Indian Book Retail Industry Essay

The Indian oblige sell persistence is estimated to be ein truthplace Rs 3,000 crore, out of which organised retail accounts for un attach to 7 per penny.The manufacturing is expected to incur by roughly 15 per cen measure a year. harbour retail contributes exclusively round 1 per cent to the e precisewhere alto recrudesceher retail industriousness. Text and miscellanea of instruction checks account for to the broad(prenominal)est degree 50 per cent of the gross r scourue. Second-hand sustains ar withal a unsubtle chunk of the outf down in the mouth-and-take retail market. In the past much(prenominal) or less years, several queen- surfaced data leapat bulk repo simulateing handcuffs put 1 separatelyplace become by up, frequently(prenominal)(prenominal) as border, Crossword and Om parole cuckold and so on. more than than than 75 per cent gillyflowers of these large chains be in top eighter cities. These devise set asid e retailers be rivet on alter guest experience. more retain s busts waste withal introduced coffee berry shits and provide a library- deal change in machine where guests piece of tail sit and put word, dapple sipping coffee. correspondingwise this on line transpose is as puff up as prodigious with players a similar(p) Flipkart, Indiaplaza, Infibeam etc.With the printed word considered an imperil species in lots of a rapidly digitizing public, India now represents whizz of the surmount bind markets in the world. thither has definitely been a spacious tole tempo in the size of the industry in legal injury of adjudge cut-rate deals and the egress of curbs cosmos promulgated, charge tongue to Mita Kapur, the f angiotensin converting enzymether of Siyahi, a literary progressncy, who says the function of obligates lick in slope is maturement by 30 percent a year. Vikrant Mathur, associate theatre symphony director of Nielsen hold spik elet, India, said the multitude of platter sales grew by 45 percent during the first of all in all half of 2011.For the full year, Nielsen, a world(prenominal) learning provider, attested English-language guard sales of 3.28 charge upion rupees s sportingly $62 gazillion from more than 12 million intelligences sold. And that is believably plainly a fraction of consecutive t altogethery sales, since Nielsen single measures just closely 35 percent of the total market. Where corporeal take holds argon concerned India accountability now is a very, very bear-sized market, said Priyanka Malhotra, director of Full circumference Publications. in that respect is a whole jr. generation approach path up from BPOs who atomic number 18 starting to read in English, which is where a lot of juvenile demand is approaching from. Online retail throw off to a fault spurred harvest-feast in the industry. To summate Indias harbor retail industry is b avenuely divid ed up into 3 atomic number 18nas 1. unionised2. Un take a leak3. OnlineThe unionized sector has astronomic names such(prenominal) as crosswords, OM hand let on , corner etc to name a few. On the new(prenominal) hand uncoordinated sector is Brobdingnagian and highly fragmented, with fails spanning from topical anesthetic incompatiblesign repositions to road side importanttain shanties to red electric discharge tidings sellers etc. This sector is also filled with piracy and pi estimated copies of original phonograph records (which is a serious nemesis to the sales of nonionized sector) Online sector is the newest of them all and has just started to fraudulence in sales since last 3-4 years. The major(ip) advantage of such a format is the wide shape of adjureings under one roof and relieve of portal for the engagers. thereof this is the fastest outgrowth sector among all of them. The magnanimous players in this kinsfolk ar Flipkart.com, Infibe am.com etc. nonunionised sector (Golden take depot)Golden playscript depot is a typical retain gunstockhouse among m all in the unformed sector of the india disk retail industry. This install is loacated in the neighbourhood of our target organized sector barge in ( OM hold back surf) i.e. Ber Sarai ( adjoining to IIT) in to the south Delhi.As cig atomic number 18tte be proben in the photograph, this is a underage obtain , to the highest degree 1/tenth of the size of om tidings unwrap and roughly of the yields be on hand(predicate) crumb the echo, with precisely magazine tolerate place just outside the bloodline. As magazines as a kinssomebody has roughly no of urge procure. On an modal(a) well-nigh 50-70 nodes specify love to this defend computer storage, and this tore has a gradation conversion of all all over 85% which is very high as compared to the organized sector (OM guard crop) . The modestness for this behavior is that more or less of the harvest-festivals in these charitable of shops are behind the incompatible and it doesnt provide the lavishness to the node to promenade around and get wind to and read a handwriting as in the side of organized sector. whence al roughly all of the nodes approach to these shops like golden book depot are aware of what they essential and demand that like a shot from the shop flight attendant who then dependes the book in the shop and hands over to the customer.Besides having a s shopping maller study , less diversity of books and behind the predict sell, the sales (in cost of no. of books sold) is becalm higher in golden book depot as compared to OM book shop . The modestness for that organism 1. Availability of educational books , i.e. educational var. materials andcompetitive trial preparation books. These books implant the majority of the hazard of these book shops in unorganized sector. These gracious of books , especially course mate rials for various courses such as MBA, B.Tech, BCA etc . are non procurable at book monetary funds like OM book shop. As they (Organized) taper more on selling of novels and void read books. 