14-08-2014, 12:01 PM
Realiance trends
[attachment=66642]
INTRODUCTION
RETAIL IN INDIA
Retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favourable demographic patterns.
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
As of 2013, India's retailing industry was essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban canters. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process.
In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple.[6] The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus.
In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30 percent of its goods from India. Indian government continues the hold on retail reforms for multi-brand stores.
In June 2012, IKEA announced it had applied for permission to invest $1.9 billion in India and set up 25 retail stores. An analyst from Fitch Group stated that the 30 percent requirement was likely to significantly delay if not prevent most single brand majors from Europe, USA and Japan from opening stores and creating associated jobs in India.
On 14 September 2012, the government of India announced the opening of FDI in multi-brand retail, subject to approvals by individual states. This decision was welcomed by economists[who?] and the markets, but caused protests and an upheaval in India's central government's political coalition structure. On 20 September 2012, the Government of India formally notified the FDI reforms for single and multi brand retail, thereby making it effective under Indian law.
On 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand retail in India. The government managed to get the approval of multi-brand retail in the parliament despite heavy uproar from the opposition[which?]. Some states will allow foreign supermarkets like Walmart, Tesco and Carrefour to open while other states will not.
The Indian retail market, currently estimated at $490 billion, is project to grow at a compound annual growth rate (CAGR) of six per cent to reach $865 billion by 2023. Electronic retail (e-tailing) will emerge as a key retail channel, which will drive the growth of corporatized retail.
The size of e-tailing is estimated to grow from the current $1 billion at 0.2 per cent of the retail market to $56 billion (in real terms) at 6.5 per cent of the total market by 2023, driven by an ecosystem favouring the e-tailing market.
The share of corporatized brick-and-mortar retail in total merchandise retail would at best grow from the current seven per cent to 17 per cent by 2023.
RELIANCE IN RETAIL
Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited, which is based in Mumbai. RRL was set up in 2006 and marks the foray of the Reliance Group into organized retail. RRL has been conceptualized to include growth for farmers, vendor partners, small shopkeepers and consumers. It is based on Reliance’s backward integration strategy, to build a value chain starting from farmers to consumers.
RELIANCE DIGITAL
It is a consumer electronics concept mega store. It is designed to be a one stop shop for all technology solutions in the field of consumer electronics, home appliances, information technology and telecommunications. The stores are to cover an area of more than 15,000 sq. ft. and offer a variety of over 4,000 products spread across 150 brands along with solution bundles to meet diverse customer needs. The staff will counsel and guide customers not only to buy products but also provide complete solutions to ensure consumers buy the right product at the right price. It will continue to offer Reliance One, a common membership and loyalty program across all formats, which follows the philosophy ’Earn Anywhere, Spend Anywhere’. It shall also provide finance options for purchases. Reliance Digital is to be a large format store spread across 15,000 to 35,000 sq. ft. and is scheduled to come up in 70 cities in India in the near future.
) RELIANCE JEWELS
It is a stand-alone fine jewellery format. It is to be a one stop shopping destination for fine jewellery. Reliance Retail ventured into gems and jewellery trade with the aim of launching 300 stores all over India within a 3 year time frame. With a growing demand for jewellery and lower competition, Reliance Retail Ltd. plans to overtake Tata’s Tanishq by 2010. The gold jewellery range shall include Kolkata Filigree, Rajkot minakari jewellery, Kundan from Jaipur, Temple jewellery from Kerala, Jadau from Amritsar and more. In Diamond jewellery, Reliance Jewels will offer the finest quality of diamonds and the widest range of daily wear, party wear and wedding designs.
I) RELIANCE TIMEOUT
With over 56,000 products Reliance Timeout will offer customer an extensive range of merchandise in books, music, stationery, toys and gifts. It is to a format based on the ideology to provide a place where a consumer can unwind and relax, browse and buy a book, sample some music, choose a gift, and buy a toy or some exclusive stationery for themselves. Reliance Timeout will offer a comprehensive range of products in these categories along with an attempt to create a fascinating customer experience with a warm, lively ambience.
INDUSTRY PROFILE
MEANING OF RETAIL
The word “RETAIL” is derived from the French word RETAILLIER, meaning to cut piece off or to break bulk. Retailing in India is as old as India itself.
Definition: Retail is the sale of goods to end user, not do resale, but for use and consumption by the purchaser. The retail transaction is at the end of supply chain manufacturer sell large quantities of products to retailers, and retailers sell small quantities of those products to consumers.
Example: A person who wants to obtain a product for their own personal use will usually purchase it at retail store or from some other retail marketing channel
THE FUTURE
The retail industry in India is currently growing at a greate pace and is expected to go upto US$ 833 billion by the year 2014. It is further expected to reach US$ 1.3 trillion by the year growth rates, the consumer spending has also gone up and is also expected to grow further in the future. In last four year, the consumer spending in India climbed up to 75%. As a result, the Indian industry is expected to grow further in the future days. By the year 2014, the organized sector is also expected to grow at a CAGR of 50%.
CONCLUSION
The consumer is more interested in range and price of the products rather than the price. Bringing customer into store may be easy, but once they enter the store they should get what they want.
Consumers have high expectations from Reliance Trends regarding pricing, they expect good collection of clothes at much cheaper price.
