Retail is such a pervasive and dynamic a sector of the economy, that it is impossible to identify a single point at which modernisation began. I’ve met countless people who perhaps entered the (Indian) retail sector during the last 15 years, and who mark the beginnings of modern retail around then. There is no doubt that there has been an explosion of investment in retail chains in the last 2 decades, but we need to acknowledge the foundation on which this development is built. The current titans of the sector are standing on the shoulders of previous giants who have created successes and failures from which we are still learning.
This piece is not an exhaustive history of the evolution of the retail business in India, nor a census of all the brands operating in this sector, but the aim is to capture the flavours of the phases of development.
From fashion retailers to salons and even restaurants, the franchise business model has been in existence for over a century now. However, what remains imperative to realise is whether this business model is apt for your brand to grow. We speak with brands across categories that have expanded using this business model and also those who chose to grow organically.
X was founded in 1952 by Ramanbhai Patel in India and has grown to become one of India's major pharmaceutical companies. In 2001, X acquired German Remedies, another Indian pharmaceutical company. In 2007, X signed an agreement to acquire a Brazilian pharmaceutical company called Nikkho, marking its expansion to other countries. X is known for producing a very famous drug used for treating tuberculosis.
Bata is a leading footwear manufacturer and retailer in India that was founded in 1894. It initially positioned itself as providing affordable footwear for the middle class but lost market share in the 1990s. Under new leadership in 2005, Bata repositioned itself with a focus on large format stores, revamped merchandise, and targeting younger consumers. It launched new brands like Hush Puppies and Footin while continuing to invest in its existing brands. Bata's turnaround has led it to once again become the market leader in the organized Indian footwear market.
The document provides a history of shoe making from primitive times to modern day. It discusses the evolution of shoe styles in different regions and eras, from sandals worn by early Egyptians to pointed shoes in medieval Europe. It then focuses on the history of Bata, beginning in 1894 in Czechoslovakia and expanding globally over the 20th century. Today, Bata is the world's largest shoe retailer and manufacturer, with operations in over 70 countries.
In this project, I worked with a group to create a buying plan for the shoes department of Zara. We analyzed up and coming trends for footwear and looked to see how those trends could further expand the ZARA shoe market.
Indian Fashion Industry
Some of the most important factors that influence the particular clothing choices are people values and attitudes, their tendencies toward conformity or individuality, and their personalities.
Fashion magazine is one book were to be left from today for people to read in hundreds of years.
Values are the ideas, belief, and things that are important to an individual. They are the underlying motivations for a person’s actions.
Attitudes are formed from values. They are an individuals feelings or reactions to people, things or ideas.
Some people select clothing because they value comforts.
Bonsaii operates specialty retail stores for kids aged 0-14 years in India. It currently has 4 stores located in upmarket areas in Pune, Nagpur, and Hyderabad. The document discusses Bonsaii's strategy for choosing new store locations, which involves opening 1-2 large format stores in emerging non-metro cities to capture the local market and create barriers for competitors. It focuses on product categories like toys, stationery, and infants accessories where there is a lack of organized competition.
Louis Philippe Retail Marketing - South City MallSudip Dutta
The document summarizes information about the Louis Philippe brand and its retail operations in India. It discusses that Louis Philippe is owned by Aditya Birla Group and symbolizes elegance and luxury. It was launched in 1989 and helped create the super-premium segment in readymade apparel. The document then provides details on their merchandise mix, categories, quality, product lines including LP and Gods & Kings, footwear launch, pricing policies, store layout and fixtures.
From fashion retailers to salons and even restaurants, the franchise business model has been in existence for over a century now. However, what remains imperative to realise is whether this business model is apt for your brand to grow. We speak with brands across categories that have expanded using this business model and also those who chose to grow organically.
X was founded in 1952 by Ramanbhai Patel in India and has grown to become one of India's major pharmaceutical companies. In 2001, X acquired German Remedies, another Indian pharmaceutical company. In 2007, X signed an agreement to acquire a Brazilian pharmaceutical company called Nikkho, marking its expansion to other countries. X is known for producing a very famous drug used for treating tuberculosis.
Bata is a leading footwear manufacturer and retailer in India that was founded in 1894. It initially positioned itself as providing affordable footwear for the middle class but lost market share in the 1990s. Under new leadership in 2005, Bata repositioned itself with a focus on large format stores, revamped merchandise, and targeting younger consumers. It launched new brands like Hush Puppies and Footin while continuing to invest in its existing brands. Bata's turnaround has led it to once again become the market leader in the organized Indian footwear market.
The document provides a history of shoe making from primitive times to modern day. It discusses the evolution of shoe styles in different regions and eras, from sandals worn by early Egyptians to pointed shoes in medieval Europe. It then focuses on the history of Bata, beginning in 1894 in Czechoslovakia and expanding globally over the 20th century. Today, Bata is the world's largest shoe retailer and manufacturer, with operations in over 70 countries.
In this project, I worked with a group to create a buying plan for the shoes department of Zara. We analyzed up and coming trends for footwear and looked to see how those trends could further expand the ZARA shoe market.
Indian Fashion Industry
Some of the most important factors that influence the particular clothing choices are people values and attitudes, their tendencies toward conformity or individuality, and their personalities.
Fashion magazine is one book were to be left from today for people to read in hundreds of years.
Values are the ideas, belief, and things that are important to an individual. They are the underlying motivations for a person’s actions.
Attitudes are formed from values. They are an individuals feelings or reactions to people, things or ideas.
Some people select clothing because they value comforts.
Bonsaii operates specialty retail stores for kids aged 0-14 years in India. It currently has 4 stores located in upmarket areas in Pune, Nagpur, and Hyderabad. The document discusses Bonsaii's strategy for choosing new store locations, which involves opening 1-2 large format stores in emerging non-metro cities to capture the local market and create barriers for competitors. It focuses on product categories like toys, stationery, and infants accessories where there is a lack of organized competition.
Louis Philippe Retail Marketing - South City MallSudip Dutta
The document summarizes information about the Louis Philippe brand and its retail operations in India. It discusses that Louis Philippe is owned by Aditya Birla Group and symbolizes elegance and luxury. It was launched in 1989 and helped create the super-premium segment in readymade apparel. The document then provides details on their merchandise mix, categories, quality, product lines including LP and Gods & Kings, footwear launch, pricing policies, store layout and fixtures.
Comparison Between Apparels ( Gucci, Armani & Raymonds )Ishan Vyas
Gucci is an Italian luxury brand founded in 1921 that produces apparel, accessories, and home goods. It struggled financially in the 1990s but was revived under new creative director Tom Ford in the mid-1990s. Today it is owned by French conglomerate PPR and produces a wide range of products while also engaging in charitable partnerships through campaigns benefiting UNICEF.