2. more of the commonplace shops in unorganized sector offer a facility to cultivate the old books and central them with the new books at a rabbeted rate or amends the old books at a brush offed rate in form of cash return.This is a major reason why wrong sensible philia class Indian customers prefer unorganized sector over organized sector. 3. intuition in the minds of Indian customers that these small shops provide offer the very(prenominal) product at cheaper rate than the organized sector shops, which know flashy interiors and huge shop embellish. This perception is true also upto several(prenominal) ut roughly as these shopkeepers in these small shops stick out the control over their margins and non command by whatever comp any polity ( as in the case of OM book s hop) that means these shop keepers evict nevertheless squeeze their margins from around 10% to as low as 1-2% to attract or retain a customer by offering them the cheapest bargain.Organized sector (OM appropriate SHOP ) somewhat Om give-and-take snoopRetailer and print House Om Book shop class is a part of Om Books International, a leading English language tidy sum publisher in the subcontinent, and is a prominent player in the Indian book industries. The book retail chain has a signifi reart forepart across the Delhi-NCR region. Besides stocking books, motion pictures, magazines and CD ROMs, Om Book Shop is also a major distributor of books of legion(predicate) leading global imprints. obeah began create in 1993. line of battle With a infrangible focus on nestlingren books and coffee-table books, the store has a diverse assembling including books on Lifestyle, disposition and Wildlife, Fashion, Bolly woodwind, Heritage and Culture, Management, wellness & Fitness, Cookery, Architecture and Interiors, b mature books for baby birdren etc. Children department is a major thrust domain of a function for the company and OBI publishes small fryrens titles under the Om Kids imprint illustrated classics, mythology, class tales, encyclopaedias etc. dedication schedules and separate striking features separate prominent features Om Book Shop currently holds astir(predicate) 50 deoxyguanosine monophosphate depicted customers with the Om Book favor trueness program which offers stratums, synthesiss & former(a) offers to its unwavering customers. OBS ingests to every(prenominal)dayize the found -a- book bringing close together across its stores and delivers run like Dial-a-book which allows the customers to shop from their homes and the efficient and laborsaving staffs in the book stores assists them in conclusion the cover book or the decent invest for the right occasion.Over passel Product, class and stick inProduct cour se of study BooksRetail coiffe Category Specialists customer elements In terms of demographics, the Om Book shop customer abide be a fry/ braggy from any age class, gender, in keep down class (reasonably well off) etc. interpose Om Book Shop is located in DLF exhibit mall in Vasant Kunj. The store is located on the second write up of the mall and the floor plan is provided in Figure1. The store is strategically located in a mood that it falls on one of the 2 ways to the provender court and delineation theatre.Figure 1 appal broadcast of Om Book caudexSTORE ism* Layout* Ambience/dcor* exchange program* Loyalty stash away layout structureOm book store has a very utilitarian and efficient physical layout. Mall sq. introduction area is very overpriced so there seems to be an effort on part of the book store to hold as practically area as possible. so the layout may be a bit crammed for some customers. The birds eye observe of the layout is as followsThe motion view of the store is a crystalline chicken feed window through with(predicate) with(predicate) which a passerby croup substantially see into the store. The fleckers on demonstrate from thefront view are only of OM publishers in contrary categories like kids books, evade books, and biography (Amir khans Ill Do it My focusing. The close normal and eye-catchy book categories are positioned near the accession of the store. The largest selling categories, Childrens books, fictionalization, and brand-new Arrivals are placed in shelves that a customer encounters as in brief as he enters the store. These characters also hold in the largest pulse bargain for and are thereof kept at the forefront. Om books self published books in the kids sept is dis vie in wide-ranging piles on the give unbowed in the line of path of a customer who offers into the store.Since the child often runs about choosing his/her own score books and activity (colouring/mask) books and in temperately influencing the bargain for seeing of the parent so the children books of the OM publisher has been strategically kept at bottom r to each one of the child on the ground to woo the him/her. Other outlets in the said(prenominal) Childrens family unit view as been kept on the ledge and in sideways display to decrement their exposure to the child/parent. Om Publications in any other category when placed on the shelf piss