RETAIL

The word retail is, in fact, derived from the French word retailer, which means – “to cut off a piece or to break bulk.”A retailer may be defined as a dealer or trader who repeatedly sells goods in small quantities.

RETAIL INDUSTRY

The growth of retail revenues in India is impressive by any yardstick — a steady 25 percent per annum for the past decade with no signs of slowing down.

"Retailing is one of the oldest business activities in India. But until the liberalization and deregulation of the Indian economy in the 1990s, it was dominated by small one-man retail units.

However since the past five years, it has become more structured and formalized and is moving towards international standards. Today, the organized retail sector is an industry.

The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010.

100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangements are also permitted in retail trade.

51 per cent FDI is allowed in single-brand retailing.

Evolution Of Indian Retail

Weekly MarketsVillage Fairs Melas

Convenience StoresMom and Pop/Kiranas

PDS outlets Khadi storesCooperatives

Exclusive Brand OutletsHyper/Super marketsDepartment storesShopping Malls

Historic/ Rural Reach

Traditional/Pervasive Reach

Government Supported

Modern FormatsInternational

Source of entertainment

Neighborhood storesConvenience

Availability/Low costs/Distribution

Shopping experience/Efficiency

Evolution Of Indian Retail……

Formal Retailing SectorTypically large retailers

Greater enforcement of taxation mechanisms

High level of labor usage monitoring

Informal retailing SectorTypically small retailers.

Evasion of taxes

Difficulty in enforcing tax collection mechanisms

No monitoring of labor laws.

Growth Drivers for Organized Retail

Reasons for the fast Growth of Retail Companies in India Existing Indian middle classes with

an increased purchasing power Rise of upcoming business sectors

like the IT and engineering firms Change in the taste and attitude of

the Indians Effect of globalization Heavy influx of FDI in the retail

sectors in India

Why FDI?A. Improve competitionB. Develop the marketC. Greater level of exports due to

increased sourcing by major playersD. Investment in technologyE. Better lifestyle

o Greater level of wages paid by international players usually

o More product varietyo Newer product categorieso Economies of scale to help lower consumer

priceo Increased purchasing capacity of consumers

COMPANY PROFILE

Flagship company of Future Group Founder and Group CEO, Mr. Kishore

Biyani Company operates over 12 million

square feet of retail space Over 1000 stores Across 71 cities in India Employs over 30,000 people.

ROAD TO SUCCESS Incorporated on the 12th October,

1987 under the name of Manz Wear Private Limited.

on 20th September 1991, it was converted into a Public Limited Company under the name of Manz Wear Limited

Pantaloon Fashions (India) Limited with certificate of incorporation dated the 25th September.

In 1994, The Company launched a new brand of shirts called `John Miller‘

In 1998, the Company introduced Shrishti range of Salwaar Kameez.

The name of the Company was changed with the approval of the Members to Pantaloon Retail (India) Ltd. In 1999

K Raheja Corp Group

started in the year 1991

Shoppers Stop has 27 stores in 12 cities in India

Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside

More than 50 Westside stores established in various cities and states of India

Part of the Landmark Group, a Dubai – based retail chain.

began operations in 1999 with its first store in Chennai.

Around 20 stores across India

Launched in January 1998,

Part of the Rajan Raheja group.

Around 25 stores in India

RESEARCH METHODOLOGY SCOPE OF THE RESEARCH

Some stores of New Delhi and Noida

DATA COLLECTION Primary Data With the help of Questionnaires

SAMPLE SIZE 100 Respondents

POPULATION Customer of Lifestyle/Fashion segment of retail

stores in Delhi and Noida

OBJECTIVES

To compare the various stores under the Lifestyle segment

To find out which stores customers visit for different purposes (Men’s wear, women wear, and kid’s wear)

To find out the store considered best on the basis of membership benefits

To find out the best store among the 5 stores on the basis of product and service quality

To suggest means of improving “shoppers experience by enhancing the deliverable parameters

56%

44%

Male

Female

56%

44%

Male

Female

AGE GROUP

4%

41%

51%

4%

Less than 18 years

18-25 years

25-40 years

40 years and above

MONTHLY FAMILY INCOME (In Rs)

29%

50%

21%

15-30 thousand

30-50 thousand

50 thousand and above

OCCUPATION

28%

14%

21%

4%

31%

2%

Student

Businessman

Professional

Govt Service

Private Service

Housewife

How frequently do you shop for garments?

At le a st onc e a fortnig ht, 20

At le a st onc e a month, 36

At le a st onc e in 2 months, 27

At le a st onc e a we e k, 10Only during sa le s

pe riod, 4

On spe c ific oc c a sions, 3

Out of the following stores which Lifestyle store are you most likely to visit when looking for:

When you think of shopping, which factors out of following have importance in your decision

Rank the Sales Personnel of these stores on the basis of attentiveness, appearance and knowledge of product

Rank the stores on the basis of these services

You are a member of which company’s customer loyalty programme

50

63

16

43

15

7

0

10

20

30

40

50

60

70

Pantaloons Shopper'sStop

Westside Lifestyle Globus None

Is there any benefit of being a member

Which one is best on the basis of membership benefits

Pantaloons28%

Shoppers Stop36%

Westside6%

Lifestyle19%

Globus11%

Pantaloons36%

Shoppers Stop28%

Westside4%

Lifestyle22%

Globus10%

It was found that, the preference of customers in the Kid’s section does not vary too much. Because of availability of similar brands in all stores.

Most of the respondents said that pantaloons is most consistent in quality followed by Shoppers’ stop

It was found that, the preference of customers in the Kid’s section does not vary too much. Because of availability of similar brands in all stores.

It was found that most of the respondents said that Pantaloons provides maximum value to their money

In the survey, maximum of the respondents said that Lifestyle is having best Store Ambience

It is found out that, most of the respondents preferred Shopper’s Stop for providing maximum membership benefits followed by Pantaloons

It is found out that Pantaloons is considered best on the basis of advertisement & communication in the market

ank followed by Lifestyle on 2nd rank.

Findingscontd….

On the basis of appearance, attentiveness and knowledge of product of their Sales personnel Shopper’s Stop got 1st rank and Lifestyle got 2nd rank followed by Pantaloons

It is found out that On the basis of Waiting area provided by different Lifestyle stores, Shoppers stop got the highest rFrom the research it is found out that Location of the Store is the most important factor considered by the customer in their shopping decision

Pantaloons stands 1st among all for providing clean drinking water to the customers. Shoppers’ stop got 2nd rank followed by Lifestyle on 3rd rank.

It is found out that maximum respondents were having membership cards of more than 1 or 2 stores.

63 respondents were having membership card of Shopper’s stop and 50 respondents were having membership card of Pantaloons

On the basis of membership benefits, 36% of the respondents said that Shoppers’ stop is the best, while 28% respondents said that Pantaloons is best.

36% of the respondents have favored Pantaloons as the best Lifestyle store, 28% of the respondents have favored Lifestyle as the best store under this retail format

7Abhishek, Amit & Sumit . IMS MBA(MM)

Weekly MarketsVillage FairsMelas

Convenience StoresMom and Pop/Kiranas

PDS OutletsKhadi StoresCooperatives

Exclusive Brand OutletsHyper/Super MarketsDepartment StoresShopping Malls

Traditional/Pervasive Reach

Government Supported

Historic/Rural Reach

Modern Formats/ International

Evolution of Indian retail

Source of Entertainment

Neighborhood Stores/Convenience

Availability/ Low Costs /

Distribution

Shopping Experience/Efficiency