Emerging Retail Trends in India

India represents an economic opportunity on a massive scale, both as a global base and as a domestic market. Indian Retail sector consists of small family-owned stores, located in residential areas, with a shop floor of less than 500 square feet. At present the organized sector accounts for only 2 to 4% of the total market although this is expected to rise by 20 to 25% by next 3 years.

Retail growth in the coming five years is expected to be stronger than GDP growth, driven by changing lifestyles and by strong income growth, which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid. Growing consumer credit will also help in boosting consumer demand.

The structure of retailing will also develop rapidly. Shopping malls are becoming increasingly common in large cities, and announced development plans project at least 150 new shopping malls by 2008. The number of department stores is growing much faster than overall retail, at an annual 24%. Supermarkets have been taking an increasing share of general food and grocery trade over the last two decades.

However, Distribution continues to improve, but it still remains a major inefficiency. Poor quality of infrastructure, coupled with poor quality of the distribution sector, results in logistics costs that are very high as a proportion of GDP, and inventories, which have to be maintained at an unusually high level. Distribution and marketing is a huge cost in Indian consumer markets. It’s a lot easier to cut manufacturing costs than it is to cut distribution and marketing costs.

Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in recent years, while retailing currently remains closed to FDI. However, the Indian government has indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It has allowed 51% FDI in “single brand” retail.

The next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that will not be for long. Indian companies know Indian markets better, but foreign players will come in and challenge the locals by sheer cash power, the power to drive down prices. That will be the coming struggle. This report discusses the scenario of organized retail industry in India and the opportunities available for companies based on key statistics.

The revolution in retailing industry has brought many changes and also opened door for many Indian as well as foreign players. In a market like India there is a constant clash between challenges and opportunities but chances favour those companies that are trying to establish themselves. So to sustain in a market like India companies have to bring innovative solutions. Indian market has potential to accommodate many retail players, because still a small proportion of the pie is organized.

This paper discusses the challenges like merchandising mix, retail differentiation, supply chain management and also competition from supplier’s brand in the Indian perspective.

1.2 Fact about Indian retail sectorRetailing is still in its infancy in India. In the name of retailing, the unorganized retailing has dominated the Indian landscape so far. According to an estimate the unorganized retail sector has 97% presence where as the organized accounts for merely 3%. Industry has already predicted a trillion dollar market in retail sector in India by 2010. However, the retail industry in India is undergoing a major shake-up as the country is witnessing a retail revolution. The old traditional formats are slowly changing into more complex and bigger formats. Malls and mega malls are coming up in almost all the places be it – metros or the smaller cities, across the length and breadth of the country.

A McKinsey report on India (2007) says organized retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 7.5%, the share of employment of retail in India is low, even when compared to Brazil (14%), and Poland (12%). Government of India’s plan of changing the FDI guidelines in this sector speaks of the importance attached to retailing. Recently moves by big corporate houses like Reliance Industries has further fuelled the major investments in retail sector. A strategic alliance, land acquisitions in prime areas give the essence of the mood in this sector.

Both MNCs and Indian firms want to get their share of this burgeoning pie. Notable in Indian firms are Pantaloons Retail & Big Bazaar, Trent’s Westside, Shopper’s stop, Reliance and Subhiskha, Wills Lifestyle stores, Café Coffee Day, which are present in India in different retail formats. Wal-Mart stores have just started operations in India. Some leading retail coffee chains of the world like Starbucks, Barnies are planning to expand in a major way in India.

1.3- THE INDIAN RETAIL SECTORIndia is the country having the most unorganized retail market. Traditionally it was a family’s livelihood, with their shop in the front and house at the back, while they run the retail business. More than 99% retailer’s function in less than 500 square feet of shopping space. Global retail consultants KSA Technopak have estimated that organized retailing in India is expected to touch Rupees 48,000 crore in the year 2007-08. The Indian retail sector is estimated at around Rupees 900,000 crore, of which the organized sector accounts for a mere 2 per cent indicating a huge potential market opportunity that is lying in the waiting for the consumer-savvy organized retailer. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewellery, are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer.

Indian retailers need to advantage of this growth and aiming to grow, diversify and introduce new formats have to pay more attention to the brand building process. The emphasis here is on retail as a brand rather than retailers selling brands. The focus should be on branding the retail business itself. There is no doubt that the Indian retail scene is booming. A number of large corporate houses -Tata’s, Raheja’s, Piramals’s, Goenka’s – have already made their foray into this arena, with beauty and health stores, supermarkets, self-service music stores, new age book stores, every-day-low-price stores, computers and peripherals stores, office equipment stores and home/building construction stores. Today the organized players have attacked every retail category.

