PROJECT ON RETAIL MARKETING IN INDIA

NAME : PRITI WAGHMARE ROLL NO: 51 MCOM -1

PROJECT ON STRATEGIC MANAGEMENT SUBMITTED TO PROF:_____________________

DECLARATION
I HEREBY DECLARE THAT THE PORJECT TITLED RECRUITMENT POLICIES IS AN ORIGINAL WORK PREPARED BY ME AND IS BEING SUBMITTED TO UNIVERSITY OF MUMBAI IN PARTIAL FULFILLMENT OF MCOM-1{ACCOUNTANCY} DEGREE FOR THE ACADEMIC YEAR 2012-2013.

TO THE BEST OF MY KNOWLEDGE THIS HAS NOT BEEN SUBMITTED EARLIER TO THE UNIVERSITY OF MUMBAI OR ANY OTHER AFFILIATED COLLEGE FOR THE FULFILLMENT OF MCOM-1{ACCOUNTANCY} DEGREE.

DATE: PLACE:

NAME: SIGNATURE:

ACKNOWLEDGEMENT
I MISS. PRITI WAGHMARESTUDENT OF VIVA COLLEGE PURSUING MY MCOM-1{ACCOUNTANCY} WOULD LIKE TO PAY THE CREDITS, FOR ALL THOSE WHO HELPED ME IN MAKING OF THE PROJECT.

THE FIRST IN ACCOMPLISHMENT OF THIS PROJECT IS OUR PRINCIPAL DR.R.D.BHAGAT, VICE-PRINCIPAL PROF.PRAJAKTA PARANJAPE, COURSE CO-ORDINATOR PROF.NILIMA BHAGWAT AND PROF_________________ & TEACHING AND NON TEACHING STAFF OF VIVA COLLEGE I WOULD ALSO LIKE TO THANK ALL MY COLLEGE FRIENDS THOSE WHO INFLUENCED MY PROJECT IN ORDER TO ACHIEVE THE DESIRED RESULT CORRECTLY.

Project Report On RETAIL MARKETING IN INDIA

In The subject Advanced Cost Accounting

STRATEGIC MANAGEMENT
Submitted To University Of Mumbai For SEMESTER- I OF M.COM (Part -I)

Submitted By Priti s waghmare

Roll No.51

Project Guide
Academic Year

2o12 - 2013 VIVA COLLEGE OF ARTS ,COMMERCE AND SCIENCE VIRAR(WEST) 401303

VIVA COLLEGE OF ARTS ,COMMERECE AND SCIENCE

,

Internal Assessment: Project 40 Marks Name Of The Student Class Division Roll Number. First Name : PRITI M Com Part - I

51

Fathers Name :SHASHIKANT Surname Name : WAGHMARE

Subject:

STRATEGIC MANAGEMENT

Topic for the Project: RETAIL MARKETING IN INDIA Marks Awarded DOCUMENTATION Internal Examiner (Out of 10 Marks ) External Examiner (out of 10 Marks) Signature

Presentation (out of 10 Marks ) Viva and Interaction (out of 10 marks ) Total Marks (out of 40)

INDEX

Definition of Retail Marketing in india : SR.NO I TOPIC CHAPTER I : DEFINATION OF RETAIL MARKETING IN IN INDIA INTRODUION OF RETAIL MARKETING IN IN INDIA RETAIL MARKET TYPES ORGNIZED RETAIL FPRMATS IN INDIA RETAILING THE SURRISE INDUSTRY INTRODUION OVERVIEW OF GLOBAL RETAIL INDUSTRY SCOPE OF RETAIL MARKETING IN IN INDIA ADVANTAGES & DISADVANTAGES REATAING IN INDIA SCOPE RETAIL SECTOR OBJECTIVE THE RETAIL SCENE

II

CHAPTER II : THE EFFICTIVE ROLE OF RETAIL MARKETING IN THE MODERN COMMERCIAL AND GARMENTS ENTERPRICES IN INDIA

III

IV V

CHAPTER III : THE RETAIL MARKETING &ITS EMERGING TRENDS IN PERSPECTIVE IN INDIA INTRODUTION TO RETAIL INDUSTRY RETAIL MARKETING NATURE WORK CHAPTER IV: RETAIL MARKETING CHAPTER V: Conclusion

Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. It is responsible for matching individual demands of the consumer with supplies of all the manufacturers. The word retail is derived from the French work retailer, meaning to cut a piece off or to break bulk. Retail marketing is comprised of the activities related to selling products directly to consumers through channels such as stores, malls, kiosks, vending machines or other fixed locations, according to the Free Dictionary. In contrast, direct marketing to consumers attempts to complete a sale through phone, mail or website sales. The successful implementation of the components of the traditional marketing mix (product, place, price and promotion) is essential for success in retail marketing. The savvy marketer must have a thorough understanding of his or her customers to answer the questions that are implied by each of the 4 P's.

<!->Product
A retail business typically opens within a specific business category, such as men's clothes. The retailer must decide questions relating to price range, fashion and selection. All of these issues are answered by the assumptions that the retailer makes on the products most likely to attract his targeted customer base. The ability to match products and customers is as much art as science.
<!->Place

<!->Factors such as whether the store location is near the targeted customers, offers easy access and exit, and is highly visible on a well-travelled street are vitally important in the selection of a store location (place). The perceived quality of the physical structure is also important. Customers expect expensive items to be sold in an upscale environment. Low-cost items might fare better in a location where consumers are accustomed to purchasing those bargain items. Retail stores can range from large national chains such as Sears or Wal-Mart to a small, locallyowned business, such as a bakery. These retailers have chosen retail locations they believe match their customer's expectations, are highly visible, and are close to the targeted customer group.

<!>Price
Pricing is a complex process that combines finance with human psychology. If consumers believe that a product is priced too high, they may refuse to buy. If a product seems to be priced too low, they may suspect the product quality. Additionally, a retailer typically sets price expectations as she develops her brand. If the brand is positioned as discount, the merchant must stay consistent with pricing decisions or risk customer confusion about the store's brand identity.

