7/31/2019 REETAIAL

1/14

Retail Industry

7/31/2019 REETAIAL

2/14

1

INDEX

Sr. No Topics Page Number

1. Introduction 2

2. Organized & Unorganized retailing in India: 3

3. Growth drivers in India for retail sector: 4

4. Employment opportunities in retail sector in India: 4

5. Conclusion 5

6. Levis 6

7. Questionnaire on Levis 7

8. Van Heusen 10

9. Questionnaire on Van Heusen 11

7/31/2019 REETAIAL

3/14

2

Introduction:

Retailing involves all activities incidental to selling to ultimate consumer

for their personnel family and household use. It does this by organizing their availability on a

relatively large scale and supplying them to customers on a relatively small scale. Retailer is

any person/organization instrumental in reaching the goods or merchandise or services to the

end users.

The Indian retailing industry is becoming intensely competitive, as more

and more payers are targeting for the same set of customers. The major retail players are

Pantaloon,ShoppersStop,Reliance,etc..,Retailing is one of the biggest sectors and it is

witnessing revolution in India. The new entrant in retailing in India signifies the beginning of

retail revolution. India's retail market is expected to grow tremendously in next few years.

According to AT Kearney, The Windows of Opportunity shows that Retailing in India was at

opening stage in 1995 and now it is in growth stage in 2008. India's retail market is expected

to grow tremendously in next few years. Retail market is expected to grow 10% a year, with

modern This window of opportunity is useful for executives who plan their market-specific

strategies; the four stages or the lifecycle of this industry are as follows:

Growth:

In growth stage, the market is developing quickly and also ready for modern retailing.

Countries, which are in Peaking stage such as India. Retailers entering this stage have the

best chance for long-term success. Retailers at this stage should enter through local

representations,sourcingofficesandnewstores.

Strategy suggested: The strategy of adopting quality and styled products with new models

and shift of advertising from product awareness to product preference .The idea behind

adopting this strategy is to strengthen against competitors.

Maturity:

In this stage the market is still big and growing, but the space for new entrants will become

tighter and retailers should act quickly at this stage because retailers at this stage have limited

7/31/2019 REETAIAL

4/14

3

time to explore, and also their margin for error is thin. In general, they should act according

to the established rules and should be open to face the competition from international

retailers. This stage generally lasts longer than the previous two stages.

Strategy suggested: Enter new market segments that is either enter new geographic areas or

introduce new and innovative products and offers.

Decline:

\

The window of opportunity is closing fast and modern retail share is reaching 40 to 60

percent. Though the opportunity is closing the existing retailers can enter with new formats

such as discount models or non-food formats such as consumer electronics and apparel.

Window of opportunity ends for about 5 to 10years before a market enters the closing phase

and reaches saturation level. India for example, was in the opening stage in 1995 and entered

peaking stage in the year 2003 and reached number 1 rank in2005.Strategy suggested: Identifying weak segments, maintaining investment level selectively.

Unorganized retailing in India:\

In India, the most of the retail sector is unorganized. In India, the retail business contributes

around 11 percent of GDP. Of this, the organized retail sector accounts only for about 3

percent share, and the remaining share is contributed by the unorganized sector which is

mostly a family owned business in India. The main challenge facing the organized sector isthe competition from unorganized sector. Unorganized retailing has been there in India for

centuries, theses are named as mom-pop stores. The main advantage in unorganized retailing

is consumer familiarity that runs from generation to generation. It is a low cost structure; they

are mostly operated by owners, has very low real estate and labour costs and has low taxes to

pay.

Organized retailing in India:

In late 1990's the retail sector has witnessed a level of transformation. Retailing is beingperceived as a beginner and as an attractive commercial business for organized business i.e.

the pure retailer is starting to emerge now. Organized retail business in India is very

Organized retailing will grow faster than unorganized sector and the growth speed will be

responsible for its high market share, which is expected to be $ 17 billion by 2010-11.

Retailing will show good prospects in cities like Mumbai, Delhi, Chennai, Kolkata, Banglore

and Kanpur. After Dubai, Singapore and Hong Kong, In India Delhi will be the next big

7/31/2019 REETAIAL

5/14

4

retail destination, According to Confederation of Indian Industries whose findings have

shown that Delhi has the good resources and good conditions for the retail sector..

The organized sector is expected to grow faster than GDP growth in next few years driven by

favourable demographic patterns, changing lifestyles, and strong income growth. This

organized retail sector mix includes supermarkets, hypermarkets discounted stores.

