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Transcript of vijaysales
Retail - A Booming Industry
Members
• Aashish Gupta• Nirav Gada• Praveen Kushwaha• Ketan Chauhan• Rahul Shankar
Glimpse: Retail industry
Indian retail industry is the fifth largest in the world.
Retail sector is contributing10-14% to GDP employing over 7-
8% of total work force.
Organized retailing- 4%, unorganized retailing-96%
the industry is expected to grow at a pace of 25-30% annually.
Indian retailing is expected to reach at US$637 billions by
2015.
India is fifth preferred destination globally.
Retail Formats
• Hypermarkets/ Supermarkets• Mom- and- Pop Stores• Departmental Stores• Convenience Stores• Shopping Malls• E-trailers• Discount Stores• Vending• Category Killers• Specialty Stores
Major Indian retailers
Popular buisness model
High volume-low margin business model.
38% of the respondent companies operate in the high
volume–low margin business model.
Key driversEconomic Growth Urbanisation Consumerism
Brand Profusion Availability Of Real State Changing Consumer Needs And Preferences
FDI Increased investment in Retail
A large unorganized sector
next
Economic Growth
Source : http://www.indexmundi.com/india/gdp_real_growth_rate.html
Economic Growth contd….• Contribution of Various Sectors in GDP
Contribution for 1990-1991
Agriculture – 32 %
Industry – 27%
Service – 41%
Contribution for 2005-2006
Agriculture – 20%
Industry – 26%
Service sector – 54%
Contribution for 2007-2008
Agriculture – 17%
Industry – 29%Service sector – 54%
Contribution for 2009
Agriculture – 15.8%
Industry – 25.8%
Service sector – 58.4%
Source: www.indexmundi.com/india/gdp_composition_by_sector.html
Urbanization
Demands of consumer durables figures in ‘000
Consumerism
• The increasing influence of the western media has led to a considerable change in the life style of the Indian consumer.
• The economic well being of Indian Middle class and their growing aspirations for material comforts has also been responsible for consumerism slowly gaining momentum in India.
Brand Profusion
• Consumerism and increased brand conscientiousness has led to increased number of brands today.
• There is presence of al most all kinds of global brands in the present market situation.
• The launches of more and more brands into the market increased the demand of shelf space and hence demand for retail outlets.
Changing Customer need and preferences
• Various reason for changing customer needs and preferences:
1. Single family concepts 2. Dual Income Concepts 3. Limited to One children concepts 4. Willing to spend concepts 5. Brand Preference concepts 6. Personal and Health Care concepts
FDI
• Global players have shown greater interest in this sector.
• 100% FDI in cash and carry through automatic route and 51% in single brand outlets through approval is permitted.
• Franchise route is available for big operators.• The Ministry of Finance has recently announced new
FDI norms for enhancing the investment in this sector.
Increased Investments in Retail
• An investment of $35bn is expected in next five to seven years.
• Modern retailers in India are working on number formats from supermarket to hypermarket to discount to convenience stores.
• The share of Investment slated for Hypermarket,supermarket, speciality stores and cash and carry is 40%,28%,18% and 14% respectively.
• According to AT Kearney, India is ranked at 5th preferred destination for investors among 30 most attractive retail markets in world
Large unorganized retail
• India retail market is dominated by the unorganized sector.
• Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular.
• Unorganized retailing consists of small and medium grocery store, medicine stores, subzi mandi, kirana stores, paan shops etc.
• More than 90% of retailing in India fall into the unorganized sector, the organized sector is largely concentrated in big cities.
Consumer durables in India• LCD TVs sales grew 93% to 10 Lac Units
Washing Machines sales grew 14% to 24 Lac unitsRefrigerators sales grew 16.5% to 50 Lac units.
(Jan to November 2009)
• 70% sales of consumer electronics came from large cities.
• Leading players have shown handsome growth - Samsung at 25% and LG at 30%.
Source:retailmantras.blogspot.com
Penetration of organized retail
Consumer durable marketproduct Urban rural
TVs 76% 36%
refrigerators
32% 5%
Air conditioners
About 25%
Less than 1 %
Washing machine only 1 % Rural penetration
Target Market
• India’s working population (in the 15-49 years age group) constituted around 53% of the population
• The organized retailing is expected to receive a boost because of the young population by 2020.