<!>Promotion

Retail marketing is dependent on in-store traffic. Marketers must make effective use of promotions to ensure a steady stream of existing and new customers visit a retail stores. The retailer's selection of promotional channels is dictated by many factors including local competitive environment, profit margin on sales and total volume of sales. Each dollar spent in promotions must result in additional sales, or profit margins shrink to dangerous levels. Promotional media can include television, radio, print, direct mail and outdoor advertisin

Retail Market Introdution :

1. The market

for the sale of goods or services to consumers rather than producers or intermediaries. For example, a retail clothing store sells to people who will (most likely) wear the clothes. It does not include the sale of the clothes to other stores who will resell them. The retail market contrasts with the wholesale market.
2. The market

for the sale of securities to individual investors rather than investors or broker-

dealers. 3A market composed of price quotes for a security made by a broker or a dealer to an individual investor. A quote at the retail level entails a higher ask and a lower bid than a quote on the same security for another dealer.

Retail Marketing and types

Retail Marketing includes all the activities involved in selling goods or services directly to final consumes for personal, non-business use. Any organization selling to final consumers -- whether a manufacturer, wholesaler, or retailer is doing retailing. It does not matter how the goods or services are sold (by Person, Mail, Telephone, Vending Machine, or Internet) or where they are sold (in a store, on the street, or in the consumers home). There are many approaches to understanding and defining retail marketing; most emphasize retail marketing as the business activity of selling goods or services to the final consumer, but what we emphasized upon is defined as follows: Any business that directs its marketing efforts towards satisfying the final consumer based upon the organization of selling goods and services as a means of distribution The concept assumed within this definition is quite important. The final consumer within the distribution chain is a key concept here as retailers are at the end of the chain and are involved in a direct interface with the consumer.

Types OF Retail Marketing in india:

Store Retailing
Store retailing provides consumers to shop for goods and services in a wide variety of stores and it also help the Consumers to get all the needed goods and services from one shop only. The different types of store retailing are given below:

Specialty Stores
These stores focus on leisure tastes of different individuals. They have a narrow product line with deep assortment such as apparel stores, sporting goods stores, furniture stores, florists and bookstores. These stores are usually expensive and satisfy the needs of selected consumers who have liking or preference for exclusive things.

Departmental Store
These stores are usually built in large area and keep variety of goods under one shed. It is usually divided into different sections like clothing, kids section, home furnishings, electronic appliances and other household goods. In a departmental store a consumer can buy variety of goods under one shed.

Supermarket
These stores are relatively large, low cost, low margin, high volume, self service operations designed to serve total needs for food, laundry and household maintenance products. Supermarkets earn an operating profit of only 1 percent on sales and 10percent on net worth.

Convenience Stores
These are relatively small stores located near residential area, open for long hours seven days a week, and carrying a limited line of high turnover convenience products at slightly higher prices than departmental stores. Many such stores also have added takeout sandwiches, coffee and pastries.

Off - Price Retailer

These stores sell goods at low price with lower margins & higher volumes. These stores sell goods with deteriorated quality. The defects are normally minor. This target at the persons

belonging to the lower income group, though some have a collection of imported goods aimed to target the younger generation. The company owned showroom selling the seconds products is a typical example of off - price retailer.

Discount Store
These stores sell standard merchandise at lower prices by accepting lower margins and selling higher volumes. The use of occasional discounts or specials does not make a discount store. A true discount store regularly sells its merchandise at lower prices, offering mostly national brands, not inferior goods. In recent years, many discount retailers have traded up. They have improved decor, added new lines and services, and opened suburban branchesall of which has led to higher costs and prices and as some department stores have cut their prices to compete with discounters. Not only that, discount stores have moved beyond general merchandise into specialty merchandise stores, such as discount sporting goods stores, electronics stores, and bookstores.

Catalog Showroom
Catalog showrooms generally sell a broad selection of high-markup, fast-moving, brand-name goods at discount prices. These include jewelry, power tools, cameras, luggage small appliances, toys, and sporting goods. Catalog showrooms make their money by cutting costs and margins to provide low prices that will attract a higher volume of sales. Catalog showrooms have been struggling in recent years to hold their share of the retail market.

Organized Retail Formats in India

Each of the retail stars has identified and settled into a feasible and sustainable business model of its own.

Shoppers' Stop - Department store format Westside - Emulated the Marks & Spencer model of 100 per cent private label, very good value for money merchandise for the entire family Giant and Big Bazaar - Hypermarket/cash & carry store Food World and Nigeria Supermarket format Pantaloons and The Home Store - Specialty retailing Tanishq has very successfully pioneered a very high quality organized retail business in fine jewelers. Structure of the retailing industry according to ownership patterns:

An unaffiliated or independent retailer

A chain retailer or corporate retail chain A franchise system A Leased Department (LD) Vertical Marketing System (VMS)

RETAILING THE SUNRISE INDUSTRY

Introduction
The word retail means to sell or be sold directly to individuals. Retail is Indias largest industry, and arguably the one with the most impact on the population. It is the countrys largest source of employment after agriculture, has the deepest penetration to rural India, and generates more than 10percent of Indias GDP. However, retailing in India has so far, been mostly in the hand of small disorganized entrepreneurs. It is also Indias least evolved industries. In fact, it is not even considered a real industry. The industry suffers from lack of management talent, poor access to capital, unfavorable regulation and denial of access to best practices. The Indian retail industry is only now beginning to evolve in line with the transformation that has swept other large economies. Fifty years of restricting the consumer goods industry, a national mindset which favored denial over indulgence, and a fractured supply chain for agricultural products have all contributed to prevent the development of modern tenants based on scale advancements and consumer preferences.

India has some 12 million retail outlets, but many of these act merely as subsistence providers for their owners and survive on a cost structure where labor and land is assumed to be free and taxes nil. Compare this with the global retail industry, which is one of the worlds largest organized employers, is at the cutting edge of technology, and which leverages scale and scope to offer value-added services to its customers. However, only recently has there been an awakening in this sector, with more organized retailers starting to make an impact. The liberalization of the consumer goods industry, initiated in the mid-80s and accelerated through the 90s has begun to impact the structure and conduct of the retail industry. Backed by changing consumer trends and metrics, liberalization in mindsets driven by media, new opportunities and increasing wealth, retailing in India, presents a vast opportunity for a variety of businesses - real estate, store design & operations, visual merchandising logistics and communications, B2C service providers, and FMCG companies who can add to their offers by partnering this revolution.

