Retail Marketing An Empirical Study

Retail Marketing: An Empirical Study
Introduction 1
Retailing is one of the world’s largest industries. It is in a permanent state
of change, and the pace of this change has been accelerating over the last
decade. From the marketing perspective, retailers are, by definition, closer to the
consumer than manufacturing companies. Retailers represent the culmination of
the marketing process and the contact point between consumers and
manufactured products. While retailing has long set buying decisions as its
highest priority and was very focused on the product assortment, it now follows a
more holistic approach to management and marketing and is seizing the
opportunity to be consumer oriented, engage in the personal contact with
customers, gather information on consumer behaviour and exploit insights into
consumer behaviour and preferences. What was once a simple way of doing
business is transforming into a highly sophisticated form of management and
marketing. Retail marketing consistently features more efficient, more meaningful
and more profitable marketing practices.
Today retail, which is derived into organized and unorganized, is emerging
rapidly as a big industry all over the world and hence, India is also not untouched
with this. So there is a need to know the current and the future trends of retail in
India. For the third year in a row, India has topped AT Kearney’s annual Global
Retail Development Index (GRDI). The Indian retail market is expected to grow
from the current US$ 350 billion to US$ 427 billion by 2010. This study will be
Annamalai University Page 1

based on the latest retail trends being adopted by the companies, why the big
fishes are showing their interest in this sector particularly. Of the current size,
organized retail – or modern retail – constitutes only 3 to 4 percent i.e. US $8
billion (36,000 crore INR approx). The rest of the retail pie is crowded with
unorganized retail – or the traditional shops. India’s retail market which is seen
as THE GOLDMINE by global players, has grabbed attention of the most
developed nations.
4% 10%
organised organised
unorganised unorganised
96% 90%
Current Position Position By 2010
Fig. 1.1
Market estimates say that by 2010, organised retail will form 10 percent of
the pie – up substantially from the current 3 to 4 percent. According to
Euromonitor International, the entire sector will grow – in value terms – by 39.6
percent between 2006 and 2011. This means that it will strike an average a
growth of rate of almost 7 percent annually. According to the Indian Brand Equity
Foundation (IBEF), “Driven by changing lifestyles, strong income growth and
favourable demographic patterns, Indian retail is expanding at a rapid place. The
country may have 600 new shopping centres by 2010. Mall space from a meager

one million square feet in 2002, is expected to touch 40 million square feet by
end – 2008.”
Retail is the accumulation of various marketing practices directed towards
providing the best merchandise available. It consists of the sale of goods or
merchandise, from a fixed location such as a big department store or a small
store (the kirana shop), in small or individual lots for direct consumption by the
purchaser. Retailing may include subordinated services, such as delivery. A
retailer buys goods or products in large quantities from manufacturers or
importers, either directly or through a wholesaler, and then sells smaller
quantities to the end-user i.e., the consumer or the end-buyer. In the supply
chain, retailers come at the end, just before the consumer.
Manufacturer  Wholesaler  Retailer  Consumer
Manufacturer  Retailer  Consumer
Fig. 1.2
“Retailing includes all activities involved in selling goods or services
directly to final consumers for personal, non-business use. A retailer or retail
store is any business enterprise whose sales volume comes primarily from
retailing.” Retail is India's largest industry, accounting for over 10 per cent of the
country's GDP and around eight per cent of the employment. Retail industry in
India is at the crossroads. It has emerged as one of the most dynamic and fast
paced industries with several players entering the market.
The presence of 15 million kirana stores brings into light the very fact that
the Indian retail industry is highly fragmented/ unorganized. Retailing in India is

gradually inching its way toward becoming the next boom industry, organized
retailing in particular. 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.
Fig. 1.3
India has one retail outlet per 90 people, one of the highest densities in
the industry in the world. India is the 9th largest retail market, with annual sales in
the organized segment at Rs. 35,000 crore in 2005 – with revenues doubling
every year. Food, groceries and general merchandise, apparel, consumer
durables, food services and home improvement are the top categories in the
organized sector. Overall revenues, including those of small shops, is expected

to grow 5.5% a year to Rs. 28,70,000 crore by 2015 at current prices. The
organized segment is expected to grow faster, at 21.8%, to touch Rs. 420,000
crore by 2015.
The future of Indian retailing may even witness the concept of 24 hour
retailing and Gurgaon, Delhi and Bangalore have already started operations up
to 11 p.m. Even though this concept has been in existence in few retail segments
like pharmaceuticals and fuel, it still remains to be a challenge for other
segments like food and groceries, apparel etc to adopt this trend.
Although the organized retailing in India is coming up in a big way, it
cannot simply ignore the competition from the conventional stores because of
various factors like reach, extending credit facility and other intangible factors like
the human touch which are provided only by the conventional stores.
The urban retail market has been embracing various new formats and the
malls turned out to be the trend setters by promising the concept of
shoppertainment. The trends in the rural market also have been changing from
the old Haats and Melas to the rural malls like ‘Chaupal Sagar’ launched by ITC,
DCM Shriram Groups one-stop shopping destination called ‘Hariyali Bazaar’,
Godrej groups agri-store ‘Adhar’ etc.

Indian Retail Development Phases
Fig. 1.4
In India’s retail Landscape, food dominates the shopping basket in India.
IBEF (Indian Brand Equity Foundation) says, “The US$ 6.1 billion Indian food
industry, which forms 44 per cent of the entire FMCG sales, is growing at 9 per
cent and has set the growth agenda for modern trade formats. The prospect for
growth of the branded segment is huge, as nearly 60 per cent of the average
Indian grocery basket still comprises non-branded items.”
What is India’s official, governmental position on retail – especially Foreign
Direct Investment (FDI) in retail? The Government allows 100 per cent FDI in
cash and carry through the automatic route and 51 per cent in single brand.
Besides, the franchise route is available for big operators. Now, the government
also proposes further liberalisation in the retail sector allowing 51 per cent FDI in
consumer electronics, sports goods, stationery and building equipment. The
doors are opening up – and it’s a good time to be in the sector!

Some key players in India are – Pantaloon Retail (India) Limited, Reliance
Retail, Aditya Birla Retail, Bharti Retail, Shopper’s Stop and Lifestyle.
• Pantaloon Retail (India) Limited: - This is India’s leading retailer that
operates multiple retail formats in both the value and lifestyle segment of
the Indian consumer market. Headquartered in Mumbai (Bombay), the
company operates over 5 million square feet of retail space, has over 450
stores across 40 cities in India and employs over 18,000 people. The
company’s leading formats include Pantaloons, a chain of fashion outlets,
Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a
supermarket chain, blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and quality and Central,
a chain of seamless destination malls. Some of its other formats include
Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top
10, mBazaar and Star and Sitara. The company also operates an online
portal, futurebazaar.com. A subsidiary company, Home Solutions Retail
(India) Limited, operates Home Town, a large-format home solutions store,
Collection I, selling home furniture products and E-Zone focused on
catering to the consumer electronics segment. Pantaloon Retail was
recently awarded the International Retailer of the Year 2007 by the US-
based National Retail Federation (NRF) and the Emerging Market Retailer
of the Year 2007 at the World Retail Congress held in Barcelona.
Pantaloon Retail is the flagship company of Future Group, a
business group catering to the entire Indian consumption space. And, of

course, Pantaloon’s Managing Director Kishore Biyani believes in
changing the rules of the game.
• Reliance Retail: - Mukesh Ambani’s 15,000-people Reliance Retail has
already opened 250 convenience stores, branded as ‘Fresh’, across the
southern states. Reliance Retail plans to invest Rs 25,000 crore on
hypermarkets, supermarkets and specialty stores in the next four years.
This is what its website has to say: “Reliance is gearing up to revolutionize
the retailing industry in India. Towards this end, we are aggressively
working on introducing a pan-India network of retail outlets in multiple
formats. A world class shopping environment, state of art technology, a
seamless supply chain infrastructure, a host of unique value-added
services and above all, unmatched customer experience, is what this
initiative is all about. The retail initiative of Reliance will be without a
parallel in size and spread and make India proud. Ensuring better returns
to Indian farmers and manufacturers and greater value for the Indian
consumer, both in quality and quantity, will be an integral feature of this
project. By creating value at all levels, we will actively endeavor to
contribute to India’s growth. The project will boast of a seamless supply
chain infrastructure, unprecedented even by world standards. Through
multiple formats and a wide range of categories, Reliance is aiming to
touch almost every Indian customer and supplier.
• Aditya Birla Retail: - The Company, owned by Mr. Kumar Mangalam
Birla, Chairman, Aditya Birla Group, with its mission – “Our mission is to

change the way people shop. We will give the Indian consumers a
fundamentally better shopping experience. We will offer them More than
what they expect”. While unveiling the brand name ‘More’, he had this to
say about the vision of his company: “We believe that the Indian consumer
today is undeserved. Even though we have many shopping outlets in
India, many of them do not offer the kind of shopping experiences that
people in most other parts of the world are used to, and even take for
granted. As a result, spends by Indian consumers on their day-to-day
needs and special shopping occasions are much less than they ought to
be…” The Company operates under the brand ‘More’, has selected two
formats – hypermarkets and supermarkets – for its initial foray. The first
store has opened in Pune. Last January, the company acquired Trinethra
Super Retail, which has given it more than 5,00,000 sq ft and a strong
presence in four southern states of Andhra Pradesh, Karnataka, Tamil
Nadu and Kerala, where it is the No. 1 retailer. The Birlas’ outlay for the
business over the next three years is Rs 9,000 crore.
• Bharti Retail: - The world’s largest retailer Wal-Mart, which usually has a
standalone presence in other parts of the world, is partnering with Sunil
Mittal’s Bharti Enterprises in India. The venture will start with the cash &
carry (wholesale) format, which could be extended to retail operations
once foreign direct investment is allowed in multi-brand retail – something
that is expected in due course. More about the company, Bharti Retail
(Pvt.) Limited, is a wholly owned subsidiary of Bharti Enterprises. As a part

of its plans to provide a world-class retailing experience to consumers
across India, the company has planned an investment of US$ 2 to 2.5
billion by 2015. Bharti Retail plans pan-India operations and is looking at
approximately 10 million square feet of retail experience across all cities in
India with a population of over one million. The 60,000 people, it plans to
employ, will include ex-servicemen and women and provide multi faceted
career opportunities for youth of India.
• Shopper’s Stop: - A menswear store owned by K. Raheja in the Mumbai
suburb of Andheri in 1991 has now transformed into Shopper’s Stop, with
27 departmental stores. The company entered airport retailing in a joint
venture with the Nuance Group. It also launched India’s largest
hypermarket, Hypercity. In 2005, it bought the Crossword book-store
chain.
• Lifestyle: - Growing from one store in Bahrain in 1973, the NRI-led
Landmark Group today operates over 5 million sq ft in the Middle East and
India. The group’s first Lifestyle store in India opened in Chennai in 1999.
Now it has 325,000 sq ft in Chennai, Hyderabad, Bangalore, Gurgaon and
Mumbai.
There are several home-grown and international players like
Carrefour waiting in the wings. Expect a lot of action in this sector in next
five years!
We will discuss more players and brands in the next chapters.

The retail and retailing is changing with a good pace and consumers are
shifting from the traditional retailing (unorganised) to the modern retailing
(organised). There are various factors: favourable demographics, growth in
income, raising aspirations: value added goods sales, increasing population
(working women) as well as the lifestyle of women, food and apparel industry
growth, online marketing or buying and selling, rural markets giving high
opportunities to retailers for investments and government is also allowing FDI in
the retail industry in India. Let’s see how it is changing: -
Factors of changing Consumer Behaviour in Retail
Fig. 1.5

Now the picture will be more clear to you that why there is a need to study
the retail marketing. The above factors have affected the retail industry of India
and created threat among the unorganised small retailers for their existence. This
report will reveal the actual scenario of retail industry in India and also global.
Relevance of Food Retail Formats in 2010:
Relevance of Non-Food Retail Formats in 2010:
Fig. 1.6

What is Retail? 2
Retail:
Retail comes from the French word “retaillier” which refers to "cutting off,
clip and divide" in terms of tailoring (1365). It first was recorded as a noun with
the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for
retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch
and German, Detailhandel and Einzelhandel respectively, also refer to sale of
small quantities or items.
Retailing:
Fig. 2.1
Retailing practice of accumulation of various marketing practices directed
towards giving the best merchandise available and it consists of the sale of
goods or merchandise, from a fixed location such as a department store or kiosk,

in small or individual lots for direct consumption by the purchaser. Retailing may
include subordinated services, such as delivery. Purchasers may be individuals
or businesses. In commerce, a retailer buys goods or products in large quantities
from manufacturers or importers, either directly or through a wholesaler, and then
sells smaller quantities to the end-user. Retail establishments are often called
shops or stores. Retailers are at the end of the supply chain. Manufacturing
marketers see the process of retailing as a necessary part of their overall
distribution strategy.
Retailing involves those companies that are engaged primarily in the
activity of purchasing products from other organisations with the intent to resell
those goods to the final customer, generally without transformation, and
rendering services incidental to the sale of merchandise. The retailing process is
the final step in the distribution of merchandise; retailers are therefore organised
to sell merchandise in small quantities to the general public. The services added
to the products commonly include transportation and stock keeping ensuring that
the products are available at the point of sale. However, the process also
encompasses the selection of products for a retail assortment, the provision of
sales advice, after sales service and many other functions.
The Wheel of Retailing:

Fig. 2.2
The Retail Life Cycle:
Fig.2.3

Characteristics of Retail Formats:
Table 2.1
Branding Strategies at different companies:
Table 2.2

Differently positioned retailers in The Price-Quality Space:
Fig. 2.4
Marketing Mix:
1) Place:
Table 2.3

Factors for deciding Location:
Table 2.4
Location Positioning:
Fig 2.5

2) Product or Merchandise:
Merchandise Mix
The product assortment is the core of the retailing service. A retailer’s total
product offering is called a merchandise mix or product range. At a strategic
level, merchandise management includes the process of selecting the right items
for a store and, at an operational level, ensuring that they are available when
customers want to purchase them.
Items in the assortment are organised into groups, the so called
categories. Merchandise planning encompasses selecting the right categories
and the items within them. The selection of the appropriate items for a store
refers to the breadth and depth of the assortment, quality levels and the brand
portfolio.
The lowest level of detail identifying a product in the retailer’s assortment is the
stock keeping unit (SKU), which identifies a particular item. For example, a pair
of pants of a certain brand, in a particular style, colour, and size, is one SKU. The
number of SKUs at various retailers varies tremendously. While hard discounters
often carry less than 1,000 SKUs, a typical hypermarket assortment accumulates
to around 100,000 SKUs. Items in the assortment can be grouped in terms of
many different criteria. The product life cycle is one important classification
criterion: -
• Staple merchandise consists of those products that are carried
permanently by the retailer and that have relatively stable sales over time.

