Retail Management: Structure, Potential, and Challenges in India and Australia

Running head: RETAIL MANAGEMENT
Retail management
Name of the Student
Name of the University
Author Note

1RETAIL MANAGEMENT
Table of Contents
Introduction................................................................................................................. 2
The structure of retail market in India..........................................................................3
The structure of retail market in Australia....................................................................3
Potential size and profitability of retail industry in India...............................................4
Potential size and profitability of retail industry in Australia.........................................6
Potential problems facing the retail industry in India...................................................7
Potential problems facing the retail industry in Australia.............................................8
Cultural aspects impacting retailing in India................................................................9
Cultural aspects impacting retailing in Australia........................................................10
Recommendation and Conclusion............................................................................10
Reference List...........................................................................................................12

2RETAIL MANAGEMENT
Introduction
The retail sector is booming in the recent times in the Indian and Australian
market due to the increase in the rate of economy. The decisions of the major
businesses are also being affected due to these markets in a positive manner. The
Australian retail sector accounts for almost 4 percent of the total Gross Domestic
Product (GDP) and the retail market that is present in India accounts for almost 13
percent of the GDP. The Indian retail sector is organized and unorganized as well
comprising a total of almost 6 million outlets and stores. The retail sector is also
diverse in nature with respect to the competition, size and the different types of
goods in which they are dealing (Garg & Garg, 2013).
The Future Retail Limited is one of the largest supermarket chains in India,
which offers different varieties of products to its customers at a cheaper price so that
it can help in providing them with a better quality of life. The company is present in
more than 250 cities in the Indian subcontinent and has more than 500 million
customers who are loyal to the brand. It also provides products and services to more
than 30,000 entrepreneurs and manufacturers who are dealing with small, medium
and large business enterprises across the country ("India Leading Retailer, Million
Square Feet Retail Space – Pantaloon", 2018).
The Woolworths group is one of the largest retail chain in the Australian
market and has been serving the customers for a long period of time. The products
that are offered by the company are priced in a competitive manner, which has
helped them in gaining an advantage in the market. The company also caters to
more than 400 million customers and has its retail business scattered in all the major
parts of Australia. This has resulted in improving its quality of services towards the

3RETAIL MANAGEMENT
customers so that they can have a better experience with respect to their purchase
(Woolworths.co.za, 2018).
The structure of retail market in India
The Indian retail sector is divided mainly in to the organized and the
unorganized sector where the unorganized sector is mostly prevalent. The
unorganized sector is inclusive mainly of the local carts and the vendors that are
lined up on the pavements. This is the most prevalent sector and around 98 percent
of the retailers fall in this category (Shaha & Shinde, 2013).
The organized sector constitutes of the licensed retailers who are registered
under the law and pay the income tax on the level of profit that are being done by
them through the sale of goods. This sector is mainly backed up by corporate
houses and the retail chains. It is inclusive of the in-store retailers where the sales
are done from a fixed point. This helps in attracting the customers towards the stores
due to the use of the showrooms for the brands. It also houses different brands that
help the customers in selecting their own brands according to their power of
purchasing (Deshpande, Gaddi & Patil, 2014).
There are discount stores as well that help in providing the goods and
products to the customers at a greater amount of discount. There are convenient
stores as well as shopping malls through which the customers can purchase the
products that they require. This helps them in providing them with a variety of choice.
The Future Retail Limited is located in many shopping malls and falls under the
organized sector where the customers can get their products at a cheaper and
discounted price. This helps them in increasing the level of loyalty among the