A Case On Indian Retail Essay

The Indian retail format is extremely fragmented with 96 % of its concern being run by about 12 million retail mercantile establishments in the unorganised sector, like the traditional household run Kirana shops, the organized retail in the few old ages had made an impressive visual aspect largely in the tube, metropoliss and towns across the India ; as seen in sprawling shopping centres, multi storeyed promenades and immense composites that offer shopping experience, amusement, nutrient and many more things under one roof.

Indian retailing market via medias of both the organized and the unorganised retail formats, India ‘s retail market is estimated to be deserving USD 350billion.

Organized retail is estimated at USD8 billion, organized retail is turning at over 30 % on annual footing.

Of India ‘s ( 12 ) million retail mercantile establishments, about 80 % are operated by the little household concerns utilizing family labour.

The retail industry represents 13 % of GDP and histories for 6 % of the India ‘s work force Burgeoning growing rates in the retail industry are attributed to:

· Growth in India ‘s economic system,

· Changing ingestion and outgo forms,

· Rising incomes


The Indian Sports Goods Industry is about a century old and has flourished due to the accomplishments of its work force. Bing labour-intensive in nature, the Indian athleticss goods industry provides employment to more than 5,00,000 people.The athleticss and leisure goods retail market in India was valued at US $ 17.7 billion for 2007-2008.

The market grew at the rate of 18 per cent over 2006-2007 in value footings, chiefly due to outlet enlargements by industry participants. The karyon of the industry in India is in and around the provinces of Punjab and Uttar Pradesh. Jalandhar and Meerut together account for about 81.8 per cent of entire domestic production with more than 3,000 fabricating units and 130 exporters present in these two towns. About 60 per cent of the athleticss goods manufactured in Jalandhar are different sorts of inflatable balls and supply direct employment to more than 1000s of workers

Sports Wear Market in India

With rapid economic growing, immense population base, lifting income degrees, altering life style and consumer penchants, India has witnessed enormous growing in its sportswear industry over the past few old ages. The state has been working its favourable demographics, which make it one of the most attractive finishs for both domestic and international athletic wear participants to hard currency on the extremely moneymaking market.

As a consequence, all the international participants, including Nike, Adidas and Reebok, are endeavoring hard to catch a portion of the money-spinning market. “Sports Wear Market in India” anticipates the current size of the Indian athletic wear industry worth over INR 355 Billion, which is expected to turn at a CAGR of about 45 % between 2010 and 2012. The current market estimations and future projections are wholly based on the set of executable market tendencies and Indian demographics, which take into consideration consumer behaviour and disbursement forms that may impact growing of the sportswear industry.

The study has studied the Indian athletic wear market by sectioning it into assorted subdivisions – athleticss footwear and athleticss dress, rural/urban divide and gender-wise demand projections. Our extended research on this industry has found that the current athletic wear market is dominated by the athleticss dress sector, but future growing will be driven by the athleticss footwear section.

Our research besides elaborates the fact that there remains a huge difference in the purchasing wonts and purchase determination devising of Indian consumers if we section them on the footing of urban/rural divide. A similar alteration in the consumer behaviour and purchasing forms besides hold true in instance of how the industry participants are aiming the work forces or adult females sportswear section. All such scenarios have been exhaustively covered in the study.

“Sports Wear Market in India” provides comprehensive information and rational analysis of the sportswear market in India. It gives an penetration into the current market trends together with future projections sing all the macroeconomic and other factors. Factors which are fueling growing in the Indian athletic wear market have been discussed in item along with the challenges that could blockade smooth running of the industry. Besides, the study besides offers rational analysis of cardinal sportswear companies in the state

Playwell athleticss

We understand u, we care for U

Why sportswear retail?

India is one of the fastest developing states in the universe. The economic status of people is bettering twenty-four hours by twenty-four hours and the consumer behaviour is switching really quickly. The consumer is going more and more trade name witting. The Indian young person starts making a occupation in early mid-twentiess and firmly believes in work-life balance this has resulted in fast spreading of secondary schools and wellness nines. The demographics are altering and baby boomers are in retiring stage.

