1

1. INDUSTRY PROFILE
2
1.Industry Profile
Indian Retailing:
Retailing in India is one of the pillars of its economy and accounts for
about 15% of its GDP.
The Indian retail market is estimated to be US$ 450 billion and one of the top f
ive retail markets
in the world by economic value. India is one of the fastest growing
retail markets in the world,
with 1.2 billion people.
India's retailing industry is essentially owner manned small shops. In
2010, larger format
convenience stores and supermarkets accounted for about 4 percent of t
he industry, and these
were present only in large urban centers. India's retail and logistics
industry employs about 40
million Indians (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment
(FDI) in multi-brand
retail, forbidding foreign groups from any ownership in supermarkets, convenienc
e stores or any
retail outlets. Even single-brand retail was limited to 51% ownership and a bure
aucratic process.
In November 2011, India's central government announced retail reforms f
or both multi-brand
stores and single-brand stores. These market reforms paved the way for
retail innovation and
competition with multi-brand retailers such as Walmart, Carrefour and T
esco, as well single
brand majors such as IKEA, Nike, and Apple The announcement sparked inten
se activism, both

in opposition and in support of the reforms. In December 2011, under

pressure from the
opposition, Indian government placed the retail reforms on hold till it reaches
a consensus.
In January 2012, India approved reforms for single-brand stores welcoming anyon
e in the world
to innovate in Indian retail market with 100% ownership. Indian government c
ontinues the hold
on retail reforms for multi-brand stores.
Organized retailing, in India, refers to trading activities undertaken b
y licensed retailers, that is,
those who are registered for sales tax, income tax, e t c .
These include the publicly- traded supermarkets, corporate-backed hyperma
rkets and retail
chains, and also the privately owned large retail businesses.
3
Unorganized retailing, on the other hand, refers to the traditional fo
rmats of low-cost retailing,
for example, the local mom and pop store, owner manned general stores,
paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc.
Organized retailing was absent in most rural and small towns of India in 2010. S
upermarkets and
similar organized retail accounted for just 4% of the market.
Background of Indian retailing:
Most Indian shopping takes place in open markets or millions of small, independe
nt grocery and
retail shops. Shoppers typically stand outside the retail shop, ask for what the
y want, and cannot
pick or examine a product from the shelf. Access to the shelf or product storag
e area is limited.
Once the shopper requests the food staple or household product they a
re looking for, the
shopkeeper goes to the container or shelf or to the back of the store, brings it
out and offers it for
sale to the shopper. Often the shopkeeper may substitute the product, claiming t
hat it is similar or
equivalent to the product the consumer is asking for. The product typically has
no price label in
these small retail shops; although some products do have a manufacture
d suggested retail price
(MSRP) pre-printed on the packaging. The shopkeeper prices the food st
aple and household
products arbitrarily, and two consumers may pay different prices for t
he same product on the
same day. Price is sometimes negotiated between the shopper and shopkee
per. The shoppers do
not have time to examine the product label, and do not have a choic
e to make an informed
decision between competitive products.
India's retail and logistics industry, organized and unorganized in combination,
employs about 40
million Indians (3.3% of Indian population). The typical Indian retail shops are
very small. Over
14 million outlets operate in the country and only 4% of them being larger than
500 sq ft (46 m
2

)
in size. India has about 11 shop outlets for every 1000 people. Vast majority o
f the unorganized
retail shops in India employ family members, do not have the scale t
o procure or transport
products at high volume wholesale level, have limited to no quality c
ontrol or fake-versusauthentic product screening technology and have no training on safe and
hygienic storage,
packaging or logistics. The unorganized retail shops source their produ
cts from a chain of
Middlemen who mark up the product as it moves from farmer or producer to the con
sumer. The
unorganized retail shops typically offer no after-sales support or serv
ice. Finally, most
transactions at unorganized retail shops are done with cash, with all sales bein
g final.
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Until the 1990s, regulations prevented innovation and entrepreneurship in Indian
retailing. Some
retails faced complying with over thirty regulations such as "signboard
licenses" and "antihoarding measures" before they could open doors. There are taxes for
moving goods to states,
from states, and even within states in some cases. Farmers and produc
ers had to go through
middlemen monopolies. The logistics and infrastructure was very poor, with losse
s exceeding 30
percent.
Through the 1990s, India introduced widespread free market reforms, incl
uding some related to
retail. Between 2000 to 2010, consumers in select Indian cities have
gradually begun to
experience the quality, choice, convenience and benefits of organized retail ind
ustry.

