Retailingm Report 2 Nd Sem

8/2/2019 Retailingm Report 2 Nd Sem

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A Project Report on Retailing

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[As a partial fulfillment for the requirement in summer project as a part of MBAprogramme]

Submitted To:Prof. Chitral Patel

Submitted By:Parmar Harsh R (2022)

[MBA- SEM-II, Batch: 2011-13]

Hashmukh Goswami College of Management

Vehlal, Ahmedabad


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HASMUKH GOSWAMI COLLEGE OF ENGINEERING

FACULTY OF MANAGEMENT

BONAFIDE CERTIFICATE

Certified that this project report ON RETAILING (ORGANISE V/S

UNORGANISE RETAILING) is the bonafide work ofPARMAR HARSH R who

carried out the project work under my supervision.

SIGNATURE SIGNATURE

Prof. Rekha Thotlani (Name of faculty

who guided you)

Head of the Department, MBA Supervisor


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PREFACEI am lucky that, I got the opportunity for making the project report on

Comparative Study of Organized Retail (D-Mart) and their formats andchallenges to unorganized retails in the current scenario. For this study I

visited the Malls, Hyper Markets and Departmental Stores in Ahmedabad

and Naroda and talk to various unorganized retailers (Kirana stores) to study

the problems defined. This report is written account of what I learnt and

experienced during the survey. I wish, those going through it will not only

find it readable but also get as useful Information. The main limitation of my

experience was that as the above said organized retails industry is reserved

with corporate formalities.


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AcknowledgementI take this opportunity to express my deep gratitude and thanks to all

who have directly or indirectly helped me in my endeavor and without whose

co-operation I cant completed my report.

I am thankful to our College HGCE and its authorities, especially to

respected HOD Prof.Rekha Totalani and Prof. Chitral Patel for guiding me

throughout the Report.


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Executive SummaryRetailing is emerging as a sunrise industry in India and its presently the

largest employer after agriculture. The size of Indian organized retail

industry was Rs 28,000 Crores, which was only 3% of the total retailing

market.

The sunrise of the organised retailers in India creates a major turn in the

retail industry. Top major organised retail players are increasing their market

share day by day. Their main focus is based on FMCG and consumer

durables. With modernization, Indian culture is aping the western dressing

sense and lifestyle and these techniques is promoting by the Retailers and bythis they are generating a remarkable revenue from the Indian consumers.


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CH-1 INTRODUCTION1.1 Retailing

Retailing is the business where an organization directly sells its products andservices to an end consumer and this is for his personal use. By definitionwhenever an organization be it a manufacturing or a whole seller sells directly tothe end consumer it is actually operating in the Retail space.

The retail industry in India is largely unorganized & predominantly consists ofsmall, independent, owner-managed shops. Retailing is INDIAs largest industry interms of contribution to GDP & constitutes 13% of GDP. There are around 5million retail outlets in India. There are also an uncounted number of low cost

kiosks (tea stalls, snacks centre, barber shops, etc) & mobile vendors. Total retailsales area in India was estimated at 328 million sq.mt.in 2001, with an averageselling space of 29.4sq.mt. per outlet. In India the per capita retailing space isabout 2sq. ft, which is quite low compared to that of developed economies.

In 2000, the global management consultancy AT Kearney put retail trade at400,000 crore , which is expected to increase to Rs.800,000 crore by year 2005 an annual increase of 20%. According to the survey, an overwhelming proportionof the Rs.400,000 crore retail market is unorganized. In fact only a Rs20,000 croresegment of market is organized. There is no integrated supply chain management

outlook in Indian traditional retail industry.

Food sales constitute a high proportion of the total retail sales. The share was69.2% in 2006,worth apprx. Rs 7032.2 billion, while non food sales were worthRs.4189.5 billion. However the non-food retailing sector registered faster year-on-year growth than the food sales sector. The trend to market private labels byspecific retail store is catching on in India as it helps to improve margins. Theturnover from private labels by major retail chains was estimated at around Rs1200 million in 2001.

