RETAIL GIANTS IN THE WORLD
Wal-Mart
It's the world's biggest retailer and also the biggest employer with over 1.8 million employees. Famous for its low pricing and wide selection of goods, Wal-Mart has become the undisputed king of retailing.
Wal-Mart has more than 3,800 stores worldwide. The company has been growing rapidly overseas, especially in China. It now generates 20% revenues internationally. Wal-Mart, also entered India with a 50:50 JV with Bharti Group and now with 100% FDI in retail it is expected to provide employment to huge young force of India.14
Carrefour
The Carrefour group believes in large extent of distribution. Carrefour has more than 2 billion customers as of today.
The group has specialises in other customer services,
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Shopping malls are coming up in other parts of the country apart from metro cities like Mumbai, Delhi Kolkata etc. India’s first mall cross road opened in Mumbai. Owned by the Ashok Piramal Group, the mall opened in 1999 & received a record number of visitors on its opening day.
The Indian retail market is vaguely US$ 450 billion and one of the top five retail markets in the world. India is one of the fastest growing retail markets in the world, with almost 1.2 billion people.2
India's retailing industry is primarily small shops. New format convenience stores and supermarkets accounted for about 4 percent of the industry, and were present only in cities. India's retail industry employs about 40 million people roughly 3.3% of the population. Organized retailing, in India, means trading activities undertaken by licensed retailers.
Unorganized retailing means conventional formats of low-cost retailing, for example, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.4
Organized retailing was miniscule in most rural and small towns of India in the early 2000s. Supermarkets and similar organized retail accounted for just 4% of the market.5
India's retail and logistics industry, organized and unorganized in combination, employs about 40 million Indians (3.3% of Indian
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Food retail:
The food and grocery retail market in India is estimated at rupees 13, 18,165crore for the year 2009-2010. Key players in this segment include the RPG group, future’s group, reliance retail and Aditya Birla Group. 2. Apparel:
The apparel and clothing retail market was estimated to be worth rupees 1, 41,547crore in 2009-2010. Key players in the segment include Arvind Brands, Madura Garments, Raymond’s, and Park Avenue. The apparel retailer has witnessed a slow but gradual evolution with the entry of brands such as Adidas, Reebok, and Levis etc.
3. Consumer Durables:
The consumer durables market was estimated worth rupees 62,836 Crore. The consumer’s durable market is said to be comprised of televisions, refrigerators, washing machines, air-conditioners and micro-waves. The consumer durable market in India has seen a proliferation of brands and product categories in recent years. Key players in the segment are Sony, Samsung, and Philips etc.
4. Footwear:
The footwear market was estimated to be worth Rs. 17, 859/- Crore in 2009-2010. The footwear market could primary comprise of footwear for men, women and children. Key players in the segment are Bata India, Metro, Khadim India Limited and Lakhani India limited etc. international players like Adidas and Reebok has also made presence in the Indian
Gilded age 1878-1889 was the age of fast growth of industry and immigrants in America history. The production of steel and iron rose radically than other time. In contrast, the Western resources increased such as silver,lumber, and gold. As well as the transportation also improved. Railroad develop and move goods from resources rich west to east.
Industry & Marketshare Real Canadian Superstore is part of the retail industry. They are owned by Loblaws, where they are to sell consumer goods and related services through their stores to the general public. Real Canadian Superstore owns 34.1% of the market shares which makes them the largest company in retail Real Canadian Superstore owns over 74% of its corporate stores, and own 47% of their franchisee stores. These statistics gives the company a sustained competitive advantage because it makes the company flexible, and also makes it has for existing companies or new ones to compete.
The sporting goods industry has a long history from the mid- 1800s until the early 1980s. Since then public ownership led to the expansion of footwear and apparel products in an exploding marketplace. This allowed the top 20 firms to have sales of at least $1 billion. (Lipsey, 2006) After 1980s, sports equipment manufacturing is estimated above a $70 billion industry and is continuously growing worldwide (statista.com, 2014). The production of sports equipment is one of the biggest and most profitable industries nowadays and it gathers all the attention of big brands with powerful marketing techniques which compete in global scale.
This industry is very competitive with as many as thirty-seven firms and total estimated annual revenues of $125,904,840,000 (http://bi.galegroup.com/essentials/industry/448140?u=bentley_main). Retail giants like TJX, H&M and Gap are the top players of this industry with Nordstrom vying for the fourth largest market share and Dillard’s further down on the list. The success of Nordstrom Inc with respect to
Walmart was founded in the summer of 1962 by Kingfisher, Oklahoma native Sam Walton. Although Walton’s original vision for the store was relatively modest, the half century since its founding has seen Walmart morph into one of the biggest companies in the world. Today headed by one Doug McMillon, Walmart boasts more than 5000 stores in the United States of America alone and employs more than 1.5 million people. Walmart is undoubtedly an American institution, yet each Walmart store feels like its own little country. Walmart seems to have its own laws and customs and the people who shop their on a regular basis appear almost primitive in their behavior as they go about raiding the store’s shelves and wrestling with fellow customers for discount flat screen televisions and bulk packages of two-ply toilet paper.