Growth of Indian retailing:

Growth over 1997-2010
India in 1997 allowed foreign direct investment (FDI) in cash and car
ry wholesale. Then, it
required government approval. The approval requirement was relaxed, and automati
c permission
was granted in 2006. Between 2000 to 2010, Indian retail attracted about $1.8 b
illion in foreign
direct investment, representing a very small 1.5% of total investment flow into
India.
Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57
were approved
and implemented. For a country of 1.2 billion people, this is a very
small number. Some claim
one of the primary restraints inhibiting better participation was that
India required single brand
retailers to limit their ownership in Indian outlets to 51%. China in
contrast allows 100%
ownership by foreign companies in both single brand and multi-brand retail prese

nce.
Indian retail has experienced limited growth, and its spoilage of food
harvest is amongst the
highest in the world, because of very limited integrated cold-chain and other in
frastructure. India
has only 5386 stand-alone cold storages, having a total capacity of 2
3.6 million metric tons.
However, 80 percent of this storage is used only for potatoes. The r
emaining infrastructure
capacity is less than 1% of the annual farm output of India, and grossly inad
equate during peak
harvest seasons. This leads to about 30% losses in certain perishable agricultur
al output in India,
on average, every year.
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Indian laws already allow foreign direct investment in cold-chain infra
structure to the extent of
100 percent. There has been no interest in foreign direct investment in cold sto
rage infrastructure
build out. Experts claim that cold storage infrastructure will become
economically viable only
when there is strong and contractually-binding demand from organized re
tail. The risk of cold
storing perishable food, without an assured way to move and sell it, puts
the economic viability
of expensive cold storage in doubt. In the absence of organized retail competiti
on and with a ban
on foreign direct investment in multi-brand retailers, foreign direct i
nvestments are unlikely to
begin in cold storage and farm logistics infrastructure.
Until 2010, intermediaries and middlemen in India have dominated the v
alue chain. Due to a
number of intermediaries involved in the traditional Indian retail chai
n, norms are flouted and
pricing lacks transparency. Small Indian farmers realize only 1/3rd of the total
price paid by the
final Indian consumer, as against 2/3rd by farmers in nations with a
higher share of organized
retail. The 60%+ margins for middlemen and traditional retail shops ha
ve limited growth and
prevented innovation in Indian retail industry.
Growth after 2011
Before 2011, India had prevented innovation and organized competition i
n its consumer retail
industry. Several studies claim that the lack of infrastructure and competiti
ve retail industry is a
key cause of India's persistently high inflation. Furthermore, because o
f unorganized retail, in a
nation where malnutrition remains a serious problem, food waste is rife. Well ov
er 30% of food
staples and perishable goods produced in India spoil because poor infrastructur
e and small retail
outlets prevent hygienic storage and movement of the goods from the farmer to th
e consumer.
One report estimates the 2011 Indian retail market as generating sales
of about $470 billion a
year, of which a miniscule $27 billion comes from organized retail such
as supermarkets, chain

stores with centralized operations and shops in malls. The opening of

retail industry to free
market competition, some claim will enable rapid growth in retail sect
or of Indian economy.
Others believe the growth of Indian retail industry will take time, wit
h organized retail possibly
needing a decade to grow to a 25% share. A 25% market share, given
the expected growth of
Indian retail industry through 2021, is estimated to be over $250 billion a ye
ar: a revenue equal
to the 2009 revenue share from Japan for the world's 250 largest retailers.
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9
1
w
e
The Economist forecasts that Indian retail will nearly double in economic val
ue, expanding by
About $400 billion by 2020. The projected increase alone is equivalen
t to
market size of France.

The Indian Retail Market:

The current retail
Indian market has high complexities in terms of a wide geographic spread and dis
tinct consumer
preferences varying by each region necessitating a need for localizatio
n Even within the
Geographic zones. India has highest number of outlets per person (7 per thousand
) Indian retail
Space per capita at 2 sq ft
(0.1 percent is highest in the
world. 45 lakh (US$85,500).
Delving further into consumer
m
2
)/ person is lowest in the world Indian retail density of 6
.8 million households in India have an annual income of over

buying habits, purchase decisions can be separated into two

categories: status-oriented and indulgence-oriented. CTVs/LCDs, refrigerator
s, washing
machines, dishwashers, micro ave ovens and DVD players fall in th
e status category.
Indulgence-oriented products include plasma TVs, state-of-the-art home theatre s
ystems, iPods,
high-end digital cameras, camcorders, and gaming consoles. Consumers in
the status category
buy because they need to maintain a position in their social group. Indulgenc
-oriented buying
happens with those who want to enjoy life better with products that
meet their requirements.
When it comes to the festival shopping season, it is primarily the s
tatus-oriented segment that

contributes largely to the retailers cash register.

