Retail Industry CASE STUDY
Retail Industry CASE STUDY
Retail Industry CASE STUDY
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 countrys 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.
RETAIL MIX
TRADITIONAL & MODERN
Traditional (unorganized)
Street carts
Modern (organized)
Supercenter
Pavement shops
Kirana dukaan Public distribution system
Hypermarket
Supermarket Convenience store
Kiosk/Stalls
Weekly markets
Specialty store
Category killer
Future GroupsFormats
Fabindia RP- Sanjiv Goenka Grp Retail- Formats Tata Group Formats Reliance Retail Formats
Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.
Textiles, Home Furnishings, handloom apparels, jewelry Spencers Hyper, Spencers Daily, Music World, Au Bon Pain(International Bakery Cafeteria), Beverly Hills Polo Club Westside, Star India Bazaar, Steeljunction, Landmark, World of Titan showrooms, Tanishq outlets, Croma Reliance Mart, Reliance Super, Reliance Fresh, Reliance Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore
STORES
Shoppers Stop, Crossword, Hyper City, Inorbit Mall International Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores More outlets Nakshatra, Gili, Asmi, Damas, Gitanjali Jewels, Giantti, Gitanjali Gifts,etc.
IDENTIFY THE OPPORTUNITIES & THREATS THAT THE RETAILING INDUSTRY IN INDIA OFFERS TO LOCAL & FOREIGN COMPANIES.
QUESTION 1)
OPPORTUNITIES
THREATS
supply-chain
Rising disposable income of Indian Lack of efficient middle-class management Changing demographics
Changing consumer preferences and Shortage of trained manpower shopping habits Increase in working population Lack of proper infrastructure and distribution channels A long way to meet international standards No fixed consumption pattern Inefficient Tax structure Competition retailers from unorganized
Spurt in urbanisation
Rise in MPCE level in urban areas Retail investment Low Share of Organized Retailing
PREPARE AN ETOP FOR A COMPANY INTERESTED IN ENTERING THE RETAIL INDUSTRY IN INDIA.
QUESTION 2)
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.