The document provides an overview of the evolution of retail in India from historic rural markets to modern organized retail formats introduced by international players. It discusses the key characteristics of different types of retailers like department stores, specialty stores, discount stores, supermarkets/hypermarkets. The document also outlines some problems faced by organized retail in India such as competition, taxation issues, shortage of trained workforce and technology challenges. It lists some major Indian and foreign organized retail players operating in the country.

1. PRSENTATION
By
FARHAN.INAMDAR

4. Evolution of Indian retail
Modern Formats/
Historic/Rural Traditional/Pervasiv Government
International
Reach e Reach Supported
Exclusive Brand
Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
Khadi Stores
Cooperatives
Convenience Stores
Mom and
Pop/Kiranas
Weekly Markets
Village Fairs
Melas
Source of Neighborhood Availability/ Low Shopping
Entertainment Stores/Convenience Costs / Experience/Efficiency
Distribution

5. { Derived form a French word “Retailer”
Meaning : to cut a piece off or to break bulk }
“Includes all the activities of selling products or
services to the end consumers with added value”.

6.  Sale of goods/Services to the ultimate consumers-
Personal, Family or Household use.
 Thus involves more than just selling products-
(Services)
 Final leg in the distribution channel
 Is labor intensive

7.  Identifying the target markets (customers)
 Interpreting the needs of the targeted customers
 Developing good assortment of merchandise
 Presenting them in an effective manner so that
customers find it easy and attractive to buy

8. TARGET CUSTOMERS(BIG BAZAAR)
 Married couples
 Unmarried couples
 Income Group
Rs 8000 – Rs 35000 per month
 Age Group
All age group

9. Retailing has multiple functions-
Creates Market & Generates Employment

10. FUNCTIONS OF RETAILERS
PROVIDING
UNDERSTANDING
ASSORTMENT
CUSTOMER NEEDS
OF GOODS
& WANTS
SERVICES
PROVIDING FUNCTIONS OF
BREAKING
RETAILERS
SERVICES TO
CUSTOMERS BULK
PROVIDING
HOLDING INFORMATION TO
INVENTORY SUPPLIERS

11. Understanding Customer’s Needs & Wants
 Difference between need and want
 Understand what products and services are required by
the customers

12. Breaking the Bulk`
 Manufacturers normally send in cartons/cases/bags
 Retailers breaks these bulk suitable to the customer’s need
 Breaking Bulk: Breaking large shipments into smaller

13. Providing Services
 Provision of credit limit & hire-purchase facilities
 Home delivery of goods/services
 Provision of warranty, after sale service, customer
complaint resolution
 Helping customers choose a product/service
 Displaying products for customers ease of selection

14. Holding Inventory
 Help the customers in keeping the inventory already
broken into user-friendly sizes/prices
 Help the customers in making the products available at all
the time at relatively stable prices.
 Helps the customers in reducing the storage costs/losses

15. Providing Information to Suppliers
 Retailers are in direct contact with the end consumers
 Feed back from the customers, comments, suggestions etc..
 Market/Source of competitor information

16. TYPICAL CHANNEL OF DISTRIBUTION
Manufacture
Wholesaler
Dealer
Retailer
Final
Consumer

17. Types of Retailers
 Specialty Store:
(Narrow product line ) E.g. Athlete’s Foot. Reebok, Nike,
 Department Store:
(Several Product lines) E.g. Pantaloons, Shoppers' stop
 Convenience Store:
(Limited line of high turnover convenience products, Small store in
residential area, ) E.g. Local retail shops open 24/7
 Discount store:
Standard or specialty merchandise low price, low margin, high
volume stores (Big Bazaar, Wal-Mart)

18. CONT…
 Super markets:
(Huge Selling space, routinely purchased food and household items.
Plus services (Food World, More Retailing)
 Off-price retailer:
Leftover goods, overruns, irregular merchandise sold at less
than retail price E.g. Factory outlets
 Catalog Showroom:
Broad selection of high markup, fast moving, brand-name good
sold by catalog at discount. E.g. Oriflame, Amway

19. Based on merchandise and pricing
 Departmental Stores
 Specialty Stores
 Discount Stores
 Supermarkets & Hypermarkets

20. Department Stores
A large store selling:
 Broad Variety & Deep
Assortment
 Offer considerable customer
services
 Organized into physically separate
departments
Ex: Shoppers' Stop, J C Penny,
Regional Malls

21. Continued..
The Characteristics :
 Located in the market area or a major shopping center
 Availability of parking space
 Freedom for the customers to move around
 Relatively high prices with margins large enough

22. Speciality Stores
 Have narrow product line with deep assortment
 Provides higher degree of customer service
 Better selection with the assistance of sales people.

23. Discount Stores
 General merchandise retailer
 Offers broad variety & assortment
 Limited services and low prices

24. The characteristics :
 Located in the lower priced areas away from the market
 Dependence on the shoppers
 Low cost fittings
 No free services such as delivery to door etc..
 Relies on heavy advertisement in the nearby areas
No free services such as delivery to door etc..

25. Super Market , Superstores & Hypermarkets
Super Market
 Self-service (Majorly) food store
offering groceries along with other
household maintenance products
 Size of the store- <25000 Sq Ft.
 Low cost, low margin, high volume
stores

26. Continued..
Superstores
 Larger supermarkets
 Size of the store- 25000 Sq Ft +.
 Also offers products and services like pharmacy, bakery,
chats, salad bar etc under one roof
Ex: Nilgiris

27. Continued..
Hypermarkets
 Very large in size
 Size of the store- 50000 Sq Ft +.
 offers mainly grocery, general merchandise goods, flower shop,
photo shop etc..
 Selling huge volumes at less margins
 Similar to that of the discount stores.

28. MERCHANDISING
The activity of trying
to sell goods or
services by advertising
them or displaying
them attractively.

32. PROBLEMS IN ORGANISED RETAIL IN
INDIA
 Stiff competition
 Opposition to FDI
 Shortage of retail space
 Customs duties
 Shortage of retail space
 Multiple and complex taxation system
 Poor supply chain
 Trained work force
 Lack of Retailing Courses and study options
 Technology

33. THE ORGANIZED PLAYERS
 Indian companies  Foreign Players
 Future Group
 Reliance Retail  Nike (Single brand)
 Bharti  Levis (Single brand)
 Shoppers'Stop  Wal-mart (JV)
 Pyramid
 Aditya Birla Group  Metro (Cash&Carry)
 Subhiksha
 Spencer Group
 Tata – Westside,
 Tata – Chroma

34.  Government has to formulate a separate policy
for the industry
 FDI needs to be encouraged
 Land acquisition rules required modification
 Retail as a separate industry
CONCLUSION