A hammer or a paint brush at a DIY retailer or jeans and white T shirts at a
department store would be examples of staple goods.
• Fashion merchandise refers to products that have cyclical sales due to
changing tastes and lifestyles. Colours and cuts of clothing change and
merchandise offered this year is usually out of date next year.
• Seasonal merchandise consists of products that do not sell equally well
over consecutive time periods. Barbecue grills, skiing equipment, short
pants and similar products have very high sales during one season of the
year, but are not sold at all in other seasons.
• Fad merchandise generates very high sales for a short time period. Often,
toys and games, certain clothing accessories, or certain music CDs are
fads. Tamagochis and Pokémons, for instance, were classic fads. Movie
merchandise (e.g. Batman accessories) also constitutes typical fads. Price
sensitivity is often very low and ensuring supply, while demand is high, is
crucial for success.
The Category Management Process:
Fig. 2.6

The Merchandise Mix: Breadth and Depth of Assortment:
Fig. 2.7
3) Price:
Pricing in general and price promotions in particular have always been an
important marketing instrument in retailing and, up to the present, price has
played a very important role in retail marketing. However, it is precisely this focus
on price reductions, often based more on belief and intuition on the part of the
retailer, than on facts and knowledge about its effects that makes pricing a field
of considerable strategic importance today. In many countries, retailer profit
margins are very low. In food retailing, it is about 1 % of sales, so that a product
that is sold for 1.00 EUR leaves the retailer with an average profit of 1 cent. This
means that by increasing this price by only 1 %, profits could double–if
consumers continue to purchase roughly the same amount of this product.
Consequently, the profitability potential of pricing is considered to be substantial.

Methods of Price Setting:
Methods of Price
Setting in Retail
Cost-oriented Competition- Demand-oriented

Pricing oriented Pricing Pricing
Fig. 2.8
a) Cost-Oriented Pricing: The most commonly used method for determining
retail prices is the cost oriented method, also called cost plus pricing.
Here, a fixed percentage (the markup) is added to the cost of products in
order to determine the final retail price:
b) Competition-Oriented Pricing: In competition oriented pricing, the
retailer identifies his main competitors and sets his prices accordingly.
Many retailers systematically monitor prices in their competitors’ outlets.
Depending on the pricing strategy, prices for certain products are then
established at or below the competitors’ price.
c) Demand-Oriented Pricing: With demand oriented pricing, the retailer
bases his prices on consumer demand. The sensitivity of consumers to
price changes is an important coefficient for setting a demand oriented
price. The price elasticity (more precisely: own price elasticity) of demand
is a measure of consumer sensitivity to price. It measures the
responsiveness of quantity demanded to a change in price:

Price Differentiation: Price differentiation means charging different customers
different prices for the same product. The extreme case is negotiating the price
with each customer individually. In some retailing industries, such as
automobiles, such flexible pricing based on negotiations is standard and the
prices actually paid vary greatly. While in the service industry (for example, movie
theatres), prices for students or senior citizens are often lower, this is not usually
implemented by retailers. Here, geographic price differentiation is the most
commonly applied approach.
Dynamics of Pricing: HiLo Vs. ELDP:
HiLo (High-Low) Policy: - With a HiLo pricing strategy, retailers have
relatively high regular prices, but use substantial temporary price reductions to
advertise their products and draw customers into the stores. Many supermarkets
use this strategy. Price promotions can be regarded as a method of price
differentiation through customer self-selection.
HiLo pricing is often criticised for encouraging customer disloyalty and
appeal to smart shoppers who only buy items on special prices. Especially for
intensive HiLo strategies, this can lead to reduced profits of the retailer.
ELDP (Every-Day-Low-Price) Policy: - The alternative is an EDLP
strategy, for which prices remain stable over a long period of time. It involves
offering consistently low prices. Wal-Mart is an important example of such a
strategy.

EDLP has high price transparency, and thus can only be implemented
successfully if the retailer has a very low cost structure. EDLP makes price
comparisons much easier for consumers (and competitors) than a HiLo policy. An
EDLP retailer must, therefore, have a very low retail price for most of his
products and only the most efficient retailers will be able to sustain this in the
long run.
4) Promotion:
Store Design and Layout:
Types of Store Layout
Fig. 2.9
Grid Store Layout: A grid store layout is characterized by long parallel
aisles, with merchandise on shelves on both sides. This layout channels
customer flow and it is often not very stimulating, but it is well suited for shopping
trips in which customers need to easily locate certain products and basically
move through the entire store. Self-service is rather easy, and the shopping

process for customers often fast and efficient. Space is utilised to a large extent.
Supermarkets, drugstores and other retailers of fast-moving consumer goods
normally adopt this layout.
Free-Form Store Layout: A free-form layout (also called free-flow layout)
follows an irregular pattern which allows customers a free choice of movement in
certain areas of the store and along certain paths. It allows for more relaxed and
unregimented shopping. However, it may require salespersons to aid the
customer to find certain products. This style is found in many clothing stores.
Grouping of Store Offerings:
Merchandise
Grouping
Item-Oriented Theme-Oriented Brand-Oriented

Presentation Presentation Presentation
Fig. 2.10
In item-oriented presentation similar products are grouped according to
their types. In theme-oriented presentation the whole range or collection of
products is displayed and grouped together like festivals, marriages, etc. And,
finally in brand-oriented presentation products of a common brand are grouped
together at one place in the store.

Store Design and Store Atmosphere:
Visual
elements
(Colour,
Brightness,
Size and
Shape)
Gustatory Aural
elements elements
(Extra- (Background
services in Music and
normal Senses Audio
shopping)
affecting advertising)
Consumer
Behaviour
Tactile Olfactory
elements elements
(Floor (Various
Material and types Scents
Sensation of in store)
touching)
Fig. 2.11
In the figure above it is shown that how the above mentioned five factors
affects the senses of consumer who step into the store. These are some of the
very important factors that must be considered while making a store and planning
for the beauty of its ambience.

Customer Relationship Lifecycle:
Fig. 2.12
Types of Customer Loyalty:
Fig. 2.13

Latent Loyalty: While a positive attitude is an important objective, attitude
does not necessarily correspond with behaviour and latent loyalty can occur.
Situational influences can form a barrier between attitude and behaviour. For
example, people can have a very positive attitude towards Tiffany’s, but not be
able to buy there. Alternatively, they may feel very positively towards Harrods in
London, but live hundreds of miles away. Ultimately, however, retailers do not
wish to foster a positive attitude of consumers, but aim at increasing their sales.
True Loyalty: True loyalty, the most favourable position, is signified by
repeat patronage based on a strong relative attitude towards the retailer. Most
definitions of loyalty now include both dimensions, i.e., behavioural loyalty
corresponding with attitudinal loyalty.
Spurious Loyalty: Spurious loyalty refers to a situation, where repeat
patronage is observed, but is not based on a strong positive attitude towards the
retailer. For example, a lack of alternatives in the area can result in store
patronage without having anything to do with positive attitudes. Habitual
purchasing behaviour might have the same effect.
Retail design:
Retail design is a creative and commercial discipline that combines and
utilizes many different design concepts together in the conceptualizing and
construction of retail space. Retail design is primarily a specialized practice of
architecture and interior design, however it also largely incorporates interior
decoration, graphic design, ergonomics, and advertising.

Retail design is a very specialized discipline due to the heavy demands
placed on retail space. Because the primary purpose of retail space is to stock
and sell product to consumers, the spaces must be designed in a way that
promotes an enjoyable and hassle-free shopping experience for the consumer.
The space must be specially-tailored to the kind of product being sold in that
space; for example, a bookstore requires many large shelving units to
accommodate small products that can be arranged categorically while a clothing
store requires more open space to fully display product.
Retail spaces, especially when they form part of a retail chain, must also
be designed to draw people into the space to shop. The storefront must act as a
billboard for the store, often employing large display windows that allow shoppers
to see into the space and the product inside. In the case of a retail chain, the
individual spaces must be unified in their design.
Retail types:
Fig. 2.14: A Retail Store

There are three major types of retailing: -
The first is the market, a physical location where buyers and sellers
converge. Usually this is done in town squares, sidewalks or designated streets
and may involve the construction of temporary structures (market stalls).
The second form is shop or store trading. Some shops use counter-
service, where goods are out of reach of buyers, and must be obtained from the
seller. This type of retail is common for small expensive items (e.g. jewelry) and
controlled items like medicine and liquor. Self-service, where goods may be
handled and examined prior to purchase, has become more common since the
Twentieth Century.
A third form of retail is virtual retail, where products are ordered via mail,
telephone or online without having been examined physically but instead in a
catalog, on television or on a website. Sometimes this kind of retailing replicates
existing retail types such as online shops or virtual marketplaces such as eBay or
Amazon.

Retailing in India 3
The retailing industry in India estimated at Rs 9,30,000 crore (2003-04) is
expected to grow at 5% p.a. In line with predictions made in 2002, organised
retailing is well on its way to become a Rs 35,000 crore market by 2005. The size
of organised retailing market stands at RS 28,000 crore in 2004, thereby, making
up a mere 3% of the total retailing market.
Moving forward, organised retailing is projected to grow at the rate of 25-
30% p.a. and is estimated to reach over an astounding Rs 100,000 crore by
2010. Its contribution to total retailing sales is likely to rise to 9% by the end of
the decade.
Let’s see the development of retail in India: -
Fig. 3.1

Currently Indian retail is seen as ‘The Goldmine’ for the investors and big
retailers. It is expected that the current retail market is about $ 350 billion out of
which $ 8 billion is of organised retail only. There are over 13 million kirana stores
and over 80 per cent of them operate in 500 sq ft only.
In this scenario of feverish activity, this report aims to map the global
scene of the Indian retail Industry. It looks at the factors that have been fuelling
this boom so far and what will drive the growth of the industry in the future. Urban
India represents only a fraction of the opportunity that the retail sector can hope
to exploit. Significant portion of future growth has to come from the rural market.
This report takes a look at the modern retailing formats being experimented with,
both in the cities and the countryside and highlights how they are different from
one another.
To fully harness the potential benefits that a huge leap in retail can offer to
all its stakeholders in India, the roadblocks in its way have to be removed. This
report analyses the issues that currently impede the realisation of the maximum
progress possible. It also tries to come up with recommendations that, if
implemented, can provide a fillip to the current growth rate of the industry and
truly make the Indian Retail Revolution a success story that the world will have to
sit up and take notice of.
1. Introduction
Retailing is the final step in the distribution of merchandise - the last link in
the Supply Chain - connecting the bulk producers of commodities to the final

consumers. It covers diverse products such as food, apparels, consumer goods,
financial services and leisure.
1.1 Retail Value Proposition
The value proposition that retail offers to a consumer is easy availability of
the desired product in the desired size at the desired time.
1.2 Retailing in India
• Total Consumer Spend in the Year 03-04 - INR 9300 billion (USD 375
billion) growing over 5% annually
• Retail sales - 55% at INR 280 billion (USD 205 billion)
• Organised Retail - Only 3% but growing at 30%
• Organised retail to cross INR 1000 billion mark by 2010
• INR 200 billion investment in the pipeline
• Top 6 cities account for 66% of total organized retailing
1.3 Trends Affecting Indian Retail Industry
• Changing age profile & Disintegration of joint family: - India is believed to
have an average age of 24 years for its population as against 36 years for
the USA and 30 years for China. A younger population tends to have
higher aspirations and spends more as it enters the earning phase. Also,
nuclearisation of families has led to enhanced demand.
• Growing disposable income: - More Indian households are getting added
to the consuming class with the growth in income levels. Also, with
declining interest rates, the aversion of domestic consumers to taking
loans is also fast disappearing.

• Globalisation: - Growing media penetration is leading to a convergence of
aspirations of various classes of consumers, bridging the rural-urban
divide. The modern consumer cannot be satisfied by any product or
service that is lesser in quality than the best offered in any other place on
the globe.
Till 1980s, India knew only kirana stores. Things started to change slowly
after that, with companies like Bombay Dyeing, Raymond's, S Kumar's and
Grasim opening their company owned outlets. Later on, Titan, maker of premium
watches, successfully created an organized retailing concept in India by
establishing a series of elegant showrooms.
In recent years in line with the global retail scenario, India has seen
different retail formats being experimented with.
2. Retail Formats
Broadly, the organized retail sector can be divided into 2 segments.
• In-store Retailers: Operate through fixed point of sale outlets located and
designed to attract a high volume of walk-in customers. Also referred to as
brick-and mortar format.
• Non-store Retailers: Reach out to the customers at their homes or offices
through direct selling, tele marketing and e-commerce.
• Retail Organisations
Major formats of In-store retailers have been listed in Table below: -

Format Description Value Proposition

Branded Stores Exclusive showrooms either Complete range available
owned or franchised out by a for a given brand, Certified

(Exclusive Outlets)
manufacturer. product quality.
Specialty Stores (Multi- Focus on a specific consumer Greater choice to the
need, carry most of the brands consumer, comparison

Brand)
available. between brands possible.
Departmental Stores Large stores having a wide One stop shop catering to
variety of products, organized varied consumer needs,
into different departments, such service as differentiator.
as clothing, house wares, toys,
etc.
Supermarkets Extremely large self-services One stop shop catering to
retail outlets. varied consumer needs.

Discount Stores Stores offering discounts on the Low prices.
retail price through selling high
volumes and reaping the
economies of scale.
Hyper-Mart Larger than a Supermarket, Low prices, vast choice
sometimes with a warehouse available including services
appearance, generally located in as cafeterias.
quieter parts of city.

Convenience Stores Small self-service formats Convenient location and
located in crowded urban areas. extended operating hours.

Shopping Malls An enclosure having different Variety of shops available
formats of in-store retailers all close to each other.
under one roof.

Cash-n-carry B2B format where seller sells to Convenient Buying.
shopping establishments and
large institutional customers.

