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Types Of Retail Forms In India

In this term paper we study about different retail types prevailing in India and various ownership styles followed by these retail stores and after talking about all the aspects we find out whatever ownership style is useful for retailers and is also suitable for approaching retailers and also has future expansion.

We find out franchises is most beneficial form of possession. It turned mom-pop stores into planned form by giving franchises to the owners of the stores.


India is growing at a great rate and the retail sector is also producing with it. Big Indian business homes are getting into retail sector and are adopting various retail formats because of their business which can be best suited to them. We are able to divide Indian retail market in three varieties which are talked about below:

Store Retailers

Non-store retailers

Service retailers


Mom-and-pop Store

These are family had stores which provide small quantity of items or goods to the clients. They are separately run and focus on the smaller parts of the society. These stores provide high standard services. They provide home delivery and credit service without the interest to its customers.

Convenience Store

Convenience is offered in a lot of ways to the customers through easy to get at store locations and small store size that allows the customers to do quick shopping and fast checkout. The merchandise selection proposed by these sellers is very limited and the price tag on the products can be high.


Supermarket is another popular retail format in India. A supermarket is a supermarket which offers in food and household goods. They give a fairly huge range of products and self applied service. People usually go directly to the supermarkets to buy goods in large amounts so that they can stock those goods for later use. They provide products for reasonable prices and of medium to high quality.

Department Store

Department stores are grouped as general merchandisers. Some hold a more selective products. For instance, while Sears holds an array of products from hardware to makeup, Nordstrom concentrates their products on clothing and personal maintenance systems.

Category Killers

The niche stores are called Category Killers. These stores are specialized in their fields and they feature only one category of products. The most popular examples of category killers include wall-mart and electronic digital stores like Best Buy and athletics accessories stores like Athletics Authority.

Discount Stores

Discount stores offer price reduction

Discount stores offer price reduction

Discount stores offer product at lower price than market price. The main reason behind this good deal is the excess stock left over towards the end of any season. Discount stores sell their goods at a lower life expectancy rate with an aim of drawing bargain shoppers.

Mass Discounters

These are basic and niche store offering huge discounts on the merchandise to finish block stock and its small difference between discount stores and mass discounters is the fact that it provide reduced services to customers.

Warehouse Stores

These are the type of mass discounters that provide comparatively less price than the original mass discounters. In addition, these stores often requires the purchasers to make the purchases in quantities that are greater than what can be purchased at mass discount stores. These retail outlets provide few services and product selection can be limited.

The retail design and structure is really as the name suggests that is warehouse style with consumers often selecting products off the bottom from the shipment package. Some kinds of warehouse stores called warehouse night clubs require customers to acquire memberships to be able to gain access to the store.

Street vendors

The Street Vendors or hawkers who sell products on the avenues are very popular in India. They try to entice the customers' attention through shouting out about their product combine. Street vendors are located in almost every city in India and the business capital of Mumbai has lots of shopping areas which can be comprised mainly of street vendors. These hawkers not only sell just clothes and accessories but also local food.


Kiosks are box-like retailers which sell small and cheap stuff like cigarettes, toffees, newspapers and magazines, drinking water packets, tea and caffeine. These are most commonly entirely on every streets in a city and target primarily to the neighborhood residents.


Hypermarkets in India are a combo of supermarket and team store. These are large retailers offering all types of groceries and general goods. Big Bazaar and Reliance Fresh are hypermarkets that attract tremendous crowds.


Malls are the most significant retail format in India

Malls are the major retail format in India

These will be the largest retail format in India. Department stores provide everything that a person needs to buy under one roof structure. From clothes and accessories to food or cinemas, department stores provide all this, and more. Examples include Spencers Plaza in Chennai, India, Alpha one in Amritsar and Viva collage in Jalandhar.


Catalog Retailers

Retailers such as Lands' End and LL Bean have built their business insurance firms customers place orders after discovering products that come in a mailed catalog. Orders are then shipped by a third-party shipper.


