Retail Mareting

Topics: Retailing, Department store, Shopping mall Pages: 11 (1676 words) Published: February 9, 2013
By:  Ghousia Islam  Madhuri Jain Dugar  Neha Agrawal  Piyushi Sanghai  Riya Jain

MMA 2ND Semester :

What is Retailing ?
Retailing is a set of business activities that adds value to the products & services sold to the consumers for their personnel or family use.

India Stats in 2011 :
 Indian retail business valued at around US$ 550 billion in 2011  A report by Boston Consulting Group (BCG) has revealed that the country's organised retail is estimated at US$ 28 billion with around 7 per cent penetration. It is projected to become a US$ 260 billion business over the next decade with around 21 per cent penetration.

 Apparel Retailing :
 In India, clothing retail accounts for 36% of organized retail business.  With the advent of modern format retailers and the growth of plastic cards, affluent urban Indian women are shopping like never before.  Although the apparel industry seems to be in the maturity stage and growth is slow, fashion trend cycles are accelerating

 Indian apparel retail industry

 The Indian apparel retail industry representing a compound annual growth rate (CAGR) of 9.9%.  Ranked as the top retail destination globally & among 30 emerging markets in the world.  It is the second largest untapped market after China.

SWOT Analysis : Apparel Industry
Strength :
 Growing domestic market,  increase in number of malls  Democracy provides a stable economic and social environment, putting international players at ease  Easy credit facility and plastic card revolution is increasing the purchasing power, particularly of the younger generations.

Opportunities :
 Increasing demand for brands from the middle class  Research and new product development can help the companies to move across the value chain  Retail sector in rural India is almost untouched, presenting tremendous opportunity

Weakness :
 Predominance of unorganized sector  Technological obsolescence in the supply chain  Taxation hindrances:  VAT and multiple tax levies.  Inconsistent octroi and entry tax structure.  Presence of large grey market

Threats :
 Increased competition in the domestic market  Cheaper import  Changing Government’s policy on FDI  Price of land and lease rentals are high while margins are low

Traditional Retail Cycle:

Modern Retail Cycle:


New Market, Bada Bazaar etc

FORMAT DEPARTMENT STORES (MBO) SPECIALTY STORE DISCOUNT STORES FACTORY OUTLETS DESCRIPTION Average size varies between 10,000 sq. ft. and 60,000 sq. ft. Offer a large layout with a wide merchandise mix.

EXAMPLE Shoppers stop Lifestyle Pantaloons Westside Provogue Spykar Levi’s Big Bazaar

Single-category stores Focus on individuals and group clusters of the same class, with high product loyalty Average size — 10,000 sq ft • Offer wide range of products, mostly branded, at discounted prices Average size — 600 sq ft Relatively small retail store offering slightly defective branded product at a discount

Spykar Factory Outlet Provogue Factory Outlet Metro Bharti-WalMart

SUPERMARKET Average size — 75,000 sq ft Offer several thousand stock-keeping units (SKUs) and generally have bulk buying requirements.

Apparel’s are essentially segmented into Men's wear, Women wear & Kids •Consist of trousers, shirts, jeans, t-shirts, coats etc •The Indian menswear market has average revenue of $11.8 billion representing a compound annual growth rate (CAGR) of 8.6% •Consist of dresses, sarees, tops, jeans, trousers etc •India's women’s wear market generates average revenues of $10.2 billion representing a compound annual growth rate (CAGR) of 11.6 percent . Consists of uniform, trousers, jeans, t-shirts etc •Kids wear is not a small business anymore. Driven by huge demand from brand conscious children, the Indian kidswear retail market is booming.




Sneak Peek at the major...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Retail Stores Essay
  • Retail Essay
  • Retail Banking Essay
  • retail merchandising Essay
  • Fashion Retail Management Essay
  • Retail Operations in Banking Essay
  • Essay about Retail Manager Profile
  • Organizing Traditional Retail Essay

Become a StudyMode Member

Sign Up - It's Free