Table 3.1

Of the Top-200 Global Retailers, 21% of retailers fall in the specialty stores
category, followed by 18% in supermarket, 12% in department and 9% each in
hypermarket and discount stores.
2.1 Retail Formats in India
Indian retail formats can be classified into two distinct formats:
Traditional Formats include: -
• Kiranas: Traditional Mom and Pop Stores.
• Kiosks.
• Street Markets.
• Exclusive / Multiple Brand Outlets.
Modern Formats include: -
• Supermarkets such as Foodworld.
• Hypermarkets such as Big Bazar, Giant, Shoprite, Star.
• Department Stores such as Shoppers Stop, Lifestyle, Pantaloons,
Piramyds, Trent.
• Speciality Chains such as Ikea.
• Company Owned / Operated such as Bata, Sony.
Forecourt Retailing: -This concept recently shot into limelight with oil companies
trying to milk this revenue stream for more moolah. Apart from dispensing fuel,
the stores offer value added services to busy consumers. This strategy is
currently aggressively being pursued by IOC, BPCL, HPCL and Reliance.
Trade Parks: - A new emerging concept in retailing is the establishment of
business complexes particularly for international trade. Some of the examples

are India Exposition Mart set up by Handicraft Export Promotion Council in
Greater Noida, International Home Deco Park (IHDP) set up by a group of private
investors in Noida and World Trade Park coming up in Jaipur. IHDP will provide
International buyers ready access to 60 world class exporters from India in the
Home Furnishings category. This would be beneficial to buyers as they would not
have to go to remote towns (where the infrastructure is not good) to see the
designs and samples of exporters. Exporters apart from getting increased
visibility will also get other facilities such as design library, design studio,
forwarding services and so on. The parks are built to promote trade and are open
to international buyers and buying houses only.
2.2 Retail Format Model for India
The key to a winning retail format is to follow a model that suits the Indian
consumer behaviour. One big undisputable fact is that almost all retail players
(especially in food) have been region-specific. So whether it is FoodWorld,
Nilgiris, Margin Free Market, Giant, Varkey's and Subhiksha in the South, Sabka
Bazaar only in and around Delhi, Haiko in Mumbai or Ahmedabad-based Adani,
they have clearly battled with scalability.
Issues to be tackled
Scaling has multiple implications. Ideally, it is an attempt to increase
market share/ revenues or growth. But the issues are:
• How does it affect operations?

• Does it mean reduction in assortment, shift to standardisation and reduced
customisation?
• Where to scale, up, down or out?
• When to scale?
• Should a FoodWorld replicate its South-based format in a Delhi?
• And what happens when it wants to go to other 10 million+ towns?
• And then lower down the pop strata?
• More real estate space is available in smaller towns, but do the footfalls
justify the bigger box format?
Need for multiple formats
Clearly, a retailer needs different formats for different town classes - but
then what happens to economies of scale via standardization? A good way out is
the way the RPG group is treating its Music World stores - flagship vs. smaller vs.
the express outlets located in, say, a FoodWorld. Similarly, the way ABC has
defined Café Coffee Day outlets - flagship vs. takeaway.
Most of the global powerhouses in the retailing sector such as Wal-Mart,
Carrefour, Tesco, etc have adopted multi-format and multi-product strategies in
order to customize their product offering for distinct target segments:
Retailer Formats Product Categories

Wal-Mart Discount, Hypermarkets, Food & Grocery, Furniture &
Warehouse Clubs, Furnishings, Auto Services, General
Neighbourhood Stores, Merchandise, Electricals, Financial

Convenience Stores Services, Appliances, etc.

Supermarkets, Hypermarkets,
Food & Grocery, General
Neighbourhood Stores,
Tesco Merchandise, Clothing, Home
Convenience Stores, Internet,
Products, Fuel, Automobile, etc.
Catalogue
Hypermarkets, Convenience Food & Grocery, Clothing, General
Carrefour
Stores, Supermarkets Merchandise, etc.
Table 3.2
In line with the global evolution, Indian Retailing has also witnessed a
series of experiments across the country with new format being tested out; old
ones tweaked around or just discarded. Some of these are listed in the table
below: -
Retailer Old Format New Format Experimented With

Shoppers' Stop Department Store Quasi-mall
Quasi-mall, smaller outlets, adding food
Ebony Department Store
retail
Crossword Large Bookstore Corner shops
Piramyd Department Store Quasi-mall, food retail
Pantaloon Own Brand Store Hypermarket
Subhiksha Supermarket Considering moving to self service
Vitan Supermarket Suburban discount store
Food
Foodworld Hypermarket, Foodworld express
Supermarket
Globus Department Store Small fashion stores
Table 3.3
The above-mentioned modern formats of retailing have not as yet served
the rural consumer. However, off late, some private players like ITC, HLL and
DSCL are trying out innovative methods of retailing in rural India.
3. Indian Rural Market

3.1 Opportunity
The importance of the rural market is underlined by the fact that the rural
market accounts for close to 70 per cent of toilet-soap users, 38 per cent of all
two-wheeler, half of all TV sets, fans, pressure cookers, bicycles, tea, salt and
toothpowder sold. What is more, the rural market for FMCG products is growing
much faster than the urban counterpart.
3.2 Problems in Rural Marketing
Although the rural market does offer a vast untapped potential, it should
also be recognized that it is not that easy to operate in rural market because of
several obstacles. The major problems faced are: -
• Underdeveloped people markets
• Lack of proper communication facilities
• Poor media reach
• Many languages and dialects
• Dispersed market
• Low per capita income
• Low levels of literacy
• Prevalence of spurious brands and seasonal demand
3.3 Understanding the Market
Rural marketing is a time consuming affair and requires considerable
investments in terms of evolving appropriate strategies with a view to tackle the

problems. The alternative 4As Model when applied to the rural retailing scenario
comes up with the following challenges: -
• Availability: - India's 627,000 villages are spread over 3.2 million sq km.
However, given the poor state of roads, it is an even greater challenge to
regularly reach products to the far-flung villages. To service remote
villages, stockists use auto-rickshaws, bullock-carts and even boats in the
backwaters of Kerala.
• Affordability: - With low disposable incomes, products need to be
affordable to the rural consumer, most of who are on daily wages. Some
companies have addressed the affordability problem by introducing small
unit packs.
• Acceptability: - There is a need to offer products that suit the rural market.
Because of the lack of electricity and refrigerators in the rural areas, Coca-
Cola provides low-cost ice-boxes - a tin box for new outlets and thermocol
box for seasonal outlets.
• Awareness: - Mass media is able to reach only to 57% of the rural
population. Creating awareness then, means utilizing targeted,
unconventional media including ambient media. For generating
awareness, events like fairs and festivals, Haats, etc., are used as
occasions for brand communication.
3.4 Developments in Rural Retailing

• ITC's Chaupal Sagar: - Chaupal Sagar is one of the first organised retail
forays into the hinterland. It has been initiated as rural shopping-cum-
information centres in Madhya Pradesh. The first rural mall has come up
40 kilometres from Bhopal towards Sehore. Chaupal Sagar offers almost
everything - from toothpastes to televisions, hair oils to motorcycles,
mixer-grinders to water pumps, shirts to fertilizers. Most of the brands it
sells are national such as Marico, LG, Philips, torches from Eveready,
shirts from ITC's apparel business, bikes from TVS, and tractors from
Eicher.
o Some other facilities on offer include: -
o Banking and automated teller machines
o Insurance products for farmers
o Entertainment facilities
o Restaurants
o Fuel pump in tie-up with BPCL
o Cafeteria
o Parking lot for 160 tractors
o Primary healthcare facility
o Information centres
o Training facility on modern farm techniques
o Godowns for storing the wheat and soybean and also for stocking
products retailed at the mall

• DSCL's Haryali Bazaars: - Having successfully pioneered a new concept
of Haryali Kissan Bazaars in 2002 in Hardoi, agri-inputs focused DCM
Sriram Consolidated Ltd. (DSCL) opened eight more (Ladwa in Haryana,
Ferozepur in Punjab, Kota in Rajasthan and four locations in UP).
The store complex is spread over 2-3 acres and caters to all the
farmers requirements (both DCM Sriram products & other sources): farm
inputs ((fertilizers, seeds, pesticides, animal feed), farm implements, spare
parts, irrigation equipment, spraying equipment. Twenty such stores, each
catering to 100 villages, are planned by the end of 2005.
• HUL's Project Shakti: - Project Shakti is Hindustan Unilever Ltd's (HUL)
rural self-help group initiative to push the penetration of its products to
reach areas of low access and low market potential.
To get started the Shakti woman borrows from her "Self Help
Group" and the company itself chooses only one person. A Shakti
entrepreneur receives stocks at her doorstep from the HUL rural distributor
and sells direct to consumers as well as to other retailers in the village.
Each Shakti entrepreneur services 6-10 villages in the population strata of
1,000 - 2,000 people.
The women avail of micro-credit through banks. Some of the
established Shakti dealers are now selling Rs. 10,000 - Rs. 15,000 worth
of products a month and making a gross profit of Rs. 700 - Rs. 1,000 a
month. The company is creating demand for its products by having its
Shakti dealers educating consumers on aspects like health and hygiene.

• Others are: - Marico launched a major initiative into rural markets by
appointing 2,400 sub-stockists in the last two years. Recently, Dabur
recently finished a pilot project for its super-stockists in Patna and has
now rolled it out in Bihar, Madhya Pradesh and Rajasthan. Reckitt has
also adopted the super-stockist system in Tamil Nadu and plans to set up
such a system all over the country in the next year, with the target of
covering one million outlets in the next three years.
3.5 The Rural Remedy
The business model for rural retail can be successful only when
integration between the profit and social motive is apparent. The social angle
needs to be pronounced for it to be acceptable. The model should empower the
rural consumer and at the same time take advantage of this empowerment
through creation of demand for its own products and that of its partners.
The roadblocks in the way of retail revolution hamper the growth of the
industry both in urban and rural areas. These bottlenecks if not removed have
the potential to retard the rapid progress that this sector has been witnessing.
4. Regulations in Retail Industry
The policy environment is currently seen to be unfavourable to organised
retailing. Some of the impediments to growth of retail include the following: -
4.1 Restrictions on FDI
Recent indications that the government is considering foreign direct
investment in retail trade have sparked off a debate on the advisability and

consequence of this policy. At present, foreign direct investment (FDI) in pure
retailing is not permitted under Indian law.
Some of the areas in retailing that will be affected by FDI are as follows: -
• Creating Additional Jobs
• Diminution of Kirana Shops and Retail Stores
• Access to Larger Financial Resources
• Benefit to Consumers
• Supplier Quality Enhancements
• Enhanced Supply Chain
• Increased Exports
• WTOs Cross Retaliation
Verdict on FDI: - Market is an important asset. It needs to be protected the way
other assets are protected. However, it is clear that FDI in retail trade will lead to
incremental economic benefits and not substitute on-going activities. Any
strategy in the direction of FDI should ensure that domestic players are not
unduly displaced and sufficient opportunities are available for the growth of
domestic players. Therefore, the strategy should be controlled release of
restrictions on FDI. Percentage of FDI allowed should be increased in small
amounts and for specific commodities at every step. Constructive suggestions
and inputs from all stakeholders should be taken in shaping the policy.
The government of India is looking for a tear-free FDI in retail. They have
allowed 51 per cent equity ownership to single-brand retailers and thinking for

allowing FDI but with full preparation to save the small retailers and the loss of
jobs in the country.
Greater Consumer
Greater Per
Spending due to
Capita Income
economic boom
GDP Growth
Employ Benefits Greater

ment to Govt. Exports
Increasing Greater
Tax Paying Sourcing
Increased Tax
Population From India
Revenues
Reduced Tax
Evasion
Benefits to government by FDI in Retail
Fig 3.2
4.2 Land and property Laws
There is a shortage of good quality retail space, and rents are high for
what is available. Compounding these shortages are the following problems: -
Only Indians can own property in India, which complimenting the restrictions
placed on FDI, restrict the entry of foreign players.
Stamp duties on property deals are significant. The lease alone can cost
up to 6-10 per cent of sales while it's just 3-5 per cent globally.
The initial urban planning of cities was done with smaller plots in mind which
along with rigid building and zoning laws make it difficult for procurement of retail
space.

The urban land ceiling act and rent control acts have distorted property
markets in cities, leading to exceptionally high property prices.
4.3 Labour Laws
The labour laws instituted to protect store workers are not flexible enough
to support the modern formats of retailing. These rigidities in the law constrain
the operations of modern retail outlets. Working hours are restricted, with shops
required to close one day of the week and the hiring of part-time employees is
difficult.
4.4 Taxes
Effective corporate tax rate is 36.59% for a local company and 41.82% for
a foreign company. Even essential basic foodstuffs are taxed.
The varying sales tax rate across states makes supply chain management an
even more difficult task for retailers. However, with the introduction of Value
Added Tax (VAT) across all states, some of the sales tax anomalies in the supply
chain could get correct over a period of time.
5. The Revolution Ahead
The last few years have seen rapid transformation in many areas like: -
Scalable and profitable retail models are well established for most of the
categories
Indian consumers are rapidly evolving and accepting modern formats
overwhelmingly
• Retail space is no more a constraint for growth
• India is on the radar of global retailers

• Suppliers / brands are willing to partner with retailers
• Notwithstanding some stumbling blocks, no one can mistake the immense
potential of the boom in the domestic retail sector.
• Given the size and the purchasing power of the Indian consumer, the road
ahead can only get smoother and it is only a matter of time before the
domestic retail industry is on par with its western counterparts.
Some major Retail Development plans in India: -
1. Reliance Retail Limited (RRL) recently announced the launch of its second
specialty store ‘Reliance TimeOut’ at Ambience Mall, Gurgaon having the
area of 41,000 sq ft. and over one lakh products (books, music, stationery,
toys and gifts).
2. ‘Wellness World’ of T. Spiritual Ltd. in the NCR region.
3. Luxor Group and Reliance Retail enter a Joint Venture to open new outlets
and inclusion of Luxor writing instruments in Reliance TimeOut. Luxor is
planning to increase its ‘Signature’ and ‘The World of Luxor’ stores by
opening 100 new stores by 2009.
4. FitnessOne on expansion in the south with F1@Home.
5. In the Indian Retail Summit Adlabs Cinemas bags ‘Retailer of the Year’
award.
6. Reebok focuses on kids wear and lifestyle segment and plans to increase
the number of retail outlets from 580 to 750 by the end of year 2008.
7. Tata Tea forays into retail with Chai Unchai outlet at IIM, Bangalore.

