Member Login



Who's Online

We have 52 guests online

Latest Comments

Home Knowledge Essays Retailing In India - Part 1

Avatar
Retailing In India - Part 1PDFPrintE-mail
Tuesday, 08 June 2010 10:55
Written by Atrayee Saha
(0 votes, average 0 out of 5)

For centuries, rural India has suffered a cycle of poverty, disempowerment and exploitation, mostly at the hands of the 3Bs – Brahmins, Banias and Babus. The FDI liberalization for the Retail sector bought many foreign companies to invest in Indian retail sector. The foreign MNC’s enter India with partnerships with home grown biggies like Reliance Industries, the Bharti group and Future Group. Billions are being invested in setting up massive retail chains to cold storage to warehouses to procure fresh farm produce from local farmers.

The concept of retailing is slowly changing over the years coupled with various other factors like high incomes, changing shopping preferences of the urban consumers. The traditional Bania shop in India is now a threat but they have survived very cleverly the cannibalization of Retailing in India till now through various innovations.

This massive retail chain has not only brought a sea change in marketing of agricultural products but it has also brought entirely a new phase in marketing of various other goods like readymade garments, footwear, gems, jewellery, cosmetics and many others. Retailing in India is acting as one of the pillars of the economy accounting for 35% of GDP (Gross Domestic Product).

The word, “Retail” is derived from the French word, “Retailer” which means “to cut a piece” or “to break a bulk”. In other words retailing implies first-hand transaction with the customer. Retailing involves a direct interface with the customer and the coordination of business activities from end to end, right from the concept or design stage of a product to its delivery and post-delivery services to the customer. The retailing industry is one of the fastest growing industries in the world today. According to the McKinsey report, the size of the global retail business is a staggering $66 tn and in developed countries, most of it is accounted for by the organized retail sector.

Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include corporate backed hypermarket and also privately owned retail businesses. While unorganized retailing refers to the traditional low-cost retailing including local kirana shops, owner manned general stores, convenience stores, hand cart, and pavement stores. Organized retail market is growing at 35 percent annually and unorganized sector is pegged at 6 percent. Organized retail has more than 80 percent market share in the United States, 70 percent in Europe and other countries.

In the last decade, India has become the hot favorite destination for many global companies for outsourcing. Retail is one of the India’s largest sectors of the economy providing 8% of total employment. India is rated as the most attractive destination for retailers across the world. Thus big retailers need to continuously scale up their operations in order to reduce costs and leverage on the benefit of scale. Retail companies, committed to long term profitability, are looking closely at those operations which can be outsourced to service-providers both at the front and back end so that they can face market competition effectively. Post-liberalization, India has seen tremendous changes in the tastes and preferences of the consumers as hey have become more assertive and demanding. Rising incomes and growing number of double –income families are triggering the demands for goods leading to proliferation of higher priced luxury goods in the Indian markets. The explosion of the IT sector and telecommunication has contributed to the growth of the retail market. The growing attractiveness of retail trade has driven the growth of the market and also drawn the interest of the retailers.

More MNCs (Multi National Companies) are entering this sector through joint ventures and franchise route. In countries where retailing has matured, outsourcing has favorably influenced the value capturing capacity and has contributed to the modernization of farming industry as well. It has driven down end–customer prices, created significant employment opportunities, has been a source of considerable revenue to the government and in general, has been a catalyst for creating a sizable quantum of wealth.

There are various areas of retail process outsourcing. The technology entailing computerization of retail operations, including inventory management, billing and payments as well as database management, widespread use of bar coding provide an upper edge in the retail store. There is the area of store design and store layout. A good retail store with attractive window display and an enticing entrance induces the customer into entering it. The store layout thus has to optimize the selling area by presenting merchandise in a very effective manner. Vendor management, warehouse management, logistic management, packaging, order processing, labeling, freight and bill payment are some other activities which can be outsourced. Even advertising is another area which is mostly outsourced. Outsourcing can also be done in terms of any research for concept testing, business feasibility analyses, studying the target market profile, analyzing consumer behavior etc. Sometimes even the core function of marketing is outsourced with the intention of business expansion through the franchise route. Visual merchandising is another area which is outsourced. It includes planning the theme, arrangement of props for display, fixtures, fittings, setting up of the store etc.

This process of outsourcing can be vividly understood through a retail company like Pantaloon. Pantaloon Retail India Ltd (PRIL) which was set up in 1992 has outsourced most of its activities including branding, apparel production, distribution and retailing. For example PRIL tied up with Arvind Mills (leading manufacturer of apparel and fabric) for manufacturing PRIL’s leading brands namely Bare, John Miller, Agile and AFL. To understand the changing market scenario, needs and preferences of the customers and for obtaining customer feedback on a regular basis, it has depended on market research agencies like ORG-MARG. The work of visual merchandising has been outsourced to GIBAM, an Italian firm. Even the store level, housekeeping, security and shop floor employment activities were also outsourced. All events such as parties, fashion shows, annual get-togethers and conferences are outsourced to event management companies. Outsourcing has ensured steady supply, optimization of resources and has released the dormant energy of the company got re-channelised into up-scaling of business operations all over India.


