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retail formats

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discussion about different retail formats exist in INDIA

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retail formats

  1. 1. RETAIL FORMATS IN INDIA An Overview:
  2. 2. Facts about Retail Industry in INDIA:  Retailing in India is one of the pillars of its economy and accounts for 14 to 15 per cent of its GDP  Fifth largest in the world  Fastest growing industry in the country, expected growth rate 25%-30% annually  Mostly the industry in unorganized due to huge difference in taste and demands  The industry is getting more popular nowadays and becoming organized also in terms to serve the needs of customers
  3. 3. Challenges faced by Retail Industry in India: Automatic approval is not allowed for foreign investment in retail Regulations restricting real estate purchases, and cumbersome local laws Taxation, which favours small retail businesses Absence of developed supply chain and integrated IT management Lack of trained work force Low skill level for retailing management Lack of Retailing Courses Intrinsic complexity of retailing – rapid price changes, constant threat of product obsolescence and low margins3
  4. 4. 4
  5. 5. UNORGANIZED:5
  6. 6. MOM & POP STORES:  Generally family-owned businesses catering to small sections of society  Owned and operated by individuals  Range of products are very selective and few in numbers  These stores are known for their high standards of customer service6
  7. 7. Peddlers and Hawkers  Hawker: An individual who sells wares by carrying them through the streets  persons ordinary methods of attracting attention include addressing the public, using placards, labels, and signs, or displaying merchandise in a public place  A peddler is defined as a retail dealer who brings goods from place to place, exhibiting them for sale  he does not have a fixed place of conducting business, but regularly carries the goods for sale with himself  he or she does not have a fixed place of conducting business, but regularly carries the goods for sale with himself or herself7
  8. 8. Market Traders & Street Traders  A Street market is an outdoor market such as traditionally held in a market square or in a market town, and are often held only on particular days of the week  Very similar markets, or bazaars can also be found in large enclosed spaces, instead of on a street8
  9. 9. ORGANIZED9
  10. 10. SPECIALTY STORES:  DEPARTMENT STORES:  A typical specialty store gives  A retailer of such store carries variety attention to a particular category and of categories and has broad provides high level of service to the assortment at average price & offer customers considerable customer service  For example if a customer visits a  For example: Food World in Reebok or Gap store then they find Bangalore just Reebok and Gap products in the respective stores.10
  11. 11. DISCOUNT STORES: CONVENIENCE STORES:  Offers extensive assortment of  Is essentially found in residential merchandise at affordable and cut- areas rate prices  Provide limited amount of  Normally retailers sell less fashion- merchandise at more than average oriented brands prices with a speedy checkout  The service is inadequate  Store is ideal for emergency and  For example: The Loot immediate purchases  For Example: Reliance Fresh11
  12. 12. HYPERMARKETS: SUPERMARKETS:  Provides variety and huge volumes of  a self service store consisting mainly exclusive merchandise at low margins of grocery and limited products on  Operating cost is comparatively less non food items than other retail formats  may adopt a Hi-Lo or an EDLP  For Example: Dmart , Big Bazaar, strategy for pricing Trent, Landmark, Star Bazaar  supermarkets can be anywhere between 20,000-40,000 square feet  For Example: SPAR™ supermarket12
  13. 13. MALLS: CATEGORY KILLERS Has a range of retail shops at a single  Supplying wide assortment in a single outlet category for lower prices a retailer can Endow with products, food and "kill" that category for other retailers entertainment under a roof  The products are displayed at the center For Example: Inorbit Mall, Ambience of the store and sales person will be Mall. available to address customer queries and give suggestions when required  For Example: Pai Electronics store in Bangalore.13
  14. 14. E-TAILERS:  VENDING MACHINES:   Customer can shop and order  An automated piece of equipment through internet and the merchandise wherein customers can drop in the are dropped at the customers money in machine and acquire the doorstep products  Format is ideal for customers who do  This system is currently not widely not want to travel to retail stores and used in India are interested in home shopping  For example: Soft drinks vending at  For Example: Amazon and Ebay Bangalore Airport14
  15. 15. Group Members: AKSHAY JAIN BARKHA AGARWAL CHIRAG SUKHIJA THANK YOU!!! NIDHI MATHUR15

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