Description of emerging trends in retail management
Description of Emerging Trends in Retail ManagementRetailing is interlinking the individual consumer with the manufacturingand distribution chain. The retail industry in India is growing up and thereare lot of employment opportunities for the educated youth in all parts ofthe country. The book speaks on retailing from the marketing, finance,management, information technology, global scene, human resource andissues related to retail trade in rural and urban areas. The marketingaspects include retail marketing, product display, food retailing, mallculture, super market, store diode and value and private labeling.Retailing is highly consumer driven with customers being exposed to newretail formats frequently. If well planned and organized, retail businesswould ensure that the consumers will benefit not only by way of qualityproducts but also in prices due to the bulk buying capacity of bigretailers. The foreign direct investment and financial challenges argueabout the prospects of the industry to gain importance in conductingorganized retailing in India. Retail management has become a specialsubject of importance in India educational institutions. The various issuesin retail management have been addressed in detail. The need fororganized retail trade and strategies gives lot of insight for the industry togrow.The automation and e-commerce in retail gives lot of scope foremployment and does effective service to consumers. Technologyassumes importance for the business. Internet is growing in usage andinfluence over product preference and purchase behavior is changinglifestyles. The increasing ratio of women in employment and risingdisposable income are driving the growth of the Indian retail industry.Foreign direct investments, global issues and international giants enteringinto our nation speak volumes of Indian retail in the global arena. Humanresource management issues like recruitment and training assumeimportance for effective employment. The book discusses the broaderbusiness trends and general issues like communication, competitiveness,rural retailing and logistics. The various topics in retailing adopt bothempirical and non-empirical approach and come from various authorsacross the country. The authors insights, experience, research and theirconsultancy have enabled the editors to bring out a text which will beuseful for academicians, students, research scholars and for the corporatemanagers.
TOP 10 RETAILERS: The lifestyle and mindset-change of the Indian customer has led toa spur in the retail industry with the total private consumption in 2006clocking Rs.20,000 billion according to the Indian Retail Report 2007.Cities like Mumbai, Bangalore, New Delhi, Hyderabad, and Pune havearound 40 malls as of today, which is expected to touch 250 by 2010(KPMG report).The Indian retail industry is valued at $270 billion, with organised retailcornering 4.5 %. The organized pie is expected to see a growth at aCAGR of 37 % (India Retail Report 2007)1. Pantaloon Retail:It is headquartered in Mumbai with 450 stores across the countryemploying more than 18,000 people. It can boast of launching the firsthypermarket Big Bazaar in India in 2001. An all-India retail space of 5million sq. ft. which is expected to reach 30 mn by 2010. It is not only thelargest retailer in India with a turnover of over Rs. 20 billion but ispresent across most retail segments - Food & grocery (Big bazaar, Foodbazaar), Home solutions (Hometown, furniture bazaar, collection-i),consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts(Depot), Health & Beauty care services (Star, Sitara and Health village inthe pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling co.)One of their recent innovations include e-commerce’ hybrid format of’small’ shops , the area for these stores will be 150 sq. ft. fitted with 40digital screens. Customers will be encouraged to browse through theentire range of products on digital screen. They will be able to place theorder, the delivery of which will be arranged by the shop to their homeswithin a few hours2. K Raheja GroupThey forayed into retail with Shopper’s Stop, India’s first departmentalstore in 2001. It is the only retailer from India to become a member of theprestigious Intercontinental Group of Departmental Stores (IGDS). Theyhave signed a 50:50 joint venture with the Nuance Group for AirportRetailing. Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnoverof Rs 6.75 billion.The first Hypercity opened in Mumbai in 2006 with an area of 1, 20,000sq. ft. clocking gross sales of Rs. 1 bn in its first year.
