CHAPTER -1

INTRODUCTION

An Overview of B-CITIES Retail Sector The retail sector has helped in giving strong impetus to overall economic growth as a significant driver of the growth of services sector, which contributes as much as 54 per cent of GDP. It has strong backward and forward linkages with other sectors like agriculture and industry through stimulating demand for goods and through mass marketing, packaging, storage and transport. Moreover, it creates considerable direct and indirect employment in the economy. Also, the consumers have benefited in terms of wide range of products available in a market.

Size of the B-CITIES Retail Sector The emergence of new formats and the evolution of modern retail in B-CITIES has attracted attention in recent years. [The data sets published by different authorities are not strictly comparable as they are based on surveys, but they give some idea of the trends and prospects.] The retail sector, currently, is said to contribute 10 per cent of Indias GDP (Confederation of Indian Industry), and is expected to grow at a robust rate of 36 per cent per annum by the
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end of 2008 (Associated Chambers of Commerce and Industry of India, ASSOCHAM). This growth would expand the size of the market to over Rs 14, 79,000 crore from its current level of Rs 5, 88,000 crore. The B-CITIES retail market is estimated at Rs 9,300 billion and is expected to grow at a compounded rate of 30 per cent over the next five years (Retailers Association of India). Moreover, the retail sector employs over 7 per cent (21 million) of the national workforce (Aggarwal, 2000), the second only to agriculture. The retail density more than doubled between 1978 and 1996 and the number of outlets per 1000 people at an all India level, increased from 3.7 in 1978 to 5.6 in 1996. For the urban sector alone, the shop density increased from 4 per 1000 people in 1978 to 7.6 per 1000 people in 1996 (Venugopal, 2001). Because of their small size, Indian retailers have very little bargaining power with manufacturers, unlike in the case of retailers in developed countries, (Sarma, 2000).

Structure of B-CITIES Retail Sector

The retail sector is classified broadly into two: Organised Retail sector and, Unorganised Retail Sector \ ORGANIZED RETAIL SECTOR The organised segment is mainly characterized by typically large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring systems. It is not just a stocking and selling, but is more about efficient supply chain management, developing vender relationships, quality customer service, efficient merchandising and timely promotional campaigns. It, however, constitutes a very little share of at around 3 per cent (Rs 300 billion) of the total retail market. (In China 20 per cent of the retail is organized and in the ASEAN countries it is more than 40 per cent Ministry for Commerce & Industry, February 2005) According to the Retailers Association of India, the share of organised sector to the overall retailing market in India is expected

to grow from 3 per cent to 20 per cent in the next 10 years. The KSA Technopaks estimate is that by 2005, the organised retail sector would be employing in excess of 2, 50, 000 individuals directly and perhaps 8-10 times as many indirectly in the supply chain. The organised retailing has been successful in metropolitan cities so far, more so in the south and west India. It is expected that the tier II cities would take another 5 years to absorb modern retailing opportunities. Moreover, the case for Indian retailers to explore rural markets is also strong due to the size of rural population and agricultural income growth in last couple of years. A clear indicator of this potential is the share of rural market across most categories of consumption.

UN-ORGANIZED RETAIL SECTOR

The unorganised sector, on the other hand, which represents 97 per cent of the total retail market is mainly characterised by typically small retailers, more prone to tax evasion and lack of labour law supervision. India is one of the largest unorganised retail markets in
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the world and more than 96 per cent of the retailers work in less than 500 sq ft of area.

Components of Retail Sector in B-CITIES The major components of the retail sector are: Food and Grocery, Fast Moving Consumer Goods (FMCGs), Consumer Durables, Apparel, Footwear and leather, Watches, Jewellery, and Health and Beauty The anatomy of the retail market has shown that the clothing and textiles constitutes 39 per cent of the organised retail pie, followed by food and grocery, which accounts for 11 percent of the total retail market.

However, according to the survey conducted by KPMG for Federation of Indian Chamber of Commerce and Industry (FICCI), among these, the food and grocery is expected to witness the fastest growth followed by clothing as the second-fastest growing segment.

Key Players in the B-CITIES Retail Sector The main players in the sector are classified as big corporate houses, dedicated brand outlets and multi-brand outlets. Some of the market leaders are: 1) Corporate Houses: Tatas (Tata Trent), RPG Group (Food World, Health & Glow), ITC (Life Style), Rahejas (Shoppers Stop), Hiranandani (Haike) 2) Dedicated Brand Outlets: Arrow, Nike, Reebok, Zodiac, Louis Phillip etc. 3) Multi Brand Outlets: Vijay Sales, Apana Bazaar, Videos etc. 4) Manufacturers/ Exporters: Pantaloons, Bata, Weekender etc. Among these, the formats like supermarkets (e.g. Food Bazaars) have the highest potential for growth in India followed by hypermarkets (e.g. Big Bazaar, Spencers).

Rural-Urban Share in Retail Sector A distinctive feature of organised retailing in India is that it is largely an urban phenomenon. Organised retail has been more successful in metros and cities, more so in the south and west of India. The reasons for this regional variation range from differences in consumer buying behaviour to cost of real estate and taxation laws. Nonetheless, the case for Indian retailers to explore rural markets is strong. Factoring the size of the rural population and agricultural income share of rural market across major growth in rural India, the rural market is certainly an opportunity for retailers with an innovative retail proposition. A clear indicator of this potential is the current categories of consumption.

Table 1: Share in Retail Market: Urban vs. Rural (per cent) Segment Rural Urban Food 64 36 Clothing and Footwear 61 39 Misc Consumer Goods 57 43 Consumer Durables 50 50 Consumer Services 44 56 Entertainment 33 67 Source: NSSO and KPMG Analysis

Growth and Future Prospects With the economy growing at a robust rate at near 8 per cent, the retail sector has also been witnessing notable growth due to an unprecedented consumption boom. The multiple factors driving this boom are: First, favourable demography with roughly 60 per cent of the total population below 30 years of age group. Higher disposable incomes of young middle class consumers due to employment in IT, management and increasing number of working women, Change in consumption pattern with high aspiration levels. The AC Nielsen Online Omnibus Survey 2005 has rated India in the highest category of Aspiration Index (especially in consumer durables segment) in Asia along with China, Indonesia and Thailand. Easier consumer credit with low interest rates and, Aggressive marketing by companies

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A notable growth in the retail sector is characterised by the performance of various retail segments:

Growth in Major Retail Segments (i) Apparel Industry The robust performance of an apparel industry has been largely an outcome of a buoyant growth of the textile industry. The Indian textile industry has increasingly benefited since the post-quota regime [The multi-fibre arrangement (MFA), which governed global trade in textiles and clothing since 1974, came to an end in December 2004)] in terms of higher textiles export, especially due to the demand from UK and US retailers. Though, according to Directorate General of Commercial Intelligence and Statistics (DGCIS), the textiles and apparel exports have decelerated in 2005, according to the import data from US and UK , the exports have grown by 15 per cent in 2005 to about US $ 15 billion. Nevertheless, currently the overall apparel market is worth Rs 88,000 crore and though the share of branded segment may be

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limited, is growing at a healthy 25 per cent. Moreover, in the home textile market, India currently exports about Rs 21,000 crore of home textile products to the US alone and the share of domestic market is about one third of it.

