INTERVIEW QUESTIONS
WARM-UP QUESTIONS
First tell about yourself
What made you apply for this position?
How did you hear about this job opening?
Briefly, would you summarize your work history & education for me?
Well, first of all, I'm pleased to be here meeting you because I've long been an admirer of your company and of the work you personally have done. I believe I have what you're looking for. I am a management graduate from SMS, Varanasi, one of the leading management Institute with Marketing Specialization.
"I offer your company and this position effective negotiation and communication abilities, creative problem solving and project management skills, inner drive and initiative, and strong writing skills. My colleagues here would find me dependable and flexible."
JOB PERFORMANCE
Everyone has strengths & weaknesses as workers. What are your strong points for this job?
What would you say are areas needing improvement?
How did your supervisor on your most recent job evaluate your job performance? What were some of the good points & bad points of that rating?
When you have been told, or discovered for yourself, a problem in your job performance, what have you typically done? Can you give me an example?
Do you prefer working alone or in groups?
What kind of people do you find it most difficult to work with? Why?
Starting with your last job, tell me about any of your achievements that were recognized by your superiors.
Can you give me an example of your ability to manage or supervise others?
What are some things you would like to avoid in a job? Why?
In your previous job what kind of pressures did you encounter?
What would you say is the most important thing you are looking for in a job?
What are some of the things on your job you feel you have done particularly well or in which you have achieved the greatest success? Why do you feel this way?
What were some of the things about your last job that you found most difficult to do?
What are some of the problems you encounter in doing your job? Which one frustrates you the most? What do you usually do about it?
What are some things you particularly liked about your last job?
Do you consider your progress on the job representative of your ability? Why?
How do you feel about the way you & others in the department were managed by your supervisor?
If I were to ask your present (most recent) employer about your ability as a____________________, what would he/she say?
Other Questions
How do you deal with criticism?
Criticism is vital to my continued growth, and I welcome constructive criticism that helps a team operate better together or produce better results. It is important to me to understand where my critic is coming from so that I know how to apply the feedback.
What are your weaknesses?
First of all, don't try to mention strength and present it as a weakness. Trying to say that you're a workaholic or that you're a stickler for detail and how that's a weakness will not work well. It will be seen as an attempt to dodge the question. The weakness you mention should not be critical to the job you'll be doing. If you're interviewing for the job of an insurance actuary, don't tell them you're weak at statistics! Talk about a weakness in content knowledge rather than a basic personal quality or skill. Because lack of content knowledge is much easier to remedy than a personality trait. For instance, say that your weakness is that you're not familiar with a particular software application. That's much better than saying you find it difficult to manage people. You should also mention what you are doing to remedy the weakness. If lack of knowledge of a computer application is your weakness, talk about how you're attending evening classes to learn more about it.
Where do you see yourself in ten years?
In ten years, I endeavor to have refined my strategic and client relations skills. I intend to be a leading expert in estate planning. After having proven myself as a senior manager, I hope to help shape the strategic direction of estate planning services. I could do this in any number of official roles. The important thing is that I will continue contributing my abilities in a challenging and rewarding environment.
What do you think of your previous manager?
My previous manager had excellent technical skills and was very agreeable as a colleague. I would have liked more support from her at times, but her hands-off style meant that I had to become resourceful in problem solving and negotiating with colleagues.
How long do you see yourself with us?
I see myself here as long as we both think that I am contributing to the vitality of the company while still being grown through challenges.
What is the riskiest thing you have ever done?
The greatest calculated risk that I have taken was to launch my own internet company. My idea was solid, but I knew the market was volatile. Even though the venture ended, my investment of time and money paid off in terms of the skills, perspectives, and contacts that I made through the process. I feel like I matured-rather than aged-ten years during that time.
What about this job attracts you? What is unattractive?
As I evaluate my skills and goals, this job maximizes on both. I will be able to merge my knowledge of law and markets while strategizing for the sound financial future of clients. Since this is a small company, I imagine that there will be opportunity for increased responsibilities and challenges. I share the values of the company. I am not eager to do much data processing, but the position is very attractive
How would you describe an ideal working environment?