All these factors are favourable to increase the demand of choice goods in the Indian market. India is good known for fabrication of athleticss equipments all over the universe, but most of production is exported to developed states for there is more demand of athleticss equipments in developed states as compared to developing states. India cricket squad is fast going the universe power in footings of public presentation more and more people like to see Tendulkars ‘ Dhoni ‘s in their childs as compared to the scenario a decennary ago. India is making good in other athleticss as good so there is immense chance in this sector

Retail shop name: The name of our retail shop is “playwell” .

Ownership: is the province or fact of sole rights and control over belongings.

Though there are assorted options available to us sing the ownership like

O Independent

O Partnership

O Corporate

O Franchisee

We will run our concern on the partnership footing. We are two spouses in this concern. By holding a partnership the power and authorization will non acquire diluted.

Assortments: –

Sing the assortments we are traveling to hold batch of options in this subdivision. When we see the retail shop from assorted points of positions, we are holding many assortments of national trade names of athleticss equipment and athletic wear for our shop like

1. Addidas

2. Rebbok

3. Slazenger

4. Jonex

5. Spartan

6. Nike

7. Dick ‘s

Further we will present our in-house trade name under the name we will sell high quality dresss, footwear, cricket chiropterans, hockey sticks, etc. the fabrication of these merchandises will be outsourced to those fabricating units which manufacture for national trade names like Adidas, Nike, Puma, Slazenger, jonex etc.

Assortments: –

We have deep mixture of ware in our shop. The ware mix includes all the dress for all sort of athleticss and all the equipment needed in cricket, hockey and tennis besides selected equipments will be made available in our shops.

Services: –

We think client relationships, non merely client service. We provide those better services to our valuable client which by and large other retail does non supply to their client. So the services which we provide to our client are ; Credit purchase, gift wrap, bringing service, siting countries, in-store events or after hours shopping cardinal air – conditioning, beautiful remainder suites, , big auto parking, in – shop cafe , and other services such as, exchange services.


Establishing more than one manner for clients to shop for their merchandises, is a method for us to try to turn monthly grosss and derive new clients. Presently ; we are holding merely the shop as a channel and In future for implementing multi channel we will sell the merchandises through mail orders, catalogs every bit good as we through on-line i.e. through cyberspace.

We will get down utilizing the Internet in an effort to better the efficiency and effectivity of selling, provide clients entree to information about merchandises and their handiness, construct trade name value, and to offer clients a convenient medium to do purchases online. Our chief focal point to sell our merchandises through online will be because on-line sportswear retailing is a good established gross revenues channel in most parts of our state. ; Comparing the information of old old ages about 20 % sale of athletic wear ( dominated by footwear ) was made through online installations. So we will seek to utilize largely sell our merchandises through online in future because it is one of the cheapest or best manner to sell merchandise which helps batch to the consumers or retail merchant every bit good.

The retail concern is a competitory field ; Before get downing our ain shop we have to understand the kineticss of this industry and the factors impacting demand for places.
Operational Plan

Format of retail shop

The retail format for featuring goods would be like something which can be easy accessible and accessible to the clients. It is a sort of forte shop which would be located near to metropolis. Forte shops are those shops which provide limited figure of merchandises at high monetary values. But we will supply sportswear at more sensible monetary values.

In this shop we are holding different subdivisions for different ware. There are subdivisions within the shop which are holding specific ware. There is footwear subdivision, dress subdivision and equipment subdivision. These subdivisions are farther divided harmonizing to the type of shop they are used in. There is cricket gallery, futbol gallery, hockey gallery, “tennis court” and there are physical fittingness subdivision including rowing machines, steping Millss, dumbbells, etc. This shop will be situated at the location which can be easy approached by the possible clients

Target market:

Our mark markets are teens, immature grownups, wellness and fittingness partisans, cricketers, football players, shutters, hockey participant, babe boomers who go for forenoon walks and are wellness cautious. School traveling childs and today immature, energetic adult female


We evaluated assorted location options on the footing of entree to aim market, age income and life manner, transit costs, handiness of retail infinite etc. After the rating of these options17, sector Chandigarh. This location is easy accessible from Jalandhar, which are fabricating hubs of athletic wear. There are assorted advantages of this location. Associated with advantage, comes some disadvantages every bit good. These advantages and disadvantages are tabulated below.

