Retail Is Detail - The New Year Buzz in Retail Sector
Wal-Mart, the largest retailer in US is also the largest employer in US. The retail and marketing cohesively are turning into a giant where from the returns are enormous. Wal-Mart has an annual turnover of $284 billion. US are one of the biggest to be considered as far as retail is considered, & the stats alone prove it. Almost 20 million people get employed every year. Talking about India and its roots in the retail; The estimated annual retail sales accounts for about $ 6 billion and is expected to reach $ 17 billion dollar mark by the year 2010, according to a study done by the Associated Chambers of Commerce & Industry (ASSOCHAM). According to some analysts, by the year 2010, the retail sector in India has the potential to reach $ 270-280 billon dollar mark.
If you see the Indian scenario, it is very much clear that the retail sector is dominated by traditional and small players in the market along with the panwalas. But if go to see the potential that India has is enormous, as per a survey India ranks 5th among the top 30 countries where lies untapped potential. India can for sure tap the potential and hence put in some grave steps to bring self in either the top position or to stabilize the same in the top few. There are several direct and indirect benefits that India can achieve which will not only embrace India globally but will also enhance the opportunities for India. The retail sector includes the organized and unorganized sectors. Organized retail in India is expected to grow 25-30 per cent yearly and is expected to increase from Rs35, 000 crore in 2004-05 to Rs109, 000 crore ($24 billion) by 2010. As per certain parameters there are certain key players in the market which contribute in lots. Some of which are as follows:
AV Birla Group
Trent
Landmark Group
K Raheja Corp Group
Reliance
Pantaloon
But if you see the global scenario in the retail world
Percentage of Organized Retail
USA - 85%
Taiwan - 81%
Malaysia - 55%
Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China - 20%
India - 3%
The estimates and predictions say that there will be more than US$400 billion boom in the retail world; well if we go to see the current scenario the retail updates for the year 2009 were US$394 billion. The generation of indirect employment was more than 2.5 billion in the year 2010. The benefits that it has provided to all are:
Availability of higher quality products and services
Increase/improvement and stability in the standard of living
Increase in the exports
Increase in the investment in the SCM
Emergence of a strong retail sector
Up-gradation of the small scale industries
Retail Formats in India[/b][/b]
Mom & Pop stores
Departmental Stores
Convenience Stores
Shopping malls
E-trailers
Discount stores
Vending
Category killers
Specialty Stores
Although the good times faced by retail industry or the outcomes that accrue from the retail spreading in the country are enormous. But it very clear when we expand selves into new sectors challenges or hurdles are bound to pop up. Hence let’s feature some of the challenge those are faced by the retail industry
Skills required to successfully running retail is somewhere lacking behind
Limited availability of trained manpower
Rising real estate costs
Constraints about the retail study options
FDI restrictions
SWOT OF THE RETAIL SECTOR[/b][/b]
Strength[/b]
Demographic favor
Rising disposable income
Increase in number of people in earner
Urbanization
Shopping convenience
Low labor cost of skilled ones
Changing consumer habits and lifestyles
Plastic card revolution
Greater availability of quality retail space
Weakness[/b]
Policy related issues
lack of industry status for retail.
Numerous licence ,permits and registration requirement.
Farmer and retailer unfriendly APMC act
Limited consumer insight -lack of detailed region specific customer data
Less data on spending pattern
Inadequate human resources
Lack of trained personnel at all level
Stringent employment and industry laws
Fragment approach to human resources
Taxation hurdle
Inconsistent octori and entry tax structure.
Vat and multiple taxation issues
Large grey market presence
Underdeveloped supply chain -underdeveloped logistics infrastructure
Absence of national cold chain networks
Lack of national distribution networks and hubs
Lack of adequate utilities - lack of basic infrastructure like power, transport and communication creates difficulty in sustaining retail operations across the large geographical spread of country.
OPPORTUNITIEs
Potential for investment.
Locational advantage.
Sectors with high growth potential.
Fastest growing formats.
Rural retail.
Wholesale trading.
Falling real estate cost
E-retailing
Retail franchising
THREATS
Political issues.
Social issues.
Inflation.
Nostalgia
Lack of differentiation among the malls that are coming.
Poor inventory turns and stock availability measures.
The trends to follow in the future:
The Indian Organized retail sector will grow up to 10% of total retailing by 2010.
No one single format can be assumed as there is a huge difference in cultures regionally.
The most encouraging format now would be the hypermarts
The hypermart format would be further encouraged with the entry of the TNCs.
Tips that can help
It's The Customer Stupid.
"Doctor" Your Customers.
Delight the Customer.
You never have to make up for a good start.
Train Your Supervisors.
Under-promise and over-deliver.
Your first obligation is to the customer.
You have to make a difference.
Your biggest business challenge is your competition.
Follow Through On Sales Promises.
Doing it right costs less than doing it over.
Don't Be A Demotivator.
Keep the flame alive.
You Can't Listen With Your Mouth Open.
Anyone can steer the ship in calm waters.
It is easier to save a dollar than to earn a dollar.
Appearance Does Matter.
Get your people involved.
Fix The Problem, Not The Blame.
Actively Listen.
