RETAIL MANAGEMENT

UNIT - I

By
Vaseema N
 INTRODUCTION

• RETAIL IS DERIVED FROM THE FRENCH WORD

RETAILER, MEANING TO CUT PRICE OFF OR
TO BREAK BULK.
• RETAILING IS THE LAST STAGE IN THE
MOVEMENT OF GOODS AND SERVICES TO
THE CONSUMER.
 WHAT IS RETAILING?

ACCORDING TO KOTLER: “RETAILING

INCLUDES ALL THE ACTIVITIES
INVOLVED IN SELLING GOODS OR
SERVICES TO THE FINAL CONSUMERS
FOR PERSONAL, FAMILY USE”
 RETAILER
• A RETAILER IS A BUSINESS THAT SELLS
PRODUCTS AND SERVICES TO CONSUMERS
FOR THEIR PERSONAL OR FAMILY USE.

• A DISTRIBUTION CHANNEL IS A SET OF FIRMS

THAT FACILITATE THE MOVEMENT OF
PRODUCTS FROM THE POINT OF PRODUCTION
TO THE POINT OF SALE TO THE ULTIMATE
CONSUMER.
A RETAILER’S ROLE IN A DISTRIBUTION CHANNEL

Manufacturing Wholesaler Retailer consumer

 THE MARKETING – RETAIL EQUATION

Manufacturer Manufacturer Manufacturer

Wholesaler

Retailer

Retailer Feedback

Consumer Consumer Consumer

6
 4 P’S OF RETAILING

THE FOUR P’S OF RETAILING THAT ENHANCE THE SALE OF A PRODUCTS

ARE;

1. PASSION

2. POSSESSION

3. PLACE

4. PLEASURE
 1.PASSION
 THE TERM PASSION MAY REFER TO FEELING VERY
STRONGLY ABOUT A SUBJECT OR PRODUCT,
USUALLY REFERRING TO FEELINGS OF INTENSE DESIRE
AND ATTRACTION, IS VERY PASSIONATE ABOUT
SOMETHING.
 IT GENERALLY SHOWS THE ATTITUDE/EAGERNESS
OF A CUSTOMER TOWARDS A PRODUCT THAT
HE/SHE BUYS. I.E. TO WHAT EXTENT THE CUSTOMER
IS ADDICTED TO BUY A PRODUCT.
 E.G. WHEN BAJAJ LAUNCHED PULSAR MANY OF THE
YOUNGSTERS HAVE EAGERNESS TO BUY IT.
 2. POSSESSION
• IT IS GENERALLY SEEN THAT
WHENEVER A
FIRM/BRAND/COMPANY LAUNCHES
A NEW PRODUCT FOR WHICH THE
CUSTOMERS HAVE BEEN WAITING
FOR A LONG TIME, POSSESS AN
EAGERNESS TO AVAIL THE PRODUCT
OR SERVICE AS SO POSSIBLE.
• E.G. LATEST VERSION OF APPLE
IPHONE
 3. PLACE

• THE PLACE REFERS TO PLACEMENT (USUALLY

MANAGED BY SALES), SUCH AS HAVING THE
PRODUCT AVAILABLE WHERE AND WHEN
TARGETED CUSTOMERS WANT TO BUY IT.
 4. PLEASURE
• PLEASURE IS COMMONLY CONCEPTUALIZED
AS A POSITIVE: EXPERIENCE, HAPPINESS,
ENTERTAINMENT, ENJOYMENT.
• HOWEVER, IS A DIFFICULT CONCEPT TO
DEFINE AS THE EXPERIENCE OF PLEASURE
DIFFERS FROM INDIVIDUAL TO INDIVIDUAL.
• E.G. SERVING FOOD THROUGH TRAIN IN
RESTAURANTS.
 LIST OF RETAIL COMPANIES IN INDIA
• MC DONALD
• TITAN INDUSTRIAL LTD.
• RELIANCE
• THE BOMBAY DYEING &
MANUFACTURING CO. LTD
• MADURA GARMENTS MAJOR
BRANDS (INDIA) PVT. LTD.
• LIFESTYLE INTERNATIONAL PVT. LTD.
• BHARAT PETROLEUM CORPORATION LTD.
• SHOPPERS STOP
• CAFE COFFEE DAY
• RAYMOND LTD.,
• TCS TEXTILE PVT. LTD. (THE CHENNAI SILKS)
 FUNCTIONS PERFORMED BY RETAILERS