The Indian retail scene has witnessed too many players in too short a time, crowding several categories without looking at their core competencies or having a well thought out branding strategy. The growth rate of super market sales has been significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. With growth in income levels, Indians have started spending more on health and beauty products. Here also small, single-outlet retailers dominate the market. In recent years, a few retail chains specialized products have come into the market. Although these retail chains account for only a small share of the total market, their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products.

Numerous clothing and footwear shops in shopping centers and markets operate all over India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. With rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time. Despite the large size of this market, very few large and modern retailers have established specialized stores for products.

There seems to be a considerable potential for the entry or expansion of specialized retail chains in the country. The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. A strong impetus to the growth of retail industry is witnessed by economic boom and driver of key trends in urban as well as rural India.

1.4 Key Trends in Urban India* Retailing in India is witnessing a huge revamping exercise.

* Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion.

* India is rated the fifth most attractive emerging retail market: a potential goldmine* Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney.

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

1.5- Key Trends in Rural India* 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.

1.6 The Hidden ChallengesModern retailing is all about directly having “first hand experience” with customers, giving them such a satiable experience that they would like to enjoy again and again. Providing great experience to customers can easily be said than done. Thus challenges like retail differentiation, merchandising mix, supply chain management and competition from supplier’s brands are the talk of the day. In India, as we are moving to the next phase of retail development, each endeavor to offer experiential shopping. One of the key observations by customers is that it is very difficult to find the uniqueness of retail stores. The problem: retail differentiation.

The next problem in setting up organized retail operations is that of supply chain logistics. India lacks a strong supply chain when compared to Europe or the USA. The existing supply chain has too many intermediaries: Typical supply chain looks like:- Manufacturer – National distributor – Regional distributor – Local wholesaler – Retailer – Consumer. This implies that global retail chains will have to build a supply chain network from scratch. This might run foul with the existing supply chain operators. In addition to fragmented supply chain, the trucking and transportation system is antiquated. The concept of container trucks, automated warehousing is yet to take root in India. The result: significant losses/damages during shipping.

Merchandising planning is one of the biggest challenges that any multi store retailer faces. Getting the right mix of product, which is store specific across organization, is a combination of customer insight, allocation and assortment techniques.

The private label will continue to compete with brand leaders. So supplier’s brand will take their own way because they have a established brand image from last decades and the reasons can be attributed to better customer experience, value vs. price, aspiration, innovation, accessibility of supplier’s brand.

1.7 Strategies for Retailing1: Right Positioning -:The effectiveness of the mall developer’s communication of the offering to the target customers determines how well the mall gets positioned in their minds. At this stage, the communication has to be more of relative nature. This implies that the message conveyed to the target customers must be effective enough in differentiating the mall’s offering from that of its competitors without even naming them. The message should also clearly convey to the target audience that the mall offers them exactly what they call the complete shopping-cum-entertainment point that meets all their expectations.

The core purpose is to inform the target customers about the offering of the mall, persuade them to visit the mall and remind them about the mall. The mall developer can create awareness about the offering among the target customers in a number of ways. Various communication tools available to the mall developer for this purpose may include advertising, buzz marketing, celebrity endorsement, use of print media, press releases and viral marketing .Once the message is being conveyed through these channels, the mall developer must add a personal touch to his message by carrying out a door-to-door campaign in order to reinforce the message.

2: Effective Visual Communication-:Retailer has to give more emphasis on display visual merchandising, lighting, signage’s and specialized props. The visual communication strategy might be planned and also be brand positioned. Theme or lifestyle displays using stylized mannequins and props, which are based on a season or an event, are used to promote collections and have to change to keep touch with the trend. The merchandise presentation ought to be very creative and displays are often on non-standard fixtures and forms to generate interest and add on attitude to the merchandise.

3: Strong Supply Chain-:Critical components of supply chain planning applications can help manufacturers meet retailers’ service levels and maintain profit margins. Retailer has to develop innovative solution for managing the supply chain problems. Innovative solutions like performance management, frequent sales operation management, demand planning, inventory planning, production planning, lean systems and staff should help retailers to get advantage over competitors.

4: Changing the Perception-:Retailers benefit only if consumers perceive their store brands to have consistent and comparable quality and availability in relation to branded products. Retailer has to provide more assortments for private level brands to compete with supplier’s brand. New product development, aggressive retail mix as well as everyday low pricing strategy can be the strategy to get edge over supplier’s brand.