Advantages Disadvantages

Easy entree to aim market

High leases

More upper category people

Presence of rivals

Large figure of schools

Warehouse charges

Low transit costs

Traffic jams

High dispensable income

High operational costs

For our retail operations will take retail infinite on lease footing. The rental will be on the footing of fixed-rate rental. With the growing of our concern we will research nearby markets every bit good. we are be aftering to open the retail concatenation under the name “playwell” .

Supply CHAIN

Since to run a shop efficaciously, Logistics and Supply concatenation should be maintained decently.An uttermost attention should be taken while covering with the providers as the hereafter of any concern depends on them. .we are straight traveling to near the makers straight, so that procedure will take less clip and we satisfy the client really good. By utilizing this supply concatenation we maintain lower stock lists than traditional retail.

The providers from which we are traveling to acquire our stock list are:

1. Addidas

2. Slazenger

3. Rebbok

4. Jonex

5. Nike

6. Dick ‘s

7. Local makers

8. Kashmir athleticss equipment association

The consumer purchasing is a complex procedure as many internal and external factors have an impact on the purchasing determinations of the consumer.

Before buying any merchandise or service a client goes through many procedures like

1. Problem/Need Recognition

Need is the first measure towards a purchasing procedure as it a desire in a client to purchase a merchandise.when a consumer R faces a job in the absence of any merchandise this generates a demand in consumer for that merchandise.

2. Information hunt

To acquire his job solved /to carry through his demand the consumer starts to acquire information hunt to assist him through their purchase determination. There are assorted beginnings of information for every consumer. Beginnings of information could be household, friends, neighbours who may hold the merchandise the consumer holding in head, and instead they suggest the consumer about that merchandise

3. Evaluation of different purchase options.

After acquiring the information about the merchandise the following step- is followed by the evalution of the different trade names of the merchandise available in the market. Consumers allocate attribute factors to certain merchandises, about like a point marking system which they work out in their head over which trade name to buy. This means that consumers know what features from the challengers will profit them and they attach different grades of importance to each property.

4. Purchase determination

Through the rating procedure discussed above consumers will make their concluding purchase determination and they reach the concluding procedure of traveling through the purchase action e.g. The procedure of traveling to the store to purchase the merchandise, – which for some consumers can be every bit merely every bit honoring as really buying the merchandise. Purchase of the merchandise can either be through the shop, the web, or over the phone.

Post Purchase Behavior

Post purchase behaviour is a common trait amongst buyers of merchandises. Manufacturers of merchandises clearly want recent consumers to experience proud of their purchase ; it is hence merely as of import for makers to publicize -for the interest of their recent buyer so consumers feel comfy that they own a merchandise from a strong and reputable organisation. This limits station purchase behaviour. i.e. they feel reassured that they own the latest advertised merchandise.

Factors Affecting Demand for Places

As a retail merchant, the first regulation is to understand the triggers for buying our merchandise. Knowing the factors -affecting demand for places enables us to react more rapidly to the demands of the market.

Below are the common factors impacting demand for sportswear:

Monetary value: Indian consumers are highly monetary value witting and value driven. The kernel of consumers demand response is to purchase less at high monetary values and more at lower monetary values. Consumers are by and large price-conscious when they are traveling to purchase anything. But we are aiming to middle & amp ; high category clients in which by and large come young person. So we offer fewer monetary values for our merchandises but non so less..

Demographics: The features and size of the population besides impacts the demand for sportswear. Heavily populated countries like metropoliss have greater demands for sportswear comparative to smaller towns.

The demographics of the country environing the shop besides impact the choice of the merchandise.In the center of the busy downtown country or concern subdivision of a town ; it is found national trade names places are in greater demand relation to other trade names

Changes in Disposable Income. Income dictates the pick and frequence of purchase of athletic wear. A household with increasing incomes may happen itself holding more money available for the purchase of athleticss and leisure equipments. A household with shrinking income, – nevertheless, may happen sportswear purchase at the underside of their precedence.

For a high-income country, one can anticipate a strong demand for trade name names, peculiarly high-end types of athletic wear, equipment every bit good as dresss and places. Low-income countries are more likely to be price-conscious: our clients will demand good quality merchandises at low-cost monetary values.

Weather: Weather is a major determiner in the choice and picks of athletic wear. In the summer months indoor games are preferred more as compared to outdoor games due to searing heat of the Sun. Breechess, Sandoz, will happen greater demand in these months. In the fall football players will see to our store in big Numberss while as cricket is played about throughout the twelvemonth. while boots are in great demand during the colder months our stock list needs to take into history the seasons in purchasing our stock list.

