tag:blogger.com,1999:blog-67892055828927472752024-03-05T19:33:13.080+05:30Tale of RetailA blog about the retail business around the globe!Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.comBlogger18125tag:blogger.com,1999:blog-6789205582892747275.post-50115987209268632472011-02-17T01:13:00.003+05:302011-02-17T01:32:23.429+05:30Failures of Retailing - Subhiksha & Vishal: A Ringing Bell<div dir="ltr" style="text-align: left;" trbidi="on"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEii_Ttu_nmfwX6mOaNvPyZ9_mfLoCq822nnmZ28L4jDmRHxYseBejJAQtVKoob4nGO2zHK-8ntgb-MFprz42vAKRBSfOhIVj3SNSa9KYvuzF9VTNSbUVsen_WVuW5hnGZv-uB8y5iAJjGIf/s1600/retail.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="138" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEii_Ttu_nmfwX6mOaNvPyZ9_mfLoCq822nnmZ28L4jDmRHxYseBejJAQtVKoob4nGO2zHK-8ntgb-MFprz42vAKRBSfOhIVj3SNSa9KYvuzF9VTNSbUVsen_WVuW5hnGZv-uB8y5iAJjGIf/s200/retail.jpg" width="200" /></a></div><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">With the booming Indian economy under the buzz words of liberalization, Globalization and Privatization, Indian retail industry is growing like anything. Many big giants like Carrefour and Wal-Mart are trying to enter into Indian market with the help of Indian Local Heavyweights but are tied by Indian Government . The expanding middle and upper classes has played a big role in the expansion of existing modern format stores and entry of new ones. The biggest question is “Have all of these stores been successful?” The answer is a big NO.</span></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Two of the biggest failures in the history of Indian retail – Subhiksha and Vishal Retail. Subhiksha was started by R. Subramaniam, an IIM A and IIT Chennai alumnus with its first store at Chennai. Ram Chandra Aggarwal set up his Vishal Garments Store in 1994 – three years before Biyani’s Pantaloon and seven years before setting up Vishal Retail. Both of them are discount stores at prices which are much lower than other retail outlets. <a href="http://www.blogger.com/post-edit.g?blogID=6789205582892747275&postID=5011598720926863247" name="_GoBack"></a></span></div></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Though, Subhiksha has closed down and Vishal is still in the market, there are some points of similarity in their fall from glory which are mentioned here-</span></div></div><div class="MsoNormal"><div style="text-align: justify;"><b><u><span class="Apple-style-span" style="color: white;">Un-mindful expansion spree across different parts of the country</span></u></b></div></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Subhiksha didn’t realize that with this only a few stores would be profitable and generate positive cash flows. It moved across different sectors such as medicine, grocery, IT, mobile etc very fast.Vishal expanded without having the proper capital. They got the orders from the suppliers but when the stores didn’t work out, the entire supply chain got choked.</span></div></div><div class="MsoNormal"><div style="text-align: justify;"><b><u><span class="Apple-style-span" style="color: white;">IPO problem</span></u></b></div></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Subhiksha was thinking of going for an IPO in 2007 but shelved it in view of “uncertain market conditions”. But I believe that they got greedy as they expected a market correction. Vishal on the other hand raised Rs 110 crore from an IPO in June 2007 which wasn’t enough to meet it scorching growth pattern. It had 50 stores by then and was looking to expand to 130 stores in a year. But it went for short term debt which resulted in a big blow to their entire supply chain when the stores didn’t happen as intended.</span></div></div><div class="MsoNormal"><div style="text-align: justify;"><b><u><span class="Apple-style-span" style="color: white;">Both of them didn’t consolidate</span></u></b></div></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Subhiksha and Vishal instead of stabilizing and consolidating themselves first in different places and then moving to newer locations, tried to be the first in every town.</span></div></div><div class="MsoNormal"><div style="text-align: justify;"><b><u><span class="Apple-style-span" style="color: white;">Poor inventory management</span></u></b></div></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Subhiksha had a bad history of credit defaults and this led to supply breakages. This led to situations where sometimes the store had very high inventory and at others, the stocks were out. This led to great dissatisfaction. Vishal’s distribution center led model failed as it couldn’t build an IT network. Buying at warehouses was mostly not aligned to what the customers needed and resulted in dead inventory.</span></div></div><div class="MsoNormal"><div style="text-align: justify;"><b><u><span class="Apple-style-span" style="color: white;">Private Labels</span></u></b></div></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Vishal tried to develop private labels in almost every category but had limited scale to support them. Same was with Subhiksha trying to give impossible discounts on its own labels.</span></div></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Subhiksha closed down in 2009 amid allegations of defaults, non – wages payments and bankruptcy. The people behind it are still struggling to come up with valid explanations.Vishal has brought down the rentals of the properties, decreased its expenses and closed down two dozen stores and warehouses and plans to close more. </span></div></div><div class="MsoNormal"><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;">Will there be more Subhikhsha’s or Vishal’s is under the cover of future ,but these two give lessons to other retailers to make proper stepping stones before climbing the ladder up in vastly growing Indian Retail Biz.</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="color: white;"><br />
</span></div><span class="Apple-style-span" style="color: cyan;">Contributed By:</span><br />
<span class="Apple-style-span" style="color: cyan;">Deepak Jain</span><br />
<span class="Apple-style-span" style="color: cyan;">(Batch 2009-11)</span></div></div>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com2tag:blogger.com,1999:blog-6789205582892747275.post-60432115904149531172010-08-26T04:54:00.002+05:302010-08-26T04:58:42.937+05:30FDI in Indian Retail<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDkK71rqZYqQIrb3Oa2BLOjhaeH9UKr8aN9w9lY5yleWO7zommPQKgLGeAwMqnQrybOTswxRux5LCs_-Qx1XScLVi2Tz3kKtKILs9IfvoqalJ4s7AEhL-K25FjrGUlgnDXPqQ1yWNf0iR7/s1600/3104-india-retail.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><span class="Apple-style-span" style="color: black;"><img border="0" height="127" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDkK71rqZYqQIrb3Oa2BLOjhaeH9UKr8aN9w9lY5yleWO7zommPQKgLGeAwMqnQrybOTswxRux5LCs_-Qx1XScLVi2Tz3kKtKILs9IfvoqalJ4s7AEhL-K25FjrGUlgnDXPqQ1yWNf0iR7/s200/3104-india-retail.jpg" width="200" /></span></a></div><div class="MsoNormal" style="text-align: justify;"><span class="Apple-style-span" style="line-height: 18px;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="color: white;">Indian organized retail industry is one of the sunrise sectors with huge growth potential. Total retail market in India currently stands at USD 353 billion in 2009-10 and estimated to attain USD 543 billion by 2013-14. Organised retail industry accounts for only 5.5% of total retail industry and expected to reach 10% by 2012. The success of Indian economy in bouncing back from global economic slowdown is making it a favorite beneficiary of foreign direct investment (FDI).</span></span></span></div><div class="MsoNormal" style="text-align: justify;"><span style="line-height: 115%;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="color: white;">More and more global players are eying the developing countries like India and their consumption market to lay the roots of their retail chains. Moreover, to cater the needs of the growing and changing society these global giants are invited by government for direct as well as indirect investments. Currently, Indian Government allows up to 100% FDI in Cash and Carry (B2B), 51% FDI in single-brand retail – that means, the brand can sell various categories of products with the same brand identity – apparel, accessories, watches, footwear, etc. Insofar single brand retail, the restriction is to ensure that Joint Ventures are formed only with Indian partners, thereby benefitting Indian business houses. <o:p></o:p></span></span></span></div><div class="MsoNormal" style="text-align: justify;"><span style="line-height: 115%;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="color: white;">The government recently came out with a concept note on foreign direct investment (FDI) in multi-brand retail trading. This is an emotional issue, and has been placed on the back burner by successive governments in response to fears about its impact on small retailers, who are large generators of employment. This fear is worthy of examination. Trade constitutes around 15% of our gross domestic product, of which retail trade makes up at