Merchand-I Primer

The Retail Club of IIM Indore

Prepared in association with the Placement Preparation Committee

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About Us
Merchand-I, the Retail Club, is a student initiative whose aim is to provide a wide variety of products and
services to the IIM
Indore community.
Planet-I shop (fondly know as Pi Shop) is a student run not-for-profit retail initiative under the aegis of the
club. It offers range of products from Personal care, Food and Beverages, Stationery, Bakery and so on. It is
operational seven days a week, from 4:30 pm to 12:00 am.
We also offer services by bringing bulk deals from prominent food chains such as KFC, Pizza Hut, Burger
Planet etc and bulk deals for Formal suits from Raymonds. Additionally, the club is also involved in
numerous merchandising activities - be it in designing and printing customised T-shirts, mugs or other
paraphernalia and IIM-Indore branded products.
“We make Life easy at Planet –I”

Contact Us:
Pishop,
Ground floor, Community Center, IIM Indore Followus
merchandi@iimidr.ac.in https://www.facebook.com/1merchandi/
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Senior Team Members

Mansi

Princi Anjali

Harish
Sri
Piyush
Harsha
Karthik

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Retail Evolution in India
Retailingincludesalltheactivitiesinvolvedinsellinggoodsorservicestofinal customersfortheirpersonal,non-
business use.A retailerisanybusinessenterprise whosesalesvolumecomesprimarilyfromretailing.
• Pre-1990s 1990-2005
• Manufacturers opened their • Pure-play retailers realized
own outlets. the potential of the market
• Most of them in apparel
• Segment(ABFRL, Lifestyle
etc.)
Prepared in association with the Placement Preparation Committee
Merchand-I
2005-2010 2010 onwards
• Substantial investment • Cumulative FDI inflow from
commitments by large April 2000 to December 2017,
Indian corporate. in the retail sector, reached
• Entry in food and general US$ 1,141.5 million
merchandise category • Movement to smaller cities and
• Pan-India expansion to top rural areas (Eg: Walmart
100 cities established in Tier 2 and Tier 3
• Repositioning by existing cities)
• More than 5–6 players with
players
revenues over US$ 1 trillion by
2020
• Large-scale entry of
international brands (Eg:
Walmart)
• Approval of FDI limit in multi-
brand retail up to 51 per cent
• Rise in private label brands by
retail players (Eg: Nykaa)
• E commerce has emerged as
one of the major segments
• 100 per cent FDI in single
brand retail under the
automatic route
• 100 per cent FDI in Online
Retail
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Indian Retail Industry

 Indian Retail Industry accounts for over
Food and Grocery is the largest category within
10 per cent of the country’s Gross
Domestic Product (GDP) and around 8 the retail sector with 66 percent share expected in
per cent of the employment. FY20 followed by Apparel and the recently
 India is the world’s fifth-largest global growing Jewellery segment
destination in the retail space.
 The overall Indian retail market is
expected to grow at 12 per cent
per annum
 It is expected to nearly double to US$
1 trillion by 2020 from US$ 600 billion
in 2015.

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Retailing Terms

Terms Definition
Content (About 4-6 slides)
Brick and Mortar It is a traditional "street-side" business that deals with its customers face
to face in an office or store that the business owns or rents. Local
grocery store is an example
Click and Mortar/Brick and Click A type of business model that includes both online and offline
operations, which typically include a website and a physical store. Eg:
Adidas online store and Brand outlet

Electronic commerce/E commerce A type of business model, or segment of a larger business model, that
enables a firm or individual to conduct business over an electronic
network, typically the internet . Eg: IRCTC website
Electronic Retailing or E tailing The sale of goods and services through the Internet. E-tailers are not
restricted solely to the Internet, and some brick-and-mortar businesses
also operate websites to reach consumers. Online retailing is normally
referred to as e-tailing. E-Tailing includes various consumer
products/services such as electronics, apparels, footwear, jewellery,
home & kitchen appliances, consumer durables, furnishings
Same store sales It is a business term which refers to the difference in revenue generated
by a retail chain's existing outlets over a certain period (often a fiscal
quarter or a particular shopping season), compared to an identical
period in the past, usually in the previous yea

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E-Commerce in India

Content
q The Indian e-commerce market is expected to grow(About 4-6billion
to US$ 200 slides)
by 2027 from
US$ 38.5 billion as of 2017. The growth seems to have slowed down.
q As per the new FDI rules, all Indian online marketplaces are barred from offering
deep discounts, entering into exclusive selling arrangements with vendors or selling
products from entities in which they hold a stake.
q Ecommerce market in India still account for only 2.7% of the total retail sales in
India.
Major Growth Drivers : E-commerce
• Mobile Internet penetration.
• Growth of Big Data.
• Social Media.
• Third-party logistics. E-Tailing
Online
Ticketing/Travel Online Deals
Online Portals
• Change in “Can’t touch, Won’t (≈43%) (≈53%) (≈1%)
buy” attitude.
• Improved payment and delivery
services. Online Retail
Online
marketplace
• More businesses from Tier 2 and (≈35%) (≈65%)
Tier 3 cities.