Madura Fashion & Lifestyle is one of India's largest fashion retailers, reaching customers through over 1,500 stores totaling 1.9 million square feet of retail space. It offers a wide range of affordable to luxury brands catering to all ages. The company faces competition from global brands entering the Indian market and rising private labels. However, it maintains a large market share through its diverse brand portfolio and nationwide retail presence. The analysis examines Madura's positioning, the competitive forces in the industry, and its expansion across the textiles and retail sectors.
Global luxury and premium kids fashion brands are seeing potential in the Indian market as the number of children under 14 makes up 29% of India's population of 1.2 billion people. The kids wear market in India is one of the fastest growing, expanding at a rate of 10% annually and projected to be worth Rs. 95,000 crore by 2016. Indian parents are increasingly willing to purchase branded apparel for their children, driven by rising disposable incomes, Western influences, and kids emerging as independent buyers who are image-conscious. Major international brands have entered the market to capitalize on the growth opportunities in kids fashion in India.
This document provides an overview and analysis of the luxury brand Burberry. It includes a brief history of the brand, an analysis of its mission and vision, competitors, strengths, weaknesses, opportunities, threats using SWOT and PEST analysis. Product segments such as accessories, womenswear and menswear are examined. Financial information including contribution margin is also presented. Sources used in the analysis are listed at the end.
The document provides information about a group project on Bata India Ltd. It includes the group members, company guide, and brief histories of Bata India and its business segments. It describes Bata India as the largest footwear retailer and manufacturer in India, incorporated in 1931. It initially operated as a small unit and has since expanded its retail and wholesale networks across the country.
Amira was founded in 1915 and has evolved into a leading global provider of packaged Indian specialty rice, selling products in over 40 countries. They generate most of their revenue from sales of Basmati rice under their flagship Amira brand as well as other brands. In recent years, their fourth generation of leadership has expanded the Amira brand globally. They also sell ready-to-eat snacks and bulk commodities to international trading firms. In 2012, Amira Nature Foods completed an IPO and their stock trades on the New York Stock Exchange.
This document provides an analysis of various apparel retailers in Kolkata, India. It describes the categories of apparel products, surveys several major multi-brand outlets in the city, and examines exclusive brand stores. For some of the largest retailers (Big Bazaar, Pantaloons, Brand Factory, Central), more details are given on the stores visited, observations made, and aspects of their marketing approach. The document aims to comprehensively analyze the apparel retail landscape in Kolkata.
Madura Fashion & Lifestyle is a leading Indian fashion and lifestyle company that owns several top brands. It has pioneered new concepts in the Indian apparel industry and successfully manages a multi-brand portfolio. The company prides itself on its people-centric culture and hires top talent through a rigorous process to help its brands and business grow.
The document acknowledges and thanks various individuals who helped with a business plan report for Bata Shoe Company Bangladesh Ltd. It thanks the supervisor Ms. Shehely Parvin for her guidance and support during the project. It also thanks Razib Jahan Ferdous from Bata for his contributions and enthusiasm. Working on the project helped the author realize the value of teamwork in a corporate environment. Thanks are also given to friends who worked on the team and the Marketing Department and Bata authorities for their cooperation.
This document provides a mini project report on VIP Industries submitted for a master's degree program. It includes an introduction, objectives of the project, literature review on VIP Industries which discusses the company's history and brands. It also acknowledges those who helped with the project and provides a table of contents for the report sections.
Alexey has been working in Zolla company since 2009. He started in 2009 as an assistant of import manager. By that time our company had about 80 stores and one brand. Now we own about 200 stores, which are located all over the country. This year he became deputy chief of import department. The company continues its development searching for new talented designers and new good suppliers all over the world. Currently they are trying to develop one more new brand YNG which is mostly oriented on youth.
K.R. Apparels is a Mumbai-based manufacturer and distributor of readymade shirts and trousers established in 1979. They currently supply products primarily to the South Indian market. The company is seeking to launch a new collection targeting the Mumbai menswear sector. A study was conducted through surveys of Mumbai consumers and retail managers to understand preferences and trends. The results will be used to design a collection for K.R. Apparels to successfully launch in the Mumbai market.
Gini & Jony is a leading kidswear brand in India with over 30 years of experience. It has 277 exclusive brand outlets and is present in over 500 multi-brand stores across 79 cities. The company has two manufacturing facilities and partnerships with major retailers like Shoppers Stop, Lifestyle, and Reliance Trends. Gini & Jony aims to expand further in India and abroad while maintaining its position as a dominant player in the branded kidswear segment.
This document summarizes a journal article about the internationalization of the Spanish fashion brand Zara. It provides background on Zara and its business model, which focuses on quick production turnaround and receiving frequent small shipments to stores based on customer feedback. The summary discusses Zara's international expansion, including its motivations such as market saturation at home and opportunities abroad from trade liberalization. Key aspects of Zara's internationalization process are also covered, such as its selection of major fashion markets and use of different entry strategies in different countries.
The document provides information on several Indian clothing brands, including their heritage, target groups, and brand positioning. It discusses Louis Philippe, Van Heusen, Allen Solly, Peter England, and People, outlining each brand's history and focus. Key details are highlighted around the brands' target demographics, product offerings, and messaging.
India kids' apparel and footwear market outlook |India Kids Wear MarketKen Research Pvt ltd.
India Kids' Apparel and Footwear Market Outlook to 2020 - Favourable Demographic Profile and Rising Household Disposable Income to Drive Future" provides a comprehensive analysis of various aspects such as market size, segment on the basis of organized and unorganized sector, product categories, domestically manufactured and imported products, type, material, upper or bottom wear, winter or summer wear and consumer profiling. The report also includes information on online kids' apparel and footwear market along with the contribution of online sales of apparel and footwear products in overall market.
Madura Garments, a division of Aditya Birla Nuvo, capitalized on changes in the Indian marketing environment in the 1990s. As liberalization opened India's markets and economy, Madura introduced international brands like Louis Philippe and Van Heusen into the growing Indian readymade clothing market where few national brands previously existed. While other companies did not notice or react to these shifts, Madura captured market share by acquiring brands that offered new styles and concepts to Indian consumers. Madura also expanded into new segments like women's and children's wear that were lucrative opportunities. Through responsive adaptation to changes in India's liberalizing economy, Madura emerged as a leader in the country's clothing industry.
This document provides information about the fashion brand Zara, including:
1) Zara is owned by Inditex, one of the largest fashion retailers in the world, which operates over 6,000 stores globally and several other brands.
2) Zara prides itself on having the latest fashion trends at affordable prices and short production cycles to constantly refresh stores.
