Retail Formats in India.pptx

Retail formats,retail sector in India,
learn about types of retail formats.

1. Retail formats in India Presented by- Ashok Bannada (pgs22agr8923) Manjunath Gouda S Patil (pgs22agr8925)

2. INTRODUCTION India is growing at a great pace and the retail sector is also developing with it. Corporate are entering into retail sector and are adopting various retail formats for their business which are best suited to them. India has a diverse retail landscape with various formats catering to the needs and preferences of different consumer segments .

3. What is retail ? Retail is the sale of goods or services from a business directly to a consumer for their own use. It can include physical stores, online stores, and mobile stores. Retailers range from large department stores to small, independent businesses. Retail refers to the process of selling goods or services directly to consumers for personal use or consumption. It involves the sale of products through various channels, including physical stores, online platforms, and other means of distribution. Retailers act as intermediaries between manufacturers or wholesalers and end consumers, offering a range of products and services to meet consumer demands. Retail is a vital sector in the economy, contributing to employment generation, economic growth, and consumer spending. It plays a crucial role in connecting producers and consumers, facilitating the exchange of goods and services and fulfilling consumer needs. Retailing : All business activities concerned with the sale of products to the ultimate users of those product.

4. Key aspects of retail include: Product Assortment Customer Experience Pricing and Promotion Channels and Formats Supply Chain Management Consumer Trends and Market Insights

5. RETAIL IN INDIA Retail in India plays a significant role in the country's economy and is a key driver of employment and consumption. Here are some key points about the retail industry in India: Size and Growth : The Indian retail market is one of the largest in the world, with a size of over $1.1 trillion in 2021. It has been growing steadily, driven by factors such as rising disposable incomes, urbanization, and a growing middle class. Shift to Modern Formats : There has been a gradual shift from traditional retail formats to modern formats such as supermarkets, hypermarkets, and malls. This shift is driven by changing consumer preferences, increased urbanization, and the entry of large retail chains. However, traditional mom-and-pop stores still hold a strong presence, particularly in rural areas.

6. E-commerce Boom : The rise of e-commerce has transformed the retail landscape in India. Online shopping has gained immense popularity, driven by factors such as convenience, discounts, and a wide range of products. Major e-commerce players like Amazon and Flipkart have made significant investments in India and compete with traditional retailers. Government Initiatives : The Indian government has introduced several initiatives to promote the retail sector and attract foreign investments. The implementation of Goods and Services Tax (GST) has streamlined the tax structure, easing business operations. The "Make in India" campaign and the allowance of 100% foreign direct investment (FDI) in single-brand retail and e-commerce have also encouraged retail growth. Regional Variations : India is a diverse country, and retail preferences vary across regions. Factors such as language, culture, and local preferences influence retail formats and product offerings. Retailers often customize their strategies to cater to the specific needs and tastes of different regions. Challenges : The retail sector in India also faces some challenges. These include complex regulations, infrastructure gaps, fragmented supply chains, and the need for skilled manpower. Additionally, competition from e-commerce, rising rental costs, and changing consumer behavior pose challenges to traditional brick-and-mortar retailers.

7. Despite challenges, the Indian retail sector offers immense opportunities for growth and innovation. The industry continues to evolve, driven by technology adoption, changing consumer expectations, and government support, making it an exciting and dynamic market for retailers and consumers alike. We can divide Indian retail market in two forms which are mentioned below: Store Retail Format Non Store Format

8. Store Retailing Mom-and-pop stores • Small, family-owned retail stores that serve local communities. These stores are typically found in residential areas and offer a limited range of products, including groceries, snacks, toiletries, and other daily essentials. Generally family-owned businesses which are individually run.

9. Chain-Store   A type of retail organization that is composed of more than one retail store, and it is owned and operated by a single management company. It is an outlet that is characterized by several locations that share a brand with centralized management along with standard business practices.

