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2011-13

RETAIL MANAGEMENT

SUBMITTED BY:
SUBMITTED TO:

Group - 11 ADITYA VATS AKASH GUPTA ANKUSH SHARMA RITESH JAISWAL SIDDHARTH KHEMKA

Prof. G. SURESH

Store channel and online channel


Physical store channel Big Bazaar

Importance of Store channel: 1) 2) 3) 4) Touch and feel Immediate delivery of products Personal assistance and interaction Browsing comfort

Online channel- Ezmaal.com

Importance of online channel: 1) 2) 3) 4) 5) More detailed and current information Broader and deeper assortments Personalization of information search about the product Chart comparisons , consumers do not have to remember the features Sometimes when not available on store u can get it from online.

SHORT TERM CHALLENGES

Reforms undertaken by government will allow foreign players to enter hence increasing the competition.

The behaviour pattern of indian consumer is changing.

Lack of trained workforce.

Regulations restricting real estate purchases, and cumbersome local laws.

Underdeveloped supply chain system

MEDIUM/LONG TERM CHALLENGES

The biggest challenge which Indian organized retail sector will face is the lack of retail space.

Walmart will lower prices to dump goods, get competition out of the way, become a monopoly, then raise prices.

More exposure to Online retail stores.

Increase in number of foreign players and scale of existing players.

Squeezing profit margins

ENVIRONMENTAL CHALLENGES

Climate change

Use of Plastic bags

Waste management

Increasing CO2 emission and increasing fuel prices

Food scarcity

List down your appreciation as to whether organized retail will have to continue to coexist with the unorganized sector in this category. Why or why not

Market Share
7%

93%

Unorganized Retail

Organized Retail

Reduced prices to final consumers due to efficient farmer-to-consumer chain Product standards benchmarking Introduction of newer technologies Betterment of supply chain infrastructure Ensuring better operations in production cycle and distribution Transfer of skills and technology from overseas Greater managerial talent inflow from other countries

Source: 2011 A.T. Kearney Global Retail Development Index

Organized retail is expected to generate more than 4 Mn new direct jobs

in the coming years Companies will be able to gather better product, consumer and channel feedback

WHY NOT? Predatory pricing would wipe out the unorganized sector gradually SMEs will be exploited by the organized sector due to bulk orders Lower prices would cut down the margins of the unorganized players