India Retail Supply Chain Study - 2013

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 Introduction
Organized retail has played a major role in driving the economy of
developed nations and provides a lot of growth opportunities to developing
nations. Several alterations are happening to the face of retail by way of
government regulations, adoption of new technologies and evolving
consumer needs. The allowance of Foreign Direct Investment in retail (FDI)
has opened the doors to some of the world’s leading brands and companies.
The growth of e-commerce has created both new competition and a new
selling channel for retailers. This is bound to result in a shake -up of the
landscape with the influx of new working processes, revamped distribution
channels and new technologies that will redefine the way the organized
retail will work in future. Some retail malls i n cities like Ahmadabad and
Pune are over retailed with average vacancy levels around 30 percent.
Retailers have become cautious, while expanding with a strong focus on
store profitability and thus closing down stores which are unviable or
undertaking resizing exercises to make them viable in the near future. The
sentiment therefore among the Indian retailers is to gear up to the tough
competition.

This study, in which 50 major retailers participated, explores key

issues in retail supply chain management. T he retail industry in India is on a
transformational rollercoaster and therefore retailers are more reliant than
ever on supply chain management for organizational success. There is a
strong focus on operational efficiencies, process improvements and overa ll
profitability of top line and bottom line measures. Supply chain executives
along with the technology executives are being called upon to create

India Retail Supply Chain Study - 2013

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 innovative strategies that will increase efficiency and drive down costs while
maintaining excellent service levels.

Margins for the retailers are very thin and it takes a few years for a
store to break even after it starts operating. Retailers need to have patience,
deep pockets, continuous innovation and localization of product and service
for the consumers to become successful. The purpose of this study is
therefore to explore the critical role Supply chain management plays in the
success of the retail industry.

The study addresses four key research questions:

What is the role of supply chain management pra ctices in retail firms
in India

What Supply chain challenges are of greatest concern to the retail

industry

What role does technology play in managing the supply chain of retail
firms

What capabilities must retailers develop and leverage to achieve

supply chain excellence

This report is thus a detailed piece of documentation that captures all

facets of supply chain from a retailer’s perspective. It is a handy guide on
supply chains in retail in India with an inside view from people and
organizations who matter in this space.

We sincerely hope that these insights equip you with a unique

understanding about the retail supply chain domain in the country and
enable you to make informed decisions about your supply chains right from
supplier to all the way to the store shelf.

India Retail Supply Chain Study - 2013

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 Contents

A) Primary strategic goal for retailers for 2013-14

B) Primary Supply Chain Goal for Retailers for 2013-14

C) Supply Chain Technology in Retail

D) Parameters of Supply Chain Performance

E) Representative List of Participants

F) Research Methodology

G) Profile of Retailers who participated in the survey

India Retail Supply Chain Study - 2013

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 A) Primary Strategic Goal for Retailers for 2013-14

24% of the retailers that participated in our survey chose expansion

through opening new stores as the primary strategic goal for retailers. Some
of the retailers have burnt their fingers by opening stores in areas, which are
already crowded with malls and retail outlets. Over a period of time,
retailers are now much more cautious, while deciding the location of their
stores. They prefer newer areas, which are not over retailed as yet and also
looking at Tier II and III cities for expansion. But definitely expansion
through opening new stores is one of the top agenda for the retailers in
India.

30%
Primary Strategic Goals For Retailers
25%

24%
20%

19%
15%
16% 15%
10% 12%
9%
5%
5%
0%
Open new stores New product lines Business Model Creating a private label Consolidation through Business streamlining Acqisition of new
Transformation or sub brand closing unviable outlets via vertical integration business/Competitors

Source: RAI - SCMHRD India Retail Supply Chain Study 2013

19% of the retailers mentioned that adding new product lines is their
next top of the mind agenda. Retailers would like to satisfy all the
requirements of the consumer at one place so that consumers do not venture

India Retail Supply Chain Study - 2013

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 into competitors stores. Today’s elite, educated and busy consumers are
looking at convenience and therefore they would prefer a store, which is
able to satisfy all the requirements at one location.

Business model transformation and creating a private label or sub

brand is the next top of the mind agenda for retailers in India. Retailing is a
very thin margin business. However, retailers, who have high private label as
a percentage of the total sales, are able to enjoy higher margins. 15% of the
retailers said that they would like to come out with their own private labels
to enhance profitability in the near future.