It is important to me that my company has clear objectives and strives for success. Similarly, I like having colleagues whom I admire for their skills and perspectives. When communication is clear between colleagues, our energy becomes synergy. In addition, I find that I flourish when given discretion after having gained the trust of my supervisor
Interview Tips
Use empathetic body language.
Both your words and your behavior will affect whether you establish a connection with the interviewer. When you meet the potential employer or human resources officer, you will want to show that you are confident, trusting, open, attentive, and eager, but restrained. All of this can be communicated in a handshake. Make sure that your hand is about perpendicular to the floor. If you extend your hand with your palm facing down, you indicate that you need to be in control-something that can be off-putting in an interview scenario. If you extend your hand with your palm facing up, you can appear overly docile. Try extending your hand with your palm relatively flat, so that you offer to make full contact with the other person's hand. If you cup your hand, you indicate that you mistrust the other person.Likewise, your posture throughout the interview indicates whether you are open and attentive, or somehow withdrawn from the interviewer. Leaning back shows boredom or sometimes insolence. It is better to sit up straight and lean forward just slightly, facing the interviewer directly. Crossing your arms in front of you may indicate that you are somehow defensive, whether from insecurity or mistrust. Try to keep your arms open, even if your legs are crossed.Eye contact is crucial. Look the person in the eye when you are speaking and listening. To avoid giving the interviewer the impression that you are boring through him with your transfixed gaze, take breaks and look away to the right or left.
Do yourself Exercise:
To make substantial headway in self-reflection, spend some time on the following exercises. When considering your responses, think beyond your professional life and current circumstances. Include instances as far back as your youth.
· Make a list of five accomplishments that you enjoyed.
· Make a list of five things you have done that make you proud.
· Describe three scenarios in which you felt highly motivated to accomplish something.
· Describe three scenarios in which you lacked motivation.
· Think of three scenarios in which you felt appreciated by other people. How did they communicate that appreciation for you?
· Make a list of how your colleagues, staff, and supervisors describe you. Include the positive and negative feedback.
· Make a list of how friends and family describe you.
· Make a list of ten of your best personal qualities.
· Think of two small and large decisions that you have made. Describe how you went about making those decisions.
· Describe two situations that seemed risky to you. What did you do?
· Describe a conflict situation between you and someone else that was resolved to your satisfaction. How was it resolved?
· Describe a conflict situation between you and someone else that was not resolved to your satisfaction. What happened?
· Complete this sentence: When I am responsible for leading or supervising other people, I prefer to. . .
· Complete this sentence: When I want to show appreciation for other people, I usually. . .
· Complete this sentence: I work because. . .
· Complete this sentence: From a job I want. . .
Sunday, August 12, 2007
indain retail industry -an over view
retailing in India – An overview
India Retail Overview
Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape. India is all set to experience the phenomenon of a global village. India presents a grand opportunity to the world at large, to use it as a business hub. A ‘Vibrant Economy’, India tops A T Kearney’s list of emerging market for global retailers. The 2 nd fastest growing economy in the world and the 3 rd largest economy in terms of GDP in next 5 years.
India also tops the annual list of most attractive countries for international retail expansion, according to A T Kearney’s Global Retail Development Index 2006.
It is very rightly been reported the Indian retail market is gradually but surly opening up, even as other markets become increasingly saturated. India is the sure at the peak of attractiveness for retailers right now as its USD 270 billion retail markets continues to grow at the rate of 13 percent and all indicators seems to suggest that there can only be further acceleration from here on. What is even more heartening is the fact that India’s miniscule organized retail market has gained the momentum required to propel it to the next phase of real rapid expansion: at prevailing prices, this segment grows 42 percent in 2006. All that India retail now need is un-interrupted supply for investment and that should not be a problem given the interest and enthusiasm the retail has generated among India’s large corporate houses and also the eagerness of global retail giants to do business in India.
