1.

Introduction
The retail industry in India is largely unorganized & predominantly consists of small,
independent, and owner-managed shops. Retailing is INDIA’s largest industry in terms
of contribution to GDP & constitutes 12% of GDP in 2009[1]. There are around 5 million
retail outlets in India. There are also an uncounted number of low cost kiosks (tea
stalls, snacks centre, barber shops, etc) & mobile vendors. Total retail sales area in
India was estimated at 328 million sq.mt.in 2001, with an average selling space of
29.4sq.mt per outlet[2]. In India the per capita retailing space is about 2 sq. ft, which is
quite low compared to that of developed economies[2].

2. Objectives
1. Identify the growth in Retail Sector in India in the next couple of years

2. Identify the basic skills looked for in prospects to be employed in Retail Sector

3. Identify the additional skills required like knowledge about the products etc.

4. Determine the hiring and training methodology implemented by employers in

both organized and unorganized retail sector

5. Determine the training methods used in other countries like Europe, China etc.

6. Establish how Information Technology can be used to prepare a software for the
training model

7. Determine the ways in which cost can be cut by using IT in implementing this
training model

The methodology used includes Primary Research and Secondary Research.

In primary research, we prepared questionnaires for both shop owners and salesmen
employed in the shop. We conducted a survey choosing various Retail Sectors and
analyzed the results. In secondary research, we gathered information through books,
magazines and internet.

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 3. Research Data
3.1. Industry evolution
• Traditionally retailing in India can be traced to The emergence of the
neighborhood ‘Kirana’ stores catering to the convenience of the consumers Era
of government support for rural retail: Indigenous franchise model of store
chains run by Khadi & Village Industries Commission
• 1980s experienced slow change as India began to open up economy.
• Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and
Grasim first saw the emergence of retail chains[3]
• Later Titan successfully created an organized retailing concept and established
a series of showrooms for its premium watches
• The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to Pure Retailers.
• For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and
Music World in music; Crossword and Fountainhead in books.
• Post 1995 onwards saw an emergence of shopping centers, mainly in urban
areas, with facilities like car parking targeted to provide a complete destination
experience for all segments of society
• Emergence of Hyper and Super markets trying to provide customer with 3 V’s -
Value, Variety and Volume
• Expanding target consumer segment: The Sachet revolution - example of
reaching to the bottom of the pyramid.

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 3.2. Retailing formats in India

• Malls:
The largest form of organized retailing today. Located mainly in metro cities, in
proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00, 000 sq ft and
above[2]. They lend an ideal shopping experience with an amalgamation of
product, service and entertainment, all under a common roof. Examples include
Shoppers Stop, Pyramid, and Pantaloon.

• Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer
Crossword, RPG's Music World and the Times Group's music chain Planet M,
are focusing on specific market segments and have established themselves
strongly in their sectors.

• Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the
MRP through selling in bulk reaching economies of scale or excess stock left
over at the season. The product category can range from a variety of perishable/
non perishable goods.

• Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer
needs. Further classified into localized departments such as clothing, toys,
home, groceries, etc. Departmental Stores are expected to take over the
apparel business from exclusive brand showrooms. Among these, the biggest
success is K Raheja's Shoppers Stop, which started in Mumbai and now has

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 more than seven large stores (over 30,000 sq. ft) across India and even has its
own in store brand for clothes called Stop! [2].

• Hyper marts/Supermarkets:
Large self service outlets, catering to varied shopper needs are termed as
Supermarkets. These are located in or near residential high streets. These
stores today contribute to 30% of all food & grocery organized retail sales.
Super Markets can further be classified in to mini supermarkets typically 1,000
sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000
sq ft. having a strong focus on food & grocery and personal sales[2].

• Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential
areas[2]. They stock a limited range of high-turnover convenience products and
are usually open for extended periods during the day, seven days a week.
Prices are slightly higher due to the convenience premium.

• MBO’s :
Multi Brand outlets, also known as Category Killers, offer several brands across
a single product category. These usually do well in busy market places and
Metros.

According to the various surveys, an overwhelming proportion of the Rs.400,000 crore

retail market is unorganized. In fact only an Rs20,000 crore segment of market is
organized. There is no integrated supply chain management outlook in Indian
traditional retail industry. Food sales constitute a high proportion of the total retail
sales. The share was 62.7% in 2001, worth approximately. Rs 7032.2 billion, while non
food sales were worth Rs.4189.5 billion. However the non-food retailing sector
registered faster year-on-year growth than the food sales sector. The trend to market
private labels by specific retail store is catching on in India as it helps to improve
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 margins. The turnover from private labels by major retail chains was estimated at
around Rs 1200 million in 2001[2].

3.3. Current scenario of Indian Retail[4]

Organized retail market in India is expected to reach US$ 50 Billion mark by 2011. The
India Retail Report 2009 compiled by Images F&R Research has been released. Some
of the key points of the report are reported below:

• The Indian retail industry will touch Rs 18,10,000 crore by 2010

• Organized retail will be about 13 percent of the total market at Rs 2,30,000 crore

• Food and grocery dominates the retail segment with 59.5 percent share valued
at Rs 7, 92,000 crore.

