INTRODUCTION TO RETAIL

ASSIGNMENT-1

ON
“EVOLUTION OF FOOD RETAIL IN INDIA”

Submitted by: Group –2

Name Registration No. Signature

Swostik Rout MBA/19-21/44

Priyadarshi Mohanta MBA/19-21/23

Subrat Ranjan Debata MBA/19-21/37

Bhabani Shankar Das MBA/19-21/05

Rajeshkanta Rout MBA/19-21/25

Lumguang Mei Rongmei MBA/19-21/16

Debasmita Biswal MBA/19-21/08

Guided by: Prof. Barada Prasanna Mohapatra

CONTENTS

Sl. No. Topic Page No.

1 Introduction 1-5

2 Food Retail 5-8

3 Role of information systems in changing food retail 9-11

4 Needs for survival of Retailers 11-12

5 Conclusion 13

CONTENTS FOR GRAPHS

Sl. No. Topic Page No.

1 Market size of retail in India 8

CONTENTS FOR TABLES

Sl. No. Topic Page No.

1 Organised food & grocery retail formats in India 7

Page-1

1. INTRODUCTION
Retailing is a vital commercial activity, provid ing
cuctomes cwith an oppodtunity to purchaie goods
and seTvices fom vavious types of meTchants
The first retail outiets in Amegi ca uweve tradin9
Posts and geneval stoves. At taading pasts, goods
Obtained from Native Armerico ns ceTe exchanged tor
items imposted from turope O rmanua ctured in
Othe parts of the country. As villages and town qrew,
trading posts developed into general stores and
began to sel food, favm necessities and clothing.
Typically run by a single peson, these Stores
Sometirmes served as the past oPfice and be came
the social and centeeconomic
of thejr communities
Since Norld hlar I , giant supermarkets, discount
houses, chain stores, and shopping malls have
grown
in popularity. Even so, individualy ned business trive,
often giving cuStomers more personal and beter- infovmed
service

Today, etail is a complex and divese field. It involves

the selling of a types of physical goods, such as
automobile parts, phavmaceuti cats, clothing hea lth- care
PToducts, books, and food, al wel as services, such as
automobile epair or 19 cieanin9
The selling ofphysie al goods uSually Tequides both a
ceholesaler and a retailer. The cwholeSaler is a
90-betueen, o middlemen between pooduCers of
merchandise and retail stores The tohole Sale buys
goods in lange quantities dire ctly from producers, stores
h e qoods in waTe houses, taKes or ders from buyeTS,
Pa

(Aypicahy oetail stores), and aoTangesfor delivery

ofthe mercha ndiise.

The retail field cosis ts of superrmarket s, departrment

Stores, chain stoes, Speci alty stores, variety stoTes,
fran chise stores, mail- order housec, online merchonts
and dood- doo sellers, Retail sBores buy their good

faom cwnole salers, stock the goods. and Tesel thern to

individual consumers in small quantities. Ketailers must
Know their customer's needs and a n t s , and they
must also advetise and attractively display the goods
Hhey sell.

1.1.Evolution of Retail in India:

The origin op retailing in India can be traced back

to the emergence of Kirana StoreS and mom-and-Pop

Stoves.These stores are tced to cater to the
local people Eventually he governrment SUppoted
the ural Tetail and many indigeneus fanchise
Stores came uP coith the help of Khadi & Village
Industries Cormmnission. The economy began to open up
in the 980s resultinq n he change in retai ling .

