The document discusses the retail industry in India, comparing the organized and unorganized sectors. It notes that the organized sector makes up only 3% of the market currently but is growing at 35% annually compared to 6% for the unorganized sector. Some of the large players in the Indian organized retail sector are discussed, along with trends in the growing Indian retail industry and consumer base. Recruitment processes and the role of consultants in hiring for organized retail firms in India are also summarized.

1. Industry Outlook - Retail

2. Organized Vs Unorganized Retail Sector Organized Retail Sector Unorganized Retail Sector

3. Organized Vs Unorganized Retail Sector Factor Organized Retail Sector Unorganized Retail Sector Definition Modern form of retailing Traditional form of retailing Examples Hypermarket, Retail chain etc. Mom n Pop stores, hand cart, pavement vendors etc Market Share 3% 97% Market Growth 35% 6% Challenges Poor supply chain management, aggressive expansion etc. Use of labour intensive technology, lack of government support etc.

5. Retail Trade – India, USA, China Country Trade ($b) Employment Shops (mn) Organized sector India 180-394 7 1.2 2-3 China 360 12 2.7 20 UAS 3800 12.6-16 15.3 80

6. Key Growth Drivers Economic Growth Demographics Urbanization Credit availability

8. Different Formats

9. Big Shots of the Industry

10. Pantaloon Retail Raheja Group Reliance Retail Tata Group RPG Group Landmark Group Piramal Group Bharti - Walmart A V Birla Group

11. Pantaloon Retail Headquartered in Mumbai 450 stores across the country employing more than 18,000 people. All India space- 5 mn sq.ft, expecting to reach 30 mn by 2010. Various segment including food & grocery, home solutions, consumer electronics, Health & Beauty product etc. Recent Innovations include e-commerce ‘Hybrid Format of ‘Small shops’

12. Raheja Group First Departmental store in India , SHOPPER’S STOP Member of IGDS 7,52,000 sq.ft. retail space with turnover of 6.75 millions Crossword, Mothercare, Home stop etc. MOU with Home retail group of UK Plan to establish network of 55 hypermarkets across the country with sales turnover of US$ 100 million by2010.

13. Reliance Retail More than 300 Reliance fresh store and first Reliance Mart hypermarket in Ahmedabed Expansion in two tier cities like Vijaywada, Pune, Ludhiana etc Investment of Rs.30,000 cr to set up new formats of retail , expecting sales of Rs.90,000 cr by 2010

14. Tata Retail Group Established in 1998 Trent- subsidies of Tata group operates Westside and Star India Bazaar, Croma Plans to pen more than 27 stores across its retail formats adding 1.5 mn sq.ft. of space in the next 12 DLF malls

15. A V Birla Group Strong presence in apparel- Madura Garments Owned Brands like Louis Phillipe, Van Heusen, Allen Solly, Peter England Investment plan – Rs.8000-9000 cr in the first 3 years till 2010 “ MORE” range of 15 supermarkets open at Nashik, Pune & other two tier cities

16. Merger & Acquisition Year Acquired/ JV Company / Target Acquirer Nature of Business Stake Consideration (US$ million) 2005 Liberty shoes Future Group Retail (footwear) 51% 3 2005 Indus- league clothing Future Group Retail Clothing 68% 5 2005 Odyssey India Deccan Chronicle holdings Leisure Retail chain (books, music, toys) 100% 14 2005 Landmark Tata Trent Books, Music, Accessories 74% 24 2006 Bistro hospitality TGI Friday’s Restaurant 25% N/A 2006 Indus League clothing Etam Group, France Lingerie & women’s wear retailing 50% 8

17. Current Potential & Prospect of Indian Retail Sector

18. Growth prospective Hurdles in growth phenomenon Supportive measures by Government Current market meltdown & its impact Overall scenario about Indian retail industry

19. Changing face of Indian Consumerism

20. Important Trends The whole concept of shopping ……change Heavy pockets … The Mall Mania… Mall ….. Shopping + Entertainment