2 Overview of the Global Retail Industry

Retail: world largest industry

Retail, with total sales of $ 6.6 trillion, is the worlds largest private industry ahead of financial industries $ 5.1 trillion. It is also home to a number of the worlds largest enterprises. Over 50 of the Fortune 500 companies, and around 25 of the Asian top 500 companies, are retailers. The industry accounts for over 8 percent of the GDP in western economies. Retail: Largest private industry in the world economy A Study by Mc Kinsey states that organized retail accounts for just around 2 percent (out of which modern retail formats account for 7 percent of trade) presently is set to grow at exponential exceeding 35 percent. Fitch estimates the current share of organized retail to grow from 2percent presently to around 15 to 20 percent by 2010. Table 1: US $ billion 130 12 7 5 1.7 3.6 Existing Companies in the organized sector Food Bazaar Subhishka. (Pantaloon) Food World

Retail Consumption areas Food Retailing Clothing & Apparel Jewelry, Watches Home Furnishing Foot wear Beauty Care

Pantaloon Westside, Shoppers Stop Tanishq, Titan, Gold Bazaar (Pantaloon) Home Store, Arcus (Pantaloon) Bata, Woodland VLCC, Health & Glow

Source: economic times industry report Traditionally, most retailers have had very localized operations. This localized nature of the industry is changing as retailers face low rates of growth and threatened profitability at home. New geographies will help them sustain top-line growth as well as permit global sourcing. Profits in retail have steadily been rising and have generated 18 percent shareholder returns between 1994 and 1999. Significantly, retail is also one of the worlds largest employers, accounting for instance 16 percent of the US workforce, Poland 12 percent, China 8percent, India 10 percent and Brazil 6percent. Factors such as scale in sourcing, merchandising, operational effectiveness and ambience have driven the spread of organized retail.

THE RETAIL MARKETING REVOLUTION

By 2010, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail Marketing will go through a tremendous change in India this millennium. It will change India's cities, its people, and its households. The Indian consumer is reportedly the largest spender in Singapore and London. It is, therefore, strange that there have, so far, been few efforts to present the product in the right kind of environment in India. Indeed, the right shopping experience does

induce Indian consumers to spend more. This is evident from the experiences of retail-outlets like Shoppers' Stop, Music World, Food World, Crosswords, The Home Store, Ebony, Bigjos, Saboos, Standard, Vijay Store and Janaki Das & Sons, Westside etc. However, the development of organized retail is dependent on the efforts of several agencies and institutions. The first among these is the government. In a country as big as India and with as many states as ours, it is imperative that the Central government and all state governments bring in Value Added Taxation or a unified taxation system to ensure that the tax-regimes are the same across the country. The laws governing retail real estate should also be looked into, so that it is possible to develop retail-estate beyond the city-limits.

Scope of Indian retail market:

Retail Marketing or Retailing :

Selling of merchandise directly to the consumer. Retailing began several thousand years ago with peddlers hawking their wares at the earliest marketplaces. It is extremely competitive, and the failure rate of retail establishments is relatively high. Price is the most important arena of competition, but other factors include convenience of location, selection and display of merchandise, attractiveness of the establishment, and reputation. The diversity of retailing is evident in the many forms it now takes, including vending machines, door-to-door and telephone sales, direct-mail marketing, the Internet, discount houses, specialty stores, department stores, supermarkets, and consumer cooperatives The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The India retail industry contributes 10% of the countries GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005. The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market. The growth of scope in the Indian retail market is mainly due to the change in the consumers behavior. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable.

Avantages and Disadvantages FDI in Retail market:

Three Advantages of FDI in Retail -

1. More investments in the end to end supply chain :

-

For the Foreign Multi Brand retailers, entering India later would be a significant disadvantage and they would try and introduce a lot of innovations hitherto not introduced. For one, they would invest heavily into end-to-end supply chains including world class cold storage facilities.

2. Low spillage and wastage:

- In India, the supply chain is considered highly inneffient due to the huge wastage during the transportation. The global world class retailers would introduce quality standards that are second to none and would lead to more farm produce reaching the end consumer in a consumable condition. This would improve productivity of the entire system.

3. More options for the consumer :

The consumer would get compelling options for doing their shopping which would lead to a fulfilling consumer experience.

The primary benefit of retail marketing is to bring awareness to the consumer that the product exists to fill a need or a want that the consumer has. For example, if a retail marketing campaign is promoting a product that gets rid of nail fungus, someone with nail fungus now knows that an over-the-counter product is available to help resolve their nail fungus problem. In return, this marketing helps to boost sales for the nail fungus remover manufacturer and the retailer selling the product on its store shelves. In essence, potential customers of a product have to know that the product exists for the sales of the product to be successful. Retail marketing is the bridge between a product and its potential customer target market.

4.Boosts Profits
o

Retail marketing also has the advantage of boosting business profits. Whether it's announcing the launch of a new product or offering a special sale or coupon on an existing product, this type of retail marketing can attract larger crowds to the retail location. The more potential customers who walk through the door provides a potential for higher sales, and a larger sales volume brings increased profitability to the retail establishment.

Creates a Competitive Environment

Retail marketing creates a healthy competitive environment between retailers. This benefits consumers because it helps to keep their costs down when purchasing products. Retail marketing also helps keep competitors aware of what the other is charging for the same product, so it allows retailers to adjust prices as necessary to stay competitive in the market.

Creates Jobs
o

A direct positive effect of retail marketing is that it draws more customers to the retail stores. An indirect effect of retail marketing, however, is it creates jobs. When a retail store has more business, it also tends to need more employees to help with the volume of business. For potential employees that have experience in the retail industry or who are looking to break into retail work, retail marketing can open up many new job opportunities.

