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Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. Retail has been one of the largest growing sectors in India over the past few years. Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular. Organized retail in India is expected to grow at a healthy rate from $18billion in 2008; Retail is usually classified by the type of products as follows: - Food products - Soft goods: clothing, apparel and other fabrics - Hard goods (hard-line retailers): appliances, electronics, furniture, sporting goods, etc. It is expected to touch $ 73billion by 2013 and $170 billion by 2018. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the service sector are going to be the key factors in the growth of the organized retail sector in India.
1.1) Overview Of the world Market:1.2) Overview Of The Indian Market:Purchasing power of Indian urban consumer is growing and branded merchandise in categories like apparels, cosmetic, shoes, watches, beverages, food and even jewellery, are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer. Indian Retailers need to advantage of this growth and aiming to grow, diversify and introduce new formats have to pay more attention to the brand building process. The Emphasis is on retail as brand rather than retailers selling brands. Indian Retailers must come to recognize the value of building their own stores as brands to reinforce their marketing positioning, to communicate quality as well as value for money.
Retailing Format in India:1) Mall: - The largest form of organized retailing today located mainly in metro cities, in proximity to urban outskirts .ranges from 60,000 sq.ft. to 7,00,000 sq.ft and above. They lend an ideal shopping experience with an amalgamation of product, service, and entertainment, all under a common roof. For example: pantaloon, pyramid.
2) Specialty Store:-
For Example: - Lilliput for small kids, Mumbai books retailer crossword
etc. 3) Discount Store: - Tend to offer a wide array of products and services, but they compete mainly on price offers extensive price assortment of merchandise at affordable and cut rate prices. Here normally retailers sell less fashion oriented brands.
4) Variety Stores: - These offer extremely low cost goods, with limited selection. Demographic: - Retailers that aim at one particular segment. Mom- And Pop:-It is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These store are seen in local community often are family run business. 5) General Store: - A rural Store that supplies the main needs for the local community.
Value Proposition Rapidly and cost-effectively introduce a new product or revive an under-marketed product
Lower prices than other retailers and lower overhead expenses due to the smaller size of the store
No human efforts required; vending machines are beneficial for low-cost consumables
systems such as the Internet and other computer networks Multi-level Marketing Products and company are marketed directly to consumers and potential business partners by means of relationship referrals and word-of-mouth marketing
2011
Continued to growth expected to grow retail market to $73 billion to $130 billion
2008
The Indian Retail Boom is at its peak and this phase has been termed the High Retail Gold Rush
2006-07
Maintaining Its 1 position as the market with the most opportunity for retail Growth. Indias retail market grew to $330.00 billion.
2005-06
Retail Boom: - The beginning of the retail boom, India is also ranked as the 1 market for global retailers to enter according to global retail development indices.
2003-04
Growth: - Standing at $230.00billion, Indias retail market enters the growth phase ,characterised by the entry of new domestic and international participants and
1995
Projected growth for Indian retail by 2015 Growth Drivers: Risk and market attractiveness of Indian retail are moderate. Increased spending power and disposable incomes are expected to penetrate the retail sector. Expectant relaxation of FDI norms beyond single brand retailers. Multiple investment routes in retail to international retailers: via master or regional franchisees, cash and carry wholesale trading, licensing agreements with national retailers and setting up a manufacturing base in India allowing sales in India as well as 100.0% foreign equity.
India is believed to have an average age of 24 years for its population as against 36 years for the USA and 30 years for China. A younger population tends to have higher aspirations and spends more as it enters the earning phase. Also, nuclearisation of families has led to enhanced demand. 2) Growing disposable income
More Indian households are getting added to the consuming class with the growth in income levels. Also, with declining interest rates, the aversion of domestic consumers to taking loans is also fast disappearing. 3) Globalization:growing media penetration is leading to a convergence of aspirations of various classes of consumers, bridging the rural-urban divide. The modern consumer cannot be satisfied by any product or service that is lesser in quality than the best offered in any other place on the globe.
Tata Group:-Established in 1998, Trent- one of the subsidiaries of Tata groupoperates Westside, a lifestyle retail chain and star India Bazaar- a hypermarket with a large assortment of products at the lowest prices. In 2005 It acquired landmark, Indias largest book and music retailer. Another subsidiary, Titan Industries, owns brands like Titan, the watch of India has 200 exclusive outlets the country and tanishq, the jewellery brand, has 87 exclusive outlets.
RPG Group:- One of the first Entrants in to organised Food & Grocery retail with
food world stores in 1996 and then formed as alliance with Dairy farm international and launched health& glow(pharmacy& beauty care) outlets.
Piramal Group:- In September 1999,piramal enterprises announced their arrival into retail with the launch of three retail concepts; Indias first true shopping mall of international standards, called crossroads, a lifestyle department store named piramyd Megastore; and a family entertainment centre known as Jammin. Subhiksha: - Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom, discount retail chain. ICICI venture capital holds 24% in the equity capital of Subhiksha. New but potential BIG players. Bharti-walmart: - Their plans include US$7 Billion investment in creating retail network in the country including 100 hypermarkets and several hundred small stores. They have signed a 50:5 percent joint venture agreement with Wal-Mart. Reliance:- Indias most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000 cr. To set up multiple formats. They are already more than 300 reliance fresh stores and the first reliance mart hyper mart has opened in Ahmedabad. The next one is open at Jamnagar, followed by marts in Delhi, Hyderabad, pune and Ludhiana.