Difference between Organised and Unorganised Retail The Organised retailing refers to the trading activities undertaken by licensed

retailers that is those who registered themselves for sales tax ,income tax ,etc.These include the corporate backed hypermarkets and retail chains and also the privately owned large businesses.The various forms of organized retail are a)Hypermarkets:They store products of multiple brands comprising food items and non-food items.b)Supermarkets:These are self service stores selling food and personal care products.E.g.Subhiksha.c)Departmental Stores:Retails branded goods in non-food categories.E.g. Shoppers stop.d)Speciality Chains:These focus on branded product or product category.E.g.Bata Convenience Stores.e)Malls:A huge enclosure which has different retail formats.E.g.Pantaloon Retail.Whereas,Indian retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called unorganized retail or traditional retail.Organized retailing is based on the principle of unity and unorganized retailing is based on the principle of singularity.Both organized and unorganized retailing is found in most of the countries throughout the world. India and China are strong examples of countries in which unorganized retailing dominated their markets.Today these countries have a growing economy because of the influx of organized retailers into their markets. The last 3-4 years have witnessed the entry of a number of organized retailers,opening stores in various modern formats in metros and other important cities.The growth in organized retailing in recent years can also be gauged by the rise of shopping malls as well as the rising number of modern retail formats. Organised versus unorganised In a sharp contrast to the retail sector in developed economies, retailing in India - though large in terms of size - is highly fragmented and unorganised. With close to 12 million retail outlets the country has one of the highest retail densities worldwide. Retailers include street vendors, supermarkets, department stores, restaurants, hotels and even two-wheeler and car showrooms. Counter stores, kiosks, street markets and vendors, where the ownership and management rest with one person, are classified as traditional or unorganised retail outlets. These formats typically require employees with low skills and account for around two-thirds of the sector's output. These are highly competitive outlets, with minimal rental costs (unregistered kiosks or traditional property), cheap labour (work is shared by family members) and negligible overheads and taxes. However, unorganised retailers suffer due to poor shopping experience and inability to offer a wide range of products and value-addition due to lack of sourcing capabilities. The modern Indian consumer is seeking more value in terms of improved availability and quality, pleasant shopping environment, financing options, trial rooms for clothing products, return and exchange policies and competitive prices. This has created a rapidly growing

opportunity for organised, modern retail formats to emerge in recent years and grow at a fast pace. Inefficiency in the existing supply chains presents further opportunity for organised players to draw on this large market even as lack of consumer culture and low purchasing power restricted the development of modern formats. Migration from unorganised to organised retail has been visible with economic development in most countries.

NON-STORE RETAILIN Non-store retailing is the selling of goods and services outside the confines of a retail facility. It is a generic term describing retailing taking place outside of shops and stores (that is, off the premises of fixed retail locations and of markets stands). The non-store distribution channel can be divided into direct selling (off-premises sales) and distance selling, the latter including all forms of electronic commerce. Distance selling includes mail order, catalogue sales, telephone solicitations and automated vending. Electronic commerce includes online shopping, internet trading platforms, travel portals, global distribution systems and teleshopping. Direct selling includes party sales and all forms of selling in consumers homes and offices, including even garage sales. Non-store retailing, sometimes also labelled home shopping, is consistently achieving doubledigit growth, and slowly taking a bigger share of overall retailing. However, it still only represents six per cent of all retail sales in for instance the United Kingdom (http://rd.kpmg.co.uk/mediareleases/20981.htm). In some product markets, however, such as travel and books & media, the share is much higher. In Germany in 2009, 29 per cent of the population were already using the internet to book their holidays According to Eurostat , 38 per cent of European consumers consider the internet as the most important source of information about travel [1] and 42 per cent of consumers purchased travel services over the internet in 2008 [2] . The non-store distribution channel is marked by low entry thresholds. Compared to store retailing that requires a retail outlet, inventory, cash flow to hire staff and advertising, non-store retail start-ups usually have to invest little to reach out to potential buyers of the goods and services they offer. Non-store retailing is therefore not only used by established brick and mortar business retailers who develop an online bricks and clicks business model presence, but also by the individual pure play , often him- or herself a consumer, to create an EShop or to run sales parties. The rise of social media helps to connect sellers to potential buyers. Types of Non Store Retail Format: Following are the six types of non store retailing:

Direct selling, Tele marketing, Online retailing,

Automatic vending, Direct marketing, and Electronics retailing.

In Home Retailing Telephone Retailing Non Store RetailingCatalogue Retailing Non Store Retailing Electronic RetailingAutomatic VendingDirect Response RetailingNon Store Retailing Some global Non store Retail companies are:

The Home Depot, Inc. Dollar Tree, Inc. Forever 21, Inc. The Bon-Ton Stores, Inc. Costco Wholesale Corporation J. Crew Group, Inc. Army and Air Force Exchange Service Bass Pro Shops, Inc. Amazon.com, Inc. AutoZone, Inc.

