CHAPTER 1

INTRODUCTION

1.1 Introduction of Retail Industry

The Indian retail industry is divided into organised and unorganised sectors. Organised
retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets
and retail chains, and also the privately owned large retail businesses. Unorganised retailing,
on the other hand, refers to the traditional formats of low-cost retailing, for example, the local
kerana shops, owner manned general stores, pan/beedi shops, convenience stores, hand cart
and pavement\vendors.

India’s retail sector is wearing new clothes and with a three-year compounded annual growth
rate of 46.64 per cent, retail is the fastest growing sector in the Indian economy. Traditional
markets are making way for new formats such as departmental stores, hypermarkets,
supermarkets and specialty stores. Western-style malls have begun appearing in metros and
big cities alike, introducing the Indian consumer to an unparalleled and new shopping
experience.

The Indian Retail Industry is the largest among all the industries, accounting for over 10 per
cent of the country's GDP and around 8 per cent of the employment. The Retail Industry in
India has come forth as one of the most dynamic and fast paced industries with several
players entering the market.

Retailing in India is gradually inching its way toward becoming the next boom industry. The
whole concept of shopping has altered in terms of format and consumer buying behaviour,
ushering in a revolution in shopping in India. Modern retail has entered India as seen in
sprawling shopping centres, multi-storied malls and huge complexes offer shopping,
entertainment and food all under one roof. The Indian retailing sector is at an inflexion point
where the growth of organized retailing and growth in the consumption by the Indian
population is going to take a higher growth trajectory. The Indian population is witnessing a
significant change in its demographics.

Retail and real estate are the two booming sectors of India in the present times. And if
industry experts are to be believed, the prospects of both the sectors are mutually dependent
on each other. Retail, one of India's largest industries, has presently emerged as one of the
most dynamic and fast paced industries of our times with several players entering the market.
Accounting for over 10 per cent of the country's GDP and around eight per cent of the
employment retailing in India is gradually inching its way toward becoming the next boom
industry

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries
due to the entry of several new players. Total consumption expenditure is expected to reach
nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10 per
cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the
employment. India is the world’s fifth-largest global destination in the retail space.

India is the world’s fifth largest global destination in the retail space. In FDI Confidence
Index, India ranks 16th (after U.S., Canada, Germany, United Kingdom, China, Japan,
France, Australia, Switzerland and Italy).

1.2 Market Size of Retail Industry in India

Retail industry reached to US$ 950 billion in 2018 at CAGR of 13 per cent and expected to
reach US$ 1.1 trillion by 2020. Online retail sales are forecasted to grow at the rate of 31 per
cent year-on-year to reach US$ 32.70 billion in 2018. Revenue generated from online retail is
projected to grow to US$ 60 billion by 2020.

Revenue of India’s offline retailers, also known as brick and mortar (B&M) retailers, is
expected to increase by Rs 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20.

India is expected to become the world’s fastest growing e-commerce market, driven by robust
investment in the sector and rapid increase in the number of internet users. Various agencies
have high expectations about growth of Indian e-commerce markets.

Luxury market of India is expected to grow to US$ 30 billion by the end of 2018 from US$
23.8 billion 2017 supported by growing exposure of international brands amongst Indian
youth and higher purchasing power of the upper class in tier 2 and 3 cities, according to
Assocham.
1.3 EVOLUTION OF RETAIL IN INDIA

The origin of retailing in India can be traced back to the emergence of Kirana stores and
mom-and-pop stores. These stores used to cater to the local people. Eventually the
government supported the rural retail and many indigenous franchise stores came up with the
help of Khadi & Village Industries Commission. The economy began to open up in the1980s
resulting in the change of retailing. The first few companies to come up with retail chains
were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymond’s, etc. Later Titan
launched retail showrooms in the organized retail sector. With the passage of time new
entrants moved on from manufacturing to pure retailing. The evolution of retailing in India
can be better understood as:

 Early Eighties
 'Retailing' in India was synonymous with peddlers, vegetable vendors neighbourhood
kerana stores (small grocery stores) or sole clothing and consumer durable stores in a
nearby town.
 These retailers operated in a highly unstructured and fragmented market. Very few
retailers operated in more than one city.

 Before 1990
 Organized retailing in India was led by few manufacturers owned retail outlets
mainly from the textile industry, Ex: Bombay Dyeing, Raymond’s, S Kumar’s, and
Grasim.
 Later, Titan successfully created an organized retailing concept and established a
series of showrooms for its premium watches.