Target market: the mark market specifically their age and purchasing power besides shapes the expression, feel, manners and merchandise offerings of 1s athleticss shop. Baby boomers every bit good as older members of the Generation Y- typically have greater wealth, and can therefore, afford to purchase more expensive dress and places. Today s younger coevalss including adolescents have greater disbursement money ( e.g. parent ‘s recognition cards, higher allowances ) and can afford to shop places for themselves.

Economic Factors. The industry typically follows the volatility of economic swings and downswings. A billowing economic system frequently leads to good gross revenues, while gross revenues may take a nosedive during economic recessions and flop.

Human Resource:

Human resource direction can be the footing of sustainable competitory advantage for three grounds ; foremost labor costs account for a important per centum of retail merchant ‘s disbursals, therefore, effectual direction can bring forth a cost advantage. Second, the experience that most clients have with a retail merchant is determined by the activities of employees who select ware ; provide information and aid and stock show and shelves. Therefore, employees can play a major function in distinguishing the retail merchant ‘s offering from its rivals. Third, these possible advantages are hard for rivals to double.

Administration construction

Since ours is a little administration as compared to other retail merchants present in the market, ab initio we will hold limited figure of employees. I will be working as owner-manager and my spouse will look after accounting section. We will together execute the functions of ware directors for some clip and after some clip will engage services of a professional in this field. Human resource expertness will be given the responsibilities to look after shop direction and human resource direction. I will look after the distribution section. Twelve gross revenues adult male and 2 assistants will be employed ab initio on the contractual footing.

Figures: Organization construction


Allotted to

Owner director

Younis Hamid ( me )


Yasir Hamid ( spouse )

Merchandise trough

Yasir Hamid

Ad director

Younis hamid

Shop director

To be employed

Gross saless people

12 Numberss, to be employed


2, to be employed

Motivating employees:

A critical undertaking of human resource direction is to actuate employees to work towards accomplishing the house ‘s end and implementing its schemes. We will utilize two methods to actuate our employees ‘ activities

1. Incentives

2. Organization civilization.
Selling Plan

RETAIL Selling Scheme

A retail scheme is a statement placing retail merchant ‘s mark market, the retail format to run into the demand and demands of the clients of mark market and eventually to construct a sustainable competitory advantage.

Target market:

Our mark markets are teens, immature grownups, wellness and fittingness partisans, cricketers, football players, shutters, hockey participant, babe boomers who go for forenoon walks and are wellness cautious. School traveling childs, today ‘s immature, energetic adult female.


We are supplying the quality sportswear at comparatively lower monetary values than the other local market participants ( by take downing down the borders ) so as to construct a strong competitory advantage. There are services provided to consumers along with the merchandises so as to derive their trueness such as good dedicated staff to manage their questions.there questions will be solved in merely one chink at web site.


As we are non traveling to present any new merchandise in the ab initio in our retail shop, the monetary value of our merchandises will be slightly preset, the lone thing in pricing would be that we will take down down the border as compared to our rivals. This will give us a competitory advantage over our rivals.

We will utilize grade up method of pricing, for national trade names the border will be mere 5 % while 20 % border will be kept on our in-house trade name, dwelling of quality athletic wear and equipment.

Promotion determination: –

Promotional mix is a really of import facet of each and every concern organisation. Our promotional mix will be dominated by gross revenues publicities. As a portion of distinguishing our merchandise offerings from that of other rivals in the market we will concentrate on gross revenues promotional tools and personal dealingss conduct events and publicity runs to unite amusement with shopping. We will patronize athleticss events in colleges and schools. We will besides administer free cricket and football kits under our ain trade name name in the schools and among local country athleticss nines. We will besides include advertizement in our publicity mix.

Ad can be in the signifier of print and electronic media. In electronic media the advertizement will be carried in local telecasting channels and fm wireless Stationss. Print media will include advertizement in local intelligence documents, billboards, streamers, etc. we will besides put in a big LCD in the front office demoing unrecorded cricket lucifers and besides some of the India ‘s greatest minutes such as Olympic gold decorations in hockey and pugilism, cricket universe cup 1983, t20 universe cup 2007 etc. hockey ‘s Surprise Sale and, , Campus Stoppers and Valentine Promotion. As cyberspace besides becomes one of the chief beginnings in retailing so we promote our merchandises through cyberspace besides.

