The retail sector has always had a life of its own. One of the most dynamic sectors of the Indian economy, it contributes to 10% of the GDP and is accountable for 8% of the employment at this given point. The projected growth of at least 10% steadily over the next 10 years will place India the third-largest economy by 2025. There is no time like the present to enter the retail industry and become a retail entrepreneur!
In a country like India, where everything is based on tradition and culture, there is a certain charm held by something tangible; and there is nothing more tangible than a retail store. Even though the world of e-commerce is on a steady rise, 91% of all sales are still being generated in-store. The charm of retail remains undeniable forcing a lot of e-commerce giants to open up on-ground stores. The current market scenario and the strong growth predicted for it in the future makes NOW an ideal time to invest and start on your own.
No matter what industry you’re in, starting a business is never easy. Retail stores are no exception; between picking a location and perfecting your products, there are tons of things to do and keep track of, and a few important steps that can set you up for business success might get left out. Want to make sure your supermarket gets off to a good start? Make sure you do these things.
1. Understand Investment and Capital
Opening a store could demand an investment anywhere between 10 lakhs to 2 Crores depending on the size of the store. These funds will be needed for various actions that start with registration and spread over a wide variety of needs including the hiring of employees and store design.
If you are looking for funding, then going to a financial institution that offers benefits like a long time for repayment, lower interest rates, and more is essential. Another important piece of information to keep in mind is that there are specific government-designed programs that offer you business loans up to 10 lakhs at a lower interest rate. But if you looking for a resource that can guide through the maze of multiple government initiatives available, you can look into this article listing out all initiatives put into effect by the government.
There are two ways to select the location. One where there is a specific type of crowd and second where your competitors are already in the market but you have done your research and found out the pain points of the customers that your store can solve. The location is the first step towards deciding the vibe that your store will hold. Commercial locations can either be found on the property search sites like 99acres and magicbricks or you can also look into offers presented by the builders across the country.
3. Registering the business
The most important decision for any individual starting a new business is picking the right legally viable organizational structure. It is possible for a change to be made at a later date but this is a difficult and expensive process. The smarter choice is, to begin with, the right decision. Get legal advice and ensure you reference to resources that provide an objective and accurate opinion or direction like Vakil Search.
4. Products Offered
When you are opening the store you need to decide what type of products you want to offer. Is it going to be a supermarket that is going to offer organic products, international brand products, food and vegetables or a mix of all? The product needs to be selected on the basis of the spending power that the locality and the audience holds. The product then needs to be placed in an optimal position to ensure maximum revenue generation.
5. Store Design and Fixture
The charm of the retail store depends on the experience it offers and that comes only from design. Taking into account as mentioned before, 91% of all retail sales are still generated in retail stores it becomes imperative that they are given an incomparable shopping experience. Usually, supermarket owners try to cut the corner and design the store and install fixtures & display solutions from local fabricator which has a low shelf life of 3-5 years and bend or become rusty over a period of time. Also, some of them prefer wooden fixtures that not only have a low shelf life but also can’t be used to customize the layout of the store based on the upcoming events and festivals.
Also, the atmospheric factors i.e. light, colour, music and scent and the aesthetic factors (size, colour and texture) not only make sure that you improve your performance and sales but also enable you to stand out from your competition and build a customer experience that is unforgettable and reap the benefits that come with customer loyalty. Think long-term and choose quality over price point. Instor India offers a complete range of display, storage, and movement solutions that meet all quality standards and beat competitors on this.
Sourcing decision has a direct impact on the revenue generated and the profits reflected. The right quality at the right price is a need for your business. Having variety within the store is essential but at the same time understanding the target audience and accordingly selecting products and suppliers would be a smart move. Initially, you may want to go to the wholesale market to procure initial stock then later you can work with a distributor. In the golden age of technology that we live in today, sources like WYDR help eliminate the middleman and connect with manufacturers directly.
7. Banking and Payment
Working with an appropriate banking partner is of crucial need. The digital era has arrived and so a tie in with a bank is essential so as to give multiple payment options to the customers. This step also includes the billing system that needs to be implemented within the store to make it easier for you to keep a track of the revenue generated.
In India, the shift has been significant in terms of moving towards a cashless economy. Keeping this in mind, multiple modes of payment being implemented would be appreciated.
According to a study published on ResearchGate it has been concluded that people are more likely to spend their money in environments they find appealing and the same time serene. The investment to start a store by no means is small but backed by guaranteed returns and a steady growth rate is an investment opportunity that will always bear results.
Hopefully, our guide would you provide with at least the essentials required to open a fully functional retail store!