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

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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.

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