RETAIL FORMATS IN INDIA
An Overview of Our Project:
Submitted To:
Prof. Abinandan
Chakraborty
Abhinandan.chakraborty@i
tmuniversity.ac.in
Submitted By:
•Swaraj Madan
(BCMI1CF15005)
•Shiny Surbhi
(BCMH1CF15033)

FACTS ABOUT RETAIL INDUSTRY IN INDIA:
 Retailing in India is one of the pillars of its economy
and accounts for 14 to 15 per cent of its GDP
 Fifth largest in the world
 Fastest growing industry in the country, expected
growth rate 25%-30% annually
 Mostly the industry in unorganized due to huge
difference in taste and demands
 The industry is getting more popular nowadays and
becoming organized also in terms to serve the needs
of customers

CHALLENGES FACED BY RETAIL INDUSTRY IN INDIA:
 Automatic approval is not allowed for foreign investment in retail
 Regulations restricting real estate purchases, and cumbersome
local laws
 Taxation, which favours small retail businesses
 Absence of developed supply chain and integrated IT
management
 Lack of trained work force
 Low skill level for retailing management
 Lack of Retailing Courses
 Intrinsic complexity of retailing – rapid price changes, constant
threat of product obsolescence and low margins
3

RETAIL
INDUSTRY
UNORGANIZED
ORGANIZED

UNORGANIZED:

MOM & POP STORES:
Generally family-owned businesses catering
to small sections of society
Owned and operated by individuals
Range of products are very selective and few
in numbers
These stores are known for their high
standards of customer service

PEDDLERS AND HAWKERS
 Hawker: An individual who sells wares by carrying them through the
streets
 person's ordinary methods of attracting attention include addressing the
public, using placards, labels, and signs, or displaying merchandise in a
public place
 A peddler is defined as a retail dealer who brings goods from place to
place, exhibiting them for sale
 he does not have a fixed place of conducting business, but regularly
carries the goods for sale with himself
 he or she does not have a fixed place of conducting business, but
regularly carries the goods for sale with himself or herself`

MARKET TRADERS & STREET TRADERS
A Street market is an outdoor market such as
traditionally held in a market square or in a
market town, and are often held only on
particular days of the week
Very similar markets, or bazaars can also be
found in large enclosed spaces, instead of on
a street

ORGANIZED:

10
 A typical specialty store gives
attention to a particular category
and provides high level of service
to the customers
 For example if a customer visits
a Reebok or Gap store then they
find just Reebok and Gap
products in the respective stores.
 A retailer of such store carries
variety of categories and has
broad assortment at average
price & offer considerable
customer service
 For example: Food World in
Bangalore
SPECIALTY STORES: DEPARTMENT STORES:

11
 Offers extensive assortment of
merchandise at affordable and
cut-rate prices
 Normally retailers sell less
fashion-oriented brands
 The service is inadequate
 For example: The Loot
 Is essentially found in residential
areas
 Provide limited amount of
merchandise at more than
average prices with a speedy
checkout
 Store is ideal for emergency and
immediate purchases
 For Example: Reliance Fresh
DISCOUNT STORES: CONVENIENCE STORES:

12
 Provides variety and huge volumes
of exclusive merchandise at low
margins
 Operating cost is comparatively less
than other retail formats
 For Example: Dmart , Big Bazaar,
Trent, Landmark, Star Bazaar
 a self service store consisting
mainly of grocery and limited
products on non food items
 may adopt a Hi-Lo or an EDLP
strategy for pricing
 supermarkets can be anywhere
between 20,000-40,000 square
feet
 For Example: SPAR™
supermarket
HYPERMARKETS: SUPERMARKETS:

13
 Has a range of retail shops at a
single outlet
 Endow with products, food and
entertainment under a roof
 For Example: Inorbit Mall,
Ambience Mall.
 Supplying wide assortment in a
single category for lower prices a
retailer can "kill" that category for
other retailers
 The products are displayed at the
center of the store and sales
person will be available to address
customer queries and give
suggestions when required
 For Example: Pai Electronics store
in Bangalore.
MALLS: CATEGORY KILLERS

 Customer can shop and order
through internet and the
merchandise are dropped at the
customer's doorstep
 Format is ideal for customers who
do not want to travel to retail stores
and are interested in home
shopping
 For Example: Amazon and Ebay
 An automated piece of equipment
wherein customers can drop in the
money in machine and acquire the
products
 This system is currently not widely
used in India
 For example: Soft drinks vending
at Bangalore Airport
E-TAILERS: VENDING MACHINES:

QUESTIONNARE
NAME: ________________________ CONTACT NO: ________________________
Q1. What is your Gender?
 Male
 Female
Q2. What is your Age?
 Under 18
 19-35
 36-50
 Above 50
Q3. What is your Job?
 Private
 Govt
 Business
Q4. Are you aware of organised and unorganised sector?
 Yes
 No
Q5. What kind of retail store do you like to prefer?
 Organised
 Unorganised
Q6. If Organised then Why?
 Variety
 Better Service
 Assortment Of Product
 Economical
 Convenient
 Quality
 Flexibility Payment

Q7. If Unorganised then why?
 Convenient
 Home Delivery
 Credit Facility
 Any Other
Q8. How did you make your most recent purchase?
 Online
 Phone
 Mail/Catalogue
 Dealer
 Any other (Please Specify)
Q9. Do you plan to buy from Organised Sector and Unorganised Sector?
 Yes
 No
Q10.What do you shop often and from where?
DAILY WEEKLY FORTNIGHT MONTHLY ORGANISED UNORGANISED
VEGETABLES
GROCERRY
FMCG PRODUCTS
CLOTHES
UTENSILS
HOME APPLIANCES
(Note: Please tick in Organised and Unorganised from where you buy)

Organised Retail Unorganised Retail
PARAMETERS 1 2 3 4 5 1 2 3 4 5
Price
Quality
Variety
Location
Service
Assortment
Offers
Relationship
Ambience
Home Delivery
Q11. Kindly rate the parameters of an Organised Retail and Unorganised Retail upon
you preferences? (1-poor & 5-Best)