• This is followed by clothing and accessories with a 9.9 percent share at Rs 1,

31,300 crore.

• Out-of-home food (catering) services at Rs 71,300 crore has overtaken jewelry

Rs 69,400 crore as the third-largest retail category, with a 5.4% market share.

• Consumer durables at Rs 57,500 crore is the fifth-largest retail category

• At sixth place is health and pharmaceuticals at Rs 48,800 crore

• At seventh place is entertainment at Rs 45,600 crore

• At eighth place is furniture, furnishings and kitchenware at Rs 45,500 crore

• This is followed by mobiles and accessories at Rs 27,200 crore

• Leisure retail at Rs 16,400 crore

• Footwear at Rs 16,000 crore

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 • Health and beauty care services at Rs 4,600 crore

• Watches and eyewear at Rs 4,400 crore

.
The report is based on rising economic growth rate of 8-9 percent and a hike in
average salaries by about 15 percent, which is expected to increase the rate of
consumption
The Indian retail market, which is the fifth largest retail destination globally, has been
ranked as the most attractive emerging market for investment in the retail sector by AT
Kearney's eighth annual Global Retail Development Index (GRDI), in 2009. As per a
study conducted by the Indian Council for Research on International Economic
Relations (ICRIER), the retail sector is expected to contribute to 22 per cent of India's
GDP by 2010.
A McKinsey report, 'The rise of Indian Consumer Market', estimates that the Indian
consumer market is likely to grow four times by 2025. Commercial real estate services
company, CB Richard Ellis' findings state that India's retail market has moved up to the
39th most preferred retail destination in the world in 2009, up from 44 last year.

Banks, capital goods, engineering, fast moving consumer goods (FMCG), software
services, oil, marketing, power, two-wheelers and telecom companies are leading the
sales and profit growth of India Inc in the fourth quarter of 2008-09. India continues to
be among the most attractive countries for global retailers. Foreign direct investment
(FDI) inflows as on September 2009, in single-brand retail trading, stood at
approximately US$ 47.43 million, according to the Department of Industrial Policy and
Promotion (DIPP).

India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$
1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a
democratic country with high growth rates, consumer spending has risen sharply as the
youth population (more than 33 percent of the country is below the age of 15) has seen
a significant increase in its disposable income. Consumer spending rose an impressive
75 per cent in the past four years alone. Also, organized retail, which is pegged at

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 around US$ 8.14 billion, is expected to grow at a CAGR of 40 per cent to touch US$
107 billion by 2013.
The organized retail sector, which currently accounts for around 5 per cent of the
Indian retail market, is all set to witness maximum number of large format malls and
branded retail stores in South India, followed by North, West and the East in the next
two years. Tier II cities like Noida, Amritsar, Kochi and Gurgaon, are emerging as the
favored destinations for the retail sector with their huge growth potential.

Further, this sector is expected to invest around US$ 503.2 million in retail technology
service solutions in the current financial year. This could go further up to US$ 1.26
billion in the next four to five years, at a CAGR of 40 per cent.

India has emerged the third most attractive market destination for apparel retailers,
according to a study by global management consulting firm AT Kearney. The
Northbridge Capital report states that apparel is the "largest organized retail category",
accounting for 39 per cent of the organized market. It is growing at the rate of 12 to 15
per cent annually. Organized apparel retail is projected to touch US$ 200 million by
2010 from the current worth of US$ 120 million, the report noted.

Experts agree that apparel, along with food and grocery, is leading the growth of
organized retailing in India. The results of the past quarter support these findings.

Buoyed by improved consumer spending, sales of listed retailers increased by 12 per

cent in the September 2009 quarter compared with the same period in 2008. This is
higher than the 8.2 per cent posted in the June 2009 quarter. While the previous
quarter saw value retailers such as Koutons Retail and Pantaloon leading sales
recovery, this time around, sales of lifestyle and premium retailers led the growth trend.
Two out of every three retailers managed an increase of at least 10 per cent, compared
to about one in three in the June 2009 quarter.

• Premium players such as Shoppers' Stop and Gitanjali Gems clocked strong
growth of 11 and 31.7 per cent, respectively. Shoppers' Stop saw same-store
sales growth move back into positive territory at 1.8 per cent. Operating profit
margins moved up steadily to 9.93 per cent, almost a 122 per cent improvement
since the December 2008 quarter.
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 • Luxury Goods Retail, which currently sells its products in India under a franchise
agreement, has been allowed to directly retail Gucci products in the country.
Gucci Group NV, Netherlands is investing US$ 225,867 to pick up 51 per cent
stake in the venture.

• Australia's Retail Food Group is planning to enter the Indian market in 2010. It
has ambitious investment plans which aim to clock revenue of US$ 87 million
from the country within five years from start of operations. In 20 years, they
expect the Indian operations to be bigger than their Australian business.

