Retail Management in India-23.pdf - Mimts.org

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suppress the consumer exploitation by the multination companies. The share of organized retailing is less than I % in India, compared to 80% in USA, 40% in Thailand and 20% in china. As per some estimates, there are over 200 retail mall projects under construction or under active planning stage spanning over 25 cities. The existing supply chain in India for most goods is woefully inefficient, and built around obsolete warehousing, logistics and transportation technology. Furthermore, the omnipresent middleman compounds this problem. India was now part ofthe global economy and that the economy was riding on the back of middle class consumption. Finally the impression was that large foreign companies were poised to invest in large shopping centers as the Indian market is now reputed to be the fastest growing retail market in the world. (Sridhar 2007). According to a survey by at Kearney, an overwhelming proportion of the Rs. 4, 00,000 crores Indian retail market constitutes the unorganized sector. In fact only rs. 20,000 crores of segments ofthe market are organized. India has been called a nation of shopkeepers due to the existence of a large number of enterprises in the country which totaled over 12 million in 2003. About 78% of these are small family business utilizing only household labor. Even among retail enterprises that employ hired workers, the bulk of them use less than three workers. India's first true shopping mall complete with food courts, recreation facilities, and large car parking space called "Cross Roads" was inaugurated in 1999 in Mumbai.The report in media indicated that a tie-up between Walmart and Bharati Enterprises has been made and this venture is significant in the Indian retail management market. As per their agreement, BHARATI will run the front end of the business and Wal-Mart the supply chain. Reliance industry was also made collaboration with Britain's Tesco and France's Carfefour. It plans to invest 5.6 billion dollars in 4,000 stores in 1,500 towns across India. As per the report of financial express, dated 4-10-07, A V Birla has announced investment ofRs.8, 000 crores in retail via super markets and hypermarkets and presently has 16 more stores in Pune 7 stores in Mumbai. As per this report Delhi is to be retailer's paradise, since it is the hot bed of retail consumption with a high annual household consumption expenditure of Rs.9511 crores. www.IndianJournals.com Members Copy, Not for Commercial Sale Downloaded From IP - 115.248.73.67 on dated 29-Nov-2010 The announcement that foreign retailers are planning to enter the Indian market has caused concern that small traders will be adversely affected. In addition, concerns have, been expressed that through vertical integration from plough to place producers will be squeezed into ever lower margins. (Reddy 2005). The government assured that the JIMS 8M, January-March, 2008 local traders will not be impacted. The deployment of foreign collaboration stores indicates that economies of scale, efficient supply line, and market research will determine the survival of the business. The Indian retail trade has been seen to be the fastest growing in the world. (Techno Pack2006). There are numerous estimates ofthe size ofthe retail sector in India. Crisil estimates that the size ofthe retail market was Rs.l 0 trillion in 2006. Retail trade in India is backward looking as it is grossly undercapit alised as per the report ofTechnop pack. According to Euro Monitor International, retail sales are predicted to rise more rapidly than consumer expenditure during 2003-08. The growth forecast in real retail sales during 2003-08 is 8.3% per year compared with 7.1 % for consumer expenditure. The modernization of retail sector will be reflected in the rapid rise in sales ofsupermarkets, department stores and hyper markets. This is because of the growing affluent and upper middle class and their preference for shopping at new types ofretail stores, given the convenience they offer such as shopping ambience, variety and a single point source of purchase. The entry offoreign retailers in India will entirely change the life style of Indian consumers and markets will be expanded exponentially. The foreign multinational companies are having financial muscle and technical empiricism and experience of the customer behaviors. Walmart is the largest retail company in the world and the largest employer in the United States. The annual revenues of Walmart were 258 billion dollars or 2% of US gross domestic product. It offers everyday low prices to consumers. It also makes sales at reduced levels to competitors. For selling every day for lower prices exposed a wide publicity to the store in US. But there are several criticisms also explored about the behavior of the organization. The Wal--Mart company pays lower levels of salaries to its employees. On the other hand the productive business model ofWal-Mart has received much praise. It can dictate terms to suppliers. The success of Wal-Mart is adoption of high technology and computerized systems in their business transactions. In supply chain system, it adopted radio frequency identification system of goods in transit. (Williams 2004) A.C.Nelson estimates the size of the Indian retail market to be 250 billion dollars and adds that only 23% of 23 major cities have modem cities. According to various research organizations reports indicate retail management has large purchasing potential in different ways. The government argues that regulatory reform will enable gains 57