 Nineties:
 Liberalization of the Indian economy led to the dilution of stringent restrictions.
 Entry of few multi-national players like Nanz into the Indian market.
 Changing profile of the Indian consumers,
 Increasing wages of the employees working in Greenfield sectors with higher
 purchasing power.
 Setting up of retail chains by domestic retailers like Cotton World (Mumbai),
Nirula's (Delhi) and the Viveks and Nilgiris in the South.

 The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in
food and FMCG; Planet M and Music World in music; Crossword and
Fountainhead in books.
 1995 onwards saw an emergence of shopping centres, mainly in urban areas,
with facilities like car parking targeted to provide a complete destination
experience for all segments of society
 Emergence of hyper and super markets trying to provide customer with 3 V’s -
Value, Variety and Volume.
Sources: secondary data

1.4 Formats of retail in India

Sources: secondary data

The concept of retail as entertainment came to India with the advent of Shopping malls.
Shopping malls emerged in the urban areas giving a world-class experience to the customers.
Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the
continuous improvement in the supply chain management, distribution channels, technology,
back-end operations, etc. this would finally lead to more of consolidation, mergers and
acquisitions and huge investments.

1.5 ORGANIZED V/S UNORGANIZED RETAILING

Unorganized retailing/traditional retailing

According to the National Accounts statistics of India ‘the unorganized sector includes units
whose activity is not regulated by any statue or legal provision, and/or those, which do not
maintain regular accounts. In the context of retail sector, it could therefore be said to cover
those forms of trade which sell an assortment of products and services ranging from fruits
and vegetables to shoe repair. These products or services may be sold or offered out of a
fixed or mobile location and the number of people employed could range between 1020
people. Thus, the traditional formats of low-cost retailing, for example, the neighbourhood
Baniyas, the local kirana shop, owner manned general stores, provision stores, flea (Thadi)
markets, hand cart and pavement vendors, the vegetable, fruit vendor, Mom and Pop Stores,
local sabji mandi, weekly haats, general readymade garment shop or a footwear shop, general
electronic shop etc. the, the paanwala, the cobbler, etc. would be termed as the unorganized
sector.

Organized or modern retailing

Organized retailing refers to trading activities undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, departmental store, discount stores, drug stores, factory
outlets, and also the privately owned large retail businesses.

The organized retail stores are characterized by professionally managed stores or large chain
of stores, providing goods and services that appeal to customers, in an ambience that is
encouraging for shopping and agreeable to customers. For example: Vishal Mega Mart, Big
Bazaar, Wills Lifestyle, Shoppers Stop, Reliance Trends, Spencer’s, Reebok, Nike, Catmos,
Lilliput, McDonald’s, Pizza Hut, Barista, Cafe Coffee Day, Koutons, Cotton County, Peter
England, Titan, Raymond’s, Sony, Samsung, Next, LG, Apollo Pharmacy, etc.
1.6 Growth of the Indian retail industry

Sources: secondary data

Retail industry has now attracted global attention with more investment opportunities
positioning India as the second most attractive destination for the retail investment
(www.atkearney.com). The latest government policy on Foreign Direct Investment (FDI)
allowing 100 per cent FDI in single brand and multi- brand retail has created a favourable
climate for sustained growth. The inclusive growth policy of the government has primary
contributed for the changing environment and vibrant growth of the sector. Nuclear families,
higher education level and double income, easy access to credit, exposure to various brands
and trendy products, and availability of retail space are the important factors for such
phenomena (www.deloitte.com). The business houses understanding the retail industry
environment have been focusing on both retaining the existing customers and alluring new
ones to increase the market size. Therefore, customer satisfaction holds the key and is a major
challenge in a competitive environment
1.8 Reasons of Growth Retailing in India.

1. Organized retail versus unorganized retail:

Growth of organized retailing in India reveals the success of retail sector in India over the
past five years. The rapidly increasing middle class in India seek more value in terms of
improved assortments and quality, one-shop experience, financing options, payment
flexibility, return and exchange policies, trial rooms for clothing products and competitive
prices. This has fuelled the scope for organized retailing (see figure 1.19) to tap recent rich
market. Further, changes in the taste, lifestyle and shopping attitude are the reasons for the
growth of organized retailing in India.