CURRENT SCENARIO OF INDIAN RETAIL: Unorganized market; Rs. 5,83,000 crores. Organized market; Rs. 5,000 crores. 5 x growths in organized retailing between 2005-2010. Over 4000 new modern outlets in last 3 years. The top 3 modern retailers control over 750,000 sq.ft of retail space.


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Growth in organized retailing on par with expectations and projection of thelast 5 years: on course to touch Rs. 35,000 crore or more by 2014-15.

1.2 Retailing in Indiadevelopment of modern retail

anywhere in the world. derivebenefits of scale and efficiency in their system.

three major formats which are largelystandardized, may not work in India.

-Indian, multi-format modern retailing model needsto be developed in India.

develop a model for globalizingretailing.

be the biggest contribution of Indian retailers to the world.

of technology.have legacy systems on

which they have to build their technology platform.-led solutions, India will take a

leap and then ext generation retail technology solutions may well come outof India.

-based retail solutions maywell emerge from Indian retailing.

own systems and benchmarks that

are admired and followed the world over.

Next 3-5 years are tough for retail biggies

grow 45% to $435 billion by 2015.-20% of the total retail market.

-billion by 2017.

Organized retailing in India will need painstaking, often frustrating, effort to chiselout India-ready business models, retail formats and delivery models.

Products,Properties,People andProfitability are going to be huge challenges.


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run-up expenses forgrowth are going to shoot up sharply.

and unreasonably high property prices is adversely affecting the growth of the

sector.

2009, when a large, and probably anoversupply of retail space is expected to come on-stream. By the year 2013, it isexpected that there will be around 500 shopping malls, adding over 250millionsquare feet of retail space.

ail playing out in India currently, where lot of playersare merely'land-grabbing'.

years, half of the new entrants of today will simply die.

and catering to Indian consumer behavior, takinginto account the social diversity in the country will be crucial to the success of newplayers.

New formats in specialty retail, wholesale retail and luxury retail are expected toemerge.

ears will provide the answers to the most crucial questions on thesustainability of modern retailing in India.

No one can stop the growth of modern retail and the consequent impetus toconsumption and development in India.


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1.3 Where is the opportunity?Retailers inspired by the Wal-Mart story of growth in small town America aretempted to focus on smaller towns and villages in India. However, a carefulanalysis of the town strata-wise population, population growth, migration trends

and consumer spend analysis reveals a very different picture for India.

As per our estimates, the share of the 35 towns with a present population of greaterthan 1 million in India's total population would grow much faster than their smallercounterparts, from 10.2 per cent today to reach 14.4 per cent by 2025.

Simultaneously, the share of these towns in the overall retail market would growfrom 21 per cent today to 40 per cent by 2025.Within these top 35 towns, anestimated 70 to 80 per cent of retail trade could be in the organized sector. This issimilar to the experience in China, where in cities like Shanghai and Beijing, theorganised sector accounts for 70 to 80 per cent of overall retail trade in certaincategories. Retailers should therefore focus on the top 37 towns in the next decade,as the opportunity in smaller towns and rural India would be smaller and morefragmented, compared to the larger towns


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Ch-2 Company OverviewD-mart ( Organise Retail Store)Avenue Super Marts Ltd (ASL) owns and operates hypermarkets andsupermarkets by the store name D-Mart. I Visited the D-mart which is situated inBapunagar, Ahmedabad.

D-Mart seeks to provide a one-stop shopping experience for the entire family,meeting all their daily household needs. A wide selection of home utility productsis offered, including foods, toiletries, beauty products, garments, kitchenware, bedand bath linen, home appliances and much more.CultureAt ASL, were strong believers in deriving excellence in customer service throughsystemic training and rigor at work. We value simplicity and humility in ourpeople and strongly believe that integrity and merit is the only route to growthat ASL.

VisionIt is our continuous endeavor to investigate, identify and make available new

products/categories for the customers everyday use and at the best value than

anybody else.

Product offerings

D-Mart offers a wide selections of products in the following categories:

Foods Toiletries and Beauty products Garments Kitchenware Bed and Bath linen Toys & Games Stationery Home Appliances Footwear


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2.1 List of retail companies in india D-Mart Big Bazar Cafe Coffee Day Barista Pantaloon Group Provogue ShoppersStop

Arvind Brands Life Style Group McDonalds Titan Tanishq Aditya Birla Retail Limited M-mart ITC LtdLRBD Kalanjali Arts & Crafts Kewal Kiran Clothing Pvt.

