Global Business School

Organizational Study On

Assigned By,
Prof. Jagadish Patil Faculty Retail Management Global Business School Hubli

Assigned To, Raghav K

INFINITE
Moving Towards The Limitless Power
GLOBAL BUSINESS SCHOOL

Twin-City Campus: Opp. Hubballi Residency, NH-4, Bhairidevarkoppa, Hubli- 580025 Academic year 2012-2013

INTRODUCTION Retail in India Retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. The retail industry in India is currently growing at a greater pace and is expected to go upto US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year growth rates; the consumer spending has also gone up and is also expected to grow further in the future. In last four year, the consumer spending in India climbed up to 75%. As a result, the Indian industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. India Shopping Malls Scope of the Indian Retail Market Indian Organized Retail Market Growth Factors in Indian Organized Retail sector Opportunities in Indian Organized Retail sector Challenges facing the Indian Organized Retail sector Role of Supply Chain in Indian Organized Retail Employment Generation by Indian Organized Retail Sector Indian Organized Retail Sector's Impact on Lifestyles

Emerging Trends in Indian Organized Retail Sector Growth of Retail Companies in India Evolution of Indian Retail FDI in Indian Organized Retail Sector

Reliance in retail Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited, which is based in Mumbai. RRL was set up in 2006 and marks the foray of the Reliance Group into organized retail. RRL has been conceptualized to include growth for farmers, vendor partners, small shopkeepers and consumers. It is based on Reliances backward integration strategy, to build a value chain starting from farmers to consumers. Company Profile Company Subsidiary Company Founded Headquarters Chairman and MD Store : Reliance Retail : Reliance Trends : 2007 : Bangalore : Shri Mukesh Ambani : Reliance Trends at U- Mall, Coen Road Hubli

Vision

To make RIL one of the most innovative companies in the world and to achieve breakthrough growth in revenues and profits by creating and implementing sustainable solutions.

Mission To be the most admired and successful organised Retail Company in India that materially enhances the quality of life of every Indian. Business Profile: The Apparel, Luggage and Accessories division of reliance retail has announced the launch of their first Apparel speciality store Reliance Trends. Reliance Trends store located at U- Mall offer some of the best Indian and International brands with the store area of more than 15,000sq.ft. Of shopping area, and has been designed and furnished by the best of the international design agencies to offer a high style and lavish experience to the Hubli consumer. The store layout compliments the evolving tastes and preference of fashion savvy consumers, giving them an opportunity to view/shop with ease, along with an army of well trained customer service associates to compliment the entire shopping process. Riding on the tremendous success of Reliance Mart at various locations across India, the apparel division of Reliance Retail is well on track to democratise fashion and make it attainable to the masses. The company is offering solutions to common maintenance problems through its state of the art innovative products like Ever White Shirts, Anti Stain Trousers, Wrinkle free range of garments, aromatic clothes for infants and quick-dry sportswear that ensures optimum moisture management. Product quality has been ingrained into the DNA of Reliance Trends and is integral to the mission of Grahak Devo Bhava. The quality system are designed, implemented and monitored as per international standards by a highly competent team of professionals. To deliver the customer the best value for their money, only those products that demonstrate an exemplary safety and quality meeting both implicit and explicit needs of the consumer are approved for purchase.

