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RETAIL CHALLENGES

IN INDIA

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is the fifth largest in the world.

comprising of organized and unorganized sectors,

Indian retail industry is one of the fastest growingindustries in India.

with growing market demand, the industry is

expected to grow at a pace of 25-30% annually.

the India retail industry is expected to grow fromrs. 35,000 crore in 2004-05 to rs. 109,000 crore

 by the year 2010.

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Pantaloon:

Pantaloon is one of the biggest retailers in India with more than 450 stores

across the country.

Tata Group

Tata group is another major player in Indian retail industry with its

subsidiaryTrent, Star India Bazaar.

R PG Group

it came into food & grocery retailing in 1996 with its retail Food world

stores. Later it also opened the pharmacy and beauty care outlets µHealth &

Glow¶. Reliance

R eliance is one of the biggest players in Indian retail industry.

AVBirla Group

AV Birla Group has a strong presence in Indian apparel retailing.

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Mom-and-pop stores: they are family ownedbusiness catering to small sections.

Departmental stores:(20,000 to 50,000 sq ft.) aregeneral retail merchandisers offering qualityproducts and services.

Convenience stores:(400 to 2000 sq ft.) are locatedin residential areas with slightly higher prices goods

due to the convenience offered. Shopping malls:(60,000 sq ft. to 7,00,000 sq ft.

and above) These are the largest form of retailformat(sunder a single roof). (sahara mall,TDI mall)

E

-trailers: are retailers providing online buying andsellin of roducts and services.

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DISCOUNT STORES: these are factory outlets thatgive discount on the MRP. (wall mart)

VENDING: mall items can be bought via vendingmachine.

CATEGORY KILLERS: small specialty stores thatoffer several brand of of single product category.known as Multi Brand Outlets or MBO's.

Specialty stores: are retail chains dealing inspecific categories and provide deep assortment.Mumbai's Crossword Book Store .

Hypermarkets/Supermarkets: (3500 sq ft to5000 sq ft.)These are generally large self-serviceoutlets, offering a variety of categories with deep

assortments. (big bazar)

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1) LOCATION:"R ight Place, R ight choice´

2) MER CHANDISE:

The primary goal of the most retailers is to sell theright kind of merchandise and nothing is more centralto the strategic thrust of the retailing firm.

3) PRICING:Pricing is a crucial strategic variable due to its direct

relationship with a firm's goal and its interaction withother retailing elements. 4) SCALE OF OPER ATIONS:

Scale of operations includes all the supply chainactivities,

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The tax structure in India favors small retail

 business

Lack of adequate infrastructure facilities High cost of real estate

Dissimilarity in consumer groups

R 

estrictions in Foreign Direct Investment Shortage of retail study options

Shortage of trained manpower 

Low retail management skill