While India presents a large market opportunity given the number and
increasing purchasing
power of consumers, there are Significant challenges as well given tha
t over 90% of trade is
conducted through independent local stores. Challenges include: Geographic
ally dispersed
population, small ticket sizes, complex distribution network, and little
use of IT systems,
limitations of mass media and existence of counterfeit goods.
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1.1 Major Indian Retailers:
REI AGRO LTD Retail: 6TEN and 6TEN kirana stores
Future Groups-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fa
shion Station,
Brand Factory, Depot, aLL, E-Zone etc.
Raymond Ltd.: Textiles, The Raymond Shop, Park Avenue, Park Avenue Wo
man, Parx,
Colourplus, Neck Ties & More, Shirts & More etc.
Fabindia: Textiles, Home furnishings, handloom apparel, jewellery
RP-Sanjiv Goenka Group Retail-Formats: Spencers Hyper, Spencer s Daily,
Music World,
Au Bon Pain (Internaional bakery cafeteria), Beverly Hills Polo Club
The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Lan
dmark, Titan
Industries with World of Titans showrooms, Tanishq outlets, Croma.
Reliance Retail-Formats: Reliance MART, Reliance SUPER, Reliance FRESH,
Reliance
Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Relianc
e Trends, Reliance
Autozone, iStore
Reliance ADAG Retail-Format: Reliance World
K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit Mall
Nilgiris-Formats: Nilgiris supermarket chain
Marks & Spencer: Clothing, lifestyle products, etc.
Lifestyle International-Lifestyle, Home Centre, Max, Fun City and Inter
national Franchise
brand stores.
Pyramid Retail-Formats: Pyramid Megastore, TruMart
Next retail India Ltd (Consumer Electronics)(www.next.co.in)
Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre,
Viveks Safe
Deposit Lockers
PGC Retail -T-Mart India [1], Switcher, Respect India, Grand India Bazaar,etc.,
Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain.
Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain
Vishal Retail Group-Formats: Vishal Mega Mart
BPCL-Formats: In & Out
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German Metro Cash & Carry
Shoprite Holdings-Formats: Shoprite Hyper
Paritala stores bazar: honey shine stores
Aditya Birla Group - "More" Outlets
Kapas- Cotton garment outlets

Nmart Retails with 71 operating Stores till now and total 153 Stores in India a
nd 1 to open in
Dubai Shortly. (Expected to be 150 by the end of Aug-2012)

2. COMPANY PROFILE
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2.Company Profile
Background and inception of the company:
About Reliance Group
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is Ind
ia s largest private
sector enterprise, with businesses in the energy and materials value c
hain. Group s annual
revenues are in excess of US$ 58 billion. The flagship company, Reliance Indu
stries Limited, is
a Fortune Global 500 company and is the largest private sector company in India.

Dhirajlal Hirachand Ambani (1932-2002)

Founder of Reliance Group
Backward vertical integration has been the cornerstone of the evolution and grow
th of Reliance.
Starting with textiles in the late seventies, Reliance pursued a strat
egy of backward vertical
integration - in polyester, fibre intermediates, plastics, petrochemicals, petro
leum refining and oil
and gas exploration and production - to be fully integrated along the materials

and energy value

chain.
The Group s activities span exploration and production of oil and gas,
petroleum refining and
marketing, petrochemicals (polyester, fibre intermediates, plastics and chemical
s), textiles, retail,
infotel and special economic zones.
Reliance enjoys global leadership in its businesses, being the largest
polyester yarn and fibre
producer in the world and among the top five to ten producers in th
e world in major
petrochemical products.
Major Group Companies are Reliance Industries Limited, including its subsidiarie
s and Reliance
Industrial Infrastructure Limited.
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About Reliance Retail Limited
Reliance Retail Limited is an organized retail arm of the Reliance In
dustries Limited. Reliance
industry is the largest conglomerate in India. It has an annual turnover
of US$35.9 Billion. It is
also listed on 206th position in the Fortune Global 500 companies.
Reliance Retail is actually the retail group of Reliance Industries Li
mited. It has a number of
brands like Reliance Time Out, Reliance Digital, Reliance Wellness, Rel
iance Autozone,
Reliance Super, Reliance Mart, Reliance iStore, Reliance fresh, Reliance
footprint, Reliance
Jewels,
Reliance
trends,
and
Reliance
living.