In their preparation to face fierce competitive pressure, Indian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing Positioning, to communicate quality as well as value for money. Sustainable competitive advantage will be dependent on translating core values combining products, image and reputation into a coherent retail brand strategy.

The Indian Story10th largest economy in the world based on GDP.

7.5% GDP growth forecasted over 2005-2007.

Real estate sector growing at 30% per annum and one of the largest employer – a key contributor to GDP.

Residential market is 80% of the total real estate marketGap between supply and demand in residential market is 41 billion sq.ft.

Office space demand of 66 million sq.ft. for IT industry over next 5 years.

Real Estate in India projected to be USD 50 billion in 2008.

Organized retail space demand of 40 million sq.ft. over next 3-4 years.

India is ranked the 5th largest retail destination across the globe.

Consumerism – the order of the day, which is fueling the growth in both the commercial as well as the retail sector.

Globalization of Indian Economy.

Indian Retail Scenario :Total Private Consumption Expenditure in India – 375 Billion USDRetail Sale – 205 Billion USD (55%)Organized Retail – 6.2 Billion USD (3%)Retailing – 35% of GDPOutlet Estimates – Over 12 MillionFormat – Only 4% larger than 500 sq.ft.

Second Largest Employer after Agriculture1.8 Retailing in India :Emergence of modern retail formats.

Increased pressure on opening up FDI in retail sector.

Rapid Evolution of New-age Young Indian Consumers.

Rapidly increasing middle class.

Rising Incomes levels.

Increased Awareness Level among Consumers.

Exposure to International Brands.

Retail Space is no more a constraint for growth.

Malls in India:A year ago – 40-50 malls.

Today – 1000-1050 malls.

2 years from now – 3000-5000 malls.

Barriers:Barriers to FDI which limits entry of global players and limits exposure to best international practices.

Lack of industry status which restricts financing and therefore the growth and scaling is limited.

Poor Infrastructure which restricts retail growth, creates supply chain bottlenecks and increases wastage of farm produce.

Retail the largest private industry globally, is still in its nascent stages in India-FACT ABOUT RETAIL SECTORIN INDIA RETAIL SECTORRetailing formats in IndiaIndia’s number of Domestic grocery chains and Early Foreign Entrant2: Objective and Scope :Retailing in India is witnessing a huge revamping exercise as can be seen in the graphIndia 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 billionAs 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 Kearney.

Retail Sales in India2.2 Recent Trends counted :Traditionally three factors have plagued the retail industry:Unorganized: Vast majority of the twelve million stores are small “father and son” outletsFragmented: Mostly small individually owned businesses, average size of outlet equals 50 sq.ft.. Though India has the highest number of retail outlets per capita in the world, the retail space per capita at 2 sq. 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.

Example- Quasi-mall, sub-urban discount stores, Cash and carry etc.

Store design: Biggest challenge for organized retailing to create a “customer-pull” environment that increases the amount of impulse shopping. Research shows that the chances of senses dictating sales are up to 10-15%. Retail chains like MusicWorld, Baristas, Piramyd and Globus are laying major emphasis & investing heavily in store design.

Emergence of discount stores: They are expected to spearhead the organized retailing revolution. Stores trying to emulate the model of Wal-Mart.

Example-. Big Bazaar, Bombay Bazaar, RPGs.

Unorganized retailing is getting organized: To meet the challenges of organized retailing such as large complexes, 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.

2.3- Major RetailersIndia’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 Wal-Mart wannabes have the economy of scale to be low -medium cost retailers pocketing narrow margin.

Turnover and Outlet Details of The Major Retailers in IndiaIndian Organized Retail is set to explode with Food & Lifestyle retail as major segments.

(Table 1.5)Diagram showing Various Products and their Share in Retail2.4 Future direction: PositivesAs estimated India’s total retail market at US$ 202.6 billion which is expected to grow at a compounded 30 per cent over the next five years.

With the organized retail segment growing at the rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current US$ 7.7 billion to US$ 24 billion by 2010.

The share of modern retail is likely to grow from its current 2 per cent to 15-20 percent over the next decadeOver next two years India will see several Indian retail businesses attaining a critical mass as growth in the industry picks up momentum driven by two key factors:Availability of quality real estate and mall management practicesConsumer preference for shopping in new environmentsWal-Mart : huge plans for India. Moving a senior official from its headquarters in Bentonville, Arkansas, to head its market research and business development functions pertaining to its retail plans in India.

