S.PRASANNA VENKATESH

Retail ManagementA Strategic Approach

Introduction to RetailingS.PRASANNA VENKATESH

What is Retail ?

“Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non-business use”.

- Philip Kotler

“ A Business Where The Store Meets Customers Eye To Eye, Shakes Hands With Them And Revels In The Success Of Gaining Their Footfalls And Helping Them Buy!”

What’s Unique About Retailing?

A Positive Response To An Invitation!A Repeating Phenomenon!

Introduction to RetailingS.PRASANNA VENKATESH

Role of Retailer in Business cycle

Manufacturer Wholesaler Retailer Consumer

Introduction to RetailingS.PRASANNA VENKATESH

Functions of Retailer Sorting Breaking bulk Holding stock Form utility Time utility Place utility Ownership utility Additional services Channel of Communication Transport and advertising function

What does shopping mean to a customer?

Provide a pleasurable experience? Become part of a lifestyle activity? Offer great products? Can it relieve stress? Or is it just a chore?

A Pleasurable Experience?

Has he really given her the ‘ring’?

A Lifestyle Activity?

Watches that tell more than time

Does a MOVADO only ‘tell time’?

Offer Great Products? Or an Attitude?

Are low rise jeans only a ‘fashion statement’?

03/12/2004

A shopper should be able to determine a store’s

NameLine of tradeClaim to famePrice positionPersonality

In 3 Seconds… 

03/12/2004

Parking facilitiesStorefront (Security!)Store entrancesDisplay windowsFaçadeSurrounding stores and

area

Exterior Experience… 

FlooringColorsLightingScentsSoundsStore fixturesWall texturesTemperatureAisle space 

Interior Experience… 

Dressing facilitiesIn-store facilities(Toilet, escalator, stairs)PersonnelMerchandiseDisplaysTechnology/ProcessesStore cleanliness 

Introduction to RetailingS.PRASANNA VENKATESH

Global Retail Market Global industry classification standards (GICS) Global market size US $ 9 Trillion(2008) 5.5% growth. U.S – 32.3% Europe – 30.8% Asia pacific – 25.6% Others – 11.20% Developed Vs Developing countries BRIC – India followed by Russia and china Most Attractive retail destination – India (GRDI 2009)

Introduction to RetailingS.PRASANNA VENKATESH

Retail in India Highly fragmented Nascent stage but growing fast (9 – 10%) 12 million retail outlets (80% Kirana stores) USD 330 billion market. 5% organized sector 10% GDP (36% source: Technopak estimates) 9% Employment

Introduction to RetailingS.PRASANNA VENKATESH

Key drivers for GrowthEconomic Growth High disposable income Growing Middle class

Demographics More than 50% of population – less than 25 years of age Consumption growth More educated and working class population

Social Setup Change in family structure and women’s role in the family Growing role of children as influencers Gradual acceptance of frozen food as alternative to fresh food Growing influence of TV and other medias Lifestyle Standard of living

Urbanization 40% of the population

Credit Availability

Introduction to RetailingS.PRASANNA VENKATESH

Journey of organized Retail in India

Questions and Answers

Introduction to RetailingS.PRASANNA VENKATESH

Thank you

Introduction to RetailingS.PRASANNA VENKATESH