RETAIL FORMATS IN

INDIA An Overview:

Facts about Retail Industry in INDIA:

Retailing in India is one of the pillars of its economy and
accounts for 14 to 15 per cent of its GDP
Fifth largest in the world
Fastest growing industry in the country, expected growth rate
25%-30% annually
Mostly the industry in unorganized due to huge difference in
taste and demands
The industry is getting more popular nowadays and becoming
organized also in terms to serve the needs of customers

Challenges faced by Retail Industry in India:

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
Lack of trained work force
Low skill level for retailing management
Lack of Retailing Courses
Intrinsic complexity of retailing rapid price changes, constant
threat of product obsolescence and low margins

UNORGANIZED:

MOM & POP STORES:

Generally family-owned businesses catering to small sections of

society
Owned and operated by individuals
Range of products are very selective and few in numbers
These stores are known for their high standards of customer service

Peddlers and Hawkers

Hawker: An individual who sells wares by carrying them through the
streets
person's ordinary methods of attracting attention include addressing
the public, using placards, labels, and signs, or displaying merchandise
in a public place
A peddler is defined as a retail dealer who brings goods from place to
place, exhibiting them for sale
he does not have a fixed place of conducting business, but regularly
carries the goods for sale with himself
he or she does not have a fixed place of conducting business, but
regularly carries the goods for sale with himself or herself

Market Traders & Street Traders

A Street market is an outdoor market such as
traditionally held in a market square or in a market
town, and are often held only on particular days of the
week
Very similar markets, or bazaars can also be found in
large enclosed spaces, instead of on a street

ORGANIZED

SPECIALTY STORES:
A typical specialty store gives
attention to a particular category and
provides high level of service to the
customers
For example if a customer visits a
Reebok or Gap store then they find
just Reebok and Gap products in the
respective stores.

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DEPARTMENT STORES:
A retailer of such store carries variety
of categories and has broad
assortment at average price & offer
considerable customer service
For example: Food World in
Bangalore

DISCOUNT STORES:
Offers extensive assortment of
merchandise at affordable and cutrate prices
Normally retailers sell less fashionoriented brands
The service is inadequate
For example: The Loot

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CONVENIENCE STORES:
Is essentially found in residential areas
Provide limited amount of
merchandise at more than average
prices with a speedy checkout
Store is ideal for emergency and
immediate purchases
For Example: Reliance Fresh

HYPERMARKETS:
Provides variety and huge volumes of
exclusive merchandise at low margins
Operating cost is comparatively less
than other retail formats
For Example: Dmart , Big Bazaar,
Trent, Landmark, Star Bazaar

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SUPERMARKETS:
a self service store consisting mainly
of grocery and limited products on
non food items
may adopt a Hi-Lo or an EDLP
strategy for pricing
supermarkets can be anywhere
between 20,000-40,000 square feet
For Example: SPAR supermarket

MALLS:
Has a range of retail shops at a single
outlet
Endow with products, food and
entertainment under a roof
For Example: Inorbit Mall, Ambience
Mall.

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CATEGORY KILLERS
Supplying wide assortment in a single
category for lower prices a retailer can
"kill" that category for other retailers
The products are displayed at the center
of the store and sales person will be
available to address customer queries
and give suggestions when required
For Example: Pai Electronics store in
Bangalore.

E-TAILERS:
Customer can shop and order through
internet and the merchandise are
dropped at the customer's doorstep
Format is ideal for customers who do
not want to travel to retail stores and
are interested in home shopping
For Example: Amazon and Ebay

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VENDING MACHINES:
An automated piece of equipment
wherein customers can drop in the
money in machine and acquire the
products
This system is currently not widely
used in India
For example: Soft drinks vending at
Bangalore Airport

Group Members:
AKSHAY JAIN
BARKHA AGARWAL
CHIRAG SUKHIJA
NIDHI MATHUR

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THANK YOU!!!