Three disadvantages of FDI in Retail 1. Existence of Indian biggies:

Already multiple Indian corporate are well entrenched into the Indian Market with their organized multi brand retail offerings. Under this situation is an FDI influx truly required? That is one of the biggest questions that is being asked.

2. Little incremental value :

- The critics of the move say that India as a country requires different fundamentals to survive and deliver value to the consumer. The last mile delivery of a lot of goods happen to the consumer's home - the retailer goes to the consumer in India and not the other way round, thus far in a lot of cases. Hence, the critics claim that there is little incremental value by implementing FDI in retail rules .

3. Will Prices reduce for consumers :

Not at all - Will there be a net gain for consumers in terms of Price savings? Not at all. Not even the biggest supporters of FDI in retail claim that the consumer will spend less from his/her pocket due to this FDI in retail influx.

Retailing in India:
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail market in the world, with 1.2 billion people. India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population). Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Wal-Mart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple.[5] The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus.[6] In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30 percent of its goods from India. Indian government continues the hold on retail reforms for multi-brand stores. In June 2012, IKEA announced it has applied for permission to invest $1.9 billion in India and set up 25 retail stores. Fitch believes that the 30 percent requirement is likely to significantly delay if not prevent most single brand majors from Europe, USA and Japan from opening stores and creating associated jobs in India.

On 14 September 2012, the government of India announced the opening of FDI in multi brand retail, subject to approvals by individual states.[ This decision has been welcomed by economists and the markets, however has caused protests and an upheaval in India's central government's political coalition structure. On 20 September 2012, the Government of India formally notified the FDI reforms for single and multi brand retail, thereby making it effective under Indian law.

Local terms
Organized retailing, in India, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the publicly traded supermarkets, corporatebacked hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local mom and pop store, owner manned general stores, shops, convenience stores, hand cart and pavement vendors, etc. Organized retailing was absent in most rural and small towns of India in 2010. Supermarkets and similar organized retail accounted for just 4% of the market.
[

Background.

Most Indian shopping takes place in open markets or millions of small, independent grocery and retail shops. Shoppers typically stand outside the retail shop, ask for what they want, and can not pick or examine a product from the shelf. Access to the shelf or product storage area is limited. Once the shopper requests the food staple or household product they are looking for, the shopkeeper goes to the container or shelf or to the back of the store, brings it out and offers it for sale to the shopper. Often the shopkeeper may substitute the product, claiming that it is similar or equivalent to the product the consumer is asking for. The product typically has no price label in these small retail shops; although some products do have a manufactured suggested retail price (MSRP) pre-printed on the packaging. The shopkeeper prices the food staple and household products arbitrarily, and two consumers may pay different prices for the same product on the same day. Price is sometimes negotiated between the shopper and shopkeeper. The shoppers do

not have time to examine the product label, and do not have a choice to make an informed decision between competitive products. India's retail and logistics industry, organized and unorganized in combination, employs about 40 million Indians (3.3% of Indian population).[15] The typical Indian retail shops are very small. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. India has about 11 shop outlets for every 1000 people. Vast majority of the unorganized retail shops in India employ family members, do not have the scale to procure or transport products at high volume wholesale level, have limited to no quality control or fakeversus-authentic product screening technology and have no training on safe and hygienic storage, packaging or logistics. The unorganized retail shops source their products from a chain of middlemen who mark up the product as it moves from farmer or producer to the consumer. The unorganized retail shops typically offer no after-sales support or service. Finally, most transactions at unorganized retail shops are done with cash, with all sales being final. Through the 1990s, India introduced widespread free market reforms, including some related to retail. Between 2000 to 2010, consumers in select Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry.

Growth

Growth over 1997-2010

India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale. Then, it required government approval. The approval requirement was relaxed, and automatic permission was granted in 2006. Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign direct investment, representing a very small 1.5% of total investment flow into India. Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were approved and implemented. For a country of 1.2 billion people, this is a very small number. Some claim one of the primary restraint inhibiting better participation was that India required single brand retailers to limit their ownership in Indian outlets to 51%. China in contrast allows 100% ownership by foreign companies in both single brand and multi-brand retail presence.

Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the highest in the world, because of very limited integrated cold-chain and other infrastructure. India has only 5386 stand-alone cold storages, having a total capacity of 23.6 million metric tons. However, 80 percent of this storage is used only for potatoes. The remaining infrastructure capacity is less than 1% of the annual farm output of India, and grossly inadequate during peak harvest seasons. This leads to about 30% losses in certain perishable agricultural output in India, on average, every year. Indian laws already allow foreign direct investment in cold-chain infrastructure to the extent of 100 percent. There has been no interest in foreign direct investment in cold storage infrastructure build out. Experts claim that cold storage infrastructure will become economically viable only when there is strong and contractually binding demand from organized retail. The risk of cold storing perishable food, without an assured way to move and sell it, puts the economic viability of expensive cold storage in doubt. In the absence of organized retail competition and with a ban on foreign direct investment in multi-brand retailers, foreign direct investments are unlikely to begin in cold storage and farm logistics infrastructure. Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a number of intermediaries involved in the traditional Indian retail chain, norms are flouted and pricing lacks transparency. Small Indian farmers realize only 1/3rd of the total price paid by the final Indian consumer, as against 2/3rd by farmers in nations with a higher share of organized retail. The 60%+ margins for middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail industry.

Growth after 2011

Before 2011, India had prevented innovation and organized competition in its consumer retail industry. Several studies claim that the lack of infrastructure and competitive retail industry is a key cause of India's persistently high inflation. Furthermore, because of unorganized retail, in a nation where malnutrition remains a serious problem, food waste is rife. Well over 30% of food staples and perishable goods produced in India spoils because poor infrastructure and small retail outlets prevent hygienic storage and movement of the goods from the farmer to the consumer.,, One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year, of which a miniscule $27 billion comes from organized retail such as supermarkets, chain stores with centralized operations and shops in malls. The opening of retail industry to free market competition, some claim will enable rapid growth in retail sector of Indian economy. Others believe the growth of Indian retail industry will take time, with organized retail possibly needing a decade to grow to a 25% share. A 25% market share, given the expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a year: a revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers.,

Major Indian Retailers

Indian apparel retailers are increasing their brand presence overseas, particularly in developed markets. While most have identified a gap in countries in West Asia and Africa, some majors are also looking at the US and Europe. Arvin Brands, Madura Garments, Spyware Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route and standalone stores as well. Another denim wear brand, , which is now moving towards becoming a casual wear lifestyle brand, has launched its store in Melbourne recently. It plans to open three stores in London by 2008-end.[34] The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra Group is the fourth largest Indian business group to enter the business of retail after Reliance Industries Ltd, the Birla Group, and Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a range of products, or both.

