Published by Oxford University Press, the book sees Retailing as part of a value-delivery process of a company, and also addresses Retailing as an emerging business in itself. The book draws on over a decade of research by Prof Sinha and his co-author. Prof Sinha, who is the Chairperson of Center of Retailing at IIM-A, has written several important cases on the subject. Some of these cases like FoodWorld and Planet Health form part of the book.
The book, divided in 15 chapters, is structured along the retailing decision process. While the initial chapters are give an overview of industry in India and other developed markets, the book comes alive after the initial from Chapter 5. This chapter discusses Retailing Formats available to retailers. It classifies retail formats into store-based formats and non-store bases formats and offers a framework for choosing the right format. Chapter 6 explains the process of identifying location, Chapter 7 discuses how category management helps retailers to provide right product mix at right price, and Chapter 8 is based on supply chain management. Another Chapter 10 goes into great details on the topic of Retail Layouts. Retail communication, pricing, customer loyalty are other topic discussed in great detail.
Managing Retailing is certainly a book that academicians, executives and students, who are keen to learn about frameworks and retailing process, will do well to browse.
To delve deeper into the retailing sector and the focus of book, MBAUniverse.com interviewed author Dr Piyush Kumar Sinha. Dr. Sinha joined Indian Institute of Management, Ahmedabad after a 20-year service in academics and industry. Prior to joining this Institute, he was the Dean at Mudra Institute of Communications, Ahmedabad (MICA). He has also taught at the Indian Institute of Management, Bangalore and XIM, Bhubaneswar. During his tenure in the corporate world he worked as a Marketing Manager for Gujarat Gas and Rasna, a popular beverage. His areas of research include Retailing; Shopping; Point of Purchase Communication, Strategy Formulation for Media.
Excerpts from the interview:
Q: What is the central thesis of your book?
Prof Piyush Kumar Sinha (PKS): The central theme of the book is that Retailing is about delivering value to customers in a manner that all those involved in the value delivery process also gain. Every retailing company, be it a retailer or a brand owner, needs to understand this process. Also retail is not just distribution; for the retailer, it a business that needs to be run profitably and efficiently. Therefore, the manufacturer or brand owners should not take their interaction as a Principal-Agent relationship. Rather it is a B2B relationship and only when both parties work together, customers, and in turn the companies, would derive good value out of it.
Q: What lead you to write this book on the fast growing sector? How long did it take?
PKS: I have been teaching and doing research on retailing for more than seven years now, after practicing it for about five years. There has been a distinct need of a book that took a decision making, managerial view of the retail business, and not the distribution perspective, especially in Indian Context.
It took me two years to write this book.
Q: According to your research, what is the size of the Indian retail industry and where is it headed?
PKS: It is one of the largest ‘industry’ and would continue to grow. The phenomenal GDP growth of the country would only help increase the size.
Q: How would you classify the Retail players in India?
PKS: I would not classify them as organized or unorganized players. Rather they can be classified as new format and traditional format and price vs. non price formats leading creating a matrix.
Q: What impact will organized Retail have on Indian market and society in foreseeable future? Do you see a fundamental impact on thinking and consumption pattern?
PKS: There is definitely an impact on the way customers have started buying. For instance, they have become more variety seeking due to accessibility to range that they did not have in a traditional kirana or over-the-counter shops. Also now they are choosing stores based on several other factors than just convenience or merchandise. Quality products start getting available at much better prices and customers tend to become more discerning, pushing companies to think more for the customers not just of the customers.
The society at large also gains due to a large number of opportunities created for small and medium enterprises that support the value chain of retailing. These include, besides those employed by a retailer or running an enterprise in retailing, all those involve in logistics, distribution, warehousing, IT, design and other professional consulting, data analytics, manufacturing, especially of private and local brands, as well as management consulting.
However, I wish the retailers and the manufacturers also change in the way they sell their merchandise. In my opinion they still use the same old tricks in luring customers. So while customers are changing the way they are buying, I do not know if selling practices have changed so much. Till that happens, the impact on the market would only be superficial.
Q: What is the estimated demand for talent in Retail industry in India?
PKS: The figures are astronomical. Retail, worldwide, has always been one of the largest employers. The demand is only going to increase.
Q: How should a management graduate evaluate Retail Industry as a career option?
PKS: I will advice them to see Retailing as a business and not as distribution system. Hence all the functions of managing a business apply to this sector too.
Q: What future trends do you see in the world of Retailing in India?
PKS: The industry is witnessing euphoria. The Big Bang has happened. I would wait for the dust to settle before we could see some order in this chaos. Several business models are being tried. The tact lies in finding out now who would remain as Abhimanyus and who would turn out to be Arjuns.
