Retail Marketing: A Comparison of India and Australia

Running head: Retail marketing
Retail marketing
2018

Retail marketing
Table of Contents
Introduction.................................................................................................................................................3
Retail market in India and Australia............................................................................................................3
Differences in the structure of retail market in India and Australia.............................................................3
Potential size and profitability of retail industry in India and Australia.......................................................5
Potential problems facing the retail industry in India and Australia............................................................8
How cultural aspects impact on the retail sector in India and Australia.....................................................10
Recommendations.....................................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11
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Retail marketing
Introduction
Retail sector is mandatory for every country because it has a great impact on the profitability and
economic development. Retailing is becoming an intrinsic part of people’s daily lives. The main
purpose of the report is to discuss about the role and significance of retail sector in India and
Australia. A comparison between Australia and Indian retail industry has been shown in the task
briefly. The retail sector is quite good and powerful as compared to the Australia. The paper
further outlines that how retail sector faces various issues and challenges in India and Australia.
The potential size, growth and structure of retail industry in both the countries also are presented
in the paper. The impacts of cultural aspects on retail industry also have been explained in the
task. More detail of the report is discussed below.
Retail market in India and Australia
Retail may be defined as a process of selling consumer products and services to the customers
through various distribution channels to maximize profitability globally. Retailers identify and
analyze the needs, preferences and choices of the customers through an effective and unique
supply chain management (Price, 2011). Retail marketing refers to a range of activities and
processes undertaken by a retailer to encourage sales and awareness of the organization’s
products and services (Helena Chiu, Fang and Tseng, 2010). Retail market plays a significant
role in each and every company because it helps in providing ample of consumer products and
services across the globe (Sandilands, 2018). On the other hand, it is noted that retailing in
Australia experienced a favorable performance. Despite a weak success and growth in wages, the
country is achieving success and growth in retail sector (Sutton-Brady, Kamvounias and Taylor,
2015). Wesfarmers, Coles and Woolworths are successful example of retail sector in the country.
The retail industry is one of the biggest Australia’s employers employing and engaging 1.2
million people in 2009-2010 (Australian government productivity commission, 2011).
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Retail marketing
Differences in the structure of retail market in India and Australia
It has been analyzed from the various analysis that structure of retail market is quite different in
Australia and India. The structure of Retail market in India is categorized in two parts such as
organized and unorganized sector (Pantano, 2014). The unorganized sector is major and biggest
sector that may help to attract and retain the maximum number of customers globally. The
divisions of retail sector have been discussed below.
Unorganized retail sector: It entails various local kiranas, hand cart and vendors on the
pavement etc. This industry comprises about 98% of the total retail trade but foreign direct
investment is predicted in the retail sector to minimize the employment in the unorganized sector
and expand that in the organized one (Economywatch, 2010).
Organized retail sector: In this sector trading is derived by the licensed retailers who have
registered themselves to sale and income tax as well. The organized retail sector includes retail
chains, and hypermarkets. The private biggest business enterprises are also comprised in the
organized retail sector. The organized retail industry is further subdivided into instore retailers.
Instore retailers: This type of retail format is well known as the mortar and brick format. The
fixed point sale outlets are included in the instore retailers. In India, the supermarkets are
generally self service retail stores who offer commodities and consumer products at reasonable
prices (Economywatch, 2010).
Apart from this, the retail format in India could be divided into the modern and traditional forms.
The traditional forms entail street markets, multiple brand stores, Kiranas and Kiosks. On the
other hand, the modern formats comprise department stores, hypermarkets and specialty chains.
In today’s modern world, the trade parks and forgo retailing are also going on. Trade parks are
generally business complexes that encourage international trade and business whereas forecourt
retailing is done by the oil corporations to maximize and enhance their revenue and outcomes.
They do not render fuel but also provide other services to its customers in the competitive
market.
In the contrast, organized and unorganized retail market is not undergone in Australian market.
The structure of retail industry is quite different in Australia. There is no specific structure of
retail industry in such country (Fernie and Sparks, 2014). The retail industry is constantly
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