AMITY BUSINESS SCHOOL ABS works with a mission to create an ambience of academic excellence in which new ideas, research projects flourish and the leaders and innovators of tomorrow emerge. In any top university of the world, research is the foundation which leads to a strong academic orientation. ABS has one of the most distinctive team of faculty and Researchers who are constantly augmenting their research and publications and hence leading the institute to pinnacles of academic achievement. ABS provides holistic education and strives to create managers of vision, mission, and the action and above all of the commitment. It attracts committed students from all across the globe. The focus of ABS is on developing a global perspective amongst their student to create a new cadre of management professionals who are multi-skilled and have a capability to function as cross functional teams and with a deep understanding of ethical and value based business processes. Amitians of ABS are instilled with compassion, loyalty and commitment that makes them an invaluable asset of any organisation. Our Missionary Leaders Inspires us to higher ends My mission is nation building through education and beyond Dr. Ashok K. Chauhan Founder President, Ritnand Balved Education Foundation (The Foundation of Amity Institutions and the sponsoring Body o Amity Universities), AKC Group of Companies Our Role Models Who Motivate us to attain the unattainable “From the Editor-In-Chief’s Desk The Indian retailing sector has flourished to cope up with metamorphosis from the age of offline to online platform that is being rapidly adopted by the consumers. The penetration of smart phones and internet has opened doors of new opportunities for e-commerce giants like Amazon and Wal- Mart who have changed the Indian retail dynamics .It will be interesting to see how these global retailers will adopt Indian Retail practices and lure Indian consumers. India not only has replaced China as the most favourable market rather it became most favoured nation for retail investment by Global Retail development Index 2018. The power of fast-growing economy, increasing consumption rates, rising urbanizing population and burgeoning middle class consumers also attracted big box offline retailers and Indian’s tasted and tested Ikea, H&M, and Miniso. The change in retail scenario is vast and fast, in between online giants and offline conglomerates there is a presence of 15 million mom and pop stores and with governments ‘s e-commerce policy it is moving towards David vs Goliath The 4th Edition of Amity business School retail magazine RETALLIER: focused on CHAGING RETAIL DYNAMICS IN INDIA. Looking forward to your valuable suggestions. Happy Reading! Dr. Sanjeev Bansal Editor-In-Chief TABLE OF CONTENTS GOI Initiative Big Box Vs Online Retailers FDI in Indian Retail Sector 1 8 Prodigal Enterance of IKEA in Indian Furniture Market 17 A time for Indian The Rise of Miniso in Retailer to go Online Indian Retail 25 31 "Location" The nerves of Retail Sector 36 Tracking Products A Mahabachat - The Big helping tool for Day Sale Retailers 40 45 The One who Delivers fast will win the Race 51 Retail Locations in Block Chain A Retail India perspective 58 62 BIG BOX VS ONLINE RETAILERS By Debanil (B. TECH MBA-G 2019) A big box retailer is a retail store Walmart, a customer can find that occupies an enormous every consumer good from amount of physical space and groceries to clothing to offers a variety of products to its technology. Walmart has one of customers. These stores the broadest product mixes of the achieve economies of scale by big box retailers. These retailers offer great value focusing on large sales volumes. and selection for a low price, Because volume is high, the profit which is all most consumers are margin for each product can be looking for. The success of big- lowered, which results in very box retailers has segmented retail competitively priced goods. The as a whole. There are big box term "big-box" is derived from the stores and then niche or bespoke store's physical appearance. retailers often focused on a few Located in large-scale buildings of high-end product lines big box more than 50,000 square feet, the retailers don't bother with. store is usually plainly designed Anything in the middle is and often resembles a large box. squeezed whenever a big box Walmart, Home Depot and Ikea retailer comes to town. are examples of worldwide big- box retailers, whereas in India the The Bad Reputation of Big Box most influential one is Big Bazaar. Retailers Big box retailers are meant to be a one-stop shop for customers. In a 1 Big box retailers tend to have a businesses in the area start to fail negative reputation for two main because the customers go to the reasons - one earned and one that local big box retailer rather than is debatable. One, when it comes the local store. In reality, it is the to dealing with suppliers, big-box customers that are killing the retailers are seen as bullies. The other businesses because they volume of purchasing done to fill quite reasonably want to get the the shelves at a network of big- best value for their dollars. box retailers is enormous. This Interestingly enough, big-box type of scale tends to force any retailers themselves are small supplier into exclusively experiencing what they do to supplying to the big box retail small businesses as more and chain, which opens them up to more of people's shopping dollars risk in that 100% of their revenue are moving from physical stores comes from one company. When of any size and into online you have one customer, it is hard shopping. to push back on pricing squeezes when they know Online vs Big Box retailers: dropping you from their product Online shopping is the most lines hurts you far more than obvious competitor to the big-box them. stores. Today Amazon.com Inc. is When big box retailers move into one of the biggest retailers in an area, it is often met by concern World, having overtaken Wal- from local businesses that can't Mart Stores Inc. in the summer of compete with the vast logistics 2015. Amazon has changed the advantage and purchasing power way we shop for everything from for lower pricing. Other books to groceries and there's no 2 going back to the days when people would window shop for Walmart and other big-box stores hours at the mall on the are already moving towards weekends. With Amazon now having a strong e-commerce gobbling up more than 40 percent website which allows customers of all online spending in the U.S., to access goods 24 hours a day, 7 that’s left traditional retailers days a week (what retailer doesn’t scrambling for the rest. love always being open and not Walmart Inc., Target Corp., and having to increase staffing costs Best Buy Co. have all made big to do it?). Walmart intends to use investments in recent years in e- its physical infrastructure to commerce -- sprucing up improve its delivery methods and websites, offering more delivery strengthen its online shopping options and making acquisitions experience. This is done not out like Walmart's $16 billion deal for of altruism, but to regain India’s Flipkart. But growth rates customers from its rival Amazon. are naturally slowing as their Changes in strategy to combat online units mature, and all that online retailers: spending is taking a toll on profitability in a sector that Amazon has shown the retail world already operates on razor-thin that today’s consumers are margins. turning to the convenience of online shopping, but in some cases, consumers still prefer traditional brick-and-mortar stores as long as the shopping experience is easily accessible. 3 The change is especially being felt large big-box space. Furthermore, by big-box retailers, who have there’s a real concern over been shaken by ongoing whether there are enough brick- uncertainty along with a few and-mortar retailers with near- bankruptcies over the last year. term growth and expansion plans “More than 70 million square feet that will match the increasing of retail space is projected to close supply of vacant big-box space, in 2018, mostly due to the fact given the online retail pressures that large-format retailers of Amazon. continue to shut down stores. On seeing the growing popularity Toys R Us (with 40,000-65,000- of these online retailers the big square-foot stores) is in the box stores are adopting new process of closing all of its 800- techniques to reach to a larger plus stores across the US. Sears is market base and to convince closing 103 stores, Walmart’s them to do their shopping in the Sam’s Club division is closing 63 big box stores. These new stores, Bon-Ton is closing 42 strategies are designed to attract stores, Macy’s is closing 11 stores those customers who are and J.C. Penney is closing eight considering or are already stores – all with mostly 100,000- ordering using these online square-foot or more store retailing websites like Amazon. footprints.” -as reported by These tactics include social media CNBC. promotion, discount sales, special Retail landlords have been relying occasion offers on products and on discount retailers as popular so on. replacement options; however, it The strategies that these big box takes multiple tenants to fill a stores are using can be explained 4 by using the example of Big TV, Radio, Newspaper ads and so Bazaar, and to do so we need to on.