Sources: secondary data

2. Emergence of nuclear family concept and changing age profile:

India has witnessed a change in the age and income pattern over the last decade, which is
likely to continue in the years to come. India is believed to have more young population as
compared to US and China. Two-thirds of Indian population is under 35, with the median age
of 23 years, as opposed to the world median age of 33. India is home to 20 per cent of the
global population under 25 years of age.

Sources: secondary data

A country having young population is the foremost choice of each global retailer and tends to
have higher aspirations and more spending power once entering to earning phase. Further, the
disintegration of joint families and emergence of nuclear (small) family concept has led to
increased demand for not only residential flats but for items of daily use. Declining interest
rates and decreased dependence on loans, has led to retail industry to grow.

3. Increased disposable Income:

With the growth of income levels and more than one earning members households, the Indian
average disposable income is growing fast resulting in enhance demand for goods and
services. Energized by ranking as the fourth largest economy in terms of Purchasing Power
Parity (PPP), next only to United States, Japan and China, India is expected to outpace Japan
by the year 2010 to become world’s third largest economy.

Further, with 54 per cent of the Indians aged below 25, the young Indian consumer is buying
big to look good and feel good. These changes are visible in the consumption growth of
consumer durables. To quote live examples, the number of households having cars, dish
TV/cable TV subscribers, cell phone users, airline travellers has increased considerably over
the last decade.

Sources: secondary data

Purchasing power of Indian urban consumer towards Apparels, Cosmetics, Shoes, Food,
Watches, Jewellery, and Beverages, is not only growing but are slowly becoming lifestyle
products that are widely accepted by the urban masses. Hence Indian retailers need to
leverage this opportunity and should aim to grow by diversifying and introduce new formats.

4. New business opportunities:

With the rise of upcoming business sectors like IT, BPOs, LPOs, KPOs and engineering
firms, medical tourism etc., employment opportunities are increasing resulting in increased
purchasing power and demand for goods and services. With a fitting combination of a low-
cost and highly skilled labour force, today India is considered as one of the ideal outsourcing
destinations of the world.

6. Fast changing Indian consumer:

Today not only the urban but rural customer is becoming aware of international styles and is
inclined to acquire assets. Today he is more discriminating and demanding than ever before.
Shopping is not need-based but a family experience and reason to joy. Greater level of
education further has changed his mindset, resulting in increased tendency to spend.

Today, customers buy most of the things not because they need them but want to show them
off as a matter of high standard of living. Thanks to debit and credit cards, Indian consumers
are crazy and are prepared to even spend out of their pockets.

LPG (Liberalization, Privatization and Globalization) of the Indian economy has led to the
opening up of the market for consumer electronics, consumer durables and food products. It
helped the MNCs brands like McDonald’s, Nestle, Sony, Samsung, Panasonic, Nokia etc to
foray into the fast-increasing youth populated country with wide range of assortments and
alternatives to consumers.

7.E-Commerce:

The increasing use of computers and World Wide Web in most of the business spheres are
making the Indian shoppers more accessible to the growing influences of national and
international retail chains. Reach of Dish TV channels has helped in creating awareness about
local and global products. About forty eight percent of Indian population is young and below
20 and is expected to increase by fifty five percent by 2015. This young population is eager to
learn computers, watch more than sixty TV channels and present the largest tendency to
spend is undoubtedly contributing to the retail success in the country.
Sources: secondary data

8. Availability of Skilled Labour:

Plentiful raw material, low cost skilled labour, presence across the value chain and a large
and growing domestic market presents the strengths of the Indian retail industry. India today,
has an enormous resource of talent and skilled labour. Over 38.5 million students were
enrolled in about 150,000 pre-college institutes and over 11.7 million in 14,500 higher
education institutions in 2010-11. With English being the language for business in India, the
language skills of the Indian workforce score higher than that of emerging economies.
1.9 5 Retail stores
1.9.1 D-MART

Type Public company

Industry Retail
Genre Supermarket
Founded 15 May 2002
Founder Radhakrishnan Damani
Headquarter Anjaneya Cooperative Housing Society Ltd,
Orchard Avenue, Powai Mumbai
Maharashtra.