12% of the retailers said that they would like to consolidate through
closing unviable outlets. 9% of the retailers would like to undertake
business streamlining via vertical integration and 5% of the retailers
mentioned that they would like to acquire new business / competitors.

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 B) Primary Supply Chain Goal for Retailers 2013 –
2014
The Indian retailers face a lot of problems with reference to supply
chain management and support infrastructure. We have underdeveloped
supply chains, lack of strong cold chains, poor warehousing facilities and bad
roads, which contribute to increased logistics costs for the retailers. We also
do not have a mature third party logistics industry, which makes logistics
and transportation extremely difficult.

Though retailers would like to outsource their logistics to 3PL, we do

not have players providing high service levels at competitive prices. We have
large number of intermediaries squeezing the margins of all involved, which
adversely affects the margins as well as enhances the cases of mishandling,
theft and increased instances of shrinkages. Ec onomies of scale for the
procurement of goods is a challenge faced by retailers as most of the
retailers are not huge enough to really get the advantage of deep discounts
due to bulk purchases.

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 Retail Supply Chains Strategic Plans for 2013 - 14
400
350
350
300
305 293
250
253
200 221 220 211
150 180
100 127
50
0
Store Inentory Co-Ordinated Store Cost Saving Supplier SC Cost Investment in Private Label
Experience Assortment & Product Flows Customer Collaboration Knowledge and Information Offerings
&Product Investment Service Control Technology
Availability
Source: RAI - SCMHRD India Retail Supply Chain Study

Looking at the supply chain goals of the retailers, who participated in

the survey for the year 2013-14, we see that most of supply chain managers
have ranked store experience and product availability as their foremost
agenda for the year ahead. This is followed closely by Inventory assortment
and investment. Co-ordinate product flow right from the supplier to the
store is the next agenda. Store customer service is next priority to the supply
chain managers. Cost saving, supplier collaboration, supply chain cost
knowledge and control, investment in informati on technology and private
label offering are relative less priority for retail supply chain managers.

This clearly indicates that the complete focus of retail supply chain
managers has shifted from cost consciousness to attracting customers and
improving the footfall at stores. Store experience and product availability
has become a prime focus as a retailer would try its best to provide a unique
and fulfilling experience at the store so that long term brand loyalty could be
developed and nurtured. If products are not available obviously consumers
will visit competitors store and may get impressed by their store acting as a
big threat to them.

To achieve good store experience and product availability retail

supply chain managers, have to focus on appropriat e inventory assortment
and investment and ensuring that the product flows from the supplier to the
store seamlessly.

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 C) Supply Chain Technology in Retail
With the evolution of retail sector, technology adaption is increasing
continuously. Modern retailers are relying on technology to manage the
rapidly changing business scenarios and diverse customer needs. The sector
is now focusing on technology optimization and effectiveness. Large players
are investing in the technologies like Enterprise reso urce planning, Supply
chain management, Customer relationship management Business intelligence
and analytics, E-commerce, etc. This is helping retailers to become agile and
responsive apart from being able to reduce inventory holding costs and thus
be profitable in the long run. The smaller retailers are investing in
technologies like bar coding and point of sale technologies. As most of the
retailers are doing barcode scanning of complete merchandise in and out of
the stores, merchandise availability level s at departmental stores and
smaller stores are at comfortable levels.

The study tried to identify the extent of technological adoption of

some of the critical supply chain technologies in terms of technological
adoption in less than 50% of the stores, all the stores, technology not in use
and plans to implement the technology in the coming three years.

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 C1) Supply Chain Management Software

Around 52% of retailers use supply chain management software for

more than 50% of their stores and around 19% of retailers use supply chain
management software for less than 50% of their stores. The adoption of this
technology has seen reasonably good penetration as almost 71% of retailers
said that they use supply chain management technology either in less than
50% of the firms or more than 50% of the firms. 17% of the retailers
mentioned that they do not use any form of supply chain management
software and 12% said that they are planning to adopt this technology in the
coming three years.

Supply Chain Management Software

Implemented in Less than 50% of the Stores

13% 19%
Implemented in More than 50% of the Stores
17%
Not in Use

52% Planning to Implement in next 3 Years.

Source: RAI - SCMHRD India Retail Supply Chain Study 2013

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 C2) Customer Relationship Management Software
Customers today care more about the retailing experience than they
did in the past. Their expectations from retailers go beyond just shopping of
goods and services. Today, consumers are looking for a personalized,
seamless and distinctive experience from the retailers. Retailers with
multiple brands are looking at integrated cross brand customer and sales
data to obtain a ‘single view’ of their customer and leveraging it across the
brand portfolio. Compared to e-commerce, where the analytics is much
stronger, brick and mortar retailers are lagging behind.

