Professional Documents
Culture Documents
retail environment
Population
Economics
Political
Technology
Social
Demographic
and
POPULATION
DEMOGRAPHIC
DETAILS
POLITICAL
Include the laws, regulations and social pressure affecting
the retailers.
Many retailing decisions that depends on the political
development in a nations environment.
Reason for such rules is to protect the competition among
companies as well as depending customers from unruly
business activities .
ECONOMIC
Economics environment for retailing comprises the overall
economy including business cycles, consumer income and
spending patterns.
A retail cycle is pattern of the level of
business activity.
Business activity can be
move from prosperity to recession.
Consumer income refers to the amount of
household income .
individual or
Tax Impacts
Presently, there are multiple indirect taxes:
Customs duty
Central Value Added Tax (CENVAT)
Service tax
Central Sales Tax (CST)
State value added tax
Central value added tax
Entry tax
Regulatory Environment
FDI Policy with regard to Retailing in India:
FDI up to 100% for cash and carry wholesale trading and
export
trading allowed under the automatic route.
FDI up to 100 % with prior Government approval (i.e. FIPB)
for
retail trade of Single Brand products.
India allowed FDI of up to 51% in multi-brand sector.
SOCIAL
TECHNOLOGY
A) New consumerism movement in retailing .
changes .
Power of Suppliers
Power of Buyers
Availability of Substitutes
Competitive Rivalry
Retailers always face stiff competition and must fight with
each other for market share and also with unorganized
sector.
They have tried to reduce cut throat pricing competition by
offering frequent flier points, memberships and other
special services to try and gain the customers loyalty.
Thus retailers give each other stiff but healthy competition
which is evident from their aggressive marketing strategies
and segment policies.
SWOT Analysis
Strengths
Major contribution to GDP: the retail sector in India is hovering
around 33-35% of GDP as compared to around 20% in USA.
High Growth Rate: High Potential: since the organized portion
of retail sector is only 2-3%, thereby creating lot of potential for
future players.
High Employment Generator
Low Labor Cost
Technology intensive industry
Rising disposable income
Urbanization
Shopping convenience
Changing consumer habits and lifestyles
High availability of quality retail space
Weakness
Opportunities
Threats
Political issues.
Social issues.
Inflation.
Nostalgia
Lack of differentiation among the malls that are coming.
Poor inventory turns and stock availability measures.
Big players can knock-out competition
Current Independent Stores will be compelled to close
India does not need foreign retailers
Remember East India Company it entered India as trader and
then took over politically.
The government hasnt able to build consensus.
Company Name
Net Sales(Billion
$)
Country
Walmart
$421,849.00
USA
Carrefour
$120,297
French
Tesco
$94,185
UK
Metro AG
$89,081
German
$82,189
USA
$77,220.00
German
Costco Wholesale
$77,946
USA
Home Depot
$67,997
USA
Target
Aldi GmbH & Company
oHG
$67,390
USA
$58,000
German
Prime Banners
Pantaloon Retail
Pantaloons
Central
Brand Factory
Ezone
Hometown
Planet sports
Bigbazar
Foodbazar
KBs Fair Price Shop
K Raheja Group
Shoppers stop
Crossword,
Inorbit
Hyper city
Tata Group
Croma
Landmark
Poltrona Frau Group Design Center
Star Bazaar
Tashi
Westside
Centrepoint
Babyshop
Splash
Shoe Mart
Lifestyle
Beautybay
Iconic
Q Home Dcor
Candelite
Max
Parimal Group
Piramyd Megastore
Piramyd Supermarket
Jamin
Reliance
Reliance
Reliance
Reliance
Reliance
AV Birla Group
More
RPG Group
Spencers
Books and Beyond
MusicWorld
Landmark Group
Fresh
Trends
FootPrint
Digital
Shoexpress
Emax
Lifestyle
Department
Stores
SPAR
hypermarkets
Landmark
International
Footwear
Division