1.

Industry profile
INDIAN RETAIL INDUSTRY OVERVIEW The sale of goods or commodities in small quantities directly to consumers is known as retailing. A "retailer" buys goods or products in large quantities from manufacturers or importers either directly or through wholesalers and then sells smaller quantities to the end user. Retail is Indias largest industry, accounting for over 10 percent of the countrys GDP and around eight percent of employment. Retail in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. That said, the heavy initial investments required make break even hard to achieve and many players have not tasted success to date. The Indian retail industry in valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015. Only three percent of Indian retail is organized. Retailers of multiple brands can operate through a franchise or a cash-and-carry wholesale model. Retailing in India is gradually inching its way to becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping. Modern retail has entered India as seen in sprawling shopping centers, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retail and growth in the consumption by Indians is going to adopt a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. 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 se STRUCTURE OF RETAIL INDUSTRY IN INDIA Unorganized Retail Sector Retailing in India is predominantly unorganized. According to a survey by AT Kearney, an overwhelming proportion of the Rs. 400,000 crore retail market is UNORGANISED. In fact, only a Rs. 20,000 crore segment of the market is organized. We are known as a nation of shopkeepers with over 12 million, the highest outlet density in the world in the world with an estimated turnover of $ 200 billion. However a disturbing point here is that as much as 96 per cent of them are smaller than 500 square feet in area. This means that India per capita retailing space is about 2 square feet (compared to 16 square feet in the United States). India's per capita retailing space is thus the lowest in the world. Another

point to note is that only 8 % of our population is engaged in Retail whereas the global average is around 10-12%. Organized Retail Sector Organized retailing in India represents a small fraction of the total retail market. In 2001, organized retail trade in India was worth Rs 11,228.7 billion. The modern retail formats are showing robust growth as several retail chains have established a base in metropolitan cities, especially in south India and are spreading all over India at a rapid pace. However, space and rentals are proving to be the biggest constraints to the development of large formats in metropolitan cities since retailers are aiming at prime locations. In urban India, families are experiencing growth in income but dearth of time. More and more women are taking up corporate jobs, which is adding to the familys income and leading to better lifestyles rising incomes has led to an increased demand for better quality products while lack of time has led to a demand for better quality products while lack of time has led to a demand for convenience and services. The demand for frozen, instant, ready-to-eat food has been on the rise, especially in the metropolitan and large cities in India. There is also a strong trend in favour of one-stop shops like supermarkets and department stores. GROWTH OF RETAIL SECTOR IN INDIA With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Groups foray into organized retail. With a 27% share of world GDP, retail is a significant contributor to overall economic activity across the world. Of this, organized retailing contributes between 20% to55% in various developing markets. The Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is expected to grow to 10% by 2011. RRL has embarked upon an implementation plan to build state-of-theart retail infrastructure in India, which includes a multi-format store strategy of opening neighbourhood convenience stores, hypermarkets, specialty and wholesale stores across India. RRL launched its first store in November 2006 through its convenience store format Reliance Fresh. Since then RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. RRL launched its first Reliance Digital store in April 2007 and its first and Indias largest hypermarket Reliance Mart in Ahmadabad in August 2007. This year, RRL has also launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance Timeout), auto accessories and service format (Reliance AutoZone) and also an initiative in the health and wellness business through Reliance Wellness. In each of these store formats, RRL is offering a unique set of products and services at a value price

point that has not been available so far to the Indian consumer. Overall, RRL is well positioned to rapidly expand its existing network of 590 stores which operate in 57 cities. MAJOR RETAILERS IN INDIA Indian apparel retailers are increasing their brand presence overseas, particularly in developed markets. While most have identified a gap in countries in West Asia and Africa , some majors are also looking at the US and Europe. Arvind Brands, Madura Garments, Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route and standalone stores as well. Another denim wear brand, Spykar, which is now moving towards becoming a casual wear lifestyle brand, has launched its store in Melbourne recently. It plans to open three stores in London by 2008-end. MAJOR RETAILER SPACE HOLDERS IN INDIA Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries, Trent and the new entrants penetrating the market soon will include Reliance Retail Ltd, Wal-Mart Stores, Carrefour, Tesco, Boots Group, etc.The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra Group is the fourth largest Indian business group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a range of products, or both. 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. They lend an ideal shopping experience with an amalgamation of product, service and entertainment; all under a common roof. Examples include Shoppers Stop, Pyramid, 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/Nonperishable 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.