Advantages of Non Store Retailing:

Its freedom from a physical retail presence. The high fixed costs of operating retail outlets are eliminated. The breadth of customer coverage is considerably wider than is possible with an individual retail location. Companies do not have to spend large sums or dilute stock building new locations, or acquiring them. This truly gives the non-store retailer a global market from a cheap, centralized location.

Disadvantages of Non Store Retailing:

There is also the fear of credit card abuse and mail fraud, both related to the sense of detachment that not holding a prospective purchase brings. And since most of us do not have the luxury of a pricey T1 Internet connection, we must still deal with painfully slow connections.

Direct Selling: Direct selling is also defined as personal contact between a sales person and a consumer away from a retail store. This type of retailing has also been called in home selling. Annual volume of direct selling in India is growing fast from the beginning of the 21st century. Like other forms of non-store retailing, direct selling is utilized in most countries. It is particularly widespread in Japan, which accounts for about 35% of the worldwide volume of direct selling. The U.S. represents almost 30% of the total and all other countries the rest. The two kinds of direct selling are

Door to door Party plan

Advantages of Direct Selling:

Consumers have the opportunity to buy at home or at another convenient Non-Store location that provides the opportunity for personal contact with a sales person. For the seller, direct selling offers the boldest method of trying to persuade ultimate consumers to make a purchase. The seller takes the product to the shoppers home or work place and demonstrates them for the consumer.

Limitations of Direct Selling:

Sales commissions run as high as 40 to 50%of the retail price; of course, they are paid only when a sale is made. Recruiting sales people most of whom are part timers are difficult tasks. Some sales representatives use high pressure tactics or are fraudulent.

Telemarketing: Sometimes called telephone selling, telemarketing refers to a sales person initiating contact with a shopper and closing a sale over the telephone. Telemarketing many entail cold canvassing from the phone directory. Many products that can be bought without being seen are sold over the telephone. Examples are pest control devices, magazine subscriptions, credit cards and cub memberships. Telemarketing is not a problem free retailing. Often encountering hostile people on the other end of the line and experiencing many more rejections than closed sales, few telephone sales representatives last very long in the job. Further some telemarketers rely on questionable or unethical practices. For instance firms may place calls at almost any hour of the day or night. This tactic is criticized as violating consumers' right to privacy. To prevent this, some states have enacted rules to constrain telemarketers' activities. Despite these problems, telemarketing sales have increased in recent years. Fundamentally, some people appreciate the convenience of making a purchase by phone. Costs have been reduced by computers that automatically dial telephone number, even deliver a taped message and record information the buyer gives to complete the sale. The future of telemarketing is sure to be affected by the degree to which the problems above can be addressed and by the surge of online retailing. Advantages and Disadvantages of Telemarketing: There are many advantages and disadvantages of telemarketing. Telemarketing is a somewhat stressful career choice. It really depends on what type of telemarketing that you do. Collection call telemarketing can be one of the worst telemarketing jobs that you can have. No matter which path of telemarketing you take you will run into a lot of rude people. Everybody knows that people do not like to get interrupted by telemarketers at home. When I see a telemarketer call or when I hear a pause on the line, I hang up the phone. You can do telemarketing from home. Usually companies will pay you at least ten dollars an hour to do this from your home. One company that hires telemarketers is known as BabyToBee. This job is better than your average

telemarketing companies because you are calling expectant mother and fathers and offering them baby coupons. Usually these people sign up on the website to receive these things and they are happy to hear from you. It's probably one of the only telemarketing jobs that people will be excited to talk to you.As with any telemarketing company you will run into dead leads such as people sign up and can't remember or they never signed up. With a lot of companies it has been a long time since they signed up for whatever it was they were looking to get. The best way to have a successful call is to establish a rapport with your parent. If they trust you and you are friendly they will be more likely to end the call with you on a good note. With telemarketing you cannot get upset with people who call you names and hang up on you. Online Retailing: When a firm uses its website to offer products for sale and then individuals or organizations use their computers to make purchases from this company, the parties have engaged in electronic transactions (also called on line selling or internet marketing). Many electronic transactions involve two businesses which focus on sales by firms to ultimate consumers. Thus online retailing is one which consists of electronic transactions in which the purchaser is an ultimate consumer. Online retailing is being carried out only by a rapidly increasing number of new firms, such as Busy.com, Pets Mart and CD Now.com. Some websites feature broad assortments, especially those launched by general merchandise retailers such as Wal-mart and Target. Some Internet only firms, notably Amazon.com are using various methods to broaden their offerings. Whatever their differences, e-retailers are likely to share an attribute. They are unprofitable or best, barely profitable. Of course, there are substantial costs in establishing an online operation. Aggressive efforts to attract shoppers and retain customers through extensive advertising and low prices are also expensive. The substantial losses racked by online enterprises used to be accepted, perhaps even encouraged by investors and analysts. The rationale was that all available funds should be used to gain a foothold in this growing market. Despite these challenges, online retailing is expected to grow, rapidly and significantly for the foreseeable future. Online sales represented about 1% of retail spending in 2005, but one research firm estimates that consumer purchases on the Internet with triple by the year 2010. Which product categories are consumers most likely to buy on the Internet in the future? Consumers' shopping intentions in 2005 placed the following goods and services at the tope of the list: books, music and videos, computer hardware and software, travel and apparel. Of course, given that change on the Internet occurs, these categories soon may be surpassed by others - perhaps groceries, toys, health and beauty aids, auto parts or pet supplies. Advantages of Online Retailing: Bargaining power of consumers. They enjoy a wider choice Supplier power. It is more difficult for consumers to manage a non-digital channel. Internet increases commoditization. Threat of new entrants. Online means it is easier to introduce new services with lower over-heads Threat of substitutes Rivalry among competitors. It is easier to introduce products and services to different markets Automatic Vending: The sale of products through a machine with no personal contact between buyer and seller is called automatic vending. The appeal of automatic vending is convenient purchase. Products sold by automatic vending are