3) Financial information is presented showing Inditex's increasing sales and profits from 2010-2014, with Zara being the leading brand.
The document provides details about a winter internship project done at Pantaloons Fashion and Retails India Ltd. focusing on optimizing store operations. The internship included tasks like customer calling to invite them to an end of season sale, handling the cash counter, and learning about visual merchandising, warehousing, and customer database management. Key findings from a survey of 100 customers included that proper segregation and size display increases conversion rates, customer interaction boosts basket size, and offer displays need to be done effectively. The internship helped provide hands-on experience in retail operations and customer service.
In the next 3-5 years, the Indian retail industry is expected to grow significantly as organized retail expands. Major players from India and abroad plan to invest heavily in retail as the sector is projected to reach $300-500 billion by 2010. Foreign retailers are waiting for regulations to allow more foreign direct investment. Cities like Bangalore are emerging as top destinations for flagship stores due to relatively affordable real estate and a large consumer base. The children's wear market in particular is growing as brands target wealthy parents who are willing to spend on their kids.
Comparison Between Apparels ( Gucci, Armani & Raymonds )Ishan Vyas
Gucci is an Italian luxury brand founded in 1921 that produces apparel, accessories, and home goods. It struggled financially in the 1990s but was revived under new creative director Tom Ford in the mid-1990s. Today it is owned by French conglomerate PPR and produces a wide range of products while also engaging in charitable partnerships through campaigns benefiting UNICEF.
Madura Fashion & Lifestyle is one of India's largest fashion retailers, reaching customers through over 1,500 stores totaling 1.9 million square feet of retail space. It offers a wide range of affordable to luxury brands catering to all ages. The company faces competition from global brands entering the Indian market and rising private labels. However, it maintains a large market share through its diverse brand portfolio and nationwide retail presence. The analysis examines Madura's positioning, the competitive forces in the industry, and its expansion across the textiles and retail sectors.
Global luxury and premium kids fashion brands are seeing potential in the Indian market as the number of children under 14 makes up 29% of India's population of 1.2 billion people. The kids wear market in India is one of the fastest growing, expanding at a rate of 10% annually and projected to be worth Rs. 95,000 crore by 2016. Indian parents are increasingly willing to purchase branded apparel for their children, driven by rising disposable incomes, Western influences, and kids emerging as independent buyers who are image-conscious. Major international brands have entered the market to capitalize on the growth opportunities in kids fashion in India.
This document provides an overview and analysis of the luxury brand Burberry. It includes a brief history of the brand, an analysis of its mission and vision, competitors, strengths, weaknesses, opportunities, threats using SWOT and PEST analysis. Product segments such as accessories, womenswear and menswear are examined. Financial information including contribution margin is also presented. Sources used in the analysis are listed at the end.
The document provides information about a group project on Bata India Ltd. It includes the group members, company guide, and brief histories of Bata India and its business segments. It describes Bata India as the largest footwear retailer and manufacturer in India, incorporated in 1931. It initially operated as a small unit and has since expanded its retail and wholesale networks across the country.
Amira was founded in 1915 and has evolved into a leading global provider of packaged Indian specialty rice, selling products in over 40 countries. They generate most of their revenue from sales of Basmati rice under their flagship Amira brand as well as other brands. In recent years, their fourth generation of leadership has expanded the Amira brand globally. They also sell ready-to-eat snacks and bulk commodities to international trading firms. In 2012, Amira Nature Foods completed an IPO and their stock trades on the New York Stock Exchange.
This document provides an analysis of various apparel retailers in Kolkata, India. It describes the categories of apparel products, surveys several major multi-brand outlets in the city, and examines exclusive brand stores. For some of the largest retailers (Big Bazaar, Pantaloons, Brand Factory, Central), more details are given on the stores visited, observations made, and aspects of their marketing approach. The document aims to comprehensively analyze the apparel retail landscape in Kolkata.
Madura Fashion & Lifestyle is a leading Indian fashion and lifestyle company that owns several top brands. It has pioneered new concepts in the Indian apparel industry and successfully manages a multi-brand portfolio. The company prides itself on its people-centric culture and hires top talent through a rigorous process to help its brands and business grow.
The document acknowledges and thanks various individuals who helped with a business plan report for Bata Shoe Company Bangladesh Ltd. It thanks the supervisor Ms. Shehely Parvin for her guidance and support during the project. It also thanks Razib Jahan Ferdous from Bata for his contributions and enthusiasm. Working on the project helped the author realize the value of teamwork in a corporate environment. Thanks are also given to friends who worked on the team and the Marketing Department and Bata authorities for their cooperation.
This document provides a mini project report on VIP Industries submitted for a master's degree program. It includes an introduction, objectives of the project, literature review on VIP Industries which discusses the company's history and brands. It also acknowledges those who helped with the project and provides a table of contents for the report sections.
Alexey has been working in Zolla company since 2009. He started in 2009 as an assistant of import manager. By that time our company had about 80 stores and one brand. Now we own about 200 stores, which are located all over the country. This year he became deputy chief of import department. The company continues its development searching for new talented designers and new good suppliers all over the world. Currently they are trying to develop one more new brand YNG which is mostly oriented on youth.
K.R. Apparels is a Mumbai-based manufacturer and distributor of readymade shirts and trousers established in 1979. They currently supply products primarily to the South Indian market. The company is seeking to launch a new collection targeting the Mumbai menswear sector. A study was conducted through surveys of Mumbai consumers and retail managers to understand preferences and trends. The results will be used to design a collection for K.R. Apparels to successfully launch in the Mumbai market.
Gini & Jony is a leading kidswear brand in India with over 30 years of experience. It has 277 exclusive brand outlets and is present in over 500 multi-brand stores across 79 cities. The company has two manufacturing facilities and partnerships with major retailers like Shoppers Stop, Lifestyle, and Reliance Trends. Gini & Jony aims to expand further in India and abroad while maintaining its position as a dominant player in the branded kidswear segment.
This document summarizes a journal article about the internationalization of the Spanish fashion brand Zara. It provides background on Zara and its business model, which focuses on quick production turnaround and receiving frequent small shipments to stores based on customer feedback. The summary discusses Zara's international expansion, including its motivations such as market saturation at home and opportunities abroad from trade liberalization. Key aspects of Zara's internationalization process are also covered, such as its selection of major fashion markets and use of different entry strategies in different countries.
The document provides information on several Indian clothing brands, including their heritage, target groups, and brand positioning. It discusses Louis Philippe, Van Heusen, Allen Solly, Peter England, and People, outlining each brand's history and focus. Key details are highlighted around the brands' target demographics, product offerings, and messaging.
India kids' apparel and footwear market outlook |India Kids Wear MarketKen Research Pvt ltd.