The firsB few cormpanies to Come up with retai

chains cwere in textile se cto, for ex - Bombay Dying
etc Later Titan launched retail
S Kumavs Ray monds
Showooms in he Orqan1Sed retail secto. tnlith the
moved on o m
passage otime, neuu erants
he evolutio af ctailina
manuftcturing to pure retailing.
understood as
n India can be bet}er

(0)falyEightie Retaiing in Jndia cua synony)es w

vendoyS, neiahbor hood Kirana S1ore
peddla , vege dable
Page-3

o Sole clothing and consumer durable Store S in a

ncarby o w n hese etailers operat ed in a highly

Unstouctured and fo agmented ma Ke. Very few retailer

Cperated in move than one

(6) in Jndia
Before 19q0 Odganised Tetain cwal ed by

tew manu facture ouwned etail outle +s, mainly

he textile in dusty. Ex Bombay Dyeing, Raymond s
5 Kumans, and Grasim. Later, Ttan successfully
Created an Organis ation based retai ling concep
and esta bhished a series of Showroorms for its
rem1um Oa tches.

(c) NinetiesLibenalis ation of Indi an econd my ed to the

dilution of Stoingent restrictions . Entry of few
muti- national play ers liKe Nanz into the Indiarn market.
Changin profile of the Indian consumes. increasing wages,
of dhe employe es woKing in reenfield SectorS with

highe purchasinq powe Setin9 up of e til chains bv

domesic retailers Ke Colton Vo 7ld CMumbai), Navulas (Dehi
and the ViveKS and Nilgiis in the South.

The latter half oP the 19g0s Saw aorsh cvave of

endrants Uidh a shif+ faom Manufactures to pu?
For eg. Food world, Subhiksha and in
Retailer s.
. Nilyiais
ood and FMCG Woald in music
planet M and Music
Crossword and Fountain head in books oo 1g95
Onuarde, }}he «e e mevgence of Shoppin centers,
nainly in urban aDe as wtb fa cililes ike CanparKiny
fageted do Provide a
complcde de sdination CXp¢»icnce
fo a segm ents offSociety This peviod also Saw hk
Cmegence of hyper qmd S )a Kets
Pa

paovidc customer wilh 3v's - Value, varicty ad volurne.

The
The concepd oP etail at cntertainmei Carme to ]ndio
oith the adven of Shopping rmalsShopping nalls
emerged in the urban areas giving a cworld clas
experience to the
customers Evenually. hyperr nara Ke
Rnd Supermar Kets emeged The evolution of the
Sector incudes the ContinuouS mprovement in the
Supply chain management distribution channels,
technology , ba tk-end Operations, etc.this would finaly
lead +to more
o Consoli dation mergers and

acquiSi ions and

huge investments

The Indianretail industay is divided into organised and

Unorganjsed sectors. The Indian retail secto is

highly ragment ed with a majov Share ois business

ing
being un byunoganised etailers liKe the taaditional
tores. "he
family u n stores and coTner s orgonise d
more than 307 TF implies
Tetailing is arowing ot a date
Ahat Sowly the unorqanised segment is beinq converted
into organised, Regarding the investment, made by
some of the Indian gic1nts t is leant that KRe liance
has already invested 3 . 4 bill on and emeging as he

ontempordy Indian onglo merate he Prerent

Lagesr
t a t e and future plans of companies in this Indian
retail industry coill certainly ensu an abnoomal

Touh rate than the present

1.2 Droivers oretai Changeio Jndia

tollowin9 are he doiveas ofetci chang in India:

Raising incomes Cnd iopoove menis

e enlarginq congumo make ts an tccelevating
- 5

he conycagence of concumera cesteS

-Liberalisation
o the Indian Eronomy
-Incaease in spendio9 pe capita income.
Advent of dual incomefamili a also help s in the

goh of reail er sectoa

Shift in consumer demand to foreign brands ike
liKe

Me Donatd
Sony, and panaconic etc
ConSumer Preference for shoppin9 in neu environment.

The Intesnet revolution is ma king the Indian (onsurner

more accessible to the goowing influenee o domestic
and foreign etail chain. Reach of Satellite TV channel

is helpin in Ceating auwareness about global produchs

for local manhets.