O Festival offers: In this we are traveling to offer certain price reductions as per the monetary value of the merchandise during festivals. The price reduction rates will be

Up to rs.1000 …… . 5 %

Up to rs. 2000……..8 %

Above rs.3000……10 %

O Gift Coupons: will be given to consumers who are traveling to shop above Rs.3000 at one clip.

O Scratch cards: will be given to a loyal consumer, it will transport the lucky no. for a circuit outside the province for one hebdomad.

Communication mix: –

As Consumers are aloud demanding to be able to entree relevant information through the channel of their pick, which means that the more channels an organisation offers their clients, the better response they will acquire. So for this we contact consumers is by a combination of channels such as a piece of direct mail, Television place shopping, skill full employees, nomadic phone or hypertext transfer protocol: //kona.kontera.com/javascript/lib/imgs/grey_loader.gif

with a pick of channels for the response mechanism, or an SMS with an online verifier codification, all these possibilities help hone in on our apprehension of what makes the client tick.


Fiscal system is an built-in portion of retail merchant ‘s market scheme. For every organisation finance is of extreme importance in other words it acts blood for the organisation. The fiscal determination is taken maintaining different things in head like the starting disbursals, the stock list cost, the future extension of the concern.

As we are traveling to run our concern on the partnership footing and maintaining all these things in head we have decide to put Rs.4 crores ( 2 crores by spouses ) , for the remainder of money we are traveling to near the bank.

Fiscal aim:

Our fiscal aim is to gain 15 % return on the investing. We will jointly work to accomplish this fiscal end.

Social aims ;

Our social aim is to supply the immature athleticss partisans with better and competitory equipments and assist immature buds to execute good in the field of athleticss.

Personal aim:

Personal aim is be a celebrated name the athleticss circle of India. This will merely go on when our concern will spread out throughout the state.

Get downing disbursals:

Since for set uping a concern a certain cost is incurred in the initial stage before sale, so our concern of retail shop will besides incur certain get downing expenses.An initial cost of one chromium. will be incurred on geting retail infinite on rent footing. Monthly rent of 20000 will be paid to the proprietor all legal formalities will be done with the consent of Delhi high tribunal. These disbursals will be incurred on following things.

After geting retail infinite some disbursal will happen on the shop Construction and Design. These disbursals are as follows:

Shop building: remodeling ( flooring, picture, woodworking, etc. ) Interior design and decorating costs

Fixtures and Leasehold Improvements ( fire dismaies, public toilet ascent, warming, air conditioning, etc. )

Installation costs ( illuming, etc )

Displaies, show windows, shelves/racks, gross revenues counters and gross revenues registries

Back-office furniture, postponing and fixtures

Type of work

Estimated cost

Shop building: remodeling ( flooring, picture, woodworking, etc. ) Interior design and decorating costs

5 lac.

Fixtures and Leasehold Improvements ( fire dismaies, public toilet ascent, warming, air conditioning, etc )

2 lac.

Installation costs ( illuming, etc ) Displays, show windows, shelves/racks, gross revenues counters and gross revenues registries Back-office furniture, postponing and fixtures.

2 lac.

Occupancy Costss

* Rent

* Utilities and other sedimentations ( telephone, H2O, electricity/gas, cleaning )

* Insurance ( fire, larceny, etc. )

* Fees and Licenses

* Legal fees –

* Licenses and permits-

* Professional fees –

* Merchant history fees ( for accepting and treating recognition cards )

Promotion Expenses

* Store signage,

* Advertising and publicity for launch

* Visuals.

Operating Expenses

* Opening Inventory, –

* Bags and boxes with shop logo.