Some of the quality standards that are being followed are American Association of textiles, chemists and colourists. American Standard, ISO and BIS methods. For the first time in organised retail, Reliance Trends is introducing Made to Measure tailoring service offering customised fits to all the customers buying fabric from the store at prices compatible to neighbourhood tailors. Reliance Trends is offering a homogenous mix of private label of brands across mens, womens and childrens category to fulfil every customers requirements. The Network range of garments comprises of formal office wear and collection for men and women, while the Netplay range, showcases a smart casual collection for the evolving workplace. The DNMX range has been developed with a clear focus on the youth of India, offering them exclusively crafted fashion garments like Denims, T-shirts etc. Sparsh range of Indian wear for women, offers the finest collection of salwar, kurtas, chudidars and a fast evolving Mix and Match range of garments. An exclusive label Panda has been developed for infants and toddlers, while the FRENDZ range of garments would complement the wardrobes of the growing generation of boys and girls. Apart from these private labels, the store is also offering some of the most renowned brands in the country like Levis Strauss Signature, Peter England, Indigo Nation, American Tourister, John Players etc. Some designer labels either directly or through their sub brands most of these exclusively for Reliance Trends.
Continuing the tradition of reaching out to the middle class of the country, the current offering from Reliance Trends is easily affordable to the Indian consumer. The specific private label called First Class, is designed to cater to the range of garments cutting across mens, womens and childrens wear to deliver extreme value to the Indian consumers. Reliance Trends today is Indias largest fashion destination with 83

stores across 52 cities with over 100 brands excluding 16 own brands. Product Profile

Womens Wear Casual wear, Dress material,

Indian wear, Formal wear, Semi Formal wear, Lingerie Mens wear

Formal wear, Semi Formal wear, Casual wear fabric under garments Kids wear

, Sportswear, Mens wear

Infants, Toddlers Girls 2-8 years, Girls 8-14 years Boys 2-8 years, Boys 8-14 years Accessories

Handbags, Socks, Handkerchiefs, Sports Goods Private labels by Reliance Trends

External Brand in Reliance Trends

1] Organizational study of Reliance Trendz? 2] Which type of Retailer Reliance is? 3] Which type of store Reliance is? Ans: Reliance Trendz is a departmental store which offers wide varieties of merchandise. 4] What planning they have done for it? 5] How did they plan? 6] Analyze the consumer buying behavior? 7] Challenges faced by Reliance Trendz in present & in future? Big Players planning to investment in India Future Groups: central malls to be extended Reliance Retail business strategy might not be as easy. Pantaloon to invest $1 billion: to compete with Reliance and Reliance is investing 5.5 Billion. The Aditya Birla Group: will be investing Rs. 90 billion to open 3,000 supermarkets and 200 Hypermarket in 100 cities over the next 7 years. International retailers: There has been greater influence of brands like Wal-Mart in the city of Hubli & the US giant will be entering Hubli market with a joint venture agreement with Bharti Enterprises, operating franchised stores of Wal-Mart. The store in Hubli will be offering a low price to shoppers as the US stores do.

Major Players in Hubli Retail Industry: Westside Big Bazaar Shoppers Stop Bharti Walmart [Upcoming]

SWOT ANALYSIS Strengths Reliance Retail is financially sound. Primary location of the stores ensures good footfall. Low prices of the merchandise attract customers. Customers visiting the stores are between the age group of 18-25 years of age and constitute a very good potential market. Majority of the customers are highly satisfied with the store and would like to revisit the store. The concept of selling the merchandise in coordination with the unique selling proposition of the brand adds to the convenience of the customers. Weakness Acute lack of awareness about the store. Most customers visit the store only when passing by. Visual merchandising has to be improved. Display needs to be changed. Lack of external brands is also a major constraint in the store.

Opportunities RTL have an advantage because its concept redefines value retailing. Value retail is associated with RT offers, fresh stock at such low price and thus stands apart. The store offers in-house labels and thus has freshness associated with it.

Brand name of reliance has a lot of prestige attached with it.

Threats Negligible awareness about the presence of store in other areas. Expansion strategy other VFM formats. There is a cut throat competition from stores like Westside, Big Bazaar, Shoppers Stop & Bharti Walmart respectively. Reliance Trends: Price Challenge Activity: Price Challenge, Mall Promotion City: Hubli Customers behavior always looks for some extra benefit with purchasing. They demand for affordable price for product and gifts with purchasing

International Company should make strategy to cater every income group customers in the city. Upper income group are affordable to purchase but lower income group is not. So International Company should make policies to send their product and every home

The Indian company should give more emphasis on advertising to create market awareness and to make a brand image in the minds of investors. They should keep a close eye on competitor strategy

So Indian and International Company should provide late stand reliable service to their customers.