We have already d?scussed
ab?ut the segregat??n ?f  ?nd?an Reta?l ?ndustry
?nt? ?rgan?sed and un?rgan?sed markets and g??d pr?spects are there f?r the gr?wth
?f the  ?rgan?sed sect?r and thereby,
decl?ne ?n the un?rgan?sed sect?r- wh?ch ?s very g??d f?r ?ur ec?n?my.

?n th?s sect??n, we
w?ll d?scuss the d?fferent types ?f Reta?l F?rmats ?n ?nd?a. We can d?v?de the ?nd?an
Reta?l Market ?n three f?rms wh?ch are ment??ned bel?w-

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1. St?re Reta?lers

2. N?n- St?re Reta?lers

3. Serv?ce Reta?lers

St?re Reta?l F?rmats

a) M?m-and-P?p
St?re- These are fam?ly ?wned st?res wh?ch pr?v?de small quant?ty ?f
merchand?se ?r g??ds t? the cust?mers. They are ?nd?v?dually run and target the
smaller sect??ns ?f the s?c?ety. These st?res pr?v?de h?gh standard serv?ces.
They pr?v?de h?me del?very and cred?t fac?l?ty w?th?ut any ?nterest t? ?ts cust?mers.

b) C?nven?ence
St?re- C?nven?ence ?s ?ffered ?n a l?t ?f ways t? the cust?mers thr?ugh eas?ly
access?ble st?re l?cat??ns and small st?re s?ze that all?ws the cust?mers t? d?
qu?ck sh?pp?ng and fast check?ut. The pr?duct select??n ?ffered by these reta?lers
?s very l?m?ted and the pr?ce ?f the pr?ducts can be h?gh.

c) Super
Markets- Supermarket ?s an?ther p?pular reta?l f?rmat ?n ?nd?a. A
supermarket ?s a gr?cery st?re wh?ch deals ?n f??d and h?useh?ld g??ds. They ?ffer
a fa?rly huge range ?f pr?ducts and self serv?ce. Pe?ple usually g? t? the
supermarkets t? buy g??ds ?n large quant?t?es s? that they can st?ck th?se g??ds
f?r later c?nsumpt??n. They pr?v?de pr?ducts f?r reas?nable pr?ces and ?f med?um
t? h?gh qual?ty.

d) Department St?re-
Department st?res are class?f?ed as general merchand?sers. S?me carry a m?re
select?ve pr?duct l?ne. F?r ?nstance, wh?le Sears carr?es a w?de range ?f pr?ducts
fr?m hardware t? c?smet?cs, N?rdstr?m f?cuses the?r pr?ducts ?n cl?th?ng and
pers?nal care pr?ducts.

e) Categ?ry K?llers-
The spec?alty st?res are called Categ?ry K?llers. These st?res are spec?al?zed ?n
the?r f?elds and they ?ffer ?nly ?ne categ?ry ?f pr?ducts. The m?st p?pular
examples ?f categ?ry k?llers ?nclude wall-mart and electr?n?c st?res l?ke Best
Buy and sp?rts access?r?es st?res l?ke Sp?rts Auth?r?ty.

f) D?sc?unt St?res-
D?sc?unt st?res ?ffer pr?duct at l?wer pr?ce than market pr?ce. The ma?n reas?n
beh?nd th?s l?w pr?ce ?s the add?t??nal st?ck left ?ver t?wards the end ?f any
seas?n. D?sc?unt st?res sell the?r g??ds at a reduced rate w?th an a?m ?f draw?ng
barga?n sh?ppers.

g) Mass D?sc?unters-
These are general and spec?alty st?re that pr?v?de huge d?sc?unts ?n the?r
merchand?se t? f?n?sh bl?ck st?ck and ?ts small d?fference between d?sc?unt st?res
and mass d?sc?unters ?s that ?t pr?v?de lesser serv?ces t? cust?mers.