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. Examples Big Bazar, Reliance hyper mart. Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. 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. MBOs: 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. Future Plans : o Reliance Retail runs over 850 stores, which include stores for food and grocery, consumer durables, beauty and wellness, jewellery, footwear, among others. o Its formats such as apparel chain Reliance Trends, beauty and wellness format Reliance Wellness, consumer durable chain Reliance Digital have private labels or are in the process of launching private label

2. Company profile
a. Background and inception of the company
Reliance Retail brings Reliance Trends to Bengaluru, after a successful launch of 10 other stores in Delhi, Gurgaon, Hyderabad, Mumbai, Jallandhar, Ahmedabad and Kochi. Reliance Trends, the Apparel, Luggage and Accessories specialty store is spread over 18,000 square feet of shopping area, and offers more than 100 Indian and International brands which are the best in apparel, cosmetics and accessories. It has been designed to offer high quality shopping experience to the Indian consumer, with wide aisles, coordinated displays and highly trained fashion associates offering best in class customer assistance. The store offers ample parking to consumers with a capacity to host up to 100 cars or 200 two-wheelers at any given time. Announcing the launch, Arun Sirdeshmukh, Chief Executive, Reliance Trends said, We are +thrilled to bring Reliance Trends to Bengaluru, We are confident that the latest fashion and high quality of our products at very affordable prices will be welcomed by Bengalurus discerning consumers. At Reliance Trends we bring the best of the brands including many from Reliances own collection, all under one roof, thereby, delivering fantastic choice and quality at an affordable price.

The uniqueness of the store lies in an uncompromising attention to quality in all products, the +0high fashion quotient in its seasonal collections, The innovative Technology solutions offered in products such as Arromatic tees for infants, Ever White Shirts and Travel Suits for men. and Performax activewear products for men and women. All this, at unbelievable and very affordable prices, such as Rs. 199 for a shirt, Rs. 299 for jeans or Rs. 79 for kidswear

Reliance Trends offers a whole host of brands across mens, womens and childrens categories to fulfill every customer need. Some of the most renowned brands in the country like Peter England, John Players, Raymond, Vimal , Reid and Taylor, Contra, Jockey, Spykar, Miss Players, 109F, etc are present at Reliance Trends. Reliances own brands include, Network range of garments which comprises of formal office wear collection for men and women, while the Netplay range, showcases a smart casual collection for the evolving workplace. The DNMX range has been developed with a clear focus on the youth of India, offering them exclusively crafted fashion garments like Denims, T shirts etc. Graviti, the innerwear range for men offer the best of inner and lounge wear for todays man. Sparsh range of Indian wear for women, offers the finest collection of Salwar Kurtas, Churidars and a fast evolving Mix n Match range of garments. Hushh, the lingerie line for women offers an extensive range of innerwear and sleepwear for the discerning woman. Panda, has been developed for infants and toddlers, while the Frendz range of garments would compliment the wardrobes the growing generation of boys and girls. Grip, the range of luggage, includes travel luggage, office luggage, school and hand bags. Reliance Trends houses 100 brands and own 16 brands across men, women and children categories to fulfill every customer need. Some of the world's best brands, and Reliance's own collection. Reliance Trends offers 16 private brands across men's, women's and children's categories. The collection offers high fashion and high quality at surprisingly low prices. The uniqueness of Reliance Trends is its core mission to deliver "fashion at great value". After a successful launch of Reliance Trends stores in Delhi, Gurgaon, Ghaziabad, Bangalore, Hyderabad, Mumbai, Jalandhar, Ahmedabad, Kochi, Nasik, Indore, Vishakhapatnam, Chennai, Guntur, Thane, Vijayawada, Baroda, Mangalore, Jaipur, Ranchi, Nagpur, Mysore, Lucknow, Ujjain, Calicut and other cities, Reliance Trends launched its 50th store in the country. Reliance Trends was rated India's most preferred department store in a recent survey conducted by Which? Right Choice magazine. The survey, in which 1,917 people in 10 cities participated, revealed that relative newcomer Reliance Trends was the most preferred department store, with a customer score of 74%. The survey awarded Reliance Trends four stars for service, in-store experience, price and product quality, and five stars for product range Reliance Trends caters not just to the Ready-to-wear consumer, but also to the large number of men and women who prefer to shop for fabric and tailor their clothes. This is possible due to the unique mix of fabric and Ready-to-Stitch brands in men's and women's respectively. Reliance's own brands include, Pureza - a collection of pure Cotton & Linen shirts for men, Network range of garments which comprises of formal office wear collection for men and women, while the Netplay range showcases a smart casual collection for the evolving workplace. The DNMX range has been developed with a clear focus on the youth of India, offering them exclusively crafted fashion garments like Denims, T shirts etc. Also, Performax, the specialized sportswear brand, which supports performance in sporting activity. Graviti, the innerwear range for men offer the best of inner and lounge wear for today's man.

b. Nature of the business carried

c. Vision, Mission and quality policy

VISION To make RIL one of the most innovative companies in the world and to achieve breakthrough growth in revenues and profits by creating and implementing sustainable solutions.

MISSION

To be the most admired and successful organized Retail Company in India that materially enhances the quality of life of every Indian.

