India’s Retail Evolution

As we understand, retailing involves all activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. Simple retailing is maturing into a more microscopic and systematized process.

The era of rural retail industry could be categorized into two formats: weekly markets and village fairs. Primarily weekly formats catered to the daily necessities of villagers. Village fairs were larger in size with a wide variety of goods sold from food, clothing, cosmetics and small consumer durables. The traditional era saw the emergence of the neighborhood ‘Kirana’ store to cater to convenience of the Indian consumers. The era of government support saw indigenous franchise model of store chains run by Khadi & Village Industries Commission. The KVIC has a countrywide chain of 7000 plus stores in India. This period also witnessed the emergence of shopping centers with car parking facility. The Modern era has a host of small and large formats with exclusive outlets showcasing a complete range of products. The department stores and shopping malls targeting to provide a complete destination experience for all segments of the society. The hyper and super markets are consistently trying to provide the customer with the 3 V’s. (Value, Variety and Volume)

Over the last three years, this sector has witnessed an exorbitant growth due to the establishment of numerous international quality formats to suit the Indian purchase behavior, the improvement in retail processes, the development of retail specific properties and the emergence of both, domestic and international organizations.

Retailing sector is the second largest employer in the country with almost over 12 million retail outlets in India and only 4% of them being larger than 500 square feet in size. Although retailing in India is fairly fragmented, organized retailing is gaining momentum rapidly growing at almost 25-30% per annum and is forecasted to touch a figure of Rs I,50,000 crore by 2010. The economy is projected to grow at 8.1% in 2005-2006 having grown at a steady pace of around 6% over the last 10 years.

Organized retailers are the contemporary formats by which shoppers have the edge of a world class shopping experience. Fine examples of these formats are Pantaloon, Shoppers Stop and Trent. Organized retail may broadly be classified into the following formats-

Malls The largest form of organized retiling today. Malls are located mainly in metro cities, in proximity to urban outskirts, this format ranges from approximately 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof.

Hypermarkets They are typically large, starting from 40,000sq. ft plus are usually located outside the city limits. This format comprises of a multiple division layout, and usually has an” industrial- look” interior. Hypermarkets generally provide daily necessities and grocery like items. Pricing is competitive and they also offer volume discounts.

MBO’s Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.

Super Markets Large self service outlets, catering to varied shopper needs are termed as Super markets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from a size of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

Discount Stores As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods.

Convenience Stores These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.

Departmental Store Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc.

Exclusive Store Ranging from a size of 500 sq ft to 5,000 sq ft. & above, this format is owned/ managed by the Company or through its franchise. These can offer single brand as well as multiple bands.

Specialty Store These formats focus on a specific product category, Medium sized layout in strategic location. Specialty stores provide a large variety base for the consumers to choose from.

Despite the presence of the basic ingredients required for growth of the retail industry in India, it still faces substantial hurdles that will retard and inhibit its growth in the future. One of the key impediments is the lack of FDI. This has largely resulted in limited capital investments in supply chain infrastructure, which is a key for development and growth of retailing and has also constrained access to world-class retail practices. Lack of proper infrastructure and relatively high cost of real estate are the other impediments to the growth of retailing. While the industry and the government are trying to remove many of these hurdles, some of the roadblocks will remain and will continue to affect the smooth growth of this industry.

For Further Information please contact:

India’s Influential News Media

Indian press has such a deep influence over the lives of people that the Indians trust their media more than their government in terms of news authenticity. A survey shows that the most preferred medium of news in India is television (about 37 per cent), followed closely by newspapers (at 36 per cent). Then comes radio at 7 per cent and news magazines at 4 per cent. Thus, media training is a must to handle the Indian limelight.

Surprisingly, Indians trust local newspapers, television, and radio more than news websites and blogs. So the pressure is on for Indian reporters to produce engaging news stories every hour.

The Most Prominent Newspapers Of India

In most of the Indian households, the day starts with a morning cup of tea, along with a newspaper. They are an integral part of the lives of Indians.

In a survey of Indian newspapers, the Hindustan Times (www.hindustantimes.com), published from Delhi, came up as the largest circulated single edition daily with 1,175,339 copies followed by the Ananda Bazar Patrika, published from Kolkata with 1,130,167 copies. The Times of India, published from New Delhi and printed at New Delhi and Sahibabad came third with 1,102,772 copies. The Times of India, the most read English daily in India (www.timesofindia.com), having eight editions with a combined circulation of 2,771,669 copies, came first among multi-edition dailies.

The Dainik Jagran (www.jagran.com) in Hindi having 15 editions, claiming a combined circulation of 2,483,432 copies stood second. Dainik Bhaskar http://www.bhaskar.com (Hindi) with 16 editions and a combined circulation of 1,901,384 copies, occupied the third position. The Economic Times, Financial Daily (www.economictimes.com) sells 400,000 copies. The Economic Times is the most preferred daily reaches by the business population.

India’s Most Influential Magazines

Business Standard (www.business-standard.com), Business World (www.businessworld.in), and India Today (www.indiatoday.com) have a strong grip over the Indian audience. They touch the lives of the Indian public with their accurate reporting and leave room for the reader’s views on current issues.

The Most Popular TV Shows Of India

Aaj Tak (www.aajtak.com) currently dominates the Indian media. It is the most preferred and trusted news channel among the Indian audience. Then comes DD TV, followed by Sun TV, Star news, NDTV, AIR, Zee news, and BBC.

