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A case study on retail industry in india
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R E TA I L I N G I N D U S T RY I N I N D I A
CASE STUDY:
By- Charuta Jagtap (Feb 2013)
OVERVIEW
• Retail industry, being the fifth largest in the world, is one of the sunrise sectors with huge growth potential.• It accounts for 14-15% of the country’s GDP.
Comprising of organized and unorganized sectors.• According to the Global Retail Development Index
2012, India ranks fifth among the top 30 emerging markets for retail.• The recent announcement by the Indian
government allowing 100% FDI in single brands and future scope of multi-brand FDI have created positive sentiments.
KEY MARKET SEGMENTS
• Food &Grocery• Clothing & Fashion• Beauty & Wellness• Electronics• Furniture & Furnishings• Others
RETAIL MIXTRADITIONAL & MODERN
Traditional (unorganized)
Modern (organized)
Street carts Supercenter
Pavement shops Hypermarket
Kirana dukaan Supermarket
Public distribution system Convenience store
Kiosk/Stalls Cash & carry
Weekly markets Discount store
Department store
Specialty store
Category killer
KEY INDIAN PLAYERS
BRANDS STORES
Future Groups- Formats
Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.
Fabindia Textiles, Home Furnishings, handloom apparels, jewelry
RP- Sanjiv Goenka Grp Retail- Formats
Spencer’s Hyper, Spencer’s Daily, Music World, Au Bon Pain(International Bakery Cafeteria), Beverly Hills Polo Club
Tata Group Formats
Westside, Star India Bazaar, Steeljunction, Landmark, World of Titan showrooms, Tanishq outlets, Croma
Reliance Retail Formats
Reliance Mart, Reliance Super, Reliance Fresh, Reliance Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore
BRANDS STORES
K Raheja Corp Group Formats
Shoppers Stop, Crossword, Hyper City, Inorbit Mall
Lifestyle International Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores
Aditya Birla Group More outlets
Gitanjali Nakshatra, Gili, Asmi, D’amas, Gitanjali Jewels, Giantti, Gitanjali Gifts,etc.
KEY INDIAN PLAYERS CONTD.
KEY FOREIGN PLAYERS
• Carrefour• Tata Tesco• Bharti Wal-Mart• IKEA• Starbucks etc.
IDENTIFY THE OPPORTUNITIES & THREATS THAT THE RETAILING INDUSTRY IN INDIA OFFERS TO LOCAL & FOREIGN COMPANIES.
QUESTION 1)
OPPORTUNITIES THREATS
Rising disposable income of Indian middle-class
Lack of efficient supply-chain management
Changing demographics Lack of required retail space
Changing consumer preferences and shopping habits
Shortage of trained manpower
Increase in working population Lack of proper infrastructure and distribution channels
Spurt in urbanisation A long way to meet international standards
Rise in MPCE level in urban areas No fixed consumption pattern
Retail investment Inefficient Tax structure
Low Share of Organized Retailing Competition from unorganized retailers
PREPARE AN ETOP FOR A COMPANY INTERESTED IN ENTERING THE RETAIL INDUSTRY IN INDIA.
QUESTION 2)
ENVIRONMENTAL THREAT & OPPORTUNITY PROFILE (ETOP)
Environmental Opportunities• Nominal market share of organized retail business
indicating scope for tremendous growth.• Favorable FDI policies.• The next generation Indian Consumer (younger,
higher pay, double income households, disposable income, open to western influences etc.)• Comparatively favorable political climate.• Untapped market.• Mending tax policies.
Environmental Threats• Competition from unorganized & organized
sectors.• Indian consumers are still price sensitive & rural
misconception about retail outlets being expensive.• Raising estate prices and lengthy establishing
procedures.• Need for improved infrastructure and supply
chain.• Widely heterogeneous market.• Need for better workforce management.• Threat from online shopping stores.• Inconsistent tax rates.
WAY TO INDIAN MARKETS
• Understanding consumers needs, preferences and wants• Operating stores efficiently and profitably• Serving value-aware consumers• Evolving with the market• Localising products to delight and excite Indian
consumers
BENEFITS OF ROBUST RETAIL ECOSYSTEM
• Reduce wastage• Employment• Sourcing• Benefit the farmers• Decrease in intermediaries• Increased govt. revenues• Kiranas can become franchise partners and exist
cordially with retail outlets• Better price regulation
THANK YOU
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