(ii) Food and Grocery The food industry is the second largest growing industry after the clothing segment. According to the FICCI study, the size of the food and beverages industry is Rs 3,58,000 crore and it is expected to grow between 8 to 8.5 per cent in value terms during 2005-06. The highest growth is expected in the semi-processed or readymade food segment, which is estimated, to grow by 22 per cent. Other segments, which are expected to expand rapidly, are fruit juices, pulp and concentrate (18 per cent), followed by sauces (17 per cent) and branded milk products (15 per cent). The FICCI has urged the government to have pro-active approach for helping the industry to achieve the lower cost, quality improvement and better performance in the competitive environment.

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(iii) FMCG (Fast Moving Consumer Goods) In the last couple of years, the FMCG segment has grown at a rapid pace, especially due to increasing number of big FMCG outlets like Big Bazaar. According to the AC Nielsen India study, the Rs 48,000 crore FMCG industry grew by 5.3 per cent in value terms in 2005 over the previous year. A rise in food and personal care categories is fuelling this growth in value terms, with biscuits growing at 13.8 per cent, shampoos by 17.5 per cent as against 9.8 per cent and 8.6 per cent, respectively, registered in 2004. Interestingly, the FMCG growth (in value terms) in rural markets has far outpaced the sectors growth in urban markets during April-December 2005. The products, which have shown significant growth in rural markets, are toothpaste, hair oils and shampoos. Shampoo sales, for eg., in rural areas have gone up by 30.8 per cent as compared to just 11 per cent in urban areas. The reasons attributed to such buoyant growth in rural markets are highly saturated urban markets (tier I and II cities), successive good monsoons and a resultant growth in farm income coupled with increasing awareness towards better lifestyle in rural areas.

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(iv) Consumer Durables The size of the Indian consumer goods industry is at around Rs 20,000 crore. After three years of buoyant performance, the consumer durables industry has shown a moderate growth (in terms of production) of 13.6 per cent during the period April-January 2006 as compared to 14.8 per cent over the corresponding period in the previous year (Ministry of Statistics and Programme Implementation). According to the study by Investment and Credit Rating Agency (ICRA), based on recent trends, the Indian colour television (CTV) market is estimated to increase from 8.3 million numbers of units during 2003-04 to 10.1 million during 2005-06. Similarly, the refrigerator and washing machine markets are also expected to increase by 13.5 per cent and 14.2 per cent, respectively, in the same period.

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Investment in B-CITIES Retail Sector According to the KSA Technopaks Retail Summit 2005, investment in the Indian retail sector is estimated at Rs 2000 crier to Rs 2,500 crore in the next two to three years and over Rs 20,000 crore by the end of 2010. Large Indian corporate houses like Tata, Reliance, Area, ITC, Bombay Dyeing, Murugappa Group and Primal Group have continued to show interest in huge investments in organised retailing. The buying volumes for many of these players are in the range of Rs 1000 to Rs 2000 crore per year with the plans to increase it to Rs 10,000 to Rs 15,000 crore within the next three four years. Similarly, foreign investors and private equity players are also firming up plans to identify investment opportunities in the Indian retail sector. The medium to long-term prospects for the Indian retail industry appears positive. The growth prospects for individual items, would, however, depend on specific demand drivers.

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Effects of retail boom:

As we have seen earlier in the report, the retail boom has some specific implications on various aspects of the country. This aspect can be negative as well as positive. The retail sector as a whole has made tremendous changes in the country which shows the effects of it on functions such as consumers, other retailers, government, farmers as well as the economy as a whole. Thus the following are the effects of the retail boom on these various aspects of the country: Consumers: The consumer is the function that is most affected by the retail boom. Consumers include all the major classes such as upper, middle and lower class. Also they include various genders, age groups, races and people having different perceptions. o Positive effects: The retail boom has brought in a vast change in consumer

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behaviour. The entrance of organized retail has given the consumers more number of options to choose from and hence they can be more satisfied with there purchases. Also more number of competitors in the industry has increased the bargaining power of the consumers. Thus the consumers are able to purchase at a comparatively low price. The organized retail has given the opportunity to the consumers to buy several products under a single roof. Thus major cost and time of the consumers is saved which enhances there satisfaction. Even the lower end consumers get a chance to purchase high quality goods at comparatively lower costs which otherwise is not available. Due to high competition, the consumers get various discounts as well as offers. The organized retail provides the consumers with better services which otherwise was not possible.

o Negative effects:

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Due to various options available to the consumers, they keep on shifting from one service provider to another. This shows a decrease or negative effect on consumer loyalty. Due to organized retail getting a foot-hold in the market, the consumers can be exploited if the forerunners get a glimpse of monopoly setting in. Small retailers: The small retailers form the second major group which is affected by the retail boom. There are various reasons for this which are explained below: o Positive effects: Small retailers get a chance to understand various complexities of retailing. Thus they have to compete with major players.

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Small retailers can exploit the vast industry by becoming organized themselves. Thus they can form unions or groups to compete with the organized sector. The retail boom has brought in various new products to the market including newer and better technologies which was otherwise not available. Hence they have the opportunity to adopt these technologies in their business. Young entrepreneurs are now attracted towards retail sector as a whole due to its boom. Thus they start up with small retail shops that are modern in nature and fully equipped to compete with major players. Thus the small retail sector also gets a boost. o Negative effects: The threat posed by new entrants in the form of organized retailers is a big concern for the small retailers. Hence the competition has increased.

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Due to various new competitors and services being made available to the consumers by the organized retailers, the customer base for the unorganized retailers has decreased. Other major negative effect of the entrance of organized sector is that it has forced some of the smallers players to shut down their business due to increasing competition. The small retailers are not able to provide the high quality at competitive cost which is done in the organized sector. The expectations of the consumers from the small retailers (lorries, kirana stores) has increased which poses negatively to the retail

Government: Government is the body that decides on the rules and regulations in any particular industry. Thus the government has to control the working of the economy, standard of living, various industries and there working cycles etc. and to control these aspects, the

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government needs to impose policies and laws. Thus the boom in the retail sector has made the government think on various aspects and redefine and re-evaluate the rules and regulations. o Positive Effects: The retail boom requires the government to increase its expenditure on the infrastructure. This has been the major concern for the government as well as the industry itself. Thus the economy has seen drastic changes in the infrastructure. The government has to enact laws that reduce the tax evasions to increase the attraction for new entrances. Thus the new laws will enable new entrepreneurs to indulge in retailing. The retail sector has brought in more income to the entrepreneurs. This shows in the increased tax paying population in the economy which increases the government income. This income in turn can be utilized to finance retail as well as other sectors.

