An Overview:

 Retailing in India is one of the pillars of its

economy and accounts for 14 to 15 per cent of its
GDP
 Fifth largest in the world
 Fastest growing industry in the country, expected
growth rate 25%-30% annually
 Mostly the industry in unorganized due to huge
difference in taste and demands
 The industry is getting more popular nowadays
and becoming organized also in terms to serve the
needs of customers
 Automatic approval is not allowed for foreign investment in retail
 Regulations restricting real estate purchases, and cumbersome local laws
 Taxation, which favours small retail businesses
 Absence of developed supply chain and integrated IT management
 Lack of trained work force
 Low skill level for retailing management
 Lack of Retailing Courses
 Intrinsic complexity of retailing – rapid price changes, constant threat of
product obsolescence and low margins
 Generally family-owned businesses catering to small sections of society
 Owned and operated by individuals
 Range of products are very selective and few in numbers
 These stores are known for their high standards of customer service
 Hawker: An individual who sells wares by carrying them through the streets
 person's ordinary methods of attracting attention include addressing the public, using
placards, labels, and signs, or displaying merchandise in a public place
 A peddler is defined as a retail dealer who brings goods from place to place, exhibiting
them for sale
 he does not have a fixed place of conducting business, but regularly carries the goods
for sale with himself
 he or she does not have a fixed place of conducting business, but regularly carries the
goods for sale with himself or herself
 A Street market is an outdoor market such as traditionally
held in a market square or in a market town, and are often
held only on particular days of the week
 Very similar markets, or bazaars can also be found in large
enclosed spaces, instead of on a street
 SPECIALTY STORES:  DEPARTMENT STORES:
 A typical specialty store gives
attention to a particular category and
provides high level of service to the
customers
 For example if a customer visits a
Reebok or Gap store then they find
just Reebok and Gap products in the
respective stores.
 A retailer of such store carries
variety of categories and has broad
assortment at average price &
offer considerable customer
service
 For example: Food World in
Bangalore
 DISCOUNT STORES:
 Offers extensive assortment of
merchandise at affordable and cut-
rate prices
 Normally retailers sell less
fashion-oriented brands
 The service is inadequate
 For example: The Loot
CONVENIENCE STORES:
 Is essentially found in residential
areas
 Provide limited amount of
merchandise at more than average
prices with a speedy checkout
 Store is ideal for emergency and
immediate purchases
 For Example: Reliance Fresh
 HYPERMARKETS:
 Provides variety and huge volumes
of exclusive merchandise at low
margins
 Operating cost is comparatively less
than other retail formats
 For Example: Dmart , Big Bazaar,
Trent, Landmark, Star Bazaar
SUPERMARKETS:
 a self service store consisting mainly
of grocery and limited products on
non food items
 may adopt a Hi-Lo or an EDLP
strategy for pricing
 supermarkets can be anywhere
between 20,000-40,000 square feet
 For Example: SPAR™ supermarket
 MALLS:
 Has a range of retail shops at a
single outlet
 Endow with products, food and
entertainment under a roof
 For Example: Inorbit Mall,
Ambience Mall.
CATEGORY KILLERS
 Supplying wide assortment in a single
category for lower prices a retailer can
"kill" that category for other retailers
 The products are displayed at the
center of the store and sales person will
be available to address customer
queries and give suggestions when
required
 For Example: Pai Electronics store in
Bangalore.
 E-TAILERS:  VENDING MACHINES: 
 Customer can shop and order  An automated piece of equipment
through internet and the wherein customers can drop in the
merchandise are dropped at the money in machine and acquire the
customer's doorstep products
 Format is ideal for customers who  This system is currently not
do not want to travel to retail stores widely used in India
and are interested in home shopping  For example: Soft drinks vending
 For Example: Amazon and Ebay at Bangalore Airport
Prof. Dilip Jain