Scope of the Retail Sector

Retail is clearly the sector that is poised to show the highest growth in the next five years. The sector is set for a revolution, as both the present players and new entrants are gearing up to explore the market. This sector contributes 10% of India's GDP and the current growth rate is 8.5%. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 2010. There are about 300 new malls, 1500 supermarkets and 325 departmental stores currently under construction. Many players are coming up with huge investments, due to which the present 12 million mom-and-pop shops and Karana stores fear losing their business. Most predictions say that the sector might reach to US$ 400-600 billion by the year 2010. Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others are ready to

enter the retail markets. The rising demand of branded products and increase in purchasing power have lured these companies to enter the market.

Retail Marketing Objectives

This workshop explores the role of marketing in retail and the common marketing strategies employed. Determine marketing objectives and understand how marketing objectives are developed in alignment with the culture, strategy and philosophies of the organization. The importance of understanding past marketing activities, developing strategies for the present and assessing the viability of marketing opportunities is investigated. Participants will examine how to use objectives effectively through utilizing the marketing mix, the development of KPIs and appropriate communication, and then ensure contingency planning is in place to allow for when things dont go according to plan. This workshop specifically addresses the ability and skills required to:

Develop and evaluate marketing objectives for your business Analyzing and utilizing current and future trends in retail marketing Ensure your marketing activity is aligned with the business culture and strategy Engaging a team approach and ensuring compliance to marketing activity Delivering marketing objectives through the use of the marketing mix and using key measures to determine success.

1. Understand Your Customer

o

It is imperative that you understand your target customer. If you primarily sell children's clothing, you should be targeting females in their 20s and 30s (moms). Your business should take the time to know these women: what reaches them, what makes them tick, what they truly need out of your product. Your understanding of your target customer will allow you to communicate better with them, identify their market potential, customize product offers to them according to various market segments and consider their needs during product changes and updates.

Make Connections
o

A primary goal of retail marketing is understanding the connections between the customer's lifestyle and spending characteristics and why they choose one product over another. Using this knowledge, businesses can develop their products with a competitive advantage. This requires research and time as you delve into questions of brand loyalty, quality of product and pricing.

Improve Direct Marketing

o

Businesses must test to ensure that they are sending the appropriate message to the appropriate households. They also must send this message at the appropriate time using the appropriate media. Your communications must be spot on, selling the benefits of your product or service in such a way that a prospect becomes a paying customer.

Increase Customer Loyalty

o

To increase customer loyalty, businesses must develop relationships with customers, continually selling the value of the product in their situation. Never over or under sell; instead, operate with integrity. Matching competitors' prices, developing special rewards for loyal customers (frequent purchase card with discounts, priority service or personalized offers) and referral programs can all be effective avenues to increasing customer loyalty.

Make the Product Known

o

If you know your target customers, understand their needs and have developed the perfect product, you have to get the word out. Using your knowledge of your customers, you must communicate using the right channel. Using the above example of children's clothing, you should advertise your business in parenting and family magazines, on channels featuring children's programming and in or near toy and book stores.

THE INDIAN RETAIL SCENE

India is the country having the most unorganized retail market. Traditionally it is a familys livelihood, with their shop in the front and house at the back, while they run the retail business. More than 99% retailers function in less than 500 square feet of shopping space. Global retail consultants KSA have estimated that organized retailing in India is expected to touch Rs 35,000 core in the year 2005-06. The Indian retail sector is estimated at around Rs 900,000 core, of which the organized sector accounts for a mere 2 per cent indicating a huge potential market opportunity that is lying in the waiting for the consumer-savvy organized retailer. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jeweler, 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 here is on retail as a brand rather than retailers selling brands. The focus should be on branding the retail business itself. In their preparation to face fierce competitive pressure, 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. Sustainable competitive advantage will be dependent on translating core values combining products, image and reputation into a coherent retail brand strategy. There is no doubt that the Indian retail scene is booming. A number of large corporate houses Tatas, Rahejas, Piramalss, Goenkas have already made their foray into this arena, with beauty and health stores, supermarkets, self-service music stores, new wage book stores, every-day-low-price stores, computers and peripherals stores, office equipment stores and home/building construction stores. Today the organized players have attacked every retail category. The Indian retail scene has witnessed too many players in too short a time, crowding several categories without looking at their core competencies, or having a well thought out

branding strategy. STRATEGIES, TRENDS AND OPPORTUNITIES 2007 Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India.
GROWTH OF RETAIL SECTOR IN INDIA

Retail and real estate are the two booming sectors of India in the present times. And if industry experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of Indias largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. Accounting for over 10 per cent of the countrys GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry.

As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are

Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items (CHART)

Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing rejuvenation as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. The retailing configuration in India is fast developing as shopping malls are increasingly becoming familiar in large cities. When it comes to development of retail space specially the malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is studied it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in the Tier II cities. The government of states like Delhi and National Capital Region (NCR) are very upbeat about permitting the use of land for commercial development thus increasing the availability of land for retail space; thus making NCR render to 50% of the malls in India.

Indian e-retailers burning cash to get first-mover advantage: Zinnov.