• PROVIDING ASSORTMENTS

• BREAKING BULK

• HOLDING INVENTORY

• PROVIDING SERVICES

• COMMUNICATING

• ADVERTISING AND POP DISPLAY

• TRANSPORTATION
 1.PROVIDING ASSORTMENTS
 SUPERMARKETS TYPICALLY CARRY 20,000 TO
30,000 DIFFERENT ITEMS MADE BY OVER 500
COMPANIES.
 OFFERING AN ASSORTMENT ENABLES THEIR
CUSTOMERS TO CHOOSE FROM A WIDE
SELECTION OF BRANDS, DESIGNS, SIZES,
COLORS AND PRICES AT ONE LOCATION.
 SUPERMARKET PROVIDE ASSORTMENTS OF
FOOD, HEALTH AND BEAUTY CARE,
HOUSEHOLD PRODUCTS, AND CLOTHING .
 2.BREAKING BULK
 BREAKING BULK IS IMPORTANT TO BOTH
MANUFACTURERS AND CONSUMERS.
 WHEREAS IT IS COST EFFECTIVE FOR
MANUFACTURERS TO PACKAGE AND SHIP
MERCHANDISE IN LARGE, RATHER THAN
SMALLER, QUANTITIES, CONSUMERS WANT
TO PURCHASE MERCHANDISE IN SMALLER,
MORE MANAGEABLE QUANTITIES.
 3.HOLDING INVENTORY

• A MAJOR FUNCTION OF RETAILERS IS TO KEEP INVENTORY THAT IS ALREADY BROKEN INTO USER-
FRIENDLY SIZES SO THAT PRODUCTS WILL BE AVAILABLE WHEN CONSUMERS WANT THEM.
 4. PROVIDING SERVICES
 RETAILERS PROVIDE SERVICES THAT MAKE IT
EASIER FOR CUSTOMERS TO BUY AND USE
PRODUCTS.
 THEY OFFER CREDIT SO CONSUMERS CAN
HAVE A PRODUCT NOW AND PAY FOR IT
LATER.
 SOME RETAILERS HAVE SALESPEOPLE IN
STORES OR USE THEIR WEB SITES TO ANSWER
QUESTIONS AND PROVIDE ADDITIONAL
INFORMATION ABOUT PRODUCTS.
 5. COMMUNICATING
• THE RETAILER BEING AN INTERMEDIARY OFFERS TWO WAY
COMMUNICATION BETWEEN THE MANUFACTURER AND
CUSTOMER.

• THE MANUFACTURER LEARNS THROUGH THE RETAILER

REGARDING CUSTOMER FEEDBACK, PRODUCT
PERFORMANCE, SALES FORECAST, CORPORATE IMAGE ETC.
 6. ADVERTISING AND POP
DISPLAY
• THE IMPULSIVE NATURE OF CUSTOMERS
DEMAND THAT WHILE TAKING
PURCHASE DECISIONS INSIDE THE
RETAIL OUTLET, THEY SHOULD BE
REMINDED ABOUT THE PRODUCT.

• THE POINT OF PURCHASE DISPLAY

ACTS AS A REMINDER FOR THE
INFORMED CUSTOMER AND AS A PIECE
OF INFORMATION FOR THE LEARNER.
 MACRO ENVIRONMENT FACTORS IN RETAILING

• WHAT DO YOU MEAN BY RETAIL ENVIRONMENT?