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The government has to keep better control over law and order due to opening of new 24 hr retail shops. Also the government needs to safeguard the interest of the retailers as a whole. o Negative effects: The retail sector has shown a boom in recent years. This has increased government expenditure towards this sector to maintain stable growth. Hence some of the other sectors that actually require major capital investments are overlooked. The government has played a major role in the retail boom by supporting the small retailers. This has shown a negative effect in states where in the organized retail has been banned. The major concern for the government is consumer interest. Thus the government has to enact laws which favour consumers more. This proves to be an hindrance in the expansion process. Since the government has liberalized the policies for foreign entrance in this sector, these foreign majors might drain money out of the economy, which is a negative concern for the government.

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Economy:

The retail boom has the biggest effect on the economy as a whole. Since the above factors together contribute to the economy, the economy is affected in a larger sense. Thus the retail booms effect on the economy can be summarized as follows: o Positive effects: Due to high growth in the retail sector, the GDP of the economy has risen. Thus there is an increase in investments through stocks and savings. The retail boom has attracted foreign direct as well as portfolio investments. Thus the economy has more foreign exchange to support other transactions. Employment opportunities in the economy has increased manifold. Thus the overall productivity of the economy has increased which shows a better standard of living for the population at large.

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Due to increase in infrastructure, other sectors get a boost and thus economy as a whole prospers. The boom has brought in newer and better technologies in the country which helps the economy to develop such better technologies in the long run. Also the economy is able to compete with other developed countries. o Negative effects: The retail boom has in functionality no real negative effects in the economy as a whole. This means that individual functions of the economy are affected but not the economy as a whole in negative terms.

CHALLENGES

1.

LOCATION- Right Place, Right location choice is the most important ingredient for any business that relies on

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customers, and is typically the prime consideration in a customer store choice. Locations decisions are harder to change because retailers have either to make suitable investments to buy and develop Real estate. While formulating decision about where to locate, the retailer must refer to the strategic plan by focusing on following aspects:

Investigate alternative trading areas. Determine the type of desirable store location. Evaluate alternative specific store sites.

2 MERCHANDISE- The primary goal of most retailers is to sell the right kind of merchandise. Merchandising consists of activities involved in acquiring goods and services and making them available at place, time and quantity that enable the retailer to reach its goals. Merchandising is

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perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store.

PRICING- Pricing is a crucial strategic variable due to its direct relationships with other retailing elements. The

importance of pricing decisions is growing because todays customers are looking for good value when they buy and merchandise. Price is the easiest and quickest variable to change.

TARGET AUDIENCE- Consumer Pull, however

seems to be the most important driving factor behind the

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sustenance of the industry. The purchasing power of the customers has increased to great extent with the influence on the retail industry relating to fuel the retailing boom.

SCALE OF OPERATIONS- Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that Indian retailers are facing. The cost of business operations is very high in India.

CHAPTER 2

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OBJECTIVES & SCOPE OF THE STUDY

OBJECTIVE OF STUDY Retail is clearly the sector that is poised to show the highest growth in the next five years. The sector is set for a revolution as both the present players and the new entrants are gearing up to explore the market. This sector contributes 10% of Indias GDP and the current growth rate is 8.5%. The present size of the Organized retailing sector is approximately 3% and is expected to grow to 25-30%. There are about 300 new malls, 1500 supermarkets and 325 departmental stores currently under construction.

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1.) The

research study assists solving various operations and

planning problems of the retail industry. It also helps to develop social relationships. 2.)Transform ideas into viable and creative solutions of the retail industry. 3.) Analysis of the existing marketing conditions for retailing activities.

4.) Finding the new opportunities for retail business. 5.) To analyze the growth of retail industry in B-CITIES.

SCOPE OF THE STUDY 1.) Evaluation of existing HR strategies 2.) Competition may be less in markets.
3.)

A retailer may be able to offer goods & services or technology not yet available in the existing market.

4.)

Market may represent growth opportunities if HR strategies are properly implemented.

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PAST/ PRESENT/ FUTURE OF RETAIL INDUSTRY Before the decades of 80s, India with hundreds of towns and cities was a nation striving for development. In this evolution the people of India played different roles as businessmen and consumers. Retail which literally means to put on the market, is a very important aspect of every city. Without a well organized retail

industry the people would not have their necessities and luxuries fulfilled, whether it may be our daily groceries or fashion accessories and everything in between, retail industry brings us the blissful experience of shopping. Though organized retailing industry began much earlier in the developed nations, India had not actively participated. However with its vast expanse and young population, India in the 21st century emerges as a highly potential retail market. The journey of retailing in B-CITIES has been reviting and the future promises further growth. It is widely accepted that the retail industry has undergone a drastic change in the last five years and there is yet more to come.
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The beginning for B-CITIES has been emerged that the sector will see the rosy days in the future. This confidence has helped India to acquire the No.1 position among 30 most attractive retailing destinations in the world according to Global Retail Development Index, Among emerging markets India holds the 2nd position after china in the list of most favored retail destinations

PAST RETAIL INDUSTRY IN B-CITIES The foundation for a strong economy was being laid in past retailing in B-CITIES. Youths were beckoning new awareness in all spheres, and this brought in an opportunity for retail industry to flourish. First in the metros and major cities and later to the sub urban and rural market as well. Retailing in B-CITIES at this stage was completely unorganized and it thrived as separate entities operated by small entrepreneurs in their own territories. There was a lack of International exposure and only a few Indian companies explored the retail platform on a larger scale. From overseas only companies like Levis, Pepe, Marks and Spencer etc., had entered targeting upper middle and rich classes of
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Indians. However as more than 50% population was formed by lower and lower middle class people, the market was not completed captured. This Was later realized by brands like Big Bazaar and Pantaloons who made their products and services accessible to all classes of people and today the success of these brands proves the potential of Indian retail market.

The B-CITIES retail Revolution was the eruption of malls across all regional markets. Now at its peak, the mall culture actually brought in the organized format for retailing in B-CITIES which was absent earlier. It was surprising that there was not a single mall in B-CITIES a decade before and just a few years ago only a handful of them were striving, today there are many malls across different cities and 2 years from now around 500 malls are predicted to come up.