Investments
A report by investment banker Goldman Sachs, credits India with the potential to deliver the fastest growth over the next 50 years with an average rate of more that five percent a year for the entire period. All these are portends in terms of investment and returns. By the end of 2008, FDI (Foreign Direst Investment) is expected to touch the magical figure of USD 10 billion with investment in infrastructure development and capital market continuing to flow in at a rapid pace.
India is investing over US $ 130 billion in infrastructure by the end of this decade. Indian retail industry itself has attracted investment of over Rs.200 billion (over USD 4 billion) in creating infrastructure, system and shop-fit. The additional retail space is expected to add Rs.300 billion (USD 6.67 billion) of business to organized retail.
The Retail Revolution
Over the last few years India retail has witnessed rapid transformation in many areas of the business by setting scalable and profitable retail models across categories. Indian consumers are rapidly evolving and accepting modern retail formats overwhelmingly. The traditional market are fast loosing their shine, making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Malls are coming up not just in the metros but also in second-rung cities, introducing the Indian consumer to shopping experience like never before. These modern shopping complexes are becoming the destination point for shoppers as well as window-shoppers. There is everything for everyone-shopping, entertainment, food, all of it under one roof.
at the prevailing pace of development it is estimated that India will have close to 50 million square feet quality retail space by the end of 2007. Now that Wal-Mart has formalized its India entry and other leading global retail power houses are also busy working out their plans, we can safely say that’s an additional 700 million square feet of quality retail space from the existing level will be required by year 2011. It is also estimated that by year 2010 there will be an investment of over Rs.20,000 croer (USD 4.3 billion) in quality retail space across the country.
Already, specialty stores are proliferating, setting everything from books to healthcare and from home furnishing to apparel. But ultimately it will be the large-format supermarket and hypermarket stores that will account for the largest share of the investment. Industry studies indicate that today’s total of 50 hypermarkets will grow to 1,200 across India by 2011, at which time there will be 3,000 supermarkets, twice as many as there are today.
Rural Retailing
With several states in the country permitting retailers to purchase produce directly from farmers, there is a new kind of revolution afoot in rural India. Farmers are taking special care of produce to garner higher prices, selling to retail companies such as ITC, Godrej and other and finally making good money, after centuries of social and economic exploitation. But despite the fact that ‘rural markets’ are the flavour of the season for large corporation in India, erratic weather condition, crop failures, inadequate or non-existent irrigation methods, and rural debt continues to plague the farming community throughout rural India.
It is fact that India’s rural market are area of opportunity. The urban-rural split in consumer spending stands at 9:11, with rural India accounting for 55 per cent of private retail consumption at USD 260 billion. Currently the Indian retail market is estimated at USD 270 billon, and almost half of this growing retail market at present lies in rural India. With nearly 55 per cent of the total retail market being in rural India, this is a tremendous growth sector that needs to be trapped with care.
India Needs More Retailers
The government has recently moved to introduce FDI in multi brand specialty formats like consumer electronic, sports goods, building and construction equipment and stationary – all to come with policies in place to protect the interests of small retail business like neighborhood shops and kirana stores. It is believed that some areas within these sectors might be protected.
With the India retail space having witnessed the entry of India Inc. stalwarts as well as global retail retails majors, like Reliance Retail, Bharti-Wal-Mart and the Av Birla Group in 2006, the stage is set, as they say, and the act should begin. For all the initial excitement and copious market analyses, the retail game will actually belong to year 2007. Indian retail need not wait for FDI; Indian retail needs more and more retailers who have the ability to carry the action through, and in good style.
The Indian Retail Market Size
The first issue of India Retail Report 2005 had estimated the Indian Retail Market at Rs.930,000 crore out of which organized retail market has accounted for Rs.28,000 crore. Since then, the India retail market has acquired lot more strength, riding on the sound vibes generated by robust economy that has been growing at over eight percent per annum for the last three years beginning 2003-04. Growth trend for the first two quarters of current fiscal year 2006-07 indicate that the country should achieve a GDP growth rate of over 8.5 percent for the year. This impressive growth has on the one hand enhanced the attractiveness of India foreign investment and on the other hand has given more disposable incomes in the hand of the consumer who will keep demanding better products, services, and a better shopping environment. India Retail, as evident from happening all around is going all out to provide the consumer what they seek.