A lot of awareness programs may help in getting better footfalls.
[attachment=66642]
INTRODUCTION
RETAIL IN INDIA
Retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favourable demographic patterns.
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
As of 2013, India's retailing industry was essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban canters. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process.
In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple.[6] The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus.
In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30 percent of its goods from India. Indian government continues the hold on retail reforms for multi-brand stores.
In June 2012, IKEA announced it had applied for permission to invest $1.9 billion in India and set up 25 retail stores. An analyst from Fitch Group stated that the 30 percent requirement was likely to significantly delay if not prevent most single brand majors from Europe, USA and Japan from opening stores and creating associated jobs in India.
On 14 September 2012, the government of India announced the opening of FDI in multi-brand retail, subject to approvals by individual states. This decision was welcomed by economists[who?] and the markets, but caused protests and an upheaval in India's central government's political coalition structure. On 20 September 2012, the Government of India formally notified the FDI reforms for single and multi brand retail, thereby making it effective under Indian law.
On 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand retail in India. The government managed to get the approval of multi-brand retail in the parliament despite heavy uproar from the opposition[which?]. Some states will allow foreign supermarkets like Walmart, Tesco and Carrefour to open while other states will not.
The Indian retail market, currently estimated at $490 billion, is project to grow at a compound annual growth rate (CAGR) of six per cent to reach $865 billion by 2023. Electronic retail (e-tailing) will emerge as a key retail channel, which will drive the growth of corporatized retail.
The size of e-tailing is estimated to grow from the current $1 billion at 0.2 per cent of the retail market to $56 billion (in real terms) at 6.5 per cent of the total market by 2023, driven by an ecosystem favouring the e-tailing market.
The share of corporatized brick-and-mortar retail in total merchandise retail would at best grow from the current seven per cent to 17 per cent by 2023.
RELIANCE IN RETAIL
Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited, which is based in Mumbai. RRL was set up in 2006 and marks the foray of the Reliance Group into organized retail. RRL has been conceptualized to include growth for farmers, vendor partners, small shopkeepers and consumers. It is based on Reliance’s backward integration strategy, to build a value chain starting from farmers to consumers.
RELIANCE DIGITAL
It is a consumer electronics concept mega store. It is designed to be a one stop shop for all technology solutions in the field of consumer electronics, home appliances, information technology and telecommunications. The stores are to cover an area of more than 15,000 sq. ft. and offer a variety of over 4,000 products spread across 150 brands along with solution bundles to meet diverse customer needs. The staff will counsel and guide customers not only to buy products but also provide complete solutions to ensure consumers buy the right product at the right price. It will continue to offer Reliance One, a common membership and loyalty program across all formats, which follows the philosophy ’Earn Anywhere, Spend Anywhere’. It shall also provide finance options for purchases. Reliance Digital is to be a large format store spread across 15,000 to 35,000 sq. ft. and is scheduled to come up in 70 cities in India in the near future.
) RELIANCE JEWELS
It is a stand-alone fine jewellery format. It is to be a one stop shopping destination for fine jewellery. Reliance Retail ventured into gems and jewellery trade with the aim of launching 300 stores all over India within a 3 year time frame. With a growing demand for jewellery and lower competition, Reliance Retail Ltd. plans to overtake Tata’s Tanishq by 2010. The gold jewellery range shall include Kolkata Filigree, Rajkot minakari jewellery, Kundan from Jaipur, Temple jewellery from Kerala, Jadau from Amritsar and more. In Diamond jewellery, Reliance Jewels will offer the finest quality of diamonds and the widest range of daily wear, party wear and wedding designs.
I) RELIANCE TIMEOUT
With over 56,000 products Reliance Timeout will offer customer an extensive range of merchandise in books, music, stationery, toys and gifts. It is to a format based on the ideology to provide a place where a consumer can unwind and relax, browse and buy a book, sample some music, choose a gift, and buy a toy or some exclusive stationery for themselves. Reliance Timeout will offer a comprehensive range of products in these categories along with an attempt to create a fascinating customer experience with a warm, lively ambience.
INDUSTRY PROFILE
MEANING OF RETAIL
The word “RETAIL” is derived from the French word RETAILLIER, meaning to cut piece off or to break bulk. Retailing in India is as old as India itself.
Definition: Retail is the sale of goods to end user, not do resale, but for use and consumption by the purchaser. The retail transaction is at the end of supply chain manufacturer sell large quantities of products to retailers, and retailers sell small quantities of those products to consumers.
Example: A person who wants to obtain a product for their own personal use will usually purchase it at retail store or from some other retail marketing channel
THE FUTURE
The retail industry in India is currently growing at a greate pace and is expected to go upto US$ 833 billion by the year 2014. It is further expected to reach US$ 1.3 trillion by the year growth rates, the consumer spending has also gone up and is also expected to grow further in the future. In last four year, the consumer spending in India climbed up to 75%. As a result, the Indian industry is expected to grow further in the future days. By the year 2014, the organized sector is also expected to grow at a CAGR of 50%.
CONCLUSION
The consumer is more interested in range and price of the products rather than the price. Bringing customer into store may be easy, but once they enter the store they should get what they want.
Consumers have high expectations from Reliance Trends regarding pricing, they expect good collection of clothes at much cheaper price.
A lot of awareness programs may help in getting better footfalls.