8. Microsoft India is in advanced talks with 10 leading Indian retailers to roll
out its next generation automated retail tools.
9. Reliance Retail Ltd (RRL) launched the third outlet of its specialty store
‘Reliance Footprint’ at Star City Mall, New Delhi. It is spread over 7,500 sq
ft and has a range of over 2,500 products.
10. RIL Retail forays into lifestyle, entertainment. Reliance Retail aims to add
1.5 lakh sq ft of retail space every month.
11. Bata India Ltd introduced Westminster, an international range of
handcrafted formal shoes for men.
12. Blue Dart bags retail logistics award.
13. Louis Phillipe brings in fashion formals for global generation.
14. Barista to open first highway café on Bangalore-Mysore road of 6,000 sq
ft.
15. Arvind Mills to invest Rs 400 crore in Retail.
16. Swarovski India opens largest boutique in India in the area of 1,500 sq ft.
17. Gitanjali acquires Nakshatra.
18. Achal Cashews Private Ltd, a group company of Achal Industries (a
cashew processor and exporter), has forayed into the retail sales of
almonds.
19. Spencer’s has big plans for Kerala.
20. Home Solutions has an expansion plan of Rs 450 crore to 500 crore.
21. Wadhawan enters into lifestyle retail.

22. Jodhpur Maharaja Gaj Singh II joins hand with Stadia Infrastructure to set
up Majestic Stadia in Sun City, Jodhpur.
23. Corporate Park, first premium biz centre in Jaipur, by September.
24. Tata Nano, people’s car, on road soon.
25. Dabur & Spain’s EatOut in restaurant foray.
Mall development in India: -
Infancy Development Maturity Decline
Bangladesh, South East Asia,

Sri Lanka Middle East
China, India USA, UK
Phase I Phase II Phase III Phase IV
Fig. 3.3
From the above life cycle of shopping malls it will be clear to you that India
is in the Development Stage whereas USA and UK are in the decline stage that’s
why they are now focusing on the countries which are in the infancy and
development stage. And India and China have become the favorite investment
spots in the retail industry in the world because here the percentage of
unorganised market is still very large.

Region-Wise Mall Development - 2005 Region-Wise Mall Development - 2006
East South East

14% 4%
South 5%
22%
North
North 42%
44% West
40%
West
29%
Fig. 3.4
The above have clearly shown that the western part has grown the most in
terms mall development in India.
Fig. 3.5
The above graph shows clearly that the food and grocery industry is
growing at a rapid speed of 91%, clothing comes at the second place with 55%
and furniture & fixtures and pharmacy grows with 27%. The reason for the growth
of food and grocery at the highest pace is that it the fastest consumable product
in the market and cannot be stored for a longer period of time except some of the

dry foods. So the company’s are showing their interest in this field to earn a good
profit easily.
Fig 3.6
Indian Retail Vs World Retail: -
• Indian retail is fragmented with over 12 million outlets operating in the
country. This is in comparison to 0.9 million outlets in USA, catering to
more than 13 times of the total retail market size as compared to India.

• India has the highest number of outlets per capita in the world - widely
spread retail network but with the lowest per capita retail space (@ 2 sq.
ft. per person).
• Annual turnover of Wal-Mart (Sales in 2001 were $219 billion) is higher
than the size of Indian retail industry almost 100 times more than the
turnover of HUL which is, India's largest FMCG Company.
• Wal-Mart - over 4,800 stores (over 47 million square meters) where as
none of India's large format store (Shoppers' Stop, Westside, Lifestyle)
can compare.
• The sales per hour of $22 million are incomparable to any retailer in the
world. Number of employees in Wal-Mart is about 1.3 million where as the
entire Indian retail industry employs about three million people.
• One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two
third of HUL's annual turnover.
• Developed economies like the U.S. employ between 10 and 11 percent of
their workforce in retailing (against 7 percent employed in India today).
• 60% of retailers in India feel that the multiple format approach will be
successful here whereas in US 34 of the fastest-growing 50 retailers have
just one format
• Inventory turns ratio: measures efficiency of operations. The U.S. retail
sector has an average inventory turns ratio of about 18. Many Indian
retailers KPMG surveyed have inventory turns levels between 4 and 10.

• Global best-practice retailers can achieve more than 95 percent
availability of all SKUs on the retail shelves (translating into a stock-out
level of less than 5 %).The stock-out levels among Indian retailers
surveyed ranged from 5 to 15 percent.

Latest Retail Players, Trends & Brands 4
India’s position globally, more particularly in the Asian region, in the race
for organising the retail sector, still way behind. In India, only about four per cent
of the entire retail sector is organised while the figure is at least a double digit in
Asian countries like China, Thailand and Singapore.
Nonetheless, India’s retail sector offers far more potential than most other
countries. Observing the huge potential and opportunities therein, big overseas
investors and retailers like Tesco, Carrefour, Wal-Mart, despite FDI barriers, are
making efforts to step into the Indian Retail space and market their services and
products. At domestic levels, all the biggies, including Reliance, Bharti, Future
Group and Tata, are engaged in initiating new ventures and expanding existing
retail formats. Premium financial institutions such as ICICI and HDFC have also
joined in the new retail movement by extending finance in retail ventures.
The potential might of India’s retail sector is not without reasons. Broadly
speaking, a number of factors account for making the Indian retail sector
potentially huge and viable enough to attract offshore and domestic firms,
including banks. These factors include, rise in income, change in woman’s
lifestyle, liberalisation and globalisation, consumerism, entrepreneurial spirit
among new-age Indians, increased awareness about brands, changing lifestyles
and high aspirations, improvement in rural markets and population growth,
particularly of the middle-income slot.

Interesting, while the GDP contribution of the Indian retail sector is around
10 per cent, which is higher than any other country’s, employment in the sector is
eight per cent. This amounts to the sector’s bigger role and responsibility in the
sub-continent than other countries.
At present, the organised retail sector is in its initial stages of
development. But driven by compelling needs, be they infrastructure, technology,
size, manpower or quality, the sector is fast getting organised. As it grows, it will
generate more revenue, more employment and upgrade its allied sectors giving a
boost to the country’s economy.
But, then, what are the forces instrumental for the progress of the
industry? Unarguably, they are people and organizations, for, without them, it
would be difficult to even imagine the existence of the sector.
Professionals in the sector are focused on future and command the
progress and development of the sector. Their contributions have elevated the
sector to a never-seen-before status ushering in the ongoing revolution. Without
any doubt, these visionaries have helped in shaping India for a better tomorrow.
Judging by the present pace of progress, India can attain, in a couple of years, its
goal of being one of the top-most global markets in the world.
What identifies a company, in most cases, is its brand, and, a brand, in a
way, is an interface between the company and customers. Shoppers relate to
brands more easily than to manufacturers. Today’s consumers are brand-
conscious and like to buy brands that speak out their individual personalities,
identities and attitudes. Brands are indeed the face of the company, and a

positive image of a brand will attract customers and thereby help the company
generate more revenue.
Most Powerful People in Retail
• Ratan N Tata (Chairman, Tata)
Ratan Tata is the great grandson of Tata group founder, Jamsetji
Tata. He joined the Tata Group in December 1962, when he was sent to
Jamshedpur to work at Tata Steel. In 1981, Mr. Tata was named Chairman
of Tata Industries and, in 1991, he took over as group chairman from JRD
Tata. Under Mr. Tata’s guidance, Tata Consultancy Services went public
and Tata Motors was listed on the New York Stock Exchange. His dream
was to manufacture a car costing Rs 100,000 (1998: approximately
$2,200; today: $2,258). He realized his dream by launching the car in New
Delhi Auto Expo on January 10, 2008. The car is expected to be sold to
the public from December 2008 onwards.
• Mukesh Ambani (Chairman and MD, Reliance Industries Limited)
He joined Reliance in 1981 and initiated Reliance’s backward
integration from textiles into polyester fibres and, further, into
petrochemicals. In December 2007, following a strong share price rally in
his three group companies viz. India’s most valued firm Reliance
Industries, Reliance Petroleum and Reliance Industrial Infrastructure, the
net worth of Mukesh Ambani rose to $63.2 billion (Rs 2,49,108 crore). The
retail business wing of Mukesh Ambani’s Reliance Industries, Reliance

Retail is eying on investing Rs 25,000 crore in the coming two to three
years with a motive of complete exploration of retail operations.
• Kishore Biyani (Group CEO, Future Group)
Having a rich experience of 25 years in the industry, Kishore Biyani,
46, is credited for the launch of Home Town, Future Money, Future Media
and Future Logistics. One thing he would like to change in retail industry in
India would be to bring more and more Indians into the fold of modern
retail. His role models include Verghese Kurien, Rahul Bajaj, Sam Walton
and many other great personalities. He believes that India is at a point of
inflection and the years ahead will see new formats, new business models
and new opportunities coming up.
• Kumar Mangalam Birla (Chairman, Aditya Birla Group)
Forty years-old Kumar Mangalam Birla took on, at the age of 28,
the challenge of turning a sprawling and hidebound family business into a
modern conglomerate. He succeeded his father in 1995 when the group
had revenues of Rs 8,000 crore and market capital of Rs 8,000 crore.
Within 10 years, the revenues rose to Rs 33,000 crore and the company
boasts of a market capital of nearly Rs 30,000 crore. Under his
chairmanship, the group has entered into the domestic organised retail
market with an investment of up to Rs 9,000 crore.
• Mukesh Wadhumal Jagtiani (Chairman, Landmark Group)
Mukesh Wadhumal Jagtiani has around 35 years’ experience in
retail industry. He began his career in 1973 with a single store in Bahrain

measuring 5,000 sq ft. Employing 17,500 persons from 35 different
nationalities, the Group has retail presence of six million sq ft with its over
570 stores across 10 countries. In 2007, the Group opened around 140
stores. Other achievements include entering new market (China) with the
opening of two Babyshop stores in Shanghai, launching a new furniture
brand named ‘uniQue’, opening of first ‘SPAR’ branded hypermarket in
Bangalore by Max Hypermarkets through a license agreement with SPAR.
• Sunil Bharti Mittal (Founder, Chairman and Group CEO, Bharti
Enterprises)
Recipient of Padma Bhushan and a graduste from Punjab
University, Chandigarh, Sunil Bharti Mittal started his career at the age of
18 and founded in 1976 Bharti Enterprises with a modest capital. Today, at
50, his enterprise figures among the ‘top five’ in India with a market
capitalisation of over $ 35 billion (approximately Rs 1,400 billion) and
employing over 30,000 people. Bharti has recently forayed into the retail
sector and inked a 50-50 joint venture agreement with world’s biggest
retailer, Wal-Mart for cash-and-carry business in 2006.
• Mehul Choski (Chairman and CEO, Gitanjali Group)
He is known for his keen sense of business excellence, charismatic
leadership initiative and exceptional vision. He joined the group in 1981
and formed, in1985, Gitanjali Gems Ltd, the flagship company of the
group. The Gitanjali Group hlds the largest number of diamond jewellery
brands in India and these include Gili and D’damas. His vision and

excellent foresight led him to craft the Gili brand almost a decade ago
when branded jewellery was still unheard of in India.
• Pia Singh (Director, DLF Ltd.)
A graduate from the Wharton School of Business, University of
Pennsylvania (USA) with a degree in finance, she has worked for the risk-
undertaking department of GE Capital, the investment division of General
Electric, USA. She heads DT Cinemas and is also actively engaged in
developing the company’s luxury and super luxury retail destinations
across 100 locations throughout India.
• Akhil Chaturvedi (Director, Provogue (India) Ltd.)
The co-founder of Provogue, he has broad experience in the field of
marketing of FMCG products. Prior to Provogue, he has worked with
leading MNCs and Indian companies over a span of a decade and has
also worked with Coopers and Lybrand Consulting Group. He is
responsible for business development supply chain management. As on
March 31, 2007, Provogue fashions were available across 98 Provogue
studios and 67 national chain store locations.
• DPS Kohli (Chairman, Koutons Retail India Ltd.)
Having recently been awarded with the title of ‘Udyog Vibhushan fo
Excellence in Industrial Performance’ by the Institute of Trade and
Industrial Development., he has experience of 17 years. He would like to
undo barriers to years. He would like to undo barriers to interstate trade
and exercise a uniform single tax on all goods and services and remove

service tax. He believes that the organised retail in India is potentially the
largest sector. Efficiencies in this sector will lead to gains and welfare. A
10 per cent-reduction in the price of goods through efficiency of retail
means a 10 per cent-increase in the welfare of the entire population.
• Sameer Gehlaut (Chairman and Founder, Indiabulls Group)
A graduate in mechanical engineering from the Indian Institute of
Technology, Delhi, he was one of the three engineers selected by
Haliburton to work for its international services business in the year, 1995.
Under his leadership, Indiabulls (set up in financial year 2000) has grown
from a securities broking company to one of the leading business
conglomerates in the country. He has recently been named the 88th most
influential person in business across Asia-Pacific by Asimoney.
• Ram Chandra Agarwal (CMD, Vishal Retail Ltd.)
Working with Vishal all the way since its inception and having 21
years of experience, various achievements such as receiving Retail
Entrepreneur of the year award go to the credit of Ram Chandra Agarwal.
One thing he would like to change in Indian retail is making VAT uniform
across all the states. He believes retailing in India is witnessing huge
revamping and the latest research has rated India as the top destination
for retailers. The organised retail sector is expected to grow stronger than
GDP in the next five years driven by changing lifestyles, burgeoning
income and favourable demographic outline.
• Sanjay Chandra (MD, Unitech)

At 35, he is one of the youngest and most successful entrepreneurs
in India. He moved outside India to do his graduation and master’s course
in business administration from the University of Massachusetts, USA and
returned in 2002 to join the family business. In 2005, he became the
Managing Director of the company and has been instrumental in creating
and launching several projects in the Indian real estate industry. He has
also taken Unitech beyond the borders by getting Unitech Corporate Park
listed on London Stock Exchange’s Alternative Investment Market (AIM).
He is currently leading the company’s foray into hospitality and airports
development.
Most Powerful Brands in Retail
• Big Bazaar
Big Bazaar, a retail venture of Future Group, is not just another
hypermarket. It caters to every need of the family. Big Bazaar scores over
other stores by its value-for-money proposition for Indian customers. It has
opened the doors into the world if fashion and general merchandise
including home furnishings, utensils, crockery, cutlery, sports goods and
much more at prices that will surprise consumers. The company is now
looking at opening a total of 300 Big Bazaar stores. It has introduced the
neighbourhood concept of retail by opening stores in residential areas. It
will also introduce new business segments such as health and wellness.

