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    Retail Industry

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    aswini
    The retail industry in India contributes 14-15% to India's GDP. It is a highly concentrated market with the top 5 companies (Future Retail, Shoppers Stop, Trent, Welspun Global and Arvind Lifestyle) accounting for over 48% of the total market share. Future Retail is the largest player with a 47% market share. The industry's strengths include a large purchasing power due to population size and an aspiring middle class, while weaknesses are poor infrastructure and limited R&D spending. Opportunities lie in digital innovation and improving the customer experience, while threats include availability of real estate, price competition and new online retailers entering the market.

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    Retail Industry

    Uploaded by

    aswini
    2K views19 pages
    The retail industry in India contributes 14-15% to India's GDP. It is a highly concentrated market with the top 5 companies (Future Retail, Shoppers Stop, Trent, Welspun Global and Arvind Lifestyle) accounting for over 48% of the total market share. Future Retail is the largest player with a 47% market share. The industry's strengths include a large purchasing power due to population size and an aspiring middle class, while weaknesses are poor infrastructure and limited R&D spending. Opportunities lie in digital innovation and improving the customer experience, while threats include availability of real estate, price competition and new online retailers entering the market.

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    performance analysis of retail industry including scp,swot,pestel,porter's five forces

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    Retail Industry ppt

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    The retail industry in India contributes 14-15% to India's GDP. It is a highly concentrated market with the top 5 companies (Future Retail, Shoppers Stop, Trent, Welspun Global and Arvind Lifestyle) accounting for over 48% of the total market share. Future Retail is the largest player with a 47% market share. The industry's strengths include a large purchasing power due to population size and an aspiring middle class, while weaknesses are poor infrastructure and limited R&D spending. Opportunities lie in digital innovation and improving the customer experience, while threats include availability of real estate, price competition and new online retailers entering the market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views19 pages

    Retail Industry

    Uploaded by

    aswini
    The retail industry in India contributes 14-15% to India's GDP. It is a highly concentrated market with the top 5 companies (Future Retail, Shoppers Stop, Trent, Welspun Global and Arvind Lifestyle) accounting for over 48% of the total market share. Future Retail is the largest player with a 47% market share. The industry's strengths include a large purchasing power due to population size and an aspiring middle class, while weaknesses are poor infrastructure and limited R&D spending. Opportunities lie in digital innovation and improving the customer experience, while threats include availability of real estate, price competition and new online retailers entering the market.

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    RETAIL INDUSTRY

    Group
    members

    INTRODUCTION

    Retailis the process of selling consumer goods


    and/or services to customers through multiple
    channels of distribution to earn a profit.
    Contributes 14 to 15 percent of Indias GDP

    INDUSTRY ANALYSIS

    Market structure:

    Number of retailing firms in India- 41

    Conduct: (Advertising)

    Advertisements have taglines to create awareness


    Signboards, billboards, hoardings and banners
    Print media
    Television
    Radio Advertisements
    Social networking
    Promotional Offers with timing , types, attitude,
    reason, types of goods

    Performance: (Profitability)

    Most profitable:
    Jewelry, Luggage, and Leather Goods stores
    Clothing Stores
    Specialty Food Stores
    Health and Personal Care Stores
    Least profitable:
    Lawn and Garden Equipment and supplies store
    Gasoline Stations
    Building Material and Supplies Dealers
    Office Supplies, Stationery and Gift Stores

    Retail Industry :
    MARKET SHARE

    Welspun Global; 9% Arvind Lifestyle; 7% Arvind Retail; 2%


    Brandhou.Retail; 2%
    V2 Retail; 1%
    Trent; 5%
    Future Lifestyle; 11%
    Store One Retail; 0%
    Shoppers St.; 11%
    Provogue (India); 2%
    Mahindra Retail; 1%
    Future Retail; 48%

    HH Index
    Name of the store

    Annual Sales

    Market Share( in
    %)

    Future Retail

    12,292.64

    47

    Mahindra Retail

    205.70

    0.79

    Provogue

    614.36

    2.3

    Shoppers Stop

    2,859.39

    11.03

    Store one Retail

    116.84

    0.45

    V2 Retail

    237.82

    0.91

    Welpson Global

    2,396.15

    9.24

    Arvind Lifestyle

    1,811.38

    6.99

    Arvind Retail

    5,069.29

    1.95

    Trent

    1,329.86

    5.13

    Brandhou Retail

    512.02

    1.97

    Future Lifestyle

    2,907.47

    11.22

    25905.66

    2631.73

    Total Market Share = 2,631.73


    Retail Industry is Highly concentrated.
    According to HHI , if the market share is
    greater than 1800 then it is known as
    Highly Concentrated Market.

    Strengths:

    Purchasing power
    Population demographics
    Low retail penetration
    Aspiring middle class
    Product quality

    Weakness

    Political uncertainty and regulatory requirements


    Poor infrastructure and supply chain management
    Limited budget in R&D

    Opportunities

    Innovation
    Digital strategy
    Improving in store experience according to evolving
    customer experience
    Changing in regulatory scenario

    Threat

    Availability of land and real estate


    Price wars with competitors
    Increasing no of online retail stores
    International players looking to foray into the market

    PORTERS FIVE FORCES MODEL

    1. Threat Of New Entrants:

    One threat that started a decade ago has been a

    decreasing number of independent retailers.


    Power of the existing firms is affected by the ability
    of people to enter the market.

    2.Bargaining Power Of Suppliers:

    The fewer the supplier choices you have, the more


    powerful the suppliers are.
    Retailers have tried to exploit the relationship with
    suppliers.
    To reduce power and retain customers, retailers seek
    to differentiate products and create strong brands.

    3.Power Of Buyers:

    Generally, customers have high bargaining power


    with retail stores.
    But as a whole, if customers demand high quality
    product at bargain prices, it helps keep retailers

    honest.

    4.Threat Of Substitute Products:

    The tendency of retail is to deal with a wide range of


    products and services.
    This means what one store offers you are likely to
    find at another store.
    Therefore, retailers offering products which are
    unique have a distinct advantage over their
    competitors.

    5.Competitive Rivalry:

    Rivalry is increased by equal size and power of


    dominant retailers who are pushing to increase the
    market share.
    Therefore, the number and capability of the
    competitors is very important.
    Among leading groups there are Flipkart with a
    market share of 55%, Big Bazaar with a total retail
    market of Rs.12,781 billions.

    REFERENCES

    http://info.shine.com/list-of-retail-companies/7.html
    http://www.forbes.com/fdc/welcome_mjx.shtml
    http://
    www.managementstudyguide.com/role-of-advertisingin-retail.htm
    http://www.abhinavjournal.com/images/Commerce_&
    _
    Management/Mar12/17.pdf
    http://smallbusiness.chron.com/financial-ratios-impor
    tant-retail-industry-23307.html

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