PRESENT- RETAIL INDUSTRY IN B-CITIES

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At present the Retail industry in B-CITIES is accelerating. Though B-CITIES is still not at an equal pace with other Asian counterparts, but geared to become the major player in the Retail market. BCITIES secure a high position in the International market. Also with a highly diverse demography, B-CITIES provide immense scope for companies bringing in different products targeting different consumers.

According to the Global Retail Development Index, B-CITIES is positioned as the foremost destination for the retail investment and business development. The factor that is presently playing a significant role is the fact that the large section of the Indian population is in the age Group of 20-34 with a considerably high purchasing power, this has caused the increase in the demand in the urban marketing resulting into the consistent growth in the retail business. And though the metros and other tier 1 cities continue to sustain retail growth, the buzz has now shifted from the big cities to

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the lesser known ones. As the spending is no longer limited to metros, every tier 2 city in the country has good market for almost every product or service. Due to this tier 2 cities like Chandigarh, Coimbatore, Pune, Kolkata, Ahmadabad, Baroda, Hyderabad, Cochin, Nagpur, Indore, and Trivandrum etc. provide a good platform for a brand to enter Indian market. However, there are a few precautions for every brand that

explores B-CITIES market. As B-CITIES consumers are very curious and have a broad perspective, they respond well to a new product or concept and there are very fair chances of a brand surviving well. But every B-CITIES consumer whether urbanite or a small town dweller possess the feeling of value of money. Although labeled as tight fisted, B-CITIES consumers are large spenders once they realize that they are getting the value for their money. Also new product/service concepts from the western world are better adopted first by the Indian urban Indians, the smaller markets respond well to the need based retailing rather than luxury concepts. As the Indian

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retailing is getting more & more organized various retail formats are emerging to capture the potential of the market. Mega Malls Multiplexes Large and small supermarkets Hypermarkets Departmental stores are the formats which flourishing in both the big and small regional markets.

As the major cities have made the present retail scenario pleasant, the future of the B-CITIES Retailing

industry lies in the rural regions. Catering to these consumers will bring tremendous business to brands from every sector. However as the market expands companies entering B-CITIES will have to be more cautious with their strategic plans.

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FUTURE RETAIL INDUSTRY IN B-CITIES According to a study, the size of Indian retail market is currently estimated at Rs.704 crores which accounts for a meager 3% of the total retail market. As the market becomes more and more organized the Indian retail Industry will gain greater worth. The retail sector in small towns and cities will increase by 50 to 60% pertaining to easy and inexpensive availability of demand among consumers.

Growth in B-CITIES of the Real estate sector is also complementing the retail sector and has become a strong feature for the future trend. Over a period of next 4 year there will be a retail space demand of 40 million sq. ft. However, the growth in the retail sector is also caused by

the development of retail specific properties like malls and multiplexes. According to a report the retail sales are growing

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at a rate of 8.3% per annum. With the organized retail which currently has the 15.8% of the total market will acquire 1820% of the market share in the coming years.

Factors that are playing the vital role in fulfilling the bright future of the Retail in B-Cities:

The income of an average Indian is increasing and thus there is proportional increase in the purchasing power. The Infrastructure is improving greatly in all regions is benefiting the market.

Indian economy and its policies are also becoming more & more liberal making way for a wide range of companies to enter Indian market.

Indian consumers have learnt to become good consumers and all National and International brands are benefitting with this new awareness.

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Another great factor is the internet revolution, which is allowing foreign Brands to understand Indian consumers and influence them before entering the market. Due to the reach of media in the

remotest of the markets, consumers are now aware of the global products and it helps the brands to build themselves faster in a new region. However, despite of these factors contributing to the growth of B-CITIES retail industry, there are few challenges that the industry faces, there are few challenges that the industry faces which are need to be dealt in order to realize the complete scope of growth in B-CITIES market. Foreign direct investment is not allowed in the retail sector which can be a concern for many brands but Franchise agreements can avoid this problem, and with good planning, timely implementation and a media campaign that touches B-CITIES consumers any brand can go far ahead in the B-CITIES Retail Revolution.

RECENT TRENDS AND CHANGES

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 Retail in B-CITIES is witnessing a huge revamping exercise.

India is rated the fifth most attractive emerging retail market; a potential goldmine.

Multiple drivers leading to the consumption boom.

Favorable Demographics.

Growth in Income

Increasing population of women. There are many problems faced by Retail industry in Indian market. They are as following:

The format does not suit Rural India: While the format suits the urban areas, it does not suit the rural areas in a country like India. Today in India, Organized retailing is

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confined to class A cities i.e. the 23 largest cities. About 82% of organized retailing comes from the top six cities and another 12% from the next four. Thus the top 10 cities accounts for 94% of all organized retailing in India.

Purchasing patterns not very conducive: Even in the urban areas, the purchasing pattern of Indian consumers differs from those of Westerners. Whereas in the West, the purchases are by and large made in the first week of the month. Purchasing patterns differ also because of the difference in the eating habits of people.

Inadequate growth of brands: Inadequate growth of brands is another factor in B-CITIES, until recently; branding was almost non-existent in convenience products. Supply chain problems, as Suppliers are not properly organized in the country, replenishment of stock poses problems for large chains.

Being family businesses retailing enterprises have limitation in expansion: Yet another reason for the slow

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pick up of the mega retailing idea in B-CITIES is that all retail enterprises have been family concerns. And family business usually has the limitation in expansion,

Real estate problems: Real estate is an integral requirement of large scale chain store operations. Also big chains have to operate in several cities. Real estate thus becomes crucial, that is why groups that have been in Real estate and hotel businesses are more comfortable in branching off into retailing. From other firms, Real estate development is a problem which is major.

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INTRODUCTION TO HUMAN RESOURCE DEPARTMENT OF RETAIL INDUSTRY In retail industry the job of HR manager can be compare with the job of conductor, whose job is to instruct and direct all of the various musicians so that they can perform well together. But before a conductor can direct a beautiful performance, all of the individual musicians must be able to play their instruments well. What kind of performance could one can expect if the violinists did not know how to play their instruments or the flutists could not read music? So it is in the hospitality industry, before a manager can direct and shape employees individual contributions into an efficient whole, he or she must first turn employees into competent workers who know how to do their jobs. Employees are the musicians of the orchestra that the members of the audience-the-guests-have come to watch performance. If employees are not skilled at their jobs, then the performance they give will get bad reviews. Just as an orchestra can have a fine musical score from a great composer and still perform poorly because of incompetent

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musicians, so a hotel can have a finest standard recipes, service procedures and quality standards and still have dissatisfied guests because of poor employee performance. That is why properly managing human resources is so important. No other industry provides so much contact between employees and customers and so many opportunities to either reinforce a positive experience or create a negative one. As in the retail sector and in different sector there are around lots of employee are involved in different jobs in different fields there is dire need to look and control on them. No doubt different departments heads are present to look their department employee, but HRD is a place, which supervise and effectively communicate with these departments head and communicate with the top management. Thus there function is very large and diverse as compared with respect to different

