Organised retail, which started in the USA nearly 150 years back, can still be considered to be in its infancy in India. Yet with the growth in the economy, life style changes, young and aspirant population, urbanisation and attitudinal shifts, retail, especially organised retail, is expected to undergo tremendous growth. The sector shall witness changes, diversification and is poised to become highly competitive.
Being one of the most dynamic and fast-paced sector of the economy, retail is estimated to account for over 10 percent of the country’s Gross Domestic Product (GDP) and provides around 8 percent of total employment. India is said to be the world’s fifth-largest global destination in the retail space.
Overall, India’s retail is expected to nearly grow to US$ 1 trillion by 2020 (US$ 600 billion in 2015) and while the overall retail market is expected to grow at 12 per cent per annum, organised retail is expected to expand as fast as 20 percent and the traditional trade at around 10 per cent.
Besides, the metro cities, tier II and tier III cities are witnessing the opening of malls, fast food chains, food courts, supermarkets etc. Further, retailing is also booming in areas like automobile showrooms, banking, insurance, healthcare, luxury stores, electronic and household stores, spas/wellness stores and so on.
It is expected that in the next 5 to 6 years, over 50 million jobs shall be created in the services sector with retail sector generating over 50% of these jobs. Retailing, thus, in various types and forms will be a major employment generating sector.
Students wishing to take up retail management must have the right attitude and character with a commitment to customer care and service. Those willing to go the extra mile to satisfy their customers and add real value to the business will only be successful in the retail sector. Further, good communication and people skills and lots and lots of patience are the prerequisites of any successful retail professional.
Students, after completing MBA in Retail management, must be prepared to work in the trenches (i. e. work on the retail floors) in the initial few years to understand customers and get the hang of the business and thereby develop their competencies in the profession. This has been the story of all successful retailors including the great Sam Walton of Wal-Mart fame.
MBA students, in a typical Retail Management course study the following areas amongst others
• Evolution of world retailing, retailing in India/world
• Retailing concepts
• Retail marketing
• Retail store operations
• Application of information technology and Internet in retailing
• Fundamental of accounts/finance in retailing
• Pricing, promotions & markdowns in retailing
• Retail supply chain management
• Category management & sourcing
• Understanding customer behaviour
• Retail selling skills
• Understanding services marketing
• CRM, customer loyalty management
• Visual merchandising and space planning
• Luxury and lifestyle retailing
• Business communication and social etiquette in retailing
• Store design
• Retail buying
• E-tailing i.e. online retail combining technology, marketing & retail
• Omni-channel marketing
• Market research
Besides, study of ERP and big data analytics has also been introduced in the recent times. Students, on successful completion of their MBA, can expect to be placed as: Retail Managers, Floor Managers, Inventory Managers, Customer Service Managers, and Buyers etc. with starting salary packages ranging between Rs 3 to 5 lakhs.
International retailers on establishing their stores in India are expected to give significant rise in salaries with improved HR practices. Based on the salaries paid by them in other Asian nations where they have strong and successful presence, these companies are expected to pay up-to 40% higher salaries.
Retail management has a strong future in India at least for the next decade or so.
To Know more about PGDM Retail Management Programme