Indian Retail Industry Essay

566 words - 3 pages

Q1. Identify the opportunities and the threats that the retailing industry in India offers to local and foreign Companies.
1) Indian consumer's behavior pattern has changed: Indian consumers are becoming more aware of what retailers are offering in India and in foreign Countries because of the TV, Internet and the ability of people to travel abroad easily. So people are not just ready to accept change but rather want these big, modern organized retailers.
2) Growth in foreign direct investment (FDI) in retail to 51% in India: As of now foreign companies are allowed to own 51% of their company in India making them majority share holders, this allows major foreign retail companies to start their ventures in India and rule completely over them. Previously they were unwilling to invest because they ...view middle of the document...

The amount of large organized retailers in these areas is very small.
5) Innovative use of technology: this provides innovative use of technology that helps in efficiency. It helps in coordinating activities, decision making in large organized retailers
6) The rural market is a very good market to venture into, there are about 720 million consumers in over 6, 00,000 villages. The rural consumers are eager to connect to the outside world and are willing to accept change.

1) Trained Manpower Shortage is a challenge faced by Organized Retail sector in India: large numbers of people don't have the necessary skill set for retailing. HR development for the retail industry is becoming better but not yet good enough owing to 98% of India having unorganized retailers and hence no experience.
2) Large number of mom-and-pop stores who run the retail market in India: These are easily accessible and provide services like credit and are more on a personal and one-to-one basis with the customer.
3) The uncertain political environment: Politicians have acted in favor of the unorganized sector by disallowing the setting up of large retail outlets in some states hampering the growth of the organized sector.
4) Unsuitable real estate Laws: The laws in some states prevent the setting up of large retail outlets. This is generally in poorer or smaller states which are not that developed.
5) Buyers psychology – there is a wide misconception among middle class citizens that the modern retail outlets are more expensive and not affordable for them and hence they stay away from such places. Most Indian consumers are price conscious.
6) Large geographical size of India and the presence of traditional, fragmented distribution and retailing networks and erratic logistics leading to increase in cost this prevent retailers from Investing.

Other Essays Like Indian retail industry

Retail: Road Ahead Essay

1116 words - 5 pages class will swell by more than ten times—from 50 million in 2007 to 583 million people by 2025. By 2025, India will also become the 5th largest consumer market, moving up from the 12th position it occupied in 2007. According to a McKinsey report published in September 2008, called 'The Great Indian Bazaar: Organised Retail Comes of Age in India', organised retail in India is expected to increase from 5 per cent of the total market in 2008 to 14-18

Indian Retail Essay

3266 words - 14 pages World's eye on Indian Retail  And it’s crystal clear why the world’s eye on Indian retail The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more

Luxury Brands Growth in India

1003 words - 5 pages , high streets are very cluttered, crowded and are unsuitable due to the absence of exclusive ambience that luxury retail demands," according to a study on 'Challenges highlighted by luxury retailers in India,' jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and KPMG. The Indian luxury market grew at a healthy rate of 30% to reach $8.5 billion in 2013 and is likely to continue growing at a healthy pace of

Mnc's Effect on Local Businesses in Retailing Sector (India)

2774 words - 12 pages MULTI BRAND RETAIL TRADING IN INDIA - GREEN SIGNAL OR RED SIGNAL. Business Intelligence Journal. 5 (1), p1-11. [6] K. R. Kaushik,Dr. Kapil Kumar Bansal. (2012). Foreign Direct Investment in Indian Retail Sector Pros and Cons. International Journal of Emerging Research in Management &Technology., p1-8. [7] MR. B.PRABHAKAR; DR.C.ANBALAGAN. (2012). IMPACT OF GLOBAL ECONOMIC DYNAMICS ON GROWTH OF INDIAN RETAIL INDUSTRY. ZENITH. 2 (3), p1-14