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Fig: A Typical Organization of Personnel Department

General Manager

Personnel Director

Personnel Manager

Personnel Officer Personnel Research & Development Officer

Personnel Department

Training Department Operative Training Supervisory Training Management Training Training Instruction Training Aids & Equipments

Maintaining Payroll

Recruitment

Training

Welfare

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Personnel Policies of HR The personnel function in retail includes many activities such as:

Consideration of leadership style Relationship Responsibilities Philosophy Social orientation Organizational structure

In most of the retail the personnel policies are put in writing. These policies are distributed to key and responsible executive to provide guidance and ensure consistent application. Periodically the HRD review these policies. Arrears of personal policies The personal policies are concern with each of the following areas: Employment

Recruitment

Process

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Environment Organizational Objectives & Policies

HR Demand Forecast

HR Supply Forecast

HR Programming HRP Implementation

Control and Evaluation of Program

Surplus
Fig: HRP Process

Shortage

Organizational Objectives & Policies

HR plans need to be based on organizational objectives. In practice, this implies that the objectives of the HR plan must be derived from organizational objectives. Specific requirements in

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terms of number and characteristics of employees should be derived from the organizational objectives.
HR Demand Forecast

Demand forecasting must consider several factors both external as well as internal. Among the external factors are competition, economic climate, laws and regulatory bodies, changes in technology and social factors. Internal factors include budget constraints, production levels, new products and services, organizational structure and employee separations.
HR Supply Forecast

The next logical step for the management is to determine whether it will be able to procure the required number of personnel and the sources for such procurement. This information is provided by supply forecasting. Supply forecasting measures the number of people likely to be available from within and outside an organization, after making allowance for absenteeism, internal movements and promotions, wastage and changes in hours and other conditions of work.

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 HR Programming

Once an organizations personnel demand and supply are forecast, the two must be reconciled or balanced in order that vacancies can be filled by the right employees at the right time. HR programming is the third step in the planning process, therefore, assumes greater importance.
HR Plan Implementation

Implementation requires converting an HR plan into action. A series of action programmes are initiated as a part of HR plan implementation. Some such programmes are recruitment, selection and placement; training and development; retraining and redeployment; the retention plan; the redundancy plan; and the succession plan.
Control and Evaluation

Control and evaluation represents the fifth and the final phase in the HRP process. The HR plan should include budgets, targets and standards. It should also clarify responsibilities for implementation and control, and establish reporting procedures

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which will enable achievements to be monitored against the plan. These may simply report on the numbers employed against establishment and on the numbers recruited against the recruitment targets. But they should also report employment costs against the budget, and trends in wastage and employment ratios. Consequences of Inadequate Planning One example of inadequate planning is the case of an organization caught in a severe budget crisis for which management sees only one solution to lay off large numbers of employees. Careful planning for such a crisis during better times might have resulted in a series of alternatives, making layoffs unnecessary. Many other problems can occur if human resources planning are haphazard or neglected. For example, planning should take into account staff reductions in all parts of the organization and should be tried into any system for transferring employees. Top management because of declining sales or increased automation,

including the use of computers and latest technology, might contemplate staff reductions.

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JOB DESIGN Job design is a process of determining the specific tasks and responsibilities to be carried out by each member of the organization. In simple words, the logical sequence to job analysis is job design. Job analysis provides job-related data as well as the skills and knowledge expected of the incumbent to discharge the job. Job analysis, then, involves conscious efforts to organize tasks, duties and responsibilities into a unit of work.

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Feedback

Organizational Factors Characteristics of task Work flow Ergonomics Work practices Environmental Factors Employees abilities and availability Social and cultural expectations Behavioral Factors Feedback Autonomy Use of abilities Variety

Job Design

Productive & satisfying job

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Factors Affecting Job Design Job design is affected by organizational, environmental, behavioural factors. A properly designed job will make it productive and satisfying. If a job fails on this count, the fault lies with the job designers who, based on the feedback, must redesign the job. (See Fig)

Techniques of Job Design

Work Simplificatio n

Job Rotation

High Performance Work Design

Job Design

Job Enlargemen t

Autonomous Teams

Job Enrichment

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Fig: Techniques of Job Design Work Simplification: In this technique, the job simplified or

specialized. A given job is broken down into small sub-parts and each part is assigned to one individual.

Job Rotation: Job rotation implies movement of employees

from job to job. Jobs remain unchanged, but incumbents shift. With job rotation, a given employee performs different jobs, but more or less, jobs of the same nature. Job Enlargement: Job enlargement involves expanding the

number of tasks or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not mean that new skills and abilities are needed to perform it. Job Enrichment: Job enrichment seeks to improve both task

efficiency and human satisfaction by building into peoples jobs, quite specifically, greater scope for personal achievement and

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recognition, more challenging and responsible work, and more opportunity for individual advancement and growth. Autonomous or Self-directed Teams: A self-directed work

team is an intact group of employees who are responsible for a whole work process or segment that delivers a products or service o an internal or external customer.

High-Performance Work Design: It is a means of

improving performance in an environment where positive and demanding goals are set.

Role of Human Resource Department The human resources departments role in job design is usually indirect, although job design influences almost every aspect of human resources management. The department diagnoses organizational problems that suggest job redesign, incorporate information on job design in training and management development programs, and help plan job redesign programs to ensure that sound human resources policies and practices are developed. Further, the

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department is needed to prepare to modify job descriptions and job specifications and to an object modify recruitment, selection, training, compensation and other practices to be consistent with any job redesign program.

RECRUITMENT In simple terms, recruitment is understood as the process of searching for and obtaining applicants for jobs, from among whom the right people can be selected. Recruitment is the process of finding qualified people and encouraging them to apply for work with the firm. Managerial Roles Responsibility for the overall recruitment process is assigned to human resources managers. They are responsible for designing and implementing a recruitment program that will meet the hotel industrys personnel needs while complying with all legal

55

requirements. This responsibility includes finding sources of applicants; writing and placing advertisements; contacting schools; agencies and labor unions; establishing procedures to guarantee equal employment opportunity; and administering the funds the firm has budgeted for recruitment.

