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Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
Retail mania in india
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Retail mania in india

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  • 1. RETAIL MANAGEMENT Prof. V.Jha
  • 2. RETAIL MANAGEMENT ..1INTRODUCTION –CONCEPTS, ROLE & ENVIRONMENTRETAILING Business activities involve Selling Goods and Services to Consumers for their Personal, Family or Household use.“Every sale of Goods and Services to final consumer” – Food products, apparel, movie tickets; services from hair cutting to e-ticketing.• Retailing is the Last stage in Distribution Process- Wholesale is an intermediate where Goods and services are sold to Business customers.
  • 3. RETAIL MANAGEMENT ..1• Retailer is customer focused, not Product – focused.Manufacturer may reach customers through:• Dealers• Company showrooms• Malls
  • 4. RETAIL MANAGEMENT ..1ORGANISED RETAILING• In India Organised Retailing is 5%• Retail sector highly fragmented• Retail chains like Wal Mart, Sears, McDonalds brought Rapid Growth and consolidation of Organised Retail• Rapid rise of Income levels and accompanying changes in lifestyles greatly contributed to growth of Organised Retail
  • 5. RETAIL MANAGEMENT ..1ORGANISED RETAILING• In India, increase in Disposable income, Purchasing Power of growing Middle Class conducive conditions for growth of Organised Retail• Indian Retail environment different from that of western countries: - Cities congested, large population rural areas - Smaller purchases, limited household space
  • 6. RETAIL MANAGEMENT ..1RETAILING CONCEPT“Retaillier” French for breaking bulkRetailer links Producers to CustomersRetailer is a person, agent, company or organisation reaching the Goods or Services to ultimate consumerRetailers perform specific activities:• Anticipate customer wants• Stock product assortments• Acquire market information• Finance Retail business
  • 7. RETAIL MANAGEMENT ..1.
  • 8. RETAIL MANAGEMENT ..1Last decade has seen tremendous changes in Retail Business – from made to order to ready to wear, from counter sales to self service, emphasis on value addition and cost reduction.Family run retail business giving way to modern professional retail.Retail improving inventory management through systems – faster turnover, better profitability, fast changing customer preferences for assortment of goods and services. BETTER CUSTOMER CARE
  • 9. RETAIL MANAGEMENT ..1
  • 10. RETAIL MANAGEMENT ..1 ORGANISED RETAIL FORMAT1. By 2006 - 200 Shopping Malls – Up from 25 in 20032. 6 A Grade cities Delhi NCR, Mumbai, Bangalore, Hyderabad, Chennai, Kolkata will have 34 mio. and non metros Pune, Ahemadabad Ludhiana, Chandigarh, Jaipur, Lucknow, indore, Cochin 6 mio.3. Delhi NCR will have 26 mio., Mumbai another 5 mio.
  • 11. RETAIL MANAGEMENT ..1 RETAIL CHARACTERISTICS1. Direct End-User Interaction2. Platform for Promotions & POP displays3. Lower unit sales4. Retail location critical5. Services as important as Core Products6. Large number of Retailers to meet geographical coverage and population density
  • 12. RETAIL MANAGEMENT ..2 RETAIL CONCEPT• Customer Orientation:Attributes & Needs satisfaction• Coordinated Efforts:Maximize Business Efficiency IT: POS, QR.• Value driven:Good Value for Money sabse sasta din Big Bazaar, EDLP Wal Mart• Goal OrientationAchieve Goals
  • 13. RETAIL MANAGEMENT ..2RETAILING CONCEPT• Communication with Customers• Identify Customers Needs• Provide Products and Services to Satisfy Customers• Elicit Feedback to Improve Services – Word Of Mouth
  • 14. RETAIL MANAGEMENT ..2RETAILING CONCEPTCustomer Service approach:• Create a conducive environment• Listen to your Customers• Direct mail• Relationship Marketing – Long Term CRM• Rewards for Regular Customers Inc switching cost
  • 15. RETAIL MANAGEMENT ..2ROLE• Consumer spend their money at Retail which drives the economy. Retailers realize Revenue when Consumers buy products or Services from them.• The revenue passes up the Consumer Goods distribution chain viz. to Wholesalers, Distributors and Manufacturers.