SPIRIT OF RELIANCE Growth has no limit at Reliance, only when you dream it you can do it. Meeting deadlines is not enough but beating deadlines is the expectation. We bet on people

d. Products/services profile

o Reliance Retail Limited operates retail outlets in India. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic o goods, and farm implements and inputs. The companys outlets also provide vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables, travel services, energy, entertainment and leisure, and health and well-being products, as well as educational products and services. The company was formerly known as Reliance Petroleum Retail Private Limited and changed its name to Reliance Retail Limited in January 2006 o Product profile of Reliance Trends o Mens Wear o Formal wear o Casual wear o Under Garments

o Sports wear o Semi-Formal wear o Mens wear Fabric

Womens Wear Indian wear Semi-Formal wear Dress Material Formal wear Casual wear Lingerie

o Kids Wear Infants Girls 2-8 years Girls 8-14 years o o Accessories Handbags Handkerchiefs Socks Sports goods Toddlers Boys 2-8 years Boys 8-14 years

e. Area of operation f. Ownership pattern g. Competitors information Reliance Retail Limited and competitors STORE FORMAT (CATEGORY) RRLS (Reliance Groups) VENTURE INDUSTRIAL IST GROUP/FAMILY

COMPETITION

Pantaloons Retail (47) Pantaloons Factory Outlets (37) BIYANI GROUP Big Bazaar (116 stores) Big Bazaar Best Deals (3 stores) Big Bazaar Express (3 stores) Malls and Hypermarkets RELIANCEMART Star India Bazaar Shoppers Stop (27 stores) Spencers Hypermarket (250 stores) RELIANCE FRESH Food Bazaar (168 stores) Organized Kirana or Neighborhood grocery stores and grocery RELIANCE SUPER Food World RELIANCE TATA GROUP K. RAHEJA GROUP RPG (Ram Prasad Goenka) GROUP BIYANI GROUP RPG (Ram Prasad Goenka) GROUP

supermarkets

DELIGHT

Trinethra /Birla Supermarkets (619 stores)

A.B. BIRLA GROUP

Brand Factory, Fashion Station, BIYANI GROUP Blue Sky, Celio, Central, Lee Cooper Trent Westside (38 stores) Trent Fashion Yatra Adidas Apparels and fashion accessories Biba RELIANCE TRENDS Nike MegaMart Levis Pantaloons Max Life style Consumer Electronics RELIANCE DIGITAL Croma Retail (34 stores) RELIANCE TIMEOUT Reliance Jewels Depot (116 stores) Landmark (10 stores) Navaras TATA GROUP BIYANI GROUP TATA GROUP BIYANI GROUP TATA GROUP

Books and Music stores Jewels

i.achievements/awards
y

Reliance Trends received the 'Retail Marketing Campaign of the Year Award' at the Asia Retail Congress 2010. Reliance Trends received the 'Impactful Retail Design and Visual Merchandising of the Year Award' at the Asia Retail Congress 2010.

j.work flow model k.future growth and prospectus

4.

SWOT analysis of reliance trendz

STRENGTH y

Stores are located at location that ensures good Footfall, Reliance trends occupy competitive advantage in terms of retail location of the store

y y

Merchandise is Fashion oriented Low price of Merchandise attract middle income group customer. The merchandise is designed uniquely to fill the market gap in middle to lower middle income group level

Merchandise is targeted towards the fastest growing demographic segments of age i.e, 18-25 years of age, it contributes to a very large market size

The store signed in youth icon like Katrina kaif and Ranbir kapoor to promote the store

Though the loyal customer base is small but customer are highly satisfied with the store

Reliance Trends earns the goodwill and reputation earned by Reliance group over the years

Weakness y Lack of product differentiation in the product line . Since reliance trends is a late entrant in the Indian retail sector, it lacks the differentiation factors which it can attract customers to the store y Acute lack o awareness about the store, even after heavy advertisement the stre is unable to build a strong customer pull towards itself. y Visual merchandising of the store demands a great amount of efforts. The products are displayed in a very geometrical patterns creating a huge but brush effect and sending across a message that the merchandising is comparable to FMCG products y Lack of major national and international brands in store also a major hindrances to footfall in the store

The quality of merchandise is low especially the private label. This acts like a major hindrances to the customer pull towards the store

Te sales consultant on the floor should be more trained to promote the store aggressively

Opportunity y Value retail is associated with reliance trends offers fresh stock at such low price and thus trying to differentiate from other competitors y Customers who demand fashion merchandise which is a bit low on quality but available at low price patronize the store y y y It can target penetration strategy The store offer in house labels and thus has freshness associated with it It can effectively use other subsidiaries of reliance retail to promote its brand

Threats y Negligible awareness about the presence of store in cities where the store is not present y The company is started in a time when the retail space is already occupied with many competitors. Reliance trends gives a me-too image to the company y It has poisoned itself for middle to lower middle income group customers but this income group might not generate revenues similar or equivalent to sustain the huge market expansion plans of the firm y Reliance trends face cut throat competition from stores like Lifesyle, Pantaloons, and Shoppers Stop respectivelys

3.Mckenseys 7s frame work with special reference to organisation under study

5.analysis of financial statement