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Chapter one
Fashion Retail Management
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Contents
Overview of Retailing Environment
Current scenario
Emerging trends in Retailing
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Fashion . Fashion refers to the
styles and customsprevalent at a given time.
In its most common usage
however, "fashion"describes the popularclothing style.
Fashion designers create
and produce clothingarticles.
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Retail .
has its origin in French wordretaillier and means to cut apiece or to break bulk.
is the sale of goods and
services to the ultimateconsumer for personal, familyor household use.
According to Kotler: Retailing
includes all the activitiesinvolved in selling goods orservices to the final consumersfor personal, non business use
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Management
a process of bringing about improvementin knowledge, skill, habits, and attitudes ofthe employees in an organization.
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Retailing Involves
Understanding the needs of customers
Developing good assortment of
merchandise Displaying the merchandise in a effective
manner so that customers find it easy and
attractiv
e to buy.
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Retailing
Part of distribution channel
Manufacturer
Wholesaler
Consumer
Retailer
Manufacturer
Retailer
Consumer
Manufacturer
Consumer
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Weekly MarketsVillage FairsMelas
Convenience StoresMom & Pop/ Kiranas
PDS OutletsKhadi StoresCooperatives
Exclusive Brand OutletsHyper/Super MarketsDepartment StoresShopping Malls
Traditional/Pervasiv
e Reach
Government
Supported
Historic/Rural
Reach
Modern Formats/
International
Evolution of Indian Retail
Source of
EntertainmentNeighborhood
Stores/Convenience
Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficiency
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Retail Environment
Retailer
Importer
Secondary
Sectors
suppliers
Competitors
Primary &
Secondary
Sector
Share Holder
Government
consumers
Media
Whole
Seller
Pressure
GroupRetailer
External
Environment
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Factors behind the change of
Indian retailing Industry
Economic growth
Urbanization Consumerism
Brand profusion
Availability of real estate
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Why retailing ???
Wide range of products/brands at oneplace
Breaking bulk Holding inventory Providing services Increase value of products & services
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Some facts of Retailing
Retailing Worlds largest private industry
US$ 6.6 trillion sales annually
Indian retailing Largest employer after agriculture - 9% of population
Highest outlet density in world
Around 12 million outlets
Still evolving as an industry
Long way to go as only 3 % of the sector is organized.
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Organized & Unorganized Retail
Organized retailing is based on the principleof unity and unorganized retailing is based onthe principle of singularity.
Retailing in India is predominantlyunorganized.
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Categories of Indian Retail
Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and Glow, etc ITC: Wills Life Style Rahejas(ShoppersStop), Hiranandani(Haiko),
Dedicated brand outletsNike, Reebok, Zodiac etc
Multi-brand outletsVijay Sales, Viveks etc
Manufacturers/ Exporters Pantaloons, Bata, Weekender
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Fashion Retail Environment Massive spread-out of the malls & Boom in luxury retail
segment. Mergers and acquisitions The advantages by the elimination of global textile quotas in
2005. Expansion strategies of brands and retailers. Many international brands march into domestic markets. (Guess,
Gas, levis etc.) Indian fashion designers marked their names at International
platforms. (Ritu Kumar, Ritu Beri,Tarun Tahiliani ) Boom in luxury retail segment.
Considerable expenditure on ad and marketing by apparelbrands.
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Current scenarioPessimist scenario With 2009 now officially
labeled as a recessionaryperiod
22 retail businesses,representing approx.
66,000 jobs closed in thefirst three months of theYear
A further 4,000 retailjobs have been lost
through cost reductionmeasures by retailcompanies.
Optimistic scenarioThe growth of industry & itwill touch Rs. 18,10,000 cr by2010.Organized Retail is
expected to constitute 13%of itThe report is based onrising economic growth rateof 8-9 per cent A hike in average salariesby about 15 per cent whichmay trigger the rate ofconsumption.
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Apparel Retail Industry Current Scenarios
The apparel industry contributed to thelargest share of the organized retail pie, withrevenues of Rs.29,800 crore(39.3%).
Indian apparel market value Rs.1224 bn Indian apparel volume 5644 million
Koutons has 260 stores
Big Bazaar has 56 stores
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Emerging trends in Retailing
The trends to follow in the future:
The Indian Organized retail sector will grow up to10% of total retailing by 2010.
No one single format can be assumed as there is ahuge difference in cultures regionally.
The most encouraging format now would be the
hypermarts.
The hypermart format would be further encouragedwith the entry of the MNCs.
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Thank You