h) Wareh?use St?res- These are the type ?f
mass d?sc?unters that pr?v?de c?mparat?vely less pr?ce than the trad?t??nal
mass d?sc?unters. M?re?ver, these st?res ?ften requ?res the buyers t? make the
purchases ?n quant?t?es that are greater than what can be purchased at mass d?sc?unt
st?res. These reta?l ?utlets pr?v?de few serv?ces and pr?duct select??n can be

The reta?l des?gn and lay?ut ?s as the name
suggests that ?s wareh?use style w?th c?nsumers ?ften select?ng pr?ducts ?ff
the gr?und fr?m the sh?pp?ng package. S?me f?rms ?f wareh?use st?res called
wareh?use clubs requ?re cust?mers t? purchase membersh?ps ?n ?rder t? ga?n
access t? the ?utlet.

?) Street Vend?rs- The Street Vend?rs ?r
hawkers wh? sell pr?ducts ?n the streets are qu?te p?pular ?n ?nd?a. They try t?
attract the cust?mers’ attent??n thr?ugh sh?ut?ng ?ut ab?ut the?r pr?duct m?x.
Street vend?rs are f?und ?n alm?st every c?ty ?n ?nd?a and the bus?ness cap?tal
?f Mumba? has a number ?f sh?pp?ng areas wh?ch are c?mpr?sed ma?nly ?f street
vend?rs. These hawkers n?t ?nly sell just cl?thes and access?r?es but als? l?cal

j) K??sks- K??sks are b?x-l?ke sh?ps wh?ch
sell small and cheap ?tems l?ke c?garettes, t?ffees, newspapers and magaz?nes,
water packets, tea and c?ffee. These are m?st c?mm?nly f?und ?n every street ?n
a c?ty and target pr?mar?ly t? the l?cal res?dents.

k) Hypermarkets- Hypermarkets ?n ?nd?a
are a c?mb?nat??n ?f supermarket and department st?re. These are large reta?lers
that pr?v?de all k?nds ?f gr?cer?es and general g??ds. B?g Bazaar and Rel?ance
Fresh are hypermarkets that attract en?rm?us cr?wds.

l) Malls- These are the largest reta?l f?rmat
?n ?nd?a. Malls pr?v?de everyth?ng that a pers?n wants t? buy under ?ne r??f.
Fr?m cl?thes and access?r?es t? f??d ?r c?nemas, malls pr?v?de all ?f th?s, and
m?re. Examples ?nclude Spencers Plaza ?n Chenna?, ?nd?a, Alpha ?ne ?n Amr?tsar
and V?va c?llage ?n Jalandhar .

N?n- St?re Reta?l F?rmats

a) Catal?g Reta?lers- Reta?lers such as
Lands’ End and LL Bean have bu?lt the?r bus?ness by hav?ng cust?mers place ?rders
after see?ng pr?ducts that appear ?n a ma?led catal?g. ?rders are then del?vered
by a th?rd-party sh?pper.

b) E- Reta?lers- P?ss?bly the m?st publ?c?zed
reta?l m?del t? ev?lve ?n the last 50 years ?s the Reta?ler that pr?nc?pally
sells v?a the ?nternet. There are th?usands ?f ?nl?ne-?nly reta?l sellers ?f wh?ch
Amaz?n.c?m ?s the m?st fam?us. These reta?lers ?ffer sh?pp?ng c?nven?ence ?nclud?ng
be?ng ?pen f?r bus?ness all day, every day. Electr?n?c reta?lers ?r e-ta?lers
als? have the ab?l?ty t? ?ffer a w?de select??n ?f pr?duct s?nce all they
really need ?n ?rder t? attract ?rders ?s a p?cture and descr?pt??n ?f the pr?duct.
That ?s, they may n?t need t? have the pr?duct ?n-hand the way phys?cal st?res
d?. ?nstead an e-ta?ler can wa?t unt?l an ?rder ?s rece?ved fr?m the?r cust?mers
bef?re plac?ng the?r ?wn ?rder w?th the?r suppl?ers. Th?s cuts d?wn s?gn?f?cantly
?n the c?st ?f ma?nta?n?ng pr?ducts ?n-st?ck.

c) Vend?ng- Vend?ng mach?nes ?s a aut?mat?c
mach?ne fr?m where we can purchase ?tems l?ke c?ldr?nks, ch?c?lates by thr?ugh?ng
c??ns ?n ?t.Wh?le m?st c?nsumers are well aware ?f vend?ng mach?nes all?w?ng
cust?mers but newer dev?ces are enter?ng the market c?nta?n?ng m?re expens?ve
and bulk?er pr?ducts. These systems requ?re the vend?ng mach?ne have e?ther ?nternet
?r telec?mmun?cat??ns access t? perm?t purchase us?ng cred?t cards.

