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Introduction Retailing as a concept is not new in India. In fact, it Dates back to the period of hard-core traditional formats of retailing that prevailed in the form of Haats, Shandis, Painth, Weekly Bazaar and the famous kirana or Baniya ki Dukan.It is only during recent past that Indian retail sector is witnessing a Process of Change and is poised to undergo dynamic Transformation. RPG group forays into organized retailing with new and improved formats.India is now developing into a retail power where both organized and unorganized retail sector compete with each other.
the Indian retail business employs nearly 21 million People, which is around 7% of total employment.The Evolution of Indian Retail Industry- For Indian retailing things started to change slowly in the 1980s.Textiles sector like Bombay Dyeing, Raymond's, S Kumar's and Grasim was the first to see the emergence of retail chains.
Later on,Titan maker of premium watches,successfully created on organized retailing concept in India by establishing a series of Elegant Showrooms.
Although,the co-operative stores like Super Bazar,Kendriya Bhandar and CSD were already established by that time.
For long,these remained the only organized retailers,but the later half of the 1990s saw a fresh wave of entrants in the retailing business.This time around it was not the manufacturer looking for an alternative sales channel.thes were pure retailers with no serious plans of getting into manufacturing.These entrants were in various fields like-Food World,Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music;Crossword and Fountainhead in Books. The Traditional RetailFormats- Indian retail sector is pre-dominantly controlled by traditional and un organized formats of retailing. These formats have emerged and developed with the growth of population in the country in rural and semi urban areas, the haats/weakly bazaars exist since long time. The traditional "kirana "or "Baniya ki Dukan" still enjoy the leadership and commanding position in retail trade. In smaller towns and urban areas we may see the power of small family run independent 'mom and pop' store offering a wide range of merchandise mix. These store formats are traditional and do not enjoy professionalism. A large number of these stores are family business involving more than one generation. These retailers have developed a rapport and goodwill among customers and popularly known as" Dukan Wala bhaiya "
Mostly these stores are managed by family members and in some cases even involve the services of one-two hired workers which depends upon the turnover. Traditional distribution channel of above retailing sector includes following factors-
Fig1-Distribution channel
Organized formats of retailing-
The last decade has witnessed dynamism in Indian retail sectors.Various urben ares have been the centrer of attraction wit emergence of different kinds of organized retail formats gaining momentum. It is largely due to rising Income , increase purchasing power credit facilities, changing patter of consumer behavior, increased consumer awareness etc.Although the share of organized retailing is mere 3% of the total retail till 2004,and it has expected to be 9% till 2010.
Retailing has emerged as one of the most important sector of Indian economy since 1990s.A large number of retail model retail formats have come in forceoffering a wide spectrum of merchandise and services.The professional orientation and incoerporation of various technology-enabled softwares has offered these retailers better customer relationship management, merchandise o ffering, store atmostphere and inventory managenmt etc.
Various new and improved formats of Retailing like departmental stors, supermarket, hypermarket, Discount stores, Convienent stores and even up-market speciality stores are no longer a dream.
We have seen the mushrooming growth and proliferation of these formats of retailing in various metro cities of India
Category wise major retailers:
| Category | International Retailers | Indian Retaileres | | Food & Beverages | MC �Donald, Dominos, Pizza-hut
Pizza-Corner, TGIF, Ruby Tuesday, Subway, Baskin Robbins | Nirulas, Haldiram, Barista, Caf� Coffee Day, Sagar ratna, Wimpy, MTR, Rameshwar's | | Apparel & sporting goods | Benetton, Lee Cooper , Nike, Levis, Reebok, Marks& Spencer, Lacoste | Raymond's, Woodland, Liberty, Action Shoes, Pantaloons, S. Kumar, Shopper Stop, Life Style | | Durables | Sony, Philips, LG, Samsung, Electrolux, Nokia, | Videocon, BPL, Singer, Onida, | | Grocery | Metro Cash&Carry, Shoprite holdings | Food WMD, Nilgirinanz, Subhikha | | Luxury | LVMH, Swatch, Esprit, Bulgari, Cartier | Tanishq, Titan, DTC |
Retailing Formats in India
Some of the prevalent relating formats in India include- - Malls - Most malls gives floor space out to individual shops on lease, and these are enticed by the economies resulting from the sharing of cost. India's largest shopping arcade Spencer Plaza (600,000-sq-ft) in Chennai is an example. In malls like these, the combined brand pull of all outlets is used to create a pull for the mall.
- Branded Stores � Exclusive showrooms run by premium brands have been the catalyst in pushing up the Indian retail scenario. This concept is now being used to introduce organized retailing to the second rung towns. Madure Garments has started setting up exclusive outlets in cities like Trichy and Thanjavur.
- Departmental Stores � Departmental stores are expected to take over the apparel business from exclusive brand showrooms, for example K Raheja's Shoppers Stop.
- Specialty Stores � These types of stores generally concern on a specific area of market as chain such as Kids Kemp and Mumbai based book retailer Crossword has gain popularity in their segments.
Recent Trends in Retailing
Retailing in India is at a nascent stage of is evolution, but within a small period of time certain trends are clearly emerging which are in line with the global experiences.
Experimentation with Formats- Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out; the old ones tweaked around or just discarded. Some of these are
| Retailer | Current Format | New Formats. Experimenting With | | Shopper's Stop | Department store | Quasi-mall | | Ebony | Department store | Quasi-mall, smaller outlets, adding food retail | | Crossword | Large book store | Corner shops | | Pyramid | Department store | Quasi-mall, food retail | | Pantaloon | Own brand store | Hypermarket | | Subhiksha | Supermarket | Considering moving to self service | | Vitan | Supermarket | Suburban discount store | | Food world | Food supermarket | Hypermarket, Food world express | | Globus | Department store | Small fashion stores | | Bombay Bazaar | | Aggregation of Kiranas | | Food mart | | Aggregation of Kiranas | | Metro | | Cash and carry | | S Kumar's | | Discount store |
Store Design- The biggest challenge for organized retailing is to create an environment that pulls in people and makes them spend more time shopping and also increases the amount of impulse shopping. Organized retailers bring professional designers while developing new property. So many retail chains like Music World, Barista, Pyramid and Globus are laying major emphasis &investing heavily in store design.
>Emergence of Discount Stores- Discount store have finally arrived in India and they are expected to spearhead the revolution in organized retailing. The discount store has advantages of price, assortment, dominance and quality assurance and has ability to quick build scale and pass on the benefits.
Unorganized Retailing is Getting Organized-To meet the challenges of organized retailing that is luring customers away from the unorganized sector, the unorganized sector is getting organized.25 store in Delhi under the banner of provision mart are joining hands to combine monthly buying. Bombay Bazaar and Food mart have also been formed which are aggregations of Kiranas. So many Malls, Large Cineplex's and big stores are opened in Delhi.
etailing has been considered as a 'sunrise' industry. The Indian retail sector is undergoing through a transition phase. It is the biggest contributor to the Indian GDP. The traditional formats of retailing are now in a dominant position with more than 98%share. But due to economic development, changing patterns of buying behavior, infrastructure development etc modern formats of retailing are also evolving. The successful evaluation of challenges is necessary for formulating retail strategy. Retailers can overcome of retail like shopping malls/multiplex etc. It will fulfill the shopping, entertainment& dining needs of customers. |
