rahul_parab2006
Rahul Parab
For the third year in a row India has topped AT Kearney's annual Global Retail Development Index (GRDI) as the most attractive market for retail investment. Hailed as a sunrise sector, retail in India is estimated to grow from the US$ 330 billion in 2007 to $637 billion by 2015. Surprisingly even though India has one of the largest number of retail outlets in the world, organised retail accounts for only 4 per cent of the total market, providing huge growth potential in this segment. According to Technopak Advisors, the Indian Retail sector is set to grow by over 9 % p.a over the next 10 years and rapid development is expected with 25% of the market coming into the organized category by 2018.
Opportunities - Some of the jobs in this sector include the following:
Sales Executives: Comprise almost 80% of the workforce in the sector. They deal directly with the customers and help them make choices. These are entry-level jobs and graduates or even high-school degree holders can apply. Salaries at this level can range anything between Rs.70,000-Rs.2 lakhs.
Store Manager (SM) / Assistant Store Managers (ASM) : Store managers are responsible for the entire store and take care of the day-to-day operations. They also give targets to the executives. Graduates with two years of work experience or MBAs have an edge. For ASMs the salary could range between Rs.2.5-Rs.8 lakhs while for a Store Manager it could be anything between Rs.4-Rs.15 lakhs.
Merchandise Planners: Merchandise planners develop the financial plans and allocate the merchandise to the stores. A merchandise planner has to keep records of the inventory, price plans and marketing strategies. He has to know the pulse of the store. An MBA with 2-3 years work experience is preferred. Merchandise Heads can earn anything in the Rs 12 lakh-Rs 25 lakh range.
According to Lakhani operation heads in a retail Company can earn salaries that are Rs. 60 lakh plus. “This is a booming industry and some of the salaries that have been paid to senior management are jaw-dropping. The good thing is that since it’s a young and vibrant sector the career growth also happens fast.”
Top Employers -
Some of the top employers in the retail sector are the Raheja Group, Relaince Retail, Tata Trent, Future Group, RPG Retail, and Ebony Retail Holdings.
Future -
The areas where retail will see a huge spurt include the luxury segment, which is estimated, slated to become US$ 30 billion by 2015, according to a survey done by AT Kearney. One of the most important segments that will emerge in the next few years is the rural sector. According to a study by CII and YES BANK the rural retail market is estimated to cross US$ 45.32 billion mark by 2010.
With the government allowing 51 per cent as FDI in this sector a whole lot of international retailers are also set to enter the market. The world's largest retailer, Wal-Mart, has tied-up with Sunil Mittal's Bharti Enterprises to enter Indian retail market. Starbucks' the world's leading coffee chain, is tying-up with the country's leading multiplex operator PVR Limited. That apart Carrefour, Boots and others are also expected to come in.
A study by the Associated Chambers of Commerce and Industry of India (Assocham) predicts that the retail sector will top $365 billion in 2008 and large players like Reliance Industries, Plaza, DLF and the Aditya Birla Group, will embark on a major expansion drive. The study estimates that in 2008, the investment in organised retail would be in the region of $25-28 billion.
With so much action in the sector it is natural that there is a huge scope for employment opportunities. According to analysis by Ma Foi Management Consultants Ltd this sector will generate employment for more than 2.5 million people by the year 2010. According to Ripti Lakhani, HR Consultant, who has worked with one of India’s largest retail companies, this is a people’s business and the candidates across all levels needs to be dynamic, have an ability to multi-task and be equipped with great communication skills. Lakhani says, that the backbone of the sector is the operations and supply chain management jobs though there are the regular sales, marketing, finance roles as well. “While MBAs are being recruited these days the trend all this while has been to recruit people from the FMCG and hospitality sector,” she adds.