1. Industry Outlook - Retail

2. Organized Vs Unorganized Retail Sector
Organized Retail Sector Unorganized Retail Sector

3. Organized Vs Unorganized Retail Sector
Factor Organized Retail Sector Unorganized Retail Sector
Definition Modern form of retailing Traditional form of retailing
Examples Hypermarket, Retail chain Mom n Pop stores, hand
etc. cart, pavement vendors etc
Market Share 3% 97%
Market Growth 35% 6%
Challenges Poor supply chain Use of labour intensive
management, aggressive technology, lack of
expansion etc. government support etc.

4. Sources : www.ibef.org

5. Retail Trade – India, USA, China
Country Trade ($b) Employment Shops (mn) Organized
sector
India 180-394 7 1.2 2-3
China 360 12 2.7 20
UAS 3800 12.6-16 15.3 80
Sources : Repot, AC nielson

6. Key Growth Drivers
• Economic Growth
• Demographics
• Urbanization
• Credit availability

7. Exclusive showrooms
Mono/ exclusive either owned or Complete range
franchised out by a available for a given,
branded retail brand certifed product
manufacturer
shops quality
Focus on particular
Retail Formats Consumer get to have
Multi-branded retail product categories and
more choices as many
in India shops carry most of the
brands are on display
brand available
One stop shop for
customer, many product
line of different brands on
Convergence Usually have on display most
of the convergence as well as display
retail oultels consumer electronic
products including
communication and IT goods

8. Different Formats

9. Big Shots of the Industry

10. 1) Pantaloon Retail
2) Raheja Group
3) Reliance Retail
4) Tata Group
5) RPG Group
6) Landmark Group
7) Piramal Group
8) Bharti - Walmart
9) A V Birla Group

11. Pantaloon Retail
 Headquartered - Mumbai -450 stores (India) – employees-
18,000 people.
 All India space- 5 mn sq.ft, expecting to reach 30 mn by 2010.
 Various segment -food & grocery, home solutions, consumer
electronics, Health & Beauty product etc.
 Recent Innovations include e-commerce ‘Hybrid Format of
‘Small shops’

12. Raheja Group
 First Departmental store in India, SHOPPER’S STOP
 Member of IGDS
 7,52,000 sq.ft. retail space with turnover of 6.75 millions
 Crossword, Mother care, Home stop etc.
 MOU with Home retail group of UK
 Plan establish network of 55 hypermarkets across the country
-sales turnover of US$ 100 million by2010.

13. Reliance Retail
 More than 300 Reliance fresh store and first Reliance Mart
hypermarket in Ahmedabed
 Expansion in two tier cities like Vijaywada, Pune, Ludhiana etc
 Investment of Rs.30,000 cr to set up new formats of retail ,
expecting sales of Rs.90,000 cr by 2010

14. Tata Retail Group
 Established in 1998
 Trent- subsidies of Tata group operates Westside and Star
India Bazaar, Croma
 Plans to pen more than 27 stores across its retail formats
adding 1.5 mn sq.ft. of space in the next 12 DLF malls

15. A V Birla Group
 Strong presence in apparel- Madura Garments
 Owned Brands like Louis Phillipe, Van Heusen, Allen Solly,
Peter England
 Investment plan – Rs.8000-9000 cr in the first 3 years till 2010
 “MORE” range of 15 supermarkets open at Nashik, Pune &
other two tier cities

16. Merger & Acquisition
Considerati
Year Acquired/ JV Company on
/ Target
Acquirer Nature of Business Stake (US$
million)
2005 Liberty shoes Future Group Retail (footwear) 51% 3
2005 Indus- league clothing Future Group Retail Clothing 68% 5
2005 Odyssey India Deccan Leisure Retail chain 100% 14
Chronicle (books, music, toys)
holdings
2005 Landmark Tata Trent Books, Music, 74% 24
Accessories
2006 Bistro hospitality TGI Friday’s Restaurant 25% N/A
2006 Indus League clothing Etam Group, Lingerie & women’s 50% 8
France wear retailing
Sources : www.indianretailforum.com

17. Current Potential & Prospect of Indian Retail
Sector

18.  Growth prospective
 Hurdles in growth phenomenon
 Supportive measures by Government
 Current market meltdown & its impact
 Overall scenario about Indian retail industry

19. Changing face
of Indian
Consumerism

20. Important Trends
• The whole concept of shopping ……change
• Heavy pockets …
• The Mall Mania…
• Mall ….. Shopping + Entertainment

