Developing Global Management Competencies
Introduction
Retail is the method of promoting customer items or offerings to clients through a couple of channels of distribution to generate gain. Retailers fulfill calls for recognition via a delivery chain. The retail industry is a sector of the economic system that is produced by people and agencies involved in the promotion of completed merchandise to give up consumers. The time period store is generally carried out in which a carrier company fills the small orders of many people, that are given up-users, as opposed to massive orders of a small wide variety of corporate, authorities or wholesale, clientele (VIJAYAKUMAR and AKILANDESWARI, 2019). Shopping commonly refers back to the act of purchasing merchandise. It has also been recognized that certain times that are performed to achieve very last items, such as requirements which include meals and clothing. Occasionally it takes location as a recreational activity. Recreational buying regularly includes window buying and browsing, it does now no longer usually bring about a purchase. The different types of stores provide different types of foods and clothing garments which further increases the expansion and profit of the retail business in both India and other parts of the world. The retail industry of India has incurred a huge profit of £394 billion in the financial year of 2019. In this report we will discuss about the challenges and issues of the Reliance Mart retail chain.
SWOT Analysis of Reliance Mart
Strength
A growing variety of Indian purchasers are ascending the monetary pyramid to shape a rising center class. Strength of the Reliance Mart is its customer base. In 2010, there have been approximately 470 million humans’ within the rising center class. According to PwC evaluation, this section would enhance development to five hundred and seventy million with the help of 2021. India’s operating populace is predicted to be one hundred and seventeen million over the following decade in comparison to China’s four million. It has been found that the subsequent era, from 2020; previous would incur nine hundred and eighty million to its workforce, while a country like China would make a contract of fifty-one million (Martínez et al, 2017). The retail marketplace of this country is predicted to almost double to$ 1 trillion dollars with the aid of using 2020 from US$ six hundred billion in 2015. The perception of prepared retail in India remains very low at 6 to 8 percent, particularly whilst in comparison to evolved countries including the United States and the United Kingdom that have a retail perception of 85 percent and 80 percent. Moreover, with a population of a hundred million, the phase III and II towns in India are large in comparison to international locations including Germany and the United Kingdom. On the other hand, the underdeveloped rural populace holds a huge ability for retailers. It is envisioned that with the aid of using 2021, about 67 percent of Indians would nonetheless stay in rural areas. Thus, it can be said that the retail owners of India have a great scope to bring more investment in this industry that would further generate a high proportion of market sales and profits.
Weakness
The declaration of FDI in retail which include Reliance Mart has made a path for the political aspects, while the Government of India faces tough competition with its partners who are threatening to make a withdrawal of help. Thus, this coverage is in the end implied, there could be another vital issue for the groups to overcome. The process in which the coverage is presently made, a store could build-up shopping malls most effective in the particular states that have agreed or would conclude within the destiny to allow FDI in multi structural retail (Nair and Nair, 2018). The development of infrastructure would play a vital position in finding out how this area would emerge and outlets would control the delivery of supply chains. On the other hand, because of the terrible infrastructure, an excessive fee of fuel, a multiplicity of taxes, dependence in large part on the street transportation and others, logistics nevertheless stays an excessive percent of the fee of a product, in positive instances going past 15 to 20 percent.
Opportunities
Retailers of India had been making examinations and experiments to reach a hit formula, however, there may be no one length suits every strategies. Reliance mart has immense opportunity in the coming year The marketplace remains present and processes plenty of changes, each from the regulatory in addition to call for a side. On the other hand, running virtual is not the most effective approximately e-trade however the manner interplay with worker and patron engagement and funding in technology (Sroka, 2018). Customers want a progressed enjoyment in phrases of a way to search, browse merchandise and make online transactions. Retail companies want to interact with clients differently, in phrases of the use of a number of channels. Social media is likewise turning into a famous device for clients to train approximately merchandise and evaluate brands.
Threats
Retail regions and leases are major issues in multi-structural retail and obtaining a viable fee under the favored regions is necessary. The stores that had exited towns because of the excessive leases positioned greater strain on profit shares (Sroka, 2018). The attrition within the enterprise may be everywhere between 20 and 25 percent in non-meals and grocery enterprises to as excessive as 60 percent within the meals and grocery sector.
Challenges and Issues in retail sector
The retail sector in India faces many challenges which are generally common in all the countries. The economy of India is growing continuously so retail industries get many potential buyers there (Park et al., 2016). Reliance Mart is growing continuously in the market. The income of Indian people is relatively good so their purchasing power is also good. Despite the above discussed positive points, there are many challenges that the retail industry faces in India. The retail environment of any country is described by the conditions of the people living there and their income pattern. The income difference between the lower class and upper class also affects the retail industry in any country. One extra factor to consider is that as wages rose throughout the long term numerous families wound up in ever-higher expense sections, balancing part of the expanded pay (Shakil et al., 2020). A few evaluations put the expansion in taxation rate for a normal working-class breadwinner as having ascended from around 30% in the sixties to an additional like 40% today. This could even surpass half in high-charge states of India.