This space is bound to get more evolved given that retailers are
looking towards targeted marketing for increasing store revenues and
improving their return on investment on store promotions. Around 58% of
retailers use integrated Customer relationship software for their marketing
programs to engage with customers one -on-one, for more than 50% of their
stores and around 11% of retailers use it for less than 50% of their store s.
23% of retailers do not have a promotion plan that is integrated with their
CRM software. The adoption of this technology is quite reasonable especially
in all multi-brand retailers and e-commerce companies. However, this is an
area of evolution and retailers admit that much is yet to be done.

Customer Relationship Management Software

Implemented in Less than 50% of the Stores

8% 11%
Implemented in More than 50% of the Stores
23%

Not in Use
58%
Planning to Implement in next 3 Years.

Source: RAI - SCMHRD India Retail Supply Chain Study 2013

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 C3) E-Commerce
E-commerce is slowly becoming popular with the number of internet
users expanding. It is offering personalized experiences to the on-line
shoppers with rapid price and product comparisons and on the spot
recommendations. Around 54% of the retailers claimed that they have on -
line presence and around 27% claimed that they are planning to implement
e-commerce in the coming 3 years. 19% claimed that they are currently not
using E-commerce and do not plan to implement the technology in the
coming future. Couple of e-commerce companies like ‘AaramShop’,
‘Kiranawalla’, ‘Dilligrocery’, ‘Greenytails’, ‘Chennaionlinegrocery’, ‘Pristine -
nature’, ‘Myntra’, ‘Junglee’, ‘Indiaplaza’, etc are giving tough competi tion to
the brick and mortar stores and forcing them to use this channel as well to
sell their products. Eventually retailers who do not prepare themselves for
venturing in this space would remain behind and lose the opportunity to
capture additional customers. The multi – brand retailers are recruiting
people with the designation ‘Head- E-commerce’, which depicts that this
channel is slowly gaining its due importance and over a period of time most
of the retailers will have an on -line presence.

E-Commerce

Implemented
27%

54% Not in Use

19%
Planning to Implement in next 3 Years.

Source: RAI - SCMHRD India Retail Supply Chain

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 C4) Customer Loyalty Cards
The survey indicates that the retailers are at a high level of maturity in
terms of customer service processes like customer loyalty cards, which can
capture the complete sales history of the customer and thereby enable the
retailer to provide customized offerings to suite the customer. 60% of the
surveyed retailers mentioned that they have implemented customer loyalty
cards in more than 50% of the stores and 17 % of the retailers have
implemented the scheme in less than 50% of the sto res. They are
experimenting with the response of loyalty cards and would eventually
launch it across the country. One of the key performance indicators that
measure the effectiveness of the loyalty program is the ‘Loyalty customer
sales vs. Total sales’. This tells the retailer how much of total sales from a
channel customers are from its loyalty. It is equally important to judge
whether the customers are redeeming the points earned, which depicts their
genuine interest in the loyalty program. Most of the multi-brand retailers
have implemented a loyalty program; the single brand retailers are trying to
catch the bandwagon.

Customer Loyalty Cards

14% 17% Implemented in Less than 50% of the Stores

10%
Implemented in More than 50% of the Stores

Not in Use
60%
Planning to Implement in next 3 Years.

Source: RAI - SCMHRD India Retail Supply Chain Study 2013

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 C5) Data Mining and Analytics
Customer loyalty cards help capturing customer data in terms of
customer demographics, purchase history, which thereby provide customer
insights. Retailers use business intelligence systems to analyze the customer
data, helping them to improve merchandise and assortments, defining and
executing targeted promotional campaigns, etc. This is turn leads to better
shopping experience and incremental sales. 52% of the retailers surveyed
conveyed that they have implemented Data mining and analytics in more
than 50% of their stores. 17% have conveyed that they have implemented
data mining and analytics is less than 50% of the stores. 19% have
communicated that they plan to implement data mining and analytics in the
coming three years. Analytics can significantly improve the return on
investment for promotions and help build brand loyalty, which in turn
results in higher share of customer’s wallet.

