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SUMMER TRAINING PROJECT REPORT
On
INDIAN ORGANIZED RETAIL INDUSTRY WITH
SPECIAL REFERENCE TO “BIG BAZAAR”
Towards partial fulfilment of
Integrated Master of Business Administration (IMBA)
School of Management, Babu Banarasi Das University, Lucknow
Submitted by-
Sumit Kumar Yadav
7th Semester
Roll No-
Under Supervision of
Prafull Srivastava
Fashion Department- Floor Manager
Session 2015-
School of Management
Babu Banarasi Das University
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
CERTIFICATE FROM THE ORGANIZATION
ACKNOWLEDGEMENT
I sincerely would like to show my gratitude towards all those persons who have helped me throughout my project work.
I am heartily thankful to Prafull Srivastava Sir at Big Bazar for giving me his valuable guidance for preparing this report. He has been an exceptional mentor during these two months of training. It has been a great learning experience of being a trainee under him.
I would like to express my special thanks to all the another official who has helped me a lot during this SIP. Their critical advices helped me to make this report more effective.
I want to give my sincere thanks as I am deeply indebted to my guide Mr. Manish Jain Sir for her guidance and support throughout our project. She gave me great support to prepare this project, too. And all who directly or indirectly helped me in preparing this report.
SUMIT KUMAR YADAV IMBA (7th Sem.) Roll No- 1130675094
DECLARATION
I do hereby declare that the research report titled “ Indian Organized Retail Industry with special reference to Big Bazaar” submitted by me in partial fulfilment of the requirement of Integrated Master of Business Administration, exclusively prepared and conceptualized by me and is not submitted to any other Institution or University or published anywhere before for the reward of any Degree/Diploma/Certificate. It is the Original work of mine and has not been obtained from any other part.
SUMIT KUMAR YADAV IMBA (7th Sem.) Roll No- 1130675094
Keeping in mind the rapid growth of Indian retail industry and its bright future, this has always been a thrust area for me. Big Bazaar is at the top position in Indian retail industry. That is why it attracted me to have summer training (on the job training) in Big Bazaar, Lucknow. Big Bazaar is the retail chain of Future Retail (India) Ltd. And it provides a wide range of products availability for the customers.
As a matter of fact, retail is the buzz word of the Indian economy today. As retail industry is growing at a high pace I wanted to have an overview of the subject. I have chosen Big Bazaar retail chain for the summer training (on the job training) because Big Bazaar retail is very upcoming retail company which is continuously changing its activities with the change of time. I wanted to understand their marketing activities and liked to relate how similar or dissimilar it is from what I have studied in marketing management.
To execute the project, I underwent on the job training at Big Bazaar, Phoenix United Mall, and Lucknow. The interaction with the Human Resource Manager, Department Manager, Operational Manager, Team Leaders and other staff personnel was fruitful to me as it cleared many core concepts when it came to practical application what we have learned in the classrooms and books.
TABLE OF CONTENT
Chapters Content Page No. Part I 1 Introduction 1 - 18 a) Industry Profile b) Indian Retail Industry c) Major Retailers in India d) Classification of retail sector
1 2 - 7 8 - 10 11 - 18 2 Company Profile: Future Group 19 - 37 a) About organization b) Corporate Statements c) Major Milestones d) Awards and Recognition e) Future Group Companies f) Future Retail
19 - 21 22 - 24 25 - 28 29 - 31 32 - 34 35 - 37 3 Big Bazaar 38 - 60 a) Big Bazaar India’s real retail story b) About Big Bazaar c) Fashion Department at Big Bazaar d) Space Mix and Space Management
38 - 40 41 - 43 44 - 54 55 - 60 4 Learning Process for Summer Training at Big Bazaar 61 - 65 Part II 5 Objectives of the study 66 6 Research Methodology 67 - 68 a. Method of data collection 67
1
INTRODUCTION
Industry Profile-
Retailing:-
The word ‘retail’ is derived from the French word ‘retailer’, meaning ‘to cut a piece off’ or ‘to break bulk’. In simple terms, it implies a first-hand transaction with the customer.
Retailing involvers a direct interface with the customer and the coordination of business activities right from the concept or design stage of a product or offering to its delivery and post-delivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today.
“ Retailing today is not only about selling at the shop, but also about surveying the market, offering choice and experience to consumers, competitive prices and retaining consumers as well”
Retail trade provides 9% of all jobs in India and 14% of GDP.
Retail classification
Retail industry can be broadly classified into two categories namely- organized and unorganized retail.
Organized retail - Organized traders/retailers, who are licensed for trading activities and registered to pay taxes to the government.
2
Unorganized retail – It consists of unauthorized small shops - conventional Kirana shops, general stores, corner shops among various other small retail outlets - but remain as the radiating force of Indian retail industry.
Indian Retail Industry
The Indian retail industry is one of the fastest growing in the world. Retail industry in India is expected to grow to US$ 1.3 trillion by 2020, registering a Compound Annual Growth Rate (CAGR) of 16.7 per cent over 2015-20.
The retail market is expected to reach a whooping Rs. 47 lakh crore by 2016-17, as it expands at a compounded annual growth rate of 15 per cent,
- According to the ‘Yes Bank - Assocham’ study.
