ANALYSIS OF RETAIL INDUSTRY

BY PORTER’S 5 FORCES MODEL

Presented by: Group 7

Sidhant Mishra
Shreyan Debasis
Satyabrata Mohanty
Mamta Pattanaik
Prateeti Sahoo
Jyotiraditya
Mohapatra
Sunil Kumar Rout
RETAIL INDUSTRY IN INDIA
India has occupied a remarkable position in
global retail ranking.
It has high market potential, low economic
risk and moderate political risk.
India is ranked 1st in Global Retail
Development Index in 2017.
Currently India is the 5th largest global
destination in the retail space.
India is expected to become the world’s 3 rd
largest consumer economy.
GROWTH AND SIZE OF RETAIL
INDUSTRY IN INDIA
The total consumption expenditure is
expected to reach nearly US $3600 billion
by 2020 from US $1824 billion in 2017.
It accounts for over 10% of the country’s
GDP and 8% of the employment of India.
India’s retail market is expected to increase
by 60% to reach US $1.1 trillion by 2020.
 Food segment contribution largest part of
total value of retail market.
Expected in the year of 2018, India will 12th
largest luxury retail market in the world.
ORGANIZED AND UNORGANIZED
RETAIL MARKET
Organised retail market:
Organised retailing refers to the trading
activities undertaken by licensed retailers i.e.
those who are registered for sales tax, income
tax etc.
Examples: Bigbazar, Walmart, Pantaloons,
Westsides, Reliance world etc.
Growth rate of organized retail sector is
estimated to reach approx. 18 to 20% of the
total sector by 2020 at a growing rate of 20 to
25% per annum.
 Unorganized retail market:
These are owned by a private individual
and based on the principles but not owned
by any private companies.
The unorganized retail market controls
around 90% of entire retailing.
EXISTING PLAYERS IN RETAIL
INDUSTRY

Top 5 retail industries in India are:

Reliance Retail
Tata Group
Raymond Group
Kurl-On
Aditya Birla Fashion & Retail Ltd
PORTER’S 5 FORCES MODEL
Five Forces analysis helps you
stay competitive by:
-Knowing the strength of
these five forces, you can
develop strategies that help their
businesses be more competitive
and profitable.
-Looking at opportunities,
you can to strengthen their
organization's position compared
to the other players for reducing
the competitive pressure as well
as generate competitive
advantage.
THREATS OF NEW ENTRANTS
Product differentiation
Brand equity
Switching costs
Access to distribution channel
Government policies
RIVALRY AMONG EXISTING
COMPETITORS
No of competitors
Rate of industry growth
Diversity of competitors
Level of advertising expense
BARGAINING POWER OF
SUPPLIERS
Suppliers switching costs relative to firm
switching costs
Degree of differentiation of inputs
Presence of substitute inputs
Suppliers’ product is an important input to
buyers’ product
BARGAINING POWER OF
BUYERS
Buyers concentration to firm concentration
ratio
Products are undifferentiated
Buyers volume
Availability of substitute products
Buyers price sensitivity
THREAT OF SUBSTITUTES
Buyer propensity to substitute
Relative price performance of substitutes
Buyer switching costs
Perceived level of product differentiation
CONCLUSION
Indian retail industry has a huge room for
development and very right future prospect.
Proper government measure can assure a
healthy growth.
There is a huge untapped opportunity in the
retail sector, thus having immense scope for
new entrants, driving large investments into
the country.
Indian retail industry also helps to grow
Indian economy in terms of income and
employment generation.