Factors Governing Recruitment The given fig. represents the factors that normally affect the recruitment process. These factors add additional function to that of HR manager.
External Forces Supply & Demand Unemployment rate Labor Market Political-social Sons of soil Image Internal Forces Recruitment Policy HRP Size of the firm Cost Growth & Expansion

Recruitment

Fig: Factors influencing recruitment

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Types of Recruitment In hotel industry, the types of recruitment are:

Internal Recruitment

Internal recruitment seeks applicants for positions from those

who are currently employed. Internal sources include present employees, employees referrals, former employees, and former applicants.
External Recruitment

Finding qualified applicants from outside the organization is the most difficult part of recruitment. The success of an expanding hotel industry or one with many positions demanding specialized skills often depends on the effectiveness of the organizations recruitment program. Specifically, sources external to an organization advertisements, college/university/institute are professional or trade services, associations, exchanges, consultants, employment placement

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displaced persons, radio and television, acquisitions and mergers and competitors. Recruitment Process HR practices its function in each and every stages of recruitment. The process comprises five interrelated stages, viz. (i) Planning,

(ii) Strategy development, (iii) Searching, (iv) Screening, and (v) Evaluation and control. The function of HR is to make the selection procedure an ideal one. The ideal recruitment programmed is the one that attracts a relatively larger number of qualified applicants who will survive the screening process and accept positions with the organization, when offered ORIENTATION AND PLACEMENT Orientation Orientation is called as induction. It is the planned process of introducing new employees to their jobs, their co-workers and the organization. The main purpose of induction is to relieve the new
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employee from possible anxiety and make him or her feel at home on the job. These orientation programmes are carried out formally as well as individually/collectively in the hotels. These programmes are carried from 1 weak 2 weak.

Organizational Issues

History of employer Organization of

Product line or services

provided Overview of production process Company policies &

employer Names & titles of key executives Employees department Layout of title &

rules Disciplinary regulations

physical

Employee handbook Safety procedure &

facilities Probationary period Employee Benefits

enforcement Pay scales and pay days Vacations and holidays Rest breaks
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Insurance benefits Retirement programme

Training & education

Employer-provided

benefits Counseling Introduction

services to employees Rehabilitation programmes

To supervisor To trainers

To co-workers To employee counselor

Job Duties Job location Job tasks Job safety requirements

Overview of job Job objectives Relationship to

other

jobs Placement After orientation comes placement. Placement refers to the assignment of a new employee to his or her job. The jobs of HR are simple where the job is independent, but where the jobs are sequential or pooled, HR specialists use assessment classification model for placing newly hired employees. For example the job of placing a waiter to its position is quite simpler as compared with that of the placing the employee at managerial level. The job of placing a waiter to its position is called an independent job but the job of placing employee at managerial level can be considered as sequential or pooled job.

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TRAINING AND DEVELOPMENT Training and development activities are designed in order to impart specific skills, abilities and knowledge to employees. Effective training is basic ingredient of success in the hotel industry. The concept of training is endorsed my most managers in the hotel industry, yet managers often give little thought to the training function in the context of their own business or departmental responsibilities until something goes wrong! One of the main problems in hotel industry is that investment in training and development of employees is a reactive process for many companies. Frequently, training and development arises as the result of significant change in the operational environment or as a consequent of crisis such as staff turnover or major departmental problems. Training is then used to cope with the immediate difficulty. This process may be proved costly to hotel. Whereas

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development refers to learning opportunities designed to help employees grow and evolve a vision about the future. Here the job of HR is to identify the training need and then accordingly to design the suitable programme for that. Training within a hotel provides the best opportunity to influence the

attitude and performance of employees. The training programmes include is such as introduction, fire, food hygiene, control of substances hazardous to health, manual handling first-aid, technical skills, product knowledge, and customer service. Methods and Techniques of Training A multitude of methods of training are used to train employees. Training methods are categorized into two groups and they are: 1. On-the-job training (OJT) 2. Off-the-job training On-the-job training: On-the-job training is primarily

1.

learning by doing and, as such, is probably the most used and most abused approach to training. Like other form of training, OJT requires planning, structure and supervision to be effective

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for developing a variety of practical and customer-oriented capabilities. When done correctly, OJT is a sensible and cost effective method for training and assessing trainees progress in jobs such as retail sales, food and beverage operatives, and check-in and check-out positions. Some of the On-the-job methods of training are orientation training, job-instruction training, apprentice training, internships and assistantships, job rotation etc. For example, at Dominos Pizza, approximately 85% of employee training is OJT, delivered by store managers using extensively by Ramada Inns, Inc., which has developed an OJT training aid. It also provides trainees with a list of sequential steps that should be followed to perform the task correctly, as well as the list of tools, materials, and equipment needed to do the task. Finally, the training aid provides an evaluation form for providing feedback to the trainees. Off-the-job training: Off-the-job training allows for the

2.

development of broader and more conceptual skills while providing a practice environment in which error need not be so costly. There are three main forms of off-the-job training: Inhouse, External, and Independent.

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In-house off-the-job training may take several formats including lectures and other classroom techniques, discussions, demonstrations, case studies and role plays, and simulations. What distinguishes in-house off-the-job training from other type of off-the-job training is that in-house training is conducted

away from the physical location where the job is actually carried out, but still on company premises. Like in-house off-the-job training, external off-the-job training can also take a variety of forms. Such training may be tailored to the companys specific need or it may be offered on a more general basis; it may focus on special disciplines related to hospitality. Independent off-the-job training refers to training methods that are controlled and managed by the learner. A number of these training options which are becoming increasingly important to employees in the hotel industry are:

Distance/open learning or training (may involve

correspondence teaching, use of television or radio, videoconferencing, etc.)

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Computer-assisted learning Interactive-video learning A combination of the above method

The Training Process Assessing Training Needs

Preparing the Training Plan

Specifying Training Objectives

Designing the Training Programs

Selecting Methods

the

Instructional

Completing the Training Plan

Conducting the Training

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Evaluating the Training

Planning Further Training

PERFORMANCE APPRAISAL Performance appraisal refers to the assessment of an employees actual performance, behavior on jobs, and his or her potential for future performance. It is done generally for the purpose of assessing training needs to employee, to effect his promotions and to give him pay increase, retention or termination. Though there are different methods of performance appraisal only one method that is commonly used in this industry is Rating Scale Method. For Example: In most of the hotels that I visited the performance appraisal is done on yearly basis but in Hotel Imperial Palace on day to day basis the briefing of employee is done. In Orchid Hotel, the rating scales method is used by the way of Questionnaire (1-10). Challenges of Performance Appraisal

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 Create a culture of excellence that inspires every employee to

improve or lend himself or herself to be assessed.

Align organizational objectives to individual aspirations. Clear growth paths for talented individuals.

Provide new challenges to rejuvenate careers that have

reached the plateau stage.

Forge a partnership with people for managing their careers. Empower employees to make decisions without the fear of

failing.
Embed teamwork in all operational processes. Debureaucratise the organization structure for ease of flow of

information.