At constant 2003-04 prices, India Retail achieved 5.7 percent year on year growth during 2006-05 and grew from Rs.930,000 crore in 2004 to Rs.980,500 crore in 2005 and finally to Rs.1,036,000 crore in 2006. In the overall Retail pie Food and Grocery was the dominant sector with 63 percent share followed by Clothing and accessories with a nine percent share and Jewelry and Catering services with five shares each came next.
The past two years saw tremendous activity in Organized Retail market and this was adequately reflected in the robust 34.8 percent year on year growth in this segment. At 2003-04 constant process, the organize retail market grew from Rs.28,000 crore in 2004 to Rs.35,600 crore in 2006 and further on to Rs.47,500 crore in 2006. In the organized retail pie the largest 39 percent share is with the Clothing, Textiles and Fashion Accessories segment while Food and Grocery has the second largest share of 11 percent followed by consumer Electronics and the footwear segment emerge as the third largest players with nine percent share each.
Timewear Retail sector was the most organized of all retail segments with only 44.4 percent of the market remaining with the unorganized retailers. Footwear (37.8%) was the second most organized retail segment followed by Clothing and Fashion Accessories (18-9% share) and Books, Music and Gifts (12.6%) emerging the third most organized retail segment
Global Scenario
The latter half of the 20th Century, in both Europe and North America, has seen the emergence of the supermarket as the dominant grocery retail form. The reasons why supermarkets have come to dominate food retailing are not hard to find. The search for convenience in food shopping and consumption, coupled to car ownership, led to the birth of the supermarket. As incomes rose and shoppers sought both convenience and new tastes and stimulation, supermarkets were able to expand the products offered. The invention of the bar code allowed a store to manage thousands of items and their prices and led to 'just-in-time' store replenishment and the ability to carry tens of thousands of individual items. Computer-operated depots and logistical systems integrated store replenishment with consumer demand in a single electronic system. The superstore was born.
On the Global Retail Stage, little has remained the same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still holds that distinction. Other than Wal-Mart’s dominance, there’s little about today’s environment that looks like the mid-1990s. The global economy has changed, consumer demand has shifted, and retailers’ operating systems today are infused with far more technology than was the case six years ago.
The global retail industry has traveled a long way from a small beginning to an industry where the world wide retail sales alone is valued at $ 7 trillion (Source:2003 Global Retail Report, Deloitte Touche Tohmatsu). The top 200 retailers alone account for 30% of worldwide demand. Retail sales being generally driven by people’s ability (disposable income) and willingness (consumer confidence) to buy, compliments the fact that the money spent on household consumption worldwide increased 68% between 1980 and 2003. The leader has in-disputably been the USA where some two-thirds or $ 6.6 trillions out of the $ 10 trillions American economy is consumer spending. About 40% of that ($ 3 trillions) is spending on discretionary products and services. Retail turnover in the EU is approximately Euros 2000 billion and the sector average growth looks to be following an upward pattern. The Asian economies (excluding Japan) are expected to grow at 6% consistently till 2005-06.
Global Organised Retail Sector Global Unorganised Retail Sector
Global perception about India, about its economic might and potential in terms of market size, has drastically changed over the last few years. At present, India’s retail sector is largely unorganized, with about 15 million tiny outlets catering to consumer needs across the country. The above graph shows that India needs more organized retail sector and according to India Retail Report findings, it has been growing at over 36 percent during last couple of years and is valued at Rs. 48500 crore.
Growth and Opportunities
India’s sunrise sector is witnessing a major transformation as traditional markets make way for modern and indigenously developed retail formats. The retail industry is booming and is poised to witness the golden growth that sectors like IT, Investment management and tourism have experienced over the last two decades. With the boom in the retail industry, the demand for the trained manpower has been growing exponentially.