A RETAIL MARKETING ENVIRONMENT CONSISTS OF THE EXTERNAL FORCES THAT AFFECT THE
RETAILERS ABILITY TO DEVELOP AND MAINTAIN SUCCESSFUL TRANSACTIONS AND RELATIONSHIPS
WITH ITS TARGET CUSTOMERS.
THE MACRO ENVIRONMENT CONSISTS OF SOCIAL, ECONOMIC AND TECHNOLOGICAL
FORCES.
 SOCIAL ENVIRONMENT

• THE IMPLICATION OF SOCIALLY RESPONSIBLE MARKETING IS THAT RETAIL FIRMS SHOULD TAKE THE LEAD
IN ELIMINATING SOCIALLY HARMFUL PRODUCTS SUCH AS CIGARETTES AND OTHER HARMFUL DRUGS
ETC.
• THERE ARE INNUMERABLE PRESSURE GROUPS SUCH AS CONSUMER ACTIVIST, SOCIAL WORKERS, MASS
MEDIA, PROFESSIONAL GROUPS AND OTHERS WHO IMPOSE RESTRICTIONS ON MARKETING PROCESS
AND ITS IMPACT MAY BE FELT BY RETAILERS IN DOING THEIR BUSINESS.
• THE SOCIETY THAT PEOPLE GROW UP IN SHAPES THEIR BASIC BELIEFS, VALUES AND NORMS.
•
 SOCIAL INFLUENCE ON RETAILING

• RETAILERS PROVIDE VALUE TO THEIR COMMUNITIES SOCIETY, AS WELL AS TO THEIR CUSTOMERS.

• RETAILERS ARE ALSO RESPONSIBLE FOR DEVELOPING MANY INNOVATIVE PRODUCTS AND SERVICES.
 ECONOMIC INFLUENCE ON RETAILING

• RETAIL MARKETING FIRMS ARE VULNERABLE TO ECONOMIC CONDITIONS, BOTH DIRECTLY AND
THROUGH THE MEDIUM OF MARKET PLACE.

• FOR EXAMPLE, THE COST OF ALL INPUTS POSITIVELY RESPOND TO UPWARD SWING OF ECONOMIC
CONDITION – WHICH WILL AFFECT THE OUTPUT PRICE AND CONSEQUENTLY AFFECT THE SALES.

• THE EFFECT ON CONSUMERS ALSO INFLUENCES THE MARKETING THROUGH CHANGES IN

CONSUMER HABITS. THIS IS AN INDIRECT INFLUENCE.
 RETAIL SECTOR POISED FOR PHENOMENAL GROWTH
Size & Position in the current Scenario

The Indian Retail Sector,

currently the Fifth
largest in the world, is
poised for phenomenal
Current Size & Future growth of Organized Retail in India
growth in the coming
years

ORGANISED RETAIL EXPECTED TO GROW 35-40% CAGR

Source: India Shopping Trends, 2008 - Technopak

 EMPLOYMENT
• RETAILING IS ALSO ONE OF THE NATION’S LARGEST INDUSTRIES IN TERMS OF
EMPLOYMENT.

• OVER 27 MILLION PEOPLE WERE EMPLOYED IN RETAILING IN 2003 –

APPROXIMATELY 21% OF THE NON-AGRICULTURAL WORKFORCE.

• BETWEEN 2004 AND 2012, THE RETAIL INDUSTRY EXPECTS TO ADD 2.1 MILLION
JOBS, MAKING IT ONE OF THE LARGEST SECTORS FOR JOB GROWTH.
EMPLOYMENT BY
Employment
INDUSTRY

others
6%

Manufacturing
11%

Government
16%
Service sector
45%
Retail
22%
TECHNOLOGICAL INFLUENCE ON RETAILING
IN THE FOLLOWING AREAS WHERE TECHNOLOGY HAVE BEEN
EXTENSIVELY USED.
• PACKING OF THE PRODUCTS
• PRINTING THE NAME OF THE SHOP ON THE PRODUCT VISIBLY
• WEIGHING MACHINE
• MODERN REFRIGERATORS WHERE MERCHANDISE CAN BE USED
FOR A LONG TIME AND
• BILLING.
Rank
GLOBAL
Retailer
RETAILERS
Head Quarters No. of countries

