The main focus of this research is in the area of organised retail specifically in the convenience stores format in India.
The Indian organised retail is growing rapidly but is still in the nascent stage. There are many challenges in terms of infrastructure, supply chain efficiencies, cost structure and customer adaptability to the emerging retail formats.
India is perceived to be a lucrative destination for retail and with opening up of foreign direct investment imminent many multinational giants are eyeing India.
Indian companies are grappling with many challenges and experimenting with many formats in retail. This study attempts to understand the present scenario and the preparedness of domestic companies in consolidating their existing position to evolve a business frame work model for domestic companies to not only consolidate their existing position but also counter threats from multinationals entering into India.
The research revealed that there are not many integrated business models, though there are models on different components of supply chain and retail, Indian companies will certainly benefit from creation of integrated business model which can assist them in taking strategic decisions in terms of managing cost and revenue structure and expansion plans.
This study is intended to understand the drivers and factors influencing the back end operations in the area of supply chain efficiencies and the front end operations particularly in respect of costs, revenues and key drivers to create an integrated business model frame work to drive optimisations at all levels. Sample of this study was two major organised retail companies in Bangalore catering to about seventy outlets in Bangalore and having distribution centres.
Tools used in this study was data observation sheets for all the key parameters for both back end and front end operations, in addition to unstructured in depth interview with expert group.
Some Major findings were:
Stock keeping units, cost of procurement and secondary freight emerged as significant drivers to be controlled for efficiency and optimisation link in the back end grocery and staples.
Rentals, Sales, Cost of goods sold, Total personnel cost and Total facilities cost had significant influence on EBIDTA of front endsuper market.
Break even point for same size stores differed depending upon the location.
Sensitivity analysis revealed that manpower, rent and total facilities cost had significant impact on EBIDTA .
Table of Contents
- 1 INTRODUCTION
- 1.1 INDUSTRY OVERVIEW
- 1.2 FDI SCENARIO IN INDIA
- 1.3 MULTI BRAND RETAIL
- 1.4 OVERVIEW OF FORMATS AND CHANNELS
- Supermarkets
- Convenience Stores
- Discount Stores
- 1.5 REGULATORY FRAMEWORK
- 1.6 FOREIGN DIRECT INVESTMENT
- Foreign Exchange Management Act (1999)
- 1.7 BUSINESS MODEL IN THE CONVENIENCE STORE FORMAT
- 1.8 INTRODUCTION TO DRIVERS, FACTORS AND VARIABLES
- 1.9 NEED FOR THIS STUDY
- 2 REVIEW OF LITERATURE
- 2.1 STUDIES RELATED TO FOREIGN DIRECT INVESTMENT
- 2.2 STUDIES RELATED TO SUPPLY CHAIN AND VALUE CHAIN
- 2.2.1 Key Drivers and Facilitators of Back End Operations
- 2.2.2 Key Drivers for Fruits and Vegetables
- 2.2.3 Key Cost Drivers for Front End Operations
- 2.3 BUSINESS MODEL PARAMETERS OPERATING
- 2.3.1 Innovations in Retail Business Models
- 2.3.2 Innovations in Retail Pricing and Promotions
- 2.4 RESEARCH GAP
- 3 RESEARCH DESIGN
- 3.1 STATEMENT OF THE PROBLEM
- 3.2 VARIABLES UNDER INVESTIGATION
- Operational Definitions
- 3.3 OBJECTIVE OF THE STUDY
Objectives and Key Themes
This study aims to understand the current state and preparedness of domestic companies in the Indian convenience store market, specifically focusing on the grocery and staples and fruits and vegetables sectors. The goal is to develop a business framework model that will help these companies consolidate their position and compete against multinational giants entering the Indian market. The research investigates the supply chain and value chain within the convenience store format, analyzing both back-end (supply chain efficiencies) and front-end (costs, revenues, and key drivers) operations.
- Value chain analysis in the Indian convenience store market.
- Supply chain efficiencies in grocery and staples, and fruits and vegetables.
- Cost and revenue drivers in convenience store front-end operations.
