ENTRY OF MULTIBRAND RETAIL IN INDIA:- A WRONG DECISION OR AN INNOVATIVE STEP

Well, now a days, the 51% FDI is a hot topic all over India. It is effecting everybody's life. There are a lot of gossips among all kind of people about the hottest topic. Economists,general people, NEWS Channels as well as polititions are taking their warm interest in this topic. I think, if this contineus, than that day is not so far when the peoples like Anna Hazaare will make another protest against it even if he don't know anything about the matter. This is call India, where social person's aim is to disturb common peoples life by protesting on public places and passing their time, politition's aim is to oppose decisions of ruling party, even it is in favour of country, NEWS Channel aim is to make small films of such matters and present in front of audience for high TRP and we peoples waste our valueable times by involving in such matters.

Now, come on the topic.We are discussing on FDI in retail which means the entry pass of multibrand retail in Indian market.So, will it in favour in country or not. Before coming to a decision, I am going to Point out some vital topics which can be efficient to make a decision.

What is Retail ?

In general terms, Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.

Retail in India :-

In india, the retailing concept arrived one decade ago. within a very few time, it became a part of everybody's life. Now a day's we wish to purchase almost all of our daily use articles to valuable goods from a retail outlet. It provide us a huge range and indipendencs purchasing. Metros as well as small cities are also a better place for retail. There are a lot of companies involved in retail merketing.

Major Companies in Retail In India:-

1)Future Group, 2)Bharti Retail. 3)Arvind Retail. 4)Birla Group. 5)ITC Retail. 6)Haryali Kisaan Bazar.7)Vishal Mega Mart.

The Retail MNC's which are expected to enter in Indian Market After 51% FDI :- 1)TESCO, 2)Carrefour, 3) Wal-Mart (WITH FULL POWER).

The Benifits Due to Multi Brand Retail in India :-A) Benifits to Customers :-
1) Cheaper Goods :- The supermarts and hypermarts reduces the involvment of middlemans like distributor, agents,brokers and their profit parts that caused the less cost of merchandise. Because, these companies will purchase goods directly from manufacturer or farmers. As the result, the merchandise will get avilabe on relativly less price.

2) More Avilability of International Brands :- A lot of international brands like- tesco products, john ferida, alberto Vo5, unilever will be easily avilable in India which are not avilable at present.

3) A Huge Range of Products :- There was a time, when customers went to a local store and ask the storekeeper to show their products. But the varities were very less and the storekeeper won't show more samples. But, now a days, customers want to see a plenty of varities for their selection. So, the entry of hypermarts will boost up the buying habbits of customers.

4) Pre Sale and After Sale Services :- there stores will provide more pre and after sale services.

5) Avilability of Pure Goods :- It is a major concern. Most of the existing retail organisations imports goods from overseas. For reducing costs they imports either out of fashion or stock lots of those countries. But imazine, if those companies directly entred in Indian market, then what will happan. Definetly we will get the pure goods.


B) Benifits to Country :-

1)Revenue generation :-The entry of multibrand retail will lead to increase the national revenue within very short time and India become a super power.

2)More Benifit to rural peoples :- There will be a tremendus benifit to rural people specially farmers. Because these stores will directly purchase food products from them.

3)A New Hope for Small and Cottage Industries :- Small and cottages industries will also get benifited from this.

4) A right step towards making India a developed country.


Now comes on the Demerits of Entry of Multibrand Retail in India :-

1) It will reduced the involvement of middlemans from the market. But that is also in the favour of the customers, because these middlemans charges unlimited commissions, profits and other compensations to reached the goods from manufactrer to customer.



So, that's all about the analysis of multibrand retail in India. So, now it's your turn think upon the matter and come up with your views.


For the behalf of The World of FMCG, I Pravin Tripathi want your replies.

Thanks

INDIA RETAIL FORUM 2011 :- INDIA'S BIGGEST EVENT FOR RETAILERS.

OVER 3000 PARTICIPANTS, 100 EXHIBITORS AND
200 SPEAKERS AT INDIA RETAIL FORUM




India Retail Forum (IRF) is a congregation of the most innovative and successful retail brands, companies and minds from across the globe and the entire retail support universe, including retail real estate, design & architecture, merchandise & services, visual merchandising, security and technology.