Reliance Group was established in 1970 s. The Reliance Retail was found in the
year 2006 as an
operating subsidiary. It has its head office in Mumbai, India.
Reliance is gearing up to revolutionize the retailing industry in India. Towards
this end, Reliance
is aggressively working on introducing a pan-India network of retail outlets in
multiple formats.
A world class shopping environment, state of art technology, a seamles
s supply chain
infrastructure, a host of unique value-added services and above all, u
nmatched customer
experience, is what this initiative is all about.
The retail initiative of Reliance
and spread and make India
proud. Ensuring better returns to
greater value for the
Indian consumer, both in quality
ature of this project. By
creating value at all levels, we will

will be without a parallel in size

Indian farmers and manufacturers and
and quantity, will be an integral fe
actively endeavor to contribute to India s

growth.
The project will boast of a seamless supply chain infrastructure, unpr
ecedented even by world
standards. Through multiple formats and a wide range of categories, Reliance is
aiming to touch
almost every Indian customer and supplier.
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About Reliance Digital
Reliance Digital is a Consumer Electronics, Durables, IT & Telecom ret
ail arm of Reliance
Retail Group, a subsidiary of Reliance Industries Limited hosts over 1
50 national and
international brands of electronic products. Reliance Digital Stores offer more
than 4000 types of
electronic products.
After a successful launch of Reliance Fresh stores across several town
s and cities in India,
Reliance Retail Limited unveiled Reliance Digital in the year 2007, its
pilot consumer
electronics concept mega store. The new destination for the latest in
technology and
entertainment products & services, and currently 58 Reliance Digital st
ores are operating in
India.

13
Nature of the business carried:
Reliance Digital Store is a one stop shop for different electronic ne
eds of all customers. May it
be household appliances, computers, laptops, games or telecom products;
customers can find
every gadget, for every budget at Reliance Digital. It has over 4000 products at
reasonable prices
for its valued customers.
Vision, Purpose, Values and Promises:
Vision
Reliance Digital seeks to fulfill the dream of every Indian, be it throug
h its nationwide network
of conveniently located stores or through its presence on the web, by
providing a delightful
shopping experience of products & solutions and helping them bring hom
e the latest & best in
technology from the widest selection at the lowest assured price with
complete peace of mind
through lifelong support.
Or more simply
We bring Technology to life for you
Purpose

Growth is Life
Bettering the lives of Indian everyday

Values
We believe in people
We believe in and follow the customer
We believe in the good of the community
We believe in each other
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Promises
A delightful shopping experience
A delighted community
A delightful place to work

Products/ Services Profile:

Reliance Digital The Merchandise Mix
Complete range of
Consumer electronics
Home appliances
Kitchen appliances
Computing & gaming
Personal audio
Mobile communications
High-end audio & home theaters
High definition flat panel televisions
Music and movies
Digital photography & photo printing
Accessories to enhance product usage & experience
And lots more!
More than 150 brands, 4000 products and countless
dles individually
recommended to best suit the customers needs.

solution

bun

Services
Reliance Digital reviews all its products to provide the best to its
customers. It has a specially
designed Experience Zones to get the real feel of the product before purchasing it
.
Reliance Digital provides financial assistance through easy EMI Schemes;
Company has
appointed Bajaj Capital to provide financial assistance to its consumer
s. Consumers have to
make 40% down payment and the remaining amount is distributed into 8 EMIs and i

nterest rate
varies from brand to brand products.
Reliance Digital has a ResQ facility, which serves the purpose of a
technical support team. It
comes to rescue to provide solutions for problems that customers may f
ace with products from
15
all leading brands. This facility is available 7 days a week; 365 days a ye
ar from 10 a.m. to 10
p.m. They have qualified engineers to deal with installation and to guide you
with the usage of
the appliances.