least half. The retail sector is the second largest employer after agriculture, providing job opportunities to at least 33 million people. Few can underestimate the importance of being circumspect with regard to any legislation that will affect so many jobs. Those favouring the entry of FDI in retail argue that FDI inflow in retail sector is vital for the growth of the country’s agricultural sector and rural infrastructure. Moreover, the massive employment opportunities provided by the capital inflow is immensely helpful in sustaining the economy of the rural segment. Improvement in farmer income, reining in consumer prices and thereby inflation and elimination of inefficiency in the supply chain structure are some of the advantages pointed out. Prosperity of rural areas and growth in agriculture being two major criteria for the country’s economic well-being, the idea of FDI in retail is finding many takers. <o:p></o:p></span></span></span></div><div class="MsoNormal" style="text-align: justify;"><span style="line-height: 115%;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="color: white;">However, detractors argue that, FDI in retail would displace small vendors resulting in loss of jobs and livelihood. Small-time farmers need to be organized to have any bargaining power. This needs to be addressed, so do other important issues like electricity and surface water.Still discussion and arguments are going on this topic. To tackle this problem, the department of industrial policy and promotion (DIPP) floated a paper to elicit feedback from various stakeholders on this contentious issue. This sector has a potential for tremendous growth and decision on this policy reform has enough power to give a new and dynamic direction to India’s economic growth.</span></span></span><br />
<span style="line-height: 115%;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><br />
</span></span><br />
<span style="line-height: 115%;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="color: #ffeedd; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 14px; line-height: 20px;"></span></span></span><br />
<span style="line-height: 115%;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><div style="text-align: justify;"><span style="font-family: 'Times New Roman', serif; line-height: 16px;"><span class="Apple-style-span" style="font-size: large;"><span class="Apple-style-span" style="color: #33ffff;">Contributed by:</span></span></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="color: #33ffff; font-family: 'Times New Roman', serif;"><span class="Apple-style-span" style="font-size: large; line-height: 16px;">Jinan Shah</span></span></div><div style="text-align: justify;"><span class="Apple-style-span" style="color: #33ffff; font-family: 'Times New Roman', serif;"><span class="Apple-style-span" style="font-size: large; line-height: 16px;">Batch 2009-11</span></span></div></span></span></div>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com3tag:blogger.com,1999:blog-6789205582892747275.post-79150542689299142892010-08-11T18:47:00.005+05:302010-08-11T19:00:08.073+05:30Smart Sign- Retail’s Call of Hour<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSVnxDKlX7-E2qWA0jFa7wjGdRDxJKb-Z46uJa7WaWv6s3v4_GHTHNH3DzQdTUg53UwpITAkJlTj4I2uE5Gsaz6PNRLDz1BMDe4nZCLUCLHocN0mxMdXzAPAtdQ9oVYfuSmHpHKlKmyp_S/s1600/sapna.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 200px; height: 149px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSVnxDKlX7-E2qWA0jFa7wjGdRDxJKb-Z46uJa7WaWv6s3v4_GHTHNH3DzQdTUg53UwpITAkJlTj4I2uE5Gsaz6PNRLDz1BMDe4nZCLUCLHocN0mxMdXzAPAtdQ9oVYfuSmHpHKlKmyp_S/s200/sapna.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5504143844920881410" /></a><span style="line-height: 115%; font-family:'Times New Roman', serif;"><span class="Apple-style-span" style="font-size:large;"><br /></span></span><div><span style="line-height: 115%; font-family:'Times New Roman', serif;"><span class="Apple-style-span" style="font-size:large;">The best of technology giants has come up together with their latest avatar for retail industry i.e. <b>‘Smart sign’</b>. As with immense competition in retail industry, customization has become the key for success. ‘Smart Sign’ is comprised of Intel’s superior chip technology and unmatched software quality of Microsoft. Smart Sign has been developed in order to understand the fast changing needs of retail customer and to provide customers customised products and offerings based on their demographics (age, gender) observed. It makes use of LCD display, cameras and specialised software at the shelf space itself. The Smart Sign technology would help the companies to use new digital sign technology. It creates the profile of the customers just by observing the age, gender of the customer without asking a single question to you if the customer is registered or not and if in case a customer touches a certain product then they will receive the discount coupons for buying that products and the location of that product in the shop on their cell phone immediately. Such technology will provide a provide a real advertising medium for the retailer which will unable the to understand the changing needs of the customers , focussed approach , customer convince , One to one marketing and judicious use of advertising budget. </span></span><span style="line-height: 115%; font-family:'Baskerville Old Face', serif;"><span class="Apple-style-span" style="font-size:large;">It provides easy way to customise the offerings according to individual needs. It saves cost of advertising by targeting the right audience hence thereby decreasing the expense over advertisement shifting mass media advertisement to one to one advertisement. Further, it enhances the basket size of customer by providing the offers and schemes.</span></span><span style="line-height: 115%; font-family:'Times New Roman', serif;"><span class="Apple-style-span" style="font-size:large;">However, it will affect the customer privacy and accuracy of the software is challengeable.</span></span><br /><div style="text-align: justify;"><span style="line-height: 115%; font-family:'Times New Roman', serif;"><span class="Apple-style-span" style="font-size:large;"><br /></span></span></div><div style="text-align: justify;"><span style="line-height: 115%; font-family:'Times New Roman', serif;"><span class="Apple-style-span" style="font-size:large;"><br /></span></span></div><div style="text-align: justify;"><span style="line-height: 115%; font-family:'Times New Roman', serif;"><span class="Apple-style-span" style="font-size:large;"><span class="Apple-style-span" style="color:#33FFFF;">Contributed by:</span></span></span></div><div style="text-align: justify;"><span style="line-height: 115%; font-family:'Times New Roman', serif;"><span class="Apple-style-span" style="font-size:large;"><span class="Apple-style-span" style="color:#33FFFF;">Prof. Sapna Parashar</span></span></span></div></div>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com2tag:blogger.com,1999:blog-6789205582892747275.post-3149187581131254052010-07-18T00:23:00.003+05:302010-07-18T00:35:43.550+05:30Destination India!!!!<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmT65D5nZstwBapZ-u_UetHEyHkK97AspzeorS6UeWBpAVcFPOlyQBAIJCfLeh3TfYt1M2Fpvc0hUEUIR3STDqED3_QLKpvRz3wcxlzx_16qF-qF2wPmEqDFiZrDaEjCMZVfTq1HxOv7O5/s1600/India+moon.png"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 320px; height: 219px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmT65D5nZstwBapZ-u_UetHEyHkK97AspzeorS6UeWBpAVcFPOlyQBAIJCfLeh3TfYt1M2Fpvc0hUEUIR3STDqED3_QLKpvRz3wcxlzx_16qF-qF2wPmEqDFiZrDaEjCMZVfTq1HxOv7O5/s320/India+moon.png" border="0" alt="" id="BLOGGER_PHOTO_ID_5494952451132250066" /></a><br />Retailer, refers to "cutting off, clip and divide" in terms of tailoring. The French brought the concept of organised retailing in form of Bon Marche in Paris and did it in a fashionable way. The Britishers adapted it throughout their empire and the Americans modified it, made it efficient and played with the economies of scales. But now it is Destination India, the largest democracy in the world, is all set to welcome the world of organised retailing. But in order to succeed, retailing would have to undergo a major metamorphosis in order to adapt to the Indian market condition. India is the hot favourite destination for all the leading retail chains across the globe. With Indian economy on an upsurge, and the disposable income of the population on an increase, with the expanding middle class, they shall have the taste, if they enter the market with the correct strategy and strategic partner.<br /><br />The organised retail consists of only 6% of the $20 billion retail market in India and is growing at a rate of 20% per annually, has all the potential to cash on, and thus, excellent incentive for the cash rich foreign retailers to enter the Indian Market. The likes of Walmart, Tesco, Carrefour, Starbucks, Arstana, GAP & other international giants are already in or set to enter the Indian terrain. But there are few political and social barriers for these companies to enter the Indian market. The Indian govt’s FDI policy allows only 51 % foreign direct investment in single brand outlets, and the multi-brand outlets being restricted to only cash and carry formats. Also the current 12 million small Kirana shops in the unorganised Indian retail sector employ more than 33 million people. With the growth of the organised retail sector, these kirana shops face a slow but sure death, hence affecting the millions employed. The Indian goverment cannot ignore these facts, and hence have to put the brakes on the FDI. These policies compile the foreign retailers to join a strategic partnership with an Indian firm, thus clipping their wings and taking away the full operational freedom.