The Indian media has captured the interest of Indian audiences by its various TV shows featuring famous personalities from diversified fields, shows on lifestyle, and other entertainment topics, including serious shows airing people’s views, problems, and controversies. Shows like the Big Fight, Seedhi Baat, Special Correspondent, National Reporter, and others have rocked the newsrooms of India. The latest rage is crime shows and those discussing the law and order problems of cities.

A majority of the Indian people trusts the media seeing them as credible news providers, believing that the media brings them closer to the freedom of speech and their own culture. They feel that they can voice their opinions through the media. However, many viewers find a substantial amount of western influence in Indian media.

Indian media has reached the pinnacle of performance and will continue to reach new heights. Hence, it becomes all the more important for you to take media training and develop a healthy relation with the Indian media.

Difficulty of Funding for India’s Entrepreneurs

Today India appears to be poised for phenomenal growth and this could be well

observed at the start of the new millennium. India is becoming a priority destination for different foreign investors and venture capitalists. Today’s knowledge-based economy of India is considered as a fertile ground for the upcoming entrepreneurs. As a result, the Indian businesses are now adapting the

global competitive environment. But previously, this was not the case; most of the early entrepreneurs had to face hindrances in the path of their success due to

various reasons such as inadequate opportunities, scarcity of capital, lack of technology and many other factors.

India is a conservative nation and most of the people prefer regular monthly pay

rather than embarking on any business venture on their own. In India, people do

have innovative ideas but translating these ideas into business enterprises involves many risks which they find difficult to tackle. This has led to an overall

cautious mindset amongst the upcoming entrepreneurs. Even if an individual makes up his mind to start up an enterprise, he fails to get proper motivation, financial backup as well as proper sources for funding. The most common difficulties faced by Indian entrepreneurs are non-availability of good credit schemes and complexities in acquiring long or short-term loans. Also the Indian banks show lack of interest in entrepreneurial projects and put hindrances in processing the funding request applications. These constraints make an entrepreneur feel handicapped in initiating any kind of business venture.

The reasons behind the difficulties of funding comprise of the communication gap

between venture capitalists or finance agencies and entrepreneurs. Absence of good credit schemes as well as improper presentation skills also contribute to the

difficulties of funding faced by Indian entrepreneurs. Many banks also fail to offer

enduring loans for start up units. Most of the time, investors and finance companies do not thoroughly understand the entrepreneurs’ newly introduced concepts. It would help if the funding agencies and venture capitalists kept themselves abreast with newly developing technologies and their possible profitable uses.

However, the difficulties of funding can be solved by different entrepreneurship practices. The important aspect for entrepreneurship is the attitude to make the entrepreneur-investor partnership based on mutual trust. In this, one partner possesses the innovative idea and skills necessary for implementing an enterprise, whereas the other partner has capital required for execution. This kind of partnership can contribute to paramount success of an enterprise. The finance companies, funding agencies as well as banks should develop certain processes to asses the feasibility of any new business venture and based on this they should facilitate loans for good proposals. These investors, funding agencies and banks should also try and introduce credit schemes that are favorable for entrepreneurs and add to the economic development of the country.

Purnima – The Story of India’s Self Made Women Entrepreneurs

Woman? W-itemized? Weak? Well not any longer!

India, the country where the very essence of being a woman meant living in the shadows of men, the man being their father, brother or husband. However now, the scenario is different and better; ways have been paved for women in the field of science, technology and entrepreneurship, by women themselves.

New chapters are being written by them, each better than the last. We’re no longer the submissive ladies chained in patriarchal customs, we’re busy developing ourselves, becoming masters in whatever we do.

‘Purnima’, I’d like to call these women. Purnima in Hindi means the full moon and a full moon describes beauty, grace and gorgeousness that flows after completing a full circle. Over the years we’ve conquered our fears and overpowered the traditions that said we were meant to stay back home and cook. It’s time for a reality check and also time for you to excavate into details of ‘India’s Self-made Purnimas’. These three women, mentioned below, are the ones who understood that being a woman is a sign of strength and they chose to outshine men, thus being called India’s best self made entrepreneurs.

  1. Richa Kar – Comfortable yet sensuous lingerie wouldn’t have been available online in India had Richa not thought of this great idea to sell lingerie online. Her store, Zivame, is one of the best online lingerie stores, making her India’s best known and self made entrepreneur. She understands that the thing women need is a comfortable and sensuous and she has all her focus set in the direction. Without a quirk of doubt, Richa is India’s greatest Purnima, shining her way out.
  2. Falguni Nayar – Nykaa’s CEO, Falguni Nayar, is the incredible woman behind India’s makeup sensation. A store that sells makeup accessories from tip to toe, Nykaa is her endeavor to provide a beautiful outlook to women, a sensation in itself. Falguni Nayar recognized the makeup needs of women, and provided everything under one name. She’s definitely a star and we need to applaud her for her incredible work.
  3. Suchi Mukherjee – A fashion freak, Suchi chose to provide women with a fabulous collection of clothing that have been streamlined for the sober and glamorous occasions. Presenting a fantabulous line of clothing under the name Limeroad, this woman has given the finest collection to Indian women who have a special affinity for fashion.

All of these women, including a few more are creating milestones in their respective fields and their success is a reminder for all those who’re still struggling that there is nothing that can hold you back if you’re working to be successful and independent.

I’m reminded of another amazing woman, Indra Nooyi, the lady who said, “We have been in this revolution for decades. First it was just getting entry into this boy’s club… We clawed our way into this revolution at workplace, then we needed parity at pay. Not yet there, we are still fighting for that. We have to have equal treatment. We need to be treated as equals. I hate to be called ‘honey’ and ‘sweetie’ and ‘babe’. That has to change.”

Are we bringing about any change? Well certainly!

Exit mobile version