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In The Line Of Retail

(This section tells you about up-and-coming career opportunities.)

For a layman, Retail is commonly understood as something to do with shopping. When we go on our daily, weekly or monthly shopping visits, little do we think about the complex system working behind those glittering products on those gleaming shelves! We are mesmerised by the all important task of choosing from the vast variety for the best quality goods at the best rates!

This sale of goods over a counter to consumers for domestic use is known as 'Retailing'.

Technically speaking, retailing could be termed as the sale of goods or products in small quantities, from a permanent place, to end users or consumers for their personal consumption or use. The permanent place may be a store, shop, kiosk or department store.

A retailer buys goods or products in large quantities and sells it at a profit to the end consumer. The retailer may buy directly from the manufacturer or he may buy from a wholesaler. A retailer, therefore, is the end point of the supply chain or the distribution tactic.

The product passes through a number of hands - mediators like wholesalers or distribution agents - before it reaches the end consumer. This is commonly known as the supply chain.
Apart from retailing, door-to-door selling, agents of manufacturers, mail orders, Internet shopping, telephone sales and even wholesalers could be at the end of the supply chain.

Types of Retailing Outlets

• Grocery Stores - Traditional grocery stores are one of the oldest retail outlets. Daily needs corners are also retailing outlets.
  
  
• Branded Stores - These are showrooms which offer complete ranges of a brand, thereby maintaining product quality. These showrooms may belong to the manufacturer or may be franchised out to a private business houses. Titan and Tanishq, belonging to the TATA Group, are such stores.
  
  
• Speciality Stores - They cater to a particular need of the consumer and bear most of the brands available for it. 'Crossword' is such an outlet belonging to the K. Raheja Group.
  
  
• Department Stores - These are big stores compartmentalised under various heads such as clothing, footwear, home appliances, grocery, furniture, jewellery, toys, etc. These stores house a variety of brands and ranges for their customers. Piramyd Mega Store (Piramal's) and Shopper's Stop (K. Raheja Group) are examples of Department Stores.
  
  
• Supermarkets - Almost like department stores, they are very big and cater to multiple needs of customers but, they are self-service centres. Food Bazaar of Pantaloon Retail is a supermarket.
  
  
• Discount Stores - These stores reap profits from the volume of sale. They offer discounts on the retail price, thus selling at lower prices to attract more buyers and have a large turnover. Apna Bazaar is one such store.
  
  
• Hypermarket - Big Bazaar is a popular hypermarket. They are much bigger than supermarkets. The highlights of hypermarkets are low prices and a vast range of brands to choose from.
  
  
• Convenience Stores - They are self-service stores which are smaller than supermarkets and conveniently located in residential or crowded places. These could be privately owned.
  
  
• Shopping Malls - These are the latest entrants on the retailing scene. They are huge covered markets that shelter numerous stores under their roof - a one-stop shopping place. Cafeterias and eating places are also housed in malls. 'Central' is a mall by Pantaloon Retail.
  
  India and the Retail Industry
  
  With speedy globalisation, India is witnessing a revolution in marketing trends. Orthodox markets are making way for, or upgrading themselves to, departmental stores, supermarkets, speciality stores, hypermarkets and malls (Organised Retail). Almost 21 million people are employed by this sector according to some trade publications, contributing 13% to India's GDP.
  
  In a Global Retail Development Index of 30 developing countries, AT Kearney has placed India at number 5. The Indian retail markets are estimated to grow at a rate of nearly 30% over the next five years from its present value of more than US$ 200 billion. The income is expected to leap from approximately US$ 8 billion to US$ 24 billion by 2010.
  
  The untapped potential of retailing in India and the government approval of foreign direct investment (FDI) upto 51% in retailing have created a scuffle among the big business houses to become a part of this Retailing Rush. Established names like Reliance are working towards the creation of malls, hypermarkets, supermarkets, etc., across the country while reputed players of this industry are on an expansion spree with the acquisition of prime real estates in grade 1 and 2 cities.
  
  If we consider India's rural area and population, then the potential for retailing is even more attractive. This area has not been exploited enough yet. However, ITC, DCM Sriram Group, Escorts and Tata Chemicals have started Chaupal Sagar, Hariyali Bazaar, and Tata Kissan Sansar respectively. They provide FMCG, electronic goods, automobiles, farm related services and send inputs.
  
  Reasons for the 'Retail Boom' in India
  
  Saturation in the retail markets in European countries and many Asian countries has prompted foreign manufacturers and retailers to set up retail counters in India.
  
  An affluent middle class and double income households have considerably increased the purchasing power of the Indian man. The Indian now wants value for his money. For this, he is ready to spend more. Shopping at organised retail outlets is a popular option to ensure quality of products.
  
  Urbanisation has resulted in a denser population in cities. It is easier to reach out to consumers from one retail outlet when they live in large numbers in localities.
  