Data Mining and Analytics

Implemented in Less than 50% of the Stores

19% 17%
Implemented in More than 50% of the Stores
13%
Not in Use
52%
Planning to Implement in next 3 Years.

Source: RAI - SCMHRD India Retail Supply Chain Study 2013

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 D) Supply Chain Management parameters

Availability of right merchandise at the right place, in the right

condition, within the right timeframe and at a minimum cost is the primary
objective of retail supply chain management. Goods in store but not on
shelves could mean loss of sales and an undesirable customer experience. It
is also important to vary the assortment and merchandise from one store to
another to take care of the regional requirements of the loca tion. We have
tried to capture the various supply chain management parameters and how
the retailers are performing on each of the construct.

D1) Parameter: Customer Relationship Management

Our firm frequently evaluates the formal and informal
complaints of our customers
Retailers are taking initiatives to ascertain what the customer feels as
the customer may not always inform the store about the dissatisfaction but
at the same time slowly withdraw, which in turn is loss of sale for the
retailer as well as reduction of brand loyalty for the store. The impact could
be a ripple effect as a disgruntled customer will share the experience with
friends, relatives and through social media. Retailers are therefore trying to
capture data about what the customer feels through regular customer
satisfaction index (CSI), which is often conducted through external agencies
to bring in more objectivity and seriousness to the whole activity. Some of

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 the retailers link the results of the Customer satisfaction index with the key
performance area and performance of the store manager / category manager.
Our study reveals that 63% of the retailers agree and 27% strongly agree
that their firm frequently evaluates the formal and informal complaints of
the customer. Only 10% of the retailers surveye d mentioned that they do not
have any process in place to capture customer complaint data.

Our firm frequently evaluates the formal and informal complaints of

70% our customers
60% 63%
50%
40%
30%
27%
20%
10% 2%
2%
6%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

Our firm frequently measure and evaluate customer

satisfaction and use it to identify/determine customer’s
requirement
56% of the surveyed retailers mentioned that they agree and 29% of
the retailers mentioned that they strongly agree that they frequently
measure and evaluate customer satisfaction and use it to identify /
determine customer’s requirement. This depicts customer orientation of the
retailers, which is a step in the right direction.

Our firm frequently measure and evaluate customer satisfaction and

60% use it to identify/determine customers requirement
50% 56%

40%
30%
29%
20%
10% 2% 6%
8%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

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 Customer focus is reflected in our business planning
From the surveyed retailers, we can see that 42% retailers mentioned
that they strongly agree that customer focus is refle cted in their business
planning. Another 44% said that they agree that customer focus is reflected
in their business planning. The conviction of customer focus in business
planning has to further scale up with majority retailers focusing on
customers’ requirements right from the planning stage.

Customer focus is reflected in our business planning

50%
40% 44% 42%
30%
20%
10% 4% 0% 10%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

D2) Parameter: Supplier Relationship Management

Our firm strives to establish long-term relationships with our
suppliers.
About 50% of the surveyed retailers mentioned that they strongly
agree that their firm strives to establish long term relationship with their
suppliers. 38% of the retailers mentioned that they agree that their firm
strives to establish long term relations hip with their suppliers.

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 Our firm strives to establish long-term with our suppliers
60%
50%
50%
40%
30% 38%

20%
10%
2% 2% 8%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

D3) Parameter: Human Resource Skill level and

competency

Our firm is able to acquire people with the right skill set

Availability of trained manpower both at the store and managerial

level has been a major concern for the Indian retail sector. The attrition
rates are very high in India. The remuneration paid to the front line store
employees is rather low for some of the multi -brand retailers. This inhibits
the retail firm to acquire the best talent from the market. Most of th e retail
firms are not geared up to provide long term career development
opportunities to the employees. Medical insurance, higher education
sponsorship and continuous training are some of the ways employees will be
able to visualize a long term relationship with the firm and thereby plan to
stay for a longer duration thus bringing attrition levels under control. The
employees of retail firms need to work long hours and cannot take off on
weekends which puts additional pressure on the employee and affects t he
personal life. The retailer therefore needs to create a social atmosphere at
work, which facilitates learning and enjoyment to enable them to stay with
the organization on a long run. The survey indicates that 23% retailers
mentioned that they strongly agree that they are able to acquire people with
the right skills, 42% mentioned that they agree that they are able to acquire
people with the right skill. A large sample size of 34% retailers mentioned
that they disagree or are indecisive about whether the y are able to acquire
the right talent.