www.IndianJournals.com Members Copy, Not for Commercial Sale for customers through the reform of supply chain management. The recent studies of shopping malls as managed entertainment centers characterize them as virtual realities with little reference to the immediate environment, instead referring byimplication to other such spaces around the world. They are internally self referential and consumer movements within them are disorientated in relation to the outside world. (Holmes 2001). The shopping malls also face several criticisms in western countries, one of the criticisms of malls is that they lead to the replacement of the traditional main street and its subsequent decline (Lowe 2000: Baker 2006: Guy 2006). Kohli (1989) argues that the Indian middle class supported trade liberalism as they were attracted by the concrete benefits of tax reduction and greater access to consumer goods. Retail developments along with gated communities, redeveloped market places and casinos have changed the face of the western countries as public or civic spaces have been replaced with private space owned by developers(Voyce 2006: 275). Kothari (1993) has called the growing amnesia towards poverty and the poor in liberalizing India. The overseas experience of mall development is that they are usually constructed to form a predictable controlled environment which acts to keep deviant behavior on the outside and to form a "consumerist form of citizenship" inside (Christophersons). Blaike (2000: 1043) argues that" the neo liberal paradigm is highly totalizing and universalizing. Its views on the role oflocal people in applying their local knowledge and skills in action are therefore myopic. Local knowledge is sidelined and reduced both theoretically and practically to market Downloaded From IP - 115.248.73.67 on dated 29-Nov-2010 information on the technical choices available, and the local appropriateness of these choices to their environment and individual and household endowments. The paradigm is indifferent to the localness of the appropriate institutions which should be induced to meet market need. Malls may be seen as sealed enclaves that reveal the continuum ofmiddle class consumers and their involvement in shopping and recreation insulated from the unsavory streets of the city (Sandercock 1997:311). Shopping malls are becoming more popular as one stop shops. In these malls all kinds of goods will be available under one roof. They are attractive places as they are destinations that replace the old civic meeting places of earlier times. They provide respite from the heat and cold and they provide possible spaces for dissatisfied elements of the community. The holding of title of the property is the most important and influencing factor in establishment of shopping malls. Retail Management is basically depends upon 6 important 58 elements. They are Price, Sales Personnel, Quality of Merchandise. Assortment ofmerchandise, advertising, and Services and other convenience services. It is generally all consumers on the earth desires goods with high quality at lower prices. The large quantity of purchases directly from manufacturer will provide a chance for getting goods at lower prices for the consumers. The behavior ofthe sales personnel is another important and influencing factor in determining the business transactions. The malls are providing reputed high quality branded products to the consumers. Branded products, needs no introduction about the quality. The buyer of the branded product automatically knows the quality ofgoods. The shopping malls can further divided as specialty stores which are meant for exclusively for young men, ladies, sports, children etc., The consumer is most important and influencing person to the commercial enterprise. The behavior of the consumer towards shopping malls is another important area for survival of the business. Several researches had been conducted globally to find out the consumer behavior at malls. Behavior in malls is described as a willingness or desire to stay, explore, work or affiliate. (Mehrabian and Russell 1974). According to Berman and Evans (1995), most often retailers are categorized by their product strategy (i.e. merchandising assortment) and pricing strategies, the store' environment is one of the important factors to attract the consumers. The store environment includes color, music, crowding, shopping enjoyment, returning, attraction and friendliness towards others, spending money. Time spent browsing etc., Achabal, Gorr and Mahajan 1982, Kumar and Leone(1988) and Walters) 1991) find a significant impact ofpromotions on store switching traffic. It is unlikely that consumers would keep track of weekly promotions on a multitude of categories in all the stores in their neighborhood. Mall is a place where a collection ofshops all adjoins a pedestrian, or an exclusively pedestrian street, that allows shoppers to walk without interference from vehicle traffic (Blochet at 1994). In north America and Australia, mall is generally refer to large shopping areas while the term arcade is more often used, especially in Britain, to refer to a narrow pedestrian only street, often covered or between closely spaced buildings(Sandiekci and Holt 1996). Bucklin and Latta in (1992) show that retail promotions in anyone category do no directly influence a consumer's store choice decision, but they indirectly affect where the category is purchased. Richardson, Jain and Dick (1996) highlighted the difference between consumer's perceptions of price levels in various stores and reality, showing that consum- JIMS 8M, January-March, 2008
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