India Kids' Apparel and Footwear Market Outlook to 2020 - Favourable Demographic Profile and Rising Household Disposable Income to Drive Future" provides a comprehensive analysis of various aspects such as market size, segment on the basis of organized and unorganized sector, product categories, domestically manufactured and imported products, type, material, upper or bottom wear, winter or summer wear and consumer profiling. The report also includes information on online kids' apparel and footwear market along with the contribution of online sales of apparel and footwear products in overall market.
Madura Garments, a division of Aditya Birla Nuvo, capitalized on changes in the Indian marketing environment in the 1990s. As liberalization opened India's markets and economy, Madura introduced international brands like Louis Philippe and Van Heusen into the growing Indian readymade clothing market where few national brands previously existed. While other companies did not notice or react to these shifts, Madura captured market share by acquiring brands that offered new styles and concepts to Indian consumers. Madura also expanded into new segments like women's and children's wear that were lucrative opportunities. Through responsive adaptation to changes in India's liberalizing economy, Madura emerged as a leader in the country's clothing industry.
This document provides information about the fashion brand Zara, including:
1) Zara is owned by Inditex, one of the largest fashion retailers in the world, which operates over 6,000 stores globally and several other brands.
2) Zara prides itself on having the latest fashion trends at affordable prices and short production cycles to constantly refresh stores.
3) Financial information is presented showing Inditex's increasing sales and profits from 2010-2014, with Zara being the leading brand.
The document provides details about a winter internship project done at Pantaloons Fashion and Retails India Ltd. focusing on optimizing store operations. The internship included tasks like customer calling to invite them to an end of season sale, handling the cash counter, and learning about visual merchandising, warehousing, and customer database management. Key findings from a survey of 100 customers included that proper segregation and size display increases conversion rates, customer interaction boosts basket size, and offer displays need to be done effectively. The internship helped provide hands-on experience in retail operations and customer service.
In the next 3-5 years, the Indian retail industry is expected to grow significantly as organized retail expands. Major players from India and abroad plan to invest heavily in retail as the sector is projected to reach $300-500 billion by 2010. Foreign retailers are waiting for regulations to allow more foreign direct investment. Cities like Bangalore are emerging as top destinations for flagship stores due to relatively affordable real estate and a large consumer base. The children's wear market in particular is growing as brands target wealthy parents who are willing to spend on their kids.
Shoppers Stop is a leading Indian retail chain with over 50 stores across the country. It offers a wide range of branded apparel, accessories, and home products. The stores have a modern, stylish interior design spread over multiple floors. Shoppers Stop partners with brands and movies to offer exclusive merchandise like Zoozoo character products and film-inspired clothing lines. It targets young, trendy consumers and connects with them through social media marketing. Globus is another major Indian retailer with over 30 stores. Known for its youth fashion, Globus stores aim to provide an enjoyable shopping experience through diverse product categories and signature store designs. Target, an American retailer, operates around 1,800 stores across the US. Their stores carry a variety
BDG Metal & Power Ltd. is part of the Goyal Group, which was established in 1960 and is now one of the premier manufacturers and traders of iron and steel in India with a group turnover of over USD 240 million. BDG Metal & Power's vision is to be a premium global conglomerate focused on the businesses it operates in, and its mission is to deliver superior value to customers, shareholders, employees and society. The company is involved in the manufacture of various steel and alloy products. The document then discusses the Indian retail industry and provides an overview of department stores and their importance as consumers value convenience and variety. It also outlines the key factors influencing customers' preference for department stores.
report on customer relatioship management1225101994
BDG Metal & Power Ltd. is part of the Goyal Group, established in 1960, which is now a premier manufacturer and trader of iron and steel with a group turnover of over USD 240 million. The company's vision is to be a premium global conglomerate focused on the businesses it operates in, and its mission is to deliver superior value to customers, shareholders, employees and society. The company is involved in the manufacture of ferro alloys, carbon steel, thermo-mechanically treated bars, wire rods, structural steel and prefabricated steel products.
This document discusses the modern retail industry in India and provides success stories of several major retailers. It defines retail business as the process of selling consumer goods through various channels to earn a profit. Major retailers discussed include V-Mart, Bata India, Future Retail, and Aditya Birla Retail. V-Mart operates primarily in tier 2 and 3 cities and was a pioneer in small town expansion. Bata India is the largest footwear retailer in India with over 1,200 stores. Future Retail is India's largest retailer serving customers in 95 cities. Aditya Birla Retail operates supermarkets and hypermarkets under the brand "MORE" to serve customers' daily, weekly, and monthly needs.
Retail Management by Neeraj bhandari (Surkhet Nepal)Neeraj Bhandari
This document discusses retail management in India. It defines retailing as activities involved in selling goods to final consumers. Retail management involves processes that help customers procure merchandise from stores. Major players in Indian retail include Pantaloon Retail, Shoppers Stop, Brandhouse, and Trent. Pantaloon Retail operates stores across 51 cities while Shoppers Stop has 51 department stores. Future prospects for retail in India are strong due to economic growth, infrastructure development, and changing consumer demographics.
Retail Management by Neeraj Bhandari (Surkhet, Nepal)Neeraj Bhandari
This document discusses retail management in India. It defines retailing as activities involved in selling goods to final consumers. Retail management involves processes that help customers procure merchandise from stores. Major players in Indian retail include Pantaloon Retail, Shoppers Stop, Brandhouse, and Trent. Pantaloon Retail operates stores across 51 cities while Shoppers Stop has 51 department stores. Future prospects for retail in India are strong due to economic growth, infrastructure development, and changing consumer demographics.
Wealth Creation through Creation of Intellectual Property Rights, By Vijay Pal Dalmia Advocate, IPR Lawyer Delhi High Court, Partner and Head IP & IT Laws Division, Vaish Associates Advocates
Pantaloon Retail (India) Limited is India's leading retailer operating multiple retail formats across value and lifestyle segments. It operates over 10 million square feet of retail space across over 1000 stores in 61 cities. The company's major retail chains include Pantaloons, Big Bazaar, Food Bazaar, and Central. Pantaloon Retail is part of the Future Group, which aims to deliver products and services to every Indian consumer. Future Group has expanded to include various retail formats and over 30,000 employees across India.
The Indian retail sector has traditionally consisted of small neighborhood kirana stores but has increasingly modernized and organized. Major developments include the emergence of shopping malls and centers in urban areas in the 1990s, as well as various retail formats such as supermarkets and hypermarkets. While organized retail makes up only 3% of the total Indian retail market currently, the sector is expected to grow rapidly due to rising incomes, population growth, and urbanization. Several large Indian retailers have emerged but the sector remains fragmented compared to large international retailers like Walmart.
