Why indian retail market is getting so complicated?

Posted in Community :

7 more ...

	Why indian retail market is getting so complicated? Asked by : Sanjay Chawla, Manager, Retail, Myntra Designs Pvt Ltd Industry : Retail Chain/Logistics Functional Area : India Keywords : Retail INDIAN Retail Market Getting Complicated Activity: Question posted: 09 17 2008 02:09:05 +0000, 4 answers, 415 views, last activity 07 06 2010 20:18:08 +0000	Answer

Refer 1

Rate :

Why the indian retail market is getting so complicated? Is it becauwse of too many Retail giants coming into the game?
The competition level is crossing the red line, please throw your ideas.

At the macro level - the competitive dynamics of multiple players combined with the high cost of doing business does bring in pressures to the the business model, but the real complexity is at the micro level operations, in trying to serve the modern format with the constraints of archival laws / taxes/ duties, non-existent infrastructure and poor supply chain, high pervasive pilferage, labour union, transport cartel, mathadis, political influences, lack of barcoded merchandise, high handedness of large manufacturer/ suppliers etc. etc. The business processes in practice industry-wide (o2c, p2p, c2c etc.) are ancient and not suited for the modern retail format.

These are what makes the Indian retail market overly complex - resulting in higher costs, thus translating into paper thin or negative margins.

Report Abuse

by Ajay Wadhwa, CTO/CIO, PCCPL | 04 17 2009 12:13:09 +0000

go to top

4 Answers for "Why indian retail market is getting so complicated?"

Sort by: Most Recent Top Rated

Prev1NextShowing 1 - 3 of 4

Answered by Akhilesh Majumdar, Logistics Manager, Tesco | 04 17 2009 07:18:09 +0000

Report Abuse

Not Rated

Yes indian retail market is getting complicated but in respect to the number of big players that are about to enter this market and that will certainly heat up the competition between different rertail players and the complexity will definitely arise in terms of offering lower prices and discounts to gain market share.Plans are underway for some of the world’s biggest retail stores to enter India. We did know that Wal-Mart is entering India in a huge way. Due to their lack of understanding of the Indian market structure and its complicated distribution system they have partnered with India’s Bharti group in order to gain an understanding.Stores like Fresh and Big Bazaar will see huge competition once Wal- Mart enters and that’s music to the ears of the ordinary consumer. Marks and Spencer too have been wary like Wal-Mart to step foot in India alone and have thus opted for a joint venture with Reliance.

Nothing can be more evident of India’s promise in the luxury retail sector than the annoucement made this week by Italian giant Salvatore Ferragamo that they have achieved a major landmark by entering India through signing a deal with real estate giants DLF.

So Indian retail market is the center of attraction of all the big retail players and that is certainly a good sign for the indian consumers.

Answered by RUDRESH KUMAR TOMAR, SUPERINTENDENT INDIAN CUSTOMS, MUMBAI | 09 19 2008 09:59:43 +0000

Report Abuse

Rating : +1

Not at all. The concept is not as complicated as is being made out to be. Anybody (not necessarily a marketing expert) can understand the psyche of the consumers. You can also understand it by replacing yourself in place of the ordinary consumer. The fact is that when a new concept is introduced everybody is attracted towards it. Over a period of time a comparison of sorts automatically and naturally arises which forces the consumers to look at cost-benefit ratios. This analysis results in some consumers shifting loyalties to other markets. These other markets may be other retail outlets or neighbourhood kirana stores. This is not failure of markets but evolution of better and competitive markets.Inasmuch as the costs are concerned, they are always matters of concern, not only for the customers but also for the corporates. As for Corporates, they will always look for a price at which there is an equilibrium between the value perceived and the value actually derived by the consumers. As simple as that, the retail theory is as simple as human psyche, look within yourself, answeres are readily available there.

Answered by Prashant Nair, Training Manager, Future Axiom Telecom Ltd | 09 17 2008 05:17:09 +0000

Report Abuse

Rating : +1