INDIAN RETAIL INDUSTRY RETAIL- derived from a French word ‘retaillier’ which means “to break bulk” It includes all the activities involved in selling goods and services to the final consumer. A retail store is a business enterprise whose sale volume comes primarily from retailing.
SIZE OF RETAIL IN INDIA Market size of Indian retail industry is about US $312 billion Organized retail sector is expected to grow to US $ 70 billion by 2010 10 % of the countrys GDP and around 8 % of the employment. Apparel will have a 12-15% growth rate every year.
APPAREL MARKET Apparel retail is the largest segment of retail sector. It accounts for almost 39% of organized retail sector Men’s and women’s apparel market have grown to 12% & 13% respectively over the pervious years in value terms.
Landmark, Lifestyle and Max Lifestyle International (P) Ltd. opened its first Lifestyle store in India in 1999 and in a little over a decade has come to be recognized amongst leading retail companies in the country. It is a part of the prestigious USD 3.2 billion Landmark Group (Dubai). Each Lifestyle store brings together five concepts under one roof – Apparel, Footwear, Children Wear & Toys, Household & Furniture and Health & Beauty.
About Max….. Launched in UAE in May 2004, Max is today the largest value fashion retail chain in the Middle East. Currently have 30 store across India and plans to take it to 60 stores by 2011-12 Catering to the mid market segment, the merchandise is priced in the range of Rs 199-799. A good shopping experience with fashionable products at great value is an assurance that translates into making customers "Look good, Feel good" with Max.
Promises of Max…. Manufacturer’s warranties on all products Secure payment Simple 15-days return policy Prompt customer support
MARKETING STRATEGY SEGMENTATION: Segmentation involves finding out what kinds of consumers with different needs exist IN terms of income, gender, education, location (rural vs. urban, East vs. West), ethnicity, and family size.
TARGETING: Max targets middle and upper middle class customers. The large and growing young working population is a preferred customer segment.
POSITIONING: Positioning involves implementing our targeting. For example, Max has chosen to position itself as a “products of good quality at affordable price” retailer.
Max and CompetitorsStore Pantaloon Westside Max Globus Shoppersname s stopFormat Multibrand Exclusive Multibrand Multibrand Multibrand Tata(Trent Landmark group (R Raheja) (K Raheja)Type groupPositioning Family store Style & Family iconic youth family store affordability shopping fashion brand delivering a destination & complete value pricing shopping store experience
Store name Pantaloons Westside Max Globus Shoppers stopCategories Apparel fashionable Foot wear, Stylized clothes, Foot wear, &accessories for apparels,footwear accessories, &accessories for accessories, men, women & & accessories , home furnishing men, women & home furnishing children bags, shoes, children,footwear home décor itemsAverage 1000on weekday 25-45 per hour 450 per day & 25-45 per hour 450 per day & & 1500 to 2000 Weekend 1200 Weekend 1200footfalls on weekends, holidaysMaterial chiffon, cotton, chiffon, cotton, cotton, polyester, chiffon, cotton, chiffon, cotton, polyester, lycra, polyester, lycra, lycra polyester, polyester, lycra,used gorget gorget lycra,gorget gorget, silk
Store name Pantaloons Westside Max Globus Shoppers stopShop In Ajile, akkriti, Nuno, nu blue, Peter Louis Philippe, annablle,honey,R lee,wrangler England Pepe, Arrow,Shop GI,trishaa, Lee killer, levis, BIBA, Gini Cooper,spykar,bl ascot, black &Jony, Carbon, ue,indigonational, berry, richmond Corelle, Magppie, john miller, , Enamor, Gia, Nike, Reebok, UMM,rang Fiorelli LEGO, Mattel, manch, little Kangaroo, Zap, Kashish, Austin Reed, ellize doatein, Wills Lifestyle, Remanika, Park Avenue, Raymond, AND, Sepia, benetton, Playboy, Mustang, Push &Shaw, Numero Uno, Levis, Mufti, Lee Killer, Spykar, Vibe,
Frequency of Visit of Customers Conclusion Footfall is average. Suggestion Need to promote more to increase the red area and ultimately the blue.
Customer Satisfaction Conclusion Customer satisfaction is high. Suggestion We see red area because of lack of sizes (XXL and larger), more color options and varieties.
Customer’s Favourite Section Suggestion Kids section can improve by keeping kids accessories (belts, hats, purse, soft toys), new born baby set and latest patterns. Ethnic section can provide more options in color and in patterns.
Purchase Driving Force Conclusion Price and quality influence middle aged and older customers while visual appeal plays major role in attracting youths. Suggestion Quality as well as visual merchandising should be taken care of.
Availability Of Merchandise Suggestion We can see a noticeable red area in the chart because of lack of varieties mainly in ladies western and ethnic.
Staff Attitude Suggestion Provide motivational programs (best employee of the month, incentives, internal promotion and flexible target) and training for assisting customers.
More Brands Needed Suggestion Bringing more brands will surely increase the conversion rate and hence enhance the overall performance of the store.
Shopping Experience Suggestion Customer perceive value for their money but ethnic section needs to lower down its prices for contemporary stock.
Recommendation Introduce more brands Quality should be improved. Can experiment with other areas such as cosmetics and toys. Introduce more colors. Introduce in-house brand for larger sizes than available.