• Lifestyle International, part of the Dubai-based US$ 1.5 billion Landmark Group,
plans to have over 50 stores across India by 2012–13. These will include 35
Lifestyle stores for retailing apparel, cosmetics and footwear, besides 15 Home
Centers that sell home furnishing goods.

• Watch maker, Timex India, is looking at increasing its presence in the country by
adding another 52 stores by March 2011 at an investment of US$ 1.3 million
taking its total store count to 120. The company has recorded revenue of US$
15.9 million and a net profit of US$ 1.2 million, during the first six months of the
current fiscal, ending September 30, 2009

• Wills Lifestyle plans to expand its operations by opening 100 new stores in the
next three years. It also plans to concentrate on online buyers

• Pantaloon Retail India (PRIL) is planning to invest US$ 77.88 million this fiscal
to add up to 2.4 million sq ft retail space at its existing operations. Pantaloon
Retail is also looking to hive off its value retail chain, Big Bazaar, into a separate
subsidiary, which may eventually go for an initial public offer (IPO). PRIL
proposes to open 155 Big Bazaar stores by 2014, increasing its total network to
275 stores.

• Aditya Birla Retail which operates the more chain of supermarkets and
hypermarkets is scaling up its private labels business as an independent
strategic business unit (SBU) and profit centre. This may be spun off as a

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 separate entity as private labels business account for over 19-20 per cent sales
of more supermarkets and hypermarkets.

3.3.1. Policy Initiatives

• 100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee
arrangements are also permitted in retail trade.

• 51 per cent FDI is allowed in single-brand retailing.

3.3.2. Road Ahead

According to a new market research report by RNCOS titled, 'Booming Retail Sector in
India', organized retail market in India is expected to reach US$ 50 billion by 2011.

• Number of shopping malls is expected to increase at a CAGR of more than 18.9

per cent from 2007 to 2015.

• Rural market is projected to dominate the retail industry landscape in India by

2012 with total market share of above 50 per cent.

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 • Organized retailing of mobile handset and accessories is expected to reach
close to US$ 990 million by 2010.

• Driven by the expanding retail market, the third party logistics market is
forecasted to reach US$ 20 billion by 2011.(Exchange rate used:1 USD = 46.83
INR as on November)

• Number of shopping malls is expected to increase at a CAGR of more than

18.9% from 2007 to 2015.

• Rural market is projected to dominate the retail industry landscape in India by

2012 with total market share of above 50%.

• Organized retailing of mobile handset and accessories is expected to reach

close to Rs. 5000 Crore by 2010.

• Driven by the expanding retail market, third party logistic market is forecasted to
reach US$ 20 Billion by 2011.

• Apparel, along with food and grocery, will lead the organized retailing in India.

3.4. Future of retail sector[5]

• The retail sector is expected to grow 40% to $427 billion by 2011.

• By 2017, organized retail will be 15-20% of the total retail market.

• Total retail market $ 800-billion by 2017.

• Impact on rural incomes and urban prices will be real and positive.

• Organized retailing in India will need painstaking, often frustrating, effort to

chisel out India ready business models, retail formats and delivery models.

• Products, Properties, People and Profitability are going to be huge challenges.

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 • The real estate prices and shortage of talented staff, the run-up expenses for
growth are going to shoot up sharply.

• Understanding, interpreting and catering to Indian consumer behavior, taking

into account the social diversity in the country will be crucial to the success of
new players.

• New formats in specialty retail, wholesale retail and luxury retail are expected to
emerge.

• The next few years will provide the answers to the most crucial questions on the
sustainability of modern retailing in India.

• Whether the Indian consumer market can sustain such large growth in modern
retail, whether more and more people will join the consuming class and what the
real market size in small cities will be, become clearer.

• No one can stop the growth of modern retail and the consequent impetus to
consumption and development in India.

3.5. A glimpse of the International Retail[6]

• One of the world's largest industries exceeding US$ 9 trillion

• 47 global fortune companies & 25 of Asia's top 200 companies are retailers

• Dominated by developed countries

• US, EU & Japan constitute 80% of world retail sales.

• Biggest player in India is Pantaloon Retail India Limited.

Percentage of Organized Retail

• USA - 85%

• Taiwan - 81%

• Malaysia - 55%

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 • Thailand - 40%

• Brazil - 36%

• Indonesia - 30%

• Poland - 20%

• China - 20%

• India – 7%

4. Findings
Following are the findings which we could gather through our research work.

4.1 Retail Sector in foreign countries

85% of the world’s retail market is contributed by Europe, Japan and US[2]. The training
methodology implemented in any country depends upon its specific requirements.
Various training methods are being implemented in different parts of the world.
The following sections briefly describe the retail sector of countries like China, Japan,
Europe.

