Technology Retailing..

Presented by:Md Shahnawaz Islam Md Hasan Md Ali Md Danish Nvhs Kalyan

Technology retailing
1. Traditional technology retailing: audio and video equipment 2. Computing Devices: Computers, Calculators, Laptops 3. White Goods: Household /Domestic Appliances such as washing machines, irons, vacuum cleaners, grinders, etc 4. Personal Care: Hair Dryers, shavers, electric toothbrushes.

Brown Goods Industry in India

Out of the electronics industry in India, the technology retailing segment is one of the biggest markets.

It comprises of communication devices, computing devices, audio, video and gaming products. Televisions, music players, digital players, cameras, laptops, PCs, mobile handsets and accessories, gaming consoles commonly fall into the consumer electronic category.

C ons umer E lec tronic s (Brown Goods ) Market S hare

3%

33%

37% Mobiles Audio/Video/Gaming C omputers Others

27%

Technology retailing in India

According to a McKinsey 2005 report, while Food and Grocery took the highest share of wallet, electronics took only a mere 5%. But the proportion of spending on electronics was definite bound to increase by 2015. The growth rate for the share of organized retail in the electronics segment was set to increase from 15% to a astounding 45% in 2015

Factors influencing the growth of technology industry are: Rising disposable incomes coupled with increasing consumer exposure Increase in manufacturing in the local grounds Credit/Financing schemes which make purchase easy Growing competition , leading to better deals Increased reach due to better distribution networks

Technology retailing can be done both by:

1) Store retailing
E-Mall Shoppers Stop etc

2) Non-store retailing
Asian sky shop Television shopping

Retail Strategy Case Study Dell

India is the fastest growing market for Dell worldwide and laptops have emerged as the fastest growing form factor. Rajiv Ahuja, Director Communications of Dell By 2015, the number of PCs in India will grow 10 times and in the last year our personal computer sales in India grew by 99% compared to the previous year Michael Dell, CEO

Indian Market

Global Strategy

Dells innovative direct- sales model with good sales growth had been successful until the mid-2000s when the companys profits and share prices began dropping considerably maligned by analysts in the US for relying too long on selling personal computers (PCs) over the Internet Dell disclosed its plans to sell PCs in the US, Canada, and Puerto Rico through Wal-Mart and Sams Club retail stores

Indian Retail Strategy

Dell is targeting the small and medium businesses (SMB) in smaller towns in India as its main driver for growth as the company believes this market sector is growing rapidly and is not exposed to global shocks making it a much more stable market It has even tied up with Tally to offer accounting solutions online Dells direct sales method is proving very effective in Indian market since much of the demand in India comes from corporations, which are increasingly bypassing resellers and buying directly over the phone or the Internet and from sales staff. Dell has added retail partners and resellers in India, including Tata groups Croma stores, but the company said it has no plans to shift its focus from the direct strategy that serves it so well in India.

Technology retailing Industry Analysis Porters Five Forces Model

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Existing Players in the Indian Market

The main electronic manufacturers in the Indian market are Videocon Industries, LG Electronics, Samsung, Onida, Panasonic India, Bose India, BPL, etc. The upcoming players are D-Link, Samtel , WeP and Tyco followed by Nokia and Motorola.

Technology retailing Retailers

Viveks The Unlimited Shop- It is one of South Indias oldest consumer electronic retailer founded in 1980s. 2 Infiniti Croma- It is owned by Infiniti Retail which is a Tata sons 100% subsidiary and set up its first store in 2006. 3 E-Zone- It is an electronics specialty store, which has several brands all under one roof, was launched by Future Group, in 2007 at Lucknow. NEXT Retail India ltd- It is a subsidiary of Videocon Industries, Ltd and opened its first retail electronic store at Indore in 1999. Mobile Phones Speciality Retailers Laptop Speciality Stores

Key Drivers
Young Population with rising incomes. Availability of Easy Credit Options . Changing Consumption Patterns. Falling Prices of Consumer Electronics .

Introduction of green marketing..

Entry of new technology for producing these products.. Production of eco-friendly products.. Green products are disposable.. Technology that do not create pollution.. Example- Apple, Johnson's & Johnson's etc..

The 4 ps of technology retailing..

Product- It denotes the range of items that are been sold.. E.g.- Computes, Audio-visual equipments etc.. Places- It denotes the places where the technologies are been sold.. E.g.- E-Zone, Khosla electronics, Big Bazaar.. Price- It denotes the amount one is spending. It varies from one to another.. Promotion- It denotes the way how the customers come to know about the technology.. E.g.- Television, news paper etc

Challenges
Price Wars Lack of Distribution Networks and Logistics Management Presence of Gray Market in technology retailing Increasing Awareness of the Indian Consumers Trained manpower shortage in India

Solving Retail Problems Using Lean Six Sigma

"Applying Lean Six Sigma Principles in Retail Stores: A discussion of the specific challenges retail companies face and case examples highlighting what some retailers have done to overcome these challenges in applying LSS in stores. "Solving Retail Problems Using Lean Six Sigma: A look into solving simple to complex business problems using LSS tools and approaches. "Leadership in Retail Lean Six Sigma Deployments to Achieve High Performance: An exploration into the necessary leadership roles and discussion of leadership support in successful LSS deployments