White Paper Presentation on People a Gigantic Challenge for Retail Presented to Sapna Modi Presented By Pankaj Singh PGDM – Marketing – 49
Objective of the Study
Understand the Indian Retail Scenario.
Reviews the academic and practitioner literature on retail by identifying the problem of the manpower/people in the retail.
Provides factual examples of the problem currently faced by the industry players.
Also bring out some of the measures taken by the organizations to guard against this problem.
“ Lack of skilled labor is a concern for the Indian retail industry.”
KEY PROBLEM of Retail Store Selling
- by Elizabeth A. Burnham, Harvard Buisness Review
The report describe that Standpoint of the stores' long-run success and even their very survival, the problem of recruiting, selecting, and training salespeople must be given active attention, no matter what the pressure of other problems. Otherwise customer satisfaction will go down .
Search Engine/ Web site Used
Scope of the Research
It unfolds lack of skilled manpower is a major concern with no substitute to it.
It will also provide some industry related examples.
This research limits to identifying problem only.
The research doesn’t provide any definite solutions for the problem.
Indian Retail Industry is ranked among the ten largest retail markets in the world.
Indian retail industry is currently estimated to be a US$ 200 billion industry and organised Retailing comprises of 3 per cent (or) US$6.4 Billion of the retail industry
Growth over 20 percent per annum over the last 5 years, organised retailing is projected to reach US$ 23 Billion by 2010.
The Growth Drivers
Expansionary Plans of the Retailers and New entry of players
Future group is going to add 30 million sq feet area by 2010
Tata group is going to add 1 million sq ft retail space in next 12 DLF malls.
K Raheja group is planning to 55 hypercity by year 2015
RPG group is planning to add 4 million sq ft area by 2010
Vishal group is planning to invest 1250 cr and going to open 220 store by 2010
Reliance to invest in the retail sector.
Bharti – Wal Mart to enter retail sector
Mahindra to invest in the retail sector
Aditya Birla group to come up with more retail store.
Do we have the manpower to cater to the demand of the Retail Industry?
The answer is Yes.
Do we have the skilled manpower to cater to the demand of the Retail Industry?
The answer is No.
Challenge in Retail Industry – People
Lack of Skilled manpower
Staff Turn over:-
30 to 40 % at store level
10 to 15 % at middle and top level
Initiatives by Retailers
PRIL in collabration with K. J. Somaiya Institute of Management & Research.
Reliance to train people by recruiting undergraduates
209 232 TOTAL NO. OF EMPLOYEES Post graduate with atleast 1 - 3 years of experience 86 94 1,50,000 - 3,00,000 Coordinators LEVEL 5 Post graduate/Technical Qualification with atleast 3 - 5 years of experience 72 80 3,00,000 - 5,00,000 Jr. Management LEVEL 4 Post graduate/Technical Qualification with atleast 6 - 10 years of experience 27 30 6,00,000 - 9,00,000 Middle Management LEVEL 3 Post Graduate with atleast 10 - 15 years of experience 17 18 10,00,000 - 16,00,000 Sr. Management LEVEL2 Post Graduate with atleast 20 years of experience 7 10 18,00,000 - 30,00,000 Top Management LEVEL 1 Employee skills/qualifications No. of current employees at each level No. of employees required at each level PAYSCALE DESIGNATION Hierarchy at non-store RETAIL operations SHOPPERS' STOP
SHOPPERS' STOP 1814 1928 TOTAL NO. OF EMPLOYEES Graduate Freshers or upto 1 year of experience 1,700 1,800 1,00,000 1,50,000 Frontend Staff (Sales LEVEL 4 Post Graduate or Graduates with atleast 1 - 3 years of experiencce 68 75 2,00,000 3,50,000 Jr. Management LEVEL 3 Post Graduate with atleast 3 - 6 years of experience 27 33 4,00,000 6,00,000 Middle Management LEVEL 2 Post Graduate with atleast 7-12 years of experience 19 20 7,00,000 13,00,000 Sr. Management LEVEL 1 Employee skills/qualifications No. of current employees at each level No. of employees required at each level PAYSCALE DESIGNATION Heirarchy at in-store RETAIL operations
Retailing has many challenges than it seems. Retailing is probably more complicated than it can seem.
The problem of the skilled manpower has also started at the nascent stage but in future it will intensify and it will take a gigantic wave in the future.
This research limits itself only to adhere one of the challenges in the retail industry while not addressing to other challenges.