<br /><div><br /></div><div>Courtesy-</div><div><br /></div><div>Aditya Desai</div><div>FT Batch 2009-2011</div>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com2tag:blogger.com,1999:blog-6789205582892747275.post-23749951946933252872009-08-20T22:27:00.004+05:302009-08-20T22:35:24.819+05:30Rainbow Coalition : Is it feasible?<meta equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 12"><meta name="Originator" content="Microsoft Word 12"><link rel="File-List" href="file:///C:%5CUsers%5CDevanshu%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_filelist.xml"><link rel="themeData" href="file:///C:%5CUsers%5CDevanshu%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_themedata.thmx"><link 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mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:Mangal; mso-bidi-theme-font:minor-bidi;} .MsoPapDefault {mso-style-type:export-only; margin-bottom:10.0pt; line-height:115%;} @page Section1 {size:612.0pt 792.0pt; margin:72.0pt 72.0pt 72.0pt 72.0pt; mso-header-margin:35.4pt; mso-footer-margin:35.4pt; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0cm; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; mso-bidi-font-size:10.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} </style> <![endif]--> <p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN">Did you ever imagine that one day, Aditya Birla, Future Group and few other big shots in the retail industry would be shaking hands together to achieve a common interest??</span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u4:p></u4:p><u5:p></u5:p><u6:p></u6:p> <p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN">Well well....................... this is business we are talking about, anything is possible.</span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u4:p></u4:p><u5:p></u5:p><u6:p></u6:p> <p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN">Cut-throat competition in </span><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif";" lang="EN-IN">India’s organised retail industry<span style="color: black;"> seems to have paved way to harmony, with top players such as the Future Group, Aditya Birla Retail, Spencer’s and Reliance Retail coming together to cut operational costs and improve margins. The retailers have formed a rainbow coalition that will align their sourcing operations and share private labels, logistics, warehouses and hiring details on a transactional payment basis.</span><u4:p></u4:p> </span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u6:p></u6:p> <p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN"><u5:p></u5:p><u6:p></u6:p>“We may fight at the front-end but we need not compete at the back-end,” is the norm they have applied. Collaboration is the way forward in retail and they have taken lessons from telecom players that share towers. “Our infrastructure and resources are designed to be shared with others,” said Kishore Biyani, who runs Future Group, the country’s leading retail player. Retailers are hoping to improve their operating margins by 2-3% by sharing back-end resources. Most players in the Rs 30,000-crore plus organised retail industry are affected by teething problems and the economic downturn. Grocery formats have recorded huge losses, forcing retailers such as Reliance Fresh, Birla’s More, Indiabulls and Spencers to shut down unviable outlets and halt expansion.</span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u4:p></u4:p><u5:p></u5:p><u6:p></u6:p> <p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN">The retailers clarified that this move doesn’t amount to cartelisation, as the cooperation among players is limited to the back-end . The players are discussing ways to sell private labels to each other and collaborate on shrinkage—essentially a diminution in inventory due to shoplifting, employee theft or supplier fraud. The collaboration can be extended to include sale of each retailer’s power brands, not necessarily store brands. The move essentially focuses on how to cut costs in supply-chain and third-party manufacturing. It is a common practice abroad where the eco systems are far developed. Retail companies are currently focused on bringing down distribution costs by eliminating intermediaries and transport delays between the sourcing point and point of sale.This idea would solve many problems faced by the retailers. </span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u4:p></u4:p><u5:p></u5:p><u6:p></u6:p> <p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN">But is it a complete solution? </span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u4:p></u4:p><u5:p></u5:p><u6:p></u6:p> <p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN">In grocery, burdened by consumer expectations of more frills compared to no-frills kirana shops, modern formats had to shell out 30% higher costs on rent, energy, bar codes, air-conditioning, bright lights and other aspects. Also, lifestyle retailers were forced to mark down prices to move volumes as consumers traded down to more affordable brands in a challenging environment. The collaboration also addresses issues such as unused furniture or design and completion of shell space—that instead of lying unattended in warehouses can be sold to fellow retailers. Then there is the issue of modern retailers who are keen to promote their own private labels. Under the new concept, retailers may have to sell such labels to each other.</span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u4:p></u4:p><u5:p></u5:p><u6:p></u6:p> <p style="margin: 0cm 0cm 10pt; text-align: justify; line-height: 115%;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN">It is a welcome concept but needs to be complemented by developing the systems and procedures as the Indian retail sector is still growing. There are various issues also that need to be tackled parallely for the model to be finalised. Such a joint proposal would also need to address nimble mom-and-pop stores that are swifter in merchandising and understanding local nuances and requirements. Modern formats with their regional and central sourcing structures typically are unable to compete in such a situation. While the plans seem extremely smart, very often issues crop up during the implementation stages. Retail is a business of detail and when there are too many players involved, issues of funding and ownership tends to derail the progress. </span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u4:p></u4:p><u5:p></u5:p><u6:p></u6:p> <p style="margin: 0cm 0cm 10pt; text-align: justify; line-height: 115%;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif"; color: black;" lang="EN-IN">So, let us keep track on the moves of the big giants of the retail industry – as to whether they have gone ahead with this model or planning for something new. </span><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></p> <u5:p></u5:p><u6:p></u6:p> <p class="MsoNormal" style="text-align: justify;"><span style="font-size: 10pt; line-height: 115%; font-family: "Arial","sans-serif";" lang="EN-IN"><u4:p></u4:p><u5:p></u5:p><u6:p></u6:p><u4:p>Contributed By :<span style=""> </span>
<br /><b></b></u4:p><b>Aasritha Poorna (MBA FT II)</b></span><b><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p></o:p></span></b></p> <u5:p></u5:p><u6:p></u6:p> <p class="MsoNormal"><span style="font-family: "Arial","sans-serif";" lang="EN-IN"><o:p> </o:p></span></p> <u5:p></u5:p><u6:p></u6:p><u6:p></u6:p>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com1tag:blogger.com,1999:blog-6789205582892747275.post-31509981805301601442009-07-24T23:07:00.003+05:302009-07-24T23:12:11.748+05:30CAN RETAIL SURVIVE ??<p style="margin-top:7.5pt;margin-right:0cm;margin-bottom:7.5pt;margin-left: 0cm;text-align:justify;line-height:16.8pt"><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Retailers did everything possible to attract buyers over the holidays. From educational sessions to discounts, coupons and special offers, retailers used their ingenuity and marketing smarts to make the best of a dismal season.</span></span><span style="mso-spacerun:yes"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Nonetheless, numbers were down and every indicator pointed toward an even gloomier 2009. Perhaps the very profile of the retail environment has shifted as consumers settle in for what may be a protracted economic change. </span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p> <p style="margin-top:7.5pt;margin-right:0cm;margin-bottom:7.5pt;margin-left: 0cm;text-align:justify;line-height:16.8pt"><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Here are some ways in which retailers can survive through the second half of the 2009 buying season and keep their business on track.