Ltd.


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2.2 Types Of retailersThe retail sector in India can be divided into two major categories:

1) Organized2) Unorganized


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1. Supermarkets:A supermarket, also called a grocery store is a self-service store offering a widevariety offood and household merchandise, organized into departments. It is largerin size and has a wider selection than a traditional grocery store and it is smallerthan a hypermarket or superstore.

2. Hypermarkets:
http://en.wikipedia.org/wiki/Self-servicehttp://en.wikipedia.org/wiki/Retailing#Retail_typeshttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Superstorehttp://en.wikipedia.org/wiki/Superstorehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Retailing#Retail_typeshttp://en.wikipedia.org/wiki/Self-service


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A hypermarket is a superstore which combines a supermarket and a departmentstore. The result is a very large retail facility which carries an enormous range ofproducts under one roof, including full lines ofgroceries and general merchandise.In theory, hypermarkets allow customers to satisfy all their routine weeklyshopping needs in one trip.

3. Department Stores:A department store is a retail establishment which specializes in satisfying a widerange of the consumer's personal and residential durable goods product needs;and at the same time offering the consumer a choice multiple merchandise lines, atvariable price points, in all product categories. Department stores usually sellproducts including apparel, furniture, appliances, electronics, and additionally selectother lines of products such as paint,hardware, toiletries, cosmetics, photographicequipment, jewelery, toys, and sporting goods. Certain department stores arefurther classified as discount department stores. Discount department stores

commonly have central customer checkout areas, generally in the front area of thestore. Department stores are usually part of a retail chain of many stores situatedaround a country or several countries.

4. Shopping malls:A shopping mall or shopping centre is a building or set of buildings which containretail units, with interconnecting walkways enabling visitors to easily walk fromunit to unit.

5. Specialty Chains:

A Specialty Chains is numbers stores which are specialized in a specific range ofmerchandise and related items. Most stores have an extensive width and depth ofstock in the item that they specify in and provide high levels of service andexpertise. They differ from department stores and supermarkets which carry a widerange of merchandise.

CH-3 theorical background3.1 Small local stores/ Unorganized Store

The small local stores have dominated Indian retailing over the decades and are

present in every village and local community, addressing the needs of the

population in the area and being the point of contact with the consumer. The
http://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Merchandise#Product_linehttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Appliancehttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Sporting_goodshttp://en.wikipedia.org/wiki/Checkouthttp://en.wikipedia.org/wiki/Retail_chainhttp://en.wikipedia.org/wiki/Retail_unithttp://en.wikipedia.org/wiki/Walkwayhttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Walkwayhttp://en.wikipedia.org/wiki/Retail_unithttp://en.wikipedia.org/wiki/Retail_chainhttp://en.wikipedia.org/wiki/Checkouthttp://en.wikipedia.org/wiki/Sporting_goodshttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Appliancehttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Merchandise#Product_linehttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Big-box_store


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distribution networks of brands extend right upto this point to stay in touch with

customer needs and preferences.

India like most other countries has a very large network of local stores. The retail

industry in rural India has typically two forms: "Haats" and "Melas". You will find

these in almost every village and locality. A lot of them function as Paan and

cigarette outlets with tea and coffee sometimes also offered. Besides this these

stores stock and offer small eats and soft drinks including biscuits, soft drinks,

chocolate, sweets, bread and baked products. Many of them also sell fruits like

bananas and a range of toiletries and cosmetics like soaps, shampoos, toothpastes

and some creams. These small stores cater to the needs of their own localpopulation and travelers who stop by for a smoke or a snack. A little larger format

is the neighborhood grocery store that focuses on grains, foods, snacks and

toiletries besides other home essentials.


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This network is very large and spread all across India. It is not really a network

since each store is individual or family owned and has no connection with the

other. It does however represent a network since large consumer product

companies like Unilever, Procter & Gamble, Colgate-Palmolive, Cadbury, Coca

Cola, Pepsi and ITC uses them as their final point of retail to the consumer.

