Description
Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit.
Organized Retail
1. 2. Started somewhere in mid 90s in India Early entrants - Shopper’s stop – Department store - Bennett Coleman Group (TOI) -Planet M chain of audio & home video - RPG group- Music world chain of audio & home video stores - Crossword & Landmark- books, stationery, gifts, greeting cards, audio & home video - Big Bazaar-Various products 3. Contributes 5-7 % of total retail industry size by value 4. 51% FDI allowed in single brand retail 5. 100 % FDI allowed in cash and carry stores format 6. FDI in multi brand retail not allowed (except for back-end operations)
Organized Retail-Teams
1. 2. 3. 4. 5. 6. Vendor Management Supply chain management Visual Merchandising Marketing, promotions and advertising Operations Franchisee management
Examples of Organised retail stores
FMCG Big Bazaar More Reliance Fresh D-Mart Hypercity Books,Music,Movies,Stationery,Toys and Games Crossword Landmark Music World Planet M Reliance Time out
Jewellery,Watches,Lifestyle Accessories Shopper’s stop West side Lifestyle Electronics,Mobiles,Home Appliances Croma E-Zone Vijay Sales (Mumbai) Mobile Store Planet M International Chains Walmart K-Mart Carrefour Hamleys (toys and games) Virgin (Music,videos and computer games)
Organized Retail-Organization structure
CEO
Head/VPBusiness Head Visual Merchandising
Head /VPMarketing
Head/VPOperations
HeadFranchisee Development
Head- LSCM
Category Head
Category Head
GM
GM
GM
GM
GM
Merchandiser
Merchandiser
Organised consumer browses at his leisure Helps consumer compare brands to make better buying decision
Mom & pop stores NA NA
Better shopping ambience Neatly arranged products Does not sell spurious products
Not just shopping but entertainment High cost of operation Varied payment options avlb No Credit avlb
NA NA May sell spurious products
NA Low cost of operation NA Gives credit
Organised Not feasible to visit store for small qty or when product is reqd on urgent basis Needs a minimum catchment area with certain population to be feasible Home delivery for single unit not given Not feasible in certain most urban and rural areas Computerised systems make it easier to generate accurate sales/inventory reports Promotional activity and sampling activity poss
Mom & pop stores Feasible to visit even for single unit or when product is reqd on urgent basis Feasible to open even in a locality with thin population Home delivery for single unit available Will always exist in semi-urban and rural India NA Not poss in majority of cases
May better margins than mom & pop stores for May get less margins than organised retail bigger volume orders stores Joint promotional activity saves marketing/advt. costs Long queue during peak time results in consumer dissonance Exclusive launch of new products poss NA NA NA
doc_374648006.pptx
Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit.
Organized Retail
1. 2. Started somewhere in mid 90s in India Early entrants - Shopper’s stop – Department store - Bennett Coleman Group (TOI) -Planet M chain of audio & home video - RPG group- Music world chain of audio & home video stores - Crossword & Landmark- books, stationery, gifts, greeting cards, audio & home video - Big Bazaar-Various products 3. Contributes 5-7 % of total retail industry size by value 4. 51% FDI allowed in single brand retail 5. 100 % FDI allowed in cash and carry stores format 6. FDI in multi brand retail not allowed (except for back-end operations)
Organized Retail-Teams
1. 2. 3. 4. 5. 6. Vendor Management Supply chain management Visual Merchandising Marketing, promotions and advertising Operations Franchisee management
Examples of Organised retail stores
FMCG Big Bazaar More Reliance Fresh D-Mart Hypercity Books,Music,Movies,Stationery,Toys and Games Crossword Landmark Music World Planet M Reliance Time out
Jewellery,Watches,Lifestyle Accessories Shopper’s stop West side Lifestyle Electronics,Mobiles,Home Appliances Croma E-Zone Vijay Sales (Mumbai) Mobile Store Planet M International Chains Walmart K-Mart Carrefour Hamleys (toys and games) Virgin (Music,videos and computer games)
Organized Retail-Organization structure
CEO
Head/VPBusiness Head Visual Merchandising
Head /VPMarketing
Head/VPOperations
HeadFranchisee Development
Head- LSCM
Category Head
Category Head
GM
GM
GM
GM
GM
Merchandiser
Merchandiser
Organised consumer browses at his leisure Helps consumer compare brands to make better buying decision
Mom & pop stores NA NA
Better shopping ambience Neatly arranged products Does not sell spurious products
Not just shopping but entertainment High cost of operation Varied payment options avlb No Credit avlb
NA NA May sell spurious products
NA Low cost of operation NA Gives credit
Organised Not feasible to visit store for small qty or when product is reqd on urgent basis Needs a minimum catchment area with certain population to be feasible Home delivery for single unit not given Not feasible in certain most urban and rural areas Computerised systems make it easier to generate accurate sales/inventory reports Promotional activity and sampling activity poss
Mom & pop stores Feasible to visit even for single unit or when product is reqd on urgent basis Feasible to open even in a locality with thin population Home delivery for single unit available Will always exist in semi-urban and rural India NA Not poss in majority of cases
May better margins than mom & pop stores for May get less margins than organised retail bigger volume orders stores Joint promotional activity saves marketing/advt. costs Long queue during peak time results in consumer dissonance Exclusive launch of new products poss NA NA NA
doc_374648006.pptx