The 2011 edition of IRF will be modelled on the theme “Shopping for Retail Success” as modern retail in India poises for real, sustainable growth. The retail industry in India has gone through several orientations and readjustments since the advent of modernisation approximately six years ago. After the initial years of reckless expansion and hard lessons, it’s time now to train our sights on building retail businesses that are relevant, successful and enduring.

IRF 2011 will also debate and conclude on key issues and challenges facing the future of Indian retail. What is the role of modern retail in driving consumption? How did some retailers grow at their fastest during the most difficult economic phases? Is the growth sustainable? Who is responsible for developing retail infrastructure? What would be the smartest strategies for global players to effect success in India? How can small retailers be involved and engaged in the overall retail growth story?

The forum will bring to the participants an opportunity to learn, share and evolve with the masters in the business, explore out–of–the–box ideas, witness innovation in merchandise, spaces, IT and support systems, and celebrate outstanding achievements in the business of retail in India.

The ‘Mecca’ for retail captains and policy makers, IRF is a ‘must attend’ for all businesses wanting to connect with the lucrative–but–complex Indian market and her consumers.

The Store Replacement Plans of Bata in India.

In what seems to be Bata’s exit plan for the low end market, the shoe giant will be introducing four new designs everyday and plans to open 70-100 stores with a built up area of 5000 sq. ft. every year. The decision is based on rising demand in the middle range segment. In the past few years, Bata has been pursuing an exhaustive clean up strategy in India. The Switzerland based company has shutdown close to 400 unviable stores and replaced them with 270 large format stores. Bata, which sells in 315 towns, has seen a phenomenal growth in online sales which have grown 200% in the 2010 alone. In fact, the efforts have started paying off as the company which was supposedly doomed has been delivering formidable financial results. Bata recorded net profits of Rs.34.39 crore in the fourth quarter of CY 2010, an increase of 35.39% compared to the same period last year. With competition in the form of cheap leather imports from China constantly on the rise, the current strategic outlook will act as a much needed cushion for Bata.

Tryvertising :- A Vital Part of Modern Advertising

Tyvertising :- TRYVERTISING is all about consumers becoming familiar with new products by actually trying them out.

At present time, it is a major part of advertising. As the mall culture and retail era is increasing it's limit fron metro cities to small towns as well as semi urban areas, the role of tryvertising is a need of these kind of business. There was a time when brand name or a TVC of a particular brand was enough to sell that product. But now, the story is very different. At present time, people don't trust on any goods untill he or she personally try the product. The Tryvertising concept has been increased the need of trial rooms and sample products in retail outlets.

The Trivertising concept is based on Advertising but it is not based on same old TV adds or newspaper publicity of any unknown brand.The trivertising activities aimed directly at end users, as opposed to indirect, viral campaigns aimed at getting celebs or influencers to try out (and talk about) new products and brands.


The Vital Points of Trivertising :-

When it comes to TRYVERTISING, products that can be offered as an integrated experience will do well.It means the sample that present to the customer should be proper and best among all. Remember, first impression is the last impression.

As TRYVERTISING is not about old-school sampling, but about relevance, about real-world product placements, the most ideal audience is an audience with some time on his/her hands, or one that is actually looking for something to read, listen to, master, or figure out.

Trivertising depends on proper follow ups with latest updates of the goods avilable in the market.

The way of trivertising should be diffrent from others. It effects on the customer mindsets.

Indian Juice Market :- A new Battlefield.

The Days of 1990s are once again coming. This time it is in the same category but with another way. I am saying about the competition in soft drink market. In 1990s, when soft drink concept was new in India, one of Indian brand, Thumps Up leads the market. It was the biggest barrier in the path of Coca Cola to enter into Indian Market. As the result, Coke acquire the brand and continued the same under their flagship. At present time the same thing is going to happen in Indian juice market where the market is leaded by a Indian brand, Real juice.