1 Wal-Mart Stores US 11

2 Carrefour France 31

3 Home Depot US 4

4 Kroger US 1

5 Metro German 26
 THE GLOBAL RETAIL MARKET
Year Revenue % Growth
$ Million

2009 12,104.0 4.70

2008 11,561.5 4.80

2007 11,029.1 5.10

2006 10,496.3 5.20

2005 9.981.1 5.10

2004 9,498.5 5.5

SHARE OF RETAILING IN TOTAL EMPLOYMENT IN SELECTED COUNTRIES

Country Share of retail in total employment

India 6 – 7%

China 6%

Poland 12%

Brazil 15%

USA 11.7%

Korea 18%
 THE WORLD’S BIGGEST EMPLOYERS
Global Rank Retailer Number of Employees

1 Wal-Mart 17,00,000

314 McDonald’s 4,38,000

22 Carrefour 4,30,000

82 Target 2,92,000

67 Kroger 2,89,000

34 Home Depot 2,73,000

 CHALLENGES FACING GLOBAL RETAILERS
• THE EMERGENCE OF NEW MARKETS

• THE EMPOWERED CONSUMERS

• TECHNOLOGY ENABLED EFFICIENCIES

• THE RISE OF THE E-TAILING

 CHALLENGES TO RETAIL DEVELOPMENT IN RETAIL
• RETAIL NOT BEING RECOGNIZED AS AN INDUSTRY IN
INDIA
• THE HIGH COSTS OF REAL ESTATE
• HIGH STAMP DUTIES
• LACK OF ADEQUATE INFRASTRUCTURE
• MULTIPLE AND COMPLEX TAXATION SYSTEM
 OPPORTUNITIES IN RETAILING
• MANAGEMENT OPPORTUNITIES
• RETAILERS RAISE CAPITAL FROM FINANCIAL INSTITUTIONS; PURCHASE OF GOODS AND
SERVICES; DEVELOP ACCOUNTING AND MANAGEMENT INFORMATION SYSTEM TO
CONTROL OPERATIONS; MANGE WAREHOUSES AND DISTRIBUTION SYSTEMS; DESIGN AND
DEVELOP NEW PRODUCTS; AND UNDERTAKE MARKETING ACTIVITIES SUCH AS
ADVERTISING, PROMOTIONS, SALES FORCE MANAGEMENT, AND MARKET RESEARCH.

• THUS, RETAILERS EMPLOY PEOPLE WITH EXPERTISE AND INTEREST IN FINANCE,

ACCOUNTING, HUMAN RESOURCE MANAGEMENT, LOGISTICS AND COMPUTER SYSTEM AS
WELL AS MARKETING.
 OPPORTUNITIES (CONT…)

• ENTREPRENEURIAL OPPORTUNITIES
• RETAILING ALSO PROVIDES OPPORTUNITIES FOR PEOPLE WHO WISH TO START THEIR OWN
BUSINESS.
• SOME OF THE WORLD’S RICHEST PEOPLE ARE RETAILING ENTREPRENEURS.

• MANY ARE WELL KNOWN BECAUSE THEIR NAMES APPEAR OVER THE STORES’ DOOR.
 MAJOR TYPE OF RETAIL STORES

THERE IS NO UNIVERSALLY ACCEPTED METHOD OF CLASSIFYING

RETAILER. VARIOUS SCHEMES HAVE BEEN PROPOSED TO CATEGORIES
RETAILERS BASED ON
 NUMBER OF OUTLETS
 MARGIN VS. TURNOVER
 LOCATION
 SIZE.

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1. GENERAL MERCHANDISE RETAILER: GENERAL MERCHANDISE RETAILER CARRY A
VARIETY OF PRODUCT LINES, WITH CONSIDERABLE DEPTH. SOME MAJOR TYPES OF
THESE STORES INCLUDE SUPERMARKETS AND HYPERMARKETS , DISCOUNT
STORES AND DEPARTMENT STORES.

o SUPER MARKET: A SUPERMARKET IS A LARGE SELF SERVICE RETAIL STORE THAT

CARRIES A WIDE VARIETY OF CONSUMER PRODUCTS UNDER ONE ROOF , SUCH AS
COMPLETE LINE OF FOOD PRODUCTS , LAUNDRY REQUIREMENT, HOUSEHOLD
MAINTENANCE ITEMS. IN INDIA COOPERATIVE HAVE MANAGED SOME
SUPERMARKETS FOR QUITE SOMETIME LIKE SUPER BAZAAR IN DELHI, APNA
BAZAAR SHAKARI BHANDAR ETC.