ResQ services are Product installation: ResQ help to set up customers product for optimum
performance

Specialised customer training:

Specialised training to customers on products and related applications
by an industry
trained personnel

Authorised Service Station for diagnosis and repairs (Caters to all b

rands)
One stop solution for repairs for all brands products
Repairs covering both pre and post manufacturer warranty periods
On-site service for select products for the rest, our engineers shall transport
products to
and fro from the service station
Demonstrate Product Usage:
Live demonstration of all features of the product
Provide handy care tips
16

Health check-up plan: Preventive Maintenance

To ensure that products do not malfunction, resQ
c services and
maintenance check-ups
Tips on upkeep of products for optimal performance
Also covers products not purchased from Reliance Digital

offer

periodi

Enhanced Utility: ResQ Accessories

ResQ offer a host of utility products and accessories that are compatible with
products &
help customers get more of them!

Extended Warranty Service- ResQ Care Plan

Free repairs, including both parts and labour
Free preventive maintenance visits during plan period

Area of operation National:

Reliance Digital is a Consumer Electronics, Durables, IT & Telecom ret
ail arm of
Reliance Retail Group, a subsidiary of Reliance Industries Limited, and
currently 58
Reliance Digital stores are operating in India and 9 stores are operating in Ban
galore.
17
Ownership pattern:

Reliance Industries Limited

Refining Textiles Retail Petrochemicals Polyester &

Fibre
Intermediates
Petrochemicals
- Polymers
Reliance
Gas
&
Reliance
Aviation
Vimal
Vimal Gifting
&
V2 Vimal
Reliance Digital
Reliance fresh
Reliance footprint
Reliance Jewels
Reliance trends
Reliance
Petroleum Retail
Roxy
Office Depot

GAPCO
And many more

Recron Stretch
Recron Cotluk
Recron Dyefast
Recron 3s
Recron LP
Relpet
And many
more
Repol
Relene
Reon
Cisamer
&
Relab

Reliance industry is the largest conglomerate in India, having number

of brands with
the
different businesses. The ownership pattern of Reliance Digital can be
explained as - Reliance
Industries Limited has different subsidies; Reliance Retail Limited is
one among the subsidies
and under which Reliance Digital is one of the Retail Business of Reliance retai
l.
Reliance Digital or the Reliance Retail Limited has not listed in sto
ck market individually but
Reliance Industries Limited (RIL) as whole listed under stock market wh
ere all the subsidies of
RIL is considered to be a group and listed in the stock market. Hence Reliance D
igital is a Public
Limited Company and Mr. Mukesh D. Ambani is the Chairman and Managing
Director of
Reliance Industries Limited.
18

3. COMPETITORS
19
Competitors Information:
Croma
Croma is Indias first national, large format, specialist retail chain for consume
r electronics and
durables.
Croma is promoted by Infiniti Retail Ltd, a 100% subsidiary of Tata S
ons. Woolworths, one of
the worlds leading retailers, provides technical and strategic sourcing support,
ensuring that you
buy nothing but the best.
Croma s first store opened on October 9, 2006 at Juhu in Mumbai, and it s rollin
g out many more
stores across India.
Brand Philosophy
If service wasn t important.
If technology wasn t complex.
If variety wasn t confusing.
We would have no reason to be in business.
We help you buy.
eZone
eZone is an experience-led lifestyle format that brings together the b
est in national and
international consumer electronic and durables brands in a family-centric enviro
nment. Typically
covering 12,000 square feet, an eZone store truly enables you to experi
ence electronics through
three dedicated zones - Liberation Zone, Experience Zone and Home Zone.
The Liberation Zone offers personal products like computers, laptops, handy cams
, MP 3 players
and mobile phones. Entertainment products such as Plasma / LCD, Flat
TVs, Home Theatre
systems, DVD players, and Stereo systems are displayed in the Experien
ce Zone. In the Home
Zone segment, one gets to pick electronic goods of his or her choice including R
efrigerators, AirConditioners, Washing Machines and Microwave ovens among other kitchen-related a
ppliances.
eZone also offers an unparalleled service and support through the spec
ial E-Care customer
support centre. E-Care is a special, dedicated support system designed to offer
the best customer
service after purchase of any product at eZone.

20
Others
There are other unorganized consumers electronic and durables brands such as Pai
International,
Girias and Harsha Electronics are operating in Karnataka and some othe
r states of the country
and these can be called as local market competitors but these brands are not to
be considered as
competitors for Reliance Digital Retail Limited.

21

4. INFRASTRUCTURE FACILITIES
22
Infrastructural facilities:
Planogram
Also known as plano-gram, plan-o-gram, and POG, planogram is a visual rep
resentation of a
store s products or services considered as a tool of visual merchandising in ret
ail store.