usually well-known presold brands with a high rate of turnover. The large majority of automatic vending sales comes from the " 4 C's" : cold drinks, coffee, candy and cigarettes. Automatic vending is a unique area in non-store merchandising because the variety of merchandise offered through automatic vending machines continues to grow. Initially, impulse goods with high convenience value such as cigarettes, soft drinks, candy, newspapers, and hot beverages were offered. However, a wide array of products such as hosiery, cosmetics, food snacks, postage stamps, paperback books, record albums, camera film, and even fishing worms are becoming available through machines. Advantages and disadvantages: Vending machines can expand a firm's market by reaching customers where and when they cannot come to a store. Thus vending equipment is found almost everywhere, particularly in schools, work places and public facilities. Automatic vending has high operating costs because of the need to replenish inventories frequently. The machines also require maintenance and repairs. Future Expectations: The outlook for automatic vending is uncertain. The difficulties mentioned above may hinder future growth. Further, occasional vending-related scams may scare some entrepreneurs away from this business. Vending innovations give reason for some optimism. Debit cards that can be used at vending machines are becoming more common. When this card is inserted into the machine, the purchase amount is deducted from the credit balance. Technological advances also allow operators to monitor vending machines from a distance, thereby reducing the number of out-of-stock or outof-order machines. Direct Marketing: There are no consumers on the exact nature of direct marketing. In effect, it comprises all types of non-store retailing other than direct selling, telemarketing, automatic vending and online retailing. In the context of retailing, it has been defined as direct marketing as using print or broadcast advertising to contact consumers who in turn, buy products without visiting a retail store. Direct marketers contact consumers through one or more of the following media: radio, TV, newspapers, magazines, catalogs and mailing (direct mail). Consumer orders by telephone or mail. Direct marketers can be classified as either general - merchandise firms, which offer a variety of product lines, or specialty firms which carry - only one or two lines such as books or fresh fruit. Under the broad definition, the many forms of direct marketing include:

Direct mail - in which firms mail letters, brochures and even product samples to consumers, and ask them to purchase by mail or telephone. Catalog retailing - in which companies mail catalogs to consumers or make them available at retail stores. Televised shopping - in which various categories of products are promoted on dedicated TV channels and through infomercials, which are TV commercials that run for 30 minutes or even longer on an entertainment channel.

Advantages of Direct Marketing: Direct marketing provides shopping convenience. In addition, direct marketers enjoy

comparatively low operating expenses because they do not have the overhead of physical stores. Disadvantages of Direct Marketing:

Consumers must place orders without seeing or touching the actual merchandise. To offset this, direct marketers must offer liberal return policies. Furthermore, catalogs and to some extent, direct mail pieces are costly and must be prepared long before they are issued. Price changes and new products can be announced only through supplementary catalogs or brochures. Direct marketing's future is difficult to forecast, given the rise of the Internet. The issue is whether or not firms relying on direct marketing can achieve and sustain a differential advantage in a growing competition with online enterprises.

E-Retailing:Internet Retailing or e-retailing as is usually referred to as covers retailing using a variety of different technologies or media. It may be broadly be a combination of two elements. Combining new technologies with elements of traditional stores and direct mail models using new technologies to replace elements of stores or direct mail retails. Internet retail also has some elements in common with direct mail retailing. For example, e-mail messages can replace mail messages and the telephone, that are used in the direct mail model as means of providing information, communication and transactions while on-line catalogues can replace printed catalogues. As with direct mail businesses, critical success factors include:(i) Use of customer databases (ii) Easy ordering (iii) Quick Delivery Operational elements that the Internet retail model shares with both the retail store and direct mail models include:(i) Billing of customers(ii) Relationships with supplier There are, therefore, many elements that Internet retail and more traditional retail models have in common. Indeed many of the most successful Internet retailers have been those that have been able to successfully transfer critical elements from traditional retailing to the Internet, such as customer service and product displays. E-Retailing in India: Bottlenecks Faced By E-Retailing in India: (1) Problems with the Payment System People in India are not used to the online shopping system and moreover the online payment system through the credit card is also totally alien to them. Most of them do not avail of the transaction facilities offered by the credit cards. They are also dubious regarding the online payment system through the credit cards. Hence different payment options should be made available to them like the credit card, cash on delivery and net banking to give them further assurance. (2) Problems with Shipping: The customers using the online shopping channel should be assured that the products that they have ordered would reach them in due time. For this the retail companies have resorted to private guaranteed courier services as compared to postal services. (3) Offline presence:The customers should be assured that the online retailers are not only available online but offline as well. This gives them the psychological comfort that these companies can be relied upon. (4) Products offered at discounted rates:The online retailers save on the cost of building and employee salaries.

