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Indian Retail Model

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India is a country dominated by local and traditional retailers and business models particular to Indian context are bound to emerge. This section discusses some of the retail business models that have arisen and which are peculiar to the Indian landscape. These are as:
Figure: 1.3
Classification of Retailer
(Source: ICFAI Text Book on Retail Management)
I. STORE BASED RETAILERS
These operate at fixed point of sale locations. Their stores are located and designed to attract a high volume of walk in customers. In general, store based retailers offer a wide variety of merchandise and use mass media advertising to attract customers. These can be further classified on the basis of various parameters like:
a. Ownership
b. Strategy mix
c. Service
…show more content…
The lessee is accountable for all activities of the leased department. iii. Adds variety to the merchandise offered by the store. iv. No cannibalizing of sales of existing product lines of the stores. iv. Reduced cost of establishment.
v. Increased customer traffic.
5) Vertical Marketing system i A distribution system in which the producers, wholesalers, & retailers act in a unified manner to facilitate the smooth flow of goods & services to the end user. ii One channel member owns the other or has contracts with them.
6) Consumer Cooperatives
i. Retail operations owned & managed by its customer members. ii. A group of customers invest in the retail operations in return of stock certificates, which entitle them to a share in the profits of the retail store.
b. STRATEGY,MIX BASED RETAILERS Depending on the strategic mix retailers adopt, they can be classified into two groups:
A. Food oriented Retailers,
1) Convenience stores,
i. Small stores located near residential areas. ii. Open long hours, seven days a week, & carry a variety of products with limited assortment of merchandise. iii. Operate in 3000-8000 sq. area.
2) Conventional supermarkets, i Similar to departmental
…show more content…
ii Maintains identity of both food store & drug store iii One stop shopping experience. iv Operate in 30,000,100,000 sq. area.
5) Box (Limited line) store, i Food based discount store that concentrates on a small selection of goods. ii Limited, shopping hours, service & stocks. iii Refrigerated perishable goods are not available. iv Prices are displayed on the shelf/overhead signs. Priced 20 to 30% below market price. v Self-service.
6) Warehouse stores, i Discount food retailers, offer low price deals. ii Average size of 100,000 sq. ft. iii Merchandise is displayed in cut boxes or shipping pallets & services are limited. iv Lack consistency of products available as they warehouse retailers buy goods only when a manufacturer or a wholesaler offers deep price or quantity discount.
B. General Merchandise retailers,
1) Variety store,
i. Offer deep assortment of inexpensive & popular goods like stationary, gift items, woman's accessories, house wares etc. ii. Also called as 5 and 10, cent stores.
2) Department store, i Large retail units offering wide variety and a deep assortment of goods & services. ii Separate depts. for separate types of

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