retail structure in asia
TRANSCRIPT
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RETAIL STRUCTURE
IN ASIA
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WITH REFERENCE TO
INDIA, CHINA &SINGAPORE
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INDIA - RETAIL
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FEATURES:
13% contribution to GDP.
10% employment of total work force.
Rs.350 million of the total revenues. 2% share of organized retailing in India.
Expected to grow stronger than GDP growth
in the next 5 years. RPG Spencer, Future group, Food Bazaar,
Reliance, Subhiksha etc.
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MODERN RETAIL- SWOT ANALYSIS
STRENGTHS:
The consumers get a better product at
cheaper price, value for their money. Employment opportunities
Farmers get better prices for their products
Increase in expenditure for luxury items
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Ranked second in Global Retail Development
Index of 30 developing countries
Indian organised retail industry reached atRs.1,30,000 crore in 2006.
annual growth of departmental stores is
estimated at 24%
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WEAKNESS
Retail companies have to pay high rentals
which are blockage in the turn of profits.
96% of the Small size outlets are lesser than500 sq.ft.
The volume of sales in Indian retailing is also
very low.
100% Foreign Direct Investment (FDI) is not
permitted in retailing in India
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OPPORTUNITIES:
Rural retailing is still unexploited Indianmarket.
It can become one of the largest industries
in terms of numbers of employees andestablishments.
Indian retail industry has come forth as one
of the most dynamic and fast paced industry
with several players entering the market.
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THREATS:
Lack of uniform tax system for organized
retailing.
Labour rules and regulation are also notfollowed in the organized retails.
The sector is unable to employ retail staff on
contract basis.
Difficult to target all segments of society.
Heavy initial investment
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RETAILERS IN INDIA
Next retail India
Ltd
Vivek Limited
PGC Retail -T-Mart India
RPG Retail- Spencers Hyper, SpencersSuper, Daily & Fresh
Pantaloon Retail
The Tata Group
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Lifestyle
Nilgiris
Subhiksha
Vishal Retail Reliance Retail: Reliance Fresh, Reliance world
Aditya Birla Group more
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CHINA - RETAIL
Textile and Apparel Exports:
29.38% of the value of total Chinese exports in
1994 In 1994, China was the leading apparel
exporter in the world, reaching US$23.722
billion.
In 1996, Chinas total apparel imports were
US$1044.48 million.
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Annual income ( Middle class)
RMB 60,000 to 500,000
US$ 7,792 to 65,790Stable, high income
More brand conscious, less price sensitive
Want better shopping environment, highquality goods and services
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Foreign access gradually permitted in mid-
1990s, restrictions eased.
Market-oriented economy, with existingpolitical framework.
Cultural differences between regions and
cities.Beijing: conservative and traditional
Shanghai: Progressive and open to overseas trends
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China retail sales growth 15.2% year on year.
Major global retailers maximize profit throughinnovation
Technology changes and store format to improve productivityand lower costs.
Moving to demand-led innovations.
All items sold in China must be marked in the
Chinese language Certain products require a safety certification
China Compulsory Certification (CCC) mark
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TIERS OF CHINESE CITIES
Tier 1 most developed cities
Tier 2 fastest growing cities
Tier 3 of regional importance Tier 4 and beyond still traditional
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Internet shopping 7% of 18- to 24-year- olds prefer it
Only 1% of over 40-year-olds
Essential PR tool to younger, more affluent
Mall shopping Strongly influenced by city size, more than income
Customers in four largest cities prefer it
Only 20% of tier-3 city inhabitants
Consumers in highest segment, annual incomeover RMB 250,000, are most interested inWestern brands
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CHALLENGES OF RETAIL MNCS IN
CHINA
Consumer Markets and Cultures
Logistical and Supply Networks
Real Estate Markets and Land Use Regulation
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WESTERN RETAILERS IN CHINA
SUCCESSFUL PENETRATING THE MARKET
SINCE THE 1980S
Wal-Mart
Carrefour
IKEA Best Buy
Nike
Subway McDonalds
KFC
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CARREFOUR IN CHINA
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SINGAPORE
RETAIL
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MAJOR RETAILORS
Uniqlo (mass fashion)
Wendys (F&B)
Neulook (fashion & accessories) Berschka (fashion)
Etude (beauty & cosmetics)
Chaumet (luxury jewellery) Herve Leger (luxury fashion) etc
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ASIA
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RETAILING AREAS IN ASIA
NORTH ASIA
Japan
Tokyo
Ginza
Omotesando
Shibuya
Shinjuku
Harajuku
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CHINA
Beijing
ShanghaiGuangzhou
Beijing
Hong Kong
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SOUTH & SOUTHEAST ASIA
Singapore
Thailand - Bangkok
Philippines - ManilaIndonesia - Jakarta
India - New Delhi
Vietnam - Ho Chi Minh City
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