New York-based high-end fashion retailer Saks Fifth Avenue has tied up with realty major DLF Properties to set up shop in a mall in New Delhi.

Tommy Hilfiger, retailer of apparels, expects to open one store each in Delhi, Ahmedabad, Lucknow and Bangalore in the next four months.

2.5- Various Retail FormatsDepartment store: Large retail store offering a variety of services and merchandise, organized in separate departments. Occupy prominent positions in the heart of town or as anchor stores in out-of-town malls eg. Shopper’s Stop.

Supermarket: A store that sells a wide variety of goods including food, medicine and household products. Often part of a chain that owns or controls other supermarkets in the same or other towns; thus going for economies of scale. The chains are often supplied from the distribution centers of a larger business eg. FoodWorld.

Hypermarket (from the French term hypermarche) : A store that combines a supermarket and a department store. A gigantic retail facility that carries a big range of products under one roof, including fresh groceries and apparel. When planned, constructed and executed correctly, hypermart caters to all routine weekly shopping needs in one trip e.g. Big Bazaar.

Category killers: Large format stores that specialize in a narrow line of merchandise eg. Vivek, Vijay Sales.

Convenience: 24X7 convenience stores situated close to homes to generate high footprints. Convenience carry a limited stock of daily use goods with a special focus on food products eg. In & Out petrol pump outlets.

Specialty malls: Consortium of retailers that carry a certain category of products. They are usually situated some distance from the city centre. Consumers have to make a special visit to pick up the goods. eg, Gold, Wedding Souk.

(Picture 2.1)(An Inside View of Big Bazaar)2.6- FDI in Retail Sector:Retailing is the largest private sector industry in the world economy with the global industry size exceeding $6.6 trillion and a latest survey has projected India as the top destination for retail investors. And the further upsurge is anticipated in the retail sector as the Government of opened up 51% FDI in single brand retail outlets. And as the government is in a process to initiate a second phase of reforms, it is cautiously exploring the avenues for multi-brand segment. The Government is seeking for these options keeping in view the existing social framework of India and the will ensure that the entry of global retail giants do not displace the existing employment in the retail business.

Industry experts are sensitive to the point that local markets have an edge over the retail investors in India as they have unique advantages such as an understanding of local needs and extended service like home delivery. As the FDI influence on the Indian retail sector sets in, the total size of the retail trade is expected to grow extensively in the coming years and the consumer segments patronizing the big malls will create frenzy for organized retailing predicting a growth of 25-30 per cent per annum over the next decade. Moreover, Indian retail chains would get integrated with global supply chains since FDI will bring in technology, quality standards and marketing thereby, leading to new economic opportunities and creating more employment generation.

Industry trends for retail sector indicate that organized retailing has major impact in controlling inflation because large organized retailers are able to buy directly from producers at most competitive prices. World Bank attributes the opening of the retail sector to FDI to be beneficial for India in terms of price and availability of products as it would give a boost to food products, textiles and garments, leather products, etc., to benefit from large-scale procurement by international chains; in turn, creating jobs opportunities at various levels.

As foreign investors exploring their potentials in the retail sector, are keen on developing malls in India, the size of organized retailing is expected to touch $30 billion by 2010 or approximately 10 per cent of the total. This has initiated market-entry announcement from some retailers and has signaled to international retailers about India’s seriousness in promoting the sector. While there are reports of international retailers like Wal-Mart analyzing business opportunities in India; Reliance, the largest Indian conglomerate is investing $3.4 billion to become India’s largest contemporary retailer. There are also reports of investments for ‘Hypercity Retail’ by K.Raheja Group to establish 55 hypermarkets by 2015. All these factors will contribute in taking Indian retail business to unexpected growth based on the consumer preference for shopping in congenial environs and also availability of quality real estate.

3.Limitations of the study:Despite of all possible efforts to make analysis more comprehensive and scientific, a study of the present kind is bound to have certain limitations. They are as follows:It was difficult to meet the customers and employee who were scattered and also working. Therefore the collection of data is limited to 80 respondents residing in various parts of retail outlets of the city.

Some of these respondents were non-cooperative in nature; therefore the view expressed by the respondents may be biased.

Time constraint- The personnel could not devote much of their office time to give the required information.

Knowledge constraint – some technical terms were beyond the understanding.

4: Theoretical PerspectiveThe India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry.

