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India represents a complex and competitive retail market due to the combination of informed consumers and increasing consumption. While India is an attractive market for global retailers, there are still issues hindering growth such as inadequate infrastructure and policy challenges. The critical challenges facing Indian retailers are addressing consumer value and core issues preventing the next level of industry maturation. There are 10 overarching issues retailers view as major impediments, including underdeveloped supply chains, inadequate utilities and IT infrastructure, limited human resources, and insufficient government incentives.
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![An Overview of Indian market:<br />India is currently facing the world’s most dynamic combination,ogf highly informed and demanding consumers on one hand, and of rapidly increasing consumption levels across various retail product categories and geographies on the other. Growing consumer demands and the consequent response of leading business have created a more complex and competitive marketplace-one that requires each firm to be more adaptive to customer needs and more aggressive at exploiting their unique capabilities to meet those needs. In the context of Indian consumer products and retail companies, this spells multiple challenges and opportunities for them.<br />Having emerged as the World’s most attractive market for global retailers, India still faces alarming issues that pose a serious hurdle to growth opportunity that the retail industry promises for the country’s economic progress. The overall positive outlook of the present business conditions is tempered by the fact that the country is grappling with severe infrastructure and policy issues. Cold chain, warehousing and logistics infrastructure will fast become unmanageable challenges for India, if pro-active action is not taken soon. The critical challenges facing the Indian retail industry in its quest to continually add value to the consumer are twofold.<br />Some of the issues need to be addressed:<br />A retail consumer in India today still does not enjoy the value that organized retail has brought to the table in some international settings. E.g. Groceries sold in hypermarkets are still priced higher in comparison to those sold by local street vendors, parking and traffic at large format stores continues to be a challenge, and it is not easy finding experienced and polished sales floor associates. These symptoms are caused by some core issues that are preventing the next level of maturation in the Indian retail industry.<br />There are 10 overarching issues that most retailers view as major impediments to growth and the associated escalation in “consumerism”. These issues are:<br />,[object Object]](https://image.slidesharecdn.com/scm-101216094135-phpapp02/85/Scm-1-320.jpg)
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Walmart and Bharti formed a joint venture partnership to enter the retail market in India. This presented many opportunities due to India's large retail market and projected growth. However, the partnership would also face significant challenges working in India's market which is dominated by small, unorganized retailers and lacks modern infrastructure. The joint venture established wholesale cash-and-carry stores while working to overcome challenges around regulations, opposition, supply chain and cultural factors to transform retail in India.
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Wal-Mart is the world's largest retailer, operating over 10,000 stores in 27 countries. It was founded in 1962 in Arkansas and has since grown significantly through global expansion. Wal-Mart offers a one-stop shopping experience for various product categories along with grocery. While it has had success in some international markets through acquisitions and partnerships, it also faced challenges breaking into other markets like Germany. In India, Wal-Mart has a joint venture with Bharti Enterprises operating wholesale cash-and-carry stores under the Best Price brand. Wal-Mart sees potential in India given the growth of the middle class and emerging retail market, but also faces restrictions and resistance in fully entering the country.
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The Indian retail industry is growing rapidly, with the overall retail market expected to reach Rs. 47 trillion by 2016-17. Retail currently accounts for 20% of India's GDP and 8% of employment. While the unorganized sector still dominates retail in India, organized retail is growing, especially in the food and grocery, apparel, consumer electronics, and mobile segments. However, the industry faces many challenges, including competition from unorganized retailers, availability and cost of retail space, supply chain and logistics issues, and a lack of skilled labor. Successful retailers are leveraging IT to manage inventory and customer relationships.
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This document discusses the challenges facing organized garment retailers in India. It identifies four main categories of challenges: 1) sourcing challenges related to managing product variety and costs, 2) locational challenges in acquiring prime real estate locations, 3) environmental challenges such as competition from unorganized retailers and high real estate costs, and 4) customer challenges like meeting varied customer expectations and maintaining transparency. The study analyzed these challenges through literature reviews, expert consultations, and statistical modeling to understand how organized retailers can better address the issues.
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This presentation gives a brief description of India's retail industry, focussing on organised and unorganised retail industry. then it details out the partnership between Bharti and Walmart. How a foreign player( best in the world) is making entry inot Indian market and why so?
What are the benefits out of it ?
What are the problems with indian retail industry that foreign players can resolve?
Why is the entry of foreign players difficult?
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The retail industry in India has evolved from traditional barter and kirana stores to modern retail formats like supermarkets and hypermarkets. It currently accounts for 24% of India's GDP and is the fifth largest retail market in the world, though organized retail makes up only 5-7% of the sector. Major players in Indian retail include Pantaloons, Shoppers Stop, and Trent. The industry faces opportunities for growth from rising incomes and urbanization, but also challenges from a fragmented supply chain and lack of infrastructure.
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The document discusses the growth of organized retailing in India. Some key points:
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This document discusses how automation can help retailers address challenges in their supply chains, specifically in distribution centers and warehouses. It begins by providing context on the growth of the Indian retail industry and trends driving changes. It then outlines typical retail supply chain and warehouse operations before identifying key challenges such as high SKU volume, fragmented supply chains, and shortage of skilled labor. The document explains how automation can help with tasks like sorting, order fulfillment, and managing changing requirements. Finally, it provides examples of how automation solutions like sortation and goods-to-person picking can help a retailer improve efficiency and productivity.
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The summary provides an overview of the Indian retail sector. Key points include:
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The Indian retail sector is undergoing a transformation driven by changing demographics and rising incomes. Organized retail is growing as consumers aspire to modern formats that offer a wide range of products under one roof alongside entertainment options. While the sector remains highly fragmented with millions of small stores, large retailers are expanding across the country offering value and lifestyle products. Key formats include department stores, supermarkets, hypermarkets and specialty stores. Challenges include regulations around foreign investment and a lack of infrastructure and trained staff.
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The retail industry in India is large and growing rapidly. It is currently the fifth largest retail market in the world and is expected to grow by 25-30% annually. Retail has two forms - organized which includes stores, outlets, and supermarkets, and unorganized which includes street vendors and markets. While organized retail currently makes up only about 4% of the market, it is projected to increase substantially over the coming years, driven by factors like rising incomes, urbanization, and demand for global brands. The industry faces both strengths like a growing economy and labor pool, and weaknesses such as lack of infrastructure and retail management skills.
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This document provides a summary of the challenges facing the Indian retail industry in 2013. It discusses factors such as disappointing footfalls, margin contraction, delays in retail expansions, and weaknesses in the supply chain that are negatively impacting retailers. The document also provides strategies for retailers to cope with the economic slowdown, such as improving internal efficiencies through cost cutting, better understanding consumer behavior, developing alliances, and innovating to adapt to the changing market conditions. It concludes by outlining the future outlook for the Indian retail sector.
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The document discusses the Indian retail sector, including its evolution, size, growth rate, major players, and future direction. Some key points:
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Scm
- 11. Co-ordinate with wholesale suppliers and independent producers to make a product available to customers both current and the soon to be released.
- 12. Provide two-day delivery on most orders.
- 13. Allow customers to query the status of their purchases and track their own shipments.
- 14. Align, supply and delivery to other functions such as marketing, sales and customer service.