RETAIL INDUSTRY

Group members

INTRODUCTION

• Retail is 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 India’s 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 :

Arvind Lifestyle7% Arvind Retail

2%Brandhou.Retail

2%Future Lifestyle

11%

Future Retail48%

Mahindra Retail1%

Provogue (India)2%

Shoppers St.11%

Store One Retail0%

Trent5%

V2 Retail1%

Welspun Global9%

MARKET SHARE

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

PORTER’S 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-advertising-in-retail.htm

http://www.abhinavjournal.com/images/Commerce_&_Management/Mar12/17.pdf

http://smallbusiness.chron.com/financial-ratios-important-retail-industry-23307.html