Signage
Signage is kind of visual graphics created to display information about products
to customers.
Experience Zones
Experience zones take consumers through a delightful and interactive vo
yage in the world of
electronics and durable goods. Crafted with the latest signage, audio
and merchandising where
customers can experience the products before purchasing.
Home theater experience zone
It is an exclusive experience zone in reliance digital store. It is
a small room arranged well
furnished with sound systems where consumers can experience the home t
heaters before
purchasing.
Play
Play
tore
have
23

station
station is advanced video gaming station where customers who visit the s
can play and
delightful shopping experience with reliance digital.

e
e
d
u
Learning Center
Learning center is training center that is located within the reliance digital s
tore where employees
are trained on the products thos
in the store.
arrived in the store and usually this center is sed for meetings

Work flow model:

The nature of the business is r
tailing hence the manufacturing of goods is not involved with
reliance digital instead goods are ordered and brought into stores for
the retail sales. The
numbers of products from the ifferent brands with different product ra
nges are recruited into
stores and further sales is made so the work flow model could be Op
erating Model and Stock
Ordering Process.

Operating Model
24
Operating Model Explanation
1. The operating model begins with Pre installation Counseling & quer
ies of customers
basically this happens though telephonic queries by customers or approach to kno
w about
product available in reliance digital and this step will supported by
resQ team. Usually
this will not be the initial step in most of the cases, customers direct
ly approach store to
know about the products.
2. The second step could begin the actual operating model because mos
t of the customers
first approach store and get to know details about their required product, when
customers
walk in to the store employees counsel the customers, attend their qu
eries and also
understanding their requirements they provide consultative solution to customers
and this
can be considered as beginning step of operating model.
3. After counseling and consultation when customer make the purchase o
f goods, delivery
of goods will be supported by Reliance D&L Team, team also help customer in exch
ange
and product pick-up in case of any replacements after sale of goods as post sale
s service.
4. When goods are delivered to customers by D&L team, reliance resQ
team helps
customers by Demonstration and Installation of product at customers place.
5. And after sales services such as extended warranty/maintenance and
repairs will be
supported by resQ team in the company.
6. And also replacement and up gradation of products will be supporte
d by resQ team and
further queries regarding products etc will handled by resQ team, with
this again
operating model may continues as discussed above.
25
g
a
o
g
e
Stock Ordering Process
Reliance Digital has classified electronics and consumer durable goods into four
departments as
1. Consumer Electronics
2. Home Appliances
3. Information Technology
4. Telecommunication
When the goods in the departments need to be ordered; each department

follow the following

procedure for ordering the stock.

Stock Ordering Process

Stock Ordering Process Explanation
1. Stock report of every product is verified regularly by all the departments.
2. In case there is no stock or less quantity in the stock for the products, st
has to be sent to the category department of respective section requestin

ck ordering mail
the list of goods
required in the department with the complete details such as Product,
Brand Name,
Article code and Quantity, and ordering mail should have store code.
3. Category department is central body present in the Mumbai
corporate
office, category
department place the order to respective Brands to deliver the goods
house of the state.
to central ware
26
4. Brand people deliver ordered goods to respective central ware house, central
ware house
become the distribution center for the stores.
5. Distribution center sends the goods to the stores those are ordered.
6. When the goods arrive to the store goods are received by material department
of store.
7. And finally goods are sent to the respective departments.
8. Each department has to update its stock report every day for the stock refer
ence and keep
follow up on stock level.

Future Growth and Prospectus:

At a time when inflation and high input costs are putting pressure o
n margins of retail
companies, Mukesh Ambani-led Reliance Retail expects its specialty and
value formats driving
the firms next stage of growth.
Reliance Retails value formats include Reliance Fresh, a neighborhood retai
l concept, Reliance
Mart, an all-under-one-roof supermarket concept, and Reliance Super, a m
ini-mart concept. The
value formats offer a wide range and assortment of products required for daily h
ousehold needs.
Its specialty formats include Reliance Digital, consumer durables and i
nformation technology
concept, Reliance Trends, apparel and accessories concept, and iStore b
y Reliance Digital, an
exclusive Apple products stores. Other specialty formats include Relianc
e Footprint for
footwear, Reliance Jewels, and Reliance Living, a home wear, furniture,
modular kitchens and
furnishings concept. Reliance Retail plans to double its stores across all forma
ts within next five
years. At present, it has more than 1,050 stores and a pan-India presence.
Reliance Digital Retail Limited will have 100 stores by the year 2014
in pan India. And also
company planning to provide financial assistance to the reliance digital custome
rs by the reliance
group as of now it has appointed Bajaj Capital for the financial ass
istance to Reliance Digital
customers.
27