MOM AND POP STORES Mom and pop stores are businesses that are owned and operated in a single location. Rather than being part of a national chain, the mom and pop store offers a shopping alternative to consumers who wish to deal with businesses that are native to a given city or town, and where the owners of the business are established members of the local community. While the proliferation of huge retail chains have reduced the consumer market for mom & pop stores considerably, many of these locally owned businesses continue to operate and even to thrive in todays economy. One time honored example of a mom and pop store is the local general store. In decades past, just about every small town contained a business district that was anchored around a locally owned general store. The general store would offer a selection of canned goods, dry goods, fabric, and other common household needs. This type of mom and pop store often also functioned as one of the social hubs in town, as people would have the chance to visit with one another while they shopped. nother common example of a mom and pop store was the corner drugstore. Usually owned and operated by the same family for generations, this type of corner store would provide not only prescription medications, but also a selection of over the counter drugs, various gifts and notions, comic books, and even a soda fountain. In many instances, the druggist or pharmacist would be the proprietor of the mom & pop store as well, and would be a well known figure in the community. As with the general store, the locally owned drugstore would often function as a center for social activity in the community. Today, the mom and pop store still thrives in a number of forms. Some of these corner stores are found in neighborhood business districts and are intended to meet consumer needs for a limited geographical area. These often include locally owned coffee houses, pizzerias, and cafes. While reduced greatly in numbers, there are still mom & pop stores such as bookstores, drugstores, and even general merchandise stores that are very similar to the old fashioned general store.

DEPARTMENTAL STORES A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, home appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewellery, toys, and sporting goods. Certain department stores are further classified as discount stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countries.

India has number of departmental stores. Being the seventh largest country in the world there are lot of companies like Big Bazaar, Shopper's Stop, Pantaloon, Ezone , Reliance Fresh and Dmart entering into retail. Small time department stores - or convenience stores as they are better known in most western countries, are also upcoming. Although these stores are much bigger in size than a usual-size convenience store in, lets say the US, they are much smaller than a regular-sized department store. Examples include : Sabka Bazaar : Big Apple : Marks and Spencers Characteristics / Features of Departmental Store

Following are the main features or characteristics of a Departmental Store :1. Departmental Store is located in the centre of a city The departmental store is usually located in the central area of a large city. Location and premises are the two most important aspects for it. The departmental store is generally situated at that place where a MAximum number of people comes for shopping. 2. Departmental Store offers a wide variety of goods A departmental store not only offers a wide variety of goods and but also provides a huge range of designs, colours and styles that suit individual demands of consumers.

3. Departmental Store means shopping under one roof The main idea behind a departmental store is to supply all basic requirements under one roof. It acts as a supplier of a large variety of quality goods and services. Thus, departmental store provides maximum shopping convenience to its customers. 4. Departmental Store offers quality goods and services The motto of every departmental store is to provide high quality goods and render professional services to their customers. It always keeps a huge stock of fresh goods which highlight latest fashions and trends followed by different manufacturers. 5. Departmental Store has a single management Various sections of the departmental store operate independently. However, they all are under direct control of a single management. Buying, supervision, accounting, advertising and external communications are handled directly by the central management of a departmental store.

6. Departmental Store always attracts customers Departmental stores have attractive interior decoration and window display. They spend heavily on sales promotion. This is done through the advertising, discounts, special seasonal offers, gift schemes, festival offer, etc. 7. Departmental Store fulfil needs of most families Departmental store mainly satisfies needs of the rich and higher middle class group of the society. More attention is given to quality, choice, convenience and service rendered to the customer.

8. Departmental Store renders good customer service

Departmental stores offer efficient customer services such as inspection of goods, actual demonstration of goods, convenient packages, provision for refreshment, reading rooms, home delivery, parking facility, etc.

9. Departmental Store operates by appointing experts

The departmental store conducts its business on a very large scale and generates good profit revenues. It can easily afford to appoint experts for purchasing, advertising, recruitment, supervision, etc., and keeps operating smoothly.

10. Departmental Store sells goods only on cash basis

A departmental store sells goods only on a cash basis. Generally, credit facilities are not offered to customers to avoid the risk of bad debts.

11. Departmental Store has a high operational cost

Departmental stores have to incur high expenses by way of rent, advertising, provisions of conveniences and facilities to its customers. Thus, costs of operation are high.

