No Essay Example | Topics and Well Written Essays - 750 words

No - Essay Example Another way that the businesses diminish the expense of medical coverage for their workers is by decreasing life partner and ward inclusion costs. Along these lines, the representatives need to dive further into their pockets to cover the relatives. Through this ways, businesses set aside a ton of cash that they would somehow or another have used to cover their workers. The Obama Care if painstakingly broke down takes the medical coverage spread from the business based to government based model. On account of the tax assessment framework on business based protection bundle, less individuals will take up the business based protection spread. All workers must be secured under the Act (Niles 377). This implies even those with a low salary can get to a protection spread. Then again, it implies that the representatives with higher profit need to pay more. In the event that I didn't have a protection spread, the Obama Care would be a decent alternative since I currently get the opportunity of getting to a reasonable and quality wellbeing spread. Worker's organizations have in America have been instrumental in managing reasonable practices in the business part for its individuals. In spite of having progressed significantly, the worker's guilds have had a lot of difficulties. There is a general disposition against unionization by the more youthful age which makes the associations to lose hold. One of significant difficulties that the associations are confronting is the decrease in enrollment levels. This has seen the ascent in low maintenance business, less employer stability, and an ascent in the quantity of the working poor. Another test is that the privilege of laborers to pick up enrollment in worker's guilds for aggregate bartering objects is enduring an onslaught. The explanation behind this is the frail work laws that don't support unionization of representatives. In light of these difficulties the work development contacts the non-white individuals, ladies, the youngsters just as migrant specialists to fortify the development (JIL 4).

Managing to Achieve Results Free Essays

string(130) develop just as spur the laborers in the plants, Ford VN utilizes the motto â€Å" Ford moving with you, quality is work # 1†. List of chapters Introduction2 Details3 1. Structure and culture of Ford Vietnam3 1. 1. We will compose a custom exposition test on Figuring out how to Achieve Results or then again any comparable point just for you Request Now Structure of Ford Vietnam3 1. 2. Culture of Ford Vietnam5 1. 3. Between connections between the various procedures and elements of the organization9 2. Strategic, and targets o Ford and the impact of these on the structure and culture of the organization10 3. Procedure maps, yield assessment, and quality passage analysis12 4. Assets, instruments and frameworks required to help the business process17 5. Quality review framework/practice to oversee and screen quality to guidelines specified22 6. Quality culture installing to guarantee ceaseless observing and improvement of the process25 6. 1. Quality in employees25 6. 2. Quality in process26 7. Suggestion to improve quality and the capacity of Ford Vietnam27 7. 1. Problem27 7. 2. Reasons27 7. 3. Suggestions and evaluation29 Conclusion33 References34 Introduction At the current vehicle industry in Vietnam is gigantic. Its extension becomes firmly because of market request and social turn of events. Portage Vietnam is one of vehicle undertaking which has entered in this market for more than 15 years and picked up a considerable amount of accomplishment. For a long time in Vietnam, regardless of being contended by numerous adversaries, Ford Vietnam despite everything stands firm in the vehicle advertise. A year ago, with the new models, the deal volume of Ford arrived at roughly 8,000 vehicles. Be that as it may, its piece of the overall industry as of late has diminished by hardly any sums. Our gathering 19 got an opportunity to visit Ford industrial facility and watched it to comprehend its way of life, structure and procedure so as to make proposals for how to improve quality and the capacity of Ford association. Subtleties 1. Structure and culture of Ford Vietnam Hierarchical structure and culture assume a significant job as far as making the authoritative achievement. In light of the company’s business and destinations, there are different hierarchical structures and societies which can be applied to associations. 1. 1. Structure of Ford Vietnam Theoretically, authoritative structures can be characterized as tall structure and level structure; centralization and decentralization; practical structure, item structure, showcase structure, geographic structure and grid structure; multifunctional groups and multidivisional structures. As per the range of control, there are two sorts of hierarchical structure: tall association and level association. A level association is one which, according to its size, has few various leveled levels. This suggests a wide range of control. A tall association is one which, according to its size, has an enormous number of level administration pecking order. This infers a limited range of control. As indicated by how much authority is appointed, there are two sorts of hierarchical structure: centralization and decentralization. Centralization is the convergence of expert for settling on most choices at the top degrees of association. Conversely, decentralization is the scattering of power to settle on choices all through all degrees of the association. Moreover, the structure of an association can be arranged by geology, by work, and by item and brand. Also, there are a few sorts of association structure that are increasingly intricate: the network, multifunctional groups and multidivisional structures. The network is a structure where individuals are gathered by work and by item group. A multifunctional group is a gathering of people united from more than one useful region of a business to chip away at an issue or procedure that requires the information, preparing and capacities over the zones to effectively finish the work. A multidivisional structure is an authoritative structure in which each region product offering, market or specialty unit is set in its own independent unit or division and every division has inside it a few utilitarian sub-divisions for creation, showcasing, etc. Portage Vietnam has set up and built up its association dependent on nine fields with nine chiefs including Technical Affair, Finance, Human Resource, Marketing, Sales, After Market Sales and Service, Public Affair, Deputy Manager, Quality director. Under the authority of Technical Affair chief, there are two offices: Manufacturing and Supply Operation. The supervisor of assembling office is liable for four divisions including Body shop, Paint shop, TCF (last get together) and bolster work. There are three divisions in the gracefully activity office: Logistics, buying, and propelling. Truth be told, the name of each field, every office and division is obviously founded on their undertakings. In this manner, the structure of Ford Vietnam has composed by utilitarian structure. Besides, Ford Vietnam is considered as an enormous organization in Vietnam with in excess of 500 workers. Mr. Michael Pease, the General Director of Ford Vietnam attempted to accentuate in the power and obligation of individual supervisors, who authorize the job expected of their position. In this organization, everyone can settle on choices dependent on their degree of power. Thus, Ford Vietnam follows the decentralized structure and the tall structure also. . 2. Culture of Ford Vietnam Organizational culture is characterized as â€Å"the casual arrangement of significant worth, standards, and convictions that control the manner in which individuals and gatherings in an association collaborate with one another and with individuals outside the organization†. There are four sorts of cult ure: power culture, job culture, task culture, and individual culture. Force culture is the way of life where the association is constrained by key, focal figures †frequently the proprietors of authors of the association. Job culture is utilized in old style, reasonable association or organization. In task culture, the executives is viewed as finishing a progression of ventures or taking care of issues, frequently as a feature of a group. Individual culture is where the association will in general serve the enthusiasm of the person inside it. Passage Vietnam was built up in 1995. From that point forward, there were 15 years for Ford Vietnam to develop its way of life which can be spoken to by its motto, picture, apparel, office stylistic layout, rules, approaches, inspiration, authority style, conviction and demeanor, etc. It is astonishing to such an extent that you can see a ton of trademarks in manufactory of Ford Vietnam. For instance, to underline the worth that Ford Vietnam needs to develop just as propel the laborers in the plants, Ford VN utilizes the motto â€Å" Ford moving with you, quality is work # 1†. You read Figuring out how to Achieve Results in class Paper models Additionally, Ford VN understood that sparing is a significant with the advancement of its business. Accordingly, there are various trademarks about sparing in the plant, office, flask, even in toilets, for example, â€Å"the higher sparing vitality, the higher salaries†, â€Å"one hour broiler consuming equivalents to 100 oxen†, â€Å"one hour air compacting equivalents to 100 pumpkins†. Portage VN comprehends that most of its laborers were experienced childhood in ranches. Thusly, utilizing the comfortable things with the laborers, for example, bull, pumpkin is to cause the laborers more to comprehend the motto and afterward m work all the more viably. Expansion to the trademarks, the organization publics the value rundown of the instruments the laborers utilizing to cause them to comprehend the estimation of every apparatus they are utilizing, the deal with those devices, sparing and utilizing viably. [pic] Figure 1: Ford Vietnam Symbol is a component indicating the Ford VN culture. It goes about as shorthand approach to keep individuals adjusted just as the best approach to show status inside a culture. This incorporates garments, office stylistic theme, etc. In term of attire, Ford VN structured regalia for its representatives dependent on the attributes of the work the workers doing. For instance, the staffs working in the workplace wear the blue shirt while the laborers in the Paint shop wear a green-stripe suite which is very advantageous, and reasonable with the condition in Paint shop. In the interim, the regalia of laborers in Body shop and Final get together are not quite the same as the workplace staffs and Paint shop laborers however very like one another. These uniform are not just for recognizing the representatives in various fields of work, yet in addition for demonstrating the soul that Ford VN needs to develop for its representatives. From that, they are pleased to be the representatives of Ford VN and afterward have practices that are suitable for their status and position. In term of office stylistic theme, the manufactory looks very agreeable with the earth. There are a great deal of green grass between hinders with lovely blossoms and trees which are taken cautiously. In addition, to help the standards and approaches about the wellbeing in the manufactory, there are drawings to recognize the ways for strolling and ways for merchandise transporters. It would appear that an in-zooming traffic framework in the manufactory. Notwithstanding strategies about the creation, wellbeing and sparing in the notification board, there are a ton of billboard in the plant. For instance, there are billboard about the territories for smoking and no smoking, zones for utilizing wireless. In addition, there are a great deal of pictures, endorsements, cups partitioned into two gatherings. One gathering is about the Ford Company ever, presenting the leaders of Ford, the T-model, and accomplishments. The other gathering is about the accomplishments of Ford VN. In the workplace, there is no different space for every office. The offices are all in a colossal lobby and isolated by the segments. That is very useful for the workers among offices to speak with one another without any problem. In term of inspiration, the organization has done a great deal of exercises to propel the emplo

Financial Aid Filing Season

Financial Aid Filing Season As the start of the school year is quickly approaching, seniors should be keeping financial aid at the forefront of their thoughts. Financial aid is very important as it’s necessary for many students to be able to afford post-secondary opportunities. In order to be eligible to receive financial aid, the first step is completing the Free Application for Federal Student Aid (FAFSA). You can start filing for your FAFSA as early as October 1st, 2018. I encourage you to complete the application as quickly as possible because funding is available on the first come first serve basis, meaning if you wait too late, there might not be any funding available. Timely completion of your FAFSA is very essential if you plan on exploring any post-secondary opportunities. The FAFSA is the first step in the financial aid process. It is used to apply for federal student financial aid such as grants, loans and work study. In addition, post-secondary schools use information from the FAFSA to award non-federal financial aid. The application is available free of charge therefore, you should not be paying anything to complete this application. In order to begin the process, complete the FAFSA application using the link provided. Make sure that you are adding the schools you’re considering attending to your application by adding their school code. For example, if you are applying to Illinois, you must add our federal school code which is 001775. Next, you should ensure that all of your contact information is entered correctly on your application. In many cases, once a student completes their application, more information is needed from the student and our Office of Student Financial Aid (OSFA) will need to reach out to for further information. If OSFA is requesting additional information from you, they will reach out via paper mail and email. It’s important that you provide this necessary information as quickly as possible in order to receive your award letter. Award letters start becoming available as early as February 15th. If you completed FAFSA and we are waiting for more information from you, you will not receive an award letter however, the funds allocated to you will still be available once you send the information needed. Please frequently check your emails and standard mail throughout your entire senior year as their might be very important matters pending. Seniors, I truly understand that you will be extremely busy this school year. You are expected to complete college applications, scholarship applications, maintain quality grades, engage in involvement and complete your FAFSA. It’s important for you to understand that you are not alone in this process. Most high schools have college counselors available to assist you in the completion of your FAFSA and it’s important that you utilize them as your main resource this year. If your school doesn’t provide assistance to you, there are other resources that are willing to assist you such as, The Illinois Student Assistance Commission. Additionally you may always contact OSFA for any assistance as well. If you have any questions or concerns, feel free to drop them below and I will get back to you! Good Luck! Chris Admissions Counselor I was born and raised on the south side of Chicago and graduated from Kenwood Academy High School. I hold a bachelor’s degree from Illinois in Urban Planning. I work in the Chicago Satellite Office, where I assist and recruit students who are interested in attending Illinois.