10. Department stores These are the general merchandise retailers offering various kinds of quality products and services. A departmentalized retail outlet, often large, offering a wide variety of products and generally providing a full rang of customer services. Large retail stores that offer a wide range of products across multiple categories, including clothing, accessories, home furnishings, electronics, and more. E.g. Shopper Stop, LifeStyle, Westside

11. Malls These are the largest form of retail formats. They provide an ideal shopping experience by providing a mix of all kinds of products and services, food and entertainment under one roof. Shopping malls have become increasingly popular in India, especially in urban areas. They house a mix of retail stores, entertainment options (such as multiplex cinemas), food courts, and sometimes even residential or office spaces. Examples are Wave Mall, LULU Hyper Market, ORION MALL etc.

12. Specialty Stores The retail chains, which deal in specific categories and provide deep assortment in them are specialty stores. Examples are Crossword, Apollo Pharmacy.

13. Discount stores A discount store is a retailer that sells merchandise at a price level that is lower than 'typical high-street stores’. Discount Stores uses an everyday low pricing policy, where prices remain constantly low, rather than a high-low pricing policy where prices only drop at promotion times.

14. FACTORY OUTLET They provide discount on the MRP items. Factory outlet retailers offer customers a range of seconds- quality and/or previous season's goods. Factory outlets gives manufacturers and retailers an opportunity to sell off unwanted merchandise without damaging the image of the main product or retail brand, It allows accessibility to customers who might not normally be able to afford the brands

15. Hypermarkets - SUPERMARKETS Large-format stores that combine a supermarket and a department store. They offer a wide variety of products, including groceries, household items, apparel, electronics, and more. These are generally large self-service outlets, offering a variety of categories with deep assortments. Example: Big Bazaar, Reliance Market Supermarkets : Self-service stores that primarily focus on selling groceries, fresh produce, packaged food items, and household essentials. Examples include D-Mart, BigBasket , and Spencer's.

16. Convenience stores They are comparatively smaller stores located near residential areas. Convenience stores are, in essence, small supermarkets. They have rapidly developed as a major threat to their larger cousins. These stores carry a carefully selected variety of high-turnover consumer products Reliance Fresh,

17. Catalog showroom A gerneral mass merchandise outlet where customers select goods from a catalog and store employees retrieve the selected items from storage.

18. Non Store Retailing Kiosks, Carts and Vending Machines • Brands like Coca Cola, Kwality Walls, Mother Dairy etc.

19. NON-STORE RETAILING Direct Selling and Multi-Level Marketing (Personal Retailing) Under Personal Retailing sellers not only earn commission on sales, but also on the people they persuade to join the organization Brands like AquaGaurd, Amway, AVON, Tupper Ware Tele-Marketing Product offerings are made by a personal telephone call from a seller to a consumer. The telephone is a common method of consumer response to non-store retail offerings and so with call centers playing an increasingly major part in many retail transactions. Home Shop 18 Online Retailing / E-Commerce companies that sell on the Internet are retailers . e-tailers : e-commerce firms with retailing operations on the Internet. One of the fastest emerging area Brands like Flipkart, Amazon, Snapdeal Social Media Various luxury brands are using Facebook, Instagram to sell the products

20. Service Based RETAIL Service-based retail is driven by customer experiences, expertise, and the ability to meet individual needs. These businesses often rely on skilled professionals, customer relationships, and effective service delivery to differentiate themselves and build customer loyalty. 1. Financial Services: Banks, insurance companies, investment firms, credit card companies, and other financial institutions are service-based retail providers in the financial sector. They offer services such as banking, insurance, loans, investments, and financial advice. 2. Transportation and Logistics: Service-based retail in this sector includes airlines, shipping companies, courier services, taxi services, freight and logistics companies, and rental car agencies. These businesses offer transportation and logistics services to individuals and businesses. 3. Personal Services: Personal care services such as beauty salons, spas, fitness trainers, pet grooming services, and wedding planners are part of the service-based retail sector. They focus on providing personalized services to individuals to enhance their well-being and quality of life.