RETAIL FORMATS IN INDIAAn Overview:

Facts about Retail Industry in INDIA:

Retailing in India is one of the pillars of its economy and accounts for 14 to 15 per cent of its GDP

Fifth largest in the world Fastest growing industry in the country, expected growth rate

25%-30% annually Mostly the industry in unorganized due to huge difference in

taste and demands The industry is getting more popular nowadays and becoming

organized also in terms to serve the needs of customers

Challenges faced by Retail Industry in India:

Automatic approval is not allowed for foreign investment in retail Regulations restricting real estate purchases, and cumbersome

local laws Taxation, which favours small retail businesses Absence of developed supply chain and integrated IT

management Lack of trained work force Low skill level for retailing management Lack of Retailing Courses Intrinsic complexity of retailing – rapid price changes, constant

threat of product obsolescence and low margins

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UNORGANIZED:

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MOM & POP STORES:

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Generally family-owned businesses catering to small sections of society

Owned and operated by individuals Range of products are very selective and few in numbers These stores are known for their high standards of customer service

Peddlers and Hawkers

Hawker: An individual who sells wares by carrying them through the streets

person's ordinary methods of attracting attention include addressing the public, using placards, labels, and signs, or displaying merchandise in a public place

A peddler is defined as a retail dealer who brings goods from place to place, exhibiting them for sale

he does not have a fixed place of conducting business, but regularly carries the goods for sale with himself

he or she does not have a fixed place of conducting business, but regularly carries the goods for sale with himself or herself

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Market Traders & Street Traders

A Street market is an outdoor market such as traditionally held in a market square or in a market town, and are often held only on particular days of the week

Very similar markets, or bazaars can also be found in large enclosed spaces, instead of on a street

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ORGANIZED

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SPECIALTY STORES:

A typical specialty store gives attention to a particular category and provides high level of service to the customers

For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.

DEPARTMENT STORES: A retailer of such store carries variety

of categories and has broad assortment at average price & offer considerable customer service

For example: Food World in Bangalore

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DISCOUNT STORES:

Offers extensive assortment of merchandise at affordable and cut-rate prices

Normally retailers sell less fashion-oriented brands

The service is inadequate For example: The Loot

CONVENIENCE STORES:

Is essentially found in residential areas

Provide limited amount of merchandise at more than average prices with a speedy checkout

Store is ideal for emergency and immediate purchases

For Example: Reliance Fresh

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HYPERMARKETS:

Provides variety and huge volumes of exclusive merchandise at low margins

Operating cost is comparatively less than other retail formats

For Example: Dmart , Big Bazaar, Trent, Landmark, Star Bazaar

SUPERMARKETS:

a self service store consisting mainly of grocery and limited products on non food items

may adopt a Hi-Lo or an EDLP strategy for pricing

supermarkets can be anywhere between 20,000-40,000 square feet

For Example: SPAR™ supermarket

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MALLS: Has a range of retail shops at a single

outlet Endow with products, food and

entertainment under a roof For Example: Inorbit Mall, Ambience

Mall.

CATEGORY KILLERS Supplying wide assortment in a single

category for lower prices a retailer can "kill" that category for other retailers

The products are displayed at the center of the store and sales person will be available to address customer queries and give suggestions when required

For Example: Pai Electronics store in Bangalore.

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E-TAILERS: Customer can shop and order

through internet and the merchandise are dropped at the customer's doorstep

Format is ideal for customers who do not want to travel to retail stores and are interested in home shopping

For Example: Amazon and Ebay

VENDING MACHINES: An automated piece of equipment

wherein customers can drop in the money in machine and acquire the products

This system is currently not widely used in India

For example: Soft drinks vending at Bangalore Airport

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THANK YOU!!!Group Members:

AKSHAY JAIN

BARKHA AGARWAL

CHIRAG SUKHIJA

NIDHI MATHUR

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