A Project Report on Retailing

[As a partial fulfillment for the requirement in summer project as a part of MBA programme]

Submitted To: Prof. Chitral Patel

Submitted By: Parmar Harsh R (2022)

[MBA- SEM-II, Batch: 2011-13]

Hashmukh Goswami College of Management Vehlal, Ahmedabad

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A Project Report on Retailing

HASMUKH GOSWAMI COLLEGE OF ENGINEERING

FACULTY OF MANAGEMENT

BONAFIDE CERTIFICATE
Certified that this project report ON RETAILING (ORGANISE V/S UNORGANISE RETAILING) is the bonafide work of PARMAR HARSH R who carried out the project work under my supervision.

SIGNATURE Prof. Rekha Thotlani who guided you) Head of the Department, MBA

SIGNATURE (Name of faculty

Supervisor

A Project Report on Retailing

PREFACE
I am lucky that, I got the opportunity for making the project report on Comparative Study of Organized Retail (D-Mart) and their formats and challenges to unorganized retails in the current scenario. For this study I visited the Malls, Hyper Markets and Departmental Stores in Ahmedabad and Naroda and talk to various unorganized retailers (Kirana stores) to study the problems defined. This report is written account of what I learnt and experienced during the survey. I wish, those going through it will not only find it readable but also get as useful Information. The main limitation of my experience was that as the above said organized retails industry is reserved with corporate formalities.

A Project Report on Retailing

Acknowledgement
I take this opportunity to express my deep gratitude and thanks to all who have directly or indirectly helped me in my endeavor and without whose co-operation I cant completed my report. I am thankful to our College HGCE and its authorities, especially to respected HOD Prof.Rekha Totalani and Prof. Chitral Patel for guiding me throughout the Report.

A Project Report on Retailing

Executive Summary
Retailing is emerging as a sunrise industry in India and its presently the largest employer after agriculture. The size of Indian organized retail industry was Rs 28,000 Crores, which was only 3% of the total retailing market. The sunrise of the organised retailers in India creates a major turn in the retail industry. Top major organised retail players are increasing their market share day by day. Their main focus is based on FMCG and consumer durables. With modernization, Indian culture is aping the western dressing sense and lifestyle and these techniques is promoting by the Retailers and by this they are generating a remarkable revenue from the Indian consumers.

A Project Report on Retailing

Table of Contents
Sr. No.
1 2 3 4 5 6 7 8 Introduction Industry / Company overview Theoretical Background Objectives Conclusions Limitations of the project Recommendations Bibliography

Topic

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A Project Report on Retailing

CH-1 INTRODUCTION 1.1 Retailing

Retailing is the business where an organization directly sells its products and services to an end consumer and this is for his personal use. By definition whenever an organization be it a manufacturing or a whole seller sells directly to the end consumer it is actually operating in the Retail space. The retail industry in India is largely unorganized & predominantly consists of small, independent, owner-managed shops. Retailing is INDIAs largest industry in terms of contribution to GDP & constitutes 13% of GDP. There are around 5 million retail outlets in India. There are also an uncounted number of low cost kiosks (tea stalls, snacks centre, barber shops, etc) & mobile vendors. Total retail sales area in India was estimated at 328 million sq.mt.in 2001, with an average selling space of 29.4sq.mt. per outlet. In India the per capita retailing space is about 2sq. ft, which is quite low compared to that of developed economies. In 2000, the global management consultancy AT Kearney put retail trade at 400,000 crore , which is expected to increase to Rs.800,000 crore by year 2005 an annual increase of 20%. According to the survey, an overwhelming proportion of the Rs.400,000 crore retail market is unorganized. In fact only a Rs20,000 crore segment of market is organized. There is no integrated supply chain management outlook in Indian traditional retail industry. Food sales constitute a high proportion of the total retail sales. The share was 69.2% in 2006,worth apprx. Rs 7032.2 billion, while non food sales were worth Rs.4189.5 billion. However the non-food retailing sector registered faster year-onyear growth than the food sales sector. The trend to market private labels by specific retail store is catching on in India as it helps to improve margins. The turnover from private labels by major retail chains was estimated at around Rs 1200 million in 2001. CURRENT SCENARIO OF INDIAN RETAIL: Unorganized market; Rs. 5,83,000 crores. Organized market; Rs. 5,000 crores. 5 x growths in organized retailing between 2005-2010. Over 4000 new modern outlets in last 3 years. The top 3 modern retailers control over 750,000 sq.ft of retail space.
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Growth in organized retailing on par with expectations and projection of the last 5 years: on course to touch Rs. 35,000 crore or more by 2014-15.