Current Stores: 80
Upcoming Stores: 300
• Reliance Fresh
Reliance Retail, the 100 per cent subsidiary of Reliance Industries,
launched Reliance Fresh, the first of its multi-format retail forays involving
an investment of Rs 25,000 crore in Hyderabad in October 2006. In this
format, the focus is on fresh fruits and veggies and staple products that
consumers buy very frequently. As of now, there are 453 Reliance Fresh
stores operational across India. Reliance Fresh sells vegetables and fruits
sourced from farmers through the company’s agri hubs.
Current Stores: 489
Upcoming Stores: 1,000
• Pizza Hut
Pizza Hut of Yum! Brands, Inc. that has also KFC, Taco Bell, A&W
and Long John Silver’s, is a very popular international brand in casual
dine-in restaurant segment. The brand made its foray into India with a
restaurant in Bangalore in June 1996. With 27 per cent market share of
the eating-out market and over 70,000 footfalls per day across the country,
Pizza Hut is geared to create an ideal eating out experience for its
patrons. In India, Pizza Hut has 136 restaurants across 35 cities including
Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune and
Chandigarh. The company plans to double its business in India in the next
three years.

Current Restaurants: 136
• ITC’s Wills Lifestyle
Over the last seven years, ITC’s Lifestyle retailing business division
has established a nationwide retailing presence through its Wills Lifestyle
chain of exclusive specialty stores. Beginning with its initial offering of
Wills Sport relaxed wear from the first store at South Extension, New Delhi
in July 2000, it has expanded its basket of offerings to the premium
consumer with Wills Classic formal wear, Wills Clublife eveningwear and a
tempting range of designer accessories.
Current Stores: 40
Upcoming Stores: 80
• D’damas
Various brands of the group include Nakshatra, Asmi, Sangini,
D’damas. Numerous brands that have made a mark in the Indian milieu
come under the brand, D’damas and these include Forevermark Solitaire,
Glitterati, Collection G, Gold Expressions, Vivaaha, Bollywood Gold and
Inspirations.
• Gili
Gitanjali Group strategically positions itself as the leading diamond
studded jewellery-manufacturing company. Today, it has the largest fully-
integrated diamond and jewellery manufacturing plant in the country. In
1994, the group introduced India’s first ever branded jewellery, Gili. Gili’s
primary brand value is ‘Genuine diamond and gold jewellery at affordable

price’. It is the first jewellery brand that brought diamond jewellery within
the reach of the mass.
• Croma
Croma is a countrywide chain of retail outlets for multi-brand
consumer electronics and durables from Infiniti Retail (a 100 per cent
subsidiary of Tata Sons). Woolworths, Australian retail giant, provides
Croma with technical support and strategic sourcing facilities from its
global retail network. Croma offers to its consumers the country’s widest
range of consumer electronics and durables – over 6,000 products, with
180 brands in eight categories.
Current Stores: 31
• Adidas
Established in 1996, adidas India Marketing Pvt. Ltd is the Indian
subsidiary of adidas Group AG. The adidas Group is one of the global
leaders within the sporting goods industry. Having completed almost a
decade in the country (India), adidas today has a total of 113 exclusive
stores across the country.
Current Stores: 113
Upcoming Stores: 150 - 200
• Titan
Titan Industries is India’s leading manufacturer of watches and
jewellery and the world’s sixth largest manufacturer brand of watches.

Established in 1984 as a joint venture between the Tata Group and Tamil
Nadu Industrial Development Corporation, the company transformed the
Indian watch market, offering quartz technology with international styling.
The company currently manufactures three main watch brands viz.
‘premium segment’, fastrack, and Sonata along with several sub brands
like Titan, Edge, Titan Raga, and Nebula. The company has launched its
first Swiss made watch, Xylys and also markets Tommy Hilfiger brand.
Current Stores: 222
• @home
@home, retail division of 850 crore-company Nilkamal Ltd, is a
market leader in plastic business. Launched in 2005, @home is a chain of
large format retail store. It houses imported furniture, furnishings, home
accessories, lights, kitchens, flooring and all that requires for home décor
and interiors. On the average, size of each @home store measures
22,000 sq ft. In terms of store layout design, ambience and visual
merchandising, the chain offers an international shopping experience in
India. Currently, operating 11 stores in eight metros (including Mumbai,
Bangalore and Chennai) with around two lakh sq ft of retail space, @home
is writing new retailing rules in its category and provides, besides
consultative services, many innovative services including financing.
Current Stores: 11
Upcoming Stores: 70
• Reliance TimeOut

In December 2007, Reliance Retail Ltd launched ‘Reliance
TimeOut’, a one-roof shop for books, music, stationery, toys and gifts.
Spread over 21,000 sq ft of area and housing over 56,000 products, the
outlet offers to customers an extensive range of merchandise in books,
music, stationery, toys and gifts. The company plans to expand into
different locations in the country, including tier I and II cities. In the next
three years, it plans to open 45 stores. The company has launched a pilot
project, under which it opened two stores in Bangalore and Gurgaon, and
the third one would be rolled out at Kochi in March 2008. The first store
with 21,000 sq ft space was opened in Bangalore and the company
proposes to launch the third one in Kochi and it will be spread over 23,000
sq ft area.
Current Stores: 2
Upcoming Stores: 45
• Cygnus
Laxmi Diamond’s jewellery operations span the entire gamut
including sourcing and procurement, cutting and polishing, assorting and
manufacturing. With a turnover of over 1500 crore, Laxmi has sales offices
and jewellery units all over the world. ‘Cygnus’ is a constellation of stars
that is shaped like a swan. The Cygnus brand became, within just four
years, one of the leading jewellery brands in India. In terms of consumer
recognition and overall success, Cygnus is, indeed, within ‘top 3’ jewellery
brands. Cygnus’ distribution module was focused on three distinct

segments: Cygnus fine jewellery stores (24 outlets), shop-in-shops (125)
and traditional outlets (60).
Current Stores: 24
Upcoming Stores: 10
• PVR
Started as a dream in 1997, the multiplex became, within a decade,
a 70 mm reality: The first multiplex, PVR Bangalore, India’s largest ever
multiplex was opened in the form of 11-screener. Today, the chain has 89
screens across the country. Its singular belief is ‘Movies first’. PVR
Cinemas will soon have a very firm national footprint with 250 screens
across the country. PVR plans to open cinemas soon in many cities like
Delhi, Mumbai, Chennai, Jalandhar, Amritsar, Ludhiana, Aurangabad,
Latur and other territories. PVR’s distribution arm, ‘PVR Pictures’, acquires
and distributes Indian and international firms.
Current Stores: 89
• Lifestyle
Lifestyle International (P) Ltd was incorporated in India in 1998. It is
a part of the prestigious USD 1.5 billion Landmark Group (Dubai). Each
Lifestyle store brings together five concepts under one roof apparel,
footwear, children’s wear and toys, furniture and home décor. Positioned
as a trendy, young, colourful and vibrant store, Lifestyle offers consumers
not only just the ease of shopping experience. Currently, there are 18

stores across Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon,
Hyderabad, Jaipur, Mumbai and Pune. The company plans to open 35
Lifestyle stores and 15 Home Centre stores in three years.
Current Stores: 18
Upcoming Stores: 35
• Subway
Founded in 1965 by Fred De Luca and Peter Buck, Subway is a
wholly owned subsidiary of Doctor’s Associates Inc. (DAI). It is the second
largest fast food chain in the world. The company has over 28,788
franchised units in 86 countries in the world. The first Subway restaurant
in India was opened in December of 2001 in the Saket area of New Delhi.
Subway’s growth in India has been very encouraging. During last year,
Subway opened 45 new restaurants.
Current Stores: 112
• More
Aditya Birla Group started with a simple mission, ‘to change the
way Indian shops’. And, to achieve this goal, the team started with the
understanding of consumer her needs, expectations and areas of
dissatisfaction. Striving to fulfill this growing need of the Indian consumer
by offering a solution to the inconvenience, inconsistency and lack of
variety she experiences in her everyday shopping ritual, the retail promise
of the Aditya Birla Group is aptly called ‘more’. The retail offering is

currently planed with the following two formats: supermarket and
hypermarket. By March 2008, there should be nearly 500 more stores in
the country, with a pan-India presence. The Group has plans to have two
hypermarkets in place shortly.
Current Stores: 500
• Yo! China
Started by an enterprising team of six individuals, Yo! China
operates 30 outlets in trendy locations across the country. Yo! China is
India’s first and largest Chinese fast food chain. With its tagline od
‘Chinese food, Chinese prices’, Yo! China, is a trademark owned and
operated by Moods Hospitality Pvt. Ltd. On the average, over five lakh
guests per month visit Yo! China restaurants. The chain delivers food to
two lakh homes/offices. To maintain consistency in food and ensure top
quality, production is centralized from a 8,000 sq ft base-kitchen at
Gurgaon. All staff personnel are trained on ‘production hygiene’. Chefs are
also trained on all menu preparations where the quality of each dish is
classified into its appearance, portion size, freshness and taste.
Current Outlets: 30
Upcoming Outlets: 300
• Woodland
Started in 1992, Woodland Shoes have created a niche for itself
with the up-market discerning clientele. Woodland shoes, with a small
turnover of Rs 7.7 million in 1992, have crossed Rs 1000 million mark

during the fiscal year 1999-2000. The brand is poised for steady growth of
nearly 20 per cent every year. Woodland was introduced to the Indian
market in 1992 primarily via wholesale distribution network and a couple of
Aero-owned shoe retail stores. Today, the wholesale distribution is service
by a network of 50 distributors covering the entire country. Practically,
every good shoe store in all metropolitan and major town(s) is retailing
Woodland shoes.
• Levi Strauss (India) Pvt. Ltd.
Levi Strauss (India) Pvt. Ltd (LSIL) is a Bangalore-based, wholly
owned subsidiary of Levi Strauss & Co. (LS & Co.), San Francisco. The
company markets the Levi’s, Dockers and Levi Strauss Signature brands
in India. Levi Strauss (India) Pvt. Ltd was established in 1994 and brought
authentic original American Jeans-wear to India by launching the iconic
Levi’s Brand.
Current stores: 700
• Westside
Established in 1998, Trent Ltd is part of the Tata Group that
operates ‘Westside’, one of India’s largest growing chains of retail stores.
Trent entered into the hypermarket business in 2004 with ‘Star Bazaar’. In
2005, Trent acquired ‘Landmark’ that offers a vast assortment of books,
music, movies and stationery. Trent agreed in 2006 to anchor the next 12
DLF malls across several cities of India. Already, 28 Westside
departmental stores measuring 15,000 to 30,000 sq ft each have been

established in 19 cities that include Mumbai, Bangalore, Ahmedabad and
Ludhiana. Westside stores have several departments such as men-wear,
women-wear, kids-wear, footwear, cosmetics, perfumes and handbags,
household accessories, lingerie and gifts.
Current stores: 28
Upcoming stores: 100
• Lacoste
Brought in India by Brenard, Lacoste recognized Turner Morrison
Group as its partner and formed Sports and Leisure Apparel Limited, the
Lacoste licensee in India. After painstaking efforts, the first Lacoste
boutique was inaugurated by Brenard Lacoste at Vama, Bombay in
October 1993. Though the Lacoste range in India includes a wide range of
garments, accessories, footwear, leather bags for ladies and gentlemen,
every company employee is instilled with the conviction that they
manufacture only one product ‘Quality’. The brand has grown steadily over
the last 14 years. Today Lacoste is redefining the retail landscape and the
experience through globally synchronized collections introducing new
categories and opening new concept boutiques across the country.
Current boutiques: 37
• Kwality Wall’s
Hindustan Unilever Limited is India’s largest FMCG company. Its
mission is to add vitality to life. Kwality Wall’s launched in 1995, is the
company’s mester brand for ice-cream. Through single unit operated

franchisees, the brand launched over 110 parlours countrywide in 2006.
Continuing the trend in 2007, the brand has inducted over 100
franchisees. With over 300 parlours, Kwality Wall’s is one of the largest ice
cream parlours chain in India. For expansion countrywide, the brand is
looking at partnering with enterprising franchisees in many cities (across
the whole country) including NCR, Ludhiana, Jaipur, Kolkata, Hyderabad
and Goa. Expected requirement of franchisees every year is around 100
in number.
• Reebok
In 1995, Reebok started operations in India through its 100 per cent
subsidiary Reebok India Company. In a short duration of over nine years,
it has become a leading marketer and distributor of sports and fitness
footwear, apparel and sports equipment in India. The company has an
extensive distribution network: it reaches out to its target customer through
500 exclusive Reebok stores, 200 shop-in-shop outlets and 2,500 dealer
outlets. The company intends to capture the hearts and minds of young
people worldwide by creating a deep genuine connection with youth
culture.
Current stores: 600 exclusive
Upcoming stores: 750 - 800
• Home Town
Home Solutions Retail (India) Ltd, part of the Future Group, is
India’s most comprehensive chain of home making and home

improvement stores. HomeTown provides consumers with all that go into
building a house and everything to make it a ‘home’. It also makes
services of a specialized experts’ team available to consumers. The store
is divided into three sections. While exhibitions sections have live displays
(around 150 in numbers) of various rooms such as living room and dining
room, markets section features products like sofa sets and kids furniture.
The services section offers service options such as Mr. Plumber and Mr.
Electrician. Currently present in Noida, Hyderabad, Ahmedabad,
Bangalore and Pune, HomeTown displays products from all the major
manufacturers from India and abroad.
Current stores: 5
Upcoming stores: 4
• Hidesign
Dilip Kapur ventured out with the brand Hidesign in late 1970s. in
the beginning Hidesign was retailing via distributors. However, from the
last few years, the company ramped up its own-retail presence not only in
India but also on international shores. Internationally, Hidesign sells in
more than 15 countries in Europe, America, Asia, Africa and Australia. It
has stores in the USA, Russia and UAE and intends to enhance its retail
presence through similar exclusive stores in other parts of the world. In
India, the Rs 101-crore company has 37 stores. Capetown and Abu Dhabi
are also in the radar for opening of the outlets. Hidesign already has one
store each in Shanghai, Hong Kong and the US, apart from two stores in