With escalating consumerism, unprecedented awareness and a youth heavy customer base India is the ‘Promised Land’ for the global brands and retailers. Malls and big stores have revolutionized the whole retail sector, as it is now more organized requiring the application of modern management techniques to run them efficiently and effectively.
In this scenario, the demand for expertise in retail management is going to be phenomenal and a career in retail is going to be a rewarding and enriching experience. Apart from retail manager one can also opt for positions like inventory/logistic manager, mall manager, floor manager and customer service/satisfaction manager etc. The options do not end here and there are also opportunities in human resources, finance and system management.
The following facts substantiate that point of view:
· India will emerge as 2nd largest economy throughout the world by 2050,ahead of US economy-Goldman Sachs, Investment banker.
· By 2010, organized retailing in India will cross the US$ 21.5-Billion mark from the current size of US$ 7.5 billion (Source: KSA-Technopak, a retail consulting and research agency)
· With a 3 year CAGR of 46.64% retail is the fastest growing sector in the Indian economy
· Expected to generate 10-15 million jobs over the five years
· Fourth largest economy on purchasing parity basis.
· Organized retailing in India is only 2%, which is very poor compared to other south Asian countries.
· Big Business houses in India like Reliance, Godrej, Bharti, RPG group, Birlas, Tata, Wadias are now looking at retail sector. Reliance India is Entering in a big way with an investment of Rs.25, 000 crore and an Estimated employment generation of around 10 Lakhs.
· Foreign direct investment in retail business allowed up to 51% through foreign investment promotion Board as a measure to encourage the entry of multi national corporations in the country.
· Retail presence in Real Estate: By 2007 an estimated 50 million sq.feet of quality retail space will be available across India.
Current major Retailers in India:
Leading Indian Retailers Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries, Trent and the new entrants penetrating the market soon will include Reliance Retail Ltd, Wal-Mart Stores, Carrefour, Tesco, Boots Group, etc.
Retailers
Formats
Reliance
Reliance Fresh
RPG
Music world, Spencer’s
Pantaloon
Big Bazaar, Food Bazaar, Pantaloons, Central, aLL, E-Zone, etc
TATA GROUP
Westside, Star India Bazaar, Titan, Tanishq, TATA KISAN
Raheja Group
Shoppers’ Stop, Crossword, Hyper city, Desi Café, etc
ITC GROUP
Chaupal Sagar, Chaupal Fresh, WILLS LIFESTYLE ,EXPRESSIONS
ADITYA BRLA GROUP
More,Trinethra Super Retail Ltd.
GODREJ
Aadhaar OUTLETS
DCM GROUP
HARIYALI KISAN BAZAAR
Mc DONALDS
61 OUTLETS IN INDIA
DOMINO’S
130 PIZZA HUT OUTLETS IN INDIA
Key Trends
The existing players like Big Bazaar, Shoppers’ Stop, and Piramyd are expanding to smaller towns and cities. Many other business houses are planning to enter the retail sector either on their own or through partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are going to enter the market soon. Even rural areas will provide a huge opportunity to be explored.
India Retail Overview
Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape. India is all set to experience the phenomenon of a global village. India presents a grand opportunity to the world at large, to use it as a business hub. A ‘Vibrant Economy’, India tops A T Kearney’s list of emerging market for global retailers. The 2 nd fastest growing economy in the world and the 3 rd largest economy in terms of GDP in next 5 years.
India also tops the annual list of most attractive countries for international retail expansion, according to A T Kearney’s Global Retail Development Index 2006.