During the past decade, Wal-Mart, Kmart and Target three retail giants generate a combined sale of $123 billion (External Analysis Wal-Mart 2015). The success of the retail industry contributes largely to the advancements of science and technology and reduced costs. In the future, the success of Wal-Mart still relies on consumers’ concerns for value shopping and saving money. The company should pay close attention to the needs of customers and provide high-value and low-price products for consumers. Industry environment analysis includes five aspects: threat of new entrants, power of suppliers, inter-firm rivalry, power of buyers and threat of substitutes.
or later known as Macy’s Inc. acquired R.H. Macy’s in 1994 then became the world’s largest premier department store company as the Federated Department Stores operated over 400 department stores and more than 157 specialty stores in 37 states. As from 1995 until 2006, Federated Department Stores have also acquired several department stores converting to the Macy’s nameplate such as A&S Department Stores, The Broadway Department Stores, I. Magnin, Jordan Marsh Department Stores of Boston, Stern’s Department Stores, Liberty House operations and finally The May Department Stores Company. Macy’s Inc. now currently have approximately 800 stores in virtually every major geographic market in the United States including their official website, the “macys.com”. Macy’s Inc. also is currently a parent company of 3 subsidiaries companies which are Macy’s, Bloomingdale’s, and Bluemercury Inc. where Bluemercury was acquired recently in March 2015 by Macy’s Inc.
In this era of globalization, the supermarket industry is one of the common investment sectors. It is also forming retail common categories of food products such as fresh and meats, poultry and seafood, fresh fruits and vegetables, canned and frozen foods as well as various dairy products. Investment in this industry can be profitable if succeed but bear in mind that risk still exists if monitoring process is not carried out. Therefore, Professor Michael E. Porter from Harvard Business School has introduced a tool for purposes of analysis potential industry which is the most profitable and potential. Porter stated that five forces are deciding an industry either beneficial at future or it will become a case study and commerce practice (Porter, M.E., 2008).
NIKE The Factors that Led to Success and Failure of Nike in its Venture across International Markets Abishek TR* Abstract- Key words: INTRODUCTION The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones .
To begin with, it is crucial to identify the industry. The athletic footwear and fitness apparel industry constitutes of somewhat 25 companies which offer sportswear, sports accessories, sports footwear, and sports equipment. Some brands even offer casual wear. Competitors in the industry have relatively high prices due to their products' durability and innovated materials used in manufacturing them. Porter's five forces which will be used in the analysis below are: competitive rivalry, bargaining power of suppliers, bargaining power of customers, threat of news entrants, and threat of substitute products.
Before entering an unknown product horizon, the company will investigate its viability in the product category as well as measure its competitive advantage to other companies in the niche. Under Armour’s unique ability to measure these two important factors has allowed it to create a product base which consumers have high loyalty towards. The Under Armour brand has positioned itself in the high quality, high price, and best available in the market, category. It advertises itself as delivering higher customer value and is therefore capable of charging higher prices for their goods.
Competitors: PUMA, K-Swiss Inc., LaCrosse Footwear, Inc., Dick 's Sporting Goods, Inc., New Balance Athletic Shoe and Adidas – (Adidas have currently branched out into customization of footwear products. To sustain its competitive advantage over competitors, Nike has to take this to consideration). However, a large number of competitors in an industry usually indicates lots of demand for the products or services provided and this will help Nike to succeed in the long run. Suppliers: Nike outsources almost all of its footwear production to independent third party suppliers. As Nike has a minor control over quality of the products.
It will be easily giving the consumer make the decision in short time when buy the Nike’s product without compare with other Nike retail. Weakness 1. High Prices Nike is a strong brand at the global market and it normally sells the product in the market with high price to get higher margins and profit value. However, many competitors cost of the footwear is lower than Nike in the market, particularly in emerging markets, this can give consumers get many choice about the footwear.
The brands set different prices of its product base on design, size and heritage. This is due to brand loyalty that each brand possesses by each luxury group. Particularly put extensive brand portfolio to cover different customer segments. As such, the brand is niche in the market leading to rivalry of the competitors in this industry to
INDIA’S INTERNATIONAL TRADE: TREND, COMPOSITION AND DIRECTION INTRODUCTION International trade is exchange of capital, goods, and services across international borders or territories. India’s major imports comprise of crude oil machinery, military products, fertilizers, chemicals, gems, antiques and artworks. Indian exports comprise mainly of engineering and textile products, precious stones, petroleum products, jewellery, sugar, steel chemicals, zinc and leather products. TRENDS