EVOLUTION OF

MODERN RETAIL IN
INDIA
 Introduction:
 The word retail has its origin in French word
retaillier and means “to cut a piece’’ or “to break
bulk’.

 “Retailing is the sale of goods and services

to the ultimate consumer for personal,
family or household use.”

According to Kotler: “Retailing

includes all the activities involved
in selling goods or services to the
final consumers for personal, non
business use”
Preapred By Dr.Pooja Sharma 2
 Evolution of Indian retail Modern Formats/
Historic/Rural Traditional/Perva Government
International
Reach sive Reach Supported
Exclusive Brand
Outlets
Hyper/Super
Markets
Department Stores
Shopping Malls
PDS Outlets
Khadi Stores
Cooperatives
Convenience
Stores
Mom and
Pop/Kiranas
Weekly
Markets
Village Fairs
Melas
Source of Neighborhood Availability/ Shopping
Entertainmen Stores/Convenie Low Costs / Experience/Efficie
t nce Distribution ncy
 MODERN RETAIL SCANERIO
• EMERGING VARIOUS FORMATS

• CHANGING LIFESTYLE SCANERIO

• EMERGING AS A GLOBAL MARKET

• LIBERLISATION
 The changing Indian consumer

 The media explosion.

 Increase in disposable income.

 The rise of the great Indian middle class

 Increase in the number of earning young people

 Change in expenditure patterns

 Increase in the number of working women

5
A. Thesis: Individual retailers as corner shops all across
the country.

B. Antithesis: A position opposed to the thesis develops

over a period of time . (department store, discount
store). The antithesis is a challenge to the Thesis.

C. Synthesis: There is a blending of the Thesis and

antithesis. The result position between the thesis and
antithesis. Supermarkets and hypermarkets flourish.
This “synthesis” for the next round of evolution.

6 Prepared by Dr.Pooja
Sharma
Illustration

Antithesis Thesis

Discount Store Department Store

Discount
Department Store

7 Prepared by Dr.Pooja
Sharma
The Marketing – Retail Equation

Manufacturer Manufacturer

Wholesaler

Retailer

Retailer
Feedback

Consumer Consumer

Preapred By Dr.Pooja Sharma 8

 Prominent sector in Indian retail

1. Clothing, textiles and fashion Accessories:

2. Food & food Services:
3. Electronics & Consumer Durables:
4. Books & Music:
Other emerging sectors
5. Jewellery retail
6. Footwear retail
7. Time Wear Retail
8. Fuel Retail/ petro retail

Preapred By Dr.Pooja Sharma 9

 Size of the organized retail market (Rs Cr)

2001-02 2007 CAGR (%)

(compound Annual
growth rate)

TOTAL 16,000 37,216 18

Food 1,800 7,473 33

Clothing 4,950 10,423 16

Cons.Durables 1,650 3,787 18

Books & Music 450 1,426 26

Preapred By Dr.Pooja Sharma 10

 FUTURE OF RETAIL IN INDIA
• 2007 END WILL SEE
-Us $560m investment for retail expansion
naionwide.
-Result in 50 Hypermarkets
-305large department stores
-1500 super markets
-10,000 exclusive retail showrooms
-One third through conversion from multi brand to
exclusive outlets.
CROMA
 Elements of store design
Ext.
Frontage &
Entrance Display Parking
space

Building
architecture Location

Health &
Safety Store Access
design

Store
‘theme’

Target Merchand
Customers ise Mix
Prepared by Dr.Pooja Sharma 13
 Customer Service
Electronic Paradise

Croma is owned and run by Infiniti Retail Limited, a 100% subsidiary of Tata Sons.
Woolworths Ltd, the Australian retail giant, provides technical support and strategic sourcing
facilities from its global network.

15 CHETANA MMM IV: Retail Project – April 2009

Team Members
 Values and Purpose
Purpose

 At the Tata group our purpose is to improve the quality of life of the
communities we serve.
 We do this through leadership in sectors of economic significance,
to which the group brings a unique set of capabilities.

Core values

 The Tata group has always been a values-driven organisation.

These values continue to direct the group's growth and businesses.
 Values and Purpose
The five core Tata values underpinning the way we do business are:

 Integrity: We must conduct our business fairly, with honesty and

transparency.

Understanding: We must be caring, show respect, compassion and

humanity for our colleagues and customers around the world, and always work
for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible

standards in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the group and
with our customers and partners around the world, building strong relationships
based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the

countries, communities and environments in which we work.
 FACT FILE

 The Beginning: Launched in Juhu Mumbai on October 9, 2006, Croma

is India’s first country-wide chain of consumer electronics and durables

 Managed by Infiniti Retail, a 100 per cent subsidiary of Tata

Sons.

HISTORY AND
 Croma receives technical and strategic sourcing support from
Woolworths India, a subsidiary of Woolworths, the Australian

ACHIEVEMENTS
retail giant.

 Croma has over 180 brands and 6000 products

 Plush stores, floor space between 15,0000 to 20,000 sq.Feet

 30 Stores currently located in 10 cities.

 FACT FILE
 The store: The large format stores offer products in eight
categories — large appliances, home entertainment, small
appliances, computers and peripherals, communication, music
and movies, imaging and gaming software.

 Customers get to make choices from a large range and more

brands in electronic products and appliances, and white goods.