It is very rightly been reported the Indian retail market is gradually but surly opening up, even as other markets become increasingly saturated. India is the sure at the peak of attractiveness for retailers right now as its USD 270 billion retail markets continues to grow at the rate of 13 percent and all indicators seems to suggest that there can only be further acceleration from here on. What is even more heartening is the fact that India’s miniscule organized retail market has gained the momentum required to propel it to the next phase of real rapid expansion: at prevailing prices, this segment grows 42 percent in 2006. All that India retail now need is un-interrupted supply for investment and that should not be a problem given the interest and enthusiasm the retail has generated among India’s large corporate houses and also the eagerness of global retail giants to do business in India.
Investments
A report by investment banker Goldman Sachs, credits India with the potential to deliver the fastest growth over the next 50 years with an average rate of more that five percent a year for the entire period. All these are portends in terms of investment and returns. By the end of 2008, FDI (Foreign Direst Investment) is expected to touch the magical figure of USD 10 billion with investment in infrastructure development and capital market continuing to flow in at a rapid pace.
India is investing over US $ 130 billion in infrastructure by the end of this decade. Indian retail industry itself has attracted investment of over Rs.200 billion (over USD 4 billion) in creating infrastructure, system and shop-fit. The additional retail space is expected to add Rs.300 billion (USD 6.67 billion) of business to organized retail.
The Retail Revolution
Over the last few years India retail has witnessed rapid transformation in many areas of the business by setting scalable and profitable retail models across categories. Indian consumers are rapidly evolving and accepting modern retail formats overwhelmingly. The traditional market are fast loosing their shine, making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Malls are coming up not just in the metros but also in second-rung cities, introducing the Indian consumer to shopping experience like never before. These modern shopping complexes are becoming the destination point for shoppers as well as window-shoppers. There is everything for everyone-shopping, entertainment, food, all of it under one roof.
at the prevailing pace of development it is estimated that India will have close to 50 million square feet quality retail space by the end of 2007. Now that Wal-Mart has formalized its India entry and other leading global retail power houses are also busy working out their plans, we can safely say that’s an additional 700 million square feet of quality retail space from the existing level will be required by year 2011. It is also estimated that by year 2010 there will be an investment of over Rs.20,000 croer (USD 4.3 billion) in quality retail space across the country.
Already, specialty stores are proliferating, setting everything from books to healthcare and from home furnishing to apparel. But ultimately it will be the large-format supermarket and hypermarket stores that will account for the largest share of the investment. Industry studies indicate that today’s total of 50 hypermarkets will grow to 1,200 across India by 2011, at which time there will be 3,000 supermarkets, twice as many as there are today.
Rural Retailing
With several states in the country permitting retailers to purchase produce directly from farmers, there is a new kind of revolution afoot in rural India. Farmers are taking special care of produce to garner higher prices, selling to retail companies such as ITC, Godrej and other and finally making good money, after centuries of social and economic exploitation. But despite the fact that ‘rural markets’ are the flavour of the season for large corporation in India, erratic weather condition, crop failures, inadequate or non-existent irrigation methods, and rural debt continues to plague the farming community throughout rural India.
It is fact that India’s rural market are area of opportunity. The urban-rural split in consumer spending stands at 9:11, with rural India accounting for 55 per cent of private retail consumption at USD 260 billion. Currently the Indian retail market is estimated at USD 270 billon, and almost half of this growing retail market at present lies in rural India. With nearly 55 per cent of the total retail market being in rural India, this is a tremendous growth sector that needs to be trapped with care.
India Needs More Retailers
The government has recently moved to introduce FDI in multi brand specialty formats like consumer electronic, sports goods, building and construction equipment and stationary – all to come with policies in place to protect the interests of small retail business like neighborhood shops and kirana stores. It is believed that some areas within these sectors might be protected.
With the India retail space having witnessed the entry of India Inc. stalwarts as well as global retail retails majors, like Reliance Retail, Bharti-Wal-Mart and the Av Birla Group in 2006, the stage is set, as they say, and the act should begin. For all the initial excitement and copious market analyses, the retail game will actually belong to year 2007. Indian retail need not wait for FDI; Indian retail needs more and more retailers who have the ability to carry the action through, and in good style.