  • 16. RETAIL MANAGEMENT ..2• Retail Industry employs 17-20% Workforce that drives the Economy.• Retail trends often mirror trends in a nation’s overall economy.• Retailers add value by Providing the Right Product at The Right Place at the Right Time.
  • 17. Retail in India
  • 18. RETAIL MANAGEMENT ..2• ENVIRONMENT• Retailing is a Dynamic field with very Competitive Environment.• Retailers act as Filters – Strong lobby for success or otherwise of a Product or Services.• Companies create Retailer Value and Consumer Differential Advantage to improve success rate of their Brands.• Constraints – Multiple Brands and SKUs for each category, Shelf Space, funds available, Turnover of Merchandise.
  • 19. RETAIL MANAGEMENT ..2 New Concepts & Trends1. Vertical Retail Concept: Traditional stores and Shop-in-Shop concepts – mixture of system and individuality, e.g. Sale of Non-food items like newspapers, magazines with snacks, beverages2. Consumption Related Trends: Increasing Consumers with Purchasing Power & More Migrant Consumers Demand for Broad selection of Products Demand for Good quality Products e.g. Honest, Original and Green Products
  • 20. Indian Economy – GDP Projections Through 2022 (2007 Prices) US$ US$ Billion 2007 Billion B raz il 1,068 2012R us s ia 979 B raz il 1,369 India 916 R us s ia 1,304F ranc e 2,232 India 1,409 UK 2,374 F ranc e 2,470 2,630 UK 2,648 C hina G ermany 3,198G erma 2,897 C hina 4,197 US A 13,245 US A 15,354 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 - 5,000 10,000 15,000 20,000 US$ US$ Billion Billion 2022 2017 B raz il 2,282 B raz il 1,789 R us s ia 2,103 R us s ia 1,688 India 3,128 India 2,119 F ranc e 3,085 F ranc e 2,761 UK 3,251 UK 2,953 G ermany 3,766G ermany 3,513 C hina 6,341 C hina 9,229 US A 17,031 US A 19,751 - 5,000 10,000 15,000 20,000 - 5,000 10,000 15,000 20,000 25,000 *GDP figures are in real terms with base year as 2007 India is expected to be comparable with UK & France in GDP by 2022
  • 21. Retail in India
  • 22. Rapid Transformation Anticipated 28% share Current Size & Future Projections for Indian Retail Market 1200 1011 1000US$ Billion 800 590 471 527 600 376 421 336 400 282 200 51 74 97 0 12 17 29 2007 2008 2009 2010 2011 2012 2017 Total Retail Organized Retail Reach a share of 28% by 2017
  • 23. HIGH GDP GROWTH 10% 9.0% 9.4% 9% 8% 6.4% 6.6% 6.0% 6.8% 7% 6.0% 5.4% 5.6% 6% 5.2% 5% 4% 3% 2% 1% 0% 1997 1998 1999 2000 2001 2002 2006 2003 2004 2005Projections of 8% sustainable real GDP growth rate till 2020 promise highgrowth potential for Indian Retail
  • 24. Retail in India
  • 25. Radical Transformation Anticipated In Indian Retail Country Share of Years taken to Organized reach the level Retail from < 5% China 20% 10 Poland 20% 8 Brazil 36% 15 Thailand 40% 18 US 85% 50 India 17% (estimated) 5 27% (estimated) 10India looking at rapid GROWTH compared to other countries
  • 26. Growth Of Indian Retail … *ProjectedSource: Technopak Analysis, CSO & Other Sources Indian Retail expected to grow close to 12% p.a. in the next 10 years

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