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The Ethical Decision Making Process - 2474 Words

Ethical Decision Making Process Ayva Rodriguez Felician College NURS 380 Elizabeth Stallings RN, MA, DMH January 22, 2015 Abstract Nurses often encountered various ethical dilemmas in the practice setting. Both virtue ethics and caring ethics support good ethical decision making for nurses (Park, 2012, p. 149) but these are inadequate to assist in solving an ethical dilemma (Park, 2012, p. 149). For that reason an ethical decision making tool is helpful for the nurses or clinicians to come up with an ethical decision (Kelly, 2012, p. 571) that allows them to gather information, identify any gap of understanding on the issue or the disagreements between the involved parties through a clear communication (Park, 2012, p. 140). Several authors presented an ethical decision making processes (Park, 2012, p. 141), here presented the two processes that can be applied in resolving an ethical dilemma. One example of ethical decision making process is the DECIDE model by Thompson, Melia Boyd (Allen, Chapman, Francis, O’Connor, 2008, p. 5) and the Integrated ethical decision-making model which was derived from the combination of the different ethical decision-making models strengths (Park, 2012, p. 140). These two ethical decision-making model steps are identical to each but differ on the detailed instruction on how the steps are to be done or used in actual case. By comparing the two models the integrated ethical decision-making model have a detailed instruction. TheShow MoreRelatedThe Ethical Decision Making Process1253 Words   |  6 PagesThe ethical decision making process is based on moral rules and unchanging principles that are derived from reason and can be applied universally. These universal rules and principles must be considered separate from the consequences or the facts of a particular situation. (McWay, 2014). 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Brand Elements Free Essays

string(95) " particular r making increased and innovative use of visual merchandising for promoting sales\." STUDY ON THE IMPORTANCE,ROLE,CONSUMER IMPACT BUDGET OF VISUAL MERCHANDISING Dissertation Submitted to the Padmashree Dr. D. Y. We will write a custom essay sample on Brand Elements or any similar topic only for you Order Now Patil University In partial fulfillment of the requirements for the award of the Degree of MASTERS IN BUSINESS ADMINISTRATION Submitted by: DIVYA. P. KUMAR (Roll No. MBA-RET-0801010) Research Guide: PROF. KRISHNA SHETTY Department of Business Management Padmashree Dr. D. Y. Patil University CBD Belapur, Navi Mumbai. March 2010 1 INDEX TOPICPAGE NO 1Declaration4 2Certificate5 3Acknowledgement6 Objective of the project7 5Definition of the problem8 6Literature Review10 7Executive Summary15 INTRODUCTION TO VISUAL MERCHANDISING 8Introduction to Retailing17 9Introduction to Visual Merchandising63 10Role Of Visual Merchandising87 11Effect of the colour, line etc on Visual Merchandising152 12Impact Of Visual Merchandising on Consumer Behaviour167 13Budget in Visual Merchandising175 14Questionnaire185 15Data Analysis187 16Research Methodology191 17Recommendations192 18Limitations of study193 2 19Conclusion194 20Bibliography198 3 DECLARATION: I Divya P Kumar hereby declare that the dissertation, VISUAL MERCHANDISING – Importance, Role, Impact on Consumer Budget submitted for the degree of Masters of Business Administration at Padmashree Dr. D. Y. Patil University’s Department Of Business management is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles Place: Navi MumbaiSignature of the student: Date: 4 CERTIFICATE This is a certify that the dissertation titled Visual Merchandising is the bonafide research work carried out by Ms. Divya P Kumar of M. B. A at Padmashree Dr. D. Y. Patil University’s, Department Of Business Management during the year 2008-2010, in partial fulfilment of the requirements for the award of degree of Master In Business Administration and that the dissertation has not formed the basis for the award previously of any degree, diploma, associate ship, Fellowship or any other similar title. Place: Navi MumbaiSignature of the Guide Date: 5 ACKNOWLEDGEMENT I express my sincere gratitude to Prof. Krishna Shetty for providing me valuable guidance for the project on ? Visual Merchandising?. I also express my deep sense of gratitude to all the staff members for providing valuable guidance, information and facilities required for my project work. Last but not the least I am thankful to DR. D. Y. PATIL UNIVERSITY’S DEPARTMENT OF BUSINESS MANAGEMENT for giving me this wonderful opportunity of final project. Dr. R. Gopal Director, Department of Business Mgt, Padmashree Dr. D. Y. Patil University. 6 OBJECTIVES OF THE PROJECT: 1. To know the fundamentals and factors effecting visual merchandising. 2. To understand the problems of visual merchandising in retail industry. 3. To know the budgeting constraints of visual merchandising 4. To suggest solutions to problems of visual merchandising. 7 DEFINITION OF PROBLEM: Visual Merchandising (VM) is the art of presentation, which puts the merchandise in focus and in perspective too. It educates the customers, creates desire and finally augments the selling process. This is a nascent area of the Indian retail industry. Visual Merchandising achieves the following: †¢ Educates the customers about the products and services offered creatively and effectively. †¢ Enables a successful selling process, from browsing to buying. †¢ Establishes a creative medium to present merchandise in a lifelike 3-D environment, thus creating a strong impact and recall value. †¢ Sets the context of the merchandise. †¢ Establishes the linkage between fashions, product design and marketing by keeping the focus on the product. Draws the attention of the customers and help them match their needs with the visually merchandised product. 8 Every company in India keeps a specific amount apart for visual merchandising as it has a great impact on its sales. The budget set up by most of the companies are very low thereby proving to set up a challenge for the visual merchandiser to utilize all the concepts and tools of visual merchandising to profit the co mpany. The visual merchandiser has to come up with plans to make the maximum utilization of the money provided. It is his/her creativity that comes into play at this time. Literature Review 1. ) Retail Management(Text Cases) – Second Edition Author – Swapna Pradhan This book seeks to expand the coverage in important topical areas of merchandise management, customer service retail marketing communicant and financial planning among others. The focus of this book has been on explaining the concepts n practices in retail mngt, particularly in the Indian/Asian setting. The author has taken a practical approach to make the treatment sound and interesting. Consequently the book is dotted with ? retail snapshots? which are boxed exhibits that illustrate a particular retail activity or situation-and 8 case studies including those on start bucks, shoppers stop, gili, big bazaar and titan. 2. )Retail Management – An Introduction Edited by V. V Gopal This book is based on relevant authoritative and thought provoking articles written by experts and published in leading professional magazines and research journals. The articles are organized in a sequential and logical way that makes reading cont and helps the reader acquire a holistic view of the subject. This helps in strengthening the understanding of the subject better and also enables the reader stretch their thoughts beyond the content of the book. The series is designed to meet the requirements of executive, research scholars, academicians and students of professional programs. 10 3. ) Visual Merchandising Advertisement Express—Magazine, Dec 2008 IFAI University Press In this issue v have articles listed fewer than 5 sections and a case study . The cover story of the issue is visual merchandising. Marketers adopt various promotional strategies for the purpose of increasing sales volume. Visual merchandising is to organize the retail store such that the visual impact thus created is capable of attracting customers and making their shopping experience a real pleasure. The article discusses some aspects of visual merchandising in the current competitive scenario. The retail section has 1 article, ? consumer relation mngt in retail sector.? The descriptive article investigates the relationship mngt issues and the policies formulated for the same in the retail industry. 4. ) Marketing Master mind -Magazine Feb 2010 Visual Merchandising – A silent salesman of retailers. Modern retailing formats in particular r making increased and innovative use of visual merchandising for promoting sales. You read "Brand Elements" in category "Papers" With the growing presence of organized retailing in India, the use of visual merchandising concepts and tools is on the upswing. The cover story of the issue outlines the importance of visual merchandising and its role in today‘s scenario in the Indian retail industry. A special feature of this issue is the conclusions of an interview section . We have an interview with Obopay, A company that provides a solution for effective payments through mobile phones, A novel service which is now on offer in India too. 11 This issue also carries articles on other interesting topics such as consumer behaviour, tourism marketing and customer relationship mngt. 5. ) Retail Management Dunne Lusch-India Editioon This edition of retail mngt gives u gr8 insight into all aspects of retailing in a well thought out methodical approach that is sensitive to the constant changes within the industry. Professors Dunne Lusch have continued the highest level of research to stay current with the industry and this enables the reader to engage in a well rounded dialogue about the retail industry. This book covers all major disciplines for retailing including human resources, operations , marketing ,multichannel retailing, finance other areas as well, which will help u gain the best possible understanding about the retail industry. 6. ) Retailing Mngt 6th Edition 2007 Michael Levy Barton A Weitz Known for its strategic look at retailing and current coverage , this 6th edition cont,. to be orgaised around a model of strategic decision making. One of the major advantages of Levy/ Weits approach is the text readability, Organisation ,and its emphasis on how students can come to grips with real retailing issues and be able to solve problems . The text logical organization around a decision making process allows readers to learn about the process of strategic decision first b4 moving onto decision implementation. The implementation decisions are broken down into merchandise mngt decisions and store mngt decisions just as they would be in a real retailing sector. 12 The text provides a balanced treatment of strategic, ? how to ? and conceptual material ,in a highly readable and interesting format. The 6th edition cont. its cutting edge coverage on the latest topics and developments in retailing including globalization ,customer relationship mngt program , multichannel retailing,scm and the use of internet to improve operating efficiencies and customer service. 7. Fashion Retailing Author – Priyanka Ramgopal Well written, great photography illustration. The text is approached logically with clear explanation of practical, real information that can be applied immediately. A must have for anyone entering the fashion retailing field or for retailers needing to up their game or train staff. Gave me a good understanding of how the fashion merchandising fiel is structured, who does what, how to merchandise a retail availability correctly and guidelines and approaches for creating effective displays. 8. ) India retail report 2009 By Image Group A guest introduction for retail students, this book offer a user-friendly references guide to all aspects of fashion, merchandising and covers both images, dressing and in-store areas. Using examples from a range of store from fashion emporia to supermarkets, the book offers practical advice on the subject, supported by hints and tips from established fashion merchandiser. It reveals the secrets of their tool kit, and information on the use of mannequins, the latest technology, how to construct and source props and explains the psychology behind shopping and buyer. 13 9. VMSD: Visual Merchandising Magazine: If you are looking for the primary magazine used by visual communicators, store display artists, and retail desigers, then VMSD is the answer. Since 1922,VMSD has been the prominent publication that reports on visual merchandising news and events, the latest in retail display, visual design, merchandising strategies, and new products. 10. ) Visual Merchandising Auth or – Tony Morgan A guest introduction for retail students, this book offer a user-friendly references guide to all aspects of visual merchandising and covers both window dressing and in-store areas. Using examples from a range of store from fashion emporia to supermarkets, the book offers practical advice on the subject, supported by hints and tips from established visual merchandiser. It reveals the secrets of their tool kit, and information on the use of mannequins, the latest technology, how to construct and source props and explains the psychology behind shopping and buyer 14 Executive Summary Indian Retail Industry is ranked among the ten largest retail markets in the world. The attitudinal shift of the Indian consumer in terms of â€Å"Choice Preference†, â€Å"Value for Money† and the emergence of organized retail formats have transformed the face of Retailing in India. The Indian retail industry is currently estimated to be a US$ 200 billion industry and organized Retailing comprises of 3 per cent (or) US$6. 