Growth drivers in India for retail sector:

Rising incomes and improvements in infrastructure are enlarging consumer markets and

accelerating the convergence of consumer tastes.

Liberalization of the Indian economy

Increase in spending per capita Income.

Advent of dual income families also helps in the growth ofretail sector.

Shift in consumer demand to foreign brands. Consumer preference for shopping in new environs.

The Internet revolution is making the Indian consumer more accessible to the growing

influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in

creating awareness about global products for local markets.

The increasing share of young population in total population of India.

Availability of quality real estate and mall management practices

Foreign companies' attraction to India is the billion-plus population.

Employment opportunities in retail sector in India:

India's retail industry is the second largest sector, after agriculture, which provides

employment. According to Associated Chambers of Commerce and Industry of India

(ASSOCHAM), the retail sector will create 50,000 jobs in next few years.

Retail companies are starting retail management courses in partnership with management

institutes, roping in talent from other sectors and developing comprehensive career growth

Trent has also started in-house learning programmes and now goes to under graduate

colleges to recruit students. Since, the job market is hugely receptive to this with more and

more business schools focusing on the sector and large retailers setting up retail academics.

Challenges of Retailing in India

7/31/2019 REETAIAL

6/14

5

In India the Retailing industry has a long way to go, and to become a truly

flourishing industry, retailing needs to cross the following hurdles:

The first challenge facing the organized retail sector is the competition from unorganized

sector.

In retail sector, Automatic approval is not allowed for foreign investment.

Taxation, which favours small retail businesses.

Lack of trained work force.

Low skill level for retailing management.

Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence and

low margins.

Organized retail sector has to pay huge taxes, which is negligible for small retail business.

Cost of business operations is very high in India.

Conclusion:

Many agencies have estimated differently about the size of organized retail market in 2010.

The one thing that is common amongst these estimates is that Indian organized retail market

will be very big in 2010. The status of the retail industry will depend mostly on external

factors like Government regulations and policies and real estate prices, besides the activities

of retailers and demands of the customers also show impact on retail industry.

As the retail market place changes shape and competition increases, the potential forimproving retail productivity and cutting costs is likely to decrease. Therefore it is important

for retailers to secure a distinctive position in the market place based on values relationships

experience.

Finally it is important to note that these strategies are not strictly independent of each other;

value is function of not just price quality and service but can also be enhanced by

personalization and offering a memorable experience.

7/31/2019 REETAIAL

7/14

6

Levi Strauss & Co. is a worldwide corporation organized into three geographic divisions: Levi

Strauss Americas (LSA), based in the San Francisco headquarters; Levi Strauss Europe, MiddleEast and Africa (LSEMA), based in Brussels; and Asia Pacific Division (APD), based inSingapore. The company employs a staff of approximately 10,500 people worldwide. The coreLevi's was founded in 1873 in San Francisco, specializing in riveted denim jeans and differentlines of casual and street fashion.

From the early 1960s through the mid 1970s, Levi Strauss experienced explosive growth in itsbusiness as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" andserved as a catalyst for the brand. Levi's, under the leadership of Walter Haas Jr., Peter Haas, EdCombs, and Mel Bacharach , expanded the firm's clothing line by adding new fashions andmodels, including stone-washed jeans through the acquisition of Great Western Garment Co.

(GWG), a Canadian clothing manufacturer, and introducing Permanant Press trousers under theSta-prest name.

The company experienced rapid expansion of its manufacturing capacity from fewer than 16plants to more than 63 plants in the United States from 1964 to 1974 and 25 overseas. Levi's'factory expansion was accomplished without a single unionized employee. The use of "pay forperformance" manufacturing at the sewing machine operator level up. As a result, Levi's' plantswere perhaps the highest performing, best organized and cleanest textile facilities of their time.Levi's even piped in massive amounts of air conditioning for the comfort of Levi's workers intoits press plants, which were known in the industry to be notoriously hot.

7/31/2019 REETAIAL

8/14

7

Questionnaire:Name: Sunil JoshiDesignation: Store ManagerCompany: Levis

1. What according to you is good customer service?Good customer service means having thorough knowledge of your inventory, experience withyour products, and being able to help customers make the best choices for them. It's one of thethings that can set your business apart from the others of it's kind.

2. What is customer service to you?It includes trying your best to make sure that the customer is satisfied.Customer service is being

friendly and helpful to customers.Customer service is helping customers satisfy the need thatbrought them into the store

3. When a customer complains that the Apparel is not upto her expectation , whatwould you do?

I offer to have a look on the other shelves to the customer. I take the complaint seriously. Inormally offer her the option of trying another one, as this one may not have been to her taste.