4.1.1 Retail in China[7]

China's retail sales surged 17 percent to 8.9 trillion Yuan ($1.23 trillion) in 2007, the
highest annual rate of growth in at least a decade. The increase was much faster than
national output growth and was significantly higher than 13.7 percent growth in retail
sales in 2006.
In November 2009, retail sales rose to 18.8 percent from 18.1 percent in October, the
fastest pace since the government started gathering the data in 1999. (US$=7.24
Yuan))
The country's retail sales are predicted to increase 18.2 percent year on year in 2010,
boosted by domestic consumption and income growth, according to a recent report by
Beijing-based Renmin University of China. Despite the economic slowdown fast food

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 giant McDonald's has announced that based on its good performance in China, the
company plans to recruit 10,000 new employees in the country, of which, 80% will be
college graduates.

In addition to the recruitment plan, McDonald's launched a China leadership

development plan for the first time to provide professional training to its talent
management team and outlet expansion team to make preparation for its further
expansion.

McDonald's already started to select quality talents in 2008 and entered several
famous Chinese universities, including Peking University, to attract their graduates.

Hiring Process
Hiring and Recruiting in the China is done mainly through job websites which display
the description of the Job Profile and details of the Industry.
For Example: www.fibre2fashion.com

Ajlan & Bros. Co.

• Title: Area Sales and Merchandising Manager

• Industry: Apparel/Clothing

• Position: Merchandiser

• Location: Others - China - China

• Description:

1. Developing marketing strategies with action plans to penetrate new

markets.
2. Explore, identify and develop new opportunities.
3. Ensure completeness and validity of customer's order, and
coordinating.

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 4.1.2 Retail in United Kingdom

• The retail industry employs nearly 2.8 million people (data collected March 09).
• This equates to 11% of the total UK workforce (UK Retail Futures 2011: Sector
Summary, Data monitor).
• Almost 8% of the Gross Domestic Product (GDP) of the UK is generated by the
retail sector.
• In 2008 UK retail sales were over £287 billion which is larger than the combined
economies of Denmark and Portugal (UK Retail Futures 2011: Sector Summary,
Data monitor).
• More than a third of consumer spending goes through retail shops.
• Retail sales account for 1/5 of the UK economy.
• Sales over the internet account for less than 4% of total retail sales, despite
strong growth in recent years.
• The Bureau of Labor Statistics predicts that, of all occupations, retail sales will
have the greatest number of job openings through the year 2016. It is expected
to grow as fast as the average for all occupations.

Skills looked by Retail recruiters in UK are generally as follows

• Communication skills

• Decision making

• Customer service skills

• Knowledge of industry

• Experience and Qualifications

Often these skills are best gained through work experience. Academic qualifications
are unlikely to be very relevant depending on the subject, although they do prove their
intellectual capabilities, as well as problem solving to the recruiters. To work in
specialist retail a formal qualification in the relevant area may be essential.

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 Hiring process

Many companies use a multiple interview process, where a member from Human
Resources, Store Management, and perhaps an Area Supervisor all interview a
potential job candidate. Others may assemble everyone for a committee based
interview. Sometimes a manager is given the tools and training to effectively hire their
team on their own and stand by their decision.

4.1.3 Retail in Japan[8]

Japan is one of the major countries contributing to the world’s retail industry. Retailers
in Japan are mainly focusing on the sales of the company. So in order to increase their
revenues they are looking to recruit salesman, helpers who are good in all aspects and
train them according to the needs.

For example, Dr. Ci Labo uses its call centers to provide what the cosmetics maker call
“counseling order-taking” staffed from 9 a.m. to 9 p.m. Year around, the 120 female
operators are encouraged to spend time talking with customers as they place orders,
counseling them about the best products to buy and, at the same time, gaining insights
into what the largely female clientele wants.

Another way companies are building customer loyalty is by adding full-time employees
in high-sales areas so that customers receive more personalized attention. Ozeki found
it improved customer service in its supermarkets by doubling the number of sales staff
on the floor compared to competitors. Other retailers build customer communities and
promote memorable experiences. The goal is to encourage customers to return, again
and again. Village Vanguard bookstores achieves this by creating playful
environments, with its trademark humorous point-of-sale displays. DISKUNION
develops its stores around music genres and uses employees with music skills to
foster communities.

Hiring process in Japan is done mainly through Employment Exchange Offices.

However, hiring through job-sites is becoming the more prominent.

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 4.1.4 Retail in Europe[2]

The retail industry in Europe comprises sellers of consumer merchandise, including

electronics, food, beverages, apparels, furniture, electrical equipments, and books.

Market Overview
The Retail Industry in European countries is classified into the following formats:

• Hyper Markets
• Discount Stores
• Convenience Stores
• Online Retailing
• Super Markets

Market Size

• UK - It accounted for 8.6% sale of the top 250 retailers worldwide in 2004
• France - French retail sales saw a y-o-y growth of 3.7% in value and 3.8% in
volume in June 2006
• Germany - In 2006, retail sales in Germany rose by 1.9% y-o-y in June 2006

Retail categories

Food and Drinks:

The European food retail industry stood at US$1.1 trillion in 2005 an increase of 3.7%
from 2004. The market has grown at a CAGR (compound annual growth rate) of 3.6%
during 2001-05.