The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centers, multi-storied malls and the huge complexes that offer shopping, entertainment and food all under one roof.

A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry.

In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favorable and the emerging technologies facilitating operations.

GROWTH AND EMERGING TRENDS-:As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India areLow share of organized retailingFalling real estate pricesIncrease in disposable income and customer aspirationIncrease in expenditure for luxury items(CHART)(Table 1.6)

Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life – Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing rejuvenation as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.

The retailing configuration in India is fast developing as shopping malls are increasingly becoming familiar in large cities. When it comes to development of retail space specially the malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is studied it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in the Tier II cities. The government of states like Delhi and National Capital Region (NCR) are very upbeat about permitting the use of land for commercial development thus increasing the availability of land for retail space; thus making NCR render to 50% of the malls in India.

(Table 1.7)Emerging trends in Indian organized retail sector:The emerging trends in the Indian organized retail sector would help the economic growth in India.

There is a fantastic rise in the Indian organized retail sector in a very short period of time between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector, India has a chance of tremendous economic growth, both in India and abroad.

The emerging trends in the Indian organized retail sector are also adding up to the development of the Indian organized retail sector. The relaxation by the government on regulatory controls on foreign direct investments has added to the process of the growth of the Indian organized retail sector.

The infrastructure of the retail sector will evolve radically in the recent future. The emergences of shopping malls are increasing at a steady pace in the metros and there are further plans of expansion which would lead to 150 new ones coming up in India by 2008. As the count of super markets is going up much faster than rate of growth in retail sector, it is taking the lions share in food trade.

The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people’s lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector.

The success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities.

With the arrival of the Transnational Companies (TNC), the Indian retail sector will undergo a transformation. At present the Foreign Direct Investments (FDI) is not encouraged in the Indian organized retail sector but once the TNC’S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India.

The trends to follow in the future:The Indian Organized retail sector will grow up to 10% of total retailing by 2010.

No one single format can be assumed as there is a huge difference in cultures regionallyThe most encouraging format now would be the hypermartsThe hypermart format would be further encouraged with the entry of the TNCs.

5: Methodology and Procedure of WorkRESEARCH DESING -:Research process consists of a serious of actions or steps necessary to effectively carryout research and the desired sequencing of these steps.

defining the research problemspecifying research objectivepreparing research designdata collection methodselecting the sample type or sourcedetermining the sample sizeorganizing and carry out the field workanalyzing the collected information9. Conclusions and suggestions to the companyStatement of Research Problem/Problems:This report discusses the scenario of organized retail industry in India and the opportunities available for companies based on key statistics. As now days the Indian retail sector is merging with the big players like MNCs and these mergers are bringing the new trends in the retail sector of India. So to find out these emerging trends the research process is set to figure out the factors and new emerging trends of retail sector.

2. Objectives of the study:The main objective of study is to find out that how Indian retail sector emerging.

The secondary objectives are-:1- To find out the opinion of the customers towards the merging retail markets.

2- To get a meaningful idea about what kind of emerging trends can help to grow the Indian retail market more frequently.

Scope of the study:The study covers all the aspects of retail sector and emerging trends in retail, to find out the structure of retailing, economic opportunity scale, both as a global base and as a domestic market.

And most of all which are trends which have been already adapted by the Indian retail sector.

Type of Research-This is a market research with special reference to retail sector and emerging new trends.

Sampling TechniqueRegular employee.

Customer of organized and unorganized retail outlets.

c) Sample Size:The sample size has been fixed to 155.

Sample unit -The sample unit is based on random sampling but mainly considered unit are-Customer of organized retail outlets, and the unorganizedd) Tool for collection of dataA structured questionnaire, secondary data, interviewing technique.

e) Method of collecting dataInterview method with the help of structured questionnaire.

The respondents were clarified whenever they had not understood the importance of each data.

Observation method used in organized outlets. And secondary data used for guidance.

Method of analysis :Each data is analyzed with the help of-Percentage response.

Corresponding graphs are made use of each data is evaluated and findings are recorded.

The hypothesis is tested, conclusion is drawn, and suggestions are made.

6.- ANALYSIS OF DATAWhere you prefer to do shopping generally.

Organized Stores (retail malls) (B) Unorganized stores ( departmental store or kirana store)Interpretation:68% People prefer to shopping from Organized retail malls and only 32% prefer to shopping from Unorganized sector this show that retail sector emerge very fast. People start to shift from unorganized to organized sector.

