OVERVIEW OF INDIAN GROCERY AND PERSONAL CARE PRODUCT RETAIL INDUSTRY.
2.1 Introduction To Retailing .
The word 'Retail' is derived from a French word with the prefix re and the verb tailer meaning "to cut again"[1]. Evidently, retail trade is one that cuts off smaller portions from large lumps of goods. It is a process through which goods are transported to final consumers. In other words, retailing consists of the activities involved in selling directly to the ultimate consumer for personal, non-business use. It embraces the direct-to-customer sales activities of the producer, whether through his own stores by house-to-house canvassing or by mail-order business[2].
2.2. Evolution Of Indian Retail Industry :
Retailing is one of the largest
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5.Automatic vending : The form of retailing that offers products through vending machines with items like snacks , cool drinks etc 6.Discount stores : The form of retail outlets that offers products and services to customers on discount on maximum retail prices of products 7.Category killers : The form of retail stores that offer products and services in special category in wide assortments in individual category .Example Multi brand retail stores in electronics .
8.Hyper markets : The retail outlet with largest retail space that caters wide range of products to customers ranging from groceries to all varieties of products .These stores are also otherwise called as shopping malls
2.4. Emerging Trend's In Indian Retail Industry :
The emerging trends in Indian grocery and personal care industry [10]are
1.Starting up of organized retail outlets : Development of infrastructural facilities which enhances the faster growth in real estate that leads to construction of shopping malls and hyper markets .
2.Raise in spending patterns of Indian youth : Raise in size of youth population in our country with raise in their earning and spending patterns of Indian youth
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At the present time, shopper in India wants the right price, ambience and good quality all under one roof. With the speedily altering everyday life and rising earnings of customers, the retail industry has shown good growth rates in India. According to a report on Indian grocery and personal care Retail Industry, it is estimated at $680-billion score by 2021[20].
2.6.Contribution Of Grocery And Personal Care Retailing To Indian Economy. As per the report of Techno spark management consulting company , grocery and personal care product retailing in India was about 8% contribution to GDP( Gross domestic product ) of our country in the year 2007 , 11% of GDP in the year 2011, 18% in the year 2016 , and it is said to be 26% in the year 2020 for the overall GDP ( Gross domestic product) of our country[19] . The contribution of grocery and personal care product retailing to the GDP of our country is shown in the following table 2.1.
Table 2.1: Table showing contribution of grocery and personal care product retailing to GDP of our country .
YEAR % OF CONTRIBUTION OF GROCERY AND PERSONAL CARE PRODUCT TO THE GDP OF OUR COUNTRY
2007
a) Growing stores that provide a long-term value to its guest. The store growth includes first small format store as well as remodeling store to a new layout that allows carrying out the latest merchandise in an extended Grocery, beauty, shoe and home assortments. This gives the customer another reason to visit Target Store for shopping in a Target store.
b. Cover who they are, what has been done, when new stores open and what stores are open now, locations, and the aim of these new stores.
There is a high degree of diversity between retailers, with dedicated shoe retailers competing with apparel retailers and large supermarket chains.