While it is commonly believed that the new retail chains will drive these small

stores out of business, reality points the other way and it is likely that these stores

will continue even in the next two decades of growth.

These small stores are very personal and have strong relationships with the local

population. They are points of news and connection. They offer credit to the local

population and help out in times of crisis. They also have a very goodunderstanding of requirements of the local population and have very low overheads

enabling them to offer the best price for their products.

3.2 Comparison between D-Mart &Unorganized (Kirana stores) Retailstores

When organized retail first started India, there was a huge debate on survival of

kirana stores at one end and success of supermarkets on the other. Both had

fierce supporters and politicians chipped in with their bit. Foreign direct


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investment in multi brand retail is not permitted but Indian retailers have opened

organized retail outlets across the nation. Reliance, Big Bazaar are popular stores

while some like Subhiksha, Spencer sprang up only to shut later. Kirana stores

have survived this stage. Despite undoubted benefits of shopping at a

supermarket,

kirana stores have several advantages:

The biggest being location amid a residential area.

Its easy to stroll across and buy ones needs with no parking worries. Those not wanting to take this effort can simply order on phone and ask for

home delivery. They offer credit facility as well.

Usually, the shop location does not change for many years and storekeeperknows almost everyone in the family, their likes and dislikes.

When making a monthly shopping list, he may remind us of anything thatmay be missed out! Such small personal touches can make a big difference

in customer preferences of where to shop. Exchange of goods is quite easy

and billing is fast.

Disadvantages of kirana stores is that,

However accurate weights may be an issue as are conditions ofstorage.

May be price charge by them is high


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Organized Retail store ( D-mart)

An organized retail outlet allows users to comfortably browse different

sections and compare size, price of products. At times, due to the scale of their

tie-ups and sourcing, products are offered at less than the MRP. Interesting

promotional schemes and store loyalty clubs entice people to repeatedly shop

there. Often one can buy several categories of products under one roof that may

not be possible at a kirana. Usually there is no one around (other than for

cosmetics) to answer specific queries about a product particularly new ones.

Some products are difficult to find in a supermarket like shampoo sachets or

drain cleaning powders or small quantity of boiled-sugar sweets.

People increasingly balance their purchases between these two formats. As

petrol prices continue rising, they may be averse to travelling to a

supermarket/hypermarket and prefer to buy from the local kirana instead.

Top global majors like Tesco, Wal Mart and CarreFour said to be waiting to


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open their independent stores once the government policy changes. All vying to

grab attention of FMCG consumers! The market is huge and there maybe

something for everyone.

Ch-4 Objectives of the studyPHASE-IDetermine various shops and classify them into the Retail formats.Objective:Know the retail formats and what the differences between those categories are.

PHASE-II


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Analyze the threats and challenges to unorganized retailers in the current scenarioof competitive market.Objective:Understand the sector of unorganized retails, find out the challenges faced by themand determine what are the measures taken by these retailers to survive in thiscurrent scenario.

Ch-5 conclusion The target audience for both the organized and unorganized retail formats

remains relatively the same. When shopping in malls, people value the

experience related to the trip the most and return most frequently for the


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same. Besides, while enjoying the experience they seem to buy high ticket

and items of conspicuous consumption most frequently.

Organized retail of late has seen a tremendous boom and is attracting morepeople to the malls.

Ch-6 limitations of the project

1. The geographical scope of the study is limited to Ahmedabad city.


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2. The consumers attitude may change in future due to change in their standard of

living.


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Ch-7 recommendation We recommend to D-Mart expand their business to Gujarat in short term

and on national level in long time.

The staff behavior is good in D-mart but still they have to improve it. The D-mart have to Manage the goods in a proper Stands because some

goods are not properly arranged.


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Ch-8 bibliographyI used the following websites for my report

http://www.Google.com

http://www.retailindustry.com http://www.D-mart.com

BOOK Marketing Management

Author-Philips kotler
http://www.google.com/http://www.retailindustry.com/http://www.d-mart.com/http://www.d-mart.com/http://www.retailindustry.com/http://www.google.com/

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Retailingm Report 2 Nd Sem