Mumbai emerges as the preferred location for retailing
amongst 24 popular locations for organized retail in India, Mumbai was found to be the most preferred location.
7% of the respondent companies reported to have retail stores/ outlets in Mumbai
Employment Generator
• The retail segment has churned out employment opportunities in India.
• Job prospects for the younger generation.
• The retail sector employs a high number of under-graduates.
Future
• The retail industry in India is currently growing at a great pace
• Expected to go up to US$ 833 billion by the year 2013
• Expanding middle & Upper class consumer base
• India has been ranked as the most attractive nation for retail investment
" WINNING DOESEN'T ALWAYS MEAN BEING FIRST,WINNING MEANS YOU'RE DOING BETTER THAN YOU'VE DONE BEFORE
Emergence of vijay sales
Came to mumbai in 1966.
Started working as a salesman in an electronics store.
Opened first electronics shop in mahim in 1967.
Initial capital invested 10,000.
Named the first shop after his younger brother Vijay.
It sold sewing machines, fans and black-and-white TV sets.
Four best things
Best products- thrill customers with technology
Best price- Price drives customers and sales
Best service- service is what makes the customer come again
& again.
Honesty
“Risk is everything”- biggest showroom in Goregoan in 1996
Vijay sales-2010
one of Mumbai's leading chain of electronic superstores
9000 products across eleven categories.
four decades of successful operation.
25 branches in Mumbai, 5 branches in Gujarat, 5 branches in Pune
and 2 branches in Delhi.
Employed staff- more than 1500.
technology-based solutions to improve management efficiencies
Mision
• As pioneers of electronic retailing and India's preferred chain of electronics superstores, have a high level of responsibility towards our customer for the faith they place upon us.
• Vijay Sales would give its customers best value, best products and the best available service in the industry.
Work Culture
• Friendly working environment
• Distinctive work culture
• Transformational leadership
• Considering employees as entrepreneurs
• Salute to the performers
Software
• Wings software• The company chose Wings Retail Solution
consisting of Wings Retail Appliances Wings Accounting Wings Asset and Wings Payroll • The implementation was completed by April 1,
2008 and all systems are live on Wings.
Inter branch transaction
Features
• Forms Designing helped design printed documents for all kinds of documents, exactly as required, including some unusual ones
• Dashboard helps manage the business easily • Customizable screens helps in adapting the software to the
company’s needs
• The Report Designer helps design and manage new use of reports and get more out of the system by way of information and analysis.
Competitors
Branch Discription
• Branch Manager – Chandan Kharat• Branches – 35• No of employee – 60(Goregaon hub branch)• Employee entry & exit timings:11:15 am & 9:45 pm• Turnover – 7 cr or above(Goregaon Hub
Branch)
3P’S
Products
• TV• Washing Machine• Laptops• Mobiles• Kitchen electronic items• Freeze• Dvd players• Music Systems etc
Ordering Process
• Branch manager pass the order to the head office
• Order according to the availability of the products
• Bring products directly from warehouse
• Twice in a weak
• Bring products through contractor
Supply Chain
Company Ware house Branches- Vijay sales
Warehouse
• Location:ShivnariVandukBhiwandi• Reason for choosing these location:Because of octroi Because of low cost of land
Warehouse Location
Merchandising
• Arrange the products segment wise
• Same category products on the same self
• Arrange according to the size also
• Keeps new products at the front
• Design keeps on changing
TVSelf
Baggage counter
Entranc
e
TV Self
Other Electronics
LED
Cash
Counter
Freez
Mobile & Cameras
Customers
• Volume of customers:
300 for window shopping200 confirmed customer
• Most customers belongs to age of 18-35
• More sales of laptop, lcd & mobile
HR Process
• Most of them are: Graduate & Undergraduate• These are sales executive• Training• Work is being allotted according to the knowledge
of employee• HR person select the best person according to
their skill
Future Plans
• Planning to open more outlets
• Planning to open more braches outside Mumbai
• Also planning to increase the capacity of warehouse
• These all shows their sales is increasing
Thank You