India is the fifth largest preferred retail destination globally. The country is among the highest in the world in terms of per capita retail store availability. India’s retail sector is experiencing exponential growth, with retail development taking place not just in major cities and metros, but also in Tier-II and Tier-III cities. Healthy economic growth, changing demographic profile, increasing disposable incomes, urbanization, changing consumer tastes and preferences are the other factors driving growth in the organized retail market in India.
India’s population is taking to online retail in a big way. The online retail market is expected to grow from US$ 6 billion to US$ 70 billion during FY15-FY20.
4
Market Dynamics
In the past few years, Indian Retail sector has seen tremendous growth in the organized segment. Major domestic players have stepped into the retail arena with long term, ambitious plans to expand their business across verticals, cities and formats.
Companies like Tata, Reliance, Adani Enterprise and Bharti have been investing considerably in the booming Indian Retail market. Along with these giant retailers, a number of transnational brands have also entered into the market to set up retail chains in close association with bigger Indian companies.
High consumer spending over the years by the young population (more than 31% of the country is below 14 years) and sharp rise in disposable income are driving the Indian organized retail sector’s growth. Even Tier I & Tier II cities and towns are witnessing a major shift in consumer preferences and lifestyles, the result of which, they have emerged as attractive markets for retailers to expand their presence.
The Indian retail sector is highly fragmented and the unorganized sector has around 13 million retail outlets that account for around 95-96% of the total Indian retail industry. However, going forward, the organized sector’s growth potential is expected to increase due to globalization, high economic growth, and improved lifestyle.
“The retail companies are found to be rising in India at a remarkable speed with the years and this has brought a revolutionary change in the shopping attitude of the Indian customers”.
5
Growth of Indian retail industry
Organized Retail is emerging as the new phenomenon in India and despite the slump, the market is growing exponentially. As economic growth brings more of India’s people into the consuming classes and organized retail lures more and more existing shoppers, by 2015, more than 300 million shoppers are likely to patronize organized retail chains.
The retail sector in India is emerging as one of the largest sectors in the economy By 2015, the total market size is estimated to be around US$ 600 billion, thereby registering a CAGR of 7.45 per cent since 2000. Retail industry is expected to grow to US$ 1.3 trillion by 2020, registering a CAGR of 9.7 per cent between 2000-
204 238 278 321 368 424
518 490 600
1300
2 0 0 0 2 0 0 2 2 0 0 4 2 0 0 6 2 0 0 8 2 0 1 0 2 0 1 2 2 0 1 3 2 0 1 5 2 0 2 0 E
MARKET SIZE OVER THE PAST FEW YEARS
7
Bottlenecks
A long way to meet international standards Lack of efficient supply-chain management Lack of required retail space No fixed consumption pattern Shortage of trained manpower Lack of proper infrastructure and distribution channel
8
Major Retailers in India
Shoppers' Stop-
Shopper’ Stop is counted among the top retail companies of India that has thousands of outlets in PAN India. All the outlets have amazing collection of apparels for men and women. Company is known for customer satisfaction and selling quality product.
Corporate office – Mumbai, Maharashtra | Establishment – 1991 Website – www.shoppersstop.com
Reliance Retail limited
Reliance Retail is counted among the top 10 retail companies of India. It was started in 2006 to capture the growing retail market of India. Company is the part of Reliance industries that has excellent reputation in the industry. From reliance retail customers have the facility to buy food items, lifestyle, fashion, consumer electronics products, and home decorative products.
Corporate office – Mumbai, Maharashtra | Establishment – 2006 Website – www.ril.com
Indian Tobacco Company (ITC)
ITC is a leading retail company of India that was started in 1910 and has been in the industry from last 100 years and selling quality products in affordable prices. Company
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group and the Tamil Nadu Industries development corporation. Company has head office in Bangalore and has seen excellent growth industry. Major Business is Jewelry and Watch retail
Corporate office – Bengaluru, India | Establishment – 1984|
Website – www.titan.co.in
Pantaloons Retail Limited
India's largest and fastest growing big box fashion retailer, Pantaloons is one of the fastest growing lifestyle apparel retail destinations in India. Constantly innovating designs, concepts and products by infusing the latest trends in fashion and clothing styles, Pantaloons has a repertoire of lifestyle brands to cater to every consumer's needs across multiple occasions.
Corporate office – Mumbai, Maharashtra | Establishment – 1997
Website – www.pantaloons.com
Adtiya Birla Group A US $41 billion (Rs. 2, 50, 000 crore) corporation, the Aditya Birla Group is in the League of Fortune 500. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities. Over 50 per cent of its revenues flow from its overseas operations spanning 36 countries.
Corporate office – Mumbai, Maharashtra | Establishment – 1857
Website – www.adityabirla.com
11
Retail Formats and Classification
The evolution of retail in India has led to the emergence of the various formats in the retail industry.
The first hypermarket that was developed was Carrefour in France in 1963.This new format gave the customer the choice of picking up a product, comparing it with others and then taking a decision to buy. The decision making of a customer has changed and there are three principles that have become fundamental to modern selling
They fixed product prices before sale and that the customer bought at the set prices The prices were determined on the basis of stock turns and the amount of profit that was generated from the product. They departmentalized the products .Accounting system were devised to determine the contribution of various department and this enabled them to drop unprofitable goods.
The various formats can be classified on the basis of ownership and the merchandise offered.