Crossword brand of book stores, Homes stop a store for home solutions,Mothercare a concept stocking merchandise related to childcare are alsoowned by them. Recently, Raheja’s have signed an MoU with the HomeRetail Group of UK to enter into a franchise arrangement for the Argosformats of catalogue & internet retailing.The group has announced plans to establish a network of 55hypermarkets across India with sales expected to cross the US$100million mark by 2010.3. Tata group:Established in 1998, Trent - one of the subsidiaries of Tata Group -operates Westside, a lifestyle retail chain and Star India Bazaar - ahypermarket with a large assortment of products at the lowest prices. In2005, it acquired Landmark, Indias largest book and music retailer. Trenthas more than 4 lakh sq. ft. space across the country. Westside registereda turnover of Rs 3.58 mn in 2006.Tata’s has also formed a subsidiary named Infiniti retail which consists ofCroma, a consumer electronics chain. It is a 15000-17000 sq. ft. formatwith 8 stores as of September 2007.Another subsidiary, Titan Industries, owns brands like “Titan”, the watchof India has 200 exclusive outlets the country and Tanishq, the jewellerybrand, has 87 exclusive outlets. Their combined turnover is Rs 6.55billion.Trent plans to open 27 more stores across its retail formats adding 1.5 mnsq ft of space in the next 12 DLF malls.4. RPG group:One of the first entrants into organised food & grocery retail withFoodworld stores in 1996 and then formed an alliance with Dairy farmInternational and launched health & glow (pharmacy & beauty care)outlets. Now the alliance has dissolved and RPG has Spencer’s Hyper,Super, Daily and Express formats and Music World stores across thecountry.RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs4.5 billion in 2006.
It is planning to venture into books retail, with the launch of its ownbookstores “Books and Beyond” by the end of 2007. An IPO is also inthe offering, with expansion to 450+ MusicWorld, 50+ Spencers hyperoutlets covering 4 million sq. ft. by 2010.5. Landmark group:were launched in 1998 in India. Lifestyle is spread across six cities,covering 4.6 lakh sq. ft. with a turnover of Rs 3.5 billion in 2005. A newdivision named Lifestyle International has emerged for their internationalbrands business comprising Bossino, Kappa and Springfield in theirportfolio.Their retail mix includes Home solutions (Home centre), fashion(lifestyle, landmark International), value retailing (max retail),hypermarkets & supermarkets (Max), kids entertainment (Funcity).They plan to invest Rs. 300 crores in the next two years to expand onMax chain, and Rs 100 crores on Citymax 3 star hotel chain. They havealready instituted a separate company christened Citymax Hotels (India).6. Piramal GroupIn September 1999, Piramal Enterprises announced their arrival into retailwith the launch of three retail concepts: Indias first true shopping mall ofinternational standards, called Crossroads; a lifestyle department storenamed Piramyd Megastore; and a family entertainment centre known asJammin. Piramyd Megastore and Jammin were anchor tenants forCrossroads (recently sold to Pantaloon for Rs 4 billion). In 2001, thegroup entered the business of food & grocery retail with the launch ofTruMart supermarkets in Pune.They have around 18 TruMart stores covering 1.90 lakh sq. ft. registeringa turnover of Rs 37.6 mn in 2005. Piraymd Megatsore’s contributes morethan 70 % to their retail mix with a turnover of Rs 112.8 mn. They plan toopen 150 stores covering 75 mn sq ft of retail space in the next 5 years.7. SubhikshaSubhiksha is a Chennai-based, decade old, no frills, food, grocery,pharma and telecom, discount retail chain. ICICI Venture Capital holds24% in the equity capital of Subhiksha. It has more than 500 stores acrossthe country covering a retail space of more than 1 million sq ft with a
registered turnover of Rs 3.34 bn in 2006. It has a planned investment ofRs.300 crores to ramp up its operations to 1200 stores by 2008.New but potential BIG players8. Bharti-WalmartTheir plans include US$ 7 bn investment in creating retail network in thecountry including 100 hypermarkets and several hundred small stores.They have signed a 50:50 percent joint venture agreement with Walmart.Wal-Mart will do the cash & carry while Bharti will do the front-end.9. RelianceIndia’s most ambitious retail plans are by reliance, with investments tothe tune of Rs. 30,000 cr ($ 6.67 bn) to set up multiple formats withexpected sales of Rs 90,000 crores ($20 bn) by 2009-10.There are already more than 300 Reliance Fresh stores and the firstReliance Mart Hypermart has opened in Ahmedabad. The next ones areslated to open at Jamnagar, followed by marts in Delhi / NCR,Hyderabad, Vijaywada, Pune and Ludhiana.10. AV Birla GroupThey have a strong presence in apparel retailing through Maduragarments which is subsidiary of Aditya Birla Nuvo Ltd. They own brandslike Louis Phillipe, Van Heusen, Allen Solly, Peter England, Trousertown.In other segments of retail, AV Birla Group has announced investmentplans of Rs 8000 - 9000 crores in the first 3 years till 2010.The acquisition of Trinethra (food & grocery) chain in the south hasmoved their tally to 400 stores in the country. Their “More” range of 15supermarkets are slated to open at Nashik, Pune and other tier II cities inWestern India in 2007.