The spread: Currently there are 30 stores in ten cities

HISTORY AND
(Mumbai, Pune, Ahmedabad, Vadodara, Surat, Bengalooru,
Delhi, New Delhi, Greater Noida, Hyderabad).
ACHIEVEMENTS
 Why Croma
 WIDEST RANGE OF PRODUCTS
Choose from 6000 products across eight categories
 WE HELP YOU BUY
Sound and knowledgeable advice from well-trained advisors to help you make informed
buying decisions.
 A NAME YOU CAN TRUST
Croma is promoted by Infiniti Retail Ltd, an initiative of the Tata group, a brand that stands for
trust and reliability globally
 CUSTOMER COMMITMENT
Croma not only gives you a world-class shopping experience, but also backs it with great after-
sales service.
 GREAT DEALS AND OFFERS
Croma periodically offers exciting deals on all your favourite products
 A FIRST OF ITS KIND
Consumer electronics and durable retail is a fragmented segment and has been largely
catered to by regional players
 CROMA IS THE LARGER FORMAT
Large-format, specialist retail chain for consumer electronics and durables
 The customer Decision Making process

M
– edia
Pr
& int
ret nI AV
n
te Searc Evalua
Need h for tion
Store
Store Purchase
recog Infor of
visits
visits decision
nized matio option
Fa n s
y & mi
Fr l
i
ds en
S
rot
se

Prepared by Dr. Pooja Sharma 22

Stage 1 Identification of a need for the Product or service. this
arises when the consumer becomes aware of his
need for a particular product or services.

Stage 2 Search For Information: the second steps where

consumer seeks information from the various
sources available.

Stage 3 Evaluating Alternatives: these evaluating criteria

are used by consumers use to consider different
options. This would vary from person to person
and may be influenced by the situation.

Stage 4 The Purchase Decision: at this stage is made about

first , whether to buy or not.

Prepared by Dr. Pooja Sharma 23

 Store Location
CROMA
Ground Floor,
Vasundhara CHS,
Opp Utpal Shanghvi School,
JVPD, Vile Parle (W),
Mumbai 400049.
Phone: +91 22 6710 3333
‘Croma’- Enhanced Shopping Experience

Typical Grid Layout

 Merchandising
• What is Merchandising
– Ensure sales thru product visibility
– Presented in an appealing, 'sellable' way
–
–
Placement
Pricing
Customer Service
 Products
Large Appliances

Imaging Small Appliances

Home Entertainment Computers

Product Category

Gaming Music & DVD

Mobile phones
 Products
 Large Appliances –Refrigerators, AC, Washing Machines

 Small Appliances –Microwave, Kitchen Appliances, Vacuums, Security,

Lighting, Personal Care, Irons.

 Computers - Notebooks, Desktops, Storage Media, Softwares.

 Music & DVD - Audio & Video CDs/DVDs

 Communications- PDA’s Phones Mobile, Phones Fixed, Phones Mobile

Accessories

 Gaming - Gaming Hardware, Gaming Software

 Home Entertainment –Home theatre, T. V (Plasma, LCD), DVD players

 Merchandising
Placement
Distinct differentiation: Separate levels
Level wise: Sub categorization / Brands
Pricing
Customer Service
Branded Products
Mid to high price range
Visual merchandising

31
 METHODS OF DISPLAYS

Color Dominance
Co-ordinated
Presentation
Presentation by price

Co-ordinated
Presentation

Prepared by Dr.Pooja Sharma 32

 Merchandising: Tie-ups & Promotions

Cross branding
Reward Offers:
Effective March 03 up to March 31, 2009 Jet Privilege
members can now enjoy exclusive discounts while they
shop at any of the Croma stores located in Gujarat,
Karnataka, Maharashtra, Andhra Pradesh and North
India.
 Merchandising: Tie-ups & Promotions

Cash back
Croma has introduced a Cash back
offer for all Mastercard customers,
the beauty of this offer is that it is
applicable to all cards, debit or
credit, for all banks, as long as the
card is affiliated to Mastercard.
However, it is only valid on
purchases above Rs.5000.

In addition to this, if you shop on a

Mastercard, you are automatically
enrolled to a lucky draw where you
can win a Tata Indica Xeta, a Trip to
Goa etc.
 Merchandising: Tie-ups & Promotions

FORTUNE KEY
Infinity Retail I Ltd: Croma launched its 9th store in
Bombay at Phoenix Mills, on 31st Dec’08. Apart
from a host of inaugural offers, a week long
FORTUNE KEY activity was conducted wherein
anyone making purchases at the Croma store
were entitled to a fortune key which would unlock
boxes containing LCDs, digicams, mp3 players,
toasters, steam irons, GVs, watches and more…...
2008:
Christmas Roadshow
Infinity Retail I Ltd: A 3 day Christmas Roadshow
from 23rd Dec’08 to 25th Dec’08 consisting of a
Santa house, sleigh, reindeers, Christmas tree
and of course a firangi Santa too. This was held in
Navi Mumbai and several places in Bombay
starting from Dahisar to Bandra.
Merchandising: Tie-ups & Promotions

In shop promotions

Auctions
Part of the Revolution
Sale, auctioning of 3
products at all CROMA
outlets in the Western
Region.Auction were
made
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Outdoor: Bus Shelter
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 Achivements

Croma conferred with the 'Most Admired Retailer of the Year' award at India Retail Forum 2008

Executive Vice President, Lowe, Tarun Chauhan says, "At the end of the day, a consumer
walks into a store and buys a brand thats available anywhere else. It's how you create the
differentiator, thats the challenge and I think our attempt has been to create the difference - an
experience than price or product itself."

* National Brand: ‘Croma’ is India’s first nationwide Electronic Mega Store offering a unique
shopping experience that is consistent across the country

“We get around 1,300 customers every week at our Mumbai stores on normal days and 2,700
customers on weekends. The stores will be a success since our concept is not to sell but to
help you buy. We suggest products to our customers after inquiring about their needs and not
just sell brands to them,” Joshi added.
 Competitors

LA- Kozy Vijay Sales

Sony Mony