Bridging Skill Gap in Retail Sector

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“BRIDGING THE SKILL GAP IN THE
INDIAN RETAIL SECTOR”

OVERVIEW OF INDIAN RETAIL INDUSTRY:
Indian robust macro and micro economics fundamentals, such as : 1. robust GDP growth
2. higher incomes
3. increasing disposal income
4. favorable demographics and supportive government policies These will accelerate the growth of the retail sector. Indian retail industry is perhaps one of the most challenging, dynamics and exciting markets to operate in. India is an economy of $1.43 trillion and expected to reach $2.0 trillion by 2020.sixty percent of Indian total population lies between 15 to 35 years. Top ten cities of India account 10% of total population; however account one third of disposal income. Organized retail, accounts for around 5% of the total Indian retail market. Organized Retail has been growing at an impressive rate of 35% to 45% Y-O-Y in the last few years Compared to 9-10% growth in the overall retail industry. Unorganized retailing contributes to about 95% of total retail revenues. Unorganized retailing which involves the local kirana shops, paan/beedi shops etc continues to be the backbone of the Indian retail industry.

SEGMENT BASED ON RETAIL PRODUCTS:
1. food and grocery
2. Jewellery
3. Clothing,textiles and fashion
4. Watches
5. Footwear
6. Health care and beauty care
7. Pharmaceuticals
8. Consumer durables
9. Mobile handsets
10. Utensil, furniture
11. Entertainment
12. Books, music

SHARE OF VARIOUS SEGMENTS OF ORGANISED RETAIL:
Sl no| Consumption category| Share in OrganizedRetail| Extent of Penetration| 1| Clothing, Textiles and Fashion Accessories| 38%| 23%| 2| Food and Grocery| 11%| 1%|
3| Consumer Durables, Home Appliances andEquipments| 9%| 12%| 4| Out of Home Food (catering) services| 7%| 8%|
5| Furnishings, Utensils, Furniture - Home andOffice| 6%| 11%| 6| Mobile handsets, Accessories, and Services| 3%| 10%| 7| Entertainment| 3%| 5%|

IMPORTANT FACTORS FOR INDIAN RETAIL SECTOR:
1. Leveraging technology
2. Efficient Supply Chain management
3. Rural market penetration
4. Customized solution
5. Customer relationship management
CORE PROCESS IN RETAIL:
1. Store operation
2. Merchandising
3. Logistic and distribution
4. Marketing
5. Procurement
6. Corporate services

DISTRIBUTION OF HUMAN RESOURCE BY EDUCATION LEVEL IN RETAIL INDUSTRY:

FUNCTIONAL DISTRIBUTION OF EMPLOYMENT IN ORGANIZED RETAIL:

Major proportion of the employment in the retail sector is in front-end/retail assistant profiles in stores. The function/activity-wise distribution of human resource in the Organized Retail sector is shown in the following figure. Store operations account for 75%-80% of the total manpower employed in the Organized Retail sector As there are very few courses which are specific to retail, graduates/post graduates from other streams are recruited. Persons with education up to 12th Standard and 10 th Standard account for 55% of the workforce. The education profile of the human resource will vary for retailers in small cities and rural areas where X/XII pass people account for a higher share of the workforce.

SHARE OF CITIES OF OPERATIONAL MALL SPACE IN INDIA :

Tier 1 : includes Delhi NCR, Mumbai, Bangalore, Chennai & Kolkata Tier 2 : includes Hyderabad, Pune, Ahmedabad , Chandigarh, Jaipur & Luckhnow Tier 3 : includes cities like Agra, Allahabad, Ludhiana, Kanpur etc

SKILL REQUIREMENTS AND SKILL GAPS IN STORE OPERATIONS:
(A)FUNCTIONAL SKILLS:
1. Responsible for the day-to-day management of a department/ store

2. Proficient with spreadsheet and word processor tools to analyze sales and generate sales reports

3. Understanding of various aspects of customer behavior. For e.g the profile of customer as user/buyer will have impact on...
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