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Performance Appraisal Process

Objectives of Performance Appraisal

Establish Job Expectations

Design an Appraisal Programme

Appraise Performance

Performance Interview

Use Appraisal Data for Appropriate Purposes

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Fig: Performance Appraisal Process JOB EVALUATION Job evaluation refers to the process of determining the relative worth of each job for purpose of establishing satisfactory wage and salary differentials. Jobs are evaluated on the basis of their content and are placed in the order of their importance. In a job evaluation programme, the jobs are ranked and not the job holders. Methods of Job Evaluation
Job Evaluation

Analytical

Non-Analytical

PointRanking Method

Factor Comparison Method

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Ranking Method

JobGrading Method

Fig: Methods of Job Evaluation

Though there are different types of methods available but the most common method practiced in this industry is analytical method and in analytical method point ranking methods is the most appropriate one.

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Process of Job Evaluation

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Objectives of Job Evaluation

Job Analysis

Job Description

Job Specification

Job Evaluation Programme

Wage Survey

Employee Classification

Fig: Job Evaluation Process

EMPLOYEE RELATIONS

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As the name suggest it is all about maintaining relationship with the employee. It includes all terms that are concerned with the employee like employee remuneration, i welfare, safety and health issue, trade unions etc. Here its where the HR manager communicates with employee about their problems, suggestion and so on. All these steps are followed in order to retain best employee. Employee Remuneration In most of the hotels, the human resource department plays a crucial role in determining the remuneration policy of employees. For this they take into consideration all external as well as the internal factors. By this they have to deal with external factors like labor market, going rate, cost of living, labor unions, labor laws, society and the economy as well as internal factors like companys ability to pay, job evaluation and performance appraisal and the worker himself or herself. In hotel industry both financial as well as nonfinancial methods of remuneration are followed.

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Incentives Payments It is seen that HRD are highly involved in deciding the incentives programmes. As this department is involved in deciding the remuneration programmme, they are serving as the foundations for most incentive plans. The management of these plans is collaborative. These incentives schemes are for direct workers who work in batches, as well as for indirect workers.

Employee Benefits and Services The HRD has a major role in the development and management of benefits programs. These benefits are designed by HRD in order to suit the requirement of employee. And further, they are sent to the top management for approval. Thereafter they are implemented. These benefits, which are given to the employee, are both financial as well as non-financial. Some of the benefits and services, which are practiced in the hotel industry, are as follows:

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Legally required payments Old age, survivors, disability and health insurance Workers compensation Unemployment compensation Contingent and deferred benefits Pension plans Group life insurance Sick leave Maternity leave Payments for time not worked Vacations Holidays Voting pay allowances Employee Welfare

Labor welfare refers to taking care of the well being of workers by employers, trade unions, and government and non-government agencies. Recognizing the unique place of the worker in the society and doing good for him/her retaining and motivating

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employees, minimizing social evils, and building up the local reputation of the hotel are the arguments in favour of employee welfare. Hence this area has generated one more area for practicing of HR roles.

360 DEGREE PERFORMANCE APPRAISAL 360 degree appraisals are a powerful developmental method and quite different to traditional manager-subordinate appraisals. As such a 360 degree process does not replace the traditional one-toone process - it augments it, and can be used as a stand-alone development method. 360 degree appraisals involve the appraise receiving feedback from people (named or anonymous) whose views are considered helpful and relevant. 360 Feedback is a proven method of helping individuals reviews their performance through the eyes of their working colleagues. The feedback is typically provided on a form showing job skills/abilities/attitudinal/behavioral criteria and some sort of scoring or value judgment system. The appraise should also assess themselves using the same feedback instrument or form.

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BENCHMARKING Benchmarking is the process of determining who is the very best, who sets the standard, and what that standard is. In baseball, you could argue that seven consecutive World Series Championships made the New York Yankees the benchmark. It is done to motivate people to improve toward that goal. Benchmarking is usually part of a larger effort, usually a Process Re-engineering or Quality Improvement initiative. Benchmarking is a management tool that is being applied almost anywhere. Once we decide what to benchmark, and how to measure it, the object is to figure out how the winner got to be the best and determine what we have to do to get there.

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CHAPTER-3

RESEARCH METHODOLOGY

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SOURCES OF DATA Datas are the useful information or any forms of documents designed in a systematic and standardize manner which are used for some further proceedings. One of the important tools for conducting marketing research is the availability of necessary and useful data. Sometimes the datas are available readily in one form or the other and sometimes the datas are collected fresh. The sources of data falls under two categories: 1.)Primary Sources.

2.)Secondary Sources.

Secondary Data- The Secondary data was collected through the following:

Online Research material of the various Institutions/Outlets directly or Indirectly involved with the Retail Industry.

Secondary Data used in External Source of Information Like.

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# Internet # Magazine # Paper cutting OTHER SOURCES Information Sources Information has been sourced from namely, Books

Newspapers

Trade journals

White papers

Industry portals

Government agencies

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 Trade associations

Through industry news and developments.

CHAPTER-4

DATA ANALYSIS &

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OBSERVATIONS

RETAIL ANALYSIS Raising aspirations: Value added good sales

Organized retailing in B-CITIES has been largely an urban phenomenon with affluent classes and growing no. of double income households.

Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption.

Companies using their own web portals with the horizontal players like Rediff.com and Indiatimes.com to offer products on the web.

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DLF plans to invest US$4.02 billion over four years to develop about 20 large shopping malls across the countrys retail market.

Israeli

mall

developer plaza Centre NV plans to invest

US$ 1.25 billion over the next five-seven years to set up 50 malls in India.

Reliance Retail is going ahead with plans worth an investment of US$ 3.77 billion for setting up 205 stores.

IT is a tool that has been used by retailers ranging from Amazon.com to eBay radically changing the buying behavior across the globe.

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Experimentation with formats: Retailing in B-CITIES is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out. Ex. Quasi malls, sub-urban discount stores, Cash and Carry

etc.

Unorganized retailing is getting organized: To meet the

challenges of Organized retailing such as Cineplexs and malls, which are backed by the corporate houses such as Annals and PVR. The Unorganized sector is getting organized. 25 stores in Delhi under the banner of provision mart are joining hands to combine monthly buying. Bombay Bazaar and E-food mart formed which are

aggregations of Kiranas.

Emergence of discount stores: They are expected to spearhead the organized retailing revolution. Stores
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trying to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay Bazaar, RPGs etc.