12. Departmental Store diffuses the risk of loss

The losses made by one department of a departmental store can be compensated by profits earned by other departments. Thus, the risk of loss is diffused and hence reduced. FULL LINE DISCOUNT STORES Extensive width and depth of assortments; average-to-good-quality products, often less fashionable; very competitive prices; average atmosphere and minimal services; significant advertising (e.g., Wal-Mart, Target, and Kmart). CATEGORY KILLER A large retail chain store that is dominant in its product category. This type of store generally offers an extensive selection of merchandise at prices so low that smaller stores cannot compete. Also Known As: Big Box Store Examples: Best Buy is an example of an electronics category killer. "Category killer" retailers seek to dominate a particular category of products or services offering a large number of SKU's (or stock-keeping units) at prices commensurate with a highvolume turnover. This type of anchor tenant can be contrasted with the traditional department store type that has long anchored regional malls. Department stores have not sought to be category-killers in particular merchandise categories, but rather, to offer a wide array of products (and services) with which to draw a broad group of customers. Category-killer retailers have operated offering only branded merchandise (the IKEA model) as well as offering the merchandise of various suppliers (Office Depot). In the retailing industry, "category killer" retailers gave rise to the development of retail "power centers," a type of shopping mall that provides for one or more category killer tenants as anchors. EVOLUTION OF INDIAN RETAIL The origins of retailing in India can be traced back to the emergence of Kirana stores and momand-pop stores. These stores used to cater to the local people. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc. Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing. Retail outlets such as Foodworld in FMCG, Planet M and Musicworld in Music, Crossword in books entered the market before 1995. Shopping malls emerged in the urban areas giving a

world-class experience to the customers. Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the continuous improvement in the supply chain management, distribution channels, technology, back-end operations, etc. this would finally lead to more of consolidation, mergers and acquisitions and huge investments. Phases in the evolution of retail sector Weekly Markets, Village and Rural Melas Source of entertainment and commercial exchange

Convenience stores, Mom-and-pop / Kirana shops Neighborhood stores/convenience Traditional and pervasive reach

PDS outlets, Khadi stores, Cooperatives Government supported Availability/low costs/distribution

Exclusive brand outlets, hypermarkets and supermarkets, department stores and shopping malls Shopping experience/ efficiency Modern formats/ international

Retail in India is still at a very early stage. Most retail firms are companies from other industries that are now entering the retail sector on account of its amazing potential. There are only a handful of companies with a retail background. One such company is Nilgiris from Bangalore that started as a dairy and incorporated other areas in its business with great success. Their achievement has led to the arrival of numerous other players, most with the backing of large groups, but usually not with a retail background. Most new entrants to the India retail scene are real estate groups who see their access to and knowledge of land, location and construction as prime factors for entering the market. New retail stores have traditionally started operations in cities like Mumbai and Delhi where there has been an existing base of metropolitan consumers with ready cash and global tastes. The new perspective to this trend is that new entrants to the retail scenario should first enter smaller cities rather than focusing entirely on the metros. Spending power in India is not concentrated any more in just the 4 metros (Delhi, Mumbai, Chennai, Kolkata). Smaller but upcoming cities like Chandigarh, Coimbatore, Pune, Ahmedabad, Baroda, Trivandrum, Cochin, Ludhiana, Simla etc will fast be catching up to the metros in their spending capacity. Cities in south India have taken to the supermarket style of shopping very eagerly and so far the maximum number of organized grocery and department stores are in Chennai, Bangalore and Hyderabad. The north has a long way to go to come up to par. International stores now prefer to

gauge the reaction of the public in these cities before investing heavily in a nation-wide expansion. Milou, the Swiss childrens wear retailer, recently opened up its first store in Chennai, bypassing Delhi and Mumbai. Besides the urban market, Indias rural market has just started to be seen as a viable option and companies who understand what the rural consumer wants will grow to incredible heights. The bulk of Indias population still live in rural areas and to be able to cater specifically to them will mean generating tremendous amounts of business. Business, specifically retail business must focus on the most important factor in the Indian mindset----Value for Money. Indian consumers are ready to pay almost any amount of money for a product or service as long as they feel they are getting good Value for Money. This is often misconstrued as being tight fisted or interested in lower priced and/or lower quality products. In the past decade, international companies entering India (Levis, Pepe, Tommy Hilfiger, Marks and Spencer, Mango) have generally offered moderately priced to expensive items. They have aimed for the upper-middle and rich classes of Indian society. These are consumers who travel abroad often and can buy these items overseas quite easily. Instead, international companies should be focusing on the lower and lower-middle classes of India. This is where the real potential is, the aspirational class of consumers who want to lead a better lives and believe in education, hard work and absorb knowledge from every possible angle. The phenomenal success of Big Bazaar, Pantaloons version of Wal-Mart, is proof that there is enormous potential in providing products and services to this class of consumers. EMERGENT TRENDS IN RETAIL FORMAT e-Retailing: The importance of internet retailing is growing all over the world. Some internet retailers such as e Bay and rediff.com are providing a platform to vendors to sell their products online and they do not take the responsibility of delivering the product to buyer. They provide virtual shopping space to the vendors. On the other hand online retailers like amazon.com and walmart.com have to maintain their warehouse to stock products and take the responsibility of delivering products to the buyer. So, most of the brick and mortar stores are entering into online retailing as they have physical infrastructure and they can use that to capture additional consumer wallet. All the big retailers like Target, Sears and Kmart are operating online shop and some manufactures also operate online. For example Apple Inc. operates through apple.com and Dell Inc. sells its products online Through dell.com. In India internet retailing is growing by 29% CAGR and Euro-monitor report estimates that the a CAGR 48 per cent and in value term it going to touch INR 27 billion by 2010 from INR 4 billion in 2005. The report also predicts that the contribution of internet retailing to non- store retailing to is likely to be 46 per cent by 2010. Hypermarkets: The Biggest Crowd Puller: Hypermarkets