1)Internet purchases are worth $10 billion (Rs 50,000 core) at present, but are growing fast, prompting online retailers like Flipchart and Mantra to burn cash to attract customers, a new study by consultancy firm Zinoviev has found. On a positive note, it noted that online retail accounts for only 0.5% of the total retail industry in India. This will rise rapidly in the coming years as e-commerce increases from $10 billion to $125-260 billion in the next 12 years. However, in a desperate attempt to get the early mover advantage, online retailers are spending more money than they can strictly afford and raking up losses in the hope of getting back their investment in the future. "E-tailers are burning cash to fuel growth; offering discounts deeper than their pockets and spending heavily on advertising and marketing," Zinnov said in its study on the Indian e-retail sector. The sector has seen a boom in the last two years with the launch of a number of portals such as myntra.com, jabong.com, snapdeal.com, infibeam.com etc.., besides the biggest, Flipkart.com. Most of the new e-retailers have been aggressively advertising on TV and other websites -- flush with cash from venture capitalists who want to make sure that they have an investment in the sector.. In turn, the boom is fueled by the rapidly expanding availability of high-speed broadband through 3G and 4G networks in India. India's Internet users are estimated to be grow to 376 million (bigger than the entire U.S. population) by 2015 from the current 120 million (bigger than the population of most European countries.) Despite the enthusiasm, Zinnov points out that online retailers offer an average discount of 25% and snap on offers such as free shipping, cash on delivery etc.. Because of all this, they lose an average of Rs 90 for an order size of 1,200.
.

The Effective role of Retail Marketing in the Modern Commercial Apparel & Garment Enterprises in India.

According to the Report of the Definition Committee, America Retailing includes all activities incidental to selling to the ultimate consumer. In the words of, Retailing is selling final consumer products to householders.

Researches disclose that the Indian apparel market has some distinctive features that massmarket retailers must accommodate. It has been estimated that India has approximately 30,000 readymade garment manufacturing units and around three million people are working in the industry. It is evident that after IT-ITES it is the retail sector in India that will bring forth many jobs. It has been estimated that in 2010 2,000,000 jobs will be given by the retail sector in India. And the retail sector development is remarkable in India for the past few years. The retail marketings role can be studied by evaluating the factors which make impact in garment / apparel business. Garment / apparel business is closely related to I) Quality as per the international standards II) Availability of the product for the consumers usage i.e.) through marketing and finally III) Fashion Trend.

Brand Name Quality

As the Brand Name implies the quality of the product, Indian companies had already started giving more attention to create its own brand name to sell their product through retail marketing. Indian garment /apparel manufacturing exporters have a lot of scope to market their products in both international and domestic trades successfully. How this can happen is a million dollar question. But Reliance Food Print, Spencers Daily, Raymonds are the Indian companies who have successful recor d in retail business. Indian companies like A V Birla groups, made waves in the Indian market with its garment brands. A v Birla group bought the division of Madura Coats Ltd .The Company first launched Louis Philippe in 1989, Van Heusen a year later, followed by Allen Sully and lastly Peter England. Now these products are being sold through its own retail outlets across India.

Retail Outlets - Availability Most of the international companies have their own retail outlets all over the world. For instance Nike, Adidas, Reebok, Crocodile, Lacoste etc have their own / circuitous retail outlets in almost all the

countries. With the help of their well known brand names they easily capture the world market and become competitive to the domestic companies. Brazil, China, and India are the important countries whose large populations and strong economic growth have made the Multinational retailers invasion. As consumers have greater disposable income in India, they increasingly spend their money on items beyond the basic necessities. One of the first categories to feel this change is apparel / garment. Owing to the fast growth of Indian economy Indian industrialists have awaken lately to sell their product in global market also.

Fashion Trend

It is obvious that conducting trade fairs exclusive for garment / apparels both globally and internally will definitely make a platform to introduce the brand name. Fashion shows on the other hand plays vital role in brand promotion. Advertisement and selecting brand ambassadors are also imperative. A well known celebrity can highly drag the attention of the consumers. Big retailers like LOBLAWS, COACH, JYSK and WAL MART are Indian apparel /garment buyers. As a wholesaler / buyer they purchase Indian products especially ready made garments from based companies and sell the same in foreign market as a retailer. Since the international retailers know the seasonal market demand very well, they place orders accordingly. Thus retail marketing is not only vital for international business but also it plays a key role in the domestic trade.

Title Retail Marketing & its Emerging Trends in Perspective of India

OVER VIEW / RECENT TRENDS IN THE INDIAN RETAIL SECTOR The retail stores are not a new entity, they have been in this world from the early 50's and in India they have been showing their presence in various forms like departmental stores, super markets, Discount Stores, Hyper- mart, Shopping Malls etc.

Indian retailing:
is undergoing a process of evolution and is poised to undergo dramatic transformation. The traditional formats like hawkers, grocers and pan shops co-exit with modern formats like Supermarkets and Non-store retailing channels such as multi level marketing and teleshopping. Modern stores trend to be large, carry more stock keeping units, have a self-service format and an experiential ambience. The modernization in retail formats is likely to happen quicker in categories like dry groceries, electronics, mens' books. Some reshaping and adaptation may also happen in fresh groceries, fast food and personal care products. In recent years there has been a

slow spread of retail chains in some formats like super markets, malls and discount stores. Factors facilitating the spread of chains are the availability of quality products at lower prices, improved shopping standards, convenient shopping and display and blending of shopping with entertainment and the entry of Tatars into retailing. Foreign direct investment in the retail sector in India, although not yet permitted by the Government is desirable, as it would improve productivity and increase competitiveness. New stores will introduce efficiency. The customers would also gain as prices in the new stores tend to be lover The consequences of recent modernization in India may be some what different due to lower purchasing power and the new stores may cater to only branded products aimed at upper income

Segments :
: The Indian retail environment has been witnessing several changes on the demand side due to increased per capital income, changing lifestyle and increased product availability. In developed markets, there has been a power shift with power moving from manufactures towards the retailers. The strategies used by retailers to wrest power include the development of retailers own brands and the introduction of slotting allowances which necessitate payments by manufactures to retailers for providing shelf space for new products. The recent increased power of retailers has led to the introduction of new tactics by manufactures such as every day low pricing, partnership with retailers and increased use of direct marketing methods.