Tags
Trackback(0)
Comments (23)Add Comment
Administrator
...
written by Administrator, June 08, 2010
Walmart the biggest retailer is also the biggest company of the world.

The local kirana shops have innovated with time and survived the cannibalization very cleverly. They provide home delivery and credit which the big retailers lack.

Though, it will be interesting to see how they manage maintain their dominance with the further advent of retail companies, change in the shopping habit of the consumers, rise in per capita income and urbanization.

There is a lobby which is pushing hard for increased FDI in retail which can pave way for more investment by MNC.

As for the employment situation, till now the retail industry have created more employments but if the cannibalization of the local kirana shop occurs there will be more job loss than creation.
0
http://www.parisherveleger.com
written by Herve Leger, April 23, 2011
agnes b. herve leger is a French fashion designer. She is known for her self-named brand, which includes fashion and film interests.
agnes b. started designing menswear in 1981 after observing men appropriate clothes designed for women. She opened her first international store on Prince Street in New York's

SoHo district in 1983. Her enthusiasm for the city stemmed from her love of the American crime film genre, dubbed film noir in France. This interest extended to the store's

decor, which banded sleeveless dress included vintage, oversized movie posters. The one

-sheets would eventually draw the attention of filmmaker Harmony Korine, who would begin an artistic collaboration with agnes in 1999.
0
discount jewelry
written by discount jewelry, May 18, 2011
The article is very good, I like it very much. I will keep your new article.
-discount jewelry
0
...
written by Titanium Rings, June 28, 2011
For those of you who are purchasing Silver Jewellery or Titanium Necklaces, we realize that this is one of the most important purchasing decisions you will make.
0
coast clothing dresses
written by coast dresses, August 17, 2011
Coast dresses of 2011 summer full of vitality and color. This is your wardrobe an instant update of all those signals through the main trends for the coming occassion dresses 2011. Cheap coast clothing on sale, In order to buy coast dress you must keep yourself aware of the sale events happening in you town or local market. women dresses which are in fashion may not be in trend in coming season. So the shops, small manufacturer and even designer offer Coast dress Bridal at the end of a season. You can buy it easily.Finding a Coast dress Black Tie Event at discount rate or cheap rate does not mean that the Coast dress Races are of poor quality or it is a defective piece. http://www.coast-dress.com/
0
audemars piguet watches
written by qiqi, September 20, 2011
Thanks for the posting. Loads of excellent writing here. I wish I had found this site sooner

--------------------------------------
omega constellation watches

iwc spitfire
0
Louis Vuitton
written by Louis Vuitton, October 22, 2011
Louis Vuitton is a name never to underestimate. Its creations are among the wholesale designer Louis Vuitton to shop for. Among the designs that you may love are the Louis Vuitton Outlet Stresa PM bag in Damier canvas, LV Alma Tote in epi leather, LV Elegie Purse, and LV Tote.
0
http://www.uggbootssale-au.net/
written by UGG BOOTS Hannen, November 07, 2011
If you want to buy discount UGG BOOTS Hannen online, Here will be a better choice for you. There are many kinds of ugg boots sale on this website. ugg boot is a kind of specialized boot that anyone staying in areas. http://www.uggbootssale-au.net/ http://www.genuineuggboots-au.net/
0
Houston Home Security
written by Houston Home Security, November 08, 2011
This is what I have been searching in many websites and I finally found it here. Amazing article. I am so impressed. Could never think of such a thing is possible with it...I think you have a great knowledge especially while dealings with such subjects.

0
Coach Outlet Online
written by Coach Outlet Online, November 24, 2011
As a fashionista,Coach Outlet Online you should deeply
know how important Coach Factory Outletto collect a set of outfits in summer.
0
Coach Outlet Online
written by Coach Outlet Online, November 24, 2011
As a fashionista,Coach Outlet Online you should deeply
know how important Coach Factory Outletto collect a set of outfits in summer.
0
http://www.dvdbestonline.co/pr...et-36.html
written by Queer As Folk dvd collection, December 22, 2011
Christmas is coming, combine with great happiness and long-awaited reunion…This is a festival for all of us to enjoy our life, to appreciate this year’s harvest and growth, to share all the happiness and bitters with our family, our friends. Let`s write that letter we thought of writing "one of these days", today. In order to share this happiest time in a year, our website takes the role as Santa to send you the most sincere blessing and the most meaningful gift…Come to dvdbestonline to collect what you want, and we’ll send them to your hands with totally free shipping.
Queer As Folk dvd collection
0
louis vuitton outlet
written by louis vuitton outlet, December 26, 2011
You have to believe in yourself. That’s the secret of success .
It is not enough to be industrious

