Post globalisation era in greater mumbai june 2006 efi – solar foundation mumbai

Table: 12.8.1

According to the study undertaken by FICCI, Indian Entertainment Sector is estimated at Rs. 22200 crore (for break up refer to Figure 12.1 – G). In the absence of research data on the entertainment sector in Mumbai, industry experts have placed (guesstimate) the total entertainment sector in the city of Mumbai at approximately 25-30 per cent to that of India, i.e. Rs. 5550 crore.

In a recent research study undertaken by FICCI, it has estimated the growth rate over the next five years for individual sub sector in the Entertainment Sector.

Therefore the total direct employment in the Entertainment Sector in Mumbai is estimated at 6,49,998 individuals in 2010.

The Film & Television Producers Guild of India stressed that the film and television sub sectors is predominantly unorganised when it came to human capital management. It stated that out of the 50 lakh employees engaged in the sub sectors in India, 10 lakh is direct employment, while the balance 40 lakh is indirect employment. Thus, it can be derived that the ratio of the direct and indirect employment in television and film sub sectors is 1:4.

Based on the above calculations we have projected direct employment in the city for 2010 at 6.49 lakh employees and indirect employment at 25.99 lakh employees. This implies that the total employment generated by the entertainment sector in 2010 will be 32.48 lakh employees.

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  Due to rush of several new channels in areas like: news, kids, lifestyle, entertainment, spiritual, travel, etc., the sub sector had registered a phenomenal growth over the last few years. The availability of cheaper technology has lead to reduction in costs and higher profits, which in turn is resulting into increase in number of channels. This is likely to create several job opportunities for skilled and creative personnel.
  

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  With an increase in the number of television channels there has been a significant rise in demand for professionals and skilled personnel. Realising that there is a dearth of talent in several areas, several training institutes and mass-communication colleges have ventured in to play a strategic role in providing skilled personnel.
  

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  Earlier a career in cinema was considered a taboo, but with corporate houses and financial institutions investing in the sub sector is attracting the best of talents. In recent times, professionals like MBAs, Chartered Accountants, Doctors, etc., are also opting for a career in the sub sector.
  

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  Gradual removal of FDI and other market restrictions by the government, Indian business houses are aggressively taping foreign markets. Considering the sheer magnitude of the untapped Indian markets across the country, it wouldn’t be wrong to conclude that entertainment sector holds great promise in the near future.
  

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  The influx of satellite channels has revolutionised the radio segment in the country. It has emerged as the most effective mass communication medium in the country. In a short period of three years, FM Radio channels have multiplied exponentially thereby making their mark as an effective medium of entertainment.
  

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  In a short duration, the FM Radio segment has created few hundred direct and indirect jobs in the city. Several young individuals are pursuing radio as a serious career. There has also been a perceptible rise in job satisfaction, glamour and money.
  

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  The radio sub sector in the country is at a nascent stage, and there is a huge scope for talented individuals to make it big – the job opportunities are rising tremendously. It is estimated that there would be more than 300 radio channels within the next two years, and this in turn would need more staff - radio jockey, radio managers, station masters, radio station technicians, etc. Severe competition has resulted into better pay packages.
  

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  Entertainment sector is experiencing a high level of churning vis-à-vis any other sector, which is the reason why the job functions and profiles will continue to evolve. Future job opportunities would be technically oriented, and that constant introduction of newer technology would require future employees to be skilled and technically sound.
  

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  Major sub sectors like television, films, radio and live entertainment have several overlapping employment areas. Considering that entertainment sector is witnessing holistic growth, it provides employment opportunities in virtually every segment and more so in areas like: production, direction, scripting, casting, camera, light, art direction, music, dance, special effects, stunts, wardrobe, make-up and hair styling, editing, sound recording, etc.
  

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  Company are investing a considerably amount on employee training and skills up gradation, in-house training has become necessity, and companies cannot escape this investment.
  

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  Several training schools have sprung up across the city, which provide individuals training in specialized areas. Also there has been a rise in number of people going abroad to for advanced training in technical and creative areas.
  

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  The city has been the entertainment hub and future growth of sub-sectors like films, music, radio and television sector would have far-reaching impact on the employment opportunities within the sector. The government should create an environment conducive for the growth of these high employment sub-sectors.
  

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  As the sector is gradually getting more and more organised, jobs are getting segmented based on specialisations. There is a need for training institutes to provide tailor-made training programs to individuals desiring unique specialisations.
  