Possibly the most publicized retail model to advance in the last 50 years is the

Retailer that principally markets via the web. There are a large number of online-only retail sellers of which Amazon. com is the most well-known. These retailers offer shopping convenience including being wide open for business all day, every day. Electronic digital vendors or e-tailers likewise have the ability to offer a wide range of product since all they actually need in order to attract purchases is an image and explanation of the product. That's, they might not exactly have to have the product on-hand just how physical stores do. Instead an e-tailer can hold out until an order is received off their customers before positioning their own order with their suppliers. This cuts down significantly on the cost of keeping products in-stock.


Vending machines is a computerized machine from where we can buy items like coldrinks, chocolates by throughing coins in it. Some individuals are well alert to vending machines allowing customers but newer devices are entering the market containing more expensive and bulkier products. These systems require the vending machine have either Internet or telecommunications access to allow purchase using bank cards.


Service stores are those which provide different services to customers.

Such as:


Individually Possessed and Operated:

This structure identifies single possession stores having one or more stores under it. Single ownership of shops most frequently occurs with small retail stores, though there are a few cases, for case in the automotive or furniture establishments, where single ownership involves very large outlets.


There are no restrictions on who, where and what type of business a person want to open. An individual can start any legal business without any problem.


Because of the decrease and flexibility to getting started, there can be a great deal of competition in a specific area for a certain type of customer. There is absolutely no branding, no preset recommendations and significant amounts of risk in this business model


Purchasing a franchise is purchasing the right to use a name, product, strategy and business plan. The franchisee will get a proven business design from a recognised business.


All of the business operation functions have been proven. The franchisee will get help from a network and customers already are familiar with name. Same marketing strategies are opted which are being used by other franchises. Most all the risk associated with starting a retail business has been reduced.


Franchisees pay a fee, or royalty, based on sales each year. Franchisee have large amount to spend to obtain a franchisee and there is absolutely no flexibility and independence allowed in this form.


Retailers may find the business style of a certified dealership as a mix of franchise and indie dealer. The licensee has the right (sometimes this is exclusive) to market a brand of products. Unlike a franchise, the supplier can sell a variety of brands and there generally no fees to the licensor. Dealerships may or might not exactly be discovered as a certified vendor or by the company's trademark.


There may be some branding or product name acknowledgement by the client. The dealership relation is much more versatile than that of a franchise. This may be a good business model for part-time sellers or those just starting in retail.


Dealer have to invest huge amount to obtain a dealership

Corporate String:

A retail string includes multiple retail outlets owned and managed by a single entity all executing similar retail activities. As the number of shops necessary to be labeled as a chain hasn't been given, we will assume that anyone owning more than five retail locations would be considered a chain.


If you are based in India and also have sufficient money to purchase a new business, then you must surely look at a good franchise business option. There are different types of franchise business in India that are greatly successful and looking for growth.

Franchising is about the most models of business seemed as a win-win model by both franchisor and the franchisee. Actually, this business notion is a great way of extending a proven business model by leveraging the resources and the organization of potential franchisees.

In truth, buying a franchise business in India is an improved option as compared to starting your own business from scuff. Today, there are different platforms where you can choose a franchise business. You can check out details in local magazines or see the Internet to look for information about companies or brands interested in expansion of the business. In fact, websites are the best ones to find information on find about best franchise business in India predicated on different categories. For example, if you are a person who is considering "Play University" business then you need to first find out all the available franchisors who would be allowing you to sign up for under them as a franchisee. Contact them and if indeed they find your proposal interesting, then you can become a part of their brand.

Remember, it's the imagine every company to increase their brand awareness and franchising is the ultimate way to do it. There are so many companies in India who have high beliefs in franchising notion and have used this concept to promote their brands. Aside from Indian companies, there are extensive International brands that contain pass on their business in different elements of India through franchising.