  Efficient transport facilities have made covering distance to reach stores easy. With disposable incomes, shoppers are ready to go far to get what they want if they feel sure of getting quality goods.
  
  Use of credit cards has made shopping much easier. There is no need any more of carrying wads of currency in their pockets, or to be scared of running out of money. Shopping at any time, at any place is the modern day mantra.
  
  Pillars of Retail
  
  
• Location of the outlet is very crucial for its success. It should be within reach of its customers.
  
  
• Availability of goods: The supply chain should be efficiently managed with no breaks.
  
  
• Display of goods: Shelf display and store layout should be so attractive as to ensure sale.
  
  
• Competent personnel to assist customers, run malls/ markets and facilitate sales.
  
  
• Retention of customers: To provide quality and satisfaction, persuading customers to return to them.
  
  Retail and Employment
  
  We already know that almost 21 million people work in this industry. What is particularly attractive about retail employment is that it also employs people who do not have extraordinary skills, for example, customer assistance/floor assistants. It offers a formidable solution to India's vast unemployment problems. Information Technology also saw the increase in employment opportunities for Indians but it specifically required highly skilled personnel, giving rise to the affluent middle class of today. Retail offers job opportunities to the common man. Expansion of the retail industry will witness an increase in the incomes of graduates and undergraduates.
  
  This does not mean that skilled professionals are not required in the retailing industry. On the technical and administration side, talented people are needed for the smooth functioning of the retail unit. In fact, some trade publications tell us that major retailers are looking towards the Middle East for skilled people to manage sales, marketing, purchase, merchandising, administration, HRD, etc.
  
  Visual Merchandising is another important aspect of retailing. People with an artistic or designing background are also employed by retailers to display their provisions attractively and use the floor area in the best possible manner.
  
  Temperament of Retail Employees
  
  
• For customer related jobs, a pleasing personality comes in handy. Communication and persuasive skills guarantee sales.
  
  
• A genuine liking for people and thorough knowledge of the goods to be sold are the prerequisites of a good salesperson.
  
  
• Ability to make quick and correct decisions to help the customers select goods of their choice.
  
  
• Ability to work for long and unscheduled hours: The Retail Industry is customer-oriented and so working hours could be irregular.
  
  Retail and MBA
  
  Managers are required in retail as in all other fields. Like most of the other industries, MBA's have to perform activities such as Human Resource Management and Information Technology Management. Some specific requirements of retailing are:
  
  Brand Management:- To design the brand and name it. The brand should be easy to pronounce, remember, recognise, attract attention, suggest benefits, company name and be distinct from others.
  
  Store Management:- To manage the store effectively at a profit.
  
  Research Analysts:- To study customer behaviour to predict sale.
  
  Supply Chain Management:- To ensure a constant flow of merchandise from manufacturers or wholesalers.
  
  Event Management:- To organise events in the stores and malls for sales promotion, and attract crowds to the retail outlet.
  
  Human Resource Management:- To keep the employees happy, secure and satisfied, ensuring that they work together so as to optimise their efficiency and control attrition.
  
  IT Management:- With IT seeping into every industry, proficient managers are required to manage its complicated systems.
  
  For hopeful Retail Managers, only a handful of B-Schools offer courses tailor-made for retailing. MICA Ahmedabad, Welingkar Institute of Management and KJ Somaiya Institute of Management at Mumbai, Chennai Business School and Indian Institute of Social Welfare and Business Management at Kolkata are a few B-Schools that provide retail-friendly courses.
  
  Brand Building Studies, Emerging Paradigms of Brand Communication, Retail Communication in India, Integrated Marketing Communication Mix Studies are some of these courses.
  
  MBA recruitment in the retailing sector has seen a steady rise. Studies have revealed that recruiting has doubled every year for the past couple of years.
  
  Career Path
  
  An MBA entrant to retail can hope to become a store manager of a small business unit after the initial induction programme and a few months of working under project guides. A couple of years later, the store manager gets to manage a large store. A few years down the large store manager becomes a cluster manager and manages a chain of stores. The next step would be the responsibility of a whole geographical area. Every promotion is supported by a corresponding rise in salary and incentives.
  
  Remuneration
  
  Certain retail employers follow a remuneration pattern which includes a base salary, compensations like bonuses, stock options, etc., and benefits such as vacation, health care, employee discounts. Starting salaries could be upwards of 2 lacs per annum plus performance related incentives. Its expected escalation is about 30-35% yearly.
  
  Conclusion
  
  Shopping promises to be even more exciting than ever before, with foreign retail houses like Wal-Mart, Saks Fifth Avenue and Tommy Hilfiger foraying into Indian soil and Indian players investing and expanding with gusto, we could truly proclaim that in India the RETAIL RUSH is on!