Number of locations 196 (December 2019)

Area served India

Website
demartindia.com
Sources: secondary data
Product Specialty
Foods dairy, staples, groceries, snacks, frozen products, processed foods, beverages &
confectionary and fruits & vegetables • Non-Foods (FMCG) home care products, personal
care products, toiletries and other over the counter products • General Merchandise &
Apparel Non-Foods (FMCG) home care products, personal care products, toiletries and other
over the counter products Foods dairy, staples, groceries, snacks, frozen products, processed
foods, beverages & confectionary and fruits & vegetables bed & bath, toys & games,
crockery, plastic goods, garments, footwear, utensils and home appliances.

D-Mart Outlet by City (India)

D-mart had 170 stores across India in the states of Maharashtra, Andhra Pradesh, Telangana,
Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu,
Karnataka and Punjab.

D-Mart Outlet by Locality (Mumbai)

Malad west, mulund, Kandivali west, airoli, thane, Mira road, Dahiser, New Panvel,
Dombivali West, Versova, Bhayendr West, Kharghar, Kasarvadavali, Kalyan, Andheri east,
Vihar, koper kharine, Kalyan, kalamboli, Vasai, mira road, powai, virar west, thane west,
nalasopara east, kanjurmarg west, sanpada, ambarnath, boiser, ghansoli, virar east, dombivali
east. The Count of availability of D Mart Outlet is 30 plus localities around Mumbai.

1.9.2 BIG BAZAR

Type Private
Industry Retail
Founded 2001: 19 years ago,
Founder Kishore Biyani
Headquarter Mumbai Maharashtra, India
Service Future pay
 Number of locations 295 stores 
Area served India
Website Bigbazaar.com
Sources: secondary data

Big Bazaar is also the parent chain of Food Bazaar, Fashion at Big Bazaar (abbreviated as
fbb) and eZone where at locations it houses all under one roof, while it is sister chain of retail
outlets like Brand Factory, Home Town, Central, eZone, etc. It’s founded in 2001; Big
Bazaar is one of the oldest and largest hypermarkets chains of India.

Big Bazaar Outlet by City (India)

Agra, Ahmedabad, Allahabad, Ambala, Bangalore, Bhubaneshwar, Orissa, Bhubaneswar,

Kolkata, Chennai, Delhi, Durgapur, Gurgaon, Haldia, Hyderabad, Indore, Kolkata, Lucknow,
Mangalore, Nagpur, Nasik, New Delhi, Pune, Rajkot, Sangli, Surat, Vizag. Count of India,
housing about 250+ stores in over 120 cities and towns across the country.

Big Bazaar Outlet by Locality (Mumbai)

Lower Parel, Mumbai Central, Santacruz (West), Andheri (East), Ghatkopar, Kandivali
(East), Vashi, Mulund, Bhayandar (West). the Count of availability of Big Bazaar Outlet is 9
localities around Mumbai.

1.9.3 Reliance fresh

Type Division
Industry Retail
Founded 2006
Founder Mukesh Ambani
 Headquarter Mumbai Maharashtra, India
Number of locations 700+
Area served 93 cities India
Website Relianceretail.com
Sources: secondary data

Reliance Fresh now operates 1,691 stores across the country. These stores sell fresh fruits and
vegetables, staples, groceries, fresh juice, bars and dairy products. In addition, RRL has also
ventured into the retail optics business and has opened about 100 stores in India in a partnership with
grand Vision and it also owns the istore, which is a one-stop-shop for all Apple products and services.

1.9.4 Hyper City

Type Hypermarket
Industry Retailing
Founded 2006
Founder Kishore Biyani
Headquarter Mumbai, Maharashtra
Area served India
Number of locations 17
Parent Future group
Website hypercityfresh.com/
Sources: secondary data

Hyper city retail (India) Limited operates a chain of supermarket stores. the Company retails
groceries, fruits, vegetables, home and personal care, apparels, footwears, home appliances,
decoration sports, toys, stationery, kitchen accessories, and gift products. Hyper city Retail
serves clients in India.
1.9.5 Nature's Basket 

Type
Subsidiary of Spencer's Retail Ltd 

Industry Food& grocery

Founded India 2005
Headquarter Mumbai, Maharashtra
Key people Avani davda (managing director)
Area served India
Parent Spencer’s retail
Website Naturalbasket.com
Sources: secondary data

Nature's Basket was founded in 2005 as a "world food store. and now operates 36 physical
stores in cities such as Mumbai, Bengaluru, Pune and Kolkata.

