Indian Retail Sector on Fast - Track India being known as the most aggressive developing country still faces the problem of unemployment & poverty which is its main concern. Indian retail market which is the 5th largest retail destination globally is estimated to grow from US $ 330 Billion in 2007 – to US $ 427 Billion in 2010. However with the growth of retail industry this seem to be opening doors for the unemployed section of the population as well as contribute to india’s GDP. With retail market blooming across India and the metro cities we now have access to the malls right at the convenient locations in every city.
Besides there is also rise in the revenue of the IT firms providing IT solution to these malls. Launch of retail has led to many colleges starting retail course in collaboration with the respective malls. Eg : wellingkar college of management has a course started in collaboration with pantaloons retail ltd. On completion of the course students are assured a job with a good in the retail sector. This is one best way to eradicate the problem of unemployment Since the launch of Retail markets in the country it has provide the end number of jobs in the area of marketing , sales, Finance & IT.
Retailers have not only tapped the urban market but have already tapped the metro cities in prime locations and even expanded their business in international countries. Even though Rise in retail industry has spoiled the business of many small sellers they provide the customers with wide choice of goods to be selected which the small sellers cannot provide. Retailers also have an option of tying up with the farmers in order to provide them with fresh vegetable and help the farmers earn good money. Ultimately leading to the saticfaction to both the parties.
Besides the most attractive component of india’s value proposition is its cost attractiveness. Existing players are increasingly turning to TIER II and TIER III cities for the retail establishments and for manpower sourcing. These cities offer significant cost advantage in form of availability of low-cost skilled human resources. With well educated small town graduates turning to the urban cities for employment, these graduates are ideal candidates for sales and marketing executive roles in modern organized retail formats.
Information technology’s increased role in global retail industry With increase in globalization of retailers both in terms of their point of sale as well as their point of supply. The information technology spent in the retail sector has increased considerably & plays an important role in managing the complexity of retail operations. IT systems are the heart of the retail operations & hence play and important role in alleviating pressure points in retail sector. This is particularly true for IT systems that can significantly influence COGS in retail sector. Eg : advanced planning & scheduling systems, inventory management & merchandizing systems.
Additional systems that share crucial role in retail operations are promotional & seasonality management systems that when leveraged effectively can increase the top line revenues for the retailers. Retail organisations deal with goods right from the suppliers to their distribution centres and finally to the storefront. The ideal application would provide real-time status of what’s left on the store shelf so that supply and distribution centres can replenish goods at the back of the store in time.”
Oracle offers retail-specific functionality, enabling retail organisations to focus on Improving information integrity for the extended retail enterprise Enabling an insight-driven enterprise Collaborating with all stake-holders for greater efficiency Empowering workforce excellence Driving an excellent customer shopping experience.
One of the key imperatives facing retailers in India is to have a robust and scalable supply chain that will facilitate rapid growth. One measure of efficient operations is the inventory turns ratio. Many Indian retailers surveyed by KPMG have inventory turns levels between 4 and 10. Another measure of efficient supply chain management is stock availability on the retail shelves. IT sees to it that the customers have a smooth and easy experience of shopping online for the goods that they want. Because today customer satisfaction is a key to any business besides profit.
Role of RFID in the Retail Industry Imagine a shopping cart equipped with a scanner and a touch-screen computer that acts as a virtual personal shopper. As you scan items and put them in your cart, the computer offers information about each product and suggests complementary items. The computer keeps a list of the items in your cart with a running total so you know exactly how much you're spending. When finished shopping, you head to a self-checkout stand or to a cashier. Because your items are already totaled and bagged, All you have to do is pay.
RFID is helping retailers around the world improve customer satisfaction and increase sales. The technology is transforming the retail industry by offering retailers real-time visibility into inventory and product movement to improve store productivity and loss prevention. Many of the world's largest retailers have mandated RFID tagging. This move affects more than 200,000 manufacturers and suppliers, driving the worldwide market for hardware and software to support RFID.
RFID helps improve inventory management Inventory control is often a costly, time-consuming process for retailers. By offering real-time inventory visibility, RFID enables inventory managers to monitor and control inventory supply at all times. By automating the inventory tracking process, stores can keep costs down by maintaining optimum inventory levels—avoiding stock-outs and eliminating unnecessary orders. Tracking capabilities also make it easier to predict product demand. Store managers can monitor quick-selling items with increased accuracy, ensuring that their inventory supply is stocked accordingly.
Improving customer service By using RFID, your staff can identify the exact location of any retail item at any time. Customer requests can be handled quickly and easily by your customer service team through access to a centralized database. RFID-tagged items offer store-to-store visibility, so items can be located immediately with the touch of a button. This level of product accessibility results in shorter wait times for customers and offers a better shopping experience. Improving overall store efficiencies ultimately results in greater savings to customers.
Boosting customer loyalty RFID can be the personal shopper of the future. By using RFID technology, retailers can collect information about their customers' purchasing trends and offer rewards targeted to those interests. RFID can enable your marketing and customer service teams to identify customers, call up account histories, and provide value-added services to help create a personalized shopping experience. For example, one clothing retailer in New York is using RFID smart labels to store information about each item in the store, such as fabric content, available sizes and colors, and suggested complementary items or accessories. RFID readers in the fitting rooms are connected to computer monitors so customers can view all the information and make decisions—without ever having to leave the fitting room.
Because privacy is a primary concern, advanced security technology enables your IT staff to better protect all information. Participation is optional for each customer. Thus in future the role of RFID is definitely going to be crucial for the retail industry.