4 Billion of the retail industry. With a growth over 20 percent per annum over the last 5 years, organized retailing is projected to reach US$ 32 Billion by 2014. The Indian retail industry though predominantly fragmented through the owner -run † Mom and Pop outlets† has been witnessing the emergence of a few medium sized Indian Retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle International. In the last few years, Indians have gone through a dramatic transformation in lifestyle by moving from traditional spending on food, groceries and clothing to lifestyle categories that deliver better quality and taste. Modern retailing satisfies rising demand for such goods and services with many players entering the bandwagon in an attempt to tap greater opportunities. According to the report of American Management Consulting Firm A. T. Kearney’s 2006 Global Retail Development Index (GRDI), India is on the first position , continuing for two years (2005 and 2006), among 30 countries as the 15 world’s most attractive market for mass merchant and food retailers seeking overseas growth. On the other hand, China is losing its attractiveness and making the way to India GRDI helps retailers to prioritize their global development strategies by ranking emerging countries based on a set of 25 variables including economic and political risk, retail market alternatives, retail saturation level, and the difference between gross domestic product growth and retail growth. The study quotes : â€Å"The Indian retail market is gradually but surely opening up, while China’s market becomes increasingly saturated. visually merchandised product. Visual Merchandising is the art of displaying merchandise in a manner that is appealing to the eyes of the customer. It sets the context of the merchandise in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. A creative and talented retailer can use this upcoming art to breathe in new life into his store products. Passion for design a nd creativity are essential to be a good visual merchandiser A perfect design process and the ability to create ideas that are different are required. Awareness of happenings in fashion world is needed so as to keep up-to-date with the dynamics of the market constantly. Visual merchandising includes window displays, signs, interior displays, cosmetic promotions and any other special sales promotions taking place. 16 Introduction to Retailing 17 The Global Retail Industry Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services. The impact can be best seen in countries like U. S. A. , U. K. , Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector. Retail is the second-largest industry in the United States both in number of establishments and number of employees. It is also one of the largest worldwide. The retail industry employs more than 22 million Americans and generates more than $3 trillion in retail sale annually. Retailing is a U. S. $7 trillion sector. Wal-Mart is the world‘s largest retailer. Already the world‘s largest employer with over 1million associates, Wal-Mart displaced oil giant Exxon Mobil as the world‘s largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size, market clout, and efficiency to create market dominance. 18 Wal-Mart heads Fortune magazine list of top 500 companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business. Top Retailers Worldwide 1 Wal-Mart Stores, Inc. U. S. A. 2 Carrefour Group France 3 The Kroger Co. U. S. A. 4 The Home Depot, Inc. U. S. A. 5 Metro Germany Retail Scenario in India: Touching Meteoric Scales As the corporates – the Piramals, the Tatas, the Rahejas, ITC, S. Kumar‘s, RPG Enterprises, and mega retailers- Crosswords, Shopper‘s Stop, and Pantaloons race to revolutionize the retailing sector, retail as an industry in India is coming alive. Retail sales in India amounted to about Rs. 400 billion in 2002, expanded at an average annual rate of 7% during 1999-2002. With the upturn in economic growth during 2003, retail sales are also expected to expand at a higher pace of nearly 10%. Across the country, retail sales in real terms are predicted to rise more rapidly than consumer expenditure during 2003-08. 19 The forecast growth in real retail sales during 2003- 2008 is 8. 3% per year, compared with 7. 1% for consumer expenditure. Modernization of the Indian r etail sector will be reflected in rapid growth in sales of supermarkets, departmental stores and hyper marts. Sales from these large-format stores are to expand at growth rates ranging from 24% to 49% per year during 2003-2008, according to a latest report by Euro monitor International, a leading provider of global consumer-market intelligence. A. T. Kearney Inc. places India 6th on a global retail development index. The country has the highest per capita outlets in the world – 5. 5 outlets per 1000 population. Around 7% of the population in India is engaged in retailing, as compared to 20% in the USA. In a developing country like India, a large chunk of consumer expenditure is on basic necessities, especially food-related items. Hence, it is not surprising that food, beverages and tobacco accounted for as much as 71% of retail sales in 2002. The share of food related items had, however, declined over the review period, down from 73% in 1999. This is not unexpected, because with income growth, Indians, like consumers elsewhere, have started spending more on non-food items compared with food products. 20 Sales through supermarkets and department stores are small compared with overall retail sales. Nevertheless, their sales have grown much more rapidly, at almost a triple rate (about 30% per year during the review period). This high acceleration in sales through modern retail formats is expected to continue during the next few years, with the rapid growth in numbers of such outlets due to consumer demand and business potential. The factors responsible for the development of the retail sector in India can be broadly summarized as follows: †¢ Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Looking at income classification, the National Council of Applied Economic Research (NCAER) classified approximately 50% of the Indian population as low income in 1994-95; this is expected to decline to 17. 8% by 2006-07. †¢ Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogg‘s, Unilever, Nestle, etc. 21 To make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. †¢ Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains Reach of satellite T. V. channels is helping in creating awareness about global products for local markets. About 47% of India‘s population is under the age of 20; and this will increase to 55% by 2015. This young population, which is technolog y-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country. As India continues to get strongly integrated with the world economy riding the waves of globalization, the retail sector is bound to take big leaps in the years to come. The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organised sector represents only 2% share of this market. 22 Most of the organised retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold through the super markets and departmental stores. A similar phenomenon has swept through all other Asian countries. Organised retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the growth in development of the retail-specific properties and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed and will be available for occupation over the next 36- 48 months. Fitch expects organized retail to capture 15%-20% market share by 2010. A McKinsey report on India says organised retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (14%), and Poland (12%). 23 PRESENT INDIAN SCENARIO * Unorganized market: Rs. 583,000 crores * Organized market: Rs. 5, 000 crores * 5X growth in organized retailing between 2000-2005 * Over 4,000 new modern Outlets in the last 3 years * Over 5,000,000 sq. ft. of mall space under development * The top 3 modern retailers control over 750,000 sq. ft. of retail space * Over 400,000 shoppers walk through their doors every week * Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 5,000 crores (US$ 7 Billion) or more by 2005-06 TRADITIONAL RETAIL SCENE IN INDIA India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom Pop having Shop in the front house at the back. More than 99% retailers function in less than 500Sq. Ft of area. All the merchandise was purchased as per the test vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading home are not maintained separately. Profits were accumulated in slow moving non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. 24 The Manufactures were to distribute goods through C F agents to Distributors Wholesalers. Retailers happen to source the merchandise from Wholesalers reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors /or Wholesalers. Virtually there was only one format of retailing that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based truly very low range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented next turn may be on festivals, Marriages, Birthdays some specific occasions. 25 Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals Formals leisure wear sports wear different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks. However electronic electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge. Different Forms of Retailing : Emergence of new formats of retailing in India Popular Formats †¢ Hyper marts 26 †¢ Supermarkets †¢ Departmental Stores †¢ Speciality Stores 27 †¢ Discount/shopping list grocer †¢ Traditional retailers trying to reinvent by introducing self- service formats as well as value- added services such as credit, free home delivery etc. RetailerOriginal formats RPG Retail Supermarket (Food world) Piramal’sDepartment Store (Pyramid Megastore) Pantaloon Small format outlets (Shoppe) RetailDepartment Store (Pantaloon) K RahejaDepartment Store (shopper’s Groupstop) Specialty Store (Crossword) Tata/ Trent Department Store (Westside) Landmark Department Store (Lifestyle) Group Later Formats Hypermarket (Spencer’s)Specialty Store (Health and Glow) Discount Store (TruMart) Supermarket (Food Bazaar) Hypermarket (Big Bazaar) Mall (Central) Supermarket (TBA) Hypermarket (TBA) Hypermarket (Star India Bazaar) Hypermarket (TBA) Others Discount Store (Subhiksha, Margin Free, Apna Bazaar), Supermarket Nilgiri’s), Specialty Electronics 28 Plans of Large Retailers * Reliance Retail: investing Rs. 30,000 crore ($6. 67 billion) in setting up multiple retail formats with expected sales of Rs. 90,000 crore plus ($20 billion) by 2009-10. * Pantaloon Retail: Will occupy 10 mn sq. ft retail space and achieve Rs. 9,000 crore-plus ($2 bn) sales by 2008. * RPG: Planning IPO w ill have 450-plus Music World, 50-plus Spencer’s Hyper covering 4 mn sq. ft by 2010. * LIFESTYLE: Investing Rs. 400 crore-plus ($90 mn) in next five years on Max Hypermarkets value retail stores, home and lifestyle centres. Rahejas: Operates Shoppers’ Stop, Crossword, Inorbit Mall, and ‘Home Stop’ formats. Will operate 55 â€Å"Hyper city† hypermarkets with US$100 million sales across India by 2015. * Pyramids Retail: Aiming to occupy 1. 75 million sq. ft retail spaces through 150 stores in next five years. * TATA (Trent Ltd. ): Trent to open 27 more stores across its retail formats adding 1 mn sq. ft of space in the next 12 DLF malls. Titan industries to add 50-plus Titan and Tanishq stores in 2006. 29 Small is big for Indian retail: It’s raining malls in small-town India. Whether it’s Kanpur, Ahmadabad, Indore, Agra, Baroda or Surat, the mall and multiplex culture has caught on in the country’s smaller cities, powered by the burgeoning purchasing power of India’s middle-class. From a handful of malls in the mid ’90s, India today has nearly 200 malls spread across large and small cities. And 700 new malls are coming up all over India40% of them concentrated in the smaller cities. Small-town India is the next big thing in the retail business. Consider these numbers: in 2005, the contribution of smaller cities to total organized retailing sales was 15%. By the end of this year, that proportion is expected to grow to 25%. Organized retailing in small-town India is growing at a staggering 50-60% a year compared to 35%-40% in the large cities. The striking point is that it is the big names in the organized retail business that are eyeing these new opportunities. The Kishore Biyani-owned Future Group, India’s largest retailer, plans to invest Rs 3,600 crore in 100 stores in 30 cities, increasing its retail space from 3. 5 million square feet to 30 million sq feet. The RPG group plans to open malls in all cities with a population of over 8 lakh. Similarly, Wills Lifestyle, the garments and accessories retailing division of ITC Ltd, plans to increase its footprint by doubling the number of stores from 50 to around 100 in the next two to three years, mostly in smaller cities. 30 Even Sunil Mittal’s Bharti group has announced plans to get into food and farm products retailing. All these plans, however, are dwarfed by Mukesh Ambani’s ambitions to do a Wal-Mart in India by investing $5. 60 billion (Rs 25,000 crore) and covering 1,500 cities and towns. The small-town retail boom could be considered a show-case of India’s freemarket prosperity. It is being powered by healthy economic growth that is making more Indians more prosperous. Organized retailers have understood this and are hoping to ride the wave, exploit the first-mover advantage and establish strong brand loyalties in these relatively under-served markets. Indeed, this is probably the most compelling example of the trickle-down impact of liberalization in India. Looking ahead, retail analysts suggest that the sustained success of the IT and industries in small towns is expected to create more jobs and enhance spending power. Typically, small cities offer a 15% to 30% cost advantage over larger cities, not just in terms of employee costs but real estate costs as well, not to speak of the gains that accrue from reduced staff attrition rates. This gap is expected to widen over the next few years, creating a pull for smaller towns that will, in turn, power the small-town retail revolution. At present, real estate costs present a major incentive for India’s organized retailers. Average rental values for ground-floor space are Rs 50-60 per square foot a month, against Rs 100-120 per sq foot a month in the bigger cities. 