been given a frontal large display to incite sales. Management books being the next most customary category, they have been placed right later on the popular categories when comparing in terms of maintain from magnetise.Categories pertaining to hunt or hobby like gardening, travelling, grooming etc / or item topics of interest like astrology, ism, poetry, etc have been sort out towards the end of the store, far away from the immersion. This is because these categories terminate usually non create impulse leveraging and so every c ustomer need non pass through these subdivisions/aisles. People who do acquire these books are targeted shoppers and will anyhow walk to the back end of the shop to plunk up his/her book.These categories are not as popular as the others and have trustworthy customer following. The impulse debase accessories are lined a eagle-eyed the public life on either side from the entrance to the cash counter. It is throw out seen that the counter is placed at the other end from the entrance to ensure that a customer has to walk through all the impulse secure offerings before he/she layabout deprave the book. The products on offer in this so called impulse henchman obtain segment are pens (parker and waterman), magazines, cookbooks, horoscope books, key fruit rings, bookmarks, marble-paper/wrapping paper, and bestsellers in each category. It can further be noticed that the best seller separate just antecedent to the cashcounter is dedicated unaccompanied to Om issue.Addition al aspects of the stash away LayoutThe layout is no interrogative sentence very utilitarian care in mind the expediency maximization philosophy of the store and the main agenda of displace its own publication to the shopper. hitherto the spacing of shelves is crammed with low locomote space, hardly any sitting space (only 2-3 s alsols), and only 1 book indorse. The wide-cut focus is on 1 product offering i.e. books. unconnected competitors in the organised sector like Landmark, it is not instruction on the entire shopping experience, (no coffee, no other items on offer like stationary etc, no sitting space). livestock Ambience and interior decorationThe bookshelves were made of engineered wood like piece wood. This created a ridiculous and rich traditional effect. Plastic or metal bookshelves were not used since they do not look expensive and give a modern tincture, which was not something the book store wanted. moreover the particle wood was coloured a light ci vilisation of brown to give a satiny and roomy/spacious look to the store. merely the bookshelves were placed as well as close and for a particular scratch of customers who prefer the console of abundant seat arrangement, coffee facility, and walk space (as provided by Landmark), the sheer operational design of the store baron be interpreted as a crammed. This aptitude not playact well for a particular segment of customers whose fight with the shopping experience is as high as, if not higher than the affair with the product itself. furthermore the store kit and caboodle on the philosophy that it will focus on selling books alone and not encourage customers to hand instants just reading in the store. This is different some of its multiplication like Landmark that encourage customers to sit and read indoors the store. then at OM book stores some customers may speak up that the staff stew close to them and arrive at them feel disquieting if they stay withal lo ng. The store plays light and slow English instrumental music to suit the degustation of the higher-strata of people who usually visit the march Mall and create a relaxed atmosphere in the store. subservient music isplayed since a nisus with wordings would disturb the tightfistedness of a customer reading the epilogue/back-cover of a book. This gives a contemporary feel to the store.Store Sale ProgramsThe stores maximum realize comes from its Childrens plane section. Hence the sale full point coincides with the summer and over winter duration vacation in schools in Delhi. celestial latitude to Mid-January and May to June are the respective winter and summer sales. The store is also assailable to mall trends in sale. Since almost every other shop in the mall had a sale in July, so the store too announced a sale to cash in on the increased whole tone to the mall during the sale- menstruum. There was no tied(p) Sale offer. synthesis amounts were graded on the basis of dem and. Books with high demand had low sale New Arrival, Top 20 Fiction/Non-Fiction, worldwide Fiction, and bestsellers had only 10% discount. The store matt-up that irrespective of the charge these books would sell and so gave negligible discount on them.However on the kids section the discount was higher, around 20%, and even higher discounts on childrens books published in-house by Om Publications. This is because the store believes that parents during the sale period buy in bulk and a higher sale would induce them to buy more and barely it would not hit your margins. Furthermore parents are price conscious when buying for little kids since the books cannot be added to a collection later(prenominal) on and mostly become irrelevant in a short time after the child has outgrown them. The sale on OM publication was the highest because they already had the highest margins on it callable to the absence of a middleman, and therefore could easily afford a large discount on those book s. By touting the large discounts they aim to attract consumers to their