The above tips can help you improve you if you are engaged in the retail.
Wal-Mart, the largest retailer in US is also the largest employer in US. The retail and marketing cohesively are turning into a giant where from the returns are enormous. Wal-Mart has an annual turnover of $284 billion. US are one of the biggest to be considered as far as retail is considered, & the stats alone prove it. Almost 20 million people get employed every year. Talking about India and its roots in the retail; The estimated annual retail sales accounts for about $ 6 billion and is expected to reach $ 17 billion dollar mark by the year 2010, according to a study done by the Associated Chambers of Commerce & Industry (ASSOCHAM). According to some analysts, by the year 2010, the retail sector in India has the potential to reach $ 270-280 billon dollar mark.
If you see the Indian scenario, it is very much clear that the retail sector is dominated by traditional and small players in the market along with the panwalas. But if go to see the potential that India has is enormous, as per a survey India ranks 5th among the top 30 countries where lies untapped potential. India can for sure tap the potential and hence put in some grave steps to bring self in either the top position or to stabilize the same in the top few. There are several direct and indirect benefits that India can achieve which will not only embrace India globally but will also enhance the opportunities for India. The retail sector includes the organized and unorganized sectors. Organized retail in India is expected to grow 25-30 per cent yearly and is expected to increase from Rs35, 000 crore in 2004-05 to Rs109, 000 crore ($24 billion) by 2010. As per certain parameters there are certain key players in the market which contribute in lots. Some of which are as follows:
AV Birla Group
Trent
Landmark Group
K Raheja Corp Group
Reliance
Pantaloon
But if you see the global scenario in the retail world
Percentage of Organized Retail
USA - 85%
Taiwan - 81%
Malaysia - 55%
Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China - 20%
India - 3%
The estimates and predictions say that there will be more than US$400 billion boom in the retail world; well if we go to see the current scenario the retail updates for the year 2009 were US$394 billion. The generation of indirect employment was more than 2.5 billion in the year 2010. The benefits that it has provided to all are:
Availability of higher quality products and services
Increase/improvement and stability in the standard of living
Increase in the exports
Increase in the investment in the SCM
Emergence of a strong retail sector
Up-gradation of the small scale industries
Retail Formats in India[/b][/b]
Mom & Pop stores
Departmental Stores
Convenience Stores
Shopping malls
E-trailers
Discount stores
Vending
Category killers
Specialty Stores
Although the good times faced by retail industry or the outcomes that accrue from the retail spreading in the country are enormous. But it very clear when we expand selves into new sectors challenges or hurdles are bound to pop up. Hence let’s feature some of the challenge those are faced by the retail industry
Skills required to successfully running retail is somewhere lacking behind
Limited availability of trained manpower
Rising real estate costs
Constraints about the retail study options
FDI restrictions
SWOT OF THE RETAIL SECTOR[/b][/b]
Strength[/b]
Demographic favor
Rising disposable income
Increase in number of people in earner
Urbanization
Shopping convenience
Low labor cost of skilled ones
Changing consumer habits and lifestyles
Plastic card revolution
Greater availability of quality retail space
Weakness[/b]
Policy related issues
lack of industry status for retail.
Numerous licence ,permits and registration requirement.
Farmer and retailer unfriendly APMC act
Limited consumer insight -lack of detailed region specific customer data
Less data on spending pattern
Inadequate human resources
Lack of trained personnel at all level
Stringent employment and industry laws
Fragment approach to human resources
Taxation hurdle
Inconsistent octori and entry tax structure.
Vat and multiple taxation issues
Large grey market presence
Underdeveloped supply chain -underdeveloped logistics infrastructure
Absence of national cold chain networks
Lack of national distribution networks and hubs
Lack of adequate utilities - lack of basic infrastructure like power, transport and communication creates difficulty in sustaining retail operations across the large geographical spread of country.
OPPORTUNITIEs
Potential for investment.
Locational advantage.
Sectors with high growth potential.
Fastest growing formats.
Rural retail.
Wholesale trading.
Falling real estate cost
E-retailing
Retail franchising
THREATS
Political issues.
Social issues.
Inflation.
Nostalgia
Lack of differentiation among the malls that are coming.
Poor inventory turns and stock availability measures.
The trends to follow in the future:
The Indian Organized retail sector will grow up to 10% of total retailing by 2010.
No one single format can be assumed as there is a huge difference in cultures regionally.
The most encouraging format now would be the hypermarts
The hypermart format would be further encouraged with the entry of the TNCs.
Tips that can help
It's The Customer Stupid.
"Doctor" Your Customers.
Delight the Customer.
You never have to make up for a good start.
Train Your Supervisors.
Under-promise and over-deliver.
Your first obligation is to the customer.
You have to make a difference.
Your biggest business challenge is your competition.
Follow Through On Sales Promises.
Doing it right costs less than doing it over.
Don't Be A Demotivator.
Keep the flame alive.
You Can't Listen With Your Mouth Open.
Anyone can steer the ship in calm waters.
It is easier to save a dollar than to earn a dollar.
Appearance Does Matter.
Get your people involved.
Fix The Problem, Not The Blame.
Actively Listen.
The above tips can help you improve you if you are engaged in the retail.