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o DISCOUNT STORE: THESE STORES ARE SELF SERVICE, STANDARD GENERAL
MERCHANDISE RETAILERS REGULARLY OFFERING BRAND NAME AND PRIVATE
BRAND ITEMS AT LOW PRICE, EARN LOWER MARGINS AND PUSH FOR HIGH SALES
TURNOVER. THE CHARACTERISTICS OF TRUE DISCOUNT STORES INCLUDE
 SELLING PRODUCTS AT DISCOUNTED PRICE
 CARRY STANDARD INTERNATIONAL , NATIONAL, OR STORE BRAND TOI BUILD
IMAGE
 SELF SERVICE STORES TO MINIMIZE OPERATIONAL COSTS
 PREFERRED STORE LOCATION ARE LOW RENT AREAS.
LIKE BEST KNOWN DISCOUNT STORE IS WAL-MART. IN INDIA ALMOST ALL RETAIL
STORES OFFER DISCOUNTS, SUBHIKSHA

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o DEPARTMENT STORE: A DEPARTMENT STORE IS LARGER RETAIL STORE
ORGANIZED INTO SEVERAL DEPARTMENTS, OFFERING A BROAD VERITY AND
DEPTH OF PRODUCT LINES. THE PRODUCT MIX MAY INCLUDE FOOD PRODUCTS,
APPLIANCES, CLOTHING, FURNISHING AND OTHER HOUSEHOLD GOODS.
 LIKE PANTALOONS, SHOPPERS’ STOP,
 DEPARTMENT STORE ONLY FOR KIDS IS KIDS KEMP.
 FASHION RELATED DEPARTMENT STORES IN INDIA ARE EBONY, GLOBUS,
PANTALOONS, LIFESTYLES.

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2. SPECIALTY STORES: SPECIALTY STORES CARRY A NARROW PRODUCT MIX WITH
DEPTH OF ASSORTMENT WITHIN THE LINE.
 THE EMPHASIS IS ON A LIMITED NUMBER OF COMPLIMENTARY PRODUCTS AND
HIGH LEVEL OF CUSTOMER SERVICE
 SPECIALTY STORE OFTEN SELL SHOPPING GOODS SUCH AS JEWELRY, APPAREL,
COMPUTERS, MUSIC SYSTEMS, SPORTING GOODS.
 LIKE; TANISHQ, TITAN WATCHES, VAN HEUSEN, RAYMOND'S.

3. SHOPPING MALLS: SHOPPING MALLS TYPICALLY DEAL WITH SEVERAL BASES

AND PRODUCT CATEGORIES AND PROVIDE A LARGE VARIETY OF MERCHANDISE
ABS SERVICE. THERE ARE 96 OPERATIONAL MALLS IN INDIA AND EXPECTED TO
GROW 158 BY THIS CURRENT YEAR.
 ANSAL PLAZA (DELHI), GARUDA MALL (BANGALORE) SAHARA PLAZA GURGAON
SPENSER PLAZA CHENNAI
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4. RETAIL CHAINS: A RETAIL CHAIN OPERATES MULTIPLE RETAIL
OUTLETS UNDER COMMON OWNERSHIP IN DIFFERENT CITIES AND
TOWNS.
 TO SOME EXTENT THE PURCHASING FUNCTION AND DECISION
MAKING ARE COORDINATED OR CENTRALIZED.
 LIKE WESTSIDE, GLOBUS, FOOD WORLD, MCDONALD'S RETAIL
PETROL OUTLETS. ETC.

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 RETAILING IN INDIA.

RETAIL IS THE NEW BUZZWORD IN INDIA.

THE GLOBAL RETAIL DEVELOPMENT INDEX HAS RANKED INDIA FIRST, AMONG
THE TOP 30 EMERGING MARKETS IN THE WORLD.

IT IS BELIEVED THAT INDIA HAS THE POTENTIAL TO DELIVER THE FASTEST
GROWTH OVER THE NEXT 50 YEARS.