4. What according to you is good customer service?Good customer service means having thorough knowledge of your inventory, experience withyour products, and being able to help customers make the best choices for them. It's one of thethings that can set your business apart from the others of it's kind.

5. How do you manage your co-worker when they are rude to customers?I normally try to set a good example, by being courteous and helpful to the customers and myco-workers. I try to get friendly with them, and see if there is something going on that is making

7/31/2019 REETAIAL

9/14

8

him unhappy. I dont want to be a snitch, but a store's reputation depends largely on it's customerservice, and rude sales associates can create a negative impact on that reputation.

6. What is most important - a good product or friendly, fast service?Both are extremely important. A good product is essential, but without the customer service to

back it up, there is no reason for someone to buy it here as opposed to somewhere else or on line.Fast, friendly service can make a bargain product that much more attractive to customers.A superior product will speak for itself, and friendly, efficient customer service is what will setus apart from the competition.

7. What is customer service to you?It includes trying your best to make sure that the customer is satisfied.Customer service is being

friendly and helpful to customers.Customer service is helping customers satisfy the need thatbrought them into the store

1. How do you get more customers for your business? What are the steps you wouldtake?

Being in a lucrative market, Promotional activities like posters, contests, coupons, give-away tocreate extra interest in the purchase of a product or services from customers.

2. As a supervisor for a wholesale market, what actions would you take to increase theprofit?

I Oversee the distribution of merchandize to different outlets and maintain adequate stock levels.Establish a good rapport with suppliers and supervise the retail outlet markets to get a betterknowledge of supply chain management which automatically increases my profit.

3. In a fashion led clothing industry as a retailer, who would be your targetedcustomer?

my target customer are fashion conscious young people, typically between the age of 18 to 35,who would want to dress well and can spend money on that. Actually, there is no age limit asfashion is a state of mind; anybody can retain it for whatever age. However, easily targetedcustomers would be of this age people.

4. As a Store manager, how do you plan your financials for your budget?I analyze actual spend vs. forecast and plan future sales and retail storage. Provide salesadjustments/discounts reporting and analysis, which could be helpful in further analysis of thebusiness. As a manager I ensure, that I keep a track of all the finances and expenses incurredduring the process of transportation, salaries and wages of drivers and other helpers in loadingand unloading the goods and services. Maintain a ledger for the cost involved in storage andmaintenance of goods and services.

7/31/2019 REETAIAL

10/14

9

5. What are your ideas on handling store management?Store management is a very critical thing, especially if you are not able to transport everythingon the same day or a given deadline; you need to store the goods and services properly until it istransported to the correct destination or to the proper retailer. It involves managing and refiningthe goods, forecasting the process, inventory and product strategies, and their impact on store

level performance

6. How would you ensure that all the goods and services are being transportedproperly from wholesale market to retail market?

I directly supervise and co-ordinate the transportation activities and material moving machineand vehicle operators and take a physical count of the goods being transported and check withthe actual numbers. I also keep a track of the retailer suppliers for the exact number of goods andservices being transported.

7. What are the things that you need to check in a retail market, as a store manager?As a store manager I directly manage the sales workers in my store. I get involved in

management functions such as purchasing, budgeting, accounting and ensure quality of supplyapart from my regular supervisor work.

8. How do you get more customers for your business? What are the steps you wouldtake?

Being in a lucrative market, Promotional activities like posters, contests, coupons, give-away to create extra interest in the purchase of a product or services from customers.

9. As a supervisor for a wholesale market, what actions would you take to increase theprofit?

I Oversee the distribution of merchandize to different outlets and maintain adequate stocklevels. Establish a good rapport with suppliers and supervise the retail outlet markets toget a better knowledge of supply chain management which automatically increases myprofit.

10.Is there any effect of seasonal festivals on sales?Yes, there is a defintate good and positive impact of seasons in our sales. It directly

increases our sales double further increasing our profits and thus our incentives

11. Which method of controlling stock in your showroom?We use Periodic review system for controlling our stock.

12. What are the factors on which you decide the visibility of the Apparels?Its basically predetermined; The newest trend in the industry is made visible to the

customers to attract them.

