• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Overall strategydevelopment for the Indian retailing sector is governed by the followingdevelopments in the recent years.

Extracts from this document...

Introduction

1. What are the strategic issues in retailing in India? Compare and Contrast them with strategic issues in international Retailing? Overall strategy development for the Indian retailing sector is governed by the following developments in the recent years. SIZE: Indian private consumption in the year 2000-01 is estimated at about Rs 1,250,000 Crores. Simplistically put, this is therefore the size of total retail business in India. The present retail business is largely accounted for by over 12 Million retail outlets of all shapes and formats, and supported by street vendors, hawkers, food service outlets as well as periodic street Bazaars and Haats. Organized retailing accounts for a mere Rs 14,000 Crores or so (about 1.25%). INEFFICIENCY OF TRADITIONAL FORM: 1. Retailers themselves : the average retailer earns less that Rs. 10,000 per month for all his effort, his support staff gets even less; 2. Consumers: The typically end up paying substantially more while getting practically little or no service. 3. Small/medium manufacturers . 4. Space: India has amongst the lowest per capita retail space availability in the world. India needs to create at least 110 Million square foot of additional retail space per year for several years just to meet the demand created on account of a sustained GDP growth rate of about 6%.So far, the government of India as well ...read more.

Middle

With the advent of Shopping Malls that offer multiple brand choices, department stores such as Shoppers Stop have to reinvent their USP or else they are likely to lose business to exclusive stores of the same brands operating in the same Malls (or others in the close vicinity). Another example can be in the Durables sector. The opportunity is ripe for start-ups of national or large regional chains offering a wide range of consumer durables (white and brown goods, entertainment electronics, office / home computing and accessories, and small gadgets and home appliances). The USP can be built-up on the line indicated as under. Thus, to summarize, the emerging organized retail sector offers unparalleled opportunities to entrepreneurs and existing businesses seeking an entry in Retailing. The consumers are open to change, and several USP platforms can be occupied since at present, the "canvas" is more or less blank. However, the new entrants should carefully strike a balance between what the perceived need of the consumer is and what is financially prudent and operationally feasible from the business perspective. Having taken a decision for a particular format and its USP, the business managers must periodically review the external developments to assess if the original USP is still relevant and in case the external environment has changed, then reinvent the format and its USP so as to continue to have relevance in the Indian context. ...read more.

Conclusion

* Flagship-driven retailers - mainly fashion brand and luxury goods companies whose store growth strategies are guided by the principal purpose of providing a store network support for the development of their global brands. * Small niche retailers - operating in limited niches and generally lacking the resources for significant international expansion, these retailers tend to be heavily dependent on the general retail environment and consumer sentiment. * Sprinkler-type retailers - typically large but relatively inexperienced internationally, they are often devoted initially to regional cluster-like growth abroad. After this initial caution, their store expansion strategies tend to become more aggressive. * Waterfall retailers - the champions of retail globalization. For these retailers international store development has long been part of the core corporate strategy. International store growth enhances profitability, but not necessarily shareholder value. Retailers with faster store growth abroad appear more profitable in terms of operating margins, but it emerges that they tend to destroy value once the perspective of risk-adjusted cash flow performance is taken into account. On the other hand, those retailers with faster domestic growth are not only conventionally profitable, but also value-creative. Portfolio analysis confirms that the stock market discriminates between, and in favor of slower-growing retailers over those growing faster, on the basis of international store growth, over the last five years. ?? ?? ?? ?? DURGESH KUMAR CHOUDHARY 03927819 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    International Business Strategy - Case Study on Unilever

    4 star(s)

    In China, Unilever has three companies, each had a chairman to report to the regional presidents. This was changed, and currently, all divisions are headed by one person. When there is one leader, decisions are likely to be made faster as consultation can be eliminated.

  2. Why has GDP growth been so slow in Somalia?

    Ethnic rivalries: The emergence of religio-ethnic rivalry is a manufactured phenomenon, which is linked to post-colonial modernization35. Almost all countries in the African continent suffer from high religious and ethnic fragmentation. The population of Somalia is divided into two main ethnic groups: Hamitic stock and associated clans, who constitute 85%

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    Second, trade policy reform is not a smooth, frictionless process. It is one of the most sensitive political undertakings, for in reality trade politics is more a snakepit of distributional conflict than an exercise in delivering economy-wide efficiency. It entails often painful short-term adjustments, reshuffling resources between winners and losers, e.g.

  2. What factors have led to the growth of anti-globalisation movements in recent years? Illustrate ...

    large transnational companies, business firms are no longer restricted by some regulations and parameters and can challenge governments more effectively. "Globalisation creates new markets and wealth, even as it causes widespread suffering, disorder, and unrest. It is both a source of repression and a catalyst for global movements of social justice and emancipation."

  1. Globalization is undoubtedly not a single phenomenon.

    To some, globalization is bringing choices and opportunities, while to others it is a disruptive force that threatens lives, jobs, and traditions. In a global economy markets are without boundaries. Free market capitalism, which is the notion where "all economic decisions regarding transfers of money, goods, and services take place on a voluntary basis, free of coercive influence," (Wikipedia.com)

  2. "Machine breaking and strike action were characteristic of unruly and undisciplined Labourers".

    I agree with this statement, these men were not undisciplined and unruly, they were not against capitalism per se', (capitalism had ruled their trade for over a century) it was the that they were not being heard in an extremely distressing time of food shortage, wage cuts and poor foreign trade.

  1. International Diversification and the Home Bias Puzzle

    There is also empirical evidence that shows that correlations between markets change over time. It is suggested that during tranquil periods, markets tend not to be that highly correlated across countries. However correlations during exceptional periods can be very high, for example during the 1987 stock market crash.

  2. In this report, we shall explore the reasons for the shift from multilateralism to ...

    This resulted and worsened the capital flight out of the country. Interest rates then shot up, leading to the collapse of previously inflated stock and real estate markets. Thailand thus faced its worst recession in the post-war period with sharply rising unemployment and business failures.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work