WHILE BARTER WOULD BE CONSIDERED TO BE OLDEST FORM OF RETAIL TRADE,

SINCE INDEPENDENCE , RETAIL IN INDIA HAS EVOLVED TO SUPPORT THE UNIQUE
NEEDS OF COUNTRY, GIVEN ITS SIZE AND COMPLEXITY

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SECOND LARGEST SECTOR AFTER AGRICULTURE. CONTRIBUTES ABOUT 10 – 11 % OF
THE GDP

THE ESTIMATED SIZE OF THE ORGANIZED RETAIL INDUSTRY IN INDIA IS RS. 16,000
CRORES. THIS IS 2 % OF THE TOTAL ESTIMATED RETAIL TRADE.
INDIAN RETAIL TRADE INCREASED FROM RS. 2200 BILLION IN 2000 TO RS 3300
BILLION BY THE YEAR 2005

INDIA'S FIRST TRUE SHOPPING MALL – COMPLETE WITH FOOD COURTS,

RECREATION FACILITIES AND LARGE CAR PARKING SPACE – WAS INAUGURATED AS
LATELY AS IN 1999 IN MUMBAI. (THIS MALL IS CALLED "CROSSROADS").

44
 THE EVOLUTION OF RETAIL IN INDIA

RETAIL IN INDIA HAS EVOLVED TO SUPPORT THE UNIQUE NEEDS OF OUR COUNTRY,
GIVEN ITS SIZE AND COMPLEXITY HAATS, MANDIS AND MELAS HAVE ALWAYS BEEN A
PART OF THE INDIAN LANDSCAPE. THEY STILL CONTINUE TO BE PRESENT IN MOST PARTS
OF THE COUNTRY AND FORM AN ESSENTIAL PART OF LIFE AND TRADE IN VARIOUS
AREAS.

THE PDS (PUBLIC DISTRIBUTION SYSTEM) WOULD EASILY AS THE SINGLE LARGEST
RETAIL CHAIN EXISTING IN THE COUNTRY. THE EVOLUTION OF THE PDS OF GRAINS IN
INDIA HAS ITS ORIGIN IN THE “RATIONING SYSTEM” INTRODUCED BY THE BRITISH
DURING WORLD WAR II
45
THE SYSTEM WAS STARTED IN 1939 IN BOMBAY AND SUBSEQUENTLY EXTENDED TO
OTHER CITIES AND TOWNS. THE SYSTEM WAS ABOLISHED POST WAR BUT HOWEVER
ATTAINING INDEPENDENCE INDIA WAS FORCED TO REINTRODUCE IT IN 1950.

THERE WAS RAPID INCREASE IN THE RATION SHOPS ( BEING INCREASINGLY

CALLED THE FAIR PRICE SHOP OR FPSS)

THE CANTEEN STORES DEPARTMENT AND THE POST OFFICES IN INDIA ARE
ALSO AMONG THE LARGEST NETWORK OF OUTLETS IN THE COUNTRY REACHING
POPULATION ACROSS THE COUNTRY.

46
 THE KHADI & VILLAGE INDUSTRIES (KVIC) WAS ALSO SET UP POST
INDEPENDENCE. THE COOPERATIVE MOVEMENT WAS AGAIN CHAMPIONED BY
THE GOVERNMENT.

INDIA'S LARGEST RETAIL CHAINS:

1. PDS: 463,000

2. POST OFFICES: 160,000

3. KVIC: 7,000

4. CSD STORES:3,400

(SOURCE BUSINESS WORLD MARKETING WHITE BOOK 2005) 47

IN THE PAST DECADE, THE INDIAN MARKETPLACE HAS TRANSFORMED
DRAMATICALLY. HOWEVER FROM THE 1950,S TO THE 80,S, INVESTMENT IN VARIOUS
INDUSTRIES WAS LIMITED DUE TO LOW PURCHASING POWER IN THE HANDS OF
THE CONSUMER AND THE GOVERNMENT’S POLICIES FAVORING THE SMALL SCALE
SECTOR.

THE FIRST ATTEMPTS AT ORGANIZED RETAILING WERE NOTICED IN THE TEXTILES

SECTOR. ONE OF THE PIONEERS IN THIS FIELD WAS RAYMOND’S WHICH SET UP
STORES TO RETAIL FABRIC.