1 However, a strong demand for retail space has more than doubled rentals in cities like Jaipur, Chandigarh, Surat and Lucknow. While in the metros, retailers are filling gaps by increasing more stores, in small towns, these malls are way beyond the expectations of the consumers. These cities are untapped markets and retailers find it important to establish their brands there. Smaller ci ties are seeing plenty of action. For instance, Ludhiana can already boast worldwide restaurant chains like KFC, McDonald’s, Pizza Hut, Domino’s Pizza, Ruby Tuesday and Subway. A new world-class, 25-acre commercial centre and some seven new shopping malls-cum-entertainment centres are under construction. The Indian retail market is estimated at $350 billion. But organized retail is estimated at only $8 billion. However, the opportunity is huge—by 2010, organized retail is expected to grow to $22 billion. With the growth of organized retailing estimated at 40% (CAGR) over the next few years, Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. It is names like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon. The Indian retail sector can be broadly classified into: a) FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector. 32 Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector. In comparison, super markets account for a small proportion of food sales in India. However the growth rate of super market sales has being significant in recent years because greater numbers of higher income. Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. b) HEALTH BEAUTY PRODUCTS With growth in income levels, Indians have started spending more on health and beauty Products Here also small, single- outlet retailers dominate the market. However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market , their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products . 33 c) CLOTHING FOOTWEAR Numerous clothing and footwear shops in shopping centres and markets operate all over India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time. d) HOME FURNITURE HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country. e) DURABLE GOODS 34 The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. f) LEISURE PERSONAL GOODS Increasing household incomes due to better economic opportunities have ncouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc. ) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. 35 INDIAN RETAIL IS MOVING INTO SECOND GEAR 1) FIRST GEAR: (Create a wareness) * New retailers driving awareness * High degree of fragmentation * Real estate groups starting retail chains * Consumer expecting ‘value for money’ as core value 2) SECOND GEAR: (Meet customer expectations) Consumer-driven * Emergence of pure retailers * Retailers getting multi-location and multi-format * Global retailers evincing interest in India 3) THIRD GEAR: (Back end management) * Category management * Vendor partnership * Stock turns * Channel synchronization * Consumer acquisition * Customer relation’s management 4) FOURTH GEAR: (Consolidation) * Aggressive rollout 36 * Organized retail acquitting significant share * Beginning of cross-border movement * Mergers and acquisitions For a start, these retailers need to invest much more in capturing more specific market. Intelligence as well as almost real-time customer purchase behaviour information. The retailers also need to make substantial investment in understanding/acquiring some advanced expertise in developing more accurate and scientific demand forecasting models. Re-engineering of product sourcing philosophies-aligned more towards collaborative planning and replenishment should then be next on their agenda. The message, therefore for the existing small and medium independent retailers is to closely examine what changes are taking place in their immediate vicinity, and analyze. Whether their current market offers a potential redevelopment of the area into a more modern multi-option destination. If it does, and most commercial areas in India do have this potential, it would be very useful to form a consortium of other such small retailers in that vicinity and take a pro-active approach to pool in resources and improve the overall infrastructure. 37 The next effort should be to encourage retailers to make some investments in improving the interiors of their respective establishments to make shopping an enjoyable experience for the customer. As the retail marketplace changes shape and competition increases, the potential for improving retail productivity and cutting costs is likely to decrease. Therefore, it will become important for retailers to secure a distinctive position in the marketplace based on value, relationships or experience. Finally, it is important to note that these strategies are not strictly independent of each other; value is function of not just price, quality and service but can also be enhanced by Personalization and offering a memorable experience. In fact, building relationships with customers can by itself increase the quality of overall customer experience and thus the perceived value. But most importantly for winning in this intensely competitive marketplace, it is critical to understand the target customer’s definition of value and make an offer, which not only delights the customers but also is also difficult for competitors to replicate. Challenges of Retailing in India Retailing as an industry in India has still a long way to go. To become a truly flourishing industry, retailing needs to cross the following hurdles: Automatic approval is not allowed for foreign investment in retail. †¢ Regulations restricting real estate purchases, and cumbersome local laws. †¢ Taxation, which favours small retail businesses. †¢ Absence of developed supply chain and integrated IT management. 38 †¢ Lack of trained work force. †¢ Low skill level for retailing management. †¢ Intrinsic complexity of reta iling – rapid price changes, constant threat of product obsolescence and low margins. The retailers in India have to learn both the art and science of retailing by closely following how retailers in other parts of the world are organizing, anaging, and coping up with new challenges in an ever-changing marketplace. Indian retailers must use innovative retail formats to enhance shopping experience, and try to understand the regional variations in consumer attitudes to retailing. Retail marketing efforts have to improve in the country – advertising, promotions, and campaigns to attract customers; building loyalty by identifying regular shoppers and offering benefits to them; efficiently managing high-value customers and monitoring customer needs constantly, are some of the aspects which Indian retailers need to focus upon on a more pro-active basis. Despite the presence of the basic ingredients required for growth of the retail industry in India, it still faces substantial hurdles that will retard and inhibit its growth in the future. One of the key impediments is the lack of FDI status. This has largely limited capital investments in supply chain infrastructure, which is a key for development and growth of food retailing and has also constrained access to world-class retail practices. 39 Multiplicity and complexity of taxes, lack of proper infrastructure and relatively high cost of real estate are the other impediments to the growth of retailing. While the industry and the government are trying to remove many of these hurdles, some of the roadblocks will remain and will continue to affect the smooth growth of this industry. Fitch believes that while the market share of organised retail will grow and become significant in the next decade, this growth would, however, not be at the same rapid pace as in other emerging markets. Organised retailing in India is gaining wider acceptance. The development of the organised retail sector, during the last decade, has begun to change the face of retailing, especially, in the major metros of the country. Experiences in the developed and developing countries prove that performance of organised retail is strongly linked to the performance of the economy as a whole. This is mainly on account of the reach and penetration of this business and its scientific approach in dealing with customers and their needs. In spite of the positive prospects of this industry, Indian retailing faces some major hurdles (see Table 1), which have stymied its growth. Early signs of organized retail were visible even in the 1970s when Nilgiris food), Viveks (consumer durables) and Nallis (sarees) started their operations. 40 However, as a result of the roadblocks (mentioned in Table 1), the industry remained in a rudimentary stage. While these retailers gave the necessary ambience to customers, little effort was made to introduce world-class customer care practices and improve operating efficiencies. Moreover, most of these modern developments were restricted to south India, which is still regarded as a ? Mecc a of Indian Retail‘ KEY CHALLENGES: 1) LOCATION: â€Å"Right Place, Right choice† Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: * Investigate alternative trading areas. * Determine the type of desirable store location * Evaluate alternative specific store sites 2) MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. 41 Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store. 3) PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm’s goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today’s customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change. 4) TARGET AUDIENCE: â€Å"Consumer the prime mover† â€Å"Consumer Pull†, however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom. 5) SCALE OF OPERATIONS: Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India. 42 FactorsDescriptionImplications Barriers to FDIFDI not permitted in pureAbsence of global retailingplayers Franchisee arrangementLimited exposure to best allowedpractices Lack of IndustryGovernment does notRestricted availability of Statusrecognize the industryfinance Restricts growth and scaling up StructuralLack of urbanizationLack of awareness of ImpedimentsPoor transportation nfrastructure Consumer habit of buying fresh foods Administered pricing Indian consumers Restricted retail growth Growth of small, one- store formats, with unmatchable cost structure Wastage of almost 20%- 25% of farm produce High Cost of RealPro-tenant rent laws EstateNon-availability of government land, zoning restrictions Lack of clear ownership titles, high stamp duty (10%) Supply Cha inSeveral segments like food Bottlenecksand apparel reserved for Difficult to find good real estate in terms of location and size High land cost owing to constrained supply Disorganized nature of transactions Limited product range Makes scaling up 43 SSIs Distribution, logistics constraints – restrictions of purchase and movement of food grains, absence of cold chain infrastructure Long intermediation chain difficult High cost and complexity of sourcing planning Lack of value addition and increase in costs by almost 15% Complex TaxationDifferential sales tax ratesAdded cost and Systemacross statescomplexity of Multi-point octroidistribution Sales tax avoidance byCost advantage for smaller storessmaller stores through ax evasion Multiple Legislations Stringent labour law governing hours of work, minimum wage payments Multiple licenses/clearances required CustomerLocal consumption habits PreferencesNeed for variety Cultural issues Limits flexibility in operations Irritant value in establishing chain operations; adds to overall costs Leads to product proliferation Need to stock larger number of SKUs at store level Increases complexity in sourcing planning Increases the cost of 44 st ore management Availability of Talent Highly educated class does not consider retailing a rofession of choice Lack of proper training ManufacturersNo increase in margins Backlash Lack of trained personnel Higher trial and error in managing retail operations Increase in personnel costs Manufacturers refuse to dis-intermediate and pass on intermediary margins to retailers ORGANISED RETAILING IN INDIA: Organized retailing is spreading and making its presence felt in different parts of the country. The trend in grocery retailing, however, has been slightly different with a growth concentration in the South. However, the Mecca of retailing is undoubtedly Chennai. What was considered a `traditional’, conservative’ and `cost-conscious’ market, proved to be the home ground for most of the successful retail names – Food World, Music World, Health and Glow, Titan, Big Bazaar and Tanishq -to name a few. 45 The choice of Chennai as the `retail capital’ has surprised many, but a variety of factors acted in its favour. Chennai, in spite of being a rapidly growing metropolis offers reasonable real estate prices, one of the most critical elements for the industry. Chennai has been witnessing a high industrial growth and ncreasing presence of the MNCs, both in the IT sector as well as outside it. The industrial boom has led to the emergence of new residential areas with aggregation of professionals as well as a rapid increase in the number of `double-income’ households and growth of the nouveau riche/upper middle class with increased purchasing power. These have been combined with the increasing need for touch an d feel shopping (especially for the large migrant population). All the factors have acted favourably in nurturing the industry. Consumer- the prime mover: A variety of factors seem to influence the growth in the retailing industry. Consumer Pull’, however, seems to be the most important driving factor behind the sustenance of the industry. In this context, A. F. Ferguson Co. had carried out a brief survey among consumers across income segments to understand their spending pattern. An analysis of the `monthly purchase basket of the consumers surveyed indicated that the average monthly household spends on food and grocery related items varied across income segments. 