PRESENTED BY:
RANJITH.M
RAKESH C PILLAI
VIGNESH
Industry Evolution
Traditionally retailing in India can be traced to
The emergence of the neighborhood ‘Kirana’ stores
catering to the convenience of the consumers
Era of government support for rural retail: Indigenous
franchise model of store chains run by Khadi & Village
Industries Commission
1980s experienced slow change as India began to open up
economy.
Textiles sector with companies like Bombay Dyeing,
Raymond's, S Kumar's and Grasim first saw the emergence
of retail chains
Later Titan successfully created an organized
retailing concept and established a series of
showrooms for its premium watches
The latter half of the 1990s saw a fresh wave of
entrants with a shift from Manufactures to Pure
Retailers.
For e.g. Food World, Subhiksha and Nilgiris in
food and FMCG; Planet M and Music World in
music; Crossword and Fountainhead in books.
Post 1995 onwards saw an emergence of shopping
centers,
mainly in urban areas, with facilities like car
parking
targeted to provide a complete destination
experience for all segments of society
Emergence of hyper and super markets trying to
provide customer with 3 V’s - Value, Variety and
Volume
Expanding target consumer segment: The Sachet
revolution - example of reaching to the bottom of
the pyramid.
At year end of 2000 the size of the Indian
organized retail industry is estimated at Rs. 13,000
crore
Retailing formats in India
Malls:
The largest form of organized retailing today.
Located mainly in metro cities, in proximity to
urban outskirts. Ranges from 60,000 sq ft to
7,00,000 sq ft and above. They lend an ideal
shopping experience with an amalgamation of
product, service and entertainment, all under a
common roof.Examples include Shoppers Stop,
Piramyd, Pantaloon.
Specialty Stores:
Chains such as the Bangalore based Kids Kemp,
the Mumbai books retailer Crossword, RPG's
Music World and the Times Group's music chain
Planet M, are focusing on specific market
segments and have established themselves
strongly in their sectors.
Discount Stores:
As the name suggests, discount stores or factory
outlets, offer discounts on the MRP through
selling in bulk reaching economies of scale or
excess stock left over at the season. The product
category can range from a variety of perishable/
non perishable goods
Department Stores:
Large stores ranging from 20000-50000 sq. ft,
catering to a variety of consumer needs. Further
classified into localized departments such as
clothing, toys, home, groceries, etc
Department Stores:
Departmental Stores are expected to take over the
apparel business from exclusive brand
showrooms. Among these, the biggest success is K
Raheja's Shoppers Stop, which started in Mumbai
and now has more than seven large stores (over
30,000 sq. ft) across India and even has its own in
store brand for clothes called Stop!.
Hypermarts/Supermarkets:
Large self service outlets, catering to varied
shopper needs are termed as Supermarkets. These
are located in or near residential high streets.
These stores today contribute to 30% of all food &
grocery organized retail sales. Super Markets can
further be classified in to mini supermarkets
typically 1,000 sq ft to 2,000 sq ft and large
supermarkets ranging from of 3,500 sq ft to 5,000
sq ft. having a strong focus on food & grocery and
personal sales
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet
located near residential areas. They stock a limited
range of high-turnover convenience products and
are usually open for extended periods during the
day, seven days a week. Prices are slightly higher
due to the convenience premium.
MBO’s :
Multi Brand outlets, also known as Category
Killers, offer several brands across a single product
category. These usually do well in busy market
places and Metros
Retailing formats in India
Recent Trends
Retailing in India is witnessing a huge revamping
exercise as can be seen in the graph
India is rated the fifth most attractive emerging
retail market: a potential goldmine.
Estimated to be US$ 200 billion, of which
organized retailing (i.e. modern trade) makes up 3
percent or US$ 6.4 billion
As per a report by KPMG the annual growth of
department stores is estimated at 24%
Ranked second in a Global Retail Development
Index of 30 developing countries drawn up by AT
Kear
Recent Trends contd.
Traditionally:three
Unorganized factors of
Vast majority have
the plagued the retail
twelve million stores
industry:
are small "father and son" outlets
Fragmented : Mostly small individually owned
businesses, average size of outlet equals 50 s.q. ft.
Though India has the highest number of retail outlets
per capita in the world, the retail space per capita at 2
s.q. ft per person is amongst the lowest.
Rural bias: Nearly two thirds of the stores are located
in rural areas. Rural retail industry has typically two
forms: "Haats" and “Melas". Haats are the weekly
markets : serve groups of 10-50 villages and sell day-
to-day necessities. Melas are larger in size and more
sophisticated in terms of the goods sold (like TVs)
Recent changes:
Experimentation with formats: Retailing in India
is still evolving and the sector is witnessing a series of
experiments across the country with new formats
being tested out. Ex. Quasi-mall, sub-urban discount
stores, Cash and carry etc.
