Professional Documents
Culture Documents
A. PURCHASING POWER:
An increasing number of Indian consumers are ascending the economic
pyramid to form an emerging middle class.
In 2010, there were about 470 million people in the emerging middle class.
As per PwC estimate, this segment will grow to 570 million by 2021.
B. POPULATION DEMOGRAPHICS:
India’s working population is expected to be 117 million over the next
decade as compared to China’s four million.
In the following decade, from 2020, the former will add 98 million to its
workforce, while China will contract 51 million.
C. LOW RETAIL PENETRATION:
The penetration of organized retail in India is still very low
at 6 to 8%, especially when compared to developed
nations such as the US and the UK which have retail
penetration of 85% and 80%,respectively.
A. DIGITAL STRATEGY:
Going digital is not only about e-commerce but the way interaction with
employee and customer engagement and investment in technology.
Customers are demanding an improved experience in terms of how to
search, browse products and conduct transactions online.
Organizations need to engage with customers differently, in terms of
using a range of channels.
Social media is also becoming a popular tool for consumers to educate
about products and compare brands.
For retail companies it is important to define how social media can
support sales activities throughout the various channels, especially e-
commerce. Social media analytics is the focus area for retailers.
B. RURAL RETAILING:
India’s huge rural population has caught the eye of the retailers
looking for new areas of growth.
ITC launched India’s first rural mall “Chaupal Saga” offering a
diverse range of products from FMCG to electronic goods to
automobiles, attempting to provide farmers a one-stop destination
for all their needs.”
The Godrej group has launched the concept of ‘agri-stores’ named
“Adhaar” which offers agricultural products such as fertilizers &
animal feed
C. CUSTOMER-CENTRIC APPROACH
B. HUMAN CAPITAL:
With attrition still very high in the industry, human capital management
continues to remain one of the top three agenda points for the retailer.
The attrition in the industry can be anywhere between 20 and 25% in
non-food and grocery business to as high as 60% in the food and
grocery segment.
C. SHOPPING CULTURE:
Shopping culture has not developed in India as yet. Even now
malls are just a place to hang around with family and friends
and largely confined to window-shopping
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