46 For instance, in the case of upper income households, the average spend was around Rs 4,200 per month. As against this, the average spend in the case of a middle income household was around Rs. 2,850 and lower income households Rs. 1,250 per month. (This is computed from a sample of 100 customers having an average family size of four. ) Based on the distribution of the more than 15 lakh households in Chennai across income segments and the average spend, a conservative estimate of the grocery retailing potential at Chennai will be around Rs. 300 crores. Besides increasing purchasing power, a variety of other factors also seem to fuel the retailing boom. With increase in double-income households and working women, there is an increasing pressure on time with very little time being available for leisure. In this scenario, consumers are seeking the convenience of one-stop shopping, whereby they could have better utility of time. They are also seeking speed and efficiency in processing, as a result. 4 Being more aware, consumers are on the look-out for more information, better quality and hygiene as well as increased customer service. These changes in consumer behaviour also augur well for the retailing industry. However, in India there are no uniform trends with respect to consumer buying behaviour. There are visible differences in the shopping pattern of consumers across income segments as shown in the table. Organized retailing has definitely made headway in the upper class. However, even in this segment, items such as milk, fruits, vegetables and a significant portion of `through-the-month’ purchases seem to be done at traditional outlets. The middle income class prefers shopping for processed food and personal care in supermarkets and fall back on traditional outlets for bulk shopping. Organized retail outlets seem to be associated with branded items/special purchases. Organized retailing does not seem to have made an impact on the lower class, except for `curiosity’ shopping. The biggest question before organized retailers therefore, is whether this really means a huge untapped potential for the organized retailers and whether the conversion in mindset going to be easy. Emerging trends: 48 The single most important evolution that took place along with the retailing revolution was the rise and fall of the dotcom companies. A sudden concept of `non-store’ shopping emerged, which threatened to take away the potential of the store. More importantly, the very nature of the customer segment being addressed was almost the same. The computer-savvy individual was also a sub-segment of the `store’ frequenting traffic. Internationally, the concept of net shopping is yet to be proven. And the poor financial performance of most of the companies offering virtual shopping has resulted in store-based retailing regaining the upper hand. Other forms of non-store shopping including various formats such as catalogue/mail order shopping, direct elling, and so on are growing rapidly However, the size of the direct market industry is too limited to deter the retailers. For all the convenes. Once that it offers, electronic retailing does not suit products where `look and see’ attributes are of importance, as in apparel, or where the value is very high, such as jewellery, or where the performance has to b e tested, as of consumer durables. 49 The most critical issue in electronic retailing, especially in a country such as ours, relates to payments and the various security issues involved. Retail management skills: It is a fact that the retailing industry is in its starting phase in our country. The benefits of organized retailing will only be felt once an equitable scale is achieved. This to a large extent depends on the store size, the walkthroughs, and bills per customer per year, average bill size and the revenue earned per sq. ft. But besides resources and bottom line, a variety of other aspects need to be in place for tasting success. The need for qualified and trained manpower is of utmost importance. The need for specialized skills is increasingly felt in the areas of: Strategic management – strategizing, targeting and positioning, marketing and site selection, among others Merchandise management – Vendor selection, inventory management, pricing and so on Store management – Layout, display, customer relationship, inventory management, etc. Administrative Management – Human resources, finance, marketing and so on 50 With the need for specialized skill set, retailing has become a specialized area of knowledge and training. The RPG School of Retailing and the introduction of specialized retailing courses at various business schools, including the IIMs, stand testimony to this. Technology impact: The other important aspect of retailing relates to technology. It is widely felt that the key differentiator between the successful and not so successful retailers is primarily in the area of technology. Simultaneously, it will be technology that will help the organized retailer score over the unorganized players, giving both cost and service advantages. Retailing is a `technology-intensive’ industry. It is quoted that everyday at least 500 gigabytes of data are transmitted via satellite from the 1,200 point-of-sales counters of JC Penney to its corporate headquarters. Successful retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and thereby, save cost. Wal-Mart pioneered the concept of building a competitive advantage through distribution and information systems in the retailing industry. They introduced two innovative logistics techniques – cross-docking and electronic data interchange. Today, online systems link point-of-sales terminals to the main office where detailed analyses on sales by item, classification, stores or vendor are carried out online. 51 Besides vendors, the focus of the retailing sector is to develop the link with the consumer. `Data Warehousing’ is an established concept in the advanced nations. With the help of `database retailing’, information on existing and potential customers is tracked. Besides knowing what was purchased and by whom, information on softer issues such as demographics and psychographics is captured. Retailing, as discussed before, is at a nascent stage in our country. Most organized players have managed to put the front ends in place, but these are relatively easy to copy. The relatively complicated information systems and underlying technologies are in the process of being established. Most grocery retailers such as Food World have started tracking consumer purchases through CRM. The lifestyle retailers through their `affinity clubs’ and `reward clubs’ are establishing their processes. The traditional retailers will always continue to exist but organized retailers are working towards revamping their business to obtain strategic advantages at various levels – market, cost, knowledge and customer. 52 With differentiating strategies – value for money, shopping experience, variety, quality, discounts and advanced systems and technology in the back-end, change in the equilibrium with manufacturers and a thorough understanding of the consumer behaviour, the ground is all set for the organized retailers. The bottom line could look brighter, after all! It would be important to note, however, that the retailing industry in India is still a `protected industry’. It is one of the few sectors which still have restrictions on FDI. Given the current trend in liberalization, it will not be long before the retailing sector is also thrown open to international competition. This will see a further segregation of the international retailing brands and the domestic retailers, thereby injecting much greater dynamism into the market. That will be when the real action will begin. In the second article on retailing, we uncover a model for retailers to handle the emerging scenario. India’s retail sector is going to transform and with a three-year compounded annual growth rate of 46. 64 per cent, retail sector is the fastest growing sector in the Indian economy. Traditional markets are transforming themselves in new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and near metro cities, introducing the Indian consumer to a new shopping experience. How to cite Brand Elements, Papers

Brand Elements Free Essays

string(95) " particular r making increased and innovative use of visual merchandising for promoting sales\." STUDY ON THE IMPORTANCE,ROLE,CONSUMER IMPACT BUDGET OF VISUAL MERCHANDISING Dissertation Submitted to the Padmashree Dr. D. Y. We will write a custom essay sample on Brand Elements or any similar topic only for you Order Now Patil University In partial fulfillment of the requirements for the award of the Degree of MASTERS IN BUSINESS ADMINISTRATION Submitted by: DIVYA. P. KUMAR (Roll No. MBA-RET-0801010) Research Guide: PROF. KRISHNA SHETTY Department of Business Management Padmashree Dr. D. Y. Patil University CBD Belapur, Navi Mumbai. March 2010 1 INDEX TOPICPAGE NO 1Declaration4 2Certificate5 3Acknowledgement6 Objective of the project7 5Definition of the problem8 6Literature Review10 7Executive Summary15 INTRODUCTION TO VISUAL MERCHANDISING 8Introduction to Retailing17 9Introduction to Visual Merchandising63 10Role Of Visual Merchandising87 11Effect of the colour, line etc on Visual Merchandising152 12Impact Of Visual Merchandising on Consumer Behaviour167 13Budget in Visual Merchandising175 14Questionnaire185 15Data Analysis187 16Research Methodology191 17Recommendations192 18Limitations of study193 2 19Conclusion194 20Bibliography198 3 DECLARATION: I Divya P Kumar hereby declare that the dissertation, VISUAL MERCHANDISING – Importance, Role, Impact on Consumer Budget submitted for the degree of Masters of Business Administration at Padmashree Dr. D. Y. Patil University’s Department Of Business management is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles Place: Navi MumbaiSignature of the student: Date: 4 CERTIFICATE This is a certify that the dissertation titled Visual Merchandising is the bonafide research work carried out by Ms. Divya P Kumar of M. B. A at Padmashree Dr. D. Y. Patil University’s, Department Of Business Management during the year 2008-2010, in partial fulfilment of the requirements for the award of degree of Master In Business Administration and that the dissertation has not formed the basis for the award previously of any degree, diploma, associate ship, Fellowship or any other similar title. Place: Navi MumbaiSignature of the Guide Date: 5 ACKNOWLEDGEMENT I express my sincere gratitude to Prof. Krishna Shetty for providing me valuable guidance for the project on ? Visual Merchandising?. I also express my deep sense of gratitude to all the staff members for providing valuable guidance, information and facilities required for my project work. Last but not the least I am thankful to DR. D. Y. PATIL UNIVERSITY’S DEPARTMENT OF BUSINESS MANAGEMENT for giving me this wonderful opportunity of final project. Dr. R. Gopal Director, Department of Business Mgt, Padmashree Dr. D. Y. Patil University. 6 OBJECTIVES OF THE PROJECT: 1. To know the fundamentals and factors effecting visual merchandising. 2. To understand the problems of visual merchandising in retail industry. 3. To know the budgeting constraints of visual merchandising 4. To suggest solutions to problems of visual merchandising. 7 DEFINITION OF PROBLEM: Visual Merchandising (VM) is the art of presentation, which puts the merchandise in focus and in perspective too. It educates the customers, creates desire and finally augments the selling process. This is a nascent area of the Indian retail industry. Visual Merchandising achieves the following: †¢ Educates the customers about the products and services offered creatively and effectively. †¢ Enables a successful selling process, from browsing to buying. †¢ Establishes a creative medium to present merchandise in a lifelike 3-D environment, thus creating a strong impact and recall value. †¢ Sets the context of the merchandise. †¢ Establishes the linkage between fashions, product design and marketing by keeping the focus on the product. Draws the attention of the customers and help them match their needs with the visually merchandised product. 8 Every company in India keeps a specific amount apart for visual merchandising as it has a great impact on its sales. The budget set up by most of the companies are very low thereby proving to set up a challenge for the visual merchandiser to utilize all the concepts and tools of visual merchandising to profit the co mpany. The visual merchandiser has to come up with plans to make the maximum utilization of the money provided. It is his/her creativity that comes into play at this time. Literature Review 1. ) Retail Management(Text Cases) – Second Edition Author – Swapna Pradhan This book seeks to expand the coverage in important topical areas of merchandise management, customer service retail marketing communicant and financial planning among others. The focus of this book has been on explaining the concepts n practices in retail mngt, particularly in the Indian/Asian setting. The author has taken a practical approach to make the treatment sound and interesting. Consequently the book is dotted with ? retail snapshots? which are boxed exhibits that illustrate a particular retail activity or situation-and 8 case studies including those on start bucks, shoppers stop, gili, big bazaar and titan. 2. )Retail Management – An Introduction Edited by V. V Gopal This book is based on relevant authoritative and thought provoking articles written by experts and published in leading professional magazines and research journals. The articles are organized in a sequential and logical way that makes reading cont and helps the reader acquire a holistic view of the subject. This helps in strengthening the understanding of the subject better and also enables the reader stretch their thoughts beyond the content of the book. The series is designed to meet the requirements of executive, research scholars, academicians and students of professional programs. 