2. FooD RETAlL
Retail food is al food other than estaurant food
that is purchased by ConsumerS and Consumed

rd
eff- premise. Retail food comes in all shapes an

Sizes and is protected by nume doS govRTNmenf agencies

Retail food is one the mans most important

be cause need to eat to live
expendiduros people
people P u r c h a s e retailfood it
ems
healthy lives. Most

every e e k , includinq meat, vegetables,fruit,

mik bread
Snatks and many other items. Retailfoeds Can

he in boxe Cellophane
Cans,
packaged
cardboard Container S Some aifocd like
Cylindrical
net individualy packcse d at a).
fresh veqeda bles a
Redail food hot high demand elasicidy, CgardeSs of
economy here eill he a fci7y
he ate of he
red ailfend po oducts
Consis4ent ne ed fo
e-6

2.. Poesent tadusof food Tetail ucture in India

its way
in Jndia 1S gradually cre eping
Red ailsector
Sector.
into he next explosion
towgrds tunin9
The Tndian retail indust4 is +he 20th bigaes
ed
ed un0TAanis
n the globe inchudinq ganiS
However, primarily,the
food etcul s e c t o r s
unorgunised
eBail s e c t o v in India was
generally
tastes, falhion and preferrence
though cwith he change in
ohe congumers.
According to the report Expanding opportuni ie
Indian
or Global Retailevs' eleajed by AT Ke arney

Retai accounts 20 share in GDP. h e growth of

in
Oganís e d
food etail sectox and expansjon
4he congumption by thee Indian population is going

bath
o dake a
highe EnpanSjon

Accounting fov 207. of GDP in 2014, the Indian re tail

sector is categoTICed into teo Se ctors as oganis ed

and un- organise d d e t a i l sectors. Oganised foodd

CaTied out
retailing means trade activities

by 1censed retail compa n)-es, ex plicit'y, those

Companies which are registeved for cemplex
and mu4iple Sales tax income tax etc. Even the ugh
existed in
here ade about 14 million etail stores
han Sco
and jus} 4 of hem a r e tager
Jndio,
is havin rbeu
Cquarefeet in terms of Size Jndia
aC
I etail Staa es Hoevery 1,00 people. hese
'hich
4ypirally farmily ouned and opeated o d e s ,
acK fhe Scalc to 9vow. qO o hese
aDea o Tia S9. f4. orless
'oOun d loo pace
Page-4

majm KEY
Key playes in Modenn Foo
e de a some

in Tndio as shown in dhe table below:

a 0 c e y Retail

Ta ble 1 -Oxganis ed Food Grro cemy Retail formats in Indie

(2014)

Company. Food Grocey Retail Nurnberr of

Formats Storeg
550
Reliance IndustTies Reliance Fresh
Big BaZaan; Fo od Bazan
Future roup 530
Food hal KBS Fair price
More 504
Aditya Bila qroup
REI Ago Ltd. 6 Ten 344

Bharti Group Easy D4y 210

RP- Sanjiv Goenka Group pence S
135
Avenue Supermarkets D-mat
Nature's Basket
Godrej GT Oup
Star Ba zaas
Tata So

The
The eneTgence f o a a n i s ed etaiin Tndia is

a cu TTent OccuTance and is limied to the top 1Oo

urbon ard cities and towns. Hene e he ectov
Poesents adiTe ne ed of more nvestment s toe'a ds
its modevn ation he retai ling, in India is censidercd

a aflouris hing SecdoY Food and gooce detail

CorpTILOS about 6 9 o the toteal USN 410 hiion
Indi on 6 a aKe fs .

