Page 41 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes

Notes The infrastructure of the retail sector will evolve radically. The emergence of
shopping malls is going steady in the metros and there are further plans of expansion
which would lead to 150 new ones coming up by the year 2008. As the count of super
markets is going up much faster than rate of growth in retail sector, it is taking the lions
share in food trade. The non-food sector, segments comprising apparel, accessories, fashion,
and lifestyle felt the significant change with the emergence of new stores formats like
convenience stores, mini marts, mini supermarkets, large supermarkets, and hyper marts.
Even food retailing has became an important retail business in the national arena, with
large format retail stores, establishing stores all over India. With the entry of packaged
foods like MTR, ITC Ashirbad, fast foods chains like McDonald’s, KFC, beverage parlours
like Nescafe, Tata Tea, Cafe Coffee Day and Barista, the Indian food habits has been
altered. These stores have earned the reputation of being ‘super saver locations’.

With the arrival of the Transnational Companies (TNC), the Indian retail sector will confront
the following round of alterations. At present the Foreign Direct Investments (FDI) is not
encouraged in the Indian organised retail sector but once the TNC’S get in they would try to
muscle out their Indian counterparts. This would be challenging to the retail sector in India.
The future trends of the retail sector of Indian economy:

 The retail sector of Indian economy will grow up to 10% of total retailing by the year 2010.
 No one single format can be assumed as there is a huge difference in cultures regionally.
 The most encouraging format now would be the hyper marts.
 The hyper mart format would be further encouraged with the entry of the TNC’s.

Self Assessment

State whether the following statements are true or false:

18. The infrastructure of the retail sector will dissolve radically.
19. The emergence of shopping malls is going unstable in the metros.
20. The non-food sector, segments comprising apparel, accessories, fashion, and lifestyle felt
the significant change with the emergence of new stores formats like convenience stores,
mini marts, mini supermarkets, large supermarkets, and hyper marts.



Case Study FoodWorld

“ ousehold groceries, at walking distance, at economical prices”, is FoodWorld’s
USP. Where from do you get your vegetables and groceries? Pop this question
“
Hto any housewife and the most likely response is from the neighbourhood
vendor selling on a pushcart, or a nearby market, which houses groceries. But both these
options make no allowance for hygiene and comfort. This germ of a thought is what set
the process for the conception of FoodWorld in Chennai in 1996. From there on, FoodWorld,
Contd...

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