Clothing:

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 In 2005, European retail apparel industry is estimated to have generated sales of
US$261.9 billion. The industry recorded sales of US$256.9 billion in 2004, contributing
30.8% to the global apparel industry.

Electricals:

The Europe electrical retail market stood at US$184.3 billion in 2005. The UK market is
the largest electrical market in Europe and was worth US$45.5 billion in 2005.

Beauty Care:

The European beauty care market is the largest market in the world and contributed to
35.7% of the global cosmetics market in 2005.

Department Stores:

The department stores in Europe contributed about US$40.8 billion or 8.3% of the
global department store sales in 2004.

Skills

Retail Salespersons sell merchandise, such as furniture, motor vehicles, appliances, or

apparel in a retail establishment.

Below are the tasks explained that the salesperson should do in a retail store

Tasks

• Greet customers and ascertain what each customer wants or needs.

• Open and close cash registers, performing tasks such as counting money,
separating charge slips, coupons, and vouchers, balancing cash drawers, and
making deposits.
• Maintain knowledge of current sales and promotions, policies regarding
payment and exchanges, and security practices.

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 • Compute sales prices, total purchases and receive and process cash or credit
payment.
• Maintain records related to sales.
• Watch for and recognize security risks and thefts, and know how to prevent or
handle these situations.
• Recommend, select, and help locate or obtain merchandise based on customer
needs and desires.
• Answer questions regarding the store and its merchandise.
• Describe merchandise and explain use, operation, and care of merchandise to
customers.
• Ticket, arrange and display merchandise to promote sales.
• Prepare sales slips or sales contracts.
• Place special orders or call other stores to find desired items.
• Demonstrate use or operation of merchandise.
• Clean shelves, counters, and tables.
• Exchange merchandise for customers and accept returns.
• Bag or package purchases, and wrap gifts.
• Help customers try on or fit merchandise.
• Inventory stock and requisition new stock.
• Prepare merchandise for purchase or rental.
• Sell or arrange for delivery, insurance, financing, or service contracts for
merchandise.
• Estimate and quote trade-in allowances.
• Estimate cost of repair or alteration of merchandise.
• Estimate quantity and cost of merchandise required, such as paint or floor
covering.
• Rent merchandise to customers.

4.2. Hiring Methods & Training Institutes In India

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 Hiring process in India takes place usually in informal ways mainly through reference.
But there are certain institutes and centers which train people and make them employ
in the retail marts.

Detailed explanation of these processes is given below.

4.2.1 DRDA

District Rural Development Agencies (DRDAs) are district level development

execution and monitoring agencies created under the Indian Societies Registration Act.
Substantial sums of rural development funds of government of India were transferred
and routed through them under various Centrally Sponsored Schemes. From purely a
financial resource from Rural Development point of view the DRDAs are extremely
important institutions at the district level.

Set of officers of the DRDA organization act as trainers. They select the drop
out/passed out students from below poverty level families through written exam.
Training is given to them for about 30-45 days. Then these students are made
employed in the retail marts like Big bazaar, More….etc. DRDA has tie up’s with many
retails giants.

DRDA conducts the program in the selected village after the initial survey about the
village. Training is in two stages. First level is basic orientation program and in the next
level skill development training is given.

Government of India has tied up with different multinational companies to conduct

LABS under employment schemes like Swaran Jayanthi gram swarozgar yojana and
1993 employment schemes.

DRF has initiated new grameen lab program and working with EGMM(employment
generation and marketing mission) to provide placement linked skill training and self
employment opportunities for rural and urban poor in the state.

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 4.2.2. REACH[9]

Retail Employability and Careers Hub training program for employment in the retail
industry was Initiated by Suchi Iyer an IIM-C pass out in the year 2009.

• This unique training program is aimed at matriculates, college dropouts and

other unemployed youth to enable them to gain access to entry level job
opportunities in the organized retail outlets across the country
• Through its training REACH aims to create locally available, industry ready, well
trained manpower to service this requirement
• REACH will have tie-ups with leading retailers to employ trained candidates
• REACH is partnering with Hughes Net Fusion to deliver the program at Hughes
satellite training centers all over the country
• The course delivery has a unique model that will include conceptual learning via
Virtual Classrooms and Self-paced Learning along with practical exposure
through Store visits and Experiential Assignments
• For developing its e-learning platforms, REACH is in strategic partnership with
Ballistic Learning, India's leading development Company in the area of LMS
(Learning Management Systems)
• REACH targets training and placing over 1.5 lakh candidates in the next 3 years

4.2.3. ICA

Incorporated by Mr. N K Shyamsukha, ICA in 1999 Headquartered in Kolkata and

having a pan India presence of 300 centers & 30 Placement Offices, 10 Regional
Offices & 3 Zonal Offices. ISO 9001:2000 certified, pioneers in imparting Computerized
Accounts, Finance and Taxation and Retail Management courses one of the first

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 players in the industry to offer job-guaranteed training programs.100000 successfully
passed out & placed students[3].

