Comparative Analysis of Retail Management Functions in India and Australia

Running head: RETAIL MANAGEMENT
RETAIL MANAGEMENT
Name of the Student
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Author Note

RETAIL MANAGEMENT1
Executive Summary
The study is focused towards the effective analysis of the comparative retail management
functions of India and Australia. The Australian retail industry has a current growth rate of 3.7%.
The Indian retail market is one of the emerging retail markets in the world. Thus understanding
the comparative significance of the retail industry of these two countries become very much
important towards the growth and development of the world retail business. The study revolves
around differences in retail market structure, the estimation of the size and profitability of the
industry, the challenges faced by the industries and the cultural aspects. The study has
incorporated all the important aspects of the retail sectors of the two countries.

RETAIL MANAGEMENT2
Table of Contents
Introduction......................................................................................................................................3
Overview......................................................................................................................................3
Background of the retailing systems of the countries..................................................................3
Section 1: Differences in retail market structures............................................................................3
Section 2: Comparative estimation of potential size and profitability............................................5
Section 3: Analysis of the potential problems.................................................................................6
Section 4: Consideration of the cultural aspects..............................................................................7
Conclusion and Recommendations..................................................................................................8
Recommendations............................................................................................................................8
Innovation in marketing:..........................................................................................................8
Fusion of Ecommerce marketing and traditional retail:..........................................................8
More employee value......................................................................................................................9
References......................................................................................................................................10

RETAIL MANAGEMENT3
Introduction
Overview
The study is focused towards the effective analysis of the comparative retail management
functions of India and Australia. The study is focused towards the essential analysis of the
various aspects that are related to the retail markets of two different economies. In this case the
retail market industry functions of Australia would be compared with the retail market industry
of India. Some of the important areas that are covered in the study are differences in retail market
structure, the estimation of the size and profitability of the industry, the challenges and the
cultural aspects. The ways in which these factors determine the functioning, growth and progress
of the retail industry of the countries.
Background of the retailing systems of the countries
The Australian retail industry has a current growth rate of 3.7%. The Australian retail
sector can be segmented into some important division categories. These are product, distribution
channels and market dynamics. The retail sector of the country is further boosted by the fact that
the country has a highly urbanized population. Apparel and Footwear markets are leading the
retail sector of the country. The larger market players are Aldi, Metcash, Woolworths,
Wesfarmers and Big W.
The Indian retail market is one of the emerging retail markets in the world. It is estimated
to be currently worth 672 Billion US dollars as of 2017 (Çifci et al. 2016). It forms over 10% of
the total GDP of the country. It is expected to grow to 1200 billion US Dollars by 2021. It
provides 8% of the employment in India. The sector has the potential to significantly affect the
retail market economy of the world, given the size of the population.
Section 1: Differences in retail market structures
The retail market structure in India is aloof from the experiences of a progressive
development owing to the rapid globalization and liberalization. This is majorly due to the lack
of Foreign Direct investment (hereafter, FDI) in the Indian sector of the retail market. This is
increasing with the new government in power as it fears loss of employment opportunities with
the traditional retail market getting affected. It is stated that promotion of FDI in India could be a
mixed blessing as it would help the domestic players as well as create a negative impact on a