CHAPTER-5

85

IMPORTANCE OF STUDY

ROLE OF HUMAN RESOURCE IN RETAIL INDUSTRY Service quality and productivity were the most crucial competitive issues facing these firms. When asked to different hotels regarding strengthening competitiveness, 50 percent choose internal management actions, including educating and training employees, with publicly announcing employee policy. And all these procedure of implementing such task is over HR shoulder. To achieve a progressive, innovative culture within organizationand to cope with the critical challenges that the future might bringhuman resources professionals are likely to assume certain roles with greater frequency. These roles are following:

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The Consultant Advisor Role:- In particular, the top human

resources executive will increasingly play a major role in advising the CEO and the top management team about the human resources implications of broad organizational strategy, both nationally and globally. Further, the human resources department will be called upon more and more advice management at all levels about the motivational, morale and legal implications of various present and proposed practices and policies. The Catalyst Facilitator Role:- The human resources

directors have a unique opportunity to serve in a catalystfacilitator role in stimulating a top management philosophy, leadership style and organizational culture and climate. It is important that management develops a clear view of these interrelated matters and that management is self-conscious about them on an ongoing basis. In addition, the human resources director can serve as a resource person about these concepts and their links to organizational outcomes such as effectiveness, efficiency, development and participant satisfaction.

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The Diagnostic Role:- By this, they are expected to identify

the underlying causes of an organizational problem as distinct from its symptoms and to come up with solutions or system for solving the problem- that correspond with the diagnosis. All too often, programs of various kinds, like job enrichment, incentives systems, and quality circles and so on, are proposed by managers or human resources people. What is usually needed is an accurate description of the problem to be solved, a careful analysis of the dynamics of that problem, and a close look at

alternative solutions and their rectifications before a program are implemented. The Assessment Role:- One of the most difficult roles for

human resources professionals is the assessment role, in which they assess the effectiveness of various human resources practices and policies. A comprehensive evaluation of the effectiveness of various human resources policies and practices is called a human resources management audit or personnel audit. These comprehensive human resources audit may be used to analyze a wide array of human resources practices and outcomes.

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BENEFITS TO THE B-CITIES CONSUMERS One has to agree that the entrance of big players will ensure the high quality of service produced and being sold to the consumers. There are other indirect benefits in terms of choice and pricing that will be passed along to the consumers as the big retailers with compete with each other for having the greater share in the market.

CHAPTER-7

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FINDINGS

MAJOR FINDINGS 1- The Retail Sector in India can be split up into two parts, the Organized and the Unorganized. The Organized sector, whose size is expected to triple in the coming years, can be further split up into departmental stores, supermarkets, shopping malls.

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2- In terms of value, the size of the retail sector in India is $300 billion. The Organized sector contributes about 4.6% to the total trade.

3- The retail sector in India contributes 10% of the Gross Domestic Product and 8% to the employment of the country.

4- In terms of growth, the FMCG retail sector is the fastest growing unit and the retail relating to household care, confectionery etc, have lagged behind.

5- The foreign retail giants were initially restricted from making investment in India. But now FDI at 51% is permitted in India only through Single branded retail outlets. Multi brand outlets are still

beyond their reach. At this point they can only enter the market through franchisees. Example, Wal-Mart had entered joining hands with Bharti Enterprises.

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6- On- line retailing is still to leave a mark on the customers due to lacunae that have already been mentioned.

7-Cultural and Regionals differences in India are the biggest challenges in front of retailers. This factor deters the retailers in India from adopting a single retail format. Hypermarket is emerging as the most favorable format for the time being in India.

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CHAPTER-8

RECOMMENDATIONS

RECOMMENDATIONS

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Looking

for

Opportunities,

developing

proposals

and

implementing projects is very time consuming in formulating the project.

1.)

The management of the organization must allocate sufficient human and financial resources if it wants the project to be successful.

2.)

Good quality project preparation pays off fine results.

3.)

Thinking before the action taking is necessary.

4.)

One has to be prcised & complete with the information.

5.)

It must be made sure that all the activities are translated into the Budget.

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CHAPTER-9

PROJECT LIMITATIONS

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PROJECT LIMITATIONS The Organized retail industry in India is faced with the stiff competition from the unorganized sector.

There is the shortage of quality Real estate and Infrastructure requirements in the country.

Opposition to Foreign Direct Investment from small traders effect retail industry.

A very high stamp duty on transfer of property affects the industry.

Shortage of retail space in central and downtown locations also hinders the growth of retail industry.

Land use conversion is time consuming and becoming complex.

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 For settling property disputes, it consumes lot of time.

Non residents are not allowed to own property except they are of Indian origin.

Inadequacies in infrastructure such as lack of high quality, road networks, power shortages and insufficient storage spaces.

Presence of strong Pro-tenancy laws makes it difficult to evict tenants and this is posing problems.

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CHAPTER-10

CONCLUSION

98

CONCLUSION For a start, this retailer does not use HR Strategies in capturing much more specific market. The retailers also need to make the substantial investment in understanding/acquiring some advanced expertise in developing more accurate and scientific demand forecasting models,HR Policies, Recruitment, Development more towards collaborative planning and replenishment should then be next on their agenda. The message, therefore for the existing small and medium independent retailers is to closely examine what changes are taking place in their immediate environment, and analyze whether their current market offers a potential redevelopment of the area into a more modern multi-option destination.

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The next effort should be to encourage retailers to make some investments in improving the interiors of their respective establishments to make shopping an enjoyable experience for the customer. As the retail marketplace changes shape and competition increases, the potential for

Improving retail productivity and cutting code decreases. Therefore, it will become important for retailers to secure a distinctive position in the market place based on value, relationships or experience. Finally, it is important to note that these strategies are not strictly independent of each other; value is a function of not just price, quality and service but can also be enhanced by Personalization and offering a memorable experience. Infact building relationships with customers can itself increase the quality of overall customer experience and thus the perceived value. But most importantly, it is critical to understand the target customers definition of value and make an offer, which not only delights the customer but also is difficult for competitors to compete.

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CHAPTER-11

BIBLOGRAPHY

101

BIBLIOGRAPHY 1. S. Namakumari Marketing Management, Macmillan

Business Book, Delhi.

2.

Philips Kotler Marketing Management, 11th Edition, Eastern Economy Edition.

3.

Ramanuj Majumdar Product Management in India 2nd Edition, Eastern Economy Edition.

4.

Christopher Lovelock Service Marketing 5th Edition, Pearson Education.

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5. Dr. S.L Gupta Sales and Distribution Management, Excel Books.

6. Business and Marketing Magazine 4Ps Business & Marketing.

7. Business Magazine Business Today.

8. Changing

Consumer

Interface

of

Market

Driven

Innovations- Report.

9. Retail Industry- Where does India stand?- Report by Sanjeev Kumar.

10Global Powers of Retailing 2006- Report by Stores Magazine, Nation.

11 Human Resource Management by V.S.P.RAO

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12 The Great Indian Retail Story- Report by Ernst & Young India.

13Indian Retail Industry- Report by www.Rocsearch.com.

14 http:// www.indianretailing.com

15 http:// www.pantaloon.com

16 http://www.google.com

17http://economywatch.com/business-and-economy/retail-industry

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