Organized Retail Industry in India
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : MKTG114
Case Length : 24 Pages
Period : 1995 - 2005
Pub Date : 2006
Teaching Note :Not Available
Organization : Pantaloon Retail, Titan Industries, Foodworld, Trent, Shopper's Stop
Retail
Countries : India
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
Retail in India - A Challenge
The retail industry in India is growing at a significant pace. However, there are several problems faced by the industry. The major challenges for the organized sector include:
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• Taxation laws that favor small retailers.
• Different structure of sales tax in different states.
• Multi-point octroi collection.
• Lack of trained workforce.
• Problems of supply chain and logistics.
• High cost of real estate.
• Limited land available at prime locations.
According to analysts, for this industry to thrive, Indian retailers need to emulate worldwide retail practices such as accuracy in financial reporting, increased levels of corporate governance and greater accountability among employees. Retailers need to use the latest techniques to enhance the consumer's shopping experience...
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The Road Ahead
According to the 2005 Global Retail Development Index, a report by AT Kearney, India tipped Russia from the #1 spot as the most attractive destination for retail investment. At a retail convention held in September 2005 in Mumbai, European and the US experts urged the Indian government to lift the ban on FDI and allow the entry of foreign retailing companies.
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During the convention, Bernd Hallier said, "In Germany and Europe we have reached saturation. India and Russia are emerging markets, and in India there is an explosion in the economy. It's a market for big investment."
Several retail companies such as Wal-Mart and JC Penney of the US, Germany's Metro AG and Hong Kong's Giordano International Limited have expressed interest in entering the Indian market.
Since 2000, the Indian economy has been growing more than 6% on an average and has a middle class that is estimated to be as large as 300 million people (Refer Exhibit XVIII for fact sheet about India)... |
Exhibits
Exhibit I: Share of Organized Retailing Across the Globe
Exhibit II: Top Retailers in the World
Exhibit III: Share of Organized Retailing in India
Exhibit IV: Contribution of Different Sectors to Indian Organized Retailing Industry (%)
Exhibit V: Shopping Trends in India
Exhibit VI: Household Income Across India (%)
Exhibit VII: Leading Job Generating Sectors (2004)
Exhibit VIII: Number of Small Towns in India
Exhibit IX: Different Formats of Retail Outlets
Exhibit X: Break-Up of Retail Stores in India (2003)
Exhibit XI: PRIL's Financial Performance (2000-05)
Exhibit XII: Business Performance of Big Bazaar and Pantaloons (2004)
Exhibit XIII: Contribution of Business Sectors to RPG Group's Turnover
Exhibit XIV: Break-Up of Music World Store Formats (2003)
Exhibit XV: Financial Performance of Trent Limited (2001-05)
Exhibit XVI: Financial Performance of Titan Industries (2001-05)
Exhibit XVII: Financial Performance of Shopper's Stop
Exhibit XVIII: Fact Steet About India
Exhibit XIX: Marketer's Choice of Top 20 Small Towns
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