Jamnagar
Built up Area 8 lakh sq ft
Plot Size 2.20 lakh sq ft
Site frontage 325 ft / 671 ft
Front Road width 100 ft
Architects Aakar Design Studio, Ahmedabad
Table 4.2
• Z Square, Kanpur
Location Kanpur
Built up Area More than 8 lakh sq ft
Plot Size 5 acres
Site frontage 130 meters
Front Road width 100 meters
Architects Structural – M/s Hafeez Contractor,
Location Coimbatore
Built up Area 1.4 million sq ft
Plot Size 6.56 acres
Site frontage 325’ 6”
Front Road width 100 feet
Architects Bentel Associates – South Africa
Table 4.4
Location ROHINI
Built up Area 2.5 lakh sq ft
Plot Size 7,232.81 sq meter
Site frontage 16.97 meters
Front Road width 36 meters R/W
Architects G.P. Mathur
Table 4.5
Location Jalandhar
Built up Area 6 lakh sq ft
Plot Size 3.314 acres
Site frontage 184’
Front Road width 74’ (NH-1)
Architects RSP Akitek, Malaysia;
• Promenade, Delhi
Location Delhi
Built up Area 4.88 lakh sq ft
Land Area 19,800 meters
Net Leasable Area 2,95,000 sq ft
Table 4.9
and application solutions for simplifying the working of big retail shops and
• SAP India
• PROTOCOL
• Shopworks
• Safe Enterprises
• Four Dimensions
• OM Logistics
• SAFEXPRESS
• DRS Logistics
Retail Mix 5
India has indeed started shopping in malls and new malls are
mushrooming in every nook and corner of important cities in India. But it goes
without a second thought that if malls have made a huge difference in the ways
India shopped; they have also invited unnecessary worries and the foremost
Brand, Retail Mix: Retail mix can be understood as the brand outlets in
malls catering to the interest of the target audience, which depends on factors
such as city and location. Mr. Astitva Sen, Vice President, Retail & Consumer
Goods, Technopark Advisors Pvt. Ltd, explains the basic difference between
retail and brand mix. He says Retail mix refers to the plan of category-specific
space allocation within a mall. For example what would be the break-up of space
allocated, say, to food and non-food? Brand mix refers to the space allocation
plan for various brands (national as well as local) within various categories.
Adding to the concept, Mr Pradeep Seth, CMD, Stadia Group, says, The brand
mix in a mall is the mixing of tenants depending on the market the mall is
targeting at. For a mall to succeed, it is very important to have an appropriate mix
and critical mass associated to its mix. A mall has to be conceived in such a way
and category management is to retailers. They present the character of the mall
and distinctiveness to the target consumer, critical for gaining customer loyalty in
Zoning: zoning is placing the right tenant at the right place. Mall
developers, therefore, first identify their anchor tenants and build their tenant mix
around them. Malls are built around the three concepts of zoning, comparative
This is done to facilitate the end consumer in the selection of goods by making
For example, one case of consumer-specific zoning would be separate areas for
men’s wear, women’s wear and accessories, kids section, electronics and home
crowd pullers and contribute immensely in making the mall a favourite shopping
store) that supports the development to get more footfalls. The anchor stores are
placed in such a way that they even out the traffic movement and act as crowd
pullers and smaller tenants survive because of this traffic. It is critical for any mall
developer or owner to plan and finalise anchor tenants and, then, rest of the retail
mix. The advantage that anchor tenants have is they enjoy favourable terms from
the developer such as lower rentals, better conversion ratios and dedicated
parking space.
Consumer segment
Retail mix
while choosing the tenants of a floor. For instance, a jewellery brand is located
next to a sari store. Stating the importance of right selection of retail mix, it is very
necessary for a mall developer to understand its audience. Zoning plays a vital
role in making the mall a successful venture. There are various factors that affect
a mall’s zoning. The most important of them is placement. Another major factor is
the placement of anchors. It’s very critical that a mall developer decides on its
audience, tenants and delivers what consumers expect for this helps in
study the consumer behaviour and follow a slightly different approach. For
instance, if a mall is big and spread over a large area, then splitting up the
anchor and key tenants can generate footfalls on every floor and push the
attention of consumers. Giving a few golden rules for being successful, some
consumption capacity.
2) Creating distinctiveness.
unloading bays).
behaviour and then planning the anchored and other tenant mix in a mall.
Visual Merchandising 6
merchandising (VM) can be defined in many ways viz. from the point of view of
The essential question that one has to put to store planners is ‘Are you
Planograms, aesthetics, aisle widths etc. are parts of VM process. But, the first
step is to understand, anticipate and locate points within the store, which can be
Many brands resort to making out a common kit and dispatching it with an
installation instruction and then hope for the best. This approach usually
covers only the window. Many a time, brands and retailers who do not
numbers across pan-India. A lot of them are franchisee windows and got a
across 100 stores or more in time for the theme or occasion. This mainly
5. As the chain goes larger and the number of multiple formats increases,
The state of affairs will change if the followings are observed and made to
happen:
responsibility.
5. Ensure that the design and the material used relate to costs short-term
6. Try not involving store managers in deciding on the way the installation
8. Develop an outside agency for design and execution unless you are
agency is that the designs are more varied and exciting. An internal team
Findings: -
Fig. 7.1
in the graph.
2. India is rated the fifth most attractive emerging retail market: a potential
goldmine.
estimated at 24%.
11. Buying thru touch, feel & comparison without dealer influence.
20. 24 hr retailing.
21. Shoppertainment:
b. Variety.
Suggestions: -
– Reach.
– Credit facilities.
– Home delivery.
– Intangible factors.
– Consortium (conglomerate).
Conclusion 8
Fig. 8.1
The above is the SWOT analysis of Indian Retail Industry. The ‘S’ shows
all of the strengths, ‘W’ shows the weaknesses, ‘O’ shows the opportunities and
the ‘T’ shows the threats which is faced by the existing players in the retail
industry. The following are the some of the future directions both positive and
• AT Kearney has estimated India’s total retail market at US$ 202.6 billion
which is expected to grow at a compounded 30 per cent over the next five
years.
• With the organised retail segment growing at the rate of 25-30 per cent
per annum, revenues from the sector are expected to triple from the
• The share of modern retail is likely to grow from its current 2 per cent to
• Over next two years India will see several Indian retail businesses
• Wal-Mart: huge plans for India. Moving a senior official from its
• New York-based high-end fashion retailer Saks Fifth Avenue has tied up
with realty major DLF Properties to set up shop in a mall in New Delhi.
• Lack of differentiation among the malls that are coming up. One option
management techniques.
storage leads to Indian retailers having higher inventories. VAT has helped
area.
Fig. 8.2
Bibliography
Business Today (magazine)
Retailer (magazine)
M Now (magazine)
www.indianretail.com
www.wikipedia.org
www.managementparadise.com
Appendices
Table A.1
Fig. A.1
Fig. A.2
Table A.2
Fig. A.3
Fig. A.4
Table A.3
Table A.4