5. STRATEGIES USED IN THE ORGANISATION

28

o
The McKensys 7S Framework

The McKinsey 7S model

The McKinsey 7S model was
named after a consulting company, McKinsey and Company,
which has conducted applied research in business and industry. The McK
insey 7S Framework
was created as a recognizable and easily remembered model in business.
The seven variables,
which the authors term "levers", all begin with the letter "S":
These seven variables include structure, strategy, systems, skills, styl
e, staff and shared values.
Structure is defined as the skeleton of the organization or the organizational c
hart. The authors
describe strategy as the plan or course of action in allocating resou
rces to achieve identified
goals over time. The systems are the routine processes and procedures
followed within the
organization. Staff are described in terms of personnel categories with
in the rganization (e.g.
engineers), whereas the skills variable refers to the capabilitie
s of the staff within the
organization as a whole. The way in which key managers behave in ach
ieving organizational
goals is considered to be the style variable; this variable is though
t to encompass the cultural
style of the organization. The shared values variable, originally terme
d super ordinate goals,
refers to the significant meanings or guiding concepts that organizational membe
rs share.
29
From above 7, three are called Hard S these are such as
Strategy
System
Structure
And other four are called Soft S, namely
Skills
Staff
Shared value
Style
McKinseys 7s at Reliance Digital
Strategy
Strategy is the plan of action an organization prepares in response to, or antic
ipation of, changes
in its external environment. Strategy is differentiated by tactics or

operational actions by its

nature of being premeditated, well thought through and often practically rehears
ed.
Reliance Digital routinely have different campaigning strategies for the
ir new products and to
move stock which offer exciting sales promotion offers for the custome
rs to persuade them to
know the product and purchase it. For e.g. During Christmas and New Year sale th
ey had up to
50% discount on products.
Reliance Digital uses display fixtures to communicate and educate custo
mer about the sales
promotion and they decorate the window areas with the products related to their
promotion.
System
The system that Reliance Digital has for its sale of goods is friend
lier and assists customer in
purchase of products. The procedure that they follow in Reliance Digit
al for sale of product is
initially when customers walk in to store junior sales associate welcome custome
r in to store by
greeting them and ask them how he can assist them, when customer ask h
im about his required
product junior sales associate takes customer to that particular department and
leaves customer to
Senior sales associate or Team leader to attend the customers, here t
he person attend customer
queries and explain about product features and benefits. And also cons
ult them to go for
30
Particular product. When customer makes purchasing decision the same person take
s customer to
cash counter to make bill of the purchased product and when customer
reaches cash counter
cashier at counter greet the customer and makes billing and keep the product in
Reliance Digital
carry bag and hand over to customer in case goods are heavy to carry
there are store boys who
help customer taking them out of store and keep the products in their vehicle an
d if the products
are huge in size they make delivery arrangement through D&L Team.
Structure
The design of organizational structure is a critical task of the top management
of an organization.
It is the skeleton of the whole organization. It prescribes the formal relations
hip among various
positions and activities.

31

6. STRUCTURE OF THE ORGANISATION

32
Organization Structure
33
Store Hierarchy

CMO Commercial Operations Manager

VM Visual Merchandiser
DM Department Manager

CE Consumer Electronics
Telecom Telecommunication
HA Home Appliances
IT Information Technology
TL Team Leader
SSA Senior Sales Associate
JSA Junior Sales Associate
MOO Material Operational Officer
MOE Material Operational Executive
CRM Customer Relationship Manager
SHE Senior Helpdesk Executive
JHE Junior Helpdesk Executive
34
Skills
Employees must have products knowledge and they should have skills to
persuade customer to
purchase product. At Reliance Digital Company provide training to the
employees on products
which help employees to make sale of product with their best knowledge of produc
t and skill. In
successive intervals the company sends mystery shoppers to stores to e
valuate the performance
of the employees and they rate the performance of employees in the s
tore and report to the
company if the training is required company arranges for it. And when
ever new product has
arrived to store they provide training on that particular product in the store l
earning center.
During the training conducted by the company they make sure that the
employees are aware
about the products information and also sales associates are given pro
per selling skill tips and
training on selling procedure.
Employees are also trained on how to greet and groomed to their best ability and
they are trained
to handle all minor issues encountered in the store.

