The Global Retail Industry: An Overview

Globally, Retail has played a major role in increasing productivity across a wide range of consumer goods and services .Such an impact has been best witnessed in countries like U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also immensely assisted by the retail sector. Retail is said to be the second-largest industry in the United States both in number of establishments and number of employees. It is also considered as one of the largest world wide. The retail industry employs more than 22 million Americans and generates more than $3 trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. GLOBAL INTERNATIONAL RETAIL BRANDS International brands such as Benneton, Lacoste, Levi Strauss, Crocodile, Dockers, Lee, Wrangler, Nike, Reebok, Adidas, Guess, Esprit, Mango, Hugo Boss, Mark & Spencers and Tommy Hilfiger have already built a retail presence in the country, while market watchers point out that several more such as Versace, FCUK, Zara, Mother Care, Ikea, Fendi, NEXT, Debenhams, Trussardi, and DKNY have charted out a strategy to enter the Indian market. Most of the brands entering the market are targeted at the premium end. According to estimates, the premium apparel segment in India is valued at about Rs 1,900 crore and growing at 20 per cent. Now there is an increasing demand of branded apparel segment in the domestic retail market for the same features that are

valued in demanding export markets. These shifts in retail are fuelling the demand for good quality and trendy apparel, which in turn deepening the importance of aesthetics and design in the domestic market.

INDIAN RETAIL SECTORS:

The Indian retail sector is divided in two parts: Organized: where trading is done by licensed retailers. unorganized: traditional formats of low cost retailing. The Indian retail industry is the fifth largest in the world. India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, around 97% of its business is run by unorganized retailers. however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 cr in 2004-05 to Rs. 109,000 cr by the year 2010.

Business Environment in Indian Apparel Organised retailing sector

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010. Till 2010, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. This sector is the largest source of income after the agriculture sector in india.

Challenges facing Indian retail industry

y y y y y

The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment

MENSWEAR AND WOMENSWEAR AND INFANTSWEAR The mens branded apparel market is growing at a rate of 21.8% and branded womens apparel segments represents 35% of the total branded apparel market and is growing at an incredible 23% annually.

% MENSWEAR 41.4

WOMENSWEAR 34.4 INFANTS 24.2 WEAR Figures Correspond to survey made in 2007

MONETRAY PRODUCTION TERM(EURO) IN INIDA 5.65 WEST AND SOUTH 4.69 NORTH 3.30 EAST

The Mens wear sector consists of: y Business Suits y Formal Wear y Semi-Formal Wear y Casual Wear y Trousers y Shirts y Inner Wear

RAPIDLY EXPANDING RETAIL MARKET

Focus on the apparel retail sector has attracted attention in recent days. Top exporters have introduced their own brands and are aggressively positioning themselves within segments of the domestic market. The rising importance of branded segments in the domestic market combined with the pressure of import competition is blurring the boundaries between exports and domestic production in countries with large home markets, such as Indian markets. With the changing lifestyles, organized retail is playing a key role in structuring the Indian domestic market,

reinforced in particular by rising incomes and growing purchasing power among consumers in rapidly growing sectors of the economy such as information technology and business process outsourcing. Retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. The branded apparel market represents the largest source of growth.

FACTORS OF MODERN RETAIL BOOM IN INDIA:

The driving forces towards development of apparel retail in India can be broadly classified into following categories: 1.Economic development 2.Improvements in civic situation 3.Changes in consumer needs, attitudes and behaviour 4.Influence of fashion 5.Changes in government policies 6.Increased investment in retailing 7.Rise in power of organized retail.

1.2 COMPETETIVE ANALYSIS:

The marketing mix is said to consist of the four P's : 1. Product 2. Price 3. Place 4. Promotion As we have already discussed, the marketing strategy is dependent on the target market. This basically means that the: 1. Product: As we are talking about product that is the shirt of the brand Indian terrain which is manufactured by celebrity fashions which is quiet a respectable brand. To be successful in business it should have exclusivity, innovation, and satisfy its customers. The brand has to maintain its quality well and see to it that the shirt is packed well and in an appealing manner. The warranty for the brand is also required.

2. Price decisions: the prices of Indian terrain are kept in mind by keeping in view the strategies the company applies like price skimming, price penetration. The retail prices of Indian terrain shirts start from

3. Place: place distribution is a very important thing in the marketing mix strategy. It is getting the products to be reached to its customers. The place where Indian terrain puts up is Chennai and is having good logistics to be able to supply its products throughout India.

4. Promotion: the company Indian terrain is promoted well by advertising, personal selling, sales force and sales promotion but the budget for marketing and advertising should always be kept in mind. Indian terrain brand

ambassador is abhay deol and previously it was promoted by kunal kapoor.

BRAND IS COMPETING FOR SPACE IN THE RS 800 CRORE PREMIUM APPAREL SECTOR IN INDIA. MAIN COMPETITORS ARE: VAN HUESEN LIOUS PHILLIPPE ARROW COLOUR PLUS

NEED GAP
THE DEMAND FOR MENSWEAR SHIRT IS 45% OF ALL THE CLOTHINGS IN THE MARKET IN TODAYS DATE. THERE IS AN INCREASE IN THE RISE OF BPOS THESE DAYS BECAUSE THERE IS CHEAP LABOUR AVAILABLE IN OUR COUNTRY AND THE RISE OF BPOS CAUSES MORE EMPLOYMENT FOR PEOPLE AND THUS THE PEOPLE HAVE MORE DISPOSABLE INCOME. WITH THE RISE IN JOBS THE PEOPLE DONT HAVE TIME TO GO AND GET A SHIRT TAILOR MADE THEY

PREFER GOING AND BUYING ONE FROM THE RETAIL OUTLET WHICH IS A GREAT REASON FOR THE RISE OF THE ORGANISED RETAIL SECTOR. TEN YEARS BACK FROM NOW THE PUBLIC WAS NOT AWARE OF THE BRAND CONCEPT BUT WITH TIME THE RISE OF MEDIA AND ADVERTISING HAS MADE THE PUBLIC BRAND CONSCIOUS AND THUS THERE IS MORE PREFERABILITY TO BUY SHIRT FROM THE RETAIL STORE. THERE IS A CHANGE IN THE CUSTOMERS TASTE AND PREFERENCE WHICH IS A REASON FOR THIS CHANGE.