Retail industry in India with its more than 12 million outlets, is providing the
second largest employment opportunities after agriculture. It contributes
8%-10% to the GDP. One of the fastest growing sectors in India is the
Organized Retail Sector, which grew at the rate of 40% per annum by 2008. At present,
organized retail accounts for only 4%-6% of the total retail market. The structure of retail
market is developing, especially in cities. Shopping malls are proliferating rapidly in
metros and there would be at least 150 shopping malls by the end of 2008. The number
of departmental stores is growing faster than the overall retail markets at an annual
rate of 24%. Supermarkets have been taking an increasing share of general food and
grocery retail over the last two decades. Leading global retailers such as Wal-Mart, Tesco,
Carrefour and others are keen to enter the Indian retail market.
The first paper of this issue, "Impact of Store Size on Impulse Purchase", by
Sumeet Gupta, Xu Heng and Vimal Sahu provides an overview of the retail management
and retail consumer behavior in India. The authors pronounce that there is no
explicit recognition of a need among customers for such a purchase prior to entry into the
store. According to this study, the impulse purchases made from a large store must be
large enough to justify the investment and turnover of the store as compared to a
smaller-size store. The study reveals that impulse purchases as a ratio of total spending is the
highest for the mid-sized departmental stores and is almost the same for small-sized and
big-sized retail stores.
The second paper of this issue, "Effect of Switching Cost, Service Quality and
Customer Satisfaction on Customer Loyalty of Cellular Service Providers in Indian Market", by
S K Chadha and Deepa Kapoor is an empirical study which speaks about
mobile telecommunication services which has become one of the booming sectors in India.
This sector has been experiencing the highest growth rate in terms of number of
subscribers and revenues to the country. With increasing competition among the cellular
service providers in India, consumers are becoming more demanding towards
mobile telecommunication services and their expectations are rising. The authors observe
that the main condition for protecting and winning the subscriber base and their loyalty is
to examine the effect of switching cost, service quality and customer satisfaction on
customer loyalty on cellular service.
The third paper of this issue, "Viewer Relationship Management in Indian
News Channels: An Analysis Using 7 Ps Framework", by Anand Sapre and Amit Nagpal
talks about Customer Relationship Management (CRM) applied to audio-visual media,
a business-related philosophy and a set of processes and policies, which help in
acquiring and retaining viewersirrespective of whether they are direct or indirect. The main
idea of this paper is to optimize viewer satisfaction, revenue and business efficiency by
building the strongest possible relationships with the viewers at the organizational level.
The fourth paper of this issue, "A Case Study on ORPAT Group's Diversification Woes",
by Khuman L Rathod deals with the journey of ORPAT Group, the most
successful family-run business houses of Gujarat. The Journey of ORPAT started with
the manufacture of mechanical clocks, under the name of Ajanta Transistor
Clock Manufacturing Company. The humble beginning from Clocks to calculators,
telephones, CFL and vitrified tiles has been a commendable growth in terms of product
portfolio and diversification. With infusion of new blood and changing scenario, the group
has diversified into businesses which are having neither technological synergy nor
marketing synergy. This case focuses on the diversification strategy of ORPAT and its
challenges and future strategies.
Finally, the issue concludes with a Book Review on
"The Game – Changer: How You can Drive Revenue and Profit Growth with
Innovation". The book focuses on the framework
for driving innovation around which the entire strategy of P&G, a FMCG
conglomerate has been built, which can be replicated across organizations all over the globe.
-- B Shafiulla
Consulting Editor |