The document provides an executive summary and introduction about organized retail stores in India. It discusses that organized retail stores are market leaders in retailing that have been successful in upgrading consumers and introducing new products. It also discusses that most respondents prefer branded products and purchase items based on brand name. The document then discusses the importance of customer satisfaction for businesses in a competitive marketplace.
The document provides information about Future Group, a diversified Indian conglomerate founded by Kishore Biyani in 1987. It operates several retail formats across India, including supermarket chains Big Bazaar and Food Bazaar. With over 80,000 employees and 1.3 million square feet of retail space, Future Group has grown to become one of India's largest retailers through various acquisitions and partnerships over the years. The group offers an array of products and services beyond retail, spanning finance, fashion, FMCG and more.
The document discusses the importance and effectiveness of marketing in politics. It begins by defining political marketing as communicating with various stakeholders like party members, media, funders, and voters to promote a competitive platform to achieve organizational goals and satisfy voter needs in exchange for votes. It then analyzes the effectiveness of marketing in Narendra Modi's leadership in Gujarat, noting various socioeconomic indicators that show mixed or negative results under his governance such as high poverty, malnutrition, and human rights violations despite marketing portraying development and growth. The summary questions the true impact of political marketing when underlying realities do not match the marketed messages.
This document provides an overview of retail marketing in India. It discusses how the Indian retail industry has traditionally been unorganized and fragmented, with most retailers operating small, localized shops. However, organized retail is growing in India, with the emergence of stores like Shoppers Stop, Westside, and Food Bazaar. The document also compares the Indian retail industry to more developed global markets and outlines the opportunities for future growth in India.
Mall culture has taken India by storm as the retail revolution sweeps the nation. Visiting malls on weekends has become a popular activity for metropolitan Indians seeking an alternative to poor living conditions. The malls offer air conditioning, international brands, amenities, and entertainment under one roof. While boosting the economy, the growing consumerism and shift away from traditional markets risks changing Indian culture and values. Problems include increased traffic, infrastructure strain, and the psychological impacts of overconsumption.
This document provides an overview of the Van Heusen brand. Some key points:
- Van Heusen is a global lifestyle brand known for stylish, affordable dress shirts and other apparel for men and women.
- It introduced the patented soft-folding collar in 1921 and has grown to offer various collections for different occasions.
- In India, Van Heusen is owned by Aditya Birla Fashion and Retail Ltd., a leading apparel company.
- The company offers a range of affordable and luxury brands to cater to all age groups and styles. Van Heusen remains one of its premier brands.
To summarize the document:
1. The document discusses two home and office improvement companies - @home and Durian. @home provides interior planning services and products categorized into sleeping, living, dining, furnishing, and lighting. Durian offers plywood, furniture, accessories, and turnkey projects.
2. Both companies provide quality products and services. @home has price ranges from Rs. 1,000 to Rs. 100,000 for individual items and Rs. 39,000 to Rs. 250,000 for packages. Durian has price ranges from Rs. 8,500 to Rs. 350,000 for furniture.
3. The document discusses the founders and leadership of Durian and provides an
Fashion Buying project focusing on a chosen floor in the department store La Rinascente in order for it to develop and bring in new designers or trends/categories for the upcoming season.
Similar to Retail wasn't born yesterday - Devangshu Dutta (20)
Devangshu Dutta - Philosophy of Education: Learnings from Ancient TextsDevangshu Dutta
Talk delivered at the ‘Global Summit on Science and Spirituality for Peace’ at MIT World Peace University, Pune. The theme of the Summit was ‘Integration of Science, Technology, Innovation and Spirituality for World Peace’. The talk began with these two questions: Are ancient texts relevant beyond the realms of spirituality, philosophy, literature or history? What are the gaps in modern education where the past could be useful?
The talk ended with two themes essential for the future: learnability and environmental sustainability.
Mythbusting: Competitiveness for the Indian Textile and Apparel IndustryDevangshu Dutta
There are many myths that are prevalent among the observers of the Indian textile and apparel industry. Here are a few illustrative ones that point to the need to seriously review of the way the Indian industry competes globally:
• Myth # 1 – To grow, India needs to do what China has done
• Myth # 2 - India is competitive because Indian labour is cheap
• Myth # 3 - Indian handiwork is irreplaceable
• Myth # 4 - Compared to China and other Asian giants, the fragmented supply base of Indian manufacturers is more flexible and can competitively fulfil small orders
• Myth # 5 - India needs to focus on its core strengths – for example, India has a sustainable advantage in cotton that will maintain its competitive edge
To break-through, Indian industry has to consistently apply the 4-D Framework
-> Define
-> Design
-> Develop
-> Deliver
All of these are seemingly simple, disparate steps. However, put together and carried out consistently over a period of time, they can move the Indian industry into a different orbit. Let’s imagine an old valve radio – the tuning knob had two parts – a large outer piece to select the major frequency, and a smaller inner part for fine-tuning closer to the frequency. Many of the industry’s moves are short-term oriented and many government policies are helping to fine-tune the frequency set by the industry. We would ask the industry to “Change the Frequency”, and select the path of higher value growth.
(READ THE FULL REPORT)
Impact of Modern Retail and Foreign Direct Investment (FDI) - Prime Source Fo...Devangshu Dutta
There are two sides to the story: modern retail as the benefactor and modern retail as a scourge. Has there really been a change, any significant benefits accrued? How do people in the supply chain feel?
What are the changes taking place?
Deconstructing Zara - India Fashion Forum (2004)Devangshu Dutta
Zara offers clear lessons for companies looking to improve their fashionability index with the consumer as well as their supply chain efficiency. (A presentation made at the IMAGES Fashion Forum, February 2004, by Devangshu Dutta, chief executive of Third Eyesight - http://thirdeyesight.in.)
The document discusses what it takes to be a fundable venture. It outlines the evaluation filters PVC uses, which include evaluating the team's passion and integrity, whether there is an existing business rather than just an idea or plan, geographical proximity to Delhi-NCR, funding needs, and expected investor returns. It states that the biggest enabler of a venture's saleability and scale is having a scalable team, processes, and structure with strong growth prospects and the ability to absorb significant funding. The document notes that while entrepreneurs may be motivated by developing an idea or gaining employment, investors are motivated by returns and exiting their investment.
This document discusses the growth of the Indian retail market. It notes that India has experienced high GDP growth rates over the last few years, fueling the emergence of a large middle class population. This has attracted both domestic and international retailers to the Indian market. However, the author argues that many retailers have overestimated demand, especially in smaller cities and towns, by applying the same business models without accounting for cultural and economic differences across India. The rapid growth of modern retail has also created challenges related to high real estate costs and infrastructure constraints in large cities. Overall, the author believes retail growth in India will remain organic over the long run rather than driven by large-scale corporate consolidation.
