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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