Russia and also three in Dubai. The company is also looking, for
expansion, at San Diego, San Francisco and the Californian coastal cities.
Current stores: 50
Upcoming stores: 10
• Tommy Hilfiger
Tommy Hilfiger brand was launched in India in April 2004. Tommy
Hilfiger himself was in India to launch the brand. It was a two-city launch
(Delhi and Bangalore). The launch activities included store opening events
and a fashion show in Delhi. Today, Tommy Hilfiger is the only premium
designer wear segment brand to have reached a national foot print
successfully. It is present in 10 prominent cities with its flagship stores.
Arvind Murjani Brands Pvt. Ltd is the sub licensee for Tommy Hilfiger
(apparel). It offers a wide range of apparel (men and women) and
accessories that include watches, fragrances, eyewear, leather goods,
handbags and men’s undergarments.
Current stores: 9
• Food Bazaar
Flagged off in April 2002, Food Bazaar a Future Group venture is a
chain of large supermarkets with a difference. The best of Western and
Indian values have been put together to ensure customer satisfaction and
comfort while shopping. The western values of convenience, cleanliness
and hygiene are offered through pre-packed commodities and the Indian
value of ‘see-touch-feel’ are offered through the ‘bazaar-like’ atmosphere

created by displaying staples out in the open, all at very economical and
affordable prices without any compromise on quality.
Current stores: 122 (29 standalones, 92 shop-in-shop)
• Spencer’s
‘Spencer’s quality’ is a time-tested phrase, which has been
ingrained in the minds on Indian consumers. In 2007, Spencer’s retail was
one of the fastest growing organised retailers in India. The group is adding
30 stores a month and has retail area of 1.3 million sq ft. in 2008, the
company plans to add over one million sq ft in trading area under
Spencer’s brand of hyper, super, daily and express stores. Currently, they
are having revenue of over Rs 80 crore per month, which is likely to
double by March next year. Spencer’s retail has several formats such as
Spencer’s daily, super, hyper and express.
Current stores: 400
• Esprit
Esprit is an international youthful lifestyle brand offering smart
luxury at affordable prices. Designed (with customers in mind), clothing
and accessories are made with a special Esprit twist. The brand is for the
current lifestyle of today. That is Esprit’s core philosophy. Customers can
trust Esprit’s guidance in today’s crowded fashion environment, because
all lines are contemporary and stylish. So, it is not surprising that Esprit is

one of the brands with highest rate of repurchases. In other words, it has
the most loyal regular-customers. Esprit is all about lifestyle, attitude and
not about age. It is a common thread, an international language that
customers worldwide understand.
• Puma
Puma is the global athletic brand that successfully fuses influences
from sports, lifestyle and fashion. Puma’s unique industry perspective
delivers the unexpected in sport lifestyle footwear, apparel and
accessories through technical innovation and revolutionary design.
Established in Herzogenaurach, Germany in 1948, Puma distributes
products in over 80 countries. Puma opened its first exclusive showroom
in India in 2006. The company would also use India’s expertise in garment
sector and would manufacture sportswear in the country. It would also
export garments manufactured in India.
Current stores: 15
Upcoming stores: 30
• Baskin Robbins
Baskin Robbins entered the Indian market in 1993 through a joint
venture between its parent company Allied Domeq Quick Service and the
Ghai Group whose operations span a diverse range of interests and
areas. Today, Baskin Robbins is one of the world’s largest ice cream
franchisees, with more than 5,600 locations of which over 250 are in India.
After 14 years, Baskin Robbins has become a part of daily lives and is one

of the brands indelibly linked with the discerning Indian consumer. In India,
Baskin Robbins has presence in 60 cities.
Current stores: 275
• Provogue
The company was incorporated on November 11, 1997 as Acme
Clothing Private Limited. Provogue stands for fashion and not for pure
apparel and this, in itself, makes it the leader instantly. Its designs are
cutting-edge and radical and epitomize in mantra, ‘Redefining fashion’.
The company launched the fashion brand ‘Provogue’ in March 1998, and
with a short span of seven years; it has established a strong brand identity
in the minds of urban consumers.
• Raymond
The company has over 50 years’ experience in organised retail.
With a 33 million-metre capacity in wool and wool-blended fabrics,
Raymond commands in worsted suiting over 60 per cent market share in
India and ranks amongst the first three fully-integrated manufacturers in
the world. Currently, Raymond has more than 430 stores in India, Middle
East and South Asia comprising ‘The Raymond Shop’ (TRS) and EBOs,
spread across 170 cities with approximately one lakh sq ft of dedicated
retail space. By 2010, Raymond plans to have a network of over 950
stores in the country, with over two million sq ft of retail space. The

company has diverse product range of nearly 20,000 designs and colours
of suiting fabric to suit every age, occasion and style.
Current stores: 430, 170 exclusive
• Hypercity
Hypercity Retail (India) Ltd is part of the K Raheja Corp. Group, a
leader in the Indian retail sector. Hypercity, hypermarket in the true sense,
is a 1.2 lakh sq ft plus format, which stocks a wide array of product
categories – groceries, food, home needs, fresh food, garments, sports
and fitness equipment, consumer durables. Recently, Hypercity Retail
along with Shopper’s Stop Ltd has entered into franchise agreement with
the Home Retail Group, UK to offer for the first time a unique multi-
channel shopping experience under the brand name of HyperCITY Agros
to consumers in India.
Current stores: 1
Upcoming stores: 60
• Metro Shoes
In the year of freedom (1947), o lone footwear store opened its
doors to the public in Colaba. Over the past five decades, the company
and the brand name have become synonymous with unmatched quality,
skilled craftsmanship and high-fashion products in the footwear industry.
Metro Shoes has a countrywide network of exclusive Metro showrooms at

52 prime locations across 25 cities in India. The network has been
designed to offer an extensive collection of footwear and accessories.
Current stores: 74
• McDonald’s
McDonald’s is one of the world’s great entrepreneurial
organisations with four out of every five restaurants worldwide run by an
affiliate partner of the company or a franchisee. There are about 30,000
restaurants in more than 119 countries serving around 50 million people
everyday. McDonald’s India, a locally owned company is, is now 10 years
young. It is managed by two joint ventures viz. Connaught Plaza
Restaurants Pvt. Ltd run by joint venture partner, Mr. Vikram Bakshi and
Hard Castle Restaurant Pvt. Ltd run by joint venture partner Mr. Amit Jatia.
The company aims to set up five more restaurants in Punjab including
cities like Ropar and Patiala. It also plans to set up a food processing plant
with an investment of Rs 100 crore. It targets to have 131 restaurants in
India, with 77 in northern and eastern regions and 53 in southern and
western regions.
Current restaurants: 131
Upcoming restaurants: 40
• Club City
Club City Hospitality is a brand of Franchise Management
Company Pvt. Ltd, which is a part of the Franchise India Holdings Ltd. the

company plans to have 200 outlets and expand its operations by
launching food courts in malls, multiplexes, airports, highways etc. club
City has 15 food brands under its umbrella that offers to its customers a
perfect cuisine-mix with an array of food varieties such as Dosa Plaza,
Shanghai Post, Masala Country, Pizza & Co.
Current stores: 43
• Crossword
Crossword Bookstores Ltd, a wholly-owned subsidiary company of
Shopper’s Stop Ltd, is India’s leading department store chain. The holding
company inter-alia also acts as a master franchisee of the company. Since
inception on October 15, 1992, Crossword has received high recognition
for its achievements. Crossword, with 40 stores, is present across
Mumbai, Bangalore, Ahmedabad, Gurgaon, Ghaziabad, Pune, Vadodara,
Kolkata, Chennai and Hyderabad. Besides several innovations including
tech aspect, Crossword features large, spacious, well laid out stores and
cheerful interiors that encourage people to stay on and browse and make
looking for books a much more pleasurable experience.
Current stores: 48
Upcoming stores: 52
• Copper Chimney
Blue Foods Pvt. Ltd is a ‘partnership’ founded by four reputed
businessmen experienced in setting up and managing restaurants, with

accomplishments spanning a wide range of markets and functions. Today,
a blue food brand menu includes Bombay Blue, Noodle bar, Copper
Chimney, Cream centre, Spaghetti Kitchen, Coffee Blues, Blue Sea and
Spoon at various locations across India. Thirty five years ago, Copper
Chimney opened its door to cater to the demand for Mughlai cuisine, a
perennial favourite. Since then, this famous brand has been synonymous
with delectable Mughlai and ‘North India Fare’. The restaurant is an
indispensable part of the rich culinary heritage of Mumbai.
Current restaurants: 9
Upcoming restaurants: 5
• Cinemax India Ltd.
Cinemax India Ltd is the subsidiary of the prestigious Kanakia
Group, which has made, through successful realty business, a holistic
contribution to elevating modern lifestyles in Mumbai. Started with
Cinemax, Goregaon in 1997, the company has taken the movie-going-
experience to a new level. With high profile premiers and celebrity events
hosting at Cinemax, Versova, the company has almost ushered in a
revolution by offering recliner seats, massage chairs, karaoke, anytime-
ticket machines, luxurious and expensive interiors and best customer
services. The largest multiplex chain in Maharashtra, Cinemax is all set to
invest 840 crore for expansion.
Current screens: 51
Upcoming screens: 400

• Café Coffee Day
Café Coffee Day is division of India’s largest coffee conglomerate,
Amalgamated Bean Coffee Trading Company Ltd (ABCTCL), a Rs 450
crore ISO 9002 certified company. Café Coffee Day pioneered the café
concept in India in 1996 by opening its first outlet at Brigade Road,
Bangalore. Remained restricted to a very few people till late 1990s, coffee
drinking in India grew as need for relaxed ‘hangouts’ for urban youths
began to emerge. Recognizing this, Café Coffee Day embarked upon the
journey of becoming an organised retail café chain with distinct brand
identity. The chain plans, by 2010, to have 1,000 cafés in India and 50
cafés internationally.
Current cafés: 533
Upcoming cafés: 1,000
• Samsonite
Samsonite came into being in India since 1996 as Samsonite India
Pvt. Ltd. under 60:40 joint venture with the Tainwala family. The company
commands a market share of almost 32 per cent of the total Indian
luggage industry, which is estimated to be worth Rs 8 billion. The plant has
an annual hard sell capacity of 100 lakh units. Almost 80 per cent capacity
is being exported.
Current stores: 167
Upcoming stores: 50
• Bata

Bata, the Czech shoe major, was incorporated way back in 1931 as
Bata Shoe Company Private Limited. In 1973, the company went public
and changed its name to Bata India Limited. A leading player in the Indian
footwear industry, Bata is a brand backed by quality, reliability and trust. It
is the only footwear brand that offers quality and fashionable footwear for
the entire family. Bata has been on an aggressive expansion mode and
plans to add 200 international-look stores in the next two years. The
company is also working towards positioning itself as a vibrant and
contemporary companies by introducing new and exciting products, which
are stylish, competitively priced and give value for money.
Current stores: 1,000
• NEXT
NEXT is one of the emerging giants in the organised retailing of
consumer electronics and home appliances products. It stocks the entire
range of consumer durables – right from air-conditioners, LCD and
Plasma TVs, home theatre systems, washing machines, refrigerators,
microwaves to small home appliances. Besides its own brands, NEXT has
some of topmost brands such as Electrolux, HCL, Hyundai, Kelvinator,
Kenstar, LG, NEXT, Nokia, Onida, Philips, Sahara, Samsung, Sansui,
Toshiba and Videocon.
Current stores: 215

• Maspar
Maspar was set up in the year 2002, as a step towards integrating
the parent company which has been manufacturing home furnishings for
the export market for over 35 years. Supplier to prominent furnishing
houses like Mark & Spencer, Ikea and Waverly, it brings its international
quality standards to the Indian market. The team behind Maspar believes
that Indian homes are becoming more and more contemporary. Ornate
curtains and lifetime investments and décor are a thing of the past. The
new generation of homemakers likes fresh and changing interiors to suit
their lifestyle and entertaining needs.
Current stores: 9
Upcoming stores: 1
• Viveks
Vivek’s Ltd is a popular consumer electronics and home appliances
retail chain in India. The company grew from three stores to more than 53
stores and the turnover increased to over Rs 350 crore ($ 80 million). It
also became a public limited company from a family-run enterprise. CII
and Mckinsey raved about Viveks in these terms: ‘More trusted than the
brands it sells’.
Current stores: 53
• Adlabs

Adlabs is the largest entertainment conglomerate in the country,
Started as a laboratory for processing ‘ad films’ over three decades ago.
Adlabs is the defining force in every sphere of the entertainment industry:
production, distribution, processing or in cinemas. In June 2005, Reliance
ADAG became a majority promoter shareholder of the company. In 2006,
Adlabs forayed into television content creation by becoming majority
stakeholders of Siddhartha Basu’s Synergy Communications. The new
entity, Synergy Adlabs, continues to create exciting new genres for the
exploding television industry in India. Management expertise and
resources acted as catalysts in synergising various interrelated
businesses: animation, distribution, radio and digital cinema to name a
few.
Current stores: 131
Upcoming stores: 30
• Landmark
Established in 1998, Trent Ltd is part of the Tata Group that
operates ‘Westside’, one of India’s largest and fastest growing chains of
retail stores. Trent entered into hypermarket business in 2004 with ‘Star
Bazaar’. In 2005, Trent acquired ‘Landmark’ that offers a vast assortment
of books, music, movies and stationery. Launched in Chennai in 1987,
Landmark has, over the past 20 years, built its stores on the foundation of
providing customers the widest choice and great overall experience.