Myth and reality of the retail revolution in India (2006)Devangshu Dutta
Much has been written about the retail revolution in India, with the visible growth in malls and consumerism seeming to be sprouting everywhere. But the real explosion us yet to come.
It’s no secret that the marketing landscape is growing increasingly complex, with numerous channels, privacy regulations, signal loss, and more. One of the biggest problems facing marketers today is that they’re experiencing data deluge and data drought simultaneously.
Bliss Point by Tinuti addresses these challenges by providing a single, user-friendly platform for measuring what marketers previously struggled to measure. With Bliss Point, you can move beyond simply validating past actions and instead use measurement to guide real-time decision-making on what should happen next.
Join our product experts for a live demonstration of Bliss Point. Discover how it can empower your brand with the tools and insights needed to optimize each channel, across your entire media mix, and your overall brand performance.
Social Media is Eating Retail- The $Trillion Trend You Can't Ignore.pdf
Retail wasn't born yesterday - Devangshu Dutta
1. 10 Retail Icons of India
RETAIL WASN’T
BORN YESTERDAY
By Devangshu Dutta
Retail is such a pervasive and dynamic a sector of the
economy, that it is impossible to identify a single point at
which modernisation began. I’ve met countless people who
perhaps entered the retail sector during the last 15 years,
and who mark the beginnings of modern retail around
then.
There is no doubt that there has been an explosion of
investment in retail chains in the past two decades, but
we need to acknowledge the foundation on which this
development is built. The current titans of the sector are
standing on the shoulders of previous giants who have
created successes and failures from which we are still
learning.
This piece is not an exhaustive history of the evolution of
the retail business in India, nor a census of all the brands
operating in this sector, but the aim is to capture the
flavours of the phases of development.
2. 11Retail Icons of India
EARLY YEARS
If we were to trace back the growth of “organised” retail
(mind you, I dislike that word!) or modern retail to the
first retail chains, we will have to cast our mind back
more than a hundred years. While many businesses of that
time have disappeared, a few pioneers continue to survive,
straddling three eras: the British Raj, the Socialist Raj and
the Liberalised Lion economy. The businesses that
continue to stand, having been through multiple
transformations, include:
• Higginbotham’s (1844) – beginning from Madras (now
Chennai), it spread to Bangalore, and then to other
locations and is known around southern India.
• Spencer’s (1863) – one of the earliest grocery retailers
to grow into a chain across undivided India, it moved to
Indian ownership in the 1960s and was acquired by the
RPG Group in the late 1980s.
• AH Wheeler’s (1877) – launched from Allahabad
Railway Station, it has been operating from railway
stations (along with Higginbotham’s in some locations) –
while it lost its monopoly in 2004, it has certainly played
a key role in the growth of paperbacks and magazines in
the country, keeping passengers company across billions
of kilometres of rail travel.
• Nilgiri’s (1905) – started with a small shop in Tamil
Nadu focussed on dairy products and other groceries, it
expanded to a large store in Bangalore in 1936 led by
the founder’s son, and then spread across the southern
states with a well-established reputation in dairy, bakery
and poultry products. In recent times it has been acquired
by the Future Group.
FIFTY YEARS OF INDEPENDENCE
The 1950s and 1960s remained fertile times, post-
Independence and before the heavy-handed Socialist Raj
truly began squeezing the life out of Indian businesses.
Leading textile companies such as DCM, Bombay Dyeing
and Raymond, and footwear companies such as Bata
and Carona established chains of retail stores including
company-operated stores as well as authorised dealers
operating under the companies’ banners.
The 1980s brought the Asian Games, colour television,
and a new up-to-date car model to India, all marks of a
new vibrancy. Over the 1980s, a new retail wave was led
by indigenous ventures such as Intershoppe (launched by
a fashion exporter), Little Kingdom and The Baby Shop
(children’s products), Nirula’s (fast food) and Computer
Point (home computers, PCs and accessories). Many of
these were certainly ahead of their time: the critical mass
of consumers had yet to develop, the business infrastructure
was inadequate, and funding norms were unsuitable to
the capital-hungry business of retail. Unlike the textile
companies that had large manufacturing and trading
businesses, these new retailers were like shooting stars,
glorious but visible for only a short period of time. This
period, unfortunately, also witnessed the degeneration
and disappearance of some of the older stalwarts
such as DCM and Carona that were beset by labour
disputes, management issues and disconnection from the
transforming market.
Numero Uno, an indigenous denim brand, was launched
in 1987 soon after VF’s American denim brands were
launched, and it took nearly a decade for Numero Uno to
reach other geographies in India. Nirula’s, one of the oldest
fast food restaurant chain based in North India, expanded
across the Delhi NCR in the 1980s and 1990s, and also
explored other cities, albeit with mixed success.
Future Group, which today has a large retail and consumer
brand portfolio, launched trousers under the name
Pantaloons in 1987, initially as a distributed brand, and
then denimwear under the brand name Bare. Within a few
years the company also launched exclusive stores by the
same names, to provide focussed visibility to the brands.
About a decade of growth later, the group launched its first
large format store under the Pantaloons name, but by now
covering a much wider range of products, which became its
launch pad for achieving scale.
The RPG group that had acquired Spencer & Co.
relaunched it in 1991 in a spanking, new format as
Spencer’s in Bangalore, and a short few years later
3. 12 Retail Icons of India
rebadged it again as Foodworld in a joint-venture with a
foreign partner. It subsequently went on to launch other
formats such as Musicworld and Health & Glow.
Also in 1991, the Rahejas converted an old cinema into
a department store, Shoppers Stop, aiming to provide
an international shopping experience, although initially
focussed on menswear. The store added women’s and
children’s sections in subsequent years and the second
store was launched four years later after the first one.
Subsequent large scale retail expansion only came about
towards the end of 1990s.
Little Kingdom is a notable example that I would like to
dwell on briefly (partly for the purely personal reason that
it was my first retail job!). The business was launched in
1987, headed by alumni of the illustrious IIMs around
the country, built on processes and IT systems that could
have been the envy of many retailers even 25 years later.
The company – Mothercare India Limited – was the first
purely retail company to start up and launch a public
issue in 1991. During the early 1990s, it was the largest
retail chain present across the country, in its categories. In
1991, it also attempted to bring the first home computer,
Spectrum, to forward-thinking parents through a mix
of in-store sales and door-to-door direct-selling. It was
admittedly one of the first to expand internationally,
opening a franchise store in Dubai in 1992. During its
short life, the team launched multiple brands and formats,
including Little Kingdom, Ms (a womenswear brand), The
Baby Shop, and became a partner to the international giant
VF Corporation’s Vanity Fair lingerie
brand in India. But, by the mid-
1990s – financially overstretched
between multiple brands and formats,
and backward integration into
manufacturing – it was gone.