Serv?ce Reta?lers- They are th?se wh? pr?v?de
d?fferent serv?ces t? cust?mers.

a) ?nd?v?dually ?wned and ?perated- Th?s
structure refers t? s?ngle ?wnersh?p st?res hav?ng ?ne ?r m?re st?res under ?t.
S?ngle ?wnersh?p ?f reta?l ?utlets m?st frequently ?ccurs w?th small reta?l st?res,
th?ugh there are s?me cases, f?r ?nstance ?n the aut?m?t?ve ?r furn?ture ?ndustr?es,
where s?ngle ?wnersh?p ?nv?lves very large ?utlets.


There are n? restr?ct??ns ?n wh?,where and what
type ?f bus?ness a pers?n want t? ?pen. A pers?n can start any legal bus?ness w?th?ut
any pr?blem.


Because ?f the ease and flex?b?l?ty ?f gett?ng
started, there can be a l?t ?f c?mpet?t??n ?n a part?cular area f?r a certa?n
type ?f cust?mer. There ?s n? brand?ng, n? preset gu?del?nes and a great deal ?f
r?sk ?n th?s bus?ness m?del.

b) Franch?ses- Purchas?ng a franch?se ?s
buy?ng the r?ght t? use a name, pr?duct, c?ncept and bus?ness plan. The franch?see
w?ll rece?ve a pr?ven bus?ness m?del fr?m an establ?shed bus?ness.


All ?f the bus?ness ?perat??n pr?cesses have
been establ?shed. The franch?see rece?ves help fr?m a netw?rk and cust?mers are
already fam?l?ar w?th name .Same market?ng strateg?es are ?pted wh?ch are used
by ?ther franch?ses .M?st all ?f the r?sk ass?c?ated w?th start?ng a reta?l bus?ness
has been reduced.


Franch?sees pay a fee, ?r r?yalty, based ?n
sales each year. Franch?see have huge am?unt t? spend t? get a franch?see and
there ?s n? flex?b?l?ty and freed?m all?wed ?n th?s f?rm.

c) Dealersh?p- Reta?lers may f?nd the
bus?ness m?del ?f a l?censed dealersh?p as a m?x ?f franch?se and ?ndependent
reta?ler. The l?censee has the r?ght (s?met?mes th?s ?s exclus?ve) t? sell a
brand ?f pr?ducts. Unl?ke a franch?se, the dealer can sell a var?ety ?f brands
and there generally n? fees t? the l?cens?r. Dealersh?ps may ?r may n?t be ?dent?f?ed
as an auth?r?zed seller ?r by the c?mpany’s trademark.


There may be s?me brand?ng ?r pr?duct name rec?gn?t??n
by the cust?mer. The dealersh?p relat??n ?s much m?re flex?ble than that ?f a
franch?se. Th?s may be a g??d bus?ness m?del f?r part-t?me reta?lers ?r th?se
just start?ng ?n reta?l.


Dealer have t? spend huge am?unt t? get a

d) C?rp?rate Cha?n- A reta?l cha?n c?ns?sts
?f mult?ple reta?l ?utlets ?wned and ?perated by a s?ngle ent?ty all perf?rm?ng
s?m?lar reta?l act?v?t?es. Wh?le the number ?f reta?l ?utlets requ?red t? be
class?f?ed as a cha?n has never been spec?f?ed, we w?ll assume that any?ne ?wn?ng
m?re than f?ve reta?l l?cat??ns w?uld be c?ns?dered a cha?n.