Globalization and a very high competition level influence companies all around the world. In order to enlarge their businesses, they try to increase their market shares and look for new prospective markets for the further expansion. Nowadays many emerging markets, particularly India, attract solid overseas investments.
The aim of this bachelor thesis is to estimate the potential attractiveness of India as a market for expansion of an online fashion retailer.
In order to attain the mentioned aim, the thesis will consist of several chapters with theoretical and practical information. Chapter 2 will be focused on the principal information on this topic: market selection criteria, including evaluating market attractiveness and potential risks. Based on these criteria, the most important economical, political, demographical, geographical and administrative information about India, which is relevant to the research, will be provided in chapter 3. This will be followed by an analysis of Indian textile business, including retail market overview and its influencing factors (infrastructure, logistics, IT development, culture, legislative regulations and restrictions). According to restrictions in online business, chapter 5 will be focused on description of four market entry strategies, their advantages and disadvantages.
Next the analysis of the pioneer and follower timing strategies will be provided. Based on all findings before, success factors for running online fashion retail business in India will be formulated. Then there will be given an overview about the important players in the field of online fashion retail in India, the main points of their activities in comparison.
As the completion of the research, the potential Indian market entry strategy will be formulated. This includes an analysis of locations in India and a SWOT analysis, which information will be provided according to the previous findings of the thesis. All derived information and ideas formulated in the thesis will be summarized in conclusion and the main thesis question introduced in the aim will be answered.
Table of Contents
1 Introduction
1.1 Problem
1.2 Aim
1.3 Procedural method
2 Market selection criteria
2.1 Market attractiveness
2.2 Country risks
3 India: the emerging market
3.1 India: general information
3.2 Administrative territorial division
3.3 Political aspect
3.4 Economic stage
3.5 Life standard
3.6 Perspectives
4. Textile business in India
4.1 Retail market
4.1.1 Market overview
4.1.2 Menswear
4.1.3 Womenswear
4.1.4 Childrenswear
4.2 Online retail market
4.3 Influential factors
4.3.1 Information technology
4.3.2 Foreign direct investments in online business
4.3.3 Logistics
4.3.4 Culture
5. International strategies
5.1 Market entry strategies
5.2 Timing strategies
5.3 Success factors
6. Otto GmbH & Co. KG
6.1 Company introduction
6.2 International representativeness
7. Current competitors
7.1 Myntra
7.2 Jabong
7.3 Yepme
8. Expansion attractiveness assessment
8.1 Location selection
8.2 SWOT Analysis
8.3 Expansion strategy
9. Conclusion
Thesis Objective and Research Focus
The primary objective of this bachelor thesis is to evaluate the market potential and attractiveness of India for the expansion of the German online fashion retailer Otto GmbH & Co. KG. The research investigates local market conditions, infrastructure, economic environment, and relevant entry strategies to determine the viability of a market entry.
- Analysis of Indian market growth, demographic shifts, and purchasing power.
- Evaluation of regional differences and location selection criteria for foreign enterprises.
- Examination of online retail market dynamics, including mobile internet usage and e-commerce challenges.
- Assessment of international market entry strategies such as the distinct company model and marketplace approaches.
- Formulation of success factors and a SWOT analysis tailored to the Otto Group.
Excerpt from the Book
3.2 Administrative territorial division
Like virtually no other country, India shows a big political, geographical, economical and cultural heterogeneity. Therefore there are relatively large regional differences in the infrastructure, tax systems, buying and sales markets in the 29 states. Moreover, further facts as support of public authorities and other important stakeholders could be different from state to state.
The same as in China, the companies in India concentrate their business in specific regions. As distinct from China the business is not limited on the coastal areas. Rather the companies distribute in the regions of the metropolises New Delhi, Mumbai, Pune, Bangalore, Chennai, Ahmadabad, Hyderabad and Calcutta.
Summary of Chapters
1 Introduction: Defines the scope of the thesis, focusing on the problem of globalization and the research aim to evaluate India as an expansion market for Otto GmbH & Co. KG.
2 Market selection criteria: Establishes the theoretical framework for evaluating market attractiveness and potential country risks.
3 India: the emerging market: Provides a comprehensive overview of India’s economic, demographic, and political landscape.
4. Textile business in India: Analyzes the specific dynamics of the Indian apparel market, including retail trends and factors influencing the online retail sector.
5. International strategies: Discusses various entry strategies, timing strategies, and critical success factors for entering the Indian market.
6. Otto GmbH & Co. KG: Introduces the company profile, its international activities, and current business model.
7. Current competitors: Examines and compares major players in the Indian online fashion retail field, specifically Myntra, Jabong, and Yepme.
8. Expansion attractiveness assessment: Synthesizes research findings to provide a location assessment and a recommended expansion strategy through SWOT analysis.
9. Conclusion: Summarizes the key findings and provides a final recommendation regarding the attractiveness of India for the Otto Group.
Keywords
India, Online Fashion Retail, Otto GmbH & Co. KG, Market Expansion, E-commerce, Market Entry Strategy, Logistics, Consumer Behavior, Demographic Trends, SWOT Analysis, FDI, Emerging Markets, Apparel Market, Digital Transformation, Location Selection
Frequently Asked Questions
What is the core focus of this bachelor thesis?
The work focuses on determining the potential attractiveness of the Indian market specifically for the expansion of the online fashion retailer Otto GmbH & Co. KG.
What are the central thematic fields addressed?
The thesis covers market selection criteria, macroeconomic and demographic indicators of India, the state of the local textile and online retail industry, and strategic entry models.
What is the primary research question?
The primary research question is whether India offers a viable and attractive environment for Otto GmbH & Co. KG to expand its international business.
Which scientific methodology is applied in this paper?
The author uses a structured analytical approach: evaluating market criteria, conducting a comparative analysis of the existing competition, and utilizing a SWOT analysis to formulate an expansion strategy.
What is the main subject of the main chapters?
The main chapters analyze the economic and cultural landscape of India, detailed textile market trends (menswear, womenswear, kidswear), and the strategic challenges of navigating Indian FDI regulations.
Which keywords characterize the work best?
Key terms include India, Online Fashion Retail, Market Entry Strategy, E-commerce, and SWOT Analysis.
How does the "Distinct Company Model" work for foreign retailers?
Since direct B2C e-commerce investments are restricted, companies often set up two distinct entities: a B2B trading company (permitted for FDI) and a B2C retail entity to circumvent regulations while maintaining operational control.
Why is Gurgaon recommended as the top location for expansion?
Gurgaon is highlighted due to its high growth rates, superior infrastructure, lower recruitment costs compared to Delhi, and proximity to other high-performing economic states.
How does the author view the age disparity between Otto's target group and India's population?
The author notes that while Otto traditionally targets an older demographic (around 40 years), this could actually represent a strategic market niche in a country where competitors are aggressively focusing on younger consumers.
- Citar trabajo
- Steven Wolf (Autor), 2016, India as a potential market for expansion of an online fashion retailer, Múnich, GRIN Verlag, https://www.grin.com/document/338541
