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The Study of Various Functions in Different Retail Formats
The Study of Various Functions in Different Retail Formats
Parinita Jain
Manu Goyal
Ajeet Singh
The Indian retail Story..
1. Indian retailing is expanding and is expected to reach at
US$637 billions by 2015.
2. Increased incomes, the demographic variability and vibrant
democracy.
3. With emergence of new stores format, is recording
phenomenal growth and will completely revolutionize
retailing over next five years.
4. Retail sector is contributing 10-14% to GDP employing
over 7-8% of total work force.
5. India is fifth preferred destination globally, estimating retail
market from US$350b(approx.) in 2008 to
US$430b(approx.) by 2010.
Advantage Modern Retailing
1) Employment Generation
2) Increasing efficiency in Agriculture
3) Enhance shopping experience for consumers
4) Creating a positive social Change
5) Economies of Scale
Challenges to Organized Retailing
Challenges Implication
Fragmented Supply Chain High wastage and high product cost
Multiple Legislative Laws Hinder fast expansion and increase overall
cost.
Cumbersome Labour Laws Limits organized retail business of 24*7
Escalating real estate prices Higher operational costs
Complexity in tax structure Rate,classification and procedure is different
across the country
Shortage of Manpower Beginning of specialized training centre and
specialized course on retail
Cultural Disparity Understanding customer choice and
preferences is different
Industry status Far away from benefits of Industry status
Key drivers to growth
Economic Growth
Urbanization
Consumerism
Brand profusion
Availability of real estate
Changing consumer needs and preferences
FDI
Increased investment in retail
A large unorganized sector
Organized
Retail
STAR BAZAAR
Format: Hypermarket
Launch: Bangalore
Selling proposition: Value for money
Store size: 75,000 square feet
Key categories: Food, grocery, general,
merchandising.
Plans: 50 stores in the next five years
Advantages
1. One of the largest live bakeries in the city offering
delicious cakes, pastries cookies, breads
2. Multiple check out counters to make your
shopping easier and faster
3. High quality products made available at extremely
low prices in the city
4. A wide range of private labeled apparels offering
the best value to customers
5. Unparalleled and irresistible offers and discounts
Merchandise assortment
• Beverages
• Basic Apparels
• Cutlery & Cookware
• Fruits & Vegetables
• Frozen & Dairy Products
• FMCG Products
• Grocery
• General Merchandise
• Home Care Products
• Staples
• Small White Appliances
• Personal Care & Cosmetics
• Ready to Cook/Prepared Food… etc
Customer Service
1. more. quality
2. more. variety
3. more. convenience
4. more. value
Promotions