The franchising industry in India has thus become an important tool for all brands to woo the customers and increase their business territories.


franchise is a kind of channel in which one get together, the franchisor, manages the business activities of another get together, the franchisee. Under these agreements, an eligible franchisee agrees to cover the right to use the franchisor's business methods and other important business aspects, such as the franchise name. For example, McDonalds is a well-known franchisor that allows individuals to use the McDonalds name and methods to deliver food to consumers. Repayment is usually by means of a one-time, in advance franchise charge and also on-going percentage of revenue. As the cost to the franchisee may be quite high, this form of retailing offers several benefits to both the people:

Advantages to franchisee:

One of the most important benefits of buying a franchise is that the entrepreneur doesn't have to incur all the risk associated with creating a new business. Typically, the areas that entrepreneurs have problems with in starting a fresh enterprise are product approval, management expertise, meeting capital requirements, knowledge of the marketplace, and operating and structural control buttons.

Product Acceptance-

The Franchisee usually enters into a small business that has an accepted name, service or product. That trustworthiness already exists based on the years the Franchise has existed. A business owner who tries to begin a shop would be unfamiliar to the potential customers and would require significant effort and resources to develop reliability and a reputation in the market.

Management Expertise-

Another important edge to the Franchisee is managerial assistance provided by the franchisor. Each new franchisee is often required to take a training programme on all areas of functioning the franchise. This training could include classes in accounting, workers management marketing and creation. The training and education offered is really an important criterion. The fact that entrepreneur should think about in assessing any Franchise opportunity. In case the assistance in starting up the business enterprise is not good, the entrepreneur should probably look anywhere else for opportunities unless he or she already has extensive experience in the field.

Capital Requirements-

Starting a new endeavor is usually costly in conditions of both time and money. The franchise offers an opportunity to start a new venture with in advance support which could save the entrepreneur significant time and possibly capital. Some franchisors conduct location evaluation and market research of the region that may include an diagnosis of traffic, demographics, business conditions, and competition. In some cases, the franchisor will also fund the original investment to begin the franchise operation. The initial capital required to acquire a franchise generally shows a cost for the franchise, structure costs, and the purchase of equipment.

Knowledge of the Market-

Any proven franchise business supplies the entrepreneur many years of experience available and knowledge of the market. This knowledge is usually shown in a plan offered to the franchisee that details the account of the target customer and the strategies that should be implemented after the operation has begun.

Advantages to franchisor:

This type of arrangement may offer an array of advantages for the franchisor.

Additional Revenue-

Whenever a franchisor grants a new franchise location, he enters into a franchise arrangement in which the franchisee agrees to pay fees or royalties. The franchisor can use these additional sources of revenue to lessen operating expenditures such as advertising and distribution costs. The revenue can even be used to boost the franchisor's cashflow.

Reduced Threat of Expansion-

Franchises allow the franchisor to grow her business utilizing the capital and resources from the franchisee. Although the franchisor often helps the franchisee in finding sources of capital to get started, the franchisee continues to be the one accountable for obtaining the funding and is also on the hook to pay back any loan or other debt obligations.

Ease of Quality Control-

A franchise arrangement requires the franchisee to check out corporate suggestions when operating his business. For instance, a McDonald's franchisee is required to make hamburgers a specific way and might not deviate. For the franchisor, this implies fewer concerns about the grade of the product that is sold, and he doesn't have to worry in regards to a "rogue" franchisee who would like to do things his own way.

Ease of Expansion-

A franchisor may easily extend her business by granting new franchises to franchisees in untapped markets. She may be able to discover potential franchisees who are more acquainted with the nuances of a specific market than she is, which escalates the chances for success. The franchisor will enjoy the advantages of additional royalties and increased brand reputation.

Increased Royalties-

A franchisee may be more motivated than a worker, like a branch manager of the satellite operation. Since the franchisee has an individual financial stake in the success of the business, he may be more likely to work harder. For the franchisor, the result is more income through increased royalties.

Due to its advantages to both franchisee and franchisor it consider efficient form of ownership.

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