Physical retail was not the only
avenue being explored for growth
during these decades. An Indian
company imagined replicating
the success of western catalogue
companies, and launched the
Burlington’s mail order catalogue
retail venture and even became
a joint-venture partner of one
of the world’s largest catalogue
retailers, Otto Versand (Germany).
Other models included direct sales
business, such as the Eureka Forbes
introducing vacuum cleaners through
demonstration parties (which was
emulated for the Spectrum home
computers mentioned above). With
the growth of private television
channels, products also began being
promoted during non-peak hours
through infomercials, though serious TV shopping was
still a few years away, coming up in the mid-2000s with
dedicated teleshopping channels.
THE FOREIGN HAND AND CORPORATE
RETAILING
The 1980s and 1990s also saw the launch of international
brands from global giants such as VF Corporation (Lee,
Wrangler, Vanity Fair), Coats Viyella (Louis Phillippe,
Van Heusen, Allen Solly), Benetton (UCB and 012), Levi
Strauss, Lacoste, Reebok, adidas, Pepe and Nike, grocery
retailers such as Nanz (a three-way German-US-Indian
partnership) and Dairy Farm International (with RPG
Group’s Spencer’s Retail) and Quick Service formats such
as Domino’s, McDonald’s, Pizza Hut, Baskin Robbins
and KFC.
India was reopening to business, global management
consultants were writing glowing reports about the
untapped potential of the (mythical) 200 million middle-
class customers and global retailers wanted to own part of
the action.
Due to the lack of large-format stores and suitable
environments, international brands that entered the Indian
market during this phase needed to create exclusive stores
to ensure that the brand could be communicated holistically
to the consumer, in an environment that was more in
the brand’s control, and many of them were, in a sense,
“forced” to become retailers in India.
However, around 1996, a very senior
member of the cabinet is reported to
have said, “Do we need foreigners to
teach us how to run shops?” It was
an unexpected condemnation, coming
as it was from a person and a party
otherwise seen as champions of an open
economy. It slammed the doors shut to
foreign investment and, to my mind, the
sector is still yet to fully recover from
that ban and the policy contortions
that have come over the years to allow
international brands and retailers to
play a more active role in the market.
Internal weaknesses compounded the
decline or exit of some businesses.
Nanz folded due to various operational
challenges and lack of adequate
experience. British retailer Littlewoods’
wholly-owned subsidiary pulled out due
to problems back home, and in 1998
sold the sole store to the Tata Group,
which eventually renamed it Westside.
Future Group, which
today has a large retail
and consumer brand
portfolio, launched
trousers under the
name Pantaloon in
1987, initially as a
distributed brand, and
then denimwear under
the brand name Bare.
Within a few years the
company also launched
exclusive stores by the
same names, to provide
focussed visibility to
the brands.
4. 13Retail Icons of India
Despite the early hiccups, India continued to attract
international players on account of the high growth
and changing social norms. Not only was there greater
purchasing power available amongst more Indian
consumers, there was a shift in consumer attitude from
saving to spending. Several brands, including fashion,
luxury and quick service formats, entered the market
through licensing, franchising, and joint ventures.
During this period the domestic retail market also drew
in more corporate houses, attracted by the apparently
abundant market opportunity for them to mine alone or to
act as a gateway for foreign companies interested in
India. Most were significant diversifications from their
existing businesses.
Tobacco, paperboards, agri-commodities and hospitality
conglomerate ITC ventured into retailing through Wills
Lifestyle and as well as its rural initiative e-Choupal
in 2000, followed by John Players and Choupal Sagar
respectively. Pantaloon Retail launched a partial
hypermarket format Big Bazaar in
2001 and went on to Food Bazaar
in 2002, Central in 2004, Home
Town and Ezone in 2006. Reliance
entered in 2006 with multiple stores
of Reliance Fresh being opened
simultaneously and over the next few
years the company expanded through
multiple formats such as Reliance
Mart, Reliance Digital, Reliance
Trendz, Reliance Footprint, Reliance
Wellness, Reliance Jewels to name a
few. Telecom major Bharti set up a
joint-venture with Wal-Mart at the
back end, while the Tata group tied
the knot with Woolworths and Tesco
in two separate businesses supplying
its retail stores, even as it expanded
its successful watches and jewellery
businesses, as well as Westside.
Even a retail operation like Fabindia,
born as an export surplus outlet of
a handicraft product business found
investors to back a rapid expansion spree, becoming more
of a corporate retailer than a front-end for producer
organisations and craftspeople.
Through the 1990s and beyond, the market remained
in ferment. In 1997 Subhiksha, a small modern retail
format for food and grocery was launched. Venture-funded
Subhiksha expanded rapidly and over the next decade grew
to 1,600 outlets. However, in 2009 the business closed
down owing to a severe cash crunch, amidst accusations of
criminal mismanagement and fraud.
New product areas emerged highlighting the pace of change
of lifestyles, cafes prominent among them. Café Coffee Day
opened its first store in 1998 in Bangalore and became the
largest organised coffee chain in India by far, albeit now
living under the shadow of the recent death of its founder.
Barista was also launched in 1999 as India’s Starbucks-
wannabe, found its footing, scaled up and lost its way,
going on to be sold to Tata Coffee and the Sterling Group,
who turned it over to the Italian coffee company Lavazza
in 2007, who also exited seven
years later. Its current owner, the
Amtex Group, is itself going through
financial troubles in some of its key
businesses.
In the last two decades, while some
retailers have gone out of business
due to unrealistic business plans,
mismanagement or lack of funds,
most have taken opportunities
to rationalise their operations
by shutting down unviable or
underperforming locations, aligning
businesses to market needs, assessing
their brand consistency across
various touch points, improving
organisational capabilities right down
to front-line staff, and focusing on
unit productivity.
It’s not just Indian retailers that have
faced trouble. Foreign brands have
had their own share of problems
Despite the early
hiccups, India continued
to attract international
players on account of
the high growth and
changing social norms.
Not only was there
greater purchasing
power available
amongst more Indian
consumers, there was
a shift in consumer
attitude from saving
to spending.
5. 14 Retail Icons of India
– some have overestimated the market, or their own
relevance to the Indian consumer, while others have had
misalignment with their Indian franchisees or joint-venture
partners. A number of foreign brands and retailers have
also churned partners, or exited the market outright, but
most remain committed and invested in the market for the
long-haul. The last few years have also seen the successful
launch and humongous growth of global leaders such as
Zara and H&M, even mass-market Chinese retailers like
Miniso, as well as the largest investment commitment made
by Ikea (about US$2 billion).