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  There is a need to tackle the issue of piracy and create adequate environment for practice of intellectual property rights, it would not only boost the growth of the sector but also create several more employment opportunities.
  

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  IT technology has played a prime role in growth of the television and film sub sector, the sector would foresees a huge requirement for specialised technical people in the near future. IT training institutes should take appropriate steps to orient training programs as per the requirements of the sector.
  

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  Presently, the entertainment sector is experiencing a high level of churning vis-à-vis other sector. This to a certain extent is hurting the health of the sector, steps should be taken to arrest high attrition rate.
  

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  As future job opportunities in the sector would be technology oriented as companies are constantly introducing newer technologies on the production and delivery front. Institutes should training individuals to deliver on future technologies.
  

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  In a period of three years, FM Radio has already made its mark as an effective medium of entertainment. The sunrise sub sector is still largely untapped and with rationalisation in the license framework can create host of new employment opportunities.
  

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  During the last few years, the city has witnessed introduction of several malls and large format shopping complexes that offered both shopping and entertainment experience under one-roof. By creating investment-friendly atmosphere, the government not only encourage retailing boom but also ensure growth of the entertainment sector.
  

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  Mumbai - the hub of entertainment sector in the country -which has almost all the major television and satellite network companies, large production houses and studios. There is a significant rise in demand for professionals and skilled personnel, the role played by training institutes and mass-communication colleges would be very crucial in providing requisite skilled personnel.
  

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  Future job opportunities would be technically oriented, and that constant introduction of newer technology would require future employees to be skilled and technically sound.
  

CHAPTER- 13

EMPLOYMENT GENERATION IN THE RETAIL (SHOPS) SECTOR

13.1 RETAIL (SHOPS) SECTOR IN INDIA (Over the last decade)

Macro Scenario

India is sometimes commonly referred to as ‘a nation of shopkeepers’. This epithet has its roots in the huge number of retail enterprises in India, which totalled over 12 million in 2003. About 78 per cent of these are small family businesses utilising only household labour. Even among retail enterprises that employ hired workers, the bulk of them use less than three workers.

In a developing country like India, a large chunk of consumer expenditure is on basic necessities, especially food related items. Hence, it is not surprising that food, beverages and tobacco accounted for as much as 71 per cent of retail sales in 2002. The remaining 29 per cent of retail sales are non-food items.

India's retail sector appears backward not only by the standards of industrialised countries but also in comparison with several other emerging markets in Asia and elsewhere. There are only a handful of companies that run department stores and hypermarkets. While the number of businesses operating supermarkets is higher (385 in 2003), most of these had only one outlet. The number of companies with supermarket chains was less than 10 in 2003.

As per the 2005 Global Retail Development Index released by AT Kearney, India has displaced Russia to become the world’s best destination for retail stores’ expansion. The index, a study of retail investment attractiveness among 30 emerging markets across the globe, has indicated that India’s retail market totalling $330 billion, though vastly underserved, has grown at an average 10 per cent, over the past five years. A recent study of the retail segment in India conducted by KSA Technopak, states that fashion and food will be the key growth areas within the retailing sector, accounting for 85 per cent of business.
The churn in the country’s retail sector has ushered in diverse concepts like multi-brand shops, all-under-one-roof shops, speciality and super-speciality shops catering to niche products and consumers. Meanwhile, more and more manufacturers are setting up dedicated outlets that focus on creating a distinct store identity by using layout, display and lighting to enhance the appeal, thus offering consumers a complete shopping experience. The contest for a greater share of the retailing turf, for now, is primarily between the organised and unorganised sectors.
Amidst these changes, we find that though every shop hasn’t quite become a store, certainly most of them have changed to a great extent so as to cope with the emerging realities of retailing. With new concepts supplanting the old ones, contemporary and traditional players are learning to co-exist. Although the evolution of retailing can be traced to early years of liberalisation, it is only during the last five years that the sector has seen infusion of high degree of professionalism by way of fresh formats, ideas and players.
Retail sales (in real terms) are predicted to rise more rapidly than consumer expenditure during 2003-2008. The forecast growth in real retail sales during 2003-2008 is 8.3 per cent per year (compared with 7.1 per cent for consumer expenditure).
As for the market, India’s consumer class is projected to treble to 124 million households by 2013 from 46 million households in 2003, as per the research done by National Council of Applied Economic Research (NCAER). The research highlights that India’s opportunity exists in more than one billion consumer base, of which, 45 per cent comprises the young population, less than 20 years of age.
Inevitably, modernisation of the Indian retail sector will be reflected in rapid growth in sales of supermarkets, department stores and hypermarkets. This is because of the growing preference of the affluent and upper middle classes for shopping at these types of retail stores, given the conveniences they offer such as shopping ambience, variety and a single-point source for purchases. Hence, sales from these large format stores are predicted to expand at growth rates ranging from 24 per cent to 49 per cent per year during 2003-2008. However, such rapid growth is from a small base. Hence, they will continue to account for only a small share of total retail sales in 2008.
13.2 RETAIL (SHOPS) SECTOR IN MUMBAI (Over the last decade)