In bic ec hnoloy diven eoh e endioe notion ef

Ghepring has chon9°d in he fo vm dorat and
CCOmpanied n an
Consu ro e us heli be heViou
Paa 2

uprais
poisinging in Indian redailing. Mndewn food etai
rade hat evolved in Indio seen in extonsjve
m u i - storjed rmal s and ta*ge Complorel pTvide

shopping
Shopping

etail in
with fun

foo d
and

and
food a t one

has
place.

registered
As a e 3 u,
o find
g*ocery
belo,
owth9ouh. as shown by the figure

retail in Indio
Fig-1-MaTketsize of
CAGR 6:1Z
2013 490
2012 518
2010 A24
2008 368
Years 2006 32
2004 278
2002 238

2000 204

1998 200
IBE F)
Report,2013
-

Deloitte
Soure:

etimated
2013, 4he I n d i a n r e a i l sector was
at Us 4 490 | l i o n and food e t a i l indugtrY experierced
a cAGR O 6:1 from yea 998to 2013.
9TowJh at

OTganis ed vctail n India has

Duing FY 200 2012, th e
eYpanded at a CA GRof 26.4 7 advance d ohe
eypansion of o l a l z e l a i l ir Jodia duoing dhe Same
peiod. "he con.gjdered 9o ow h Can be creditedto
he developin Jndian cconomy , dise n Private Fina
Consurnpdlon Expond
ndifure dmd h ove d h e consumpie n

Palern of he Jrcian population

Page 1

3. ROLE OF INSORM1ATION SYSTE MS IN FOOD RETAIL:

One of the ipotant atribufe oP the certor o

retailing is the 1echnology. Tme major differert intor

ohe Su ccessful and non-Successtul edaileT: i
he sector of echnology, a 1 Providei advamtage
in terMs of cost as coell ag SerrVICe

The e t a i linq technoloqy indensive"

industry is largely a

area and it is en that there is atransfer of

over 5oo GB data through Sate lli te from sa les poin ts
that armoundt fo 120o couners ot etailes to the
i s a close
headgtarters of the corpoTate The re
.

associa tion of he leadinq retailers cwith the vendors

the consumers Could be
So
tha he demands of
Predicted and he Could also be shorte ning of
the lead times. As a resu the inventoy hold ing
and hence the cas+ is a lso Saved
iS alsso reduced

For tood retails, h e in ration of tec hnology

Can be en in he use of doive h r o g throuh
and
Kiosks digital n t e a c ive
technoloqy, in telligent
banners wireleSs and
advetisements and display ,

automated
blue tooth Scanners Self - ordering syste ms,
til
billbng Systems The t s e ofthese technologies
retailers opevation s more cfficient
rake he
to be tech and Ca ainlh-cm
appear high
Cormpetiive advantege and in 4he
on roajor COst Savin S
Pase-1o

3.1. Technolcgy doiven alue chain change

One of the greatest changes in the food retail
value cha in in the Iast 25 Years wa brought

about by the tlse of Pos_data generated by

to better
ScannerS at the che ckout by etaile r s
purchasing b e h a v i o r , and
undeStandConsurmer
thus improve everqthing from inventory m a nnagement
to broduct promotHon. Be c a u se retai le rs had this
data and the
Knowledg2 t Provided, thei
bargaining power
as buyers CPoater's fouth force)
in elaHion to their Suppli eTs
3reat'y
Strengthe ne d.
identity cwhich items ar

Retailers can new

notBetween 199
cwhich are
Sellig e and items
distinct product
numbe of ceased
and 20o8, the retailer increas
in
average
food
Carried by the
47,O00.
b y 5 0 . to

technological
advance impa cing
The next majoT
Supply chain and inventoy management
TetailerS RFID)
identification device
is adiorequency
that
cohichessentially
involves microchips
and Can be e a d by
scanner badco des
Tepla ce Walma, fo instance
adio wave foom a distance.
in investing
he lead among Tetailer
s
ha taKen
in the new dechnoloqy and reqiain its Suppliers

Ho adop RF 1D

inally, the qn cuh c Smao1 phones cc1 ct myoiad

location pin peinjing is
of capplicatjons, including
openin9 a w i c l e an9 of
new MaaKeling peossibilkies.
Page -11