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Online Retail in India

Online Retail Trends:

Ø AR and VR Content (About 4-6 slides) Online Retail In India
(in USD billion)
Ø Voice commerce- Amazon Echo and Google Home 80 70

Ø SaaS (Software as a Service) solutions 60

Ø Modern delivery 40

Ø Social Shopping 20
3 6
Ø Content Marketing 0
2014 2015 2020E
Business models
Market place Model : It is a type of e commerce
business where product and inventory information is
provided by multiple third parties, whereas transactions
are processed by the marketplace operator

Inventory Model : In this model, the online operator owns

the products and inventory along with the business
transactions

Hybrid Model : It is a combination of marketplace and

inventory models

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Benefits of FDI in Retail

• Minimum investment cap is US$ 100 million

• Content (About 4-6 slides)
30% procurement of manufactured or processes products must be from SMEs
• Minimum 50% of total FDI must be invested in backend infrastructure (logistics, cold storage, soil testing labs, seed farming and
agro-processing units)
51% FDI • Removes middlemen and provides better price to farmers
in multi- • Development in retail supply chain system
brand • 50% of jobs in retail outlet could be reserved for rural youth and a certain amount of farm produce could be required to be procured
retail from poor farmers
• To ensure the Public Distribution System (PDS) and Food Security System (FSS), the government reserves the right to procure a
certain amount of food grains
• Multi-brand retail would keep food and commodity prices under control
• Will cut agricultural waste as mega retailers would develop backend infrastructure
• Products to be sold under the same brand internationally. Sale of multi-brand goods is not allowed
• 100% FDI allowed in single-brand retail under the automatic route
100% FDI
• Single brand retail entities have been allowed to set off their incremental sourcing of goods from India for global operations during
in single
the initial five years starting from the 1st April of the year of the opening of first store, as against the compulsory sourcing
brand ret
requirements of 30% of purchases from India
ail
• 100% FDI in retail trading of food products manufactured or produced in India
• Liberalization of FDI is expected to give a boost to ease of doing business and Make in India
• The e-commerce firm is not allowed to directly/indirectly influence the sale price of goods/services, and is required to offer a level
100% FDI playing field to all vendors. Vendor selling more than 25% of its wares will deemed as inventory model in which FDI is not allowed.
in Online • Cashback or quick delivery services have to be applicable to all vendors on their platforms.
Retail • Reduces the transaction costs for the ultimate consumers, increased outreach, impetus t manufacturing sector.
• Will potentially lead to influx of capital, enhance the growth potential and improve supply chain efficiency.

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Retail Innovations

VirtualStore
Content (About 4-6 slides)
Tesco has made the walls of subways/airports into
virtual displays of products with barcodes which
customers can scanning using it’s app on their
smart phones and get delivered right to their
doorsteps
http://www.youtube.com/watch?v=7JItU05mjCk
3D QR
Codes
Emart ,the largest retail store chain in South Koreahas
introduced “The SunnySale” which involves a3DQRcode that
is placed acrossthe city and could only be scanned during the
hours of 12 noon and 1pm each day, due to the sunlight
casting ashadow to complete theQRcode. Anybody who did
scan the code wasgiven a special discount code coupons
which could be redeemed in store or through their mobile
or e-commerce site.
http://www.youtube.com/watch?v=EvIJfUySmY0

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Future of Retailing

Content
Tesco2020 - Improved Shopping Experience (About 4-6 slides)
The given link is an animated video from Tesco that
explains how the shopping experience will be in 2020
with the help of Virtual Reality and their Super
Stores.

https://www.youtube.com/watch?v=F8H2rUSJldQ

Omni Channel Retailing

• No sales assistance and less stocks on display

• Interactive Kiosk that captures the needs of
the customers
• Virtual Wardrobe
• Remote POS system

https://www.youtube.com/watch?v=whpT6VknpEc
https://www.youtube.com/watch?v=CRaiadNn_nw

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Assignment/Exercises

The Government has tightened norms for e-commerce firms and have disallowed e-commerce market places to give
preferential treatment to certain vendors or brand as well as promote businesses in which they have a stake or offer
huge discounts. How will this impact the Indian retail sector? How can Ecommerce companies turn this around? (2
pages)

Mail the Word/Pdf file to merchandi@iimdr.ac.in.

The Naming Convention to be followed is : Your Full Name_CAT ID

Deadline for Submission : 30th June, EOD

The best 3 submissions await Pishop coupon of 500 each and other attractive goodies!

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