21. Map of India’s Income class 1994 – 1995 1999 – 2000 2007 – 2008 Rich (Annual income >US$ 4700) Benefit Maximize: Owns CAR, PC 1 mn household 3 mn HH 6 mn HH Consuming (US$ 1000- 4700) Cost-benefit optimizer: have bulk of branded consumer goods, 70% of 2-wheelers, refrigerators, washing machine 29 mn HH 55 mn HH 75 mn HH Climbers (US$ 500-1000) Cash-constrained benefit seekers: have at least one major durable(mixer, sewing machine, television) 48 mn HH 66 mn HH 78 mn HH

22. Source: Ernst & Young Aspirants (US$ 350-500) New entrants into consumption: have bicycle, radio, fans 48 mn HH 32 mn HH 33 mn HH Destitute (Less than US$ 350) Hand to mouth existence: Not buying 35 mn HH 24 mn HH 17 mn HH

23. Consumer Dynamics Youngest population on the globe Growth pace of the Indian economy 97% retail market is untouched by organized retailers Food & Grocery …………………. 55% Consumption is moving out of the home Indian consumers has grown richer…

24. The process of recruitment followed in India in organized retail industry For Junior level Junior level , required in a mass number. -> go ahead with paper ads for walk-ins Requirement is less for junior level -> go ahead with consultants and reference recruitments Search for retail positions

25. For Junior level The recruitment process starts with an interview taken by -> department managers -> followed by store manager -> HR -> team leaders.

26. What is the process of recruitment followed in India in organized retail industry? For Middle level Middle level, then -> consultants -> Job - portals -> news paper ads of walk-ins.

27. For Middle level The recruitment process starts with first short listing by HR then interview is conducted with -> department head -> Store Manager -> Zonal Manager -> HR

28. Recession- hit- recruitment strategies Optimizing staff potential Adopt a scientific method in their recruitment policies, Laying more emphasis on quality than quantity. Aim to hire people in large numbers to shortlist the ones that are 'best available' geographically. The PAC test to decide from “where to hire” and “where to locate the firm

29. Why does Company hire Placement Consultants To help them to find the right candidate to join their organization. Job Seekers contact Recruitment firms to help them identify and then apply for the right job.

30. The role of recruitment agents and consultants vis-à-vis employment with organized retail in India. Who are Placement Consultants in the Job & Recruitment Industry -> an entity that works towards reducing clutter -> streamlining the manpower requirements of Companies, big and small. -> These firms serve as middlemen and help organizations and job seekers to find each other! COMPANY APPLICANTS CONSULATNATS

31. How It Works: Consultants work for a number of different Companies, small and large. These head hunter groups receive details about the job vacancy such as job responsibilities, desired experience, remuneration etc. Next, Consultants go through their present database of job seekers registered with them. This database of aspiring candidates is a Placement Consultant's resource built over a period of time. Job seekers contact recruitment firms either through phone, email or walk ins and register their Resumes with them. Next, the wait begins - candidates hope to be informed of good openings and prepare themselves for interviews.

32. How to apply for a job through Placement Consultants: Identifying a Placement Firm Contacting them Following Up Jobs and Career Websites

33. Positions & Remunerations Serial no. Particulars Salary 1 Technical Engineer 20000 2 Accounts Manager 15000 3 Accounts Assistance (Back Office, HR, Recovery, Bills) 10000 4 Sales & Marketing Manager 25000 5 Sales & Marketing Executive 20000 6 Front Desk Customer Care Executive 8000 7 Technical Supervisors (MST) 15000 8 Bouncers / Supervisors 12000 9 Store Manager 35000 10 Merchandise Manager 25000

35. Strengths weakness Technology Incentive Super Market Stocks Rising Disposable Income Increase in number of people in earner category Low conversion level Customer Loyalty Underdeveloped supply chain Lack of adequate utilities opportunity threat Large consumer market Growth of Organized sector Rural Retailing Potential for Investment High market share of unorganized market Shopping Culture Poor inventory turns & stock availability measures Inflation