1.2 Retailing in India

development of modern retail anywhere in the world. derive benefits of scale and efficiency in their system. three major formats which are largely standardized, may not work in India. -Indian, multi-format modern retailing model needs to be developed in India. develop a model for globalizing retailing. be the biggest contribution of Indian retailers to the world. of technology. have legacy systems on which they have to build their technology platform. -led solutions, India will take a leap and then ext generation retail technology solutions may well come out of India. -based retail solutions may well emerge from Indian retailing. own systems and benchmarks that are admired and followed the world over. Next 3-5 years are tough for retail biggies grow 45% to $435 billion by 2015. -20% of the total retail market. -billion by 2017.

Organized retailing in India will need painstaking, often frustrating, effort to chisel out India-ready business models, retail formats and delivery models. Products, Properties, People and Profitability are going to be huge challenges.
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run-up expenses for growth are going to shoot up sharply.

and unreasonably high property prices is adversely affecting the growth of the sector. 2009, when a large, and probably an oversupply of retail space is expected to come on-stream. By the year 2013, it is expected that there will be around 500 shopping malls, adding over 250million square feet of retail space. ail playing out in India currently, where lot of players are merely'land-grabbing'.

years, half of the new entrants of today will simply die. and catering to Indian consumer behavior, taking into account the social diversity in the country will be crucial to the success of new players. New formats in specialty retail, wholesale retail and luxury retail are expected to emerge. ears will provide the answers to the most crucial questions on the sustainability of modern retailing in India. No one can stop the growth of modern retail and the consequent impetus to consumption and development in India.

A Project Report on Retailing

1.3 Where is the opportunity? Retailers inspired by the Wal-Mart story of growth in small town America are tempted to focus on smaller towns and villages in India. However, a careful analysis of the town strata-wise population, population growth, migration trends and consumer spend analysis reveals a very different picture for India. As per our estimates, the share of the 35 towns with a present population of greater than 1 million in India's total population would grow much faster than their smaller counterparts, from 10.2 per cent today to reach 14.4 per cent by 2025. Simultaneously, the share of these towns in the overall retail market would grow from 21 per cent today to 40 per cent by 2025.Within these top 35 towns, an estimated 70 to 80 per cent of retail trade could be in the organized sector. This is similar to the experience in China, where in cities like Shanghai and Beijing, the organised sector accounts for 70 to 80 per cent of overall retail trade in certain categories. Retailers should therefore focus on the top 37 towns in the next decade, as the opportunity in smaller towns and rural India would be smaller and more fragmented, compared to the larger towns

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Ch-2 Company Overview

D-mart ( Organise Retail Store) Avenue Super Marts Ltd (ASL) owns and operates hypermarkets and supermarkets by the store name D-Mart. I Visited the D-mart which is situated in Bapunagar, Ahmedabad. D-Mart seeks to provide a one-stop shopping experience for the entire family, meeting all their daily household needs. A wide selection of home utility products is offered, including foods, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and much more. Culture At ASL, were strong believers in deriving excellence in customer service through systemic training and rigor at work. We value simplicity and humility in our people and strongly believe that integrity and merit is the only route to growth at ASL. Vision It is our continuous endeavor to investigate, identify and make available new products/categories for the customers everyday use and at the best value than anybody else. Product offerings D-Mart offers a wide selections of products in the following categories:

Foods Toiletries and Beauty products Garments Kitchenware Bed and Bath linen Toys & Games Stationery Home Appliances Footwear

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2.1 List of retail companies in india

D-Mart Big Bazar Cafe Coffee Day Barista Pantaloon Group Provogue ShoppersStop Arvind Brands Life Style Group McDonalds Titan Tanishq Aditya Birla Retail Limited M-mart ITC Ltd LRBD Kalanjali Arts & Crafts Kewal Kiran Clothing Pvt. Ltd.

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2.2 Types Of retailers

The retail sector in India can be divided into two major categories: 1) Organized 2) Unorganized

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1. Supermarkets: A supermarket, also called a grocery store is a self-service store offering a wide variety of food and household merchandise, organized into departments. It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a hypermarket or superstore.

2. Hypermarkets:
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A hypermarket is a superstore which combines a supermarket and a department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine weekly shopping needs in one trip. 3. Department Stores: A department store is a retail establishment which specializes in satisfying a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelery, toys, and sporting goods. Certain department stores are further classified as discount department stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countries. 4. Shopping malls: A shopping mall or shopping centre is a building or set of buildings which contain retail units, with interconnecting walkways enabling visitors to easily walk from unit to unit. 5. Specialty Chains: A Specialty Chains is numbers stores which are specialized in a specific range of merchandise and related items. Most stores have an extensive width and depth of stock in the item that they specify in and provide high levels of service and expertise. They differ from department stores and supermarkets which carry a wide range of merchandise.

CH-3 theorical background

3.1 Small local stores/ Unorganized Store The small local stores have dominated Indian retailing over the decades and are present in every village and local community, addressing the needs of the population in the area and being the point of contact with the consumer. The
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distribution networks of brands extend right upto this point to stay in touch with customer needs and preferences.