They give training to the students and issue a certificate CRE (certified retail
executive). The eligibility to undergo this course is 10+ 2.The course content includes
training in basic soft skills( Grooming, Communication Skill ,Interpersonal Skill ,Team
Building ,Supervisory Skill ,Goal Setting ,Body Language ,Bio Data Writing ,Interview
Skill, Time Management) and computer skills. They also have in-house lab facility to
give practical training to the students.

4.3 Survey
This is a process whereby first hand information is collected. This method is needed for
meeting the specific objective of research study.
To determine the training needs of people employed at the bottom of the pyramid in
Retail Stores, a survey was conducted. For this two questionnaires were prepared, one
addressing the Store owner/manager and the other addressing the salespersons
employed in the stores. Employers were asked questions like what skills are looked in
for prospective employees and the training provided to them. Employees were
questioned about their qualification, the kind of training they got after being employed
in the store and if they are willing to take up training if it is offered by any external
institutes.
Survey was carried out in various sectors like Jewellery, Textile, Super Markets etc in
different areas within the city of Hyderabad. However, two sectors, i.e., Super Markets
and Textile were concentrated upon.

4.3.1. SAMPLE DESCRIPTION:

After deciding on the research approach and instruments, sampling plan was designed
as follows
• Sampling size: The target for this was 50 employees in retail sector.

• Sample selection procedure: To obtain an unbiased result the employee’s

sample from the population were interviewed randomly. So the sampling

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 technique chosen for the research is Random sample technique. Every
employee inside the mall (shop) had an equal chance of being interviewed.

• Sample unit: The employee’s and shop owner/manager who work in the mall
are the sample unit.

• Contact method: Personal approach to each and every person for all surveys
and interviews were through Contact method which was used for obtaining a
proper and detailed feedback. A face-to face interaction took place with each
sample representative. The data collected through questionnaire was properly
classified and tabulated in the form of a report. These reports formed the basis
for the comparative analysis and drawing inferences. From the inferences
certain conclusions were drawn and recommendations were made.

• Field work: The fieldwork was conducted for a period of five days for the
research. Interviews were conducted inside the mall.

The survey was carried out in the following Retail Stores:

Organized Sector:
• Big Bazaar

• Bata

• Arrow

• More For You

• Reliance Communications

• Levi Stores

• Pepe Jeans

• Stay fit health & Fitness Pvt. Ltd.

• KFC

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 • Value Mart

Unorganized Sector:
• Balaji Super Market

• Sri Lakshmi Super Market

• Fashion Clothes

• Shanti clothing

• Golden Bangle Stores

• New Bharat CD Shop

• Jyothi Art Studio

• Sri Siddhi Pearls

The following information was obtained

1. Inventory Management
Unorganized:
• Weekly

• For every 30 days

Organized:
• Daily stock checks

• Physical inventory check for every 15 days

• Through a software system

• Auto replenishment system (replacing the sold out items)

• Weekly checks

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 2. Knowledge about the product
• Super Market: Knowledge about the products assigned

• Textile: Size, Price range, Quality, Material, Measurements, offers

• Jewellery: Price range, quality, guarantee, offers

• Telecommunications: Tariff plans, top ups, offers

• Footwear: Sizes, Foot denominations, quality, Price, Discounts

• Food: Ingredients and product recipe

3. Hiring process:
• Interview

• Directly through reference

• Entrance exam (aptitude)

4. Training methodology:
• On-job training

• Classroom training

• Product training

• Training in Communication/soft skills

• Training in persuasion skills

• Classroom training programs called “Seven steps to sure sales” and “Step
Ahead Course” are given for new recruits in Bata

5. Existing Hiring Models

Recruitment into the jewellery sector is either through reference or through middle-
men. In an organized sector, whenever there is a need for manpower, job portal sites
like Monster.com, Naukri.com are consulted. These organizations have connections

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 with middle-men who are informed about the requirement of human resource. These
middle-men then select an area and look for a reputed and successful shop within that
area. They then visit the shop as customers and observe the salesmen in that shop. If
they find anyone worthwhile, they offer them a job with higher salary. Once they accept
the offer, they are recruited into the organized retail store.
In some cases, salesmen are hired from a training institute where in people who have
completed their schooling is trained for skills like communication, personal grooming,
attitude and basic arithmetic. For instance, in Big Bazaar Mall, most of the
salespersons are recruited from a training institute called DRDA, wherein they were
already trained in basic skills required for selling.
Some organized retail stores also conduct entrance exams before hiring. For instance,
BATA is one organized retail outlet which conducts a basic aptitude exam for
applicants before hiring them as salespersons.
Almost all the unorganized retail stores and very few organized retail stores hire people
through reference. Here knowing about the person and his background before
employing him in the shop is considered important.
Employees handling cash are hired only when they have a strong reference. In some
organized retails like Big Bazaar, a resume drop box is placed where in walk-ins are
allowed.