</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><strong><i style="mso-bidi-font-style:normal"><span style="color: rgb(29, 29, 29); "><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Don't Take Your Foot off the Gas: </span></span></span></i></strong><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Remember the hectic holiday season while you did everything possible to make your business a success? No matter how tired you are or how discouraged you might feel, it's time to keep your chin up and continue marketing to your customers. A reduction in marketing efforts is</span></span><span class="apple-converted-space"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> simply </span></span></span><i><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">not</span></span></i><span class="apple-converted-space"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">an option. Marketing keeps you in front of your current customers, enlightens prospects and positions you well for when the economy recovers. Those who stop marketing often find themselves losing precious momentum and having to make up ground in the long run.</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><strong><span style="color: rgb(29, 29, 29); "><o:p><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></o:p></span></strong></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><strong><i style="mso-bidi-font-style:normal"><span style="color: rgb(29, 29, 29); "><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Make Every Customer a Repeat Customer: </span></span></span></i></strong><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">You forged new relationships over the holiday season and strengthened old ones. Now is the time to take better advantage of those relationships and transform one-time buyers into frequent customers. Though statistics vary by type of business, product and service, it's clear that it costs more to acquire a customer than to retain an existing one. Whether asking customers to sign up for your product newsletters or offering frequent-user discount cards, you have ways to re-engage buyers.</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><span style="color:#1D1D1D;"><o:p><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></o:p></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><strong><i style="mso-bidi-font-style:normal"><span style="color: rgb(29, 29, 29); "><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Intuition Is Not Enough: </span></span></span></i></strong><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Customers make or break your business. You must cater to your clientele and that means knowing what they want. Use resources such as your newsletters, brochures, etc. to distribute an open-ended customer survey. Actually read customer feedback and make adjustments accordingly, so customers can see you're making real changes based on that feedback. But make sure you track the effectiveness of those changes in your marketing strategies on a monthly basis.</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><span style="color:#1D1D1D;"><o:p><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></o:p></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><strong><i style="mso-bidi-font-style:normal"><span style="color: rgb(29, 29, 29); "><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">ROI: </span></span></span></i></strong><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Stop any spending that isn't directly resulting in customer acquisition or sales. Your rupees are tighter than ever, so managing them is critical. Examine your marketing mix and invest wisely. There are plenty of low-cost communications channels that have significant return on investment (ROI).Talk to your customers about what resonates with them and where they are now, and make decisions from there.</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><strong><i style="mso-bidi-font-style:normal"><span style="color: rgb(29, 29, 29); "><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Think Thematically and Theatrically: </span></span></span></i></strong><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Retailers are great at this: They find a seasonal hook and exploit it - pulling together displays, product offerings and so on - so that entire campaigns are tied together. However, this approach shouldn't stop at product marketing. marketing communications should reflect the same cohesive thinking. Timing each communications piece - press announcements, online ad campaigns, etc - to work in sync with the overall campaign can increase the effectiveness of your efforts and your overall brand resonance. Retailers should</span></span><span style="mso-spacerun:yes"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">surround their </span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">customers with the right message, both online and offline. </span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><span class="Apple-style-span" style="color: rgb(29, 29, 29); font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><br /></span></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">So, Plan ahead! </span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p> <p style="margin-top:7.5pt;margin-right:0cm;margin-bottom:7.5pt;margin-left: 0cm;text-align:justify;line-height:16.8pt"><span style="color:#1D1D1D;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Thus it can be concluded that today’s customers are different from those you encountered even a year ago. They expect more of everything - more information, more choices and more convenience. The energy, enthusiasm, and efforts retailers put into their holiday and festival campaigns can continue to pay dividends this year</span></span><span class="apple-converted-space"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></span><i><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">if</span></span></i><span class="apple-converted-space"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">they continue to face each day with the same vigor and determination </span></span><span style="mso-spacerun:yes"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">displayed over the holidays and in the festive season.</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><o:p></o:p></span></span></span></p><p style="margin-top:7.5pt;margin-right:0cm;margin-bottom:7.5pt;margin-left: 0cm;text-align:justify;line-height:16.8pt"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Contributed By: </span></span></p><p style="margin-top:7.5pt;margin-right:0cm;margin-bottom:7.5pt;margin-left: 0cm;text-align:justify;line-height:16.8pt"><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;">Rohan Naik</span></span></span></p> <p style="margin:0cm;margin-bottom:.0001pt;text-align:justify;line-height:16.8pt"><span style="color:#1D1D1D;"><o:p><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"> </span></span></o:p></span></p>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com2tag:blogger.com,1999:blog-6789205582892747275.post-31899554965966259712009-07-08T00:56:00.004+05:302009-07-08T01:03:15.403+05:30RETAIL RESURRECTION : VISION GOING AHEAD<p class="MsoNormal" style="text-align:justify"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">When Sam Walton started his first retail outlet, even he would not have been sure of where it would take him and the paradigm shift he would give to the age old tale of retailing. From the sixties to this millennium, retail has evolved from being “the monkey” to being a </span></span><span style="mso-spacerun:yes"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> </span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">“homo-sapien”. The evolution has been swift primarily because of the turnaround from supply side economics to demand oriented economics. One base learning that has been deeply enrooted in me during the course of my curricular studies is that “</span></span><i style="mso-bidi-font-style: normal"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Customer is the King</span></span></i><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">”, or more appropriately, “</span></span><i style="mso-bidi-font-style: normal"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">A profitable customer is the king</span></span></i><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">”. On a pure philosophical level, the shift from capitalism to consumerism is something like the patriarchy giving way to democracy, and one thing is for sure: it is here to stay. </span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="text-align:justify"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">The questions that this evolution is posed with are multiple, but the need of the hour is to find the perfect retail mix or whether it even exists or not. Romantically speaking, the current economic crisis has opened more possibilities than ever. For the real hero an adversity is more of a testing ground than something to give an excuse about: Darwin’s theory of survival of the fittest thwarts the same fact. In this light, what is really that would make “the fit”-“fitter” can be viewed in the following ways:</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="text-align:justify"><b style="mso-bidi-font-weight: normal"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Collaboration Vs. Competition</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></b></p> <p class="MsoNormal" style="text-align:justify"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">In the retail industry, it is common to have high footfalls but low conversion. To tackle this issue an alternative approach can be reengineering the supply chain not only on a company level but on an intra industry level. Integrating competitor resources together would only add buyer’s power to the cumulative retail sector. Common sourcing can be one way of going ahead. This would be helpful in getting better margins from manufacturers and would also be helpful in developing the organised retail market. The solution may be similar to the collaborative approach that is adopted by the banking sector in interbank ATM transactions that has made a tremendous improvement in terms of reach and more importantly market penetration.