The retail chain sells fresh vegetables, fruits, cold cuts, meats, cheese, organic foods and
dairy products. It also operates as an online grocery store and mobile app platform which
caters to 125 cities across India. Nature’s Basket acquired Mumbai-based online grocery store
Ekstop.com in 2015 to strengthen its online presence across 125 cities in India. in 2017, the
company rebranded as a "Daily Food Delights" store, giving emphasis as a fresh quality
neighbourhood store. the company was acquired by Spencer's Retail Ltd from Gordrej Group
in May 2019 in an all cash deal.

CHAPTER 2
 LITERATURE REVIEW

Rama Venkatachalam and Arwah Madan (2012) in their have highlighted on level of
prices, quality of fresh groceries & availability of exotic fruits and vegetables, display &
cleanliness and hygiene, home delivery & credit facility provided by both the organized and
unorganized retailer. Change in customer preference has been noticed while shopping fresh
grocery from unorganized or organized retailers. The author has also mentioned that
organized retailing is doing the right things to sustain, survive and grow.

Mitul Delia, Bhavesh Parmar and Rd. K. K. Patel (2012) has focused in their study titled
impact of organized retailers on unorganized retailers, the finding suggests that there is a
decrease in no. Of footfalls of the customer visiting unorganized retail due to emergence of
more organized retailers. another finding of the paper suggest that majority of middle class is
buying from unorganized retailers.

Cherukuri Jayasankaraprasad ( 2010) has studied the multiple discriminant analysis for
the various existing retail formats considering physical surroundings (ambience, store design
and visual merchandising), task definition (regular purchase, purchase in large quantities and
getting ideas / knowing new products), perceived risk (time, financial, and physical),
temporal aspects (time spent and convenient timing hours), and social interactions and
experiences have significant effect on supermarket and hypermarket store format choice
decisions.

According to Manish Jain, Shilpa Raghuvanshi, Anamika Hardia and Abhiruchi Arora
availability and variety, service, ambience/show of the store, discounts and price, quality of
goods and promotion are the major factors which are considered and preferred by customers
while choosing an organized retailer for shopping

2.2 – Gap of the Study

Lots of Research has been done regarding supermarket retailer which is customer perception,
store loyalty intention, customer expectation regarding retail outlet, customer preference on
few organized supermarkets, etc. but no research study done in retail strategies especially in
the region Mumbai.
 CHAPTER 3
RESEARCH METHODOLOGY

3.1 Research Problem

Retail industry has now attracted global attention with more investment opportunities
positioning India as the second most attractive destination for the retail investment Retail
industry is a fourth most dynamic and fast growing with several players in entering the core
market and each players and rivals are playing towards different kinds of strategy to penetrate
of customers or market also. So, in order to understand working day to day operations
activity most effective strategy of each rivals shopping customer frequency has conduct
research on “A Study on retail in deatail in region of Mumbai.”

3.2 Objective of Study

3.2.1 To study Market Characteristics of retailers.

3.2.2 To study space management of retailers.

3.2.3 To study category management and existing pricing strategy on retailers.

3.2.4 To study store management of retailers.

3.3 Research Design

The Research design for Research is single cross-sectional descriptive research design. The
research is more in-depth study of market characteristics or else and it involves one type of
survey checklist. The data is collected from on retail store manager.
3.4 Sampling Technique
The sampling technique used is Convenience sampling technique. Questionnaire is filed
through store manager which were willing to provide data for the study.

3.5 Sample size

Sample size of 5 is considered as researcher did field survey to understand store management
of retail

3.6 Sampling unit

one type sampling unit and sampling was done only once.

3.7 Primary data

The primary data is collected through unstructured interviews, structured questionnaire,
disguised observation technique.

3.8 Secondary data

The secondary data is collected from Newspapers, articles, website, journals etc

3.9 Location
Retail outlet location D-Mart (kolshet thane), Big Bazar (kapurbavdi), Supermarkets Reliance
Fresh (Majiwada thane), Hypercity Mall (Vashi), Godrej natural basket (Manpada thane)
 SWOT ANALYSIS
D-MART
STRENGTH WEAKNESS
1) low price competitive price. 1) Poor space utilization in store
2) low brand loyalty
2) good stable image/retail store
3) focus of certain places
3) huge discount policy
4) Spacious and situated at a prime location
5) focus on long term

OPPORTUNITY THREATS
1) Booming retail store 1) Presence of competitors like big bazar,
2) technology Walmart, reliance retail.
3) personalization service 2) Government policy
3) Unorganized retailer