Landmark stores offers exhaustive range of over one lakh titles in books
and music alone. Landmark’s USP is the range and depth of its stocks.
Current stores: 10
• Ethos
Ethos Swiss Watch Studios is the India’s largest retail chain for
Swiss watches. Ethos entered the watch retail market in 2003, when it
opened a flagship store in the heart of Chandigarh. Within just three to
four years, Ethos has grown to a chain of nine stores around the country
spanning Bangalore, Chandigarh, Ludhiana, Mumbai, Pune and NCR and
offers more than 25 premium Swiss watch brands. The latest addition are
Breguet (a high end, most revered Swiss Brand in watches) and Maurice
Lacroix, one of the world’s most premium brands of complicated watches
with the rare ‘double retrograde’. Considering that over 30 per cent of
overall sales fall into gifting category, Ethos has recently established a
comprehensive institutional sales scheme.
Current stores: 15
Upcoming stores: 50
• Koutons
Koutons established its operations in garment manufacturing and
exports in early 1991. The company moved up the value chain from a
garment manufacturer to a retailer by opening up its own stores in 2002.
The company owns two brands with unique positioning ‘Koutons’ and

‘Charlie Outlaw’. Of these, 610 are exclusive shops while rest (537 stores)
is Charlie Outlaw shops.
Current stores: 621
Top Foreign Firms in Indian Retail
India is shining all the way and investing in India has become one of the
profitable businesses. For those who aspire to see their brand recognised and
known at the global circuit, India cannot be ignored any longer. With booming
economy and promising future, international players are coming onto the Indian
shores. The foremost in the league was the Wal-Mart-Bharti tie up. Since then,
there has been no looking-back and the retailing sector is on the way to
revolutionise itself. With the entry of foreign companies in India via joint venture
or cash-n-carry format, retailing is touching new heights.
After Walmart-Bharti tie up, joint ventures between other Indian and
international players have been catching up and the retail market of the country
has immense potential to grow further into a sector completely organised. The
following are the top five international retail companies: -
• Wal-Mart
The Wal-Mart Stores, Inc. is an American public corporation that
runs a chain of large, discount department stores. According to the 2007
Fortune Global 500 reports, it is the world’s largest public corporation in
terms of revenues. Sam Walton founded the company in 1962,
incorporated in October 31, 1969 and listed on the New York Stock

Exchange in 1972. Wal-Mart is the largest grocery retailer in the US, with
an estimated 20 per cent share of the retail grocery and consumables
business, as well as the largest toy seller in the US, with an estimated 22
per cent share of the toy market. The company’s operation primarily
comprises three retailing subsidiaries: Wal-Mart Stores Division US, Sam’s
Club and Wal-Mart International. It does business in nine different retail
formats: super centres, food and drugs, general merchandise stores,
bodegas (small markets), cash and carry stores, membership warehouse
clubs, apparel stores, soft discount stores and restaurants. In 2006, Wal-
Mart was the 67th most profitable corporation (profits divided by total
revenue), behind retailers such as Home Depot, Dell, and Target, and
ahead of Costco and Kroger. For the Fiscal year ended January 31, 2006,
Wal-Mart reported a net income of $ 12.178 billion (approximately Rs
51.12 billion) on $ 244.992 billion (approximately Rs 13,796.8 billion) of
sales revenue (3.5 per cent profit margin). For the same fiscal year, Wal-
Mart’s international operations accounted for about 20.1 per cent of total
sales. As of December 6, 2007, net sales for 43-week period ended
November 30, 2007 was $ 301.5 billion (approximately Rs 1,260 billion) up
8.6 per cent from the previous year’s results. Revenues are up 11 per cent
over last year, but profits grew less than one per cent, amid a slowdown in
same-store sales.
Wal-Mart India Plans: India’s Bharti Group has announced a deal
with US retail giant Wal-Mart to launch the first mega-retail store joint

venture in the country. The Bharti-Wal-Mart venture would make as initial
investment of $ 100 million (approximately Rs 4 billon), which could further
increase to $ 1.46 billion (approximately Rs 58.4 billion).
• Carrefour SA
Carrefour SA is a French international hypermarket chain with a
global network of outlets. After Wal-Mart, it is the second largest retail
group in the world in terms of revenues. Carrefour operates mainly in the
European Union, Brazil, Argentina and Columbia; but it also has shops in
North Africa and Asia. In French, Carrefour means crossroad. The first
Carrefour store was opened on June 3, 1957 in suburban Annecy near a
crossroad. Today, it is the smallest Carrefour location in the world. The
group was created by Marcel Fournier and Denis Defforey and grew into a
chain from this first sales outlet. In 1991, it got merged with Promodes,
known as Continent, one of its major competitors on the French market. In
the Americas, Carrefour has presence in four countries: Brazil, Argentina,
Columbia and the Dominican Republic. Active in three types of retail
distribution viz., hypermarkets, supermarkets and hard discounters,
Carrefour is entering the cash-n-carry market in Brazil, after purchase of
Atacadao. In 1989, the company became the first international retailer to
establish a presence in Asia when it entered Taiwan through a joint
venture with Uni President Enterprise Corporation. It leveraged the
experience it gathered in Taiwan to expand into other Asian markets.
Carrefour also operates in the UAE and Jordan with a joint venture with

Majid al Futtaim. In March 2007, Carrefour opened a store in Kuwait in the
Avenues mall.
India plans: Carrefour has floated two separate units in India.
Carrefour WC & C India Pvt. Ltd will roll out fully-owned wholesale stores
and Carrefour India Master Franchise Co. Pvt. Ltd will enlist an Indian
company to open the French firm’s branded stores in the country.
• Tesco
Tesco PLC is a British-based international grocery and general
merchandising retail chain. It is the largest British retailer in terms of both
global sales and domestic market share, and is the world’s third largest
retailer, just behind Wal-Mart and Carrefour. Tesco now controls over 30
per cent of the grocery market in the UK, approximating the combined
market share of its closest rivals, Asda and Sainsbury’s. in 2007, the
supermarket chain announced over £ 2.55 billion (approximately Rs 196
billion) in profits. Originally specializing in food, it has diversified into areas
such as discount clothes, consumer electronics, consumer discs and
music downloads, internet service, consumer telecoms, consumer health
insurance, consumer dental plans and budget software.
The first Tesco store was opened in 1929 in Burnt Oak, Edgeware,
Middlesex. The first self-service store was opened in St Albans in 1947
(still operational in 2007 as a Metro) and the first supermarket in Maldon in
1956. The Tesco brand first appeared in 1924 and the founder is Jack

Cohen. Tesco’s UK stores are divided into five formats, differentiated by
size and the range of products sold: Tesco Extra, Tesco superstores,
Tesco Metro stores, Tesco Express stores and One stop. Britain’s biggest
retailer, the supermarket group Tesco, has announced record annual
profits of more than $ 3.5 billion (approximately Rs 140 billion), 13 per cent
higher than previous year’s. Tesco now operates in 13 nations, with over
three thousand stores and employs nearly half a million people.
India plans: Whilst Tesco is still in the look out for a Indian partner
to team up its much anticipated foray, it is believed that the company is
busy scouting for talent in the top B-schools in the country and also
seeking for manpower with retail background. Well, the official line is ‘it is
scouting for talent for its Tesco Hindustan Service Centre’ but the unofficial
talk is ‘the latest round of manpower scouting is for its retail foray’. Tesco
and Tata are in talks to create a joint venture in India.
• Burger King
Burger King was founded in 1954 by James McLamore and David
Edgerton. Since then, it has been using franchise model to expand to just
over 11,200 stores in more than 65 countries around the globe. Burger
King Holdings is the parent company of Burger King. In the US, it operates
under the Burger King Brands title while, internationally, it operates under
the Burger King Corporation banner. By the end of fiscal year 2006,
Burger King has more than 11,220 outlets in 61 countries. The company

has more than 37,000 employees who serve approximately 11.4 million
customers daily.
Revenues in 2006-2007: Burger King Holdings Inc., parent to the
No. 2 burger chain, posted a 41 per cent surge in its fiscal 2007 second-
quarter profit. For the quarter ended on December 31, Burger King earned
$ 38 million (approximately Rs 1,520 million), or 28 cents per share,
against $ 27 million (approximately Rs 1,080 million) or 24 cents per
share, a year ago.
India plans: Burger King is in talks with DLF for setting up a joint
venture (JV).
• Starbucks
Starbucks was opened in Seatle, Washington, in 1971 by three
partners viz. English teacher Jerry Baldwin, history teacher Zew Siegel
and writer Gordon Bowker. Starbucks Corporation is multinational coffee
and coffeehouse chain company based in the Unites States. Starbucks is
the largest coffeehouse company in the world, with 15,011 stores in 42
countries. International journey of Starbucks began in 1996 with the first
coffeehouse in Tokyo and entered the UK market in 1998 with the
acquisition of the then 60-outlet-UK-based Seatle Coffee Company and
re-branding of its entire store at Starbucks. By November 2005, London
had more outlets than Manhattan, a sign of Starbucks becoming an
international brand. Starbucks serves a variety of beverages including
brewed coffee, hot chocolate, espresso, teas, Frappuccino. Also available

are bottled beverages including Odwalla, Ethos water, San Pellegrino,
Izze soda, and Horizon Organic Milk. As of 2008, Starbucks was ranked
by Fortune magazine as the 7th best company to work for in the United
States, up from 16th in 2007. In 2006 and 2005, it was ranked 29th and 11th
respectively. Revenues Starbucks earned $ 673 million (approximately Rs
26,920 million) in profit on $ 9.4 billion (approximately Rs 376 billion) in net
revenues for 2007.
India plans: Starbucks entered India through a distribution tie-up
with the country’s leading multiplex operator PVR Ltd for its select
products. PVR has started retailing Starbucks products at its select
multiplexes in Mumbai and Delhi.
Three Pioneering Brands
• Shopper’s Stop
Shopper’s Stop Ltd is promoted by the K Raheja Corp Group
(Chandru L Raheja Group), which is one of the leading players in the
country in the business of real estate development and hotels. Pioneer of
organised retail in India, Shopper’s Stop Limited has been instrumental in
bringing about retail revolution in India. Since its inception in 1991,
Shopper’s Stop Ltd has introduced various retail formats in India. Apart
from the flagship business of department stores, there are also specialty
stores for books, home décor, cosmetics and maternity acre and infant

care. Shopper’s Stop Ltd has also forayed in the food & beverages
business.
Current stores: 21
Upcoming stores: 28
• Barista Coffee Company
Barista Coffee Company Ltd is a joint venture between the Turner
Morrison and Tata Coffee. Barista, India’s largest and fastest growing
retailer of fine coffees was established in 2000 by Barista Coffee Company
Limited, to recreate the ambience and experience of the typical Italian
neighbourhood espresso bars in India. Headquartered in Delhi, Barista
currently has over 160 espresso bars across India, Sri Lanka and the
Middle East. Barista traces its roots back to the old coffeehouses in Italy –
the hotbeds of poetry, love, music, writing, revolution and, of course, fine
coffee. Barista Coffee Company is also planning to make its 60 ‘Barista’
coffee retail chains wi-fi enabled. Italy’s Lavazza Group acquired 100 per
cent stake in Barista Coffee Company Ltd in the end of first quarter 2007.
Current stores: 175
Upcoming stores: 35
• Tanishq
Tanishq, started in 1995, is the jewellery business group of Titan
Industries Ltd promoted by the Tata Group, India’s most respected and
widely diversified business conglomerate. Tanishq is India’s largest, and
fastest growing jewellery brand with 103 boutiques in 72 cities across the

country. Tanishq has recorded sales turnover of Rs 1,290 crore for the
financial year 2006-2007 growing at phenomenal rate of over 40 per cent
CAGR in an otherwise flat jewellery market.
Current stores: 103
Upcoming stores: 20
Leading Retail Suppliers (Shopping Malls)
• City Mall, Kota, Rajasthan
Location Kota
Built up Area 3.0 lakh sq ft
Plot Size 412’ X 215’ sq ft
Site frontage 400 ft
Front Road width 200 ft
Architects Maithel & Associates, Jaipur
Table 4.1
• Scottish City Centre, Jamnagar
Location Jamnagar
Built up Area 8 lakh sq ft
Plot Size 2.20 lakh sq ft
Site frontage 325 ft / 671 ft
Front Road width 100 ft
Architects Aakar Design Studio, Ahmedabad
Table 4.2
• Z Square, Kanpur
Location Kanpur
Built up Area More than 8 lakh sq ft
Plot Size 5 acres
Site frontage 130 meters
Front Road width 100 meters
Architects Structural – M/s Hafeez Contractor,
Interior – M/s Hafeez Contractor, Singapore

Table 4.3
• The Grand Mall, Coimbatore

Location Coimbatore
Built up Area 1.4 million sq ft
Plot Size 6.56 acres
Site frontage 325’ 6”
Front Road width 100 feet
Architects Bentel Associates – South Africa
Table 4.4
• Parsvnath Mall, Rohini
Location ROHINI
Plot Size 7,232.81 sq meter
Site frontage 16.97 meters
Front Road width 36 meters R/W
Architects G.P. Mathur
Table 4.5
• Viva Collage, Jalandhar
Location Jalandhar
Site frontage 184’
Front Road width 74’ (NH-1)
Architects RSP Akitek, Malaysia;
Design Forum of Architects, Noida

Table 4.6
• Omaxe, Connaught Place
Location Connaught Place, Greater Noida

Architects Hafeez Contractor
Table 4.7
• Promenade, Delhi
Location South Delhi

Total Area 4.5 lakh sq ft
Architects Mohit Gujral
Table 4.8

• Vasant Square, Delhi
Location Delhi
Land Area 19,800 meters
Net Leasable Area 2,95,000 sq ft
Table 4.9
• Forum Value, Bangalore
Location Whitefield Road, Bangalore

Total Retail Area 3,00,000 sq ft
Architects Mr. Razack Sattar, Prestige Group
Table 4.10
Leading Retail Suppliers (IT Companies)
IT companies also play a very important role in providing various software
and application solutions for simplifying the working of big retail shops and
shopping malls. The following are some of the leading companies: -
• JDA Software Group, Inc.
• SAP India
• PROTOCOL
• HCL Infosystems Ltd
• AGS Infotech Pvt. Ltd
Leading Retail Suppliers (Shop Fitting Companies)
• Shopworks
• Safe Enterprises

• BRV Retail Solutions
• Four Dimensions
• Shark Design Studio
Leading Retail Suppliers (Logistics Companies)
• OM Logistics
• SAFEXPRESS
• DRS Logistics

Retail Mix 5
India has indeed started shopping in malls and new malls are
mushrooming in every nook and corner of important cities in India. But it goes
without a second thought that if malls have made a huge difference in the ways
India shopped; they have also invited unnecessary worries and the foremost
being that of the tenant mix.
Brand, Retail Mix: Retail mix can be understood as the brand outlets in
malls catering to the interest of the target audience, which depends on factors
such as city and location. Mr. Astitva Sen, Vice President, Retail & Consumer
Goods, Technopark Advisors Pvt. Ltd, explains the basic difference between
retail and brand mix. He says Retail mix refers to the plan of category-specific
space allocation within a mall. For example what would be the break-up of space
allocated, say, to food and non-food? Brand mix refers to the space allocation
plan for various brands (national as well as local) within various categories.
Adding to the concept, Mr Pradeep Seth, CMD, Stadia Group, says, The brand
mix in a mall is the mixing of tenants depending on the market the mall is
targeting at. For a mall to succeed, it is very important to have an appropriate mix
and critical mass associated to its mix. A mall has to be conceived in such a way
that it targets its market with full support.
Zoning and right selection of tenants is as critical as merchandise planning
and category management is to retailers. They present the character of the mall

and distinctiveness to the target consumer, critical for gaining customer loyalty in
a highly competitive scenario.
Zoning: zoning is placing the right tenant at the right place. Mall
developers, therefore, first identify their anchor tenants and build their tenant mix
around them. Malls are built around the three concepts of zoning, comparative
buying levels and adjacency.
Zoning is a criterion that is usually followed in larger scale developments.
This is done to facilitate the end consumer in the selection of goods by making
specific sections. Usually, zoning is product specific and / or consumer specific.
For example, one case of consumer-specific zoning would be separate areas for
men’s wear, women’s wear and accessories, kids section, electronics and home
products. Product specific zoning is usually placement-oriented.
Anchor tenants: The selection of anchor tenants is an important
ingredient of the success of a mall. Anchor tenants are considered to be the
crowd pullers and contribute immensely in making the mall a favourite shopping
destination. An anchor tenant is a larger format store (usually, a departmental
store) that supports the development to get more footfalls. The anchor stores are
placed in such a way that they even out the traffic movement and act as crowd
pullers and smaller tenants survive because of this traffic. It is critical for any mall
developer or owner to plan and finalise anchor tenants and, then, rest of the retail
mix. The advantage that anchor tenants have is they enjoy favourable terms from
the developer such as lower rentals, better conversion ratios and dedicated
parking space.