2- How frequently you visit any retail outlet?Ones in a month2 -3 times in a month4-5 times in a monthMore than 5Interpretation:Above graph show that maximum % of people visit the retail mall 2to 3 time in a month so that this show it’s a good number of people those visited malls frequently , it show interest to purchasing through retail malls developing rapidly.

3- The main purpose to visiting the retail mall?ShoppingEntertainmentBothInterpretationThis show that 40% people prefer retail malls as a shopping destination and 30% for as a entertainment purpose and 30% for both purpose. It mean retail malls position them properly people are not only coming in shopping malls for time pass they also coming here to purchasing.

4- The level of satisfaction you feel after the shopping from the retail outlet?Highly satisfiedPartial satisfiedNot satisfiedHighly dissatisfiedInterpretation-This show that 45% people are satisfied after using organized retail malls and 35% are partially satisfied it mean that retail sector need to more improvement in their services so that they can more satisfied their customers.

5- Where do you rate the service of these stores?GoodBadPoorvery badInterpretation:65% of customer say that the service rating of the retail malls are good this is a good indication that retail sector trying to attract customers by providing them good quality. This help to improve the number of customer visit the malls.

6. What thing attracts you more in retail malls?Discounting storeFood courtMultiplexAmusement parkInterpretation: 35% of people prefer that discounting store are more attract them to come in retail malls, actually these big organized retail malls make their inventories directly through manufacturer so they remove all mediator and this benefit transfer to customers and this is the thing by which these retail malls are able to do good discount which attract the customers. This help to emerging the retail sector.

Please rate the following statements.

Very dissatisfied 2. Dissatisfied 3. Neither satisfied nor Dissatisfied4. Satisfied 5. Very SatisfiedQ7. Overall how satisfied are you with shopping from retail malls.

Interpretation-Maximum % customer are more satisfied after shopping through retail malls while only 11% customers are not satisfied by that. This show People start to shift unorganized to organized stores for their shopping.

8-Overll all how satisfied are you with this mall as a entertainment destination?Interpretation-38% people are satisfied after using malls as a entertainment destination even 10% are highly satisfied by that.22% have neutral opinion. This show that malls are success to attract their customers by different entertainment sources. This show that retail trend also emerge as a entertainment destination.

9- Overall how satisfied are you with variety of merchandise from retail malls.

Interpretation-36% people are very satisfied and 40% are satisfied by that and only 4% are neutral. This show that people are attract by merchandise of retail malls it mean organized malls are more satisfied their customers by providing them verity of products. They provide proper segmentation of their product according to various parameters.

10- Overall how satisfied are you with Behavior of the retailers from retail malls.

Interpretation-35% of people are very satisfied while 37% are satisfied with retailers behavior. This mean these retail malls are more conscious for their behavior towards customers. This help to develop customer relationship management and retaining the customers. More customers satisfied more customer attract to move towards shopping malls. And which show booming or emerging of this sector.

8.Summary of the Project Report :After this Market Research the things which come forward are that shopping behavior of people is changing continuously. People start to move from unorganized store to organized retail malls. There are several reason for that which we have find after this research like the satisfaction level is high for organized stores because these stores provide more facilities and a organized merchandise. These malls attract their customer by various entertainment facilities and amusement parks and food outlets. After this research it is found that people go for organized retail malls not only for shopping purpose but also for entertainment purpose.

The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people’s lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector.

The success of this retail sector would also lie in the degree of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities.

The high standard of customer service and simplified low price purchase process in the retail industry has resulted in the increased demand and growth of retail chains and outlets which is bringing new emerging trends in market.

ANEXTUREQUESTION FOR PERSONAL INTERVIEWQuestionnaireA questionnaire which has prepared for the conduct of the survey during the course of research title Emerging Retail Trends in India is hereby being mentioned:-Objective:-Name- Sex-Location- Income level-Age-Where you prefer to do shopping generally?How frequently you visit any retail outlet?The main purpose to visiting the retail mall?The level of satisfaction you feel after the shopping from the retail outlet?Where do you rate the service of these stores?What thing attracts you more in retail malls?Please rate the following statements.

1. Very dissatisfied 2. Dissatisfied 3. Neither satisfied nor Dissatisfied4. Satisfied 5. Very SatisfiedOverall how satisfied are you with shopping from retail malls.

Overall all how satisfied are you with this mall as a entertainment destination?Overall how satisfied are you with variety of merchandise from retail malls.

Overall how satisfied are you with Behavior of the retailers from retail malls.

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