SHOWING ON A SCREEN NEAR YOU
The late-1990s also witnessed a
dotcom frenzy that led to a plethora
of travel sites, and a few product
sales businesses such as Fabmall,
Rediff and Indiamart.
However, the online market lacked
critical mass in the 1990s and
early-2000s. Despite apparent
advantages of the online business
model, success depended on internet
penetration (low!), the appearance
of value-propositions that were
meaningful to Indian consumers
(questionable), investments in
fulfilment infrastructure (lacking)
and the development of payment
infrastructure (regulation-bound).
Malls and shopping centres – the
new temples of retail – seemed to
be sucking up all of the consumer
traffic, in any case.
By the mid-2000s the business had
reached just about Rs 8-9 billion
(US$ 180-200 million), despite 25 million Indians
being online. Dotcoms became labelled dot-cons, with an
estimated 1,000 companies closing down. However, multiple
changes took place in the mid-2000s, among them being
the price disruption of the telecom market and explosion of
mobile connectivity, as well as a renewed funding appetite
among venture funds.
This laid the path for growing the second crop of
ecommerce in India. Billions of dollars of investment was
poured into creating India’s Amazon wannabes, the high
streets ran red by ecommerce-fuelled discounts, aggressive
advertising budgets (most promoting discounts) and
mergers/acquisitions pushed through by venture investors.
After more than a decade of the second coming, India’s
ecommerce business accounts for a market share of total
retail in the low single digits. India’s Amazon – if one can
call it that – is the Flipkart group, now owned by Walmart,
bought at an eyepopping $21 billion valuation and still
bleeding cash, and the runner-up is relentless Amazon that
continues its aggressive push to own what could be one of
the three largest markets in years to come. The Chinese
internet giants Tencent and Alibaba are also trying to hack
piece off the market, having fulfilling their aim of kicking
out Western competitors from their home market.
However, the wild card has just been played by the Reliance
Group – having moved from textiles to fibre to oil, the
group has made its move into telecom and data (didn’t
someone say, “data is the new oil”?). It has strategically
pushed handsets and cheap data plans into the hands of the
consumers and, according to the latest announcement on Jio
Fiber, will soon offer High Definition or 4K LED television
and a 4K set-top-box for free. The play is to grab as much
of the customer’s share of spend on products and services
(including entertainment) as possible.
LOOKING AHEAD
Possibly the biggest driver of modern
retail in the coming years will be the
shift in the demographic structure of
the country. The young consumers who
are joining the workforce now are a
distinctly different set from previous
generations. This is a generation that
has grown up in the liberalised economy
and has been exposed to innumerable
choices since their childhood. The most
important factor is that these consumers
are increasingly located outside the top
10 or 20 cities in the country, and are
becoming more accessible as both physical
and virtual access improves for them.
A large number of them may have
only occasionally, or perhaps never,
experienced modern retail first hand
while they were growing up, but they
have seen this upmarket environment
emerge before them and are not shy of spending within it,
even if it is only on select special occasions. Most of them
are handling mobile phones (even if it is their parents’)
while still in school and being socially active online even
on the go. Certainly most of them have hardly ever visited
tailors, growing from one set of ready-to-wear clothes to
another. It is this set of young consumers whose outlook
and habits will drive retailing very differently in terms of
product categories and services in the future.
There is another significant set of consumers whose number
is swelling annually: that of working women. As they add
to the discretionary household income available to spend,
they gain influence in purchase decisions, and with them
the entire household’s lifestyle also undergoes a shift.
There is a greater demand of time-saving solutions and
convenience products to make their lives easier. Modern
retail environments where their various needs can be taken
care of under one roof, and convenience pre-packaged
products are natural winners in this shift. Ready-to-wear
products for women, grooming, beauty and personal care,
Even a retail
operation like
Fabindia, born as
an export surplus
outlet of a handicraft
product business,
found investors
to back a rapid
expansion spree,
becoming more of
a corporate retailer
than a front-
end for producer
organisations and
craftspeople.
6. 15Retail Icons of India
women-oriented media products, processed foods and eating
out get a boost. Another important shift is that, due to
busier lifestyles, they are time-crunched and more likely
to rely on branded products and services that they can
trust. However, given the nascent stage of the market, these
brands could just as well be retailers’ own labels, if they are
managed well.
In terms of business, significantly greater efficiency needs
to be achieved, both at the front-end and in head office
and supply chain operations. Process and system-led
planning and execution needs to become the norm. With
India’s burgeoning population, people are treated as a
cheap resource: on the contrary, each extra person can be
expensive beyond just their salary cost to the organisation.
Each extra person adds some friction to decision making,
reducing the responsiveness of the business. Smart business
will begin to realise this, and look closely
at employee efficiency and effectiveness in
the context of the overall business, rather
than just in terms of individual costs.
Even as the retail business in India is far
from saturation, and fragmented growth
continues, the business will also undergo
consolidation simultaneously, as large scale
retail operations are enormously capital
intensive. Mergers will be a strategy that
will be explored to improve the viability of
many businesses in this sector.
Should you be tempted to think that,
squeezed between large corporates,
international retailers and ecommerce
giants, it’s “Game Over” for smaller
domestic retailers and brands, let me say that the India
retail story is not only not over yet, but continues to be
written and rewritten. As the market grows and matures,
retail businesses also need to differentiate themselves,
investing more in product selection or even product
development through private label growth to help them
stand out in the market. A one-size-fits-all strategy doesn’t
work in a country as diverse as India. For the size of
the market, we have surprisingly few brands, many of
them virtually indistinguishable from their competitors.
Development on this front, of indigenous brands and
product development capabilities, is an absolute must.
The good news is that already there is more talent available
than ever before. Most importantly this management pool
has experience of the retail sector not just in good times but
during (many) downturns as well.
Eventually, what is needed is a
mix that will be healthy for India’s
ecosystem at large for a long time
to come. This will not be delivered
by a blind transplantation of
international templates or a rapid-
fire expansion across the country,
nor by fearful protectionism or
regional parochialism. It will
only be achieved by the evolution
of market-appropriate business
models and a mature approach
that can be make the Indian
retailers robust enough to grow not
just domestically, but possibly even
globally over time.
In terms of business,
significantly greater
efficiency needs to be
achieved, both at the
front-end and in head
office and supply chain
operations. Process and
system-led planning
and execution needs to
become the norm.
About the Author: Devangshu Dutta, chief executive of management consulting firm Third Eyesight (http://thirdeyesight.in) and
managing partner of PVC Partners (http://pvcpartners.com), has been working with the retail sector for about 30 years. Devangshu
has been involved with businesses across a wide range of sectors, both offline and online. (Twitter: @devangshu)