Store design : Biggest challenge for organised
retailing to create a “customer-pull” environment
that increases the amount of impulse shopping.
Research shows that the chances of senses dictating
sales are upto 10-15%. Retail chains like MusicWorld,
Baristas, Piramyd and Globus are laying major
emphasis & investing heavily in store design.
Recent changes
Emergence of discount stores: They are expected to
spearhead the organised retailing revolution. Stores trying
to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay
Bazaar, RPGs.
Unorganized retailing is getting organized: To meet the
challenges of organized retailing such as large cineplexes,
and malls, which are backed by the corporate house such as
'Ansals' 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 Efoodmart formed which are
aggregations of Kiranas.
Recent Trends contd
Multiple drivers leading to a consumption boom:
Favorable demographics
Growth in income
Increasing population of women
Raising aspirations : Value added goods sales
Food and apparel retailing key drivers of growth
Organized retailing in India has been largely an urban
phenomenon with affluent classes and growing number of
double-income households.
More successful in cities in the south and west of India.
Reasons range from differences in consumer buying
behavior to cost of real estate and taxation laws
Rural markets emerging as a huge opportunity for
retailers reflected in the share of the rural market
across most categories of consumption
ITC is experimenting with retailing through its e-
Choupal and Choupal Sagar – rural
hypermarkets.
HLL is using its Project Shakti initiative –
leveraging women self-help groups – to explore
the rural market.
Mahamaza is leveraging technology and network
marketing concepts to act as an aggregator and
serve the rural markets.
IT is a tool that has been used by retailers ranging
from Amazon.com to eBay to radically change
buying behavior across the globe.
e-tailing’ slowly making its presence felt.
Companies using their own web portal or tie-sups
with horizontal players like Rediff.com and
Indiatimes.com to offer products on the web.
India’s top retailers are largely lifestyle, clothing
and apparel stores
This is followed by grocery stores
Following the past trends and business models in
the west retail giants such as Pantaloon, Shoppers’
Stop and Lifestyle are likely to target metros and
small cities almost doubling their current number
of stores
These Walmart wannabes have the economy of
scale to be low –medium cost retailers pocketing
narrow margin
INTRODUCTION
Retailing is the major distribution institutions that
make the marketing system work
Consists of all business activities associated with sale
of goods and services
kerala is not a producing state for more than 90%
Requirement of people
Presnce of an organisation is essential to bring the
essential requirements from production centers
without profit motive
Sabari super Market located at the eye part of
Pathanathitta.
Run by SUPPLYCO, Govt. of Kerala
Its started on 2005 December
SUPPLYCO
SUPPLYCO is promoted by Govt. of Kerala
Largest retail chain in Kerala dealing essential
commodities
State Civil Supplies Dept. is under the exclusive charge
of Commissioner of Civil Supplies
COMPANY PROFILE
SUPPLYCO is fully owned Govt. company
Head quarters in Kochi
5 Regional marketing offices
56 sub depots
Around 1200 retail outlets
Dedicated workforce of nearly 3500
SUPPLYCO is the largest retail chain dealing in
essential commodities
Leading manufacturers of tea, coconut oil, palmolin
oil, curry powder in the branded name of Sabari
Runs festival markets during Onam, Xmas and
Ramzan seasons
SABARI SUPERMARKETS
A chain of retail self service outlets named Labham
markets and Supplyco Sabary Super Markets
Aim was to attract high and middle income groups
Provide all facilities comparable the best supermarkets
in private sector
Equipped with all modern facilities
All items are available at prices that are less than MRP
9 supermarkets and 288 suppycosabari supermarkets
Why this location is selected
The shop is situated at Pathanamthitta town
The shop is very nearer to the bus stand
The building is in the ownership of Municipality
Transportation
Bus stand is very nearer to the shop
Auto &Taxi are very easy to available.
This is very helpful to customers
These factors are very helpful to increase the sales.
Parking Facility
Shop does not have its own parking area
Promotional Activities
Not profit motive
Centralized promotional activities
Discount card/ Privilege card
Festival season : Seasonal sibsidy
Selection of employees
Centralized selection
Shop has no power to select employees
Traning
Centralized training
Training deals with product, display, sales………..
Training for computer fluency
Salary
2 permanent staffs and 5 temporary staffs
Temporary staffs are for packing
Their pay depends on packing
Average Sales
On regular day sales will be around Rs50000.
Onam season sales will be double
Maximum sales: Onam season
Minimum sales: Next month after onam
Average walking: 300
Local brands
Sabari products
Sabari Tea
Sabari coconut oil
Curry Powders,Rice,Oils, Salt etc
Sabari brand Coffee,
Matta Rice,
Iodised Salt,
Chicken Masala and Meat Masala.
THANK YOU