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 Our firm is able to acquire people with the right skill set
50%
40% 42%
30%
27%
20% 23%

10%
2%
6%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

Our supply chain managers are trained to manage the different

stages of the supply chain process
Our study reveals that 15% retailers strongly agree and 54% retailers
agree that their supply chain managers are trained to manage the different
stages of the supply chain process. 31% of the retailers either disagree or
are indecisive about whether their supply chain team members are trained
to manage the different stages of supply chain. This indicates that there is a
requirement to train and empower the employees so that they are able to
manage their functions more effectively. It is important to ensure that
continuous training and development activities are carried out to enhance
the competencies and skill levels of employees.

Our supply chain managers are trained to manage the different

60% stages of the supply chain process
50% 54%
40%
30%
20% 23%
10% 4% 4%
15%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

Our supply chain managers do not face skill shortage

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 Only 40% of the retailers agree or strongly agree that they do not face
skill shortage. Rest of them are either indecisive or disagree, which clearly
means that there is skill shortage. Probably retailing is still not one of the
most lucrative professions for aspiring incumbents. Excessive working
hours, no holidays on weekends, high pressure job could be some reasons
why the industry faces skill shortage.

Our supply chain managers do not face skill shortage

40%
35%
30%
29%
20%
21%

10%
10%
4%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

D4) Parameter: Supply chain performance

Our forecasting and material planning accuracy is high
Only 6% of the surveyed retailers mentioned that they strongly agree
that their forecasting and material planning accuracy is high. Another 48%
mentioned that they agree that their forecasting and planning accuracy is
high. Rest 46% of retailers mentioned that they either are indecisive or
disagree that their planning and fo recasting accuracy is high. This depicts
that the maturity level with regards to forecasting and material planning is
still not high and retailers need to work hard to achieve the same.

Retailers would need to put in extra efforts to make their supply cha in
responsive by communicating the requirements from the stores in terms of
good picks and bad picks at a fast pace to the planners, so that they can on a
real time basis access the requirement of the product and accordingly plan
the supply. Most of the retailers are able to get an access to the store sales
data on a day to day basis, but the problem is in terms of converting these
figures into tangible actions for decision making. Over a period of time,
supply chain managers would be able to manage this po rtfolio better
especially with the advent of better technological support and algorithms,
which enable decision making.

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 60% Our forecasting and material planning accuracy is high
50%
48%
40%
30%
31%
20%
10% 13%
2%
0% 6%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

Our key suppliers ensure delivery reliability and consistency

The confidence with supplier delivery and reliability seems to be lo w.
Only 6% of the respondents mentioned that they strongly agree that their
suppliers delivery reliability and consistency is high, 58% mentioned that
they agree that the delivery reliability and consistency is high and the
remaining 36% mentioned that either they are indecisive or they disagree
that the key suppliers ensure delivery reliability and consistency. There is
definitely scope for improvement and retailers would need to cajole the
suppliers to adhere to timelines, thus avoiding overstocking at t he stores to
take care of the inefficiency of the supplier. If supply chain managers do not
have faith in the timelines given to the suppliers, they would end up building
up stocks, which in turn adds up to the cost of inventory and many times the
tastes and preferences may change, making the inventory obsolete.
Therefore supply chain managers need to work with their suppliers to
ensure that delivery reliability and consistency is high.

Our key supplier ensure delivery reliability and consistency

70%
60%
50% 58%

40%
30%
20%
19%
10% 13%
4% 6%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

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 Our firm has precise supply chain cost knowledge and control
19% respondents conveyed that they strongly agree that they have
precise supply chain cost knowledge and control. 46% mentioned that they
agree that they have precise supply chain cost knowledge and control. This
depicts that implementation of enterprise r esource planning software has
enabled retailers to capture exact cost data. Cost consciousness due to
margin pressures has also forced retailers to understand and know about
each penny spent. There is a lot of pressure on supply chain managers to
reduce supply chain costs to enhance profitability, without compromising on
customer service and experience and therefore supply chain managers are
aware about their supply chain cost and are also able to control them to a
great extent. Those who are unable to do s o are struggling and would need to
join the bandwagon soon.