Consumer segment
First and foremost, it’s important to understand what type of

consumer segment companies are targeting at. For this purpose
they must find answers of these questions: -
• Who are the consumers?
• What do they prefer buying most?
• Which retail brand is not available?
This will assist in determining the right mix.
Retail mix
Create a well-planned retail mix for each level.
• Do not just fill space.
• Have something for every age-group on the same floor.

Fig. 5.1
Selecting retail mix: ‘Complementary’ is a word of utmost importance
while choosing the tenants of a floor. For instance, a jewellery brand is located
next to a sari store. Stating the importance of right selection of retail mix, it is very
necessary for a mall developer to understand its audience. Zoning plays a vital
role in making the mall a successful venture. There are various factors that affect
a mall’s zoning. The most important of them is placement. Another major factor is
the placement of anchors. It’s very critical that a mall developer decides on its
audience, tenants and delivers what consumers expect for this helps in
generating footfalls in the long-run.
Success factor: To run a mall successfully, it’s of utmost importance to
study the consumer behaviour and follow a slightly different approach. For

instance, if a mall is big and spread over a large area, then splitting up the
anchor and key tenants can generate footfalls on every floor and push the
attention of consumers. Giving a few golden rules for being successful, some
critical success factors are:
1) Right-sizing the mall in accordance with the catchment’s projected
consumption capacity.
2) Creating distinctiveness.
3) Providing adequate infrastructure (circulation, parking, and loading and
unloading bays).
4) Partnership with key retail tenants.
Hence, the process undertakes researching on the pattern of shopping
behaviour and then planning the anchored and other tenant mix in a mall.

Visual Merchandising 6
The art if ‘visual merchandising’ in India is still in its infancy. Visual
merchandising (VM) can be defined in many ways viz. from the point of view of
brand experience, creation of purchase triggers or overall store planning. The
definition of VM that can be best is a simple outcome statement ‘convert the
passerby to a browser, the browser to a spender, the spender to a bigger
spender and build customer loyalty’.
The essential question that one has to put to store planners is ‘Are you
providing, in your entire store design, a methodology of continuously providing
both space and physical approach towards customer interaction points.
Planograms, aesthetics, aisle widths etc. are parts of VM process. But, the first
step is to understand, anticipate and locate points within the store, which can be
earmarked for VM programme of the brand. Although visual merchandising is
wider in perspective, the quick common understanding is of doing up window
displaying. The difficulties commonly experienced by brands and retailers alike in
carrying out a VM programme are:
1. Lack of identification of physical points within the store individually for
each store from window to hot spots and zones.
2. Inability to adapt a common theme or design across 30/35 stores or more.
Many brands resort to making out a common kit and dispatching it with an
installation instruction and then hope for the best. This approach usually

covers only the window. Many a time, brands and retailers who do not
have a system of identifying the sizes of windows or their multiple
numbers across pan-India. A lot of them are franchisee windows and got a
differential treatment. Hot spots and zones are rarely identified.
3. Ineffective planning of timing in getting the VM programme installed
across 100 stores or more in time for the theme or occasion. This mainly
because of the lack of two fundamentals:
a. The planning of annual VM calendar in detail with budgets.
b. The lack of a clear organisation structure with accountability for the
programme. A lot of knee-jerk reactions do happen because of this.
4. Decentralising a store VM programme and giving the responsibility to the
store manager often leads to inconsistency of customer experience across
company-owned stores and franchisee stores.
5. As the chain goes larger and the number of multiple formats increases,
execution becomes a nightmare. The aesthetics may be world class but
the execution is usually pathetic.
The state of affairs will change if the followings are observed and made to
happen:
1. Brands and retailers quickly realise the importance of VM as a continuous
communication to the customer of their broad brand objectives.
2. They work on an annual VM calendar with clear budgets and
responsibility.
3. They really carry out planning in advance.

4. If there is a differentiation in budgets, use the criteria of store sales
whether the store is company owned or franchised.
5. Ensure that the design and the material used relate to costs short-term
windows or long-terms window. Complete a prototype store and tweak it
until satisfied before going national.
6. Try not involving store managers in deciding on the way the installation
pans out. Centralize it or appoint an agency.
7. Today’s retailers are expanding rapidly. Invest in a separate organisation
structure to control this very important communication. Do not led it be
only at store opening.
8. Develop an outside agency for design and execution unless you are
prepared to invest long terms in your own people. The advantage of an
agency is that the designs are more varied and exciting. An internal team
tends to produce similar stuff within a period of time.

Findings and Suggestions 7
Findings: -
Fig. 7.1
1. Retailing in India is witnessing a huge revamping exercise as can be seen
in the graph.
2. India is rated the fifth most attractive emerging retail market: a potential
goldmine.
3. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern
trade) makes up 3 percent or US$ 6.4 billion.

4. As per a report by KPMG the annual growth of department stores is
estimated at 24%.
5. Ranked second in a Global Retail Development Index of 30 developing
countries drawn up by AT Kearney.
6. The final link with consumer for selling & feedback.
7. Impact on the economy.
8. Accessibility in various locations.
9. Avenue to study consumer preferences & buying habits.
10. Avenue for imaginative merchandising.
11. Buying thru touch, feel & comparison without dealer influence.
12. Buys in bulk, sells in smalls.
13. Induces impulse purchase.
14. Private Labels.
15. Focus on Small cities and towns.
16. Store design.
17. Multiple formats / New segments.
18. Bringing in Technology.
19. Farm to Fridge.
20. 24 hr retailing.

21. Shoppertainment:
a. Changes in the lifestyle.
b. Variety.
c. Fun & Entertainment.
d. One Stop Shopping.
Suggestions: -
• Key Success factors of Conventional retail:
– Reach.
– Credit facilities.
– Home delivery.
– Intangible factors.
• Is it viable for organized retail to emulate these factors?
• Probable opportunities for Conventional retailers:
– Renovation of the existing formats.
– Entry of B2B companies.
– Consortium (conglomerate).

Conclusion 8
SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis:
Fig. 8.1
The above is the SWOT analysis of Indian Retail Industry. The ‘S’ shows
all of the strengths, ‘W’ shows the weaknesses, ‘O’ shows the opportunities and
the ‘T’ shows the threats which is faced by the existing players in the retail
industry. The following are the some of the future directions both positive and
concerns (negative) aspects of this industry.

Future Direction: Positives: -
• AT Kearney has estimated India’s total retail market at US$ 202.6 billion
which is expected to grow at a compounded 30 per cent over the next five
years.
• With the organised retail segment growing at the rate of 25-30 per cent
per annum, revenues from the sector are expected to triple from the
current US$ 7.7 billion to US$ 24 billion by 2010.
• The share of modern retail is likely to grow from its current 2 per cent to
15-20 percent over the next decade
• Over next two years India will see several Indian retail businesses
attaining a critical mass as growth in the industry picks up momentum
driven by two key factors:
o Availability of quality real estate and mall management practices
o Consumer preference for shopping in new environments
• Wal-Mart: huge plans for India. Moving a senior official from its
headquarters in Bentonville, Arkansas, to head its market research and
business development functions pertaining to its retail plans in India.
• New York-based high-end fashion retailer Saks Fifth Avenue has tied up
with realty major DLF Properties to set up shop in a mall in New Delhi.
• Tommy Hilfiger, retailer of apparels, expects to open one store each in
Delhi, Ahmedabad, Lucknow and Bangalore in the next four months.

Future Directions: Concerns: -
• 68 million square feet of mall space is expected to be available by end of
2007, which might lead to over-capacity of malls.
• Lack of differentiation among the malls that are coming up. One option
may be to look at specialization.
• Poor inventory turns and stock availability measures - retailers clearly
need to augment their operations.
• Operations of retailers and suppliers are not integrated. Efficient
replenishment practices practiced in the Indian auto and auto-component
industry can be leveraged to implement efficient supply chain
management techniques.
• Supplier maturity, in terms of adherence to delivery schedules and
delivering the quantity ordered, is an issue.
• Sales tax laws - lead to retailers having state-level procurement and
storage leads to Indian retailers having higher inventories. VAT has helped
alleviate this a bit.
• Increased adoption of IT and shrinkage management will be a critical
area.
• Supply chain and customer relations followed by merchandising, facilities
management and vendor development are areas which have significant
gaps and proactive training is a key imperative for overcoming these.
• Government delayed decision of clearing FDI percentage.

• Additional burden on retailer in the form of service-tax.
• The Political lobbying by unorganised sector to stop permitting FDI limits
in the name of their Protection.
Transformation of the Interface between Manufacturer and Retailer
Fig. 8.2

Bibliography
Business Today (magazine)
Retailer (magazine)
M Now (magazine)
www.indianretail.com
www.wikipedia.org
www.managementparadise.com
Marketing Management, Kotler – Keller, 12-e

Appendices


Table A.1
Fig. A.1
Most Attractive Developing Regions for Retail

Fig. A.2
Table A.2

Fig. A.3

Fig. A.4
Table A.3

Table A.4

Retail Marketing An Empirical Study

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Retail Marketing An Empirical Study

Hochgeladen von

Copyright:

Verfügbare Formate

Retail Marketing: An Empirical Study

Retailing is one of the world’s largest industries. It is in a permanent state

consumer than manufacturing companies. Retailers represent the culmination of

more holistic approach to management and marketing and is seizing the

opportunity to be consumer oriented, engage in the personal contact with

customers, gather information on consumer behaviour and exploit insights into

business is transforming into a highly sophisticated form of management and

marketing. Retail marketing consistently features more efficient, more meaningful

and more profitable marketing practices.

Today retail, which is derived into organized and unorganized, is emerging

Annamalai University Page 1

organized retail – or modern retail – constitutes only 3 to 4 percent i.e. US $8

as THE GOLDMINE by global players, has grabbed attention of the most

Current Position Position By 2010

the pie – up substantially from the current 3 to 4 percent. According to

Foundation (IBEF), “Driven by changing lifestyles, strong income growth and

favourable demographic patterns, Indian retail is expanding at a rapid place. The

Annamalai University Page 2

Retail is the accumulation of various marketing practices directed towards

providing the best merchandise available. It consists of the sale of goods or

merchandise, from a fixed location such as a big department store or a small

purchaser. Retailing may include subordinated services, such as delivery. A

retailer buys goods or products in large quantities from manufacturers or

importers, either directly or through a wholesaler, and then sells smaller

chain, retailers come at the end, just before the consumer.

Manufacturer  Wholesaler  Retailer  Consumer

Manufacturer  Retailer  Consumer

“Retailing includes all activities involved in selling goods or services

directly to final consumers for personal, non-business use. A retailer or retail

paced industries with several players entering the market.

the Indian retail industry is highly fragmented/ unorganized. Retailing in India is

Annamalai University Page 3

retailing in particular. The whole concept of shopping has altered in terms of

format and consumer buying behavior, ushering in a revolution in shopping in

all under one roof.

every year. Food, groceries and general merchandise, apparel, consumer

organized sector. Overall revenues, including those of small shops, is expected

Annamalai University Page 4

organized segment is expected to grow faster, at 21.8%, to touch Rs. 420,000

like pharmaceuticals and fuel, it still remains to be a challenge for other

Although the organized retailing in India is coming up in a big way, it

malls turned out to be the trend setters by promising the concept of

DCM Shriram Groups one-stop shopping destination called ‘Hariyali Bazaar’,

Godrej groups agri-store ‘Adhar’ etc.

Annamalai University Page 5

Indian Retail Development Phases

In India’s retail Landscape, food dominates the shopping basket in India.

Indian grocery basket still comprises non-branded items.”

What is India’s official, governmental position on retail – especially Foreign

consumer electronics, sports goods, stationery and building equipment. The

doors are opening up – and it’s a good time to be in the sector!

Annamalai University Page 6

• Pantaloon Retail (India) Limited: - This is India’s leading retailer that

the Indian consumer market. Headquartered in Mumbai (Bombay), the

company’s leading formats include Pantaloons, a chain of fashion outlets,

Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a

a chain of seamless destination malls. Some of its other formats include

portal, futurebazaar.com. A subsidiary company, Home Solutions Retail

(India) Limited, operates Home Town, a large-format home solutions store,

Collection I, selling home furniture products and E-Zone focused on

catering to the consumer electronics segment. Pantaloon Retail was

of the Year 2007 at the World Retail Congress held in Barcelona.