Hhedechnologic al innovotions hot has acelerated

he boom othe foodetail ae:
Sma shopping Carts AT powe red shopin caTtS

that has a plug and play soluHon)

Electronic shelf Label(used fov displaying product

shelves, with auto updation feature)
pricing on

- Virtual ReolityExperience: ( u s e d to experjen ce Shopping

anythin anyuwhe re, any Himl.)

ele ct
seg ment oP
Tonic
a sub
DgtaSiqnage
dig ital promotion solution)
Signa- tha PrOvides

4 NEED OF ADAPTABILITY FOR RETAILERS SURVIVAL

In order to thrive, today's retailers rust evowe

from a Pro duct centric ast to a futuTe focused
on inceasing elevance by providing qreater value
added custormers. For instance, while Walmart Sti
do es bu siness out of housands of stores, they now
ealise that oday Ss consumer tlow betcoeen digital

and physical in heir Shopping ourney. These etailers

that are thriving ae e volving Combined blend of
phygital srategies hat make shoppi ng seamlessfo

CustomfrS, wnene ve v and cwher e ver the y choose to shop.

Ihe veasons cevhich caters fo the Tising need of

ada ptability fov a food r e l ailes s u v i val a7e

(a) Rising Customer expectations or elevance

As aetculers a r e batling to ce an
de by poviding
beHer value to the customerS, hese CtStomerS AYe
e - 12

expecl ing mo lhan produ c cr even free deliverry

hey ce d e m a n d ing moe Value 1n cays hat dre

elevand do hem CuStormevSs C e increasingly

Situational shoppe as". nlhen pressed fo ime hey
migh chos e online, or cicr and colle ct hen they
Leant to understand how produc+s fit thei7 needs
handc on expe-ritnre
and lifectyle, they head to Stores fo
experrience,
Ho we Ver, aS a unction of digita evels oP
customevS now accus tome d to new
Cove nien ce Cons)she cy tnd Custonmis aion.

(b) High Compeition

Fach compony is trying to outsmast he other
by adapting the late technology or providing

Superio customer value

togain a Competitive

adv anage

(c) Evolution of technoldqy

With he advent of Smart digital technologies,
a C u s t u m e d t o Conve
nie NCe
Custorer S have been
For ex lalmax s Scan and Go dechnolo gy
Scan items
them
and add them
allows custome r s t o
c a r t and eave coithout goinq throu}h
into h e
a tidiou billing pro ces s.

(d) Environrmenta Changes:

Pandemics ike COVID -19 has he abality to doamantically
changethe fate of food »etai less. INhile manv ence- Ieading
tailers have liSappeaTe d ne more brands aTe in

Peil, cHhers managcd do suOvice st because

adaptccd do -hc change and accepted his as the

Neu no mal
Page-13

5. CONC LUSION:

The retail industry in India ha ve we adapted

he change of technology and is in the ProcesS of
a
digital trancformation. Sinee the retail apocalypse.
Started about a decade ago, the need to digitize
Save costS and automate ranked high on the

agenda of retail companies.

hese
Cost savings and automation efforts, al we
aen see in a digital transformation Strategy that
follows o Staged Jou ?ney, among othe s needed to

enhance he Shopping experience and enable

retalers to reinvent themselves. Innovaion,
changes in businegs model s, ecosystems appro ach es
the adoption of new technologies a tocus on
brand puTpose and value
differe t ways to
eng2ge
with consumersthey're al of
part this
exercíse ongoing

Armong the many challeng es, cwe Sau roding margins

the growth f e-commeace, declining visits to
malls
the success of o-cStretcilevs changing consum.
behaviour/ needs, the list is endless .As if thad wasn't
enough, the CTiSiS caused by CoviD-19 has
bro9ht
C catastrophic impack for the retaileS The only
Ceay to deal cwith 4his is to adopt to the new-noymal
and s e the Iatest availa ble technologiei o deliven
Value to he cuctomer cohile exce ciS)N al Safety