Comparative Report: Retail Management in India and Australia

This report provides a comparative analysis of the retail industries in India and Australia. It begins by outlining the current growth rates and segmentation of the Australian retail sector, followed by an overview of the Indian retail market's substantial size and projected growth. The report then delves into the differences in retail market structures between the two countries, highlighting the impact of globalization and liberalization on India's market. A comparative estimation of the potential size and profitability of both sectors is presented, examining market competition and the dominance of key players. The analysis further explores potential problems in both retail markets, such as income inequalities, challenges from international chains, and cultural considerations. The report concludes with recommendations for innovation in marketing, including the use of e-commerce, to address the challenges faced by both Indian and Australian retail companies. References from various sources are included to support the findings and analysis.

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
• Abc.net.au. 2019. Abc.net.au. [online] Available at: https://www.abc.net.au/news/2019-05-03/supermarket-market-
share-roy-morgan-single-source/11073926 [Accessed 23 Sep. 2019].
• Atkinson, A.B., 2015. Inequality. Harvard University Press.
• Careratings.com. (2019). Retrieved 23 September 2019, from
http://www.careratings.com/upload/NewsFiles/SplAnalysis/Indian%20Retail%20Industry%20-%20June%202017.pdf
• Dfpd.gov.in. 2019. Public Distribution. Retrieved 23 September 2019, from https://dfpd.gov.in/public-distribution.htm
• Ibisworld.com.au. 2019. Ibisworld.com.au. [online] Available at:
https://www.ibisworld.com.au/industry-trends/market-research-reports/retail-trade [Accessed 23 Sep. 2019].
• Makeinindia.com. 2019. Make in India - Retail Sector - Make In India. Retrieved 23 September 2019, from
http://www.makeinindia.com/article/-/v/make-in-india-retail-sector
• Pc.gov.au, 2019. Inquiry report. [online] Pc.gov.au. Available at: <https://www.pc.gov.au/inquiries/completed/retail-
industry/report#targetText=There%20are%20almost%20140%20000,the%20nature%20of%20goods%20sold.>
• Pwc.in. 2019. Pwc.in. [online] Available at: https://www.pwc.in/assets/pdfs/industries/retail-and-consumer/retail-
report-300812.pdf [Accessed 23 Sep. 2019].
• Xu, W. 2019. The market structure of the U.S. retail industry: 1984–2003. Retrieved 23 September 2019, from
https://docs.lib.purdue.edu/dissertations/AAI3291096/

Thank You