louis vuitton outlet

, so are the ants. What are you industrious for? All human wisdom is

summed up in two words ?C wait and hope.Goals determine what you are going to

be.Life is just a series of trying to make up your mind .Early to bed and

early to rise, makes a man healthy, wealthy, and wise. Anything one man can

imagine, other men can make real. Cowards die many times before their deaths.

A great man is always willing to be little.Victory won’t come to me unless I

go to . Beggars cannot be choosers. Lookers-on see most of the game. There is

no rose without a thorn.Time and tide wait for no man. Time is money.
tiffany uk
0
Throwback Authentic NFL Jerseys
written by Throwback Authentic NFL Jerseys, December 27, 2011
Mitchell and Ness are some of the popular websites that offer authentic Lights Out Jerseys to sports lovers. These two sites operate similar to eBay as suppliers post their ads for sports fan to bid on it. Finally,

the person who makes the highest bid owns the Sideline Black Jerseys. You can be lucky enough to own an authentic jersey as most of the apparels sold on these two sites are labeled as authentic and

genuine. Hence it's worth investing your money by buying a NFL Customized Womens NFL Jerseys from Mitchell or Ness.But if you are enthusiastic and eager to buy a good quality NFL jersey then it is better for you to purchase it from

a local sports dealer. Local sports dealer have a wide range of cheap and good quality one. Therefore, it becomes easier for you to purchase a NFL Cheap Bears Jerseys of your favorite player according to your size. Finally, you

can pay the local dealer in cash rather than paying through credit card which you usually do online to complete the transactions which is quite risky. Hence, there are many

advantages while purchasing a cheap NFL jersey from a local sports apparel store.
0
Coach Factory Outlet
written by Coach Factory Outlet, December 28, 2011
in theCoach Handbags unemployment rate, Chanel Pursesnow at 8.6 percent.
0
nice
written by replica rolex datejust watches, December 28, 2011
Until right now, they're not just the actual replica rolex daytona but additionally the actual image associated with style flavor. Nevertheless, replica Rolex GMT watches provide a opportunity for all those individuals with restricted spending budget.
0
belstaff bag
written by belstaff bag, December 29, 2011
0
...
written by Joe Flacco Womens Jersey, January 03, 2012
There is a wide price range of Joe Flacco Womens Jersey, and it is worth knowing how, where and why the prices vary, what you buy and where to get the best price. If you want a good NFL Jersey you need to know certain things. There are a number of different types of shirts in the NFL.Ray Lewis Womens Jersey
are usually more expensive and most can be searched for, but it will be good.
0
http://www.winterbootssales.com/
written by capulin black, January 29, 2012
ZY- THE Barbour Mens Jackets with the able adroitness and ugg boots are account of your purchasing.
0
...
written by northface coats, January 30, 2012
that is original as long as 100 points magic on can release of magic, now must 110 points magic to with has. course, ultimate form after all is belonging to strengthened class north face coats, Can't be only disadvantages. Although this form of Hare Krishna Sidina magic completely unable to auto-reply, all spells within can be 500 m distance to 20% proportion of absorbed back to complement their own magic.Playing a example, if a people release has a spells consumption 100 points magic, that as long as this spells appeared in Christopher Association na around 500 m range within, Klee Sidina on can are 20 points of Mana reply,
0
Microsoft Outlook
written by Office 2010, February 01, 2012
So if you don't need Office 2010 what you paid for go ahead and buy from them. The Outlook 2010
0
http://www.carsdiagnostictool.com/
written by obd2, February 01, 2012
As getting a auto owner, that is routinely a wonderful notion undertake a gadget box within of your Lexia-3 or garage. Apart of traditional assets like spanner or screwdriver, just one of numerous important assets which you merely have can be the Obd2 scan tools. What especially is definitely an Lexia-3 scanner why's it crucial tool? In circumstance you are vehicle's owner, there's grown probability that the potential auto arrives with On this cellular phone lexia three v46 functions because a terrific offer of auto produced today. The lexia three interface method consist of knowing inside the location of one's auto many sub systems.
0
...
written by True Religion Outlet, February 04, 2012
I love Juicy Couture Outlet Excellent article.I am decide to put into use one of True Religion Outlet Jeans Thank you for sharing it,To Your Success!

Write comment

security code
Write the displayed characters


busy
Last Updated on Tuesday, 08 June 2010 10:59