</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="text-align:justify"><b style="mso-bidi-font-weight: normal"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Technology as facilitator Vs. Technology as value provider</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></b></p> <p class="MsoNormal" style="text-align:justify"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Technology has always been looked upon as the facilitator of business activities but now looking at the expectations of consumers, technology should be looked at as a value provider. The new role of technology would impart it an unprecedented position in the coveted retail mix. This requires a fundamental shift of position driven by change in consumer perception towards technology. The awe that consumers had towards technology in the 20</span></span><sup><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">th</span></span></sup><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> century has been replaced by an expectation of consumers that stores should minimally have “state of art” IT infrastructure. This new demand for technology can only be captured by surprising the customers with an altogether new standard of technology. Not only would it add to the value proposition of the retailer it would also help tapping the new information age, tech savvy customer.</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="text-align:justify"><b style="mso-bidi-font-weight: normal"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Employees Vs. Business Facilitators</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></b></p> <p class="MsoNormal" style="text-align:justify"><i><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">"It's ironic that retailers and restaurants live or die on customer service, yet their employees have some of the lowest pay and worst benefits of any industry. That's one reason so many retail experiences are mediocre for the public."</span></span><span style="mso-spacerun:yes"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> </span></span></span></span></i><span lang="EN-IN" style="line-height:115%"><span style="mso-spacerun:yes"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> </span></span></span><b><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Howard Schultz</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></b></span></p> <p class="MsoNormal" style="text-align:justify"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">When someone enters a shopping arcade one of the biggest turnoffs is the undernourished, exhausted looking employees that retail stores have. In this information age the role of sales executives has to change to being purchase facilitators in the true sense of the phrase. A major boost to this idea will be revaluation of the compensation structure. The training of employees at the grass root level is important and would only enhance the conversion rate.</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="text-align:justify"><span lang="EN-IN" style="line-height:115%"><o:p><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> </span></span></o:p></span></p> <p class="MsoNormal" style="text-align:justify"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Drawing conclusion from the above mentioned ideas, the tale of retail would have a “happily ever after” continuum when the entire concept of retail is restructured, renovated and rejuvenated with greater enthusiasm. Eventually the shopping experience has to be enriched by enhancing quality through conscious endeavours of innovating and adding value. Lastly, the way to a resurrected retail sector in terms of quality of shopping experience can be elucidated by the following lines by </span></span><b style="mso-bidi-font-weight:normal"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">William A. Foster</span></span></b><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="text-align:justify"><span lang="EN-IN" style="line-height:115%"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">“</span></span><i><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skilful execution; it represents the wise choice of many alternatives."</span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><o:p></o:p></span></span></i></span></p> <p class="MsoNormal" style="text-align:justify"><span class="Apple-style-span" style="font-style: italic; line-height: 18px; "><span class="Apple-tab-span" style="white-space:pre"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> </span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Contributed By</span></span><span class="Apple-style-span" style="font-style: normal; line-height: normal; "><i><span lang="EN-IN" style="line-height:115%"><span style="mso-tab-count:8"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> </span></span><span class="Apple-tab-span" style="white-space:pre"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> </span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"></span></span></span></span></i></span></span></p><p class="MsoNormal" style="text-align:justify"><span class="Apple-style-span" style="font-style: italic; line-height: 18px; "><span class="Apple-style-span" style="font-style: normal; line-height: normal; "><i><span lang="EN-IN" style="line-height:115%"><span style="mso-tab-count:8"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> </span></span></span></span></i><b style="mso-bidi-font-weight:normal"><span lang="EN-IN" style=" line-height:115%;mso-bidi-font-style:italic"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Devesh Srivastava </span></span><span style="mso-tab-count:8"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> <span class="Apple-style-span" style="font-family: Georgia; font-size: 16px; "><span style="mso-tab-count:8"><span class="Apple-style-span" style="font-size: 13px; "><span class="Apple-style-span" style="font-family: arial; "></span></span></span></span></span></span></span></span></b></span></span></p><p class="MsoNormal" style="text-align:justify"><span class="Apple-style-span" style="font-style: italic; line-height: 18px; "><span class="Apple-style-span" style="font-style: normal; line-height: normal; "><b style="mso-bidi-font-weight:normal"><span lang="EN-IN" style=" line-height:115%;mso-bidi-font-style:italic"><span style="mso-tab-count:8"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><span class="Apple-style-span" style="font-family: Georgia; font-size: 16px; "><span style="mso-tab-count:8"><span class="Apple-style-span" style="font-size: 13px; "><span class="Apple-style-span" style="font-family: arial; "> </span></span></span><span class="Apple-style-span" style="font-size: 13px; "><span class="Apple-style-span" style="font-family: arial; ">Pankaj Kaul</span></span><span style="mso-tab-count:1"><span class="Apple-style-span" style="font-size: 13px; "><span class="Apple-style-span" style="font-family: arial; "> </span></span></span><span style="mso-spacerun:yes"><span class="Apple-style-span" style="font-size: 13px; "><span class="Apple-style-span" style="font-family: arial; "> </span></span></span><span style="mso-spacerun:yes"><span class="Apple-style-span" style="font-size: 13px; "><span class="Apple-style-span" style="font-family: arial; "> </span></span></span></span></span></span></span></span></b></span></span></p>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com3tag:blogger.com,1999:blog-6789205582892747275.post-74551534114493238142008-11-30T00:37:00.001+05:302008-11-30T00:38:28.529+05:30FORECOURT RETAIL IN INDIA: An Emerging Concept<p>Another important development in the Indian retail industry is the emerging concept of Forecourt Retailing, a retail format having an unlimited growth potential in India.