retail structure in asia

8/7/2019 Retail Structure in Asia

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RETAIL STRUCTURE

IN ASIA


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WITH REFERENCE TO

INDIA, CHINA &SINGAPORE


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INDIA - RETAIL


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FEATURES:

13% contribution to GDP.

10% employment of total work force.

Rs.350 million of the total revenues. 2% share of organized retailing in India.

Expected to grow stronger than GDP growth

in the next 5 years. RPG Spencer, Future group, Food Bazaar,

Reliance, Subhiksha etc.


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MODERN RETAIL- SWOT ANALYSIS

STRENGTHS:

The consumers get a better product at

cheaper price, value for their money. Employment opportunities

Farmers get better prices for their products

Increase in expenditure for luxury items


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Ranked second in Global Retail Development

Index of 30 developing countries

Indian organised retail industry reached atRs.1,30,000 crore in 2006.

annual growth of departmental stores is

estimated at 24%


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WEAKNESS

Retail companies have to pay high rentals

which are blockage in the turn of profits.

96% of the Small size outlets are lesser than500 sq.ft.

The volume of sales in Indian retailing is also

very low.

100% Foreign Direct Investment (FDI) is not

permitted in retailing in India


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OPPORTUNITIES:

Rural retailing is still unexploited Indianmarket.

It can become one of the largest industries

in terms of numbers of employees andestablishments.

Indian retail industry has come forth as one

of the most dynamic and fast paced industry

with several players entering the market.


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THREATS:

Lack of uniform tax system for organized

retailing.

Labour rules and regulation are also notfollowed in the organized retails.

The sector is unable to employ retail staff on

contract basis.

Difficult to target all segments of society.

Heavy initial investment


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RETAILERS IN INDIA

Next retail India

Ltd

Vivek Limited

PGC Retail -T-Mart India

RPG Retail- Spencers Hyper, SpencersSuper, Daily & Fresh

Pantaloon Retail

The Tata Group


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Lifestyle

Nilgiris

Subhiksha

Vishal Retail Reliance Retail: Reliance Fresh, Reliance world

Aditya Birla Group more


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CHINA - RETAIL

Textile and Apparel Exports:

29.38% of the value of total Chinese exports in

1994 In 1994, China was the leading apparel

exporter in the world, reaching US$23.722

billion.

In 1996, Chinas total apparel imports were

US$1044.48 million.


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Annual income ( Middle class)

RMB 60,000 to 500,000

US$ 7,792 to 65,790Stable, high income

More brand conscious, less price sensitive

Want better shopping environment, highquality goods and services


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Foreign access gradually permitted in mid-

1990s, restrictions eased.

Market-oriented economy, with existingpolitical framework.

Cultural differences between regions and

cities.Beijing: conservative and traditional

Shanghai: Progressive and open to overseas trends


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China retail sales growth 15.2% year on year.

Major global retailers maximize profit throughinnovation

Technology changes and store format to improve productivityand lower costs.

Moving to demand-led innovations.

All items sold in China must be marked in the

Chinese language Certain products require a safety certification

China Compulsory Certification (CCC) mark


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TIERS OF CHINESE CITIES

Tier 1 most developed cities

Tier 2 fastest growing cities

Tier 3 of regional importance Tier 4 and beyond still traditional


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Internet shopping 7% of 18- to 24-year- olds prefer it

Only 1% of over 40-year-olds

Essential PR tool to younger, more affluent

Mall shopping Strongly influenced by city size, more than income

Customers in four largest cities prefer it

Only 20% of tier-3 city inhabitants

Consumers in highest segment, annual incomeover RMB 250,000, are most interested inWestern brands


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CHALLENGES OF RETAIL MNCS IN

CHINA

Consumer Markets and Cultures

Logistical and Supply Networks

Real Estate Markets and Land Use Regulation


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WESTERN RETAILERS IN CHINA

SUCCESSFUL PENETRATING THE MARKET

SINCE THE 1980S

Wal-Mart

Carrefour

IKEA Best Buy

Nike

Subway McDonalds

KFC


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CARREFOUR IN CHINA


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SINGAPORE

RETAIL


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MAJOR RETAILORS

Uniqlo (mass fashion)

Wendys (F&B)

Neulook (fashion & accessories) Berschka (fashion)

Etude (beauty & cosmetics)

Chaumet (luxury jewellery) Herve Leger (luxury fashion) etc


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ASIA


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RETAILING AREAS IN ASIA

NORTH ASIA

Japan

Tokyo

Ginza

Omotesando

Shibuya

Shinjuku

Harajuku


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CHINA

Beijing

ShanghaiGuangzhou

Beijing

Hong Kong


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SOUTH & SOUTHEAST ASIA

Singapore

Thailand - Bangkok

Philippines - ManilaIndonesia - Jakarta

India - New Delhi

Vietnam - Ho Chi Minh City


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retail structure in asia

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