have emerged as the biggest crowd pullers due to the fact that regular repeat purchases are a norm at such outlets. Hypermarkets not only offer consumers the most extensive merchandise mix, product and brand choices under one roof, but also create superior value for money advantages of hypermarket shopping. With product categories on offer ranging from fresh produce and FMCG products to electronics, value apparels, house ware, do it yourself (DIY) and outdoor products, the hypermarkets are emerging as one of the popular formats in India.. Number of players operating hypermarket format are increasing day by day. One of the leading players in this format is 8 Pantaloon Retail India Limited which operates 32 Big Bazaars in twenty cities. In early 2006, the K. Raheja Corp (C.L. Raheja Group) has introduced its value retail concept hyper city which is the countrys largest hypermarket at 118000 sq ft. hyper city Retail plans to open 55 hypermarkets by 2015. As the market is expanding and consumers are in a mood to accept changes, hypermarkets are getting overwhelming response from consumer. Currently there are about 40 odd hypermarkets in India but this format holds a great potential for growth. CATEGORY KILLER:

Emergence of Private-Label Brands: The private labels are offering flexibility to both the retailer and the consumer on price front. The objective of the store is to offer variety at affordable price in each category. Food Bazaar have made the transition from just a grocery retailer to developing emotional bonding with shoppers by providing some value added services to the shoppers. Some of these initiatives include : ( Jo Dikhta Hai wo hi Bikta Hai ) Live chakki: which allows customers to buy fresh wheat and have it grinded there at the store Fresh Juice counter: This provides customer to have fresh juices. Live dairy: This provides customers with fresh milk and milk products. Live kitchen

Health and beauty products retailers With growth in incomes, Indians have been spending more on health and beauty products. As in the case of other retailing sectors, small single-outlet retailers also dominate sales of health and beauty products. However, in recent years, a couple of retail chains specialising in health & beauty products have sprung up. At present, they account for only a tiny share of sales of these products. However, as Indians spend more on such products in future, their business will undoubtedly expand substantially. There is also scope for entry of more such chains. GLOBAL RETAILING At the start of the 21st century the world appears to be at a significant watershed. The century could converge towards a more unified global approach in a number of areas, including culture, politics and commerce. People from Berlin to Buenos Aires and from San Francisco to Shanghai could experience the same music and films, and purchase the same food from the same retail organisations. Alternatively people may reform into smaller communities and reject a global approach. The future of global retailing will depend on the outcome of this process. If consumers are happy to accept globalisation, then there is clearly an opportunity for retailers to develop global strategies. There are a number of specific driving forces that can be categorised as either push factors or pull factors. Additionally a number of enablers have helped global retailing to develop by simplifying the process of globalisation for retailers. The major push factors are primarily a result of the domestic market conditions experienced by many retailers in developed economies. The increasingly limited potential in the domestic market has been the catalyst to push retailers both to look abroad and to explore opportunities provided by diversifying into new business areas. The first push factor is the current planning restrictions in many developed markets, particularly those in Western Europe. These markets have introduced increased levels of planning restrictions over the last thirty years, which were tightened much earlier on the European continent than in the UK. This led to continental retailers pursuing an international expansion programme earlier than many UK retailers. The rationale for these restrictions has included economic, social and environmental reasons. However, the effect has been the same, namely retailers searching for growth outside the confines of the domestic market. One major market that stands out as having a relative lack of planning restrictions despite a large and relatively competitive environment is that of the US. As a result, the hypermarket (Supercenter) format continues to expand at an amazing rate, principally led by Wal-Mart. The second push factor is that of home market dominance. Once a retailer has established a dominant home market position, it becomes increasingly difficult to achieve further significant