10 3. ) Visual Merchandising Advertisement Express—Magazine, Dec 2008 IFAI University Press In this issue v have articles listed fewer than 5 sections and a case study . The cover story of the issue is visual merchandising. Marketers adopt various promotional strategies for the purpose of increasing sales volume. Visual merchandising is to organize the retail store such that the visual impact thus created is capable of attracting customers and making their shopping experience a real pleasure. The article discusses some aspects of visual merchandising in the current competitive scenario. The retail section has 1 article, ? consumer relation mngt in retail sector.? The descriptive article investigates the relationship mngt issues and the policies formulated for the same in the retail industry. 4. ) Marketing Master mind -Magazine Feb 2010 Visual Merchandising – A silent salesman of retailers. Modern retailing formats in particular r making increased and innovative use of visual merchandising for promoting sales. You read "Brand Elements" in category "Papers" With the growing presence of organized retailing in India, the use of visual merchandising concepts and tools is on the upswing. The cover story of the issue outlines the importance of visual merchandising and its role in today‘s scenario in the Indian retail industry. A special feature of this issue is the conclusions of an interview section . We have an interview with Obopay, A company that provides a solution for effective payments through mobile phones, A novel service which is now on offer in India too. 11 This issue also carries articles on other interesting topics such as consumer behaviour, tourism marketing and customer relationship mngt. 5. ) Retail Management Dunne Lusch-India Editioon This edition of retail mngt gives u gr8 insight into all aspects of retailing in a well thought out methodical approach that is sensitive to the constant changes within the industry. Professors Dunne Lusch have continued the highest level of research to stay current with the industry and this enables the reader to engage in a well rounded dialogue about the retail industry. This book covers all major disciplines for retailing including human resources, operations , marketing ,multichannel retailing, finance other areas as well, which will help u gain the best possible understanding about the retail industry. 6. ) Retailing Mngt 6th Edition 2007 Michael Levy Barton A Weitz Known for its strategic look at retailing and current coverage , this 6th edition cont,. to be orgaised around a model of strategic decision making. One of the major advantages of Levy/ Weits approach is the text readability, Organisation ,and its emphasis on how students can come to grips with real retailing issues and be able to solve problems . The text logical organization around a decision making process allows readers to learn about the process of strategic decision first b4 moving onto decision implementation. The implementation decisions are broken down into merchandise mngt decisions and store mngt decisions just as they would be in a real retailing sector. 12 The text provides a balanced treatment of strategic, ? how to ? and conceptual material ,in a highly readable and interesting format. The 6th edition cont. its cutting edge coverage on the latest topics and developments in retailing including globalization ,customer relationship mngt program , multichannel retailing,scm and the use of internet to improve operating efficiencies and customer service. 7. Fashion Retailing Author – Priyanka Ramgopal Well written, great photography illustration. The text is approached logically with clear explanation of practical, real information that can be applied immediately. A must have for anyone entering the fashion retailing field or for retailers needing to up their game or train staff. Gave me a good understanding of how the fashion merchandising fiel is structured, who does what, how to merchandise a retail availability correctly and guidelines and approaches for creating effective displays. 8. ) India retail report 2009 By Image Group A guest introduction for retail students, this book offer a user-friendly references guide to all aspects of fashion, merchandising and covers both images, dressing and in-store areas. Using examples from a range of store from fashion emporia to supermarkets, the book offers practical advice on the subject, supported by hints and tips from established fashion merchandiser. It reveals the secrets of their tool kit, and information on the use of mannequins, the latest technology, how to construct and source props and explains the psychology behind shopping and buyer. 13 9. VMSD: Visual Merchandising Magazine: If you are looking for the primary magazine used by visual communicators, store display artists, and retail desigers, then VMSD is the answer. Since 1922,VMSD has been the prominent publication that reports on visual merchandising news and events, the latest in retail display, visual design, merchandising strategies, and new products. 10. ) Visual Merchandising Auth or – Tony Morgan A guest introduction for retail students, this book offer a user-friendly references guide to all aspects of visual merchandising and covers both window dressing and in-store areas. Using examples from a range of store from fashion emporia to supermarkets, the book offers practical advice on the subject, supported by hints and tips from established visual merchandiser. It reveals the secrets of their tool kit, and information on the use of mannequins, the latest technology, how to construct and source props and explains the psychology behind shopping and buyer 14 Executive Summary Indian Retail Industry is ranked among the ten largest retail markets in the world. The attitudinal shift of the Indian consumer in terms of â€Å"Choice Preference†, â€Å"Value for Money† and the emergence of organized retail formats have transformed the face of Retailing in India. The Indian retail industry is currently estimated to be a US$ 200 billion industry and organized Retailing comprises of 3 per cent (or) US$6. 4 Billion of the retail industry. With a growth over 20 percent per annum over the last 5 years, organized retailing is projected to reach US$ 32 Billion by 2014. The Indian retail industry though predominantly fragmented through the owner -run † Mom and Pop outlets† has been witnessing the emergence of a few medium sized Indian Retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle International. In the last few years, Indians have gone through a dramatic transformation in lifestyle by moving from traditional spending on food, groceries and clothing to lifestyle categories that deliver better quality and taste. Modern retailing satisfies rising demand for such goods and services with many players entering the bandwagon in an attempt to tap greater opportunities. According to the report of American Management Consulting Firm A. T. Kearney’s 2006 Global Retail Development Index (GRDI), India is on the first position , continuing for two years (2005 and 2006), among 30 countries as the 15 world’s most attractive market for mass merchant and food retailers seeking overseas growth. On the other hand, China is losing its attractiveness and making the way to India GRDI helps retailers to prioritize their global development strategies by ranking emerging countries based on a set of 25 variables including economic and political risk, retail market alternatives, retail saturation level, and the difference between gross domestic product growth and retail growth. The study quotes : â€Å"The Indian retail market is gradually but surely opening up, while China’s market becomes increasingly saturated. visually merchandised product. Visual Merchandising is the art of displaying merchandise in a manner that is appealing to the eyes of the customer. It sets the context of the merchandise in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. A creative and talented retailer can use this upcoming art to breathe in new life into his store products. Passion for design a nd creativity are essential to be a good visual merchandiser A perfect design process and the ability to create ideas that are different are required. Awareness of happenings in fashion world is needed so as to keep up-to-date with the dynamics of the market constantly. Visual merchandising includes window displays, signs, interior displays, cosmetic promotions and any other special sales promotions taking place. 16 Introduction to Retailing 17 The Global Retail Industry Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services. The impact can be best seen in countries like U. S. A. , U. K. , Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector. Retail is the second-largest industry in the United States both in number of establishments and number of employees. It is also one of the largest worldwide. The retail industry employs more than 22 million Americans and generates more than $3 trillion in retail sale annually. Retailing is a U. S. $7 trillion sector. Wal-Mart is the world‘s largest retailer. Already the world‘s largest employer with over 1million associates, Wal-Mart displaced oil giant Exxon Mobil as the world‘s largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size, market clout, and efficiency to create market dominance. 18 Wal-Mart heads Fortune magazine list of top 500 companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business. Top Retailers Worldwide 1 Wal-Mart Stores, Inc. U. S. A. 2 Carrefour Group France 3 The Kroger Co. U. S. A. 4 The Home Depot, Inc. U. S. A. 5 Metro Germany Retail Scenario in India: Touching Meteoric Scales As the corporates – the Piramals, the Tatas, the Rahejas, ITC, S. Kumar‘s, RPG Enterprises, and mega retailers- Crosswords, Shopper‘s Stop, and Pantaloons race to revolutionize the retailing sector, retail as an industry in India is coming alive. Retail sales in India amounted to about Rs. 400 billion in 2002, expanded at an average annual rate of 7% during 1999-2002. With the upturn in economic growth during 2003, retail sales are also expected to expand at a higher pace of nearly 10%. Across the country, retail sales in real terms are predicted to rise more rapidly than consumer expenditure during 2003-08. 19 The forecast growth in real retail sales during 2003- 2008 is 8. 3% per year, compared with 7. 1% for consumer expenditure. Modernization of the Indian r etail sector will be reflected in rapid growth in sales of supermarkets, departmental stores and hyper marts. Sales from these large-format stores are to expand at growth rates ranging from 24% to 49% per year during 2003-2008, according to a latest report by Euro monitor International, a leading provider of global consumer-market intelligence. A. T. Kearney Inc. places India 6th on a global retail development index. The country has the highest per capita outlets in the world – 5. 5 outlets per 1000 population. Around 7% of the population in India is engaged in retailing, as compared to 20% in the USA. In a developing country like India, a large chunk of consumer expenditure is on basic necessities, especially food-related items. Hence, it is not surprising that food, beverages and tobacco accounted for as much as 71% of retail sales in 2002. The share of food related items had, however, declined over the review period, down from 73% in 1999. This is not unexpected, because with income growth, Indians, like consumers elsewhere, have started spending more on non-food items compared with food products. 20 Sales through supermarkets and department stores are small compared with overall retail sales. Nevertheless, their sales have grown much more rapidly, at almost a triple rate (about 30% per year during the review period). This high acceleration in sales through modern retail formats is expected to continue during the next few years, with the rapid growth in numbers of such outlets due to consumer demand and business potential. The factors responsible for the development of the retail sector in India can be broadly summarized as follows: †¢ Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Looking at income classification, the National Council of Applied Economic Research (NCAER) classified approximately 50% of the Indian population as low income in 1994-95; this is expected to decline to 17. 8% by 2006-07. †¢ Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogg‘s, Unilever, Nestle, etc. 21 To make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. †¢ Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains Reach of satellite T. V. channels is helping in creating awareness about global products for local markets. About 47% of India‘s population is under the age of 20; and this will increase to 55% by 2015. This young population, which is technolog y-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country. As India continues to get strongly integrated with the world economy riding the waves of globalization, the retail sector is bound to take big leaps in the years to come. The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organised sector represents only 2% share of this market. 22 Most of the organised retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold through the super markets and departmental stores. A similar phenomenon has swept through all other Asian countries. Organised retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the growth in development of the retail-specific properties and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed and will be available for occupation over the next 36- 48 months. Fitch expects organized retail to capture 15%-20% market share by 2010. A McKinsey report on India says organised retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (14%), and Poland (12%). 23 PRESENT INDIAN SCENARIO * Unorganized market: Rs. 583,000 crores * Organized market: Rs. 5, 000 crores * 5X growth in organized retailing between 2000-2005 * Over 4,000 new modern Outlets in the last 3 years * Over 5,000,000 sq. ft. of mall space under development * The top 3 modern retailers control over 750,000 sq. ft. of retail space * Over 400,000 shoppers walk through their doors every week * Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 5,000 crores (US$ 7 Billion) or more by 2005-06 TRADITIONAL RETAIL SCENE IN INDIA India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom Pop having Shop in the front house at the back. More than 99% retailers function in less than 500Sq. Ft of area. All the merchandise was purchased as per the test vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading home are not maintained separately. Profits were accumulated in slow moving non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. 