Our firm has precise supply chain cost knowledge and control
50%
40% 46%

30%
20% 25%
19%
10%
4% 6%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

Our firm has fast customer response

19% of the surveyed retailers mentioned that they strongly agree that
they facilitate fast customer response. 48% mentioned that they agree that
they facilitate fast customer response and the remaining 33% mentioned
that they are either indecisive or disagree that they are able to respond to
customer requirements. This is one area, where retailers would need to put
in extra effort to ensure that they respo nd to customer requirements at a
fast face or else lose business. Customers are more than willing to try out
new stores and therefore retailers would need to go that extra mile to lure
and build brand loyalty.

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 Our firm has fast customer response
60%
50%
48%
40%
30%
20%
21% 19%
10%
4% 8%
0%
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

Our firm has rigorous inventory management and

rationalization
Processes around inventory management and rationalization at the
store are a key focus area for all the retailers. Some of the retailers are
outsourcing their stock takes to specialized firms and reaping benefits as the
whole activity becomes more objective and therefore more reliable. Retailers
are also looking at decreasing shrinkage levels by focusing on process, policy
and technology initiatives. 15% of the retailers mentioned that they strongly
agree that their firm has rigorous inventory management and rationalization
and 63% mentioned that they agree that they have rigorous inventory
management and rationalization. 23% mentioned that either they are
indecisive or disagree that they have rigorous inventory management and
rationalization.

80% Our firm has rigorous inventory management and rationalization

60% 63%

40%

20%
17% 15%
2% 4%
0%
Strongly Disagree Disagree Nither Agree Nor Disagree Agree Strongly Agree
Source: RAI - SCMHRD India Retail Supply Chain Study 2013

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E) Representative List
of Participation

Aditya Birla Retail Ltd.

Bestseller Madura Fashion and Lifestyle

BMI Max Hypermarkets India Pvt. Ltd.

Baggit Mahindra Retail

Carrefour India Monginis Foods Pvt. Ltd

Catwalk Worldwide Pvt. Ltd. Movie Exhibition

Celio Prakash retail Pvt. Ltd.

Deepam Silk Retail Pvt. Ltd. Press2 Dry Cleaning & Laundry Pvt. Ltd.

Reliance Digital Provogue Ltd.

Future Group Reliance Retail Ltd.

Future Value Retail Shoppers Stop Ltd.

Gili India Ltd. Smart Retail Pvt. Ltd.

Globus Stores Pvt. Ltd. Soul flower

Guardian Life care Spencer’s Retail Ltd.

@home TCNS Clothing Co. Pvt. Ltd.

Home store India Ltd. The Mobile Store

Hyper city Retail India Trent Hypermarket Ltd.

Ishanya Unilet Appliances Pvt. Ltd.

ITC Ltd. Vividha Home Fashions Pvt. Ltd.

Khadim India Ltd.

Lifestyle International

Lotto

Mad Over Donuts

F) Research Methodology
A questionnaire based e-survey was mailed to all the retail supply
chain managers, operations & logistics managers and warehouse managers.
Follow up calls were made to pursue respondents to fill up the e -survey.
Telephonic calls were also scheduled to get a deeper insight into the retail
supply chain issues through unstructured interviews.

This “RAI- SCMHRD India Retail Supply Chain Study 2013 ” saw an
enthusiastic response to the study from some of the India’s leading retail
professionals and companies. 50 retailers participated in the study ranging
from industry heavyweights, e -commerce companies to ambitious start-ups.
The research team analyzed feedback received from CEO, Head Supply
Chains, Head IT and Supply Chains, Vice Presidents, Logistics Managers,
General Managers and Managers. This data was aggregated and studied
closely to give us a bird’s eye view of where the retail supply chain stands
today and the future outlook.
 F1) Type of Retailers

For this study, we wanted to get

a varied mix of respondent.
So in collaboration with Retailers
Association of India (RAI), we
approached a large number of retailers
operating in different segments.
Therefore, a healthy mix was achieved
with 73% of our respondents being multi
brand retailers and the remaining 27%
representing single brand operations.

27% Single Brand Retailer

Multi Brand Retailer

73%

Source: RAI - SCMHRD India Retail Supply Chain Study

F2) Respondents profile in terms of years of

experience in the retail sector
When we look at the respondents experience in the retail supply
chain and logistics arena, we see that 17% of the respondents are industry
veterans with over 16 years of experienc e, 27% of the respondents are
industry veterans with experience ranging between 11 to 15 years, 39% of
the respondents are industry veterans with 6 to 10 years of experience and
only 17% of the respondents have experience less than 5 years. While
collecting responses we tried to ensure that we are able to get a response
from majority of the single brand and multi brand retailers, so that the
study depicts, what majority of the retailers think, instead of getting biased
opinions based on a few select retaile rs. We were able to capture data from
50 unique retailers and therefore it is quite evident that the opinions and

India Retail Supply Chain Study - 2013

27
 insights reflected in the survey represent a vast cross section of supply
chain managers in the country. We tried to ensure that all the Head – Supply
chains of retail firms were able to participant in the survey.

