Chapter one

Fashion Retail Management

Fashion Retail Managment - NIFT Rajyalakshmi

Contents
  

Overview of Retailing Environment Current scenario Emerging trends in Retailing

Fashion Retail Managment - NIFT Rajyalakshmi

Fashion .


Fashion refers to the styles and customs prevalent at a given time. In its most common usage however, "fashion" describes the popular clothing style. Fashion designers create and produce clothing articles.

Fashion Retail Managment - NIFT Rajyalakshmi

Retail .


has its origin in French word retaillier and means to cut a piece or to break bulk. is the sale of goods and services to the ultimate consumer for personal, family or household use. According to Kotler: Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non business use
Fashion Retail Managment - NIFT Rajyalakshmi

Management


a process of bringing about improvement in knowledge, skill, habits, and attitudes of the employees in an organization.

Fashion Retail Managment - NIFT Rajyalakshmi

Retailing Involves
 

Understanding the needs of customers Developing good assortment of merchandise Displaying the merchandise in a effective manner so that customers find it easy and attractive to buy.

Fashion Retail Managment - NIFT Rajyalakshmi

Retailing


Part of distribution channel

Manufacturer Manufacturer Manufacturer

Wholesaler Retailer Retailer

Consumer

Consumer

Consumer

Fashion Retail Managment - NIFT Rajyalakshmi

Evolution of Indian Retail

Historic/Rural Reach Traditional/Pervasiv e Reach Government Supported Modern Formats/ International

PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom & Pop/ Kiranas Weekly Markets Village Fairs Melas
Source of Entertainment Neighborhood Stores/Convenience Availability/ Low Costs / Distribution

Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls

Shopping Experience/Efficiency

Fashion Retail Managment - NIFT Rajyalakshmi

Retail Environment
Secondary Sectors suppliers Whole Seller Pressure Group Competitors

Importer

Primary & Secondary Sector

Share Holder

Retailer Retailer

Government Media External Environment consumers

Fashion Retail Managment - NIFT Rajyalakshmi

Factors behind the change of Indian retailing Industry

    

Economic growth Urbanization Consumerism Brand profusion Availability of real estate

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Why retailing ???



   

Wide range of products/brands at one place Breaking bulk Holding inventory Providing services Increase value of products & services

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Some facts of Retailing



Retailing
Worlds largest private industry  US$ 6.6 trillion sales annually

Indian retailing
Largest employer after agriculture - 9% of population Highest outlet density in world  Around 12 million outlets Still evolving as an industry  Long way to go as only 3 % of the sector is organized .
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Organized & Unorganized Retail



Organized retailing is based on the principle of unity and unorganized retailing is based on the principle of singularity. Retailing in India is predominantly unorganized.

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Categories of Indian Retail

Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and Glow, etc ITC: Wills Life Style Rahejas(ShoppersStop), Hiranandani(Haiko), Dedicated brand outlets Nike, Reebok, Zodiac etc Multi-brand outlets Vijay Sales, Viveks etc Manufacturers/ Exporters Pantaloons, Bata, Weekender

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Fashion Retail Environment



 

 

 

Massive spread-out of the malls & Boom in luxury retail segment. Mergers and acquisitions The advantages by the elimination of global textile quotas in 2005. Expansion strategies of brands and retailers. Many international brands march into domestic markets. (Guess, Gas, levis etc.) Indian fashion designers marked their names at International platforms. (Ritu Kumar, Ritu Beri,Tarun Tahiliani ) Boom in luxury retail segment. Considerable expenditure on ad and marketing by apparel brands.

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Current scenario
Pessimist scenario  With 2009 now officially labeled as a recessionary period  22 retail businesses, representing approx. 66,000 jobs closed in the first three months of the Year  A further 4,000 retail jobs have been lost through cost reduction measures by retail companies. Optimistic scenario The growth of industry & it will touch Rs. 18,10,000 cr by 2010. Organized Retail is expected to constitute 13% of it The report is based on rising economic growth rate of 8-9 per cent  A hike in average salaries by about 15 per cent which may trigger the rate of consumption.
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Fashion Retail Managment - NIFT Rajyalakshmi

Apparel Retail Industry Current Scenarios The apparel industry contributed to the largest share of the organized retail pie, with revenues of Rs.29,800 crore(39.3%). Indian apparel market value Rs.1224 bn Indian apparel volume 5644 million
Koutons has 260 stores Big Bazaar has 56 stores

 

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Emerging trends in Retailing

The trends to follow in the future:


The Indian Organized retail sector will grow up to 10% of total retailing by 2010. No one single format can be assumed as there is a huge difference in cultures regionally. The most encouraging format now would be the hypermarts. The hypermart format would be further encouraged with the entry of the MNCs.
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Thank You

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