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Competitive scenario – identify leading players

and their strengths and Weakness in brief.


DMart has faced severe competition, mainly from Mahindra Retail Pvt. Ltd, HyperCity Retail
Ltd., Aditya Birla Retail Limited, Big Bazaar.

Mahindra Retail Pvt. Ltd.:- Mahindra Retail Private Limited operates as


retails store. The firm offers maternity wear, baby products, mother care product, kids toys
and games, and kids apparel and accessories. It started its operation in 2009 with
headquarter in Mumbai.

Strength:
1) It manufactures good quality products for Mother & Child under its private label.
2) It is now one of the largest master franchises for FirstCry.com.
3) Mahindra Group, evaluated at the US $17.8 billion being the mother brand, helped
Mahindra Retail reach out to maximum people.

Weakness:
1) Mahindra Retail Pvt. Ltd, focused mainly on kids' and mothers' products, resulting in
a narrow customer range.
2) Its market share expansion gets affected mainly due to competition faced by other
brands.

HyperCITY Retail Ltd.:- In 2017, Future Group acquired HyperCity (founded by


K. Raheja Corp in 2006). It inaugurated its first store in Malad, Mumbai, which offers 44,000
products.

Strength:
1) HyperCITY is a hypermarket that provides an international shopping experience,
where customers can shop in comfort in a giant and modern excitement place.
2) It has more than 40000 variants available.

Weakness :
1) Infrastructure costs involved in HyperCITY are Huge.
2) The success rate is too low for this format in tier-2 and tier -3 cities.
Aditya Birla Retail Limited:- In 2007, Aditya Birla moved into the retails
segment with the Trinethra Super Retail's acquisition. Subsequently, he expanded its
presence nationally under the brand "more" across supermarkets & Hypermarkets.

Strength:
1) Aditya Birla Retail Limited had won many prestigious awards.
2) It is a Zero Promoter Pledge.

Weakness:
1) Annual net profit for Aditya Birla Retail Limited is declining for the last two years.
2) Piotroski's score for the firm is low consistently.

Big Bazaar:- Kishore Biyani founded Big Bazaar in 2001 by Kishore Biyani. Reliance
Retail acquired Big Bazaar in 2020. Big Bazaar is one of the biggest Indian retail chains of
hypermarkets, discount department stores, and grocery stores.

Strength:
1) It has the most significant value retail chain in India.
2) It offers a family shopping experience, where the entire family can visit together.

Weakness:
1) Billing times are higher than usual during the season sale, and also the billing
executives also take time as they keep explaining Future Pay cards to every customer.
2) Big Bazaar has not made any presence in the international market.
Market Size

Retail Sector

Organised Unorganised
E-commerce
Sector Sector
India's retail market is estimated to achieve ~1.5 trillion by 2030, from $0.79 trillion in 2017,
driven by socio-demographic and economic factors like urbanization, income growth, and a
rise in nuclear families. Growing at a CAGR of 30%, the Indian e-commerce sector is about
to cross the $200 bn mark by 2026.
India is mainly an unorganized retail market with a percentage area of 88% to the whole retail
sector in India. Currently, the organized retail market is valued at $60 billion, whereas the
unorganized market holds the remaining. It is predicted that the organized retail market will
extend to 22-25% in 2022, reducing the cluttered retail market stake to 77%. Therefore, the
organized retail market has the future to succeed in approximately $140-160 billion.

Market Composition of Retail sector in India

3%
9%

Unorganised
Organised
E- commerce

88%
Further Organized sector, the composition is shown below:

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