Six biggest challenges of the retail industry
Based on the various research and an extensive analysis it has been concluded that six challenges exist in the retail sector
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Inventory management
It is the biggest challenge the retail industry like Reliance Mart face. According to research in India, most of the retail sector loses 10% of its income due to incorrect inventory. Good inventory tells the management what they have to buy and when they have to buy (Vindrola et al., 2020). Studies have shon that the industry loses 3.5% of its customer only because of the unavailability of the important product.
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Employee problem
This problem is common in every sector. Proper management of the employee in Reliance Mart is necessary for any industry (Van et al., 2017). In the retail sector, most of the work is employee depended so if the employees are not managed properly then it creates a problem in the sector. If the employees are not good then it will give poor satisfaction to the customers and so it will be harmful to the sector.
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Inventory shrinkage
It has been estimated that a huge amount of the money in the retail sector of India loses only because of the theft and shrinkage of the inventory. It has been found that only 5% of the stolen goods recered again (Cosmic et al., 2020). It is a huge loss and a very big problem in the retail industry.
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Keeping up with changing technology in the Retail sector
The technology used in the retail sector is changing very fast all the things are moving toward the digital section so it is the biggest challenge for the retail sector in India to be on track by acquiring the latest technology in the sector (Zhu et al., 2018). This sector is also going online very rapidly we have many examples like Jio Mart, Groffers, Big basket all these companies are selling their products online making their customers satisfied with their services.
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Targeting and keeping customers
Due to the presence of the different social media platforms, it is very easy to know the behavior of the customer and targeting the particular segment of the customer. It is also a big challenge in front of the retail sector in India to target and attract a particular group of customers.
Conclusion
The above study and SWOT analysis of Reliance Mart had helped in understanding how the retail industry is thriving in India. It has helped in understanding that the retail companies of India will face a major issue in acquiring investment as there is the existence of many companies who are suffering losses. It has also been recognized that the retail industrial sector needs certain significant changes in its management procedures and functioning which will help them in retaining and sustaining their own market position in India and other parts of the world. On the other hand, there must be better planning and strategy for bringing innovative sales approaches that would generate high demand for products by the customers. The above discussion had also assisted in understanding the different scopes that the retail industry of India would be able to achieve which will further increase the development of the supermarkets and stores in underdeveloped regions of the country in the coming years. Thus, it can be concluded that the study had assisted in observing different positive and negative aspects of the retail industry.
Reflective
I have studied different challenges in the retail sector especially in the Reliance Mart and then I concluded that these challenges are not unique. These types of challenges are present in every sector and so I believe that these can be eliminated very easily. If I talk about the competitors for the sector in the market then this problem can be solved by increasing the quality of the product. According to my opinion if the industry will increase the quality of the product and so start keeping eye on its rivals then this problem can be solved. In the retail sector according to me, inventory management is also a very big problem and according to me, this problem can be solved by implementing a new type of technology that automatically manages the inventory of the sector.
I have felt that the Reliance Mart is also facing a problem with the implementation of the new technology in the sector. I think there is a requirement of the change in the work culture in the sector to implement and new technology. Although the presentation of a portion of the Big Box chains has as of late begun to slow and a couple is closing stores, they guarantee a considerable and expanding extent of retail deals in numerous classes. Large numbers of the extravagance brand makers, especially those situated in Europe, have seen accomplishment with their marked retail locations and keep on expanding there in the Indian retail presence on a standard premise.
According to my research, I also found that for the retail sector it is not easy to target loyal and trusted customers because in this sector customers are very volatile they can easily find substitute of the retail products so it is very difficult for the Reliance Mart to target the proper segment of the customer for the particular product. For this problem, there is only one solution that is targeting social media to understand the behavior of the customers towards the particular product. One extra factor to consider is that as wages rose throughout the long term numerous families wound up in ever-higher expense sections, balancing part of the expanded pay. A few evaluations put the expansion in taxation rate for a normal working-class breadwinner as having ascended from around 30% in the sixties to an additional like 40% today. This could even surpass half in high-charge states of India.
I have researched that in the retail secto like Reliance Martr there is also the immense opportunity is present because this market has a very big base of customers so if properly managed then this sector can attract a large number of customers and so the market of the retail sector can increase very easily. Internet and various online platforms have made the challenge3s of the sector very less so I think if retail sector in India concentrates on the technology then it can perform very well in international market also.
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