4.4 Results
Employer/ Shop Owner/ Manager Survey
1. Number of salesmen working
Unorganized Sector

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 Organized Sector

2. Hiring Process

Unorganized Sector

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 Organized sector

3. Skills looked in prospects before hiring

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 4. Training Period

Unorganized Sector

Organized Sector

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 5. Attrition Rate
Unorganized Sector

Organized Sector

1. what is more important while hiring a person?

Organized
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 a) reference-2 b) skill-8
Unorganized
a)reference-7 b)skill-3

2.Is prior work experience considered before hiring?

Organized
a)yes- 8 b)no- 2
Unorganized
a)yes-4 b)no-6

3.Training Methodology used ?

Organized
a)on the job training-5 b)assigning a trainer/mentor-1
c)Classroom training-4
Unorganized
a)on the job training-6 b)assigning a trainer/mentor-4
c)Classroom training-0

4. Are you willing to hire people formally trained in training institute?

Organized
a)yes-9 b)no-1
Unorganized
a)yes-4 b)no-6

4.4.1 Employee/Salesman Survey

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 1. Hiring Process

Unorganized Sector

Organized Sector

2. Skills looked for while hiring

Unorganized

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 Organized

3. Training in external institute

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 Unorganized

Organized

5. Opportunities

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 While the rest of the world frets about the economic effects of an aging population, one
country that will grow increasingly younger is India. By 2050, its 1 billion population will
hit 1.57 billion. According to India's census bureau, 40% of the populace is below the
age of 18, and by 2015, 55% will be under 20. That sounds like plenty of worker bees
to fulfill the promise of making India a services and manufacturing power over the next
two decades. The bad news is that India could easily squander its demographic edge.
Despite the success of a few world-class schools such as the Indian Institutes of
Technology, India's education system is in a dismal state overall. India spends just
3.5% of its gross domestic product on education, way below China's 8%. Of its 1
million schools, most are state-run and substandard. While 96% of India's children
enroll in primary school, by the age of 10 about 40% have dropped out, says the
education department[10].
The existing players like Big Bazaar, Shoppers' Stop, Piramyd are expanding to
smaller towns and cities. Many other business houses are planning to enter the retail
sector either on their own or through partnerships. New entrants like Reliance Retail
Ltd and Wal-Mart have entered the market. Even rural areas will provide a huge
opportunity to be explored. So there will be a number of jobs in the retail sector in
future.

5.1 Changing Skills for Retail Staff

Traditional Methods Driver of Change

1. Only acknowledging the customers if they 1. Due to increase in competition, they started
ask for help focusing on excellence in customer service
2. Carrying out the instructions 2. Organisational restructuring of Managers
and Increased accountability and regulation
3. Cash Handling 3. Increased use of IT
4. Shelf Stacking 4. Changing method of Stock control

New Skills Required Improvements made in Training and

Development
1. Actively offering help to achieve a sale 1. Focus on Selling Skills, Communication and

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 Interpersonal Skills
2. Increased Product Knowledge 2. Special Product Training—“GOING THE
EXTRA MILE”
3. Increased Responsibility 3. Employers are trying to create “Ownership”
of work among their staff.
--- Staff should be proactive and use initiative
awareness of health and safety measures
--- Communication of up to date Policy and
legislation.
--- Knowledge of legal Requirements(eg. sale
of
Goods act).

4. General IT Knowledge 4. Ability to read spread sheets and

computerized stock records

Source:
http://www.skillsmartretail.com/pdfs/stage_one_report_skills_needs_assesment_final1.pdf[12]

6. Conclusion

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 According to India Retail Report 2009 compiled by Images F&R Research, Indian
retail industry will touch Rs 18,10,000 crores by 2010. Organized retail will be about
13 percent of the total market at Rs 2, 30,000 crore[11].
A large young working population with median age of 24 years, nuclear families in
urban areas, along with increasing working women population and emerging
opportunities in the services sector are going to be the key growth drivers of the
organized retail sector in India. The India Retail Industry is gradually inching its way
towards becoming the next boom industry.
In such a scenario, there is expected to be a huge demand for people with low
spectrum skills to be employed as salespersons in the retail sector. Hence there is
a dire necessity of an efficient training model through which one can impart such
skills to unemployed youth like school or college dropouts and create opportunities
for them.

7. Recommendations
The following model can be implemented to provide efficient training for the low level
employees in retail sector taking into consideration the needed skills and the impacts of
training and development which are mentioned above.