However, on the local level, specialty retailing is defined by independently owned, unique shops that express the personalities of their owners. These small retail outlets -- shoe stores, food stores or book stores -- have become the bedrock of downtown and urban redevelopment across the country.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
Table of Contents Executive Summary ………………………………………………………………………………3 Location and Role………………………………………………………………………………… .4 Competition with other shopping centres…………………………………………….5 Map of local businesses ……………………………………………………………………6-7 Competition between the businesses within the centre………………………8 SWOT diagram …………………………………………………………………………………….9 Application …………………………………………………………………………………………10 Appendices …………………………………………………………………………………………11 Bibliography………………………………………………………………………………………… 12 Executive Summary
Many of these malls are busy and more cultivated for the upper class consumer. Examples in Pretoria, is Brooklyn and Menlyn. Both very busy, very popular, high class malls located in well accessible areas within Pretoria. The site selection is very important in terms of allowing accessibility for both the trader and the consumer; therefore, it is to their advantage to establish their chain stores within busy upper class and popular malls as it increases the changes for customer traffic, which are within their target market, who have the money to spend on their products. Being in a mall setup, the stores, like all its neighbours will have transportation accessibility that would most probably be are available by the mall itself in order to accommodate their
India is world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less been a stable democracy. Until 1991 Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the thriving and profitable sectors. In the case of India retail industry is witnessing unprecedented growth and transformation (Malini 161). Organized retailing is becoming a norm as opposed to unorganized retailing which was dominant in the past. For a direct investor from United States of America, who is interested in investing in consumer goods retailing and e-retailing in India, it is important to understand the macro environmental factors which can have serious impact on the success or failure of a venture. According to Musgrave (38) India is the fourth largest economy in the world and it is expected that by 2050 it will become the most populous country in the world. Since the initial relaxation of barriers and encouragement of foreign direct investment in 1991 retailers have started making inroads into the Indian markets. Using the PEST analysis this paper will explore the macro environmental factors comprising political, economic, social and technological environments for investing in retailing and e-retailing of consumer goods.
Something Clever About Malls In 1956 the first shopping mall opened, and within a few short decades, hundreds of malls had opened across the US. These spaces were created to provide communities and commodities, which were often found downtown, to the suburban population. In recent years, malls have been struggling to stay commercially competitive in a world increasingly reliant on online shopping.
Even the slowdown in current global economies could not bring retail sector down as retailers keep seeking for opportunities overseas to avoid challenging economic condition, which make this sector becoming more globalised and competitive. As an heir of an industrial components retailer, I also believe there are bountiful opportunities to grow in this emerging industry. But without deeply and truly understanding in every aspect of retailing, one could not survive in the battle. For this reason, I would like to pursue my education further by studying Master in retail management to obtain knowledge in retailing and hopefully become successful in the field.
Throughout the past years there has been an enormous and ongoing conflict against the opening of "big box" superstores which are famous across America. "Big box" is the new term used to describe the massive rectangular one-floor building retail stores occupying between 90,000 and 200,000 square feet with an enormous parking lot that surrounds it. They are designed to accommodate a large number of products as well as a form of billboard that affectively attract customers. These stores are strangely loved and hated by the American citizens. Many absolutely love them because they provide individuals with good quality goods at low prices, efficient and convenient service, and it is often said that as these stores not only create many job opportunities to the suburbs, but they also greatly increase local tax revenues. "All customers appreciate good service, low pricing, and great selection," suggest Walt-Mart (Beaumont). Although it seems like the consequences of the presence of these stores are all positive, one must analyze closely the long run effects in order to realize that they may cause permanent damage to the communities. There are certainly many hidden costs brought by these big box stores in which "do not appear on the price tags of the products they sell: traffic congestion; loss of trees, open space and farmland; displaced small businesses; air and water pollution; dying downtowns with vacant buildings; abandoned shopping centers; a degraded sense of community; and sprawl." Therefore it is necessary to study the opportunity cost of building these stores in the suburban areas to decide if they are actually higher, making it a better choice to avoid them at least within a certain distance from residential spaces (Codey).
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
1. Disposable Income: There is increase in disposable income, observed in both rural and urban consumers, which is giving opportunity to many rural consumers to shift from traditional unorganized unbranded products to branded FMCG products and urban fraternity to splurge on value added and lifestyle products. The increasing salaries, along with rising trend of perks in the corporate sector at regular intervals, have increased people’s spending power. As per some research, there is a high correlation between Disposable per capita and HPC per capita.
In today’s era retail domain is growing on a large scale. Lot of analytics are done in Retail Industry to enhance the revenue out of it . Retailing means selling merchandise in small proportions to the consumers for their end use. According to retailing, the individual reaches a nearby retail store and purchase products as per his need and pocket in small units for his own consumption.