Rural bias:
Nearly two thirds of the stores are located in rural areas. Rural retail industry has typically two forms: "Haats" and Melas". Haats are the weekly markets : serve groups of 10-50 villages and sell day-to-day necessities. Melas are larger in size and more sophisticated in terms of the goods sold (like TVs)

The Growth Drivers:

The Indian Retail growth can be attributed to the several factors including Demography Dynamics: Approximately 60 per cent of Indian population below 30 years of age. Double Incomes: Increasing instances of Double Incomes in most families coupled with the rise in spending power. Plastic Revolution: Increasing use of credit cards for categories relating to Apparel, Consumer Durable Goods, Food and Grocery etc.

 Urbanization:
: increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale. Covering distances has become easier: with increased automobile penetration and an overall improvement in the transportation infrastructure, covering distances has become easier than before. Now a customer can travel miles to reach a particular shop, if he or she sees value in shopping from a particular location.

Technology in Retail
: Over the years as the consumer demand increased and the retailers geared up to meet this increase, technology evolved rapidly to support this growth. The hardware and software tools that have now become almost essential for retailing can be into 3 broad categories.

Customer Interfacing Systems :

Bar Coding and Scanners : Point of sale systems use scanners and bar coding to identify an item, use pre-stored data to calculate the cost and generate the total bill for a client. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. In a matter of seconds, the items in the cart are hit with laser beams and scanned. All that the consumer has to do is to pay for the goods. Payment : Payment through credit cards has become quite widespread and this enables a fast and easy payment process. Electronic cheque conversion, a recent development in this area, processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. Rather than manually process a cheque, the retailer voids it and hands it back to the consumer along with a receipt, having digitally captured and stored the image of the cheque, which makes the process very fast.

Internet:
Internet is also rapidly evolving as a customer interface, removing the need of a consumer physically visiting the store.

Operation Support Systems ERP System : Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the customer better. CRM Systems : The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. This, along with the various available CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses.

Advanced Planning and Scheduling Systems :

APS systems can provide improved control across the supply chain, all the way from raw material suppliers right through to the retail shelf. These APS packages complement existing (but often limited) ERP packages. They enable consolidation of activities such as long term budgeting, monthly forecasting, weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. Leading manufactures, distributors and retailers and considering APS packages such as those from i2, and Sterling-Douglas.

Strategic Decision Support Systems :

Store Site Location : Demographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. Today, software packages are helping retailers not only in their location decisions but in decisions regarding store sizing and floorspaces as well. Visual Merchandising : : The decision on how to place & stack items in a store is no more taken on the gut feel of the store manager. A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options. The SPACEMAN Store Suit from are example of products helping in modeling a retail store design.

 Major Formats of In-Store Retailing :

Format Branded Stores Specialty Stores Department Stores

Description Exclusive showrooms either owned or franchised out by a manufacturer. Focus on a specific consumer need, carry most of the brands available Large stores having a wide variety of products, organized into different departments such as clothing, house wares, furniture, appliances, toys, etc.

The Value Proposition Complete range available for a given brand, certified product quality Greater choice to the consumer, comparison between brands is possible One stop shop catering to varied/ consumer needs. One stop shop catering to varied consumer needs Low Prices Low prices, vast choice available including services such as cafeterias. Convenient location and extended operating hours. Variety of shops available to each other.

Supermarkets Extremely large self-service retail outlets Discount Stores Hyper- mart Convenience stores Shopping Malls Stores offering discounts on the retail price through selling high volumes and reaping economies of scale Larger than a supermarket, sometimes with a warehouse appearance, generally located in quieter parts of the city Small self-service formats located in crowded urban areas. An enclosure having different formats of in-store retailers, all under one roof.

Indian Retail- expanding the number of formats :

In modern retailing, a key strategic choice is the format. Innovation in formats can provide an edge to retailers. Organized retailers in India are trying a variety of formats, ranging from discount stores to supermarkets to hypermarkets to specialty chains.

Formats Adopted by Key Players in India : Retailer RPG Retail Piramal's Pantaloon Retail Original formats Supermarket Department Store Megastore) Small format outlets (Shoppe) Later Formats Hypermarket (Spencer's)Specialty Store (Health and Glow) Discount Store Supermarket (Food Bazaar) Hypermarket (Big Bazaar) Mall (Central)

K Raheja Group Tata/ Trent Landmark Group Others

Department Store (Pantaloon) Department Store (shopper's Supermarket (TBA) stop) Hypermarket (TBA) Specialty Store (Crossword) Department Store (Westside) Hypermarket (Star India Bazaar) Department Store (Lifestyle) Hypermarket (TBA) Discount Store , Margin Free, Apna Bazaar), Supermarket Specialty Electronics

Recent changes:
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. Ex. Quasi-mall, sub-urban discount stores, Cash and carry etc. Store design : Biggest challenge for organized retailing to create a customer-pull environment that increases the amount of impulse shopping. Research shows that the chances of senses dictating sales are up to 10-15%. Retail chains like MusicWorld, Baristas, Pyramid and Globes are laying major emphasis & investing heavily in store design.

Emergence of discount stores: They are expected to spearhead the organized retailing revolution. Stores trying to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay Bazaar, RPGs. Unorganized retailing is getting organized: To meet the challenges of organized retailing such as large cineplexes, and malls, which are backed by the corporate house such as 'Ansals' and 'PVR the unorganized sector is getting organized. 25 stores in Delhi under the banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart formed which are aggregations of Kiranas. Multiple drivers leading to a consumption boom: Favorable demographics Growth in income Increasing population of women

 Raising aspirations : Value added goods sales, Food and apparel retailing key drivers of growth. Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households. More successful in cities in the south and west of India. Reasons range from differences in consumer buying behavior to cost of real estate and taxation laws. Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption ITC is experimenting with retailing through its e-Choupal and Choupal Sagar rural hypermarkets. HLL is using its Project Shakti initiative leveraging women self-help groups to explore the rural market. Mahamaza is leveraging technology and network marketing concepts to act as an aggregator and serve the rural markets. IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically change buying behavior across the globe.

Emergence of discount stores: They are expected to spearhead the organised retailing revolution. Stores trying to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay Bazaar, RPGs. Unorganized retailing is getting organized: To meet the challenges of organized retailing such as large cineplexes, and malls, which are backed by the corporate house such as 'Ansals' and 'PVR the unorganized sector is getting organized. 25 stores in Delhi under the banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart formed which are aggregations of Kiranas.