BIG BAZAR
STRENGTH WEAKNESS
1) High brand equity 1) unable to meet store opening in target
2) pop promotion time
3) State of the infrastructure 2) Long line at billing counter which are
4) Everyday low price time consuming
5) Huge investment capacity 3) overcrowded during offers

OPPORTUNITY THREATS
1) Growing preference to organise shopping 1) changing government policy
2) Expontially growing Indian middle class. 2) Competitors
3) Unorganized retailer
RELIANCE FRESH
STRENGTH WEAKNESS
1) The brand name is reliance 1) Variation in price of product as compared
2) Strong financial backup to another store
3) Better supply chain Efficiency 2) Fruits and vegetables are not fresh always
3) more time in billing

OPPORTUNITY THREATS
1) Fastest growing format 1) New entrance retailer
2) Capture the market 2) Competitor
3) Government policies

HYPARCITY
STRENGTH WEAKNESS
1) Leader in Indian retailer 1) Huge infrastructure
2) Large economic scale 2) Huge operating cost
3) Excellent management team 3) Low possibility of success

OPPORTUNITY THREATS
1) Expansion to other cities 1) Increasing competition from another
2) Development of its own in store brand retailer and store format
2) Government policies
NATURES BASKET
STRENGTH WEAKNESS
1) International brands of varied food 1) Future growth calls for huge investment
products expenditure and debt.
2) Offers value added home delivery, 2) The stores operations have still not
customer credit achieved break-even financially
3) Extremely friendly and well-trained staff.

OPPORTUNITY THREATS
1) Gourmet retails sector in India is still 1) changing government policy
small and niche-few competitors in India 2) Competitors
 Porter’s five forces analysis of Retail Industry in India

➢ About Five Forces

Porter's Five Forces is a model that identifies and analyses five competitive forces that shape
every industry and helps determine an industry's weaknesses and strengths. Five Forces
analysis is frequently used to identify an industry's structure to determine corporate strategy.

Porter's Five Forces is a business analysis model that helps to explain why various industries
are able to sustain different levels of profitability. The model was published in Michael E.
Porter's book, "Competitive Strategy: Techniques for Analysing Industries and Competitors"
in 1980. The Five Forces model is widely used to analyse the industry structure of a company
as well as its corporate strategy. Porter identified five undeniable forces that play a part in
shaping every market and industry in the world.

Porter's five forces are

Threat of new
Entrants (High)

Bargaining power Competitive

Rivalry Bargaining power
of suppliers of Buyers (HIGH)
(Medium)
(Medium)

Threat of substitute
product (HIGH)
Explanation:

1) Threat of new Entrants (High): One trend that started over decade ago has been
decreasing number of independent retailers. Walk any mall and you’ll notice that majority of
them are chain store. While the barriers to start up a store not impossible to overcome the
ability to establish favourable supply contracts, leases and be competitive is becoming
virtually impossible, the vertical structure centralize buying gives chain store a competitive
advantage over independent retailers.

2) Bargaining power of suppliers (Medium): Historically, retailers have tried to exploit

relationships with suppliers. Bargaining power of buyers is moderate because of the size
concentration and major retailers.to reduce power and you retain customer retailer seek to
differentiate product and create strong brands. Individual private customer has a relatively
low bargaining power in front of large retail chains however their power is greater for small
retailers, who are less organized. A contract with a large retailer such as Walmart can make a
break a small supplier in the retail industry suppliers tend to have very little power.

3) Bargaining power of Buyers (HIGH): There is multi-channel retailing and deeper

segmentation through specialist retailers, the buyers are in a better position to choose among
increasing options for various products and services. Availability of substitutes and increased
buyer information along with value conscious characteristic, the Indian buyer today has
higher bargaining power.

4) Threat of substitute product (HIGH): The tendency retailer is not to specialize in one
good and service but to deal in a wide range of product and service. This means that what one
store offers you will likely find at another store retailer offering product that or absolute
advantage over their competitor.

5) Competitive Rivalry (Medium): Is increase by equal size and power of dominant

retailers who are pushing to increase market share. The extinction of small retailer through
acquisition merger alliance and high cost exit this market among leading group there are
more reliance store, Big bazar, Future group, Raheja Group, Landmark Group that are
dominating the large market of retail store in India.