* Gift wrapper supplies ( if gift wrapper is offered )

* Cash ( militias and on manus )

Administrative Costss

* Office Supplies,

* Gross saless grosss,

* Cleaning supplies ( window cleansing, rubbish tins, swab )

* Assorted

Employee Costss

* Wages and rewards,

* Payroll-added costs


* Computers, transcript machine

* Point of gross revenues systems ( Credit card and look into processing machines, saloon codification reader, hard currency drawer, hard currency registry, POS package, etc. )

* Fax machine

* Security cameras and equipment including fire asphyxiators

* Gross saless floor equipment ( baskets, bags, shopping carts, client siting countries, forte lighting )

* Mirrors

* Other marks ( Exit, public toilet and shop hours marks )

* Other equipment ( imbibe fountains )


* Unplanned disbursals

* Assorted fees

*Customer relationship direction:

CRM ( client relationship direction ) is a concern doctrine and set of schemes, plans and systems that focuses on placing and edifice trueness with a retail merchant ‘s most valued clients.

There are four of import features that CRM system may offers:

1. First it will track and describe every interaction with a client, depicting the client ‘s purchase, involvement or demand. It will describe besides the altering demands of the client and the manner our concern reacts efficaciously to them.

2. Furthermore, the CRM will be a cosmopolitan instrument for roll uping informations about the service petitions, order entry, satisfaction and charge.

3. Third, the CRM will be able to mensurate the public presentation of the concern on the footing of internal benchmarks.

4. Last the CRM will ease the working procedures by stressing on the positive and exclude the negative patterns in covering with our consumers.

As all we know that consumer is the chief focal point of all sort of concern. So our chief focal point is besides to fulfill the consumer really good, so that if consumer wants to buy once more he will prefer to come merely in our shop. For this we develop CRM plans on clip to clip footing which will assist us to develop good consumers and so change overing these consumers into high ltv ( life clip value ) consumer.

We give particular services to our ltv clients besides like:

1. We give recognition purchase installation to our consumer

2. We give particular price reductions or gifts on clip to clip to our ltv consumer.

3. We besides provide place service to our consumer.


The cyberspace is a powerful tool to maintain up with the competition. At Zs footwear shop, CRM package and regular promotional electronic mails will be used. Constructing relationships is done better this manner. So, this is one factor which is really of import is the engineering which in bend has merely a supportive function in selling footwear.- Our shop is really concerned about engineering.

Computerization and effectual package systems have been implemented to manage the heavy, day-to-day minutess. The company ‘s web site which is www. Zs.com is being used to guarantee better footwear show and increased client database. Media and PR bureaus will be hired to let better client reach.- We have besides a privilege cards system ( Pt, gold & A ; Ag ) for our honored clients who get regular updates on freshnesss, publicity and seasonal offers via Sms, electronic mail and Mailers.

A footwear company faces the undertaking of maintaining, and accounting big figure of footwear points in a individual shop. So most footwear business- proprietors asking about implementing RFID which offers alone possibilities to the challenges confronting the footwear industry.

A well designed RFID sportswear solution opens new chances into garnering client trending for sportswear retail concern like our store.- A defected piece which is placed ill will make jobs among the 1000s of units displayed in the shop. RFID can implement a sensing system that could register each clip a design is being requested over the counter up to the point the sale is completed.

Other than this no other information systems are used in our shop because this is a new shop gap i.e. in its initial or turning phase. So can non utilize many systems which would be expensive for us. And which could diminish our net incomes every bit good.


India consumer is going more and more trade name cautious and looks for quality merchandises. Changing life manners of both urban and rural Indian is fast altering. It is more and more following the tendency as in developed states. With the growing of athleticss civilization in the state, the demand of sportswear and athleticss equipment is ever traveling to turn. The sportswear retail provides immense chance so puting in this concern will be a profitable venture.

After rating of the location options to me Chandigarh is a topographic point popular for shopping particularly in athletic wear. Besides our shop is in initial phase so I need to believe decently, do research of market and industry before gap and traveling farther. Our budget is traveling to be slightly higher. I need staff has been employed ab initio because if I gain net incomes so merely I will spread out more.

At first we will non look for the rivals but to tag a topographic point in the head of the consumers to do them loyal in the long tally. Then shop direction is besides done consequently as shop is big and high finance is available. But one thing is for certain that we would make a friendly, clean, concerted environment and staff so that clients feel delighted in every visit to our shop. They would love to see us once more and will go our loyal clients. And to do trade name image is our primary concern and after that is to derive net incomes.



htpp: //Learnmarketing.net/con


World Wide Web: Highered.mcgraw-hill.com/sites/007301978x/student

htpp: //Toostep.com/idea/improving-customer-relations