India like most other countries has a very large network of local stores. The retail industry in rural India has typically two forms: "Haats" and "Melas". You will find these in almost every village and locality. A lot of them function as Paan and cigarette outlets with tea and coffee sometimes also offered. Besides this these stores stock and offer small eats and soft drinks including biscuits, soft drinks, chocolate, sweets, bread and baked products. Many of them also sell fruits like bananas and a range of toiletries and cosmetics like soaps, shampoos, toothpastes and some creams. These small stores cater to the needs of their own local population and travelers who stop by for a smoke or a snack. A little larger format is the neighborhood grocery store that focuses on grains, foods, snacks and toiletries besides other home essentials.

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This network is very large and spread all across India. It is not really a network since each store is individual or family owned and has no connection with the other. It does however represent a network since large consumer product companies like Unilever, Procter & Gamble, Colgate-Palmolive, Cadbury, Coca Cola, Pepsi and ITC uses them as their final point of retail to the consumer. While it is commonly believed that the new retail chains will drive these small stores out of business, reality points the other way and it is likely that these stores will continue even in the next two decades of growth. These small stores are very personal and have strong relationships with the local population. They are points of news and connection. They offer credit to the local population and help out in times of crisis. They also have a very good understanding of requirements of the local population and have very low overheads enabling them to offer the best price for their products.

3.2 Comparison between D-Mart &Unorganized (Kirana stores) Retail stores

When organized retail first started India, there was a huge debate on survival of kirana stores at one end and success of supermarkets on the other. Both had fierce supporters and politicians chipped in with their bit. Foreign direct
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investment in multi brand retail is not permitted but Indian retailers have opened organized retail outlets across the nation. Reliance, Big Bazaar are popular stores while some like Subhiksha, Spencer sprang up only to shut later. Kirana stores have survived this stage. Despite undoubted benefits of shopping at a supermarket,

kirana stores have several advantages: The biggest being location amid a residential area. Its easy to stroll across and buy ones needs with no parking worries. Those not wanting to take this effort can simply order on phone and ask for home delivery. They offer credit facility as well. Usually, the shop location does not change for many years and storekeeper knows almost everyone in the family, their likes and dislikes. When making a monthly shopping list, he may remind us of anything that may be missed out! Such small personal touches can make a big difference in customer preferences of where to shop. Exchange of goods is quite easy and billing is fast. Disadvantages of kirana stores is that, However accurate weights may be an issue as are conditions of storage. May be price charge by them is high
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Organized Retail store ( D-mart)

An organized retail outlet allows users to comfortably browse different sections and compare size, price of products. At times, due to the scale of their tie-ups and sourcing, products are offered at less than the MRP. Interesting promotional schemes and store loyalty clubs entice people to repeatedly shop there. Often one can buy several categories of products under one roof that may not be possible at a kirana. Usually there is no one around (other than for cosmetics) to answer specific queries about a product particularly new ones. Some products are difficult to find in a supermarket like shampoo sachets or drain cleaning powders or small quantity of boiled-sugar sweets. People increasingly balance their purchases between these two formats. As petrol prices continue rising, they may be averse to travelling to a supermarket/hypermarket and prefer to buy from the local kirana instead. Top global majors like Tesco, Wal Mart and CarreFour said to be waiting to
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open their independent stores once the government policy changes. All vying to grab attention of FMCG consumers! The market is huge and there maybe something for everyone.

Ch-4 Objectives of the study PHASE-I Determine various shops and classify them into the Retail formats. Objective: Know the retail formats and what the differences between those categories are.

PHASE-II
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Analyze the threats and challenges to unorganized retailers in the current scenario of competitive market. Objective: Understand the sector of unorganized retails, find out the challenges faced by them and determine what are the measures taken by these retailers to survive in this current scenario.

Ch-5 conclusion The target audience for both the organized and unorganized retail formats remains relatively the same. When shopping in malls, people value the experience related to the trip the most and return most frequently for the

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same. Besides, while enjoying the experience they seem to buy high ticket and items of conspicuous consumption most frequently. Organized retail of late has seen a tremendous boom and is attracting more people to the malls.

Ch-6 limitations of the project

1. The geographical scope of the study is limited to Ahmedabad city.

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2. The consumers attitude may change in future due to change in their standard of living.

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Ch-7 recommendation We recommend to D-Mart expand their business to Gujarat in short term and on national level in long time. The staff behavior is good in D-mart but still they have to improve it. The D-mart have to Manage the goods in a proper Stands because some goods are not properly arranged.

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Ch-8 bibliography I used the following websites for my report

http://www.Google.com http://www.retailindustry.com http://www.D-mart.com

BOOK
Marketing Management Author-Philips kotler

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