7/31/2019 REETAIAL

11/14

10

Phillips-Van Heusen (PVH) is an American apparel company, and the world's largest shirtcompany. It owns brands such as Tommy Hilfiger, Calvin Klein, Van Heusen, Izod, Arrow, G.H. Bass and licenses brands such as Geoffrey Beene, BCBG Max Azria, Chaps, Sean John,Kenneth Cole New York, JOE Joseph Abboud and MICHAEL Michael Kors. PVH Corp's mainheadquarters are located in Manhattan, with administrative offices in Bridgewater, New Jersey,and Los Angeles, California. Phillips-Van Heusen has several sourcing facilities worldwide.These facilities are located in Bangladesh, Sri Lanka, China, Honduras, Hong Kong, Indonesia,

Philippines, Malaysia, Mongolia, Singapore, Thailand and Taiwan. The corporation employsover 12,000 people worldwide. Since becoming part of Gazal and manufactured under license byus from 1976, we have established the Van Heusen brand as the dominant business shirt inAustralia, created a loyal consumer following and developed a chain of supply from place ofmanufacture to point of sale that is coveted by many of our competitors. Phillips-Van HeusenCorporation has since then acquired the rights to the name and the trademarks globally,continues to advance the recognition of the Van Heusen brand internationally and supports Gazalwith product extensions in our territory

7/31/2019 REETAIAL

12/14

11

Questionnaire:

Name: Pranav Mehta

Designation: Store Manager

Company: Retail Shop

1. What kind of shelf space does u provide for this product?As you step into the store, the logo is seen at every shelf space. The shelf space isallocated to every product as per the requirements. They have allocated more space forthe formal shirts. They have used enough space for the smooth movement between theshelves in the outlets. It is very convenient for the customers while shopping. They haveused the area which receives the most traffic.

2. How the product is placed on the shelf?On the shelf, the product is placed in accordance of the price and the quality. The leastprice and the high price goods kept separately. The new arrivals are placed in thedifferent stand which is visible even from outside the store.

3. What is the monthly sales turnover of the product?The monthly sales turnover was not disclosed by the manager.

4. What is the pricing strategy of the product?The price of the product is high as they are providing a good quality fabric. The startingprice of shirts is Rs1200 and the most expensive shirt cost Rs.3500. the starting range oftrousers is Rs. 1500 and the most expensive one ended with Rs. 6500.

5. What is the margin of the product?The margins on the product were not disclosed by the manager.

7/31/2019 REETAIAL

13/14

12

6. Are there any schemes or offer which is going on nowadays on the product?There is no current scheme or offer. But there is an upto 50% sale on the old stock duringthe end of financial year. We make the customer aware of the sale by advertising innewspapers and internet.

7.

Is the product based on any seasonal factor?No, the product is not based on seasonal factor.

8. What is the logic behind you buying the product?Customers buy the clothes because they are of good quality and are available in a lot ofunique and basic styles in almost every color. The after sale service is also good.

9. Do the customers get attracted towards the product?Yes, the customers get attracted as our outlet is placed in the area where there is a mosttraffic. They are attracted to our product because we have a enough space to make theproducts visible. In a very short time, we have attracted many customers which resulted

in increase in our sale.

10.What is the frequency of you buying the product?Customers who come to Van Heusen outlet are mostly office going people, businessman.Even students who go to college buy the Apparels as in Post Graduate course it ismandatory to wear formals or mainly for presentation. Students buy the formals mainlyduring the end of financial year in the month of March as we offer discounts upto 50% inthe old stock. We have many customers who visit our outlet every 3 months and 6months.

11.What are the different sizes and packages of the product?The clothes are available in all size i.e. Small, Medium, Large, XL, XXL. Blazers areavailable only of 2 size i.e. Medium and Large size. There are certain designs of shirtswhich are available only in L and XL size but the customers are not attracted.

12.Have you ever encountered any complaint about the product?As van Heusen is a very well known company, products are manufactured precisely withkeeping in mind to maintain the quality. Customers are very satisfied with our productand they never have any complaint against our product.

13.What are the different kinds of promotion activities done by your company?Our company does not do any promotional activity of its products. We have hoardingsand billboards across the city. We do advertise in news papers and magazines wheneverthere is sale in our store.

14.How is visual merchandising done by your company to sell?Van Heusen, known for its elegant and sober attire, has made its presence across retailstores in a way that attracts quite a large number of customers. Like, in various malls, thelook of the store from outside catches the attention of passer-by. The exclusiveshowrooms display of products has been done aesthetically. Product like suits have been

7/31/2019 REETAIAL

14/14

13

given detailed interest by displaying it an organized manner. This well thought outstrategy of creating interest among shoppers has earned them brownie points. The brandslogo is made visible in a smart manner..

15.What is the process of inventory management?At the end of the day, the sales are calculated. If a unit of apparels is sold, then order is placed ofthat unit and within 3 days that unit is received by us.