- Development of an integrated business model framework for domestic companies.
- Competitive strategies for domestic companies against multinational entrants.
Chapter Summaries
1 INTRODUCTION: This introductory chapter provides an overview of the Indian organized retail industry, highlighting its rapid growth and challenges. It discusses the FDI scenario in India, the multi-brand retail landscape, different retail formats (supermarkets, convenience stores, discount stores), the regulatory framework, and the implications of foreign direct investment. It sets the stage for the study by emphasizing the need to understand the current situation and prepare domestic companies for future competition, particularly focusing on the convenience store format in the grocery and fruits/vegetables sectors. The chapter introduces the drivers, factors, and variables that will be investigated in subsequent chapters, laying the groundwork for the research questions and objectives.
2 REVIEW OF LITERATURE: This chapter reviews existing literature related to foreign direct investment in retail, supply chain and value chain management in the context of convenience stores, and the business models used by these stores. It specifically examines studies focusing on key drivers and facilitators of back-end operations (supply chain), key cost drivers for front-end operations (retail), and innovations in retail business models and pricing strategies. The chapter identifies research gaps that the current study aims to address.
3 RESEARCH DESIGN: This chapter outlines the research design and methodology employed in the study. It clearly states the problem being addressed, defines the variables under investigation, and explicitly articulates the study's objectives. The chapter details the methods used for data collection and analysis (data observation sheets, interviews, linear programming), providing a clear understanding of the approach undertaken to address the research questions.
Keywords
Indian organized retail, convenience stores, value chain, supply chain, foreign direct investment (FDI), business model, grocery, fruits and vegetables, cost optimization, revenue drivers, competitive strategy, integrated business model, Bangalore.
Frequently Asked Questions: A Study of the Indian Convenience Store Market
What is the overall focus of this study?
This study analyzes the Indian convenience store market, focusing on the grocery and fruits/vegetables sectors. It aims to understand the preparedness of domestic companies to compete with multinational entrants and develops a business framework model to aid their competitiveness.
What are the key themes explored in the study?
Key themes include value chain analysis in the Indian convenience store market; supply chain efficiencies in grocery and staples, and fruits and vegetables; cost and revenue drivers in convenience store front-end operations; development of an integrated business model framework for domestic companies; and competitive strategies for domestic companies against multinational entrants.
What aspects of the convenience store market are examined?
The study investigates both back-end (supply chain efficiencies) and front-end (costs, revenues, and key drivers) operations within the convenience store format. It also considers the regulatory framework and the impact of foreign direct investment (FDI).
What is the scope of the literature review?
The literature review covers studies related to foreign direct investment in retail, supply chain and value chain management in convenience stores, and the business models employed. It specifically examines studies on key drivers of back-end and front-end operations and innovations in retail business models and pricing.
What is the research design of the study?
The study uses a research design that includes defining the problem, identifying key variables, and outlining objectives. The methods used for data collection and analysis are detailed, including data observation sheets, interviews, and linear programming.
What are the key findings or conclusions (as previewed)?
While the full findings are not detailed in this preview, the study aims to provide a business framework model that helps domestic companies in the Indian convenience store market consolidate their position and compete effectively against multinational corporations. The study also intends to highlight key cost and revenue drivers for convenience store operations and identify strategies for enhancing competitiveness.
What are the key words associated with this study?
Key words include Indian organized retail, convenience stores, value chain, supply chain, foreign direct investment (FDI), business model, grocery, fruits and vegetables, cost optimization, revenue drivers, competitive strategy, integrated business model, and Bangalore.
What is included in the Table of Contents?
The Table of Contents includes an introduction covering industry overview, FDI scenario in India, multi-brand retail, retail formats, regulatory frameworks, foreign direct investment, business models, and the need for the study; a review of literature; and a section on the research design.
- Arbeit zitieren
- A. S. Suresh (Autor:in), 2012, A study on the value chain of domestic multi brand retail in the convenience stores format and their interrelationship at Bangalore, München, GRIN Verlag, https://www.grin.com/document/465490
