case study group 6 retailing in india-the impact of hypermarkets
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Retailing in India: The Impact of Hypermarkets
Group 6Anuja Hurgat 12020841069
Lourdes Soares 12020841023
Advait Bhobe 12020841116
Kartik Athavale 12020841077
Sudarshan Iyer 12020841105
Prabhjit Singh Pahwa 12020841086
Naman Agarwal 12020841031
Anant Maheshwari 12020841119
Global Retail Development Index
Organised Retail Penetration
Hypermarkets in India• Auchan• Big Bazaar• D-Mart• HyperCity• Lulu Hypermarket• Metro Cash and Carry• More Megastore• Reliance Mart• Shoprite Hyper• Spencer's Hyper• Star Bazaar• Vishal Megamart• V Mart
The Indian Retail Outlook• In India, growth declined in 2012 as well. Yet unlike in Brazil, India’s central bank
has remained focused on inflation, even at the cost of delaying economic recovery.
• Much to the chagrin of the government and many businesses, the central bank has kept the benchmark interest rate relatively high, awaiting a drop in inflation.
• Meanwhile, the economy suffered in 2012 from the impact of a global slowdown as well as the effect of weak business confidence.
• To restore confidence and set the stage for faster growth in the future, the government proposed a series of major reforms aimed at boosting productivity.
• Among these was liberalisation of foreign investment in retailing. As of this writing, it is not clear whether the government will be successful in implementing its reform agenda. Elections must take place no later than 2014, and they may help to clarify the direction of policy.
Q.1 How might a hypermarket located in India appeal to consumers and orient them to
shopping in larger stores?
• The trick lies in Differentiating themselves from local kirana stores.• If a hyper-market is offering same products, a customer will
obviously prefer kirana store over the hyper-market because of the convenience and long years of service.
• Making shopping an experience should be the differentiating factor. • This can be done by:
Understanding the consumption basket of a
consumer in an area
Introducing new products in the hyper-market along-with the
old ones
Having products catering to latest fads
and fashions
Sales people helping and assisting customers at every step of buying
process
Promotions and discounts aligned with Holidays and Festivals
Work with EDLP pricing for commodities and High-Low for apparel
etc.
Introduction of a credit policy
Q.2 Is the Indian Govt.’s willingness to spend $500 bn to improve infrastructure good news for
International Retailers? Why or why not?
• The Indian Government’s willingness to spend $500 bn to improve infrastructure is certainly good news for International RetailersA good infrastructure helps stores to decrease their costs and improve profits in the following way:
Helps reduce wastages of
perishable goods like milk and vegetables.
Can save real estate cost by opening stores on the
outskirts of a town.
Helps reduce transportation
costs.
Low inventory carrying costs because of low
uncertainties.
Will help provide healthy competition from home
grown retail stores.
IT infrastructure will help make market
forecasting and trend analysis more efficient.
Low Implied Demand Uncertainty (IDU) will result in an Efficient
Supply Chain.
Q.3 Identify the main changes that mark Indian consumers. How can international retailers learn
more about India’s youthful demographic?
The following changes have taken place in the Indian consumer demographic:
More than half of India’s current population is younger than 25
years
Due to the jobs created by IT and services boom, young consumers
have more disposable income
Due to the ever growing education scenario, students are also rising as a very prominent
consumer class
Nuclear working families have less time to shop
Points for International Retailers:
Study trends of migration of Persons of Indian Origin.
Understand changing demographics in rural and
urban areas due to urbanisation of towns and up-
gradation of villages.
Study penetration of retail product organisations in
various markets.Study indigenous competition.
Create models that include best practices of kirana stores
that appeal to the Indian consumer, like convenience.