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RAYMOND’S DISTRIBUTION NETWORK TODAY COMPRISES 20,000 RETAILERS AND
OVER 256 EXCLUSIVE SHOWROOMS IN OVER 120 CITIES OF THE COUNTRY

OTHER TEXTILE MANUFACTURING WHO SET UP THEIR OWN RETAIL CHAINS WEE
RELIANCE- WHICH SET UP VIMAL SHOWROOMS AND GARDEN SILK MILLS, WHICH
SET UP GARDEN VARELI SHOWROOMS.

49
 THE EVOLUTION OF RETAIL IN INDIA

Established Emerging
Traditional formats Formats
Formats Kirana shops Exclusive retail outlets
Itinerant Salesman Convenience/ Hypermarket
Haats department stores Internal retail
Melas PDS/ Malls / Specialty Malls
Mandis etc. fair price shops Multiplexes
Pan/ Beedi shops Fast food outlets
Service galleries

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 Evolution of Indian Retail
THE EVOLUTION
Environment
OF RETAIL IN INDIA
Modern Formats/
International

Traditional/Pervasive Reach Government Supported

Historic/Rural Reach

Exclusive Brand Outlets

Hyper/Super Markets
Department Stores
PDS Outlets
Shopping Malls
Khadi Stores
Convenience Stores Cooperatives
Weekly Markets
Village Fairs Availability/ Low Costs /
Shopping Experience/Efficiency
Melas Neighborhood Stores/Convenience Distribution

Source of Entertainment
 DRIVERS OF RETAIL CHANGE IN INDIA

MAJOR DRIVERS :
1. CHANGING INCOME PROFILES: STEADY ECONOMIC GROWTH FUELLED THE
INCREASE IN DISPOSABLE INCOME IN INDIA. THE AVERAGE MIDDLE CLASS
FAMILY'S DISPOSABLE INCOME ROSE BY MORE THAN 20% BETWEEN 1999-2003.
2. DIMINISHING DIFFERENCE BETWEEN RURAL AND URBAN INDIA: RURAL
INDIA ACCOUNTS FOR OVER 75% OF INDIA POPULATION AND THIS IN ITSELF
OFFERS A TREMENDOUS OPPORTUNITY FOR GENERATING VOLUME DRIVEN
GROWTH. TAX BENEFIT. IN YEAR 2002-03 LIC SOLD 50% OF ITS POLICIES IN RURAL
INDIA. SAME BSNL ALSO SOLD ITS 50% CONNECTION IN SMALL TOWNS .

52
3. CHANGES IN CONSUMPTION PATTERNS: OCCUPATIONAL CHANGES AND
EXPANSION OF MEDIA HAVE CAUSED A SIGNIFICANT CHANGE IN THE WAY THE
CONSUMER LIVES AND SPENDS HIS MONEY.
o THE CHANGES IN INCOME BROUGHT ABOUT CHANGES IN THE ASPIRATIONS AND
THE SPENDING PATTERNS OF THE CONSUMERS. THE BUYING BASKET OF THE
CONSUMER CHANGED
4. THE EMERGENCE OF A YOUNG EARNING INDIA : NEARLY 70% OF THE INDIAN
POPULATION IS BELOW THE AGE OF 34. TAKING ADVANTAGES OF EMPLOYMENT
OPPORTUNITY IN THE BOOMING SERVICE SECTOR THESE YOUNG INDIANS ARE
REDEFINING SERVICE AND CONSUMPTION PATTERNS

53
 PROMINENT SECTOR IN INDIAN RETAIL

1. CLOTHING, TEXTILES AND FASHION ACCESSORIES:

2. FOOD & FOOD SERVICES:
3. CONSUMER DURABLES:
4. BOOKS & MUSIC:
OTHER EMERGING SECTORS
5. JEWELERY RETAIL
6. FOOTWEAR RETAIL
7. TIME WEAR RETAIL
8. FUEL RETAIL/ PETRO RETAIL
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RECENT TRENDS OF RETAILING IN INDIA

RETAIL REPORT 2018