Investment Strategies In Retail Sector

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Research Methods Semester 1 Individual Assignment [Please delete as applicable below] Name Lakshmanan Sridharan Chary Campus Paris MSc Financial Markets and Investors Situation MSc student Scoop It Investment strategies in Retail sectors – An Introduction Research for investment strategies in retail sector. Why is it relevant? As retail sector is a necessary and important sector in every economy which, the demand for products from this sector will depend on many factors like location, quality, responsiveness, price etc. Irrespective whether the person is rich or poor, living area, lifestyle everyone needs to brush their teeth twice a day and have to use soap for bathing and…show more content…
Even through 100% Foreign Direct Investments investment in allowed in cash and carry and 51% in single brand, high duties and taxes on imported goods makes foreign luxury goods not affordable to lower-middle class. This is a socialist thought policy, which is implemented to compensate the subsidies on basic required products provided to people. Although it brings down the competition in retail sector local players have emerged at top of the sector and indirect foreign investment in their company. As global recession should have negligible effect in retail sector, it has affected all the departments of a country’s economy which caused in increased unemployment and last man situation as companies did lots of cost cutting to support operating cost. This paper states that crisis came as blessing in disguise which helped retail sector to operate with efficiency and correction in prices. This paper concludes saying that global retail giants have to target emerging economies if they want to see…show more content…
We can use various retail index as a benchmark to compare performance of retail sector with other major indices of that country. • Retail index funds are good source of information • Academic papers have processed data. • Articles and analyst opinions. Limitations/Difficulties • As retail sector benchmark includes all subsectors of retail including real estate, automotive, FMCG etc. we have to analyze each sub-sector separately. • Being one of the least developed sector it still needs the advancement that other sectors have seen, which makes it difficult understand the needs of the sector by which the required capital projections might have a discrepancy. Conclusion Retail sector have always fascinated me from the start. It has been one of the most dynamic sectors which frequent price changes due to various factors like currency, inflation, supply, demand etc. As there is always demand for retail product this sector even if have not growth will be stable even in situation of crisis. As we saw in Argentina how closure of retail sector brought the country’s basic functions on to its needs. Retail sector is proving to be an important sector for investment for a portfolio manager not only for diversification but also for decreasing the

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