Introduction to the Retail Industry

Retail, with more than 14 million employees in America alone (about one out of 10 workers), is one of the largest industries in the world by number of businesses and number of employees. Retail sales in the U.S. (total retail sales include the categories of gasoline,

automobiles, and food service, as well as merchandise) totaled an estimated $4.691 trillion in 2011 according to the U.S. Census Bureau. Sales were $4.355 trillion in 2010. (Sales at stores selling general merchandise, apparel, furniture and specialty items totaled $1.11 trillion in 2010. This segment is referred to as GAFO.) The retail industry has been challenged in America, the EU and other developed nations, thanks to the ongoing fallout from the recent financial crisis. Stores sales during 2008-11 were driven partly by deep discounting. Many retailers were forced into bankruptcy, including Sharper Image, Linens n Things, Bombay Co. and mail order firm Lillian Vernon, and more will follow. Vacancy levels are high at Americas malls and shopping centers. Negative factors that will impact the retail sector in 2012:
Consumer debt levels are declining, but still remain high compared to historic norms. Surveys show that consumers are focused on paying down debts. High health care costs in America continue to be a major challenge to consumers, thus reducing discretionary spending. A continuation of depressed conditions in the housing market means low home equities and limits the ability of consumers to sell or borrow against their houses. A high level of home mortgage foreclosures continues in the U.S., with more than 8% of all residential mortgages in delinquency or foreclosure as of mid 2011. Persistently high unemployment levels and a very difficult environment for job seekers reduce retail spending. Low consumer confidence reduces spending. Consumers will continue to be more conservative. To the extent they are able to do so, they will be saving more while spending less. When they do spend, they want to feel like they are buying merchandise that is fairly priced, if not a significant bargain, and that the merchandise has lasting value backed up by a high brand reputation and excellent customer service. Meanwhile, competition among retailers has never been tougher. A retailer without a significant competitive advantage doesnt stand a chance. Superstores are battling each other on every major corner, while Internet marketers are stealing customers from stores. Some consumers are using stores as showrooms where they can touch and feel the merchandise, and then making their purchases at lower cost online at sites like Amazon.com. Online selling at deep discounts is even making inroads into major consumer purchases such as jewelry. Growth in online shopping has been driven by two factors. First, the number of fast Internet connections in U.S. homes and businesses leapt to about 100 million by 2011, plus tens of millions of wireless connections, which make buying online faster and more interactive. Next, theres the savvy marketing of online giants like Amazon.com (with more than $34.2 billion in 2010 revenues, nearly doubling over the past three years), as well as the e-commerce efforts of traditional retailers such as Home Depot and Wal-Mart. These fast Internet connections are extremely important, even at the office, since a large number of workers take time out to shop online from their desktops.

Retail Marketing - Nature of Work

The Indian retail business has seen a steady growth in recent years and today stands at approximately Rs. 1, 50,000 corers. A relatively new field in India, the fast growth in this industry is evident from the huge investments being made by big industrial houses like RPG Group, Tatas, Durables, Primal Group, Gross-Word, Wills, and the like. Retail is no longer solely in the hands of small businessmen. As a result, the sector is getting more organized and structured now. India boasts of 5.5 outlets per 1,000 people (according to CII report), and the opportunities are growing in the retail sector. The idea behind organized retail is to offer the consumer everything under one roof. One model of organized retail was actually Super Bazaar, set up by the government in 1962. Some example of private players today are Ebony, Wool mark, Shopper's Stop, etc. The retail industry has businesses such as departmental stores, shopping malls and brand outlets.

Nature of Work
Retail marketing unlike the traditional family run stores have the classic 4 Ps (product, promotion, price and place). Retail management has a fifth - People- who play a critical role, be it as employees who run the business, or as consumers whose needs are being serviced by these employees. Today, retail organizations require people across diverse functional areas such as sourcing, merchandising, product development, supply chain management, store operations and marketing, manufacturing, finance, HR and even IT operations as part of the support services. Every organization wants direct access to consumers, which is where large retail outlets come in. With multiple chain outlets the opportunities for employment are high. In fact, every retail store wants qualified employees.

Personal Characteristics
The retail sector needs young, dynamic creative, educated and skilled people. Retailing involves personal commitment and passion, vision, a proactive approach and positive attitude. Retail is an extremely dynamic business and one must move very fast. A good retailer is always a few steps ahead of the others. The skill-sets that are required in each functional area are different from the other. For instance, you need an aptitude for figures for merchandising and inventory management, a strong knowledge of product categories in buying and peoples skills in customer care. For the management positions, the skill-sets are the same as in other consumer product businesses - strong customer orientation and people management skills. You also need to have a genuine willingness to serve and be of assistance. A pleasing and outgoing personality ; good analytical skills ; patient, persuasive, a team player as well as an extrovert are integral qualities of a retailer.

CONCLUSION The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. It is also the second largest industry in US in terms of numbers of employees and establishments. There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth.T h e I n d i a R e t a i l I n d u s t r y i s t h e l a r g e s t a m o n g a l l t h e in dustries, accounting for over 10 per cent of the countrys G D P a n d a r o u n d 8 p e r c e n t o f t h e e m p l o y m e n t . T h e R e t a i l Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the m a r k e t . H o w e v e r , a l l o f t h e m h a v e n o t ye t t a s t e d s u c c e s s because of the heavy initial investments that are required to b r e a k e v e n w i t h o t h e r c o m p a n i e s a n d compete with t h e m . T h e I n d i a R e t a i l I n d u s t r y i s g r a d u a l l y i n c h i n g i t s w a y to wards becoming the next boom industry..

BIBLIOGRAPHY
RETAIL MANAGEMENT GIBSON G. VEDAMANI RESEARCH METHODOLOGY C.R. KOTHARI

www.pantaloon.com www.hindubusinessline.com www.hinduonnet.com www.indiafdiwatch.org

WWW.IBEF.ORG/INDUSTRY/RETAIL BLS INSTITUTE OF MANAGEMENT