Respondents Experience in Retail Sector

17% 17% Less than 5 years

6 to 10 years
27% 11 to 15 years
39% More than 16 years

Source: RAI - SCMHRD India Retail Supply Chain Study

F3) Strength and Workforce

35% of the retailers surveyed, shared that

they have between 500 to 2500 employees at
most. About 29% revealed to have employees up to
500 and the remaining 36% revealed that they
have employees greater than 2500 employees.

Number of Employees

Up to 500 Employees
17%
29% 501 to 2500 Employees
4%
2501 to 5000 Employees
15%
5001 to 10000 Employees
35%
10000 and above employees

Source: RAI - SCMHRD India Retail Supply Chain Study 2013

India Retail Supply Chain Study - 2013

28
 F4) Location and Reach

Around 40% of the survey respondents revealed that they have brick
and mortar stores in more than a 100 locations. This is followed by a sharp
decline in the number of retailers who have an expansive physical presence.
Data shows that only 7% have 76 to 100 stores. 22% of the retailers have
stores between 51 to 75 locations and a similar percentage of retailers who
have stores between 11 to 50. The current study included 10% of the
retailers who had stores between 1 to 10. Therefore, it can be concluded
that the study focuses on brick and mortar stores having substantial
presence in terms of the number of stores.

Number of Retail Outlets

1 to 10 Locations
10%
39% 11 to 50 Locations
22%
51 to 75 Locations
7% 22% 76 to 100 Locations
Over 100 Locations

Source: RAI - SCMHRD India Retail Supply Chain Study 2013

India Retail Supply Chain Study - 2013

29
 Report Team for the India Retail
Supply Chain Study 2013
This research report is a comprehensive collaborative effort between
two different organizations, based in two different cities and specializing in
two different fields. The following people from the core team(s ) at the heart
of this study and were responsible for the questionnaires, conducting the
survey, participating outreach, data collection, data analysis, content
writing, report printing and logistics:

From Retailers Association of India (RAI):

Lawrence Fernandes, Sophia Godinho, Poonam Jadhav & Deris Micheal

From Symbiosis Center for Management and Human Resource

Development (SCMHRD), Pune:
Aradhana Gandhi, Pratima Sheorey & Richa Priya

Contact Details :

Symbiosis Center for Management and

Human Resource Development
Retailer Association of India (RAI)
(SCMHRD)
Corporate Office
111/112, Ascot Center Symbiosis International University
Near Hotel ITC Maratha, Symbiosis InfoTech Campus,
Sahar Road,Sahar, Plot No. 15, Rajiv Gandhi InfoTech Park
Andehari(E),Mumbai – 400 099 MIDC, Hinjewadi, Pune-411057 INDIA
Phone : (22) 28269527-29 Phone: (20) 22934304/05
Fax : (22) 28269536 Fax: (20) 22934306
E-Mail: Aradhana_gandhi@scmhrd.edu
Website : www.rai.com
Richa_priya@scmhrd.edu
Website: www.scmhrd.edu

India Retail Supply Chain Study - 2013

30
 A Collaborative report by the Retailers Association of India
and Symbiosis Center for Management and Human Resource
Development.

Retailers Association of India (RAI) is a non-profit organization that

works with all the stakeholders for creating the right environment for the
growth of the modern retail industry in India. For more information, please
visit – www.rai.net.in

Symbiosis Center for Management & Human Resource Development

(SCMHRD) is a premier institute honing world class leaders and
entrepreneurs. Established in 1993, SCMHRD's MBA program is one of the
most prestigious programs in India. For more information, please visit –
www.scmhrd.edu

Report designed by Aradhana Gandhi & Richa Priya

This publication contains information in summary form and is therefore

intended for general guidance only. It is not indented to be substituted of
professional judgment. Neither the Retails Association of India nor
Symbiosis center for management and Huma n Resource Development or any
members of these organization can accept the responsibility for loss
occasioned to any person acting or refraining as a result of any material in
this publication

Report Published: November 2013

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 India Retail Supply Chain Study - 2013
32