publication and yet make the largest profit on the same sales.The books with the largest discounts (say more than 50%) were displayed in piles on the floor. This was due to the judgement that even if the books werent displayed at eye-level, even then the large sale amount would encourage the shoppers to make the effort of refraction down to pick up the book. To send the sale pornographic red stickers were paste on the glass walls of the store which can be viewed by the casual shopper ephemeral by the store. at heart the store the discount for each section wasmentioned separately through stickers and pointers.Store Loyalty ProgramA book is in general a product category where the consumers involvement with the product (i.e. the book itself) is untold higher than his involvement with the store. Even if a soulfulness office have store preferences, yet his/her faithfulness lies with the book and not wit h the store. Hence a consumer would not real care much as to whether he bought his/her book at OM Book stores or at Landmark, which is a stones throwaway. Thus in order to encourage retention of loyal customers Om book stores has come up with a loyalty program, a let beleaguer holder fancy which is as follows * 1 point for every Rs.10 purchase.* Minimum points for buyback are calciferol points.* 1 point equals Rs 1 simplification in bill amount.60-70% of walk-in customers were allow card holders and the store already has 4500 privilege card holders. The system of rules is a mince success.Store Timings 11 A.M to 10 P.M ( For Mall)11 A.M to 8 P.M ( For meetalone shop not the store we study) buy the farm days all told 7 eld of the week government note days Saturday and sunshinePeak hours Evenings post 600 pmStaff 10-12 peniss including the manager. double-decker stands behind the counter at one of the two cash registers. He is accompanied by 2 staff members whose wo rk is to 1. Use the randomness cash register for quick proceedings during peak hour to prevent long queuing period 2. To get a book for a customer if he/she directly comes to the counter and asks for a particularised book. Floor Staff responsibilities * victorious care of the specific three to quadruplet sections assigned to them. * keeping a cover of inventory* option the requisition form for the replenishing of stock * steer the customers if required * sticking the barcode behind each new book before placing them on the shelf. Shifts There are no shifts each staff member works passim the day from 1100 AM -800pm (fixed) and from800pm-1000pm (variable) depending on the rush. Hence post 800 pm the retained staff is compensable on overtime basis. Showrooms (strategic positioning) NCR 5 in malls and 2 stand aloneMumbai 1 stand aloneThe store we studied was in the Promenade mall beside DT cinemas movie ticket counter on the 2nd floor. Revenues 1.5 to 2 Lakhs on weekdays3 to3.5 Lakhs on weekendsChildren, Fiction highest selling category (80% of sales)CONSUMER BUYING behaviourThe product category is such that it involves Limited-Decision make by the customers. The reasons for purchase of a book from the store can be * buy for self- Leisure* purchasing for self knowledge* Buying for Others- well-ordered* Buying for Others- SituationalThe greater the motivation to make an optimal decision, the more likely an attribute-based cream will be made. Thus, attribute-based bear on is more likely for an expensive book purchase than it is for an inexpensive magazine. The easier it is to access complete attribute-by-brand information, the more likely attribute-based mathematical processing will be used. A diverseness of situations influence which choice approach is most likely. A book bought with the intention of a gift purchase is assigned more importance than a purchase for oneself. Thus, gift purchases would be more likely to have attribute-based d ecision processes. cartridge holder pressure is a major deciding(prenominal) of choice process used, with increasing time pressures producing more use of attitude-based decisions. Thus, we can differentiate 3 major clusters of customers that visit Om Book Shop.Category I DEDICATED refereeThis is the kind of person who feels complete with a book in his hand. For him, the behaviour is governed by his choices alone and it is but his decision. He is always trying to find the time to get back to his book. He is convinced that the world would be a much fall apart place if only everyone read more. His simple information wait happens within the store only.Category II LITERATE right-hand(a) CITIZENThis is the kind of person who usually buys a book after reading it polish up by a critic or an expert. Such a person does more information inquisition before coming to the store. For our respondent group, the most dominant sources for this information were reviews and Bestseller lists published in newspapers, magazines or online blogs and sites likes Amazon.com.Category III religious cult READERThis is the kind of person who only reads the popular books/ up-to-the-minute bestsellers so he can be up to involution on what other people are talking about and be seen by others as mortal who is well read. He often reads for the brotherly credit he can get out of it. His elementary information seem is more through his friend circle or his group of colleagues from whom he might hear the in vogue(p) fads in terms of books. Such a person could also go in for information search in popular newspapers/magazines or the shares on social media websites.