Industry Perspective

An optimist, Apna Bazar is of the opinion that just as businesses like IT, marketing and trading dominated economic activities during the last decade; similarly, retail sector would spearhead growth of economy over the next five years. The rate at which malls and stores are springing-up across the country is an apt indication of the enormity of retail revolution. It feels that in the short-term, competition would be severe as individuals players would go all out to woo customers, but in the long-term the sector will accommodate only serious players considering the fact that India’s per capita consumption is considerably low vis-à-vis developed countries. Another striking change the sector is witnessing is introduction of state-of-the-art technology in business processes to stay one-up in the competition.
Over the last decade, Apna Bazar has witnessed business growth in the region of 10-15 per cent per annum; however, during the last two years, the growth rate has declined largely due to increase in competition. Another factor that has resulted into drop of sales for the company has been the movement of traditional customers from the city to suburbs.
According to Shoppers’ Stop, the sector has grown at an annual rate of 35-38 per cent over the last decade. This was largely due to influence of western culture, increasing purchasing power, general boom in the economy and customer’s changing consciousness towards products, i.e. customers were now giving more importance to branded products, quality, price, etc. Prior to 1995, the retail sector was considered to be unorganised; while post-1995 the sector has received its due recognition. Big players like Pantaloon, Westside, Pyramid, etc. started consolidating their businesses in the city, which spurred the overall growth of the sector.
Since 1995, Shoppers’ Stop has performed very well growing at the rate of 25 per cent year-on-year. But in 2000, the business witnessed a slowdown as the company intentionally decided to consolidate its business by writing-off bad debt, investing heavily into ERP solution, and putting other systems in place. But soon thereafter from 2000-01, the company bounced back and since then the company has been making profits.
According to Hilton, a branded garment shop, the retailing sector has matured significantly over the last decade. Over the last few years, the sector has witnessed evolution of several new retailing models and concepts, which in turn are posing stiff challenges to conventional players. Indicating a paradigm shift in business, it claimed that earlier retailers were at the mercy of manufacturers, but today it is vice versa. It is certain that conventional retail shops will continue to exist despite threat from malls and big stores. It pegs the growth of retailing sector at approximately 30-35 per cent during the last 10 years.
According to Shakari Bhandar, the retail sector in Mumbai has grown at a rate of 25 per cent over the last five years. It credits the government’s initiatives like globalisation and free trade policy for having given the necessary impetus to this sector. It feels that the government’s decision of allowing FDI into retailing sector has already resulted into a mall revolution in metro cities like Mumbai, and it believes a similar trend would be visible across the country over next few years.
Over the decade, Shakari Bhandar has grown from strength-to-strength. The company’s total turnover for 2004-05 has touched Rs. 65 crore with employee strength of 500 across 19 shops in Mumbai. Over the last few years, the company has witnessed a slight drop in sales to the tune of 5-10 per cent on account of invasion of malls and super stores. It agreed that if no action is taken at the earliest, the drop in sales could intensive in the coming future. However, the company is not taking competition lying down, in fact it has plans to introduce new schemes for its customers and create a mall-like ambience in its shops.
According to K. Dinesh & Co., a leading wholesale and retail textile shop, the retail sector has grown by almost 500 times in the last 10 year, and it was largely due to greater awareness among customers and increasing spending power. But the main reason for the growth of this sector is easy availability of finance from banks and financial institutions. The company has performed exceptionally well over the last 10 years, and has five textile and ready-made garment stores and one furnishing shop. The company started with a turnover of Rs 2 crore and five employees and at present has 40 employees with a total turnover of Rs 7 crore. The company has invested in customer-friendly interiors and has air-conditioned all its outlets.

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