Step 1:
Prepare training software:
Software should has to be mainly concentrated on basic aspects like
• Basic English
• Grooming

• Arithmetic

• Communication skills

• Interpersonal skills

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 Step 2:
Create Awareness:
Awareness is to be created among the people regarding the training we provide.
Step 3:
Registrations:
Start registration process and form the batches to conduct the classes. The registration
process can be done in two ways:
• Spot registrations – at retail centers and govt. schools and colleges
• Website registrations
Step 4:
Strategic partnership:
Collaborating our training program with the following organizations will help us getting
students initially and placing them in the companies at the end of the training program.
• Team lease – staffing company that provides man power solutions to retail
industry
• District rural development authority(DRDA)
• NGO’s
• Few retail shops
Step 5:
Vocational training:
This can be an extension to our training program. Providing a specific training to the
students will widen the scope of being placed in any organization.
• Sector based – Retail, Hotel Management, Security
• Dual training – Both Class room training and Field training

E.g. VT for retail sector includes

• Customer services
• Sales
• Operations

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 8. Key Learnings
1. We got an opportunity to apply the classroom concepts of Marketing Research
in the practical environment and thus bridge the gap between theory and
practice

2. Human Resource Management in the Retail Sector and the hiring process
carried out in Retail Sector

3. Training & development methods implemented by Retail Sector

4. To effectively communicate managers/ heads of various organizations and retail

stores

5. To intelligently extract required information from people

6. To be patient with people who are unwilling to share information

7. Learnt about various Retail Stores like Bata, Arvind Mills, etc and organizations
like DRDA, REACH etc. while conducting our survey

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 9. Bibliography

1. www.businessweek.com/magazine/content/.../b3918023.htm (accessed from

14-01-2010 to 18-01-2010)
2. www.retailyatra.com (accessed from 14-01-2010 to 18-01-2010)
3. www.indiainfoline.com (accessed from 14-01-2010 to 18-01-2010)
4. www.livetradingnews.com/feer-a-look-at-japans-retail-sector.h (accessed
from 14-01-2010 to 18-01-2010)
5. www.future.com (accessed from 14-01-2010 to 18-01-2010)
6. www.online.onetcenter.org/report?r=1&id=435 (accessed from 14-01-2010
to 18-01-2010)
7. www.chinaretailnews.com (accessed from 14-01-2010 to 18-01-2010)
8. www.check4jobs.com/job-sectors/retail(accessed from 14-01-2010 to 18-
01-2010)
9. www.metamorphskills.com/reach/ (accessed from 14-01-2010 to 18-01-
2010)
10. www.timesofindia.com (accessed from 14-01-2010 to 18-01-2010)
11. www.futurebazaar.com (accessed from 14-01-2010 to 18-01-2010)
12. www.skillsmartretail.com(accessed from 14-01-2010 to 18-01-2010)

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 10. Annexure

Questionnaire for shop owners/keepers

Name of the Retail Store:
Location:
1. How many salesmen work in your shop?

a) <5 b) 6 to 10 c) 11 to 15 d) >15

2. How do you hire them?

a) Reference

b) News paper ads/ pamphlets

c) Walk-ins

d) Any other please specify…………………

3. Tick the skills looked for in prospects before hiring them.

i. Language

ii. Patience

iii. Interpersonal

iv. Persuasion

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 v. Arithmetic

vi. Knowledge about the product

vii. Any other, please specify………………………………..

4. Is prior work experience considered before hiring?

a) Yes b) No

5. Is any formal training given to them?

a) Yes b) No

6. If yes, Training methodology used

a) On job training

b) Assigning a trainer/mentor

7. Training method used for handling computers for billing.

8. Training period

a) < 1 month b) 1 to 2 months

b) 3 to 4 months d) > 4 months

9. How is the inventory management done in the store?

10. What knowledge about the product is necessary for a salesman

working?
In your store?

11. What is more important while hiring a person?

a) Reference b) Skills

12. Are you willing to hire people formally trained in training institutes?
a) Yes b) No

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 13. What is the attrition rate?

a) Leave after training in 3 months, 6 months etc.

b) Very few leave
c) Leave for better opportunities
d) They are only part time to pursue their studies further

Questionnaire for employees

Age:
Job:
1. How did you get to know that there is an opportunity here?

a) Reference

b) Paper ads

c) Walk-in (direct search)

2. What was your hiring process?

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 3. What were the most important skills that they stressed upon while
hiring?

a) Know the language b) Educational background

c) Previous Experience d) Social Background

e) Travel Convenience

4. Was there any formal training given?

a) Yes b) No

5. What was the method of training followed?

6. How long was the training period for?

a) 1 to 2 months b) 3 to 4 months c) > 4 months

7. Were you satisfied with the training methodology?

a) Yes b) No

8. Did you acquire the skills needed?

a) Yes b) No

9. Are you aware of the future prospects of the job?

a) Yes b) No

10. Will you be willing to take up training if it is given by an external?

institute?
a) Surely b) depending upon the situation c) not sure

11. Are you satisfied with the job?

a) Yes b) No

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 12. What knowledge about the product is to be known while working
here?
13. Is this your Part Time?

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