Organizing Traditional Retail

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Executive Summary4
What is the word on the street?7
SWOT Analysis8
Types of Retailing9
Modern Retail10
Traditional Retail11
Traditional retailer insights13
Future and Growth of Retail in India14
Challenges faced16
Supply Chain Management – Its impact on retail19
Questionnaire Analysis21
Inference from Questionnaire replies25
Emerging Trends:28


I take this opportunity to sincerely thank all the people who tirelessly assisted me throughout this project. Their invaluable contributions in terms of their knowledge, time and sharing of their experience helped me a great deal.

First and foremost, I would like to express my gratitude towards Dr. Atish Chattopadhyay for having guided me and taken out the time to hold sessions so that I have a clear notion as to how to approach the business.

I would also like to express my gratitude to all my friends and all others who have been of constant help, support and guidance throughout the duration of the project.

Also, I would like to thank SPJIMR for giving me the opportunity to get a hands-on experience of a topic very close to my heart. Last and most importantly, I would like to thank the Almighty, without whose blessings nothing could have been possible.

Executive Summary

Organized retail is expected to grow at a CAGR of 40% by 2013 and this represents a sector which is only 65 of the total retail industry in India. Thus there are millions of unorganized, traditional retailers in the country who cannot compete directly with deep pocketed modern retailers like: Pantaloons, Shoppers’ Stop, etc. These shops have an inefficient sourcing of products, high costs of purchase, low margins and a near stagnant demand. In the last ten years, with the advent of organized retail, the businesses of traditional retailers has not grown as much as it could have, considering soaring Consumer Confidence Index for India. With statuesque, traditional retail will not be able to survive or compete with Organized retail. It is imperative for traditional retailers, i.e. Kirana stores to come up with various alliances, partnerships, changes in the business models, changes in the sources of revenues, styles of management, etc, without which they could be eyeing an imminent finish. Traditional retail requires strategies to not only stay in the market place, but continue to dominate it, or at least co-exist. This study tries to understand the retail industry with special focus to the two different formats it is visible in: traditional retail and Modern retail. The co-existence of the two in the current environment and its sustainability in the long run is discussed. The relationship between the traditional and the modern retailer was understood from various angles and points of view. The relationship between the two has been explained in greater detail by mentioning the emerging trends in the retail economy and where do we expect the retail industry and its composition in the future. The study is based on the surveys conducted of traditional retailers asking them their perspective on the whole situation as visible to an outsider. The findings have been used to reach a conclusion where the question of a need for strategies to resolve the current situation is answered by means by various ways the two formats can be expected to not only co-exist but support each other’s existence.  Introduction

The word ‘Retailing’ refers to any activity that involves the direct sale to an individual customer or end user. Coming from a modest yet age old beginning, Retailing has been the most active and attractive sector of the last decade. While the retailing industry itself has been present throughout the history in our country, it is only the recent past that has witnessed so much...
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