GROWTH OF RETAIL MARKETING IN INDIA
GUIDED BY :- Submitted by:- Prof. Dr. AKANKSHA SINGHI Siddharth jain
With organized retail in India pegged at Rs 25,000 crore (Rs 250 billion) out of a total of Rs 800,000 crore (Rs 8,000 billion -- and a double digit growth rate, marketing companies are setting up shops to provide differentiated services to clients. Till now sales people were the link between the retailer and the producer. But sales personnel are busy selling a product and do not have a fair idea of what retailing is about. The focus is to prioritize retail. That is, not only to sell a product to a consumer but to get the consumer to interact with the product. Gone are the days when retailing meant mere availability of a product. With competition becoming stiffer companies are looking at 'experiential' marketing. Also the lack of proper metrics to measure marketing spends is a serious issue. In today's swiftly changing business environment, there is no option but to be in the know - to be constantly on the move, keeping tabs on the shifting trends in the market place and maneuvering your strategy to stay on top. The retail arena today is very different - the opportunities are incredible but exploiting them is Supersmart shoppers know all the rules of the game. They can instantly sense a good buy and lap it up or sniff out a bad product and dismiss it. Their expectations are tough to meet but for retailers aiming to make a big sale, there is not much of a choice but to find ways to win customers over and keep them permanently happy. This report also surveys the property market and reiterates the significance of IT in organized retail before presenting a payback analysis to reveal the financial aspects involved . India's attempt to go the international way in retailing has met with some success though not quite as expected. At about 2 per cent of the total retail market, we are still only scraping the surface. Easy to see why, Only a few large industry houses have invested in this sector and even fewer have put in any significant sums of money in a business, which is capital intensive in nature. The fragmented make-up of the consuming market, complex geographical and cultural structure made more difficult by poor infrastructural linkages do not allow economies of scale immediately. But a tremendous opportunity exists in the Indian market and organised retail will prevail as in other parts of the world. It is only a matter of time before that happens and it is probably closer than we imagine. This is the right time to invest and continue investing in the business. Profits may come in only after five or even seven years, but that's the way this industry operates and unlike some of the other sectors, this is not a business where revenues are imaginary and profits illusory. The market exists, the consumer is out there spending that money somewhere - you just have to get him into your store. In this review the state of business and potential and more importantly, study the best practices being followed by various retailers in India. I also present in-depth analysis of practices in the food and apparel sectors supported by case studies and insights into the financial side of the business.
Definition of retailing
Retailing is all the activities involved in selling goods and services directly to final consumers for their personal, non-business use. Although most retailing is done in retail stores, in recent years non-store retailing -selling by mail, telephone (telemarketing), door-to-door contact, vending machines, and numerous electronic means -- has grown tremendously. Store retailing: retail stores come in a variety of shapes and sizes, and new retail types keep emerging. They can be classified by one or more of several characteristics:...