The Indian Retail Market Size
The first issue of India Retail Report 2005 had estimated the Indian Retail Market at Rs.930,000 crore out of which organized retail market has accounted for Rs.28,000 crore. Since then, the India retail market has acquired lot more strength, riding on the sound vibes generated by robust economy that has been growing at over eight percent per annum for the last three years beginning 2003-04. Growth trend for the first two quarters of current fiscal year 2006-07 indicate that the country should achieve a GDP growth rate of over 8.5 percent for the year. This impressive growth has on the one hand enhanced the attractiveness of India foreign investment and on the other hand has given more disposable incomes in the hand of the consumer who will keep demanding better products, services, and a better shopping environment. India Retail, as evident from happening all around is going all out to provide the consumer what they seek.
At constant 2003-04 prices, India Retail achieved 5.7 percent year on year growth during 2006-05 and grew from Rs.930,000 crore in 2004 to Rs.980,500 crore in 2005 and finally to Rs.1,036,000 crore in 2006. In the overall Retail pie Food and Grocery was the dominant sector with 63 percent share followed by Clothing and accessories with a nine percent share and Jewelry and Catering services with five shares each came next.
The past two years saw tremendous activity in Organized Retail market and this was adequately reflected in the robust 34.8 percent year on year growth in this segment. At 2003-04 constant process, the organize retail market grew from Rs.28,000 crore in 2004 to Rs.35,600 crore in 2006 and further on to Rs.47,500 crore in 2006. In the organized retail pie the largest 39 percent share is with the Clothing, Textiles and Fashion Accessories segment while Food and Grocery has the second largest share of 11 percent followed by consumer Electronics and the footwear segment emerge as the third largest players with nine percent share each.
Timewear Retail sector was the most organized of all retail segments with only 44.4 percent of the market remaining with the unorganized retailers. Footwear (37.8%) was the second most organized retail segment followed by Clothing and Fashion Accessories (18-9% share) and Books, Music and Gifts (12.6%) emerging the third most organized retail segment
Global Scenario
The latter half of the 20th Century, in both Europe and North America, has seen the emergence of the supermarket as the dominant grocery retail form. The reasons why supermarkets have come to dominate food retailing are not hard to find. The search for convenience in food shopping and consumption, coupled to car ownership, led to the birth of the supermarket. As incomes rose and shoppers sought both convenience and new tastes and stimulation, supermarkets were able to expand the products offered. The invention of the bar code allowed a store to manage thousands of items and their prices and led to 'just-in-time' store replenishment and the ability to carry tens of thousands of individual items. Computer-operated depots and logistical systems integrated store replenishment with consumer demand in a single electronic system. The superstore was born.
On the Global Retail Stage, little has remained the same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still holds that distinction. Other than Wal-Mart’s dominance, there’s little about today’s environment that looks like the mid-1990s. The global economy has changed, consumer demand has shifted, and retailers’ operating systems today are infused with far more technology than was the case six years ago.
The global retail industry has traveled a long way from a small beginning to an industry where the world wide retail sales alone is valued at $ 7 trillion (Source:2003 Global Retail Report, Deloitte Touche Tohmatsu). The top 200 retailers alone account for 30% of worldwide demand. Retail sales being generally driven by people’s ability (disposable income) and willingness (consumer confidence) to buy, compliments the fact that the money spent on household consumption worldwide increased 68% between 1980 and 2003. The leader has in-disputably been the USA where some two-thirds or $ 6.6 trillions out of the $ 10 trillions American economy is consumer spending. About 40% of that ($ 3 trillions) is spending on discretionary products and services. Retail turnover in the EU is approximately Euros 2000 billion and the sector average growth looks to be following an upward pattern. The Asian economies (excluding Japan) are expected to grow at 6% consistently till 2005-06.
Global Organised Retail Sector Global Unorganised Retail Sector
Global perception about India, about its economic might and potential in terms of market size, has drastically changed over the last few years. At present, India’s retail sector is largely unorganized, with about 15 million tiny outlets catering to consumer needs across the country. The above graph shows that India needs more organized retail sector and according to India Retail Report findings, it has been growing at over 36 percent during last couple of years and is valued at Rs. 48500 crore.