Frozen Food Market Research Report in India

687 words - 3 pages Outlook, 2021”, the market is segregated into six segments like frozen vegetables, frozen snacks, frozen seafood, frozen poultry, frozen red meat and others. Frozen snacks and vegetables are the largest category in terms of sales volume whereas frozen poultry, seafood and red meat are still new to Indian consumers. There are three end users who combine to form the Indian frozen food industry; they are retail consumers, commercial businesses and

Brands Choice

775 words - 4 pages Abstract Branded Packaged foods have become famous in the Indian markets and retail general stores supply these products with sealed aluminium laminates. Ready-To-Eat (RTE) snacks and food reached a US $ 5 billion market in the year 2009. Ready to Eat Foods do not require any cooking and can be consumed by just putting the packet in boiling water or in the microwave for a few seconds. That is “Just Heat and Eat”. With the expansion of the

Case Discussion

2678 words - 11 pages Case Discussion Questions 1. Why is the Indian retail industry so inviting? Indian retail industry is so inviting because it is a developing site for global retailers and the profitability is declining in developed countries. Because of the indulgence of many small organizations, its existing retail system has been divided into various parts and this division is beneficial such as it is leading to lower prices of farmers and higher prices

Indian Insurance

2810 words - 12 pages Overview of Indian insurance industry 2013 1 Outlook of Indian Insurance Industry lEafCraft Insights Overview of Indian insurance industry 2013 INDEX Introduction.......................................................................................................................................3 Brief history

Coca Cola

1752 words - 8 pages strategy. Porter Five Forces Analyses: Michael Porter five forces framework helps to understand the industry rivalry and the development of business strategy. It does help to identity the rivalry from external sources in the market. Applying porter’s five forces framework analysis to Coco Cola Company in Indian context will aid us to understand micro and Macro Environment. Thus it can enable to draw a map for business strategy


1196 words - 5 pages rates). But from their earliest investments in India, multinational company (MNC) owners of restaurant chains have struggled to adapt to the needs of India's many markets. Some pulled out of the country after failed ventures. At the time, consolidation of the hugely fragmented Indian retail sector had also barely begun, and there was scepticism that Indians would prefer burgers and fast food to local food offerings. However, in the intervening

Business India

1843 words - 8 pages mobile store is selling it for Rs 11,500, about Rs 500 more than the retail price. Phones from domestic companies like Micromax match MNC brands feature to feature, and cost a lot less Micromax, however, is not the only Indian handset maker which is changing tack. Karbonn Mobiles, Lava International, Spice, and Intex Technologies are the other top Indian brands which have adopted new strategies over the past year to better challenge the

Related Papers

Assignment Walmart Takes On The World Minicase

951 words - 4 pages , and Starbucks brand plans to enter Indian retail industry by means of franchise contract with India Company. The types of approaches to enter India * Manufacturing and local sourcing companies for the reason these companies set up manufacturing facilities. Which, provide them the authorization to domestic and put the products on the market. In addition ‘[these companies are allowed to sell products to Indian consumers through franchising

This Is A Sample Text Essay

1049 words - 5 pages recovery. The manufacturing sector that constitutes around 80 per cent of industrial output, expanded by 18.5 per cent to set the pace of growth. ------------------------------------------------- India ranks second with 117 points in consumer confidence in the fourth quarter of 2009, according to the Nielsen Global Consumer Confidence survey. ------------------------------------------------- The Indian retail market, which is the fifth largest

India Frozen Food Market Essay

688 words - 3 pages , 2021”, the market is segregated into six segments like frozen vegetables, frozen snacks, frozen seafood, frozen poultry, frozen red meat and others. Frozen snacks and vegetables are the largest category in terms of sales volume whereas frozen poultry, seafood and red meat are still new to Indian consumers. There are three end users who combine to form the Indian frozen food industry; they are retail consumers, commercial businesses and exports

Retail March 2014 Essay

4664 words - 19 pages -growth potential rural market • Private label opportunities The organised Indian retail industry has begun experiencing an increased level of activity in the private label space • Private label strategy is likely to play a dominant role as its share in the US and the UK markets is 19 per cent and 39 per cent, respectively while its share in India is just 6 per cent • • Sourcing base India‘s price competitiveness attracts large retail