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Saksham Case Study

Political factors like FDI policies and GST introduction are supporting retail growth in India. The large youth population and rising incomes are increasing consumer demand. However, political ambiguity and weak infrastructure pose threats. Technology advancement is helping retailers improve operations through IT and customer service, while opportunities exist in India's growing economy and consumer base.

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161 views9 pages

Saksham Case Study

Political factors like FDI policies and GST introduction are supporting retail growth in India. The large youth population and rising incomes are increasing consumer demand. However, political ambiguity and weak infrastructure pose threats. Technology advancement is helping retailers improve operations through IT and customer service, while opportunities exist in India's growing economy and consumer base.

Uploaded by

saksham
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Closing case: What Lies In Store For The

Retailing Industry In India?

Presented By:-
Saksham Agarwal
C-37
Factors contributing towards the growth of retail sector in India

• Political Environment
• Economic Environment
• Socio-Cultural Environment
• Technological Environment
• International Environment
Political Environment

• Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in
online retail of good and services.
• About 51% FDI in multi-brand retail.
• Political parties are often quite offensive towards the growth of the organized
retail business in order to protect the unorganized business.
• GST was introduced as a form of single unified tax system.
• To provide a level-playing field to stakeholders, the government is planning to
synchronize polices of retail, FMCG and e-commerce within a single policy
framework.
Economic Environment

• Increase in population leading to growing size in consuming class.


• Increase in per capita income leading to increase in purchasing power.
• India’s impressive growth rate.
• The 18% GST on air freight of fresh vegetables which was removed
recently.
Socio-cultural Environment

• Change in age profile of buyer acts on the growth of the organized


retail sector.
• About 70% of the Indians are below 36 years of age. About 7 million
people in their mid 20s are earning over US $ 5000 per year.
• Indian consumers are now shifting more towards premium brands by
paying more for value and service.
• Rising middle class population are developing preferences for specific
brands.
• Malls are presented in way to all the buyers that is not just a place for
shopping but also a place to hangout and have fun.
Technological Environment

• Progression of IT is helping in growth of retail sector by providing


quick information processing, decision making and security of
transaction.
• IT helps in efficient inventory tracking using EDI, UPC, virtual shelves
and automatic replenishment.
• IT also has the potential for efficient customer service in the form on
CRM and POS terminals.
EOPT
Opportunities
• Positive growth rate
• Growing size of consuming class
• Increase number of youths and increase in income level
• Better supply chain management
• Advancing technology
Threats
• Political ambiguity
• Regulatory issues
• Weak supply system
• Buyer psychology
Opening case
• Opportunities –
• High demand potential
• Exports of agricultural and food processing industry have been on rise
• Diverse agro climate conditions
• Younger population, urbanization, changing lifestyles, increasing standard of living, increasing
incomes
• Threats-
• Limited access to technology (lack of food processing units)
• Lack of private initiative
• Inadequate infrastructure of distribution and preservation of goods (lack of cold storage)
• Conservative government policies
Closing case
Q1- opportunities:-
• Highest no of retail outlets
• Negotiable investment in land and assets
• Awareness of Indian consumer to the convenience of modern shopping
• Bulk buying by the consumers
• Political environment supports the organized retailing industry in India
Threats:-
• High cost to setup major retail outlets
• Distribution can become a nightmare as the country has a vast geographical size

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