Attempt all the problems.
problem1) Using the retail conglomerate or large retail group of your choice, describe different retail format used by group and justify the reasons for the format variation.
problem2) What is trade area? What are main factors effecting trade area
problem3) What is the potential of non-store retailing.
problem4) describe wheel of retailing? In what stage of retailing, could we classify the Indian retail industry
Case Study :
With the annual growth rate of 35 per cent in home décor market, concept of home-beautification stores is fast emerging in India. Entry of new domestic and international branded retail products in baths, tiles and kitchens in the country is now frequent. Among them is Rosebys London, UK's leading home textile retail chain, acquired by Gujarat Heavy Chemicals in 2006. In the interview the Director Rosebys India
Concept Rosebys London is meant for subliminal women. They believe women wishes to be a perfectionist when it comes to her make-up, apparel and home. Rosebys London is a fashion lifestyle brand that comes with the aim to create the standard in home decor segment and meet demands across Indian environment.
Rosebys are thematic store. They design their own thoughts deliver through single branded outlet. All products in Rosebys London store is made under its own private label. Irony of India retail is discount. But they don’t want to play discount game. Rosebys London is about creating higher taste level.
In India, there is tremendous market opportunity as a number of Indian households are expected to grow from 13 million to 61 million by 2012. However with just 2,000 stores in the country in the organised home furnishing segment, market is largely unexplored. Rosebys London expects to take advantage of phase with a partnership model.
Rosebys London aims to create the ever lasting impression. It is not the big deal to open a showroom in Delhi or Mumbai, but they plan to go state-wise and de-factor standards. They want consumer to perceive that all Rosebys London stores across India are same and there has been no compromise made in creating environment of the store. They do not believe in come, see, look, buy and leave, as that is confuse messaging. They are here to create the warm and friendly environment for the homemakers.
For Rosebys London, product is the most significant element, as at the end of the day, if your product is not good you cannot put a price to it. Further, you cannot promote it as well.
The response for their stores has been extremely overwhelming. They are planning to open 700 stores over the next three years in metros and tier-II and tier-III cities. While metro launches will be completely different that would be catered according to city. They have all together various plan to open store in Delhi &Mumbai.
problem1) What is the potential of home furnishing market in India. Who are the main competitors in it?
problem2) Why have the Rosebys targeted on tier I and tier II cities?
problem3) Could a discount model work in Home furnishing segment. Discuss.