24 The Manufactures were to distribute goods through C F agents to Distributors Wholesalers. Retailers happen to source the merchandise from Wholesalers reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors /or Wholesalers. Virtually there was only one format of retailing that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based truly very low range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented next turn may be on festivals, Marriages, Birthdays some specific occasions. 25 Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals Formals leisure wear sports wear different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks. However electronic electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge. Different Forms of Retailing : Emergence of new formats of retailing in India Popular Formats †¢ Hyper marts 26 †¢ Supermarkets †¢ Departmental Stores †¢ Speciality Stores 27 †¢ Discount/shopping list grocer †¢ Traditional retailers trying to reinvent by introducing self- service formats as well as value- added services such as credit, free home delivery etc. RetailerOriginal formats RPG Retail Supermarket (Food world) Piramal’sDepartment Store (Pyramid Megastore) Pantaloon Small format outlets (Shoppe) RetailDepartment Store (Pantaloon) K RahejaDepartment Store (shopper’s Groupstop) Specialty Store (Crossword) Tata/ Trent Department Store (Westside) Landmark Department Store (Lifestyle) Group Later Formats Hypermarket (Spencer’s)Specialty Store (Health and Glow) Discount Store (TruMart) Supermarket (Food Bazaar) Hypermarket (Big Bazaar) Mall (Central) Supermarket (TBA) Hypermarket (TBA) Hypermarket (Star India Bazaar) Hypermarket (TBA) Others Discount Store (Subhiksha, Margin Free, Apna Bazaar), Supermarket Nilgiri’s), Specialty Electronics 28 Plans of Large Retailers * Reliance Retail: investing Rs. 30,000 crore ($6. 67 billion) in setting up multiple retail formats with expected sales of Rs. 90,000 crore plus ($20 billion) by 2009-10. * Pantaloon Retail: Will occupy 10 mn sq. ft retail space and achieve Rs. 9,000 crore-plus ($2 bn) sales by 2008. * RPG: Planning IPO w ill have 450-plus Music World, 50-plus Spencer’s Hyper covering 4 mn sq. ft by 2010. * LIFESTYLE: Investing Rs. 400 crore-plus ($90 mn) in next five years on Max Hypermarkets value retail stores, home and lifestyle centres. Rahejas: Operates Shoppers’ Stop, Crossword, Inorbit Mall, and ‘Home Stop’ formats. Will operate 55 â€Å"Hyper city† hypermarkets with US$100 million sales across India by 2015. * Pyramids Retail: Aiming to occupy 1. 75 million sq. ft retail spaces through 150 stores in next five years. * TATA (Trent Ltd. ): Trent to open 27 more stores across its retail formats adding 1 mn sq. ft of space in the next 12 DLF malls. Titan industries to add 50-plus Titan and Tanishq stores in 2006. 29 Small is big for Indian retail: It’s raining malls in small-town India. Whether it’s Kanpur, Ahmadabad, Indore, Agra, Baroda or Surat, the mall and multiplex culture has caught on in the country’s smaller cities, powered by the burgeoning purchasing power of India’s middle-class. From a handful of malls in the mid ’90s, India today has nearly 200 malls spread across large and small cities. And 700 new malls are coming up all over India40% of them concentrated in the smaller cities. Small-town India is the next big thing in the retail business. Consider these numbers: in 2005, the contribution of smaller cities to total organized retailing sales was 15%. By the end of this year, that proportion is expected to grow to 25%. Organized retailing in small-town India is growing at a staggering 50-60% a year compared to 35%-40% in the large cities. The striking point is that it is the big names in the organized retail business that are eyeing these new opportunities. The Kishore Biyani-owned Future Group, India’s largest retailer, plans to invest Rs 3,600 crore in 100 stores in 30 cities, increasing its retail space from 3. 5 million square feet to 30 million sq feet. The RPG group plans to open malls in all cities with a population of over 8 lakh. Similarly, Wills Lifestyle, the garments and accessories retailing division of ITC Ltd, plans to increase its footprint by doubling the number of stores from 50 to around 100 in the next two to three years, mostly in smaller cities. 30 Even Sunil Mittal’s Bharti group has announced plans to get into food and farm products retailing. All these plans, however, are dwarfed by Mukesh Ambani’s ambitions to do a Wal-Mart in India by investing $5. 60 billion (Rs 25,000 crore) and covering 1,500 cities and towns. The small-town retail boom could be considered a show-case of India’s freemarket prosperity. It is being powered by healthy economic growth that is making more Indians more prosperous. Organized retailers have understood this and are hoping to ride the wave, exploit the first-mover advantage and establish strong brand loyalties in these relatively under-served markets. Indeed, this is probably the most compelling example of the trickle-down impact of liberalization in India. Looking ahead, retail analysts suggest that the sustained success of the IT and industries in small towns is expected to create more jobs and enhance spending power. Typically, small cities offer a 15% to 30% cost advantage over larger cities, not just in terms of employee costs but real estate costs as well, not to speak of the gains that accrue from reduced staff attrition rates. This gap is expected to widen over the next few years, creating a pull for smaller towns that will, in turn, power the small-town retail revolution. At present, real estate costs present a major incentive for India’s organized retailers. Average rental values for ground-floor space are Rs 50-60 per square foot a month, against Rs 100-120 per sq foot a month in the bigger cities. 1 However, a strong demand for retail space has more than doubled rentals in cities like Jaipur, Chandigarh, Surat and Lucknow. While in the metros, retailers are filling gaps by increasing more stores, in small towns, these malls are way beyond the expectations of the consumers. These cities are untapped markets and retailers find it important to establish their brands there. Smaller ci ties are seeing plenty of action. For instance, Ludhiana can already boast worldwide restaurant chains like KFC, McDonald’s, Pizza Hut, Domino’s Pizza, Ruby Tuesday and Subway. A new world-class, 25-acre commercial centre and some seven new shopping malls-cum-entertainment centres are under construction. The Indian retail market is estimated at $350 billion. But organized retail is estimated at only $8 billion. However, the opportunity is huge—by 2010, organized retail is expected to grow to $22 billion. With the growth of organized retailing estimated at 40% (CAGR) over the next few years, Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. It is names like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon. The Indian retail sector can be broadly classified into: a) FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector. 32 Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector. In comparison, super markets account for a small proportion of food sales in India. However the growth rate of super market sales has being significant in recent years because greater numbers of higher income. Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. b) HEALTH BEAUTY PRODUCTS With growth in income levels, Indians have started spending more on health and beauty Products Here also small, single- outlet retailers dominate the market. However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market , their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products . 33 c) CLOTHING FOOTWEAR Numerous clothing and footwear shops in shopping centres and markets operate all over India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time. d) HOME FURNITURE HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country. e) DURABLE GOODS 34 The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. f) LEISURE PERSONAL GOODS Increasing household incomes due to better economic opportunities have ncouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc. ) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. 35 INDIAN RETAIL IS MOVING INTO SECOND GEAR 1) FIRST GEAR: (Create a wareness) * New retailers driving awareness * High degree of fragmentation * Real estate groups starting retail chains * Consumer expecting ‘value for money’ as core value 2) SECOND GEAR: (Meet customer expectations) Consumer-driven * Emergence of pure retailers * Retailers getting multi-location and multi-format * Global retailers evincing interest in India 3) THIRD GEAR: (Back end management) * Category management * Vendor partnership * Stock turns * Channel synchronization * Consumer acquisition * Customer relation’s management 4) FOURTH GEAR: (Consolidation) * Aggressive rollout 36 * Organized retail acquitting significant share * Beginning of cross-border movement * Mergers and acquisitions For a start, these retailers need to invest much more in capturing more specific market. Intelligence as well as almost real-time customer purchase behaviour information. The retailers also need to make substantial investment in understanding/acquiring some advanced expertise in developing more accurate and scientific demand forecasting models. Re-engineering of product sourcing philosophies-aligned more towards collaborative planning and replenishment should then be next on their agenda. The message, therefore for the existing small and medium independent retailers is to closely examine what changes are taking place in their immediate vicinity, and analyze. Whether their current market offers a potential redevelopment of the area into a more modern multi-option destination. If it does, and most commercial areas in India do have this potential, it would be very useful to form a consortium of other such small retailers in that vicinity and take a pro-active approach to pool in resources and improve the overall infrastructure. 37 The next effort should be to encourage retailers to make some investments in improving the interiors of their respective establishments to make shopping an enjoyable experience for the customer. As the retail marketplace changes shape and competition increases, the potential for improving retail productivity and cutting costs is likely to decrease. Therefore, it will become important for retailers to secure a distinctive position in the marketplace based on value, relationships or experience. Finally, it is important to note that these strategies are not strictly independent of each other; value is function of not just price, quality and service but can also be enhanced by Personalization and offering a memorable experience. In fact, building relationships with customers can by itself increase the quality of overall customer experience and thus the perceived value. But most importantly for winning in this intensely competitive marketplace, it is critical to understand the target customer’s definition of value and make an offer, which not only delights the customers but also is also difficult for competitors to replicate. Challenges of Retailing in India Retailing as an industry in India has still a long way to go. To become a truly flourishing industry, retailing needs to cross the following hurdles: Automatic approval is not allowed for foreign investment in retail. †¢ Regulations restricting real estate purchases, and cumbersome local laws. †¢ Taxation, which favours small retail businesses. †¢ Absence of developed supply chain and integrated IT management. 38 †¢ Lack of trained work force. †¢ Low skill level for retailing management. †¢ Intrinsic complexity of reta iling – rapid price changes, constant threat of product obsolescence and low margins. The retailers in India have to learn both the art and science of retailing by closely following how retailers in other parts of the world are organizing, anaging, and coping up with new challenges in an ever-changing marketplace. Indian retailers must use innovative retail formats to enhance shopping experience, and try to understand the regional variations in consumer attitudes to retailing. Retail marketing efforts have to improve in the country – advertising, promotions, and campaigns to attract customers; building loyalty by identifying regular shoppers and offering benefits to them; efficiently managing high-value customers and monitoring customer needs constantly, are some of the aspects which Indian retailers need to focus upon on a more pro-active basis. Despite the presence of the basic ingredients required for growth of the retail industry in India, it still faces substantial hurdles that will retard and inhibit its growth in the future. One of the key impediments is the lack of FDI status. This has largely limited capital investments in supply chain infrastructure, which is a key for development and growth of food retailing and has also constrained access to world-class retail practices. 39 Multiplicity and complexity of taxes, lack of proper infrastructure and relatively high cost of real estate are the other impediments to the growth of retailing. While the industry and the government are trying to remove many of these hurdles, some of the roadblocks will remain and will continue to affect the smooth growth of this industry. Fitch believes that while the market share of organised retail will grow and become significant in the next decade, this growth would, however, not be at the same rapid pace as in other emerging markets. Organised retailing in India is gaining wider acceptance. The development of the organised retail sector, during the last decade, has begun to change the face of retailing, especially, in the major metros of the country. Experiences in the developed and developing countries prove that performance of organised retail is strongly linked to the performance of the economy as a whole. This is mainly on account of the reach and penetration of this business and its scientific approach in dealing with customers and their needs. In spite of the positive prospects of this industry, Indian retailing faces some major hurdles (see Table 1), which have stymied its growth. Early signs of organized retail were visible even in the 1970s when Nilgiris food), Viveks (consumer durables) and Nallis (sarees) started their operations. 