Staff
Organizations are made up of humans and it s the people who make the
real difference to the
success of the organization in the increasingly knowledge-based society.
The importance of
human resources has thus got the central position in the strategy of the organiz
ation, away from
the traditional model of capital and land.
Reliance Digital has 58 stores in pan India and has got more than 1
000 employees working for
the company.
Shared value
We believe in people
We believe in and follow the customer
We believe in the good of the community

We believe in each other

35
Style
Reliance Digital has a very friendly environment for all the employees .The mana
gement follows
top/down and bottom/up approach. Where in top management transfers the informati
on from the
higher level to the lower level. The target and objectives are set b
y the top level managers and
are delegated to the lower level managers those in turn transfer to
Team leader and sales
associates in the store level, hence all the major decision are taken
by the higher authority and
shared to the lower level.
The lower level employees i.e., Team leader and sales associates revert back to
the daily reports
to the Department manager who in turn reports to the store manager and further s
tore manager to
his higher authority and it continues.
Every employee has a participative approach towards the business. Every employee
is concerned
with his Duties, Responsibilities and accountability for the happening
of the event and
employees have to report to their higher authority at regular intervals.
36

7. SWOT ANALYSIS
37
SWOT Analysis
Strength:
Brand Name Reliance - Reliance Industries Limited, is a Fortune Globa
l 500 company

and is the largest private sector company in India.

resQ Services - The dedicated service arm that is available for support all 365
days of a
year, from 10 a.m. to 10 p.m.
Network - Over150 international and national brands.
Private label sale Some of own products (Reliance Reconnect).
Product mix - One-stop shops for all technological solutions, it has over 4000
products at
reasonable prices.
Weakness:
Poor inventory control.
Inadequate human resources.
Operating costs are too high.
Opportunity:
Potential for investment.
High growth potential.
E-retailing.
Retail franchising.
Wholesale trading.
Threat:
Increasing competitors market share.
Price war with competitors.
Inflation.
Competition offered by Chinese products.
38
Analysis of Financial Statements
Reliance Digital Retail Limited Balance Sheet as at 31st March, 2010
39
Analysis:
Long term funds increase in 2010 compare to the year 2009. Share ca
pital remains
unchanged where Reliance Digital Retail Limited borrowed more funds in
the form of
secured and unsecured loans.
The investment in fixed assets is increased to 10448.63 lakhs in 2010 from 8509
.70 lakhs
in 2009.
The investment on current asset increased from 3989.34 lakhs in 20009 to 6790.1
0 lakhs
in 2010.
Interpretation:
The Reliance Digital Retail Limited investing more money in the form of fixed as
sets.
The current liabilities are not sufficient to meet the regular require
ments and also company is
using long term funds to finance current assets.
40

Profit and Loss Account for the year ended 31

st
March, 2010

The sale is increased from 31628.01 lakhs in 2009 to 41186.78 lakhs

in 2010. Though sales
has increased when comparative to last year the loss margin increased
in 2010 because of
increased in the operating expenses.
Reliance Digital Retail Limited should take measures to reduce operating expense
s.
41

8. CONCLUSION
42
Conclusion
Opting for internship at reliance digital was an opportunity for to u
nderstand the retail
industry and its nature of business. Understanding Retail management di
fference in organized
retail and unorganized retail was a huge scope for learning, the proc
ess and operation in
organized and unorganized retails has a lot of difference that could
able to compare in my
learning.
Using knowledge of Marketing and Retail Management that can be found how
practically the
strategies are implementing in organized retail and also it could be
find some areas of
improvement that can be done in the company.
Learning about merchandising and stocking in retail for the sale and motivating

sales team was a

good exposure. That could find the level of difficulty in convincing customers
and the pain that
sales team undergoes to make a sale of product.
Also it could be known that merchandising plays a vital role in attr
acting customers and
stimulate them to buy the product.
The flow of work and the organizational hierarchy from top level management to t
he store level
can be understand easily. And also it could understand the motivationa
l factors that make
employees to have job satisfaction in the organization.
Customers mentality towards promotional sales programme also led to unde
rstand that
people look for price prior to the quality or the actual product. Ov
erall exposure to Retail
Management was an eye opener to me as how business is carried out a
nd what all should be
considered for making sales and to have effective retail management.