Swot of Retail Sector

In: Business and Management

Submitted By achatra1
Words 878
Pages 4
SWOT Analysis of Retail Sector:
1. Strengths: x Major contribution to GDP: the retail sector in India is hovering around 33-35% of GDP as compared to around 20% in USA. x High Growth Rate: the retail sector in India enjoys an extremely high growth rate of approximately 46%. x High Potential: since the organised portion of retail sector is only 2-3%, thereby creating lot of potential for future players. x High Employment Generator: the retail sector employs 7% of work force in India, which is rite now limited to unorganised sector only.Once the reforms get implemented this percentage is likely to increase substantially.

2. Weaknesses (limitation): x Lack of Competitors: AT Kearney‘s study on global retailing trends found that India is least competitive as well as least saturated markets of the world. x Highly Unorganised: The unorganised portion of retail sector is only 97% as compared to US, which is only 20%. x Low Productivity: Mckinsey study claims retail productivity in India is very low as compared to its international peers. x Shortage of Talented Professionals: the retail trade business in
India is not considered as reputed profession and is mostly carried out by the family members (self-employment and captive business). Such people are not academically and professionally qualified. x NoµIndustry‘ status, hence creating financial issues for retailers: the retail sector in India does not enjoy industry status in India, thereby making difficult for retailers to raise funds.

3. Opportunities (benefits): x There will be more organization in the sector: Organized retail will need more workers. According to findings of KPMG , in China, the employment in both retail and wholesale trade increased from 4% in 1992 to about 7% in 2001, post reforms and innovative competition in retail sector in that country. x Healthy Competition will be boosted and…...

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