Retail Industry: An Overview Of The Indian Retail Industry

INDUSTRY PROFILE

2.1 RETAILING:

The word ‘RETAIL’ is derived from the French word ‘retailer which means to cut a piece off’ or ‘to break bulk’. In simple terms, we can say it implies a first-hand transaction with the customer.

The term retailing involves a direct integration with the customer and the allocation of business activities from the concept or design stage of a product or offering to its delivery and post-delivery service to the customer. This industry has contributed its maximum to the economic growth of many countries and is one of the fastest changing dynamic industry in the world today.

2.2 INDIAN RERTAIL INDUSTRY: Retail industry occupies top fifth position in the world. Combining of organized and unorganized sectors, for the

WEAKNESSES:

 Due to large fixed costs the cost of operation is very high.

 Specific items are not consistently available and hence people may feel uncomfortable regarding the unavailability of the items.

 The supply chain management is poor & also the infrastructure facilities are weak.

 The store opening targets are unable to meet.

 Some of the popular clothing branded items are unavailable.

 Weak technology.

OPPORTUNITIES:

 As the population of the country has been growing and the scope of the market has also being increasing for the retail sector.

 Due to its in depth understanding of customer’s tastes & preferences they can enter into the production of various products.

 There is a growth in the income of the customers.

 Can expand their business operations at global level.

 Quality services can be provided to the customers.

THREATS:

 To tap the market potential there are many competitors coming forward.

 Shrinkage may also stand as a threat for the company.

 There is an involvement of high business risk.

 The technology has been advancing day-by-day.

2.20 FUTURE GROWTH AND