Study on developing competence of major Indian players in retailing sector to compete against international retailing powerhouses

Abstract

Indian retail sector is undergoing a face change due to the multitude of forces that are acting on the industry. The industry got a facelift when organized retailers started to establish their operations in the metropolitan cities. In this context it is pertinent to understand the challenges that a new entrant stand to face in the current scenario.

Currently the need is to build a model that gives sustainability in the long term and enables to differentiate vis-a-vis existing prayers. The challenge is to create robust internal processes and be innovative in providing customer services. The analysis illustrates the challenges a new entrant would face and proposes a framework that would enable to establish a road map for successful and sustainable operation.

The proposed model is to establish a national retail-chain in two phases. In the first phase model proposes to venture into AA and A category cities identified in the report. In this phase the retailer would develop competencies and internal 'Capabilities to operate in this industry. In the next phase these capabilities will be Leveraged to expand into other category cities.

Our model aims at delivering the combined benefit of an organized retailer and a kirana shop to the customer. In delivering this value the model uses direct sourcing, transshipment, zonal warehousing to increase the supply chain efficiency. The paper further discusses the marketing techniques which can deliver flexibility and convenience to the shopper. These are customer loyalty programme, home delivery system and providing a world class shopping experience.