Differences in Retail Market Structures in India and Australia

This presentation compares the retail market structures in India and Australia. It discusses the potential size and profitability of the retail sectors in both countries. It also analyzes the potential problems faced by the retail markets and provides recommendations for overcoming challenges. The presentation provides insights into the differences between the retail markets in India and Australia and offers valuable recommendations for retail companies operating in these markets.

RETAIL
MANAGEMENT

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 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. It forms
over 10% of the total GDP of the
country. It is expected to grow to 1200
billion US Dollars by 2021.

Differences in retail market structures in India and Australia
• The retail market structure in
India is aloof from the
experiences of a progressive
development owing to the
rapid globalization and
liberalization.
• In case of the Australia the
retail market structure
remains invariably different.
With the advent of
globalization, the retail market
structure in Australia has
changed considerably from
the early 2000s

Comparative estimation of potential size and
profitability of the Indian and Australian retail
sector
• The market structures of the two countries vary in some of the most
important areas. In Australia, there are around 140 thousand retail
businesses. The retail industry accounts for 4.1 % of the GDP of the country as
well as 10.7% of the employment of country. There is significant competition
within the retail sector of the country. The retail industry is mostly
concentrated in the hands of the grocery and house items sector. The larger
players are Woolworths, the Wesfarmers and Aldi.
• The retail industry of India is expected to grow from 672 Billion US dollars to
1200 billion USD in 2021. Online retail is set to grow at a 31% rate. One of the
most profitable sectors in the retail market of the country is estimated to be
the luxury sector. Like Australia, the retail industry of India is dominated by a
few larger market players.

Analysis of the potential
problems in the two retail
markets
• Lack of customer spending due to increasing income inequalities
• Challenges from international retail chains
• Lack of sufficient floor area

Consideration of the cultural
aspects
• The retail in order to meet the needs of these customers have to
adapt their products to the culture of the host markets.
• This need to adapt marketing strategies to the cultural needs of the
customers require the retail chains to challenge immense capital,
which affects the financial base of the retail companies concerned.

Conclusion and
Recommendations
• Indian and Australian retail companies are facing several challenges.
• The challenges stem due to the rising income inequalities in both the
countries, reduction in customer spending towards retail purchase
and competition from foreign retail companies.
• Recommendations
Innovation in marketing
Ecommerce marketing

References
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industry/report#targetText=There%20are%20almost%20140%20000,the%20nature%20of%20goods%20sold.>
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https://docs.lib.purdue.edu/dissertations/AAI3291096/

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