40 However, as a result of the roadblocks (mentioned in Table 1), the industry remained in a rudimentary stage. While these retailers gave the necessary ambience to customers, little effort was made to introduce world-class customer care practices and improve operating efficiencies. Moreover, most of these modern developments were restricted to south India, which is still regarded as a ? Mecc a of Indian Retail‘ KEY CHALLENGES: 1) LOCATION: â€Å"Right Place, Right choice† Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: * Investigate alternative trading areas. * Determine the type of desirable store location * Evaluate alternative specific store sites 2) MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. 41 Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store. 3) PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm’s goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today’s customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change. 4) TARGET AUDIENCE: â€Å"Consumer the prime mover† â€Å"Consumer Pull†, however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom. 5) SCALE OF OPERATIONS: Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India. 42 FactorsDescriptionImplications Barriers to FDIFDI not permitted in pureAbsence of global retailingplayers Franchisee arrangementLimited exposure to best allowedpractices Lack of IndustryGovernment does notRestricted availability of Statusrecognize the industryfinance Restricts growth and scaling up StructuralLack of urbanizationLack of awareness of ImpedimentsPoor transportation nfrastructure Consumer habit of buying fresh foods Administered pricing Indian consumers Restricted retail growth Growth of small, one- store formats, with unmatchable cost structure Wastage of almost 20%- 25% of farm produce High Cost of RealPro-tenant rent laws EstateNon-availability of government land, zoning restrictions Lack of clear ownership titles, high stamp duty (10%) Supply Cha inSeveral segments like food Bottlenecksand apparel reserved for Difficult to find good real estate in terms of location and size High land cost owing to constrained supply Disorganized nature of transactions Limited product range Makes scaling up 43 SSIs Distribution, logistics constraints – restrictions of purchase and movement of food grains, absence of cold chain infrastructure Long intermediation chain difficult High cost and complexity of sourcing planning Lack of value addition and increase in costs by almost 15% Complex TaxationDifferential sales tax ratesAdded cost and Systemacross statescomplexity of Multi-point octroidistribution Sales tax avoidance byCost advantage for smaller storessmaller stores through ax evasion Multiple Legislations Stringent labour law governing hours of work, minimum wage payments Multiple licenses/clearances required CustomerLocal consumption habits PreferencesNeed for variety Cultural issues Limits flexibility in operations Irritant value in establishing chain operations; adds to overall costs Leads to product proliferation Need to stock larger number of SKUs at store level Increases complexity in sourcing planning Increases the cost of 44 st ore management Availability of Talent Highly educated class does not consider retailing a rofession of choice Lack of proper training ManufacturersNo increase in margins Backlash Lack of trained personnel Higher trial and error in managing retail operations Increase in personnel costs Manufacturers refuse to dis-intermediate and pass on intermediary margins to retailers ORGANISED RETAILING IN INDIA: Organized retailing is spreading and making its presence felt in different parts of the country. The trend in grocery retailing, however, has been slightly different with a growth concentration in the South. However, the Mecca of retailing is undoubtedly Chennai. What was considered a `traditional’, conservative’ and `cost-conscious’ market, proved to be the home ground for most of the successful retail names – Food World, Music World, Health and Glow, Titan, Big Bazaar and Tanishq -to name a few. 45 The choice of Chennai as the `retail capital’ has surprised many, but a variety of factors acted in its favour. Chennai, in spite of being a rapidly growing metropolis offers reasonable real estate prices, one of the most critical elements for the industry. Chennai has been witnessing a high industrial growth and ncreasing presence of the MNCs, both in the IT sector as well as outside it. The industrial boom has led to the emergence of new residential areas with aggregation of professionals as well as a rapid increase in the number of `double-income’ households and growth of the nouveau riche/upper middle class with increased purchasing power. These have been combined with the increasing need for touch an d feel shopping (especially for the large migrant population). All the factors have acted favourably in nurturing the industry. Consumer- the prime mover: A variety of factors seem to influence the growth in the retailing industry. Consumer Pull’, however, seems to be the most important driving factor behind the sustenance of the industry. In this context, A. F. Ferguson Co. had carried out a brief survey among consumers across income segments to understand their spending pattern. An analysis of the `monthly purchase basket of the consumers surveyed indicated that the average monthly household spends on food and grocery related items varied across income segments. 46 For instance, in the case of upper income households, the average spend was around Rs 4,200 per month. As against this, the average spend in the case of a middle income household was around Rs. 2,850 and lower income households Rs. 1,250 per month. (This is computed from a sample of 100 customers having an average family size of four. ) Based on the distribution of the more than 15 lakh households in Chennai across income segments and the average spend, a conservative estimate of the grocery retailing potential at Chennai will be around Rs. 300 crores. Besides increasing purchasing power, a variety of other factors also seem to fuel the retailing boom. With increase in double-income households and working women, there is an increasing pressure on time with very little time being available for leisure. In this scenario, consumers are seeking the convenience of one-stop shopping, whereby they could have better utility of time. They are also seeking speed and efficiency in processing, as a result. 4 Being more aware, consumers are on the look-out for more information, better quality and hygiene as well as increased customer service. These changes in consumer behaviour also augur well for the retailing industry. However, in India there are no uniform trends with respect to consumer buying behaviour. There are visible differences in the shopping pattern of consumers across income segments as shown in the table. Organized retailing has definitely made headway in the upper class. However, even in this segment, items such as milk, fruits, vegetables and a significant portion of `through-the-month’ purchases seem to be done at traditional outlets. The middle income class prefers shopping for processed food and personal care in supermarkets and fall back on traditional outlets for bulk shopping. Organized retail outlets seem to be associated with branded items/special purchases. Organized retailing does not seem to have made an impact on the lower class, except for `curiosity’ shopping. The biggest question before organized retailers therefore, is whether this really means a huge untapped potential for the organized retailers and whether the conversion in mindset going to be easy. Emerging trends: 48 The single most important evolution that took place along with the retailing revolution was the rise and fall of the dotcom companies. A sudden concept of `non-store’ shopping emerged, which threatened to take away the potential of the store. More importantly, the very nature of the customer segment being addressed was almost the same. The computer-savvy individual was also a sub-segment of the `store’ frequenting traffic. Internationally, the concept of net shopping is yet to be proven. And the poor financial performance of most of the companies offering virtual shopping has resulted in store-based retailing regaining the upper hand. Other forms of non-store shopping including various formats such as catalogue/mail order shopping, direct elling, and so on are growing rapidly However, the size of the direct market industry is too limited to deter the retailers. For all the convenes. Once that it offers, electronic retailing does not suit products where `look and see’ attributes are of importance, as in apparel, or where the value is very high, such as jewellery, or where the performance has to b e tested, as of consumer durables. 49 The most critical issue in electronic retailing, especially in a country such as ours, relates to payments and the various security issues involved. Retail management skills: It is a fact that the retailing industry is in its starting phase in our country. The benefits of organized retailing will only be felt once an equitable scale is achieved. This to a large extent depends on the store size, the walkthroughs, and bills per customer per year, average bill size and the revenue earned per sq. ft. But besides resources and bottom line, a variety of other aspects need to be in place for tasting success. The need for qualified and trained manpower is of utmost importance. The need for specialized skills is increasingly felt in the areas of: Strategic management – strategizing, targeting and positioning, marketing and site selection, among others Merchandise management – Vendor selection, inventory management, pricing and so on Store management – Layout, display, customer relationship, inventory management, etc. Administrative Management – Human resources, finance, marketing and so on 50 With the need for specialized skill set, retailing has become a specialized area of knowledge and training. The RPG School of Retailing and the introduction of specialized retailing courses at various business schools, including the IIMs, stand testimony to this. Technology impact: The other important aspect of retailing relates to technology. It is widely felt that the key differentiator between the successful and not so successful retailers is primarily in the area of technology. Simultaneously, it will be technology that will help the organized retailer score over the unorganized players, giving both cost and service advantages. Retailing is a `technology-intensive’ industry. It is quoted that everyday at least 500 gigabytes of data are transmitted via satellite from the 1,200 point-of-sales counters of JC Penney to its corporate headquarters. Successful retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and thereby, save cost. Wal-Mart pioneered the concept of building a competitive advantage through distribution and information systems in the retailing industry. They introduced two innovative logistics techniques – cross-docking and electronic data interchange. Today, online systems link point-of-sales terminals to the main office where detailed analyses on sales by item, classification, stores or vendor are carried out online. 51 Besides vendors, the focus of the retailing sector is to develop the link with the consumer. `Data Warehousing’ is an established concept in the advanced nations. With the help of `database retailing’, information on existing and potential customers is tracked. Besides knowing what was purchased and by whom, information on softer issues such as demographics and psychographics is captured. Retailing, as discussed before, is at a nascent stage in our country. Most organized players have managed to put the front ends in place, but these are relatively easy to copy. The relatively complicated information systems and underlying technologies are in the process of being established. Most grocery retailers such as Food World have started tracking consumer purchases through CRM. The lifestyle retailers through their `affinity clubs’ and `reward clubs’ are establishing their processes. The traditional retailers will always continue to exist but organized retailers are working towards revamping their business to obtain strategic advantages at various levels – market, cost, knowledge and customer. 52 With differentiating strategies – value for money, shopping experience, variety, quality, discounts and advanced systems and technology in the back-end, change in the equilibrium with manufacturers and a thorough understanding of the consumer behaviour, the ground is all set for the organized retailers. The bottom line could look brighter, after all! It would be important to note, however, that the retailing industry in India is still a `protected industry’. It is one of the few sectors which still have restrictions on FDI. Given the current trend in liberalization, it will not be long before the retailing sector is also thrown open to international competition. This will see a further segregation of the international retailing brands and the domestic retailers, thereby injecting much greater dynamism into the market. That will be when the real action will begin. In the second article on retailing, we uncover a model for retailers to handle the emerging scenario. India’s retail sector is going to transform and with a three-year compounded annual growth rate of 46. 64 per cent, retail sector is the fastest growing sector in the Indian economy. Traditional markets are transforming themselves in new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and near metro cities, introducing the Indian consumer to a new shopping experience. How to cite Brand Elements, Papers