increases in turnover. Domestic market dominance not only pushes retailers to look for international expansion, it is seen as a requisite before being able to successfully expand abroad. The reasons include allowing retailers to build from a solid foundation; having a dependable source of cash flow; and being able to divert management time to other activities. The third push factor is the reduced growth in food spending. In many developed markets there is a slowing down in the growth of food retail spend, primarily as a result of food retail's decreasing share of the 'consumer wallet'; lower inflation (or even deflation) in food retail; and slower population growth (or even decline). The last push factor can best be described as the fear factor and can be seen to work in two ways. Firstly, it works proactively where retailers need to be first in new markets for fear of missing out on the best locations and acquisition opportunities which would give them an advantage over competitors. Secondly, the fear factor works reactively. In order to remain competitive retailers react to situations from a fear of what may occur if they do not. For example the proposed acquisition of Asda by Kingfisher in 1999 forced Wal-Mart to react and make a larger (winning) bid. This itself led to a number of reactions, for example the Carrefour and Promods merger. It is likely that as the stakes get higher so the fear of being left behind will also grow - especially amongst the smaller to middle-sized retailers who may feel pressurised into acting "before it's too late". The various benefits of global retailing increasingly exert a strong pull. The first of these pull factors, to date seen by retailers as one of the major benefits, is the importance of scale. Retailing is a scale business and with increasing size the ability to achieve improved economies of scale also increases. This provides retailers with a cost advantage that can be used either to invest in price, and thus provide a clear competitive advantage, or to improve the level of profits in order to satisfy shareholder expectations. Economies of scale can be achieved in a number of areas within a retail business, and include the cost of goods for re-sale; the cost of goods not for re-sale; the cost of services; development costs; and management resources. The largest scale retailers have sufficient buying power to negotiate lower cost prices. However, at this stage the ability to leverage global scale across the entire product range is limited. Some product areas lend themselves more readily to global purchasing, such as non-food and ambient products. However, local brands and perishables still need to be sourced locally and so provide a limit on the advantages of scale. In these instances local scale is arguably more important than global scale. Over time as more suppliers become organised to service global customers, global scale will become increasingly important. The second pull factor is the size of the prize. The attraction of the global market is that it offers significantly more potential in comparison to any single market. Global consumer spending is estimated in excess of $18 trillion, and global retail spending in excess of $7 trillion. Within this total retail spend, the global grocery market is estimated at over $3.6 trillion and the food retail market is estimated at over $2.8 trillion. Therefore, even for a retailer the size of Wal-Mart, which operates in one of the world's largest markets, the additional potential represented by the

global market is considerable. Indeed, Wal-Mart's total global retail turnover represents just 5% of the estimated global grocery market. In addition, long term global potential is still increasing in a large number of emerging and undeveloped markets. In China alone Wal-Mart and Carrefour believe they can double in size over time. In India and Africa there are huge populations yet without a significant level of organised retail. Over time, albeit a long period in some instances, the potential for food retail will be extensively greater than the current global market. The third and last pull factor can best be described as the virtuous circle, pulling many retailers into pursuing a global strategy. The benefits of transferring best practice and increased trading levels are realised in greater cash flow and enhanced profitability. This in turn leads to further improvements in market value and the ability to make acquisitions. The latter half of the 20th Century, in both Europe and North America, has seen the emergence of the supermarket as the dominant grocery retail form. The reasons why supermarkets have come to dominate food retailing are not hard to find. The search for convenience in food shopping and consumption, coupled to car ownership, led to the birth of the supermarket. As incomes rose and shoppers sought both convenience and new tastes and stimulation, supermarkets were able to expand the products offered. The invention of the bar code allowed a store to manage thousands of items and their prices and led to 'just-in-time' store replenishment and the ability to carry tens of thousands of individual items. Computer-operated depots and logistical systems integrated store replenishment with consumer demand in a single electronic system. The superstore was born.

On the Global Retail Stage, little has remained the same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still holds that distinction. Other than Wal-Marts dominance, theres little about todays environment that looks like the mid-1990s. The global economy has changed, consumer demand has shifted, and retailers operating systems today are infused with far more technology than was the case six years ago.

Saturated home markets, fierce competition and restrictive legislation have relentlessly pushed major food retailers into the globalization mode. Since the mid-1990s, numerous governments have opened up their economies as well, to the free markets and foreign investment that has been a plus for many a retailer. However, a more near-term concern, has been the global economic slowdown that has resulted from dramatic cutback in corporate IT and other types of capital spending. Consumers themselves have become much more price sensitive and conservative in their buying, particularly in the more advanced economies.

From an operational point of view, active practitioners have voiced their opinion that retailer concerns in 2003 have turned to deflation, lack of pricing power, global overcapacity, low interest rates, economic stagnation, slump in world tourism and declining consumer confidence. But, even before the global economic slowdown that forced retailers into monitoring costs more effectively, technological advances were a way of life in retail organizations. Technology has become the real enabler for retailers over the last six years. Supply chain innovations for retailers were particularly strong in the second half of the 1990s and have continued into today. With all the emphasis on technology and cost-cutting, a major thrustfinding new markets through globalization efforts. Four years ago, more than half (53 per cent) of the top 200 retailers operated in only one country. Today, only 44 per cent remain single-country merchants. This globalization trend can only intensify in the years ahead. The benefits of increased sales and greater economies of scale are too large to be ignored.