21. Map of India’s Income class
1994 – 1995 1999 – 2000 2007 – 2008
Rich (Annual income >US$ 4700) 1 mn household 3 mn HH 6 mn HH
Benefit Maximize: Owns CAR, PC
Consuming (US$ 1000- 4700) 29 mn HH 55 mn HH 75 mn HH
Cost-benefit optimizer:
have bulk of branded consumer goods,
70% of 2-wheelers,
refrigerators,
washing machine
Climbers (US$ 500-1000) 48 mn HH 66 mn HH 78 mn HH
Cash-constrained benefit seekers:
have at least one major durable(mixer,
sewing machine, television)

22. Map of India’s Income class
1994 – 1995 1999 – 2000 2007 – 2008
Aspirants (US$ 350-500) 48 mn HH 32 mn HH 33 mn HH
New entrants into consumption:
have bicycle, radio, fans
Destitute (Less than US$ 350) 35 mn HH 24 mn HH 17 mn HH
Hand to mouth existence: Not
buying
Source: Ernst & Young

23. Consumer Dynamics
• Youngest population on the globe
• Growth pace of the Indian economy
• 97% retail market is untouched by organized
retailers
• Food & Grocery …………………. 55%
• Consumption is moving out of the home
• Indian consumers has grown richer…

24. The process of recruitment followed in India in
organized retail industry
For Junior level
Search for retail positions
• Junior level, required in a
mass number.
→go ahead with paper ads for
walk-ins
• Requirement is less for junior
level
→ go ahead with consultants and
reference recruitments

25. For Junior level
• The recruitment process starts with an interview
taken by
→ department managers
→ followed by store manager
→ HR
→ team leaders.

26. What is the process of recruitment followed in India in
organized retail industry?
For Middle level
• Middle level, then
→ consultants
→ Job - portals
→ news paper ads of walk-ins.

27. For Middle level
• The recruitment process starts with first short
listing by HR then interview is conducted with
→ department head
→ Store Manager
→ Zonal Manager
→ HR

28. Recession- hit- recruitment strategies
• Optimizing staff potential
• Adopt a scientific method in their recruitment
policies,
• Laying more emphasis on quality than quantity.
• Aim to hire people in large numbers to shortlist
the ones that are 'best available' geographically.
• The PAC test to decide from “where to hire” and
“where to locate the firm”

29. Why does Company hire Placement
Consultants
• To help them to find the right
candidate to join their organization.
• Job Seekers contact Recruitment firms
to help them identify and then apply for
the right job.

30. The role of recruitment agents and consultants vis-à-vis
employment with organized retail in India.
COMPANY CONSULATNATS
• Who are Placement Consultants in the Job
& Recruitment Industry
→ an entity that works towards reducing
clutter
→ streamlining the manpower
requirements of Companies, big and
small.
→ These firms serve as middlemen and
help organizations and job seekers to
APPLICANTS
find each other!

31. How It Works:
• Consultants work for a number of different Companies, small and large.
• These head hunter groups receive details about the job vacancy such as
job responsibilities, desired experience, remuneration etc.
• Next, Consultants go through their present database of job seekers
registered with them. This database of aspiring candidates is a Placement
Consultant's resource built over a period of time.
• Job seekers contact recruitment firms either through phone, email or walk
ins and register their Resumes with them.
• Next, the wait begins - candidates hope to be informed of good openings
and prepare themselves for interviews.

32. How to apply for a job through Placement Consultants:
• Identifying a Placement Firm
• Contacting them
• Following Up
• Jobs and Career Websites

33. Positions & Remunerations
Serial no. Particulars Salary
1 Technical Engineer 20000
2 Accounts Manager 15000
3 Accounts Assistance (Back 10000
Office, HR, Recovery, Bills)
4 Sales & Marketing Manager 25000
5 Sales & Marketing Executive 20000
6 Front Desk Customer Care 8000
Executive
7 Technical Supervisors (MST) 15000
8 Bouncers / Supervisors 12000
9 Store Manager 35000
10 Merchandise Manager 25000

35. Strengths weakness
Technology Incentive Low conversion level
Super Market Stocks Customer Loyalty
Rising Disposable Income Underdeveloped supply chain
Increase in number of people in earner Lack of adequate utilities
category.
opportunity threat
Large consumer market High market share of unorganized market
Growth of Organized sector Shopping Culture
Rural Retailing Poor inventory turns & stock availability
Potential for Investment measures.
Inflation