<br />With the rising fuel prices, the margins of the oil companies are being hit hard. More and more emphasis is being given to layout planning, visual appeal, customer service and providing value added services to the consumers. Since, fuel is a commodity and there exists no brand loyalty in the customer’s mind so the companies are trying to 32 woo customers to their fuel stations by providing other ancillary services. It is with this objective that more and more companies are entering into the concept of forecourt retailing. Although the industry is still in its infancy stage of its life cycle, unlike in other places like US and Europe where the industry has matured to quite an extent. In the Asia Pacific region, only the Japanese market has accepted the concept of Forecourt Retailing and in other parts including India, the industry has had a very dismal start.<br />There exists a strong synergy between Forecourt Retail business and Fuel Retail industry. The various aspects which provide strong linkages between the two industries are:</p><p><br />1. Network: The network of the fuel stations is very huge. They are present in each and every part of the country.<br />2. Location: owing to its ubiquitous presence, the fuel stations are located in almost every major locality and cater to all the economic segments with are in need of fuel.<br />3. Number of Footfalls: The number of footfalls in a typical fuel station is almost comparable to that of any big supermarket. Each day, lakhs of people visit these fuel stations to get their automobiles re-fuelled.<br />4. Space Availability: Most of the fuel stations have much idle space available within their premises. This space can be better utilized to conduct some sort of retailing business like coffee shop, convenience store etc.<br />5. Financial Backing: All the players operating in the fuel retail sector are very sound in terms of financial strength. This means that if they have the capability to venture into forecourt retail in a big way and scale up rapidly.</p><p><br />Indian Oil is planning to partner with existing retailers, such as Apollo, for pharmacies, Subhiksha, bookseller Crossword and Cafe Coffee Day. This' is similar in concept to the "In & Out" retail store format at competitor Bharat Petroleum Corp. Ltd, which has formed strategic alliances with major brand owners, retailers, and music stores Planet M and Music World, among others.<br />Globally, petrol pump-based convenience stores have developed into large businesses with companies such as Royal Dutch Shell Pic., Caltex Australia Petroleum Pty Ltd, and BP. Generating profits from convenience store chains. India's organized retail business is quite nascent, constituting 3%, or $6.4 billion, of an estimated $200 billion Indian retail business. Consultant KPMG estimates that the share of organized retailers will reach $23 billion by 2010. A KPMG survey says most large retailers expect to grow in excess of 40% per annum in the next three years. Indian Oil, which racks up losses on its core fuel sales at such stations, is hoping it can benefit from that growth and start generating profits from its essentially existing, sunk cost. To read the initiatives taken by Bharat Petroleum …………….<br /><a href="http://www.bharatpetroleum.com/wheels/inOutStores.asp">http://www.bharatpetroleum.com/wheels/inOutStores.asp</a></p>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com0tag:blogger.com,1999:blog-6789205582892747275.post-82682015951783238542008-09-11T14:18:00.001+05:302008-09-11T14:21:34.455+05:30Zooming ahead with Petro Retailing<div align="justify"></div><p align="justify">Retail is one of India’s largest industries, accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment. With a contribution of 12% to this industry, the petroleum retail sector is one of the largest segments of the industry. The petroleum retailing industry in India faces significant challenges in the deregulated environment with low product differentiation, lack of customer loyalty, coupled with intense competition, a downward pressure is exerted on margins forcing players to adopt new and innovative strategies .India has deregulated the pricing mechanism for retail petroleum in 2002, enabling new players to enter the market. The entry of new players like Reliance will increase the number of stations from existing 19,000 to over 30,000 in the next 4-5 years. This will also reduce the average throughput per station, and total fuel volumes per player. With a market determined pricing mechanism, prices will have to be lowered, thus reducing margins from fuel products. With limited growth in the number of vehicles, the retail fuel volumes will remain stagnant, thus offering little scope for further improving the overall revenues and margins. In such scenario, the petroleum retailers will need to develop differentiated value propositions, to improve revenues and their bottom lines, by adopting a customer focused approach and building strong brand equity. </p><p align="justify"><br />To drive revenues and margins, the retailers will have to attract new customers or increase share of their existing customer’s wallet. The latter can be achieved by offering non-fuel products and services. Non-fuel products, which offer higher margins compared to petroleum products, enable companies to sustain themselves, especially during times when oil prices are high. However, keeping in mind that petroleum retailing is a retailing of product and service, with differentiation possible petro-retailers will have to take a look into the retail skills and accordingly have to make adjustments in that. Network optimization, proposition/brand management, dealer management, site operations management, partner management, customer relationship management etc. are some of the skills that should be incorporated to succeed in the changed scenario. Immense competition in this sector will make loyalty programs for every segment of consumers as an integral program of the day- to-day functioning of petro-retailing. Moreover, proper understanding of market forces and economics at state/territory level will be the most important factor which will help not only help in smooth functioning of business but also drive customers to the outlet. </p>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com3tag:blogger.com,1999:blog-6789205582892747275.post-33899089315514799572008-08-30T22:29:00.001+05:302008-08-30T22:33:12.183+05:30Retail DestinationsA.T. Kearney’s Global Retail Development Index (GRDI) ranks 30 emerging countries on the urgency for retailers to enter the country. The scores are based on 25 variables across four primary categories: economic and political risk, retail market attractiveness, retail saturation levels and time pressure (difference or addition between gross domestic product and modern retail area growth). Vietnam's leap from fourth in the 2007 GRDI to first place in 2008 was driven by strong GDP growth of 8%, changes to the country's regulatory structure favoring foreign investors, and increasing consumer demand for modern retail concepts. India, Russia and China, the top three countries in last year's GRDI, remain important retail investment destinations, but high real estate costs and growing competition have decreased their attractiveness relative to prior years and forced retailers to look for opportunities in tier II and III cities. According to GRDI 2008 report, the Middle East/North Africa region is clearly the world's hottest region for retail expansion. The strong Euro supporting investment in the region, consumer familiarity with modern retail concepts and petrodollar wealth are the primary factors making the region an attractive retail destination. Among the gulf countries, Saudi Arabia, with a robust 9 percent growth rate and low retail consolidation is among the most attractive global retail destinations. <br /><br />While Eastern and Central Europe as a whole remain attractive for retail investment, the ‘window of opportunity’ for large-scale supermarket and convenience store build-outs will likely close over the next year or two, according to the GRDI. The opportunity for entry into Eastern Europe is for wave-2 retailers — do-it-yourself, consumer electronics and apparel retailers — as multi-level fashion malls and mixed-use centers are cropping up throughout the region. India continues to be one of the most attractive countries for global retailers today. The retail market opportunity is larger than ever at $510 billion and spending patterns and consumer maturity are growing faster than most global retailers had forecast. But challenges have emerged which could potentially slow the pace of growth for global entrants. Foreign players entering India today face stifling regulations, a clouded political atmosphere, soaring real estate costs and a fiercely competitive domestic retailer group. In China, the countryside has turned into the next retail battleground, despite China's drop to number four in this year's GRDI. China remains one of the fastest-growing economies in the world. Although its per capita GDP remains low given China's large population, consumer spending has more than doubled from the mid-1990s and continues to grow rapidly in the large southern and eastern cities.Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com3tag:blogger.com,1999:blog-6789205582892747275.post-38381329667003997792008-08-23T18:09:00.002+05:302008-08-23T18:12:05.428+05:30Stylish RetailingThere is a trend towards offering extended product ranges that are focused onto a particular customer type; this is called lifestyle retailing. It is a real understanding of how far a lifestyle can extend and formulating a product offer that reflects the approach to life and the choices a consumer would make. A lifestyle retailer can be a generalist or specialist. A <em><strong>generalist</strong></em> lifestyle retailer would offer a wide variety of product categories, with shallow but very specific orientation to the products. A <em><strong>specialist</strong></em> lifestyle retailer might offer both depth and variety, but targeted to very specific lifestyle needs. The introduction of lifestyle format is not an easy one to undertake as it involves lot of innovative activities. But the companies generally lose the ability to innovate as they develop and mature. To allow innovation to occur firm must acquire a dual mode of operation one made of the existing business and a very different approach for new embryonic business. Research findings highlight that recipe of success of lifestyle retailing not only lies in product and design but also in managing the customer relationship management and designing organizational structure to manage innovation. In Britain, there is no consensus on what the concept means and further there is no theoretical and empirical research on the concept as it means somewhat different things to different people.<br /><br />Retailing in India in the lifestyle segment as well as the value retail segment is in the nascent stage. The opportunity is really big for any player in the retail sector. Lifestyle has been a trendsetter of sorts in the Indian retail industry. In India we have used international experience and expertise to redefine the retail environment which has reached new heights of customer delight. Today, there are five major lifestyle retailers in India; Lifestyle, Westside, Shoppers' Stop, Globus and Ebony which alone account for a little over 200,000 square feet of retail space. ITC’s Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Pantaloon also sees spurring further growth in lifestyle retailing focus. The most recent example is of Madura Garments Lifestyle Retail Company, a 100% subsidiary of AV Birla Nuvo, is working on setting up 12-14 stores to meet the fashion needs of the urban Indian man.Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com2tag:blogger.com,1999:blog-6789205582892747275.post-81671418937143435492008-08-15T11:31:00.001+05:302008-08-15T11:35:36.119+05:30Midnight RetailingIt was close to midnight and the crowd wasn't showing any signs of letting up. The DJ was still spinning fast paced music and finger food and non-alcoholic energy drinks kept coming. And the hosts weren't complaining that the party was stretching into the wee hours. The "party", which kicked off at 10pm and lasted until 2 am, was hosted by denim marketer Spykar Lifestyle Pvt. Ltd and had already generated three times the revenue that a similar sale by the company during normal day-time hours at the Bandra store in Mumbai. The midnight-sale by Spykar has become one of the many retail innovations that stores are using to get more shoppers into their stores. In Midnight retailing, the retailer invites loyal customers, celebrities and media and much like a "happy hour" in a bar, retailers offer steep discounts during such "off" hours or on certain days when foot traffic is normally slow. This recent practice is result of weak sales in a slowing economy or as sales gimmicks to attract media attention-such.<br /><br />Most midnight openings occur at the mall-based specialty stores and outlet malls that felt overshadowed by all the action and attention lavished on the discount chains and department stores for opening at dawn. The “midnight madness” trend is part of an effort by smaller retailers to steal consumers from their bigger counterparts in an increasingly crowded marketplace comprising traditional bricks-and-clicks stores, retail web sites, eBay and other alternative outlets. By keeping malls open all night, their hope is to lure shoppers away from the competition. There will be giveaways and sales, playing off the same kind of door-buster frenzies offered elsewhere. There also is an expectation that the novelty of shopping in the middle of the night will be an attraction. One goal of Midnight Madness is to put some of the fun back into an experience that, in some cases, has turned dangerous as there has been trampling and shoving at door-buster sales, and some shoppers were injured on their way into Wal-Mart stores last year.<br /> “ Shoppers will come if you give them a fun, festive atmosphere.”Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com7tag:blogger.com,1999:blog-6789205582892747275.post-32111716903515583322008-08-07T15:16:00.004+05:302008-08-07T15:24:44.076+05:30Scented signals from consumers ...Have you ever thought of the effect on your behaviour in a restaurant where lemon and lavender aromas were diffused and compared to a no-aroma control condition?<br />You’ll be surprised to know that odours have an effect on consumer behaviour. Experiments show that lavender—but not lemon aroma—increased the length of stay of customers and the amount of purchasing. The supposition is that lavender produces a relaxing effect is offered to explain the results. We can take this explanation as most probably correct because this is one of those behavioural aspects of humans on external factors which can’t be conclusively explained and justified with some numbers. Similarly various experimental studies have shown that aromas have a positive impact on human behaviour, emotions and cognition. It was also found that human behaviour is effected when diffusing a pleasant perfume and there increase in the performances of difficult cognitive tasks and there is also improved and rapid performance in computation task.<br /><br />Scents appear to be relevant to two forms of consumption: product evaluation (for example scent products) and sale’s environment (for example ambient aroma). The scent that was appropriated with a product increased product evaluations. A pleasant ambient scent improved brand evaluations especially for unfamiliar brands while ambient scent increased recall of unfamiliar brand names. Helping behaviour is also positively affected by ambient aromas. Some researchers observed that people in a region of a mall with pleasant food odours (pastry, coffee shop) were more willing to accept a request for change from a male associate than persons in a zone with neutral odours (clothing shops, etc.). Research has shown that students agreed to spend more time on voluntary work when they were exposed to a vanilla or lavender odour before the request. Also, some other observers showed that people exposed to a pleasant odour during a learning task offered their collaboration more easily to the experimenter asking for help at the end of the task. Odours environment in a sales area seems to have a positive effect on consumers’ behaviour. The ambient aroma had a positive impact on the duration of time spent by consumers at a jewellery counter.<br /><br />Ambient aromas also affect gamblers’ behaviour. During one weekend a slot-machine area in a Las Vegas Casino was odorized. The amount of money gambled in this area was compared to the amount of money gambled in the same area before and after odourization. The results showed that during the experimental weekend, the amount of money gambled was greater by an average of 45.1% compared to the weekend before and the weekend after the diffusion of the aroma. Researchers found no difference between the three weekends when comparing the amount of money gambled in a control slot-machine area which was non-odorized. The study also found that when the concentration was higher, larger amounts of money were gambled. As seen from various research results it is very clear how a consumer is unknowingly influenced by the aroma in his surroundings. Thus, pleasing scent can create a wonderful ambience and add to the customers’ shopping experience, particularly if it is sample of one of the products retailer is selling. In some cases, the best scent may be the absence of any noticeable scent at all, adding to the impression that the store and environment are clean. So make sure that you do notice the fragrance around you while visiting any place and figure out the behavioural changes you go throughout the course.Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com3tag:blogger.com,1999:blog-6789205582892747275.post-20012327804516248482008-08-03T03:19:00.000+05:302008-08-03T03:20:28.458+05:30Click n Buy: E-retailRetail is one of the more visible market sectors on the Web. In retail, merchants sell products and services directly to a buyer. E-retail, also called e-tail, occurs when retailers use the Web to sell their products and services. E-retailers constantly challenge the old ways of conducting business as they bring new products and services to market. New software tools make it easy for consumers to compare and assess the quality, image, and price of products. The result of this might be the shrinking of the already diminishing profits of today's vendors. The crowded field of competitors in B2C e-commerce indicates that achieving long-term success in Web retailing requires e-vendors to adhere to traditional economic and marketing principles and apply traditional marketing strategies A customer (consumer) visits an online business at the Web equivalent of a showroom: the electronic storefront. An electronic storefront, also called an online catalog, is the Web site where an e-retailer displays its products. It contains description, graphics, and sometimes product reviews. After browsing through merchandise, the customer makes a selection and adds it to the shopping cart. The shopping cart is a software component on the Web that allows the customer to collect purchases; it is trolley/basket equivalent of the retail showroom. Items in the cart can be added, deleted, or even saved for a future visit. When ready to complete the sale, the customer proceeds to the checkout. At this time, the customer enters personal and financial data through a secure Internet connection. The transaction and financial data automatically are verified at a banking Web site. If the bank approves the transaction, the customer receives an online confirmation notice of the purchase. Then, the e-retailer processes the order and sends it to the fulfillment center where it is packaged and shipped. The e-retailer notifies the bank of the shipment, and payment is sent via electronic channels to the e-retailer. Inventory systems are updated. Shipping information is posted on the Web, so the customer can track the order. The customer typically receives the order a few days after the. E-retailing presents a new way to shop. The store is open 24 hours a day with a few clicks…….Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com5tag:blogger.com,1999:blog-6789205582892747275.post-30853037916888855302008-07-23T02:14:00.002+05:302008-07-23T02:24:43.304+05:30Wal-mart's smart move towards IndiaWal-Mart the $340 billion retail giant is looking forward at its long time partner P&G to learn the tricks of the Indian market as the company is set to get a foothold in India. Wal-Mart's fabled "efficiencies of scale" and modern distribution methods would be a breath of fresh air in India. So the deal with Wal-Mart is obviously going to lead to an inflow of management and technical know how, which will be extremely beneficial across the Indian economy as and when the practices to be introduced spread. It uses its strength to drive down costs internally and gets hard bargains from suppliers; to live up to its promise of keeping prices low everyday, becoming a formidable inflation-buster. While the joint venture will focus on B2B business, the Bharati group plans to launch small format retail stores shortly.<br /><br />The Wal-Mart first cash and carry format retail store is expected to open by 2009. This will allow large buyers setting quality standards and demanding new products and would also prompt farmers to form co-operatives or work as employees of agribusinesses . It will also provide small retailers and business owners a wide range of quality products at competitive wholesale prices that will help them enhance their businesses and profitability. Right from SKU’s to product design, packaging and distribution, P&G is collaborating with retailers with the insight in point of sales data for supply chain, merchandising and category performance inside the store. However in India, the bazaar is an institution, a way of life. And, in the view of a growing number of people in India, it is endangered by Wal-Mart. There are 12 million people working in retail in India and all their jobs will be at stake with the advent of Wal-Mart in India. It would cause large scale displacement of small retailers and squeezing of domestic manufacturers and farmers. Expansion of the Wal-Mart chains has caused massive closure of small stores and pauperization of poor communities even in the United States. In the context of huge unemployment existing within the country, such employment displacing FDI is the last thing that the Indian economy needs at the moment.Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com3tag:blogger.com,1999:blog-6789205582892747275.post-65614177213841496062008-07-15T12:24:00.002+05:302008-07-15T12:38:27.235+05:30Shop till you drop . . .Modern retail formats have mushroomed in the metros and mini-metros, and over the last few years have also begun to establish a presence in the next rung of cities, exposing shoppers to varied shopping and entertainment options, all under one roof. Consumers are now seeking the convenience of one-stop shopping, speedy and efficient processing, for best utilization of time. Shopping needs are influenced by factors like family situation, disposable income, time pressure, the attitude towards shopping and the personality of the shopper. It is also said that all consumption activities involve the stimulation of thoughts and/or senses. Cognitive consumption is related to rational thinking and behavior to utilitarian values. Sensory consumption is associated with the intangible benefits that pertain to the emotive and experiential aspects of experience.<br /><br />Retailers are aware of the importance of the consumer's store choice process. They realize that consumers can buy the same or similar merchandise in any number of outlets. Thus, they undertake a number of activities to attract and keep consumers coming back to their stores. Many retailers, however, are not as aware of the broader "shopping mode choices" of consumers. Retailers consider the store as a way to differentiate themselves and manufacturers see the point-of-sales as a platform for brand activation. However shopper behaviour turns out to be complex and unpredictable, which makes it a tough challenge to effectively address the shopper in-store. Thus, a unique retail outlet image can be one of a retailer’s most valuable marketing assets and is a strategic component in retail marketing.Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com1tag:blogger.com,1999:blog-6789205582892747275.post-17100161368429456802008-07-08T15:23:00.003+05:302008-07-08T15:33:10.988+05:30Entry Routes of Foreign Players in Indian Market<p>In 1997, it was decided that FDI would not be allowed for mere trading since it will lead to outflow of foreign exchange , drive out the domestic unorganized retailers from business and increase unemployment. Although FDI is not allowed in retailing , many international players are operating in India if they set up domestic manufacturing facilities or source the product locally or enter into the market with franchising arrangements. India has been a hotbed for test marketing by global MNC’s with biggies like Nokia, entering India through that route. Foreign Investment Promotion Board allows foreign companies to test market their products for two years by the end of which they are required to set up their manufacturing facilities. The primary purpose certainly is risk mitigation-especially for new products or new variants before investment. </p><p>Another route through which large international retailers such as Germany’s Metro Cash and Carry and Shoprite Checkers of South Africa has entered the Indian market. Wholesale cash and carry operations are trading outlets where goods are sold at wholesale rates for retailing and business purposes. While there is protest at one end , different state government departments such as Punjab Agro-Industries corporation has signed a memorandum of understanding with the Metro Cash & Carry International for sourcing of food products for its international operations. It will bring in the required efficiencies in the supply chain for distribution of food within the country and also provide access to world markets. They have also made substantial investment in training up Indian farmers, fisherman etc. in the state of art technology. Over 90 per cent of the products sold are sourced locally even as each wholesale centre helps create, on an average, 300 direct jobs and another 150 indirect jobs. Although wholesale cash and carry is meant for purchase but there needs to be greater clarity in this definition and non-transparent policy as bulk trading does not clearly states the minimum quantity requirements. </p><p>Lets discuss more on these entry routes in the comments of the post.</p>Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com2tag:blogger.com,1999:blog-6789205582892747275.post-8047325292546799972008-07-01T00:13:00.008+05:302008-07-01T01:37:47.424+05:30"Once upon a time .." The Tale of Retail ...<strong>Retailing</strong> consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy.<br /><br />This blog is a forum to discuss various issues in retail industry and explore it in depth. We'll post one or two topics of discussion every week and open it for user discussion through comments. Do pass the link of the blog to all your friends across the globe to get an all round view on retail.<br /><br />Happy Participating! :-)Tale of Retailhttp://www.blogger.com/profile/01331742589573125828noreply@blogger.com8