The juice market in India is witnessing a plethora of activity. With the focus on a healthy diet, there has been an increase in demand for fresh fruit juices. According to data by Euromonitor, the soft drinks category in India, which includes bottled water, carbonates and concentrates, will see trade volumes grow at a CAGR of around 18.04% from 2007 onwards to reach around 9.98 billion litres in 2013. In comparison, the fruit and vegetable juices category, which includes 100% juices, juice drinks, fruit flavoured drinks and nectars; will see trade volume grow at a CAGR of 22.9% in the same period to reach 1.1 billion litres by 2013.

As far as the categories are concerned, juice drinks (upto 24% juices) will remain the largest market with trade volume of 868.9 million litres by 2013, followed by nectars (24-99% juices) at 184.5 million litres and and 100% juices at 46.2 million litres. In terms of market shares, the honours are split, although not so evenly. Dabur’s Réal and Pepsi’s Tropicana dominate the 100% juice category with market shares of 48.3% and 42.8% respectively (Euromonitor). The large and traditional segment of juice drinks sees Coca Cola’s Maaza and Parle Agro’s Frooti as legacy leaders, with shares of 37.9% and 33% respectively.

Coca Cola’s market movements provide valuable indications on the overall trends. It does seem that the 100% juice category is one where players perceive a lot of potential ostensibly because of the ‘pure’ proposition, and Coca Cola’s launch demonstrates this.

So, these trends are showing that there will be a healthy competition in juice market in India. So, let's see what will going to happen.

The Success Mantras of Retail Industry

Well well well, Now a day we are living in the world where everything is coming under the shade of retail industry. It is very modern concept and following by almost every country. At present time, people loves to go for big bazaar or spencer's for shopping of every articles even perishable goods in place of going to traditional mandis or other local market. From lifestyle goods to FMCG goods, everything has been came under retail industry. People are more habitual to retail stores.

As the demand of retail increasing,different stores of many companies are also opening day per day. But retail business is not an easy job. A number of retailing companies shut down every year. But the organisations which follows the major key mantra of retail business, are still market leaders.

There are lot of strategies available in different books of retail, but if we take a sincere look on the success strategies for retail business, we will find that there are only two major mantras on which whole retail process depends.

A) Perfect Outsourcing :- 1) Regular outsource.
2) Outsource of fresh and
different kind of products than local market.
3) More number of verities in different product
category.
4) Healthy inventory level.
5) Goods should be outsource from same vendor always.
6) Purchase department should be more active in
outsourcing of goods.

B)Excellent Supply Chain :-
1) Logistic department should be more active.
2) On time supply and dispatch.
3) Good co-ordination between transporter and
organization.
4) Regular follow up with cargo company.

The Presentation Concept in Retail Industry

Presentation is everithing in retail industry. It dosent matter that how goods is? it is right, wrong, small, large etc. main thing is that how it presented in front of customer. A nice presentation can lead to sale an unbrand product and at the same time without a proper presentation, a very nice and precious thing is looking like worthless. In retail, no need to convince a customer, if your product presentation is proper. The presentation describs all about the goods.

Major Ways of Presentation;-

1) Light Presentation :- Lights of different colors makes an impact on customer as well as it increase the get up of a product. Generally, customer attracts more by light and sound.


2) Sound Presentation :- Sounds refers to the music and songs. Generally, customer comes to the store after finishing his all the work, so at the time he/she becomes little bit tired. The music or song provides a customer little bit relief and entertain them. It convince a customer to pass more time in store.


3) Attractive Packing :- Packing of a product defines it’s value. Good and attractive packing mesmerizes the customer.


4) Placing :- Placing of good is a major part of presentation. It much matters that where the goods should be place, because first impression is last impression. So, put fresh arrival in front of entry of the store which can attract the customer standing outside the store. The most running items should kept in the interiors of the store so that a customer will have to pass the complete area and by doing that the retailer can focus every product to the customer. Also there are some products on which customer takes time in selection, so these products should be kept at the place where enough space is available.

5) Pricing :- Pricing is one of the most major factor which decides the success or failure of a product. In those days, pricing is also a part of presentation. Different kind of psychological pricing like Rs. 99, 199, 499, 999 or different criteria’s of discount works as means of presentation of product.