The global retail industry has traveled a long way from a small beginning to an industry where the world wide retail sales alone is valued at $ 7 trillion (Source:2003 Global Retail Report, Deloitte Touche Tohmatsu). The top 200 retailers alone account for 30% of worldwide demand. Retail sales being generally driven by peoples ability (disposable income) and willingness (consumer confidence) to buy, compliments the fact that the money spent on household consumption worldwide increased 68% between 1980 and 2003. The leader has in-disputably been the USA where some two-thirds or $ 6.6 trillions out of the $ 10 trillions American economy is consumer spending. About 40% of that ($ 3 trillions) is spending on discretionary products and services. Retail turnover in the EU is approximately Euros 2000 billion and the sector average growth looks to be following an upward pattern. The Asian economies (excluding Japan) are expected to grow at 6% consistently till 2005-06. Positive forces at work in retail consumer markets today include high rates of personal expenditures, low interest rates, low unemployment and very low inflation. Negative factors that hold retail sales back involve weakening consumer confidence.

FUNCTIONS OF RETAILERS Meaning and Definition of Retailer. The word retailer has been derived from the French word "Retail" which means to sell in small quantities, rather than in gross. A retailer is a person who purchases a variety of goods in small quantities from different wholesalers and sell them to the ultimate consumer. He is the last link in the chain of distribution from the producer to the consumer.

provides personal services to all *provides two-way information *facilitate standardisation and grading

*underteke physical movement and storage of goods *assembles goods from various sources *stock goods for ready supply to buyers *extend credit facility *creat demand by window diaplay etc Retailers perform a number of functions. These are:

The retailer buys a variety of products from the wholesaler or a number of wholesalers. He thus performs two functions like buying of goods and assembling of goods. The retailer performs storing function by stocking the goods for a consumer. He develops personal contact with the consumers and gives them goods on credit. He bears the risks in connection with Physical Spoilage of goods and fall in price. Besides he bears risks on account of fire, theft, deterioration in the quality and spoilage of goods. He resorts to standardization and grading of goods in such a way that these are accepted by the customers. He makes arrangement for delivery of goods and supply valuable market information to both wholesaler and the consumer.

To Customers: 1. He provides ready stock of goods and as such he sells and quantity of goods desired by the customers. 2. He keeps a large variety of goods produced by different producers and thereby ensures a wide variety of choice to the customers. 3. He relives the consumers of maintaining large quantity of goods for future period because he himself holds large stock of goods. 4. He develops personal relationship with the customers by giving them credit. 5. he provides free-home delivery service to the customers. 6. He informs the new product to the customers. 7. he makes arrangement for replacement of goods when he receive complaints. To Wholesaler: 1. He gives valuable market information with regard to taste, fashion and demand for the goods to the wholesaler. 2. The retailer maintains direct contact with the customers and so he relieves the wholesaler with regard to maintenance of direct contact. 3. He helps the wholesaler in getting their goods distributed to the consumer. 4. He is regarded as an important link between the wholesaler and the consumer. 5. He creates demand for the products by displaying the goods to the consumers.

Functions performed by Retailers: Providing an assortment of products and services Breaking bulk Holding Inventory Providing services

SPECIALTY STORES
Specialty stores (British: Speciality shops) are small stores which specialize in a specific range of merchandise and related items. Most stores have an extensive depth of stock in the item that they specialize in and provide high levels of service and expertise. The pricing policy is generally in the medium to high range, depending on factors like the type and exclusivity of merchandise and ownership, that is, whether they are owner operated or a chain operation which has the advantage of bulk purchasing and centralized warehousing system. They differ from department stores and supermarkets which carry a wide range of merchandise. WAREHOUSE CLUB

A warehouse club is a retail store, usually selling a wide variety of merchandise, in which customers are required to buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners. The clubs are able to keep prices low due to the no-frills format of the stores. In addition, customers may be required to pay annual membership fees in order to shop. The concept is similar to the consumers' cooperative supermarkets found in Europe, though using bigger stores and not co-operatively owned. The use of members' prices without cooperative ownership is also sometimes used in bars and casinos. MNC ROLE The world's largest retailer by sales, Wal-Mart Stores Inc and Sunil Mittal's Bharti Enterprises have entered into a joint venture agreement and they are planning to open 10 to 15 cash-andcarry facilities over seven years. The first of the stores, which will sell groceries, consumer appliances and fruits and vegetables to retailers and small businesses, is slated to open in north India by the end of 2008.[14] see also for more Detail Pick/Mller "[4]"</ref>

Carrefour, the worlds second largest retailer by sales, is planning to setup two business entities in the country one for its cash-and-carry business and the other a master franchisee which will lend its banner, technical services and know how to an Indian company for direct-to-consumer retail.[15] The worlds fifth largest retailer by sales, Costco Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to India and waiting for the right opportunity.[16] Opposition to the retailers' plans have argued that livelihoods of small scale and rural vendors would be threatened. However, studies have found that only a limited number of small vendors will be affected and that the benefits of market expansion far outweigh the impact of the new stores.[17] Tesco Plc., plans to set up shop in India with a wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its hypermarket business.(19)