Growth and Opportunities
India’s sunrise sector is witnessing a major transformation as traditional markets make way for modern and indigenously developed retail formats. The retail industry is booming and is poised to witness the golden growth that sectors like IT, Investment management and tourism have experienced over the last two decades. With the boom in the retail industry, the demand for the trained manpower has been growing exponentially.
With escalating consumerism, unprecedented awareness and a youth heavy customer base India is the ‘Promised Land’ for the global brands and retailers. Malls and big stores have revolutionized the whole retail sector, as it is now more organized requiring the application of modern management techniques to run them efficiently and effectively.
In this scenario, the demand for expertise in retail management is going to be phenomenal and a career in retail is going to be a rewarding and enriching experience. Apart from retail manager one can also opt for positions like inventory/logistic manager, mall manager, floor manager and customer service/satisfaction manager etc. The options do not end here and there are also opportunities in human resources, finance and system management.
The following facts substantiate that point of view:
· India will emerge as 2nd largest economy throughout the world by 2050,ahead of US economy-Goldman Sachs, Investment banker.
· By 2010, organized retailing in India will cross the US$ 21.5-Billion mark from the current size of US$ 7.5 billion (Source: KSA-Technopak, a retail consulting and research agency)
· With a 3 year CAGR of 46.64% retail is the fastest growing sector in the Indian economy
· Expected to generate 10-15 million jobs over the five years
· Fourth largest economy on purchasing parity basis.
· Organized retailing in India is only 2%, which is very poor compared to other south Asian countries.
· Big Business houses in India like Reliance, Godrej, Bharti, RPG group, Birlas, Tata, Wadias are now looking at retail sector. Reliance India is Entering in a big way with an investment of Rs.25, 000 crore and an Estimated employment generation of around 10 Lakhs.
· Foreign direct investment in retail business allowed up to 51% through foreign investment promotion Board as a measure to encourage the entry of multi national corporations in the country.
· Retail presence in Real Estate: By 2007 an estimated 50 million sq.feet of quality retail space will be available across India.
Current major Retailers in India:
Leading Indian Retailers Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries, Trent and the new entrants penetrating the market soon will include Reliance Retail Ltd, Wal-Mart Stores, Carrefour, Tesco, Boots Group, etc.
Retailers
Formats
Reliance
Reliance Fresh
RPG
Music world, Spencer’s
Pantaloon
Big Bazaar, Food Bazaar, Pantaloons, Central, aLL, E-Zone, etc
TATA GROUP
Westside, Star India Bazaar, Titan, Tanishq, TATA KISAN
Raheja Group
Shoppers’ Stop, Crossword, Hyper city, Desi Café, etc
ITC GROUP
Chaupal Sagar, Chaupal Fresh, WILLS LIFESTYLE ,EXPRESSIONS
ADITYA BRLA GROUP
More,Trinethra Super Retail Ltd.
GODREJ
Aadhaar OUTLETS
DCM GROUP
HARIYALI KISAN BAZAAR
Mc DONALDS
61 OUTLETS IN INDIA
DOMINO’S
130 PIZZA HUT OUTLETS IN INDIA
Key Trends
The existing players like Big Bazaar, Shoppers’ Stop, and Piramyd are expanding to smaller towns and cities. Many other business houses are planning to enter the retail sector either on their own or through partnerships. New entrants like Reliance Retail Ltd and Wal-Mart are going to enter the market soon. Even rural areas will provide a huge opportunity to be explored.
Friday, August 10, 2007
welcome to my blog
hello
I am Amitabh Pandey. I am Reader at School of Management Sciences , Varanasi.
i am available at 9235764359 or amitabh_pandey@rediffmail.com
I am Amitabh Pandey. I am Reader at School of Management Sciences , Varanasi.
i am available at 9235764359 or amitabh_pandey@rediffmail.com
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