Chapter -2 - Literature Review / Secondary Research

About the sector

1. Market Size You are wondering about the Market size of shoppers
by apparel size. According to Statista, the global plus-
size apparel Market was valued atUS$264.9 billion in 2021 and is anticipated to reach
US$309.5 billion by 2024, with a composite periodic growth rate (CAGR) of 5.1.
2. You are interested in the Market size of shoppers by shopping wain size. A
2017 study by IGD Retail Analysis set up that
the average paperback's wain size was 22 particulars.
3. You are curious about the Market size of shoppers by grocery store. According to
Nielsen, Walmart is the largest grocery retailer in the United States, with
a Market share of 24.4.

Market Share
The Market share of shoppers by size depends on the specific environment in which you
are considering paperback size. Then are two possible interpretations of your query

1) Market share of shoppers stop by cloths size:

The global plus- size apparel Market was valued atUS$264.9 billion in 2021 and is
anticipated to reachUS$309.5 billion by 2024, with a composite periodic growth rate
(CAGR) of5.1. This indicates that the share of plus- size shoppers is growing steadily.

According to Statista, the breakdown of the global plus- size apparel Market by size is as
follows
 Plus size (sizes 14- 24) 65%
 Curvy (sizes (26- 36) 25%
 Extended sizes (sizes 38- 48) 10%

2) Market share of shoppers by grocery store size

The average paperback's wain size is 22 particulars. This indicates that most shoppers are
making relatively small purchases. still, there a small but significant member of shoppers
who make veritably large purchases, frequently for large families or businesses.
According to Nielsen, the Market share of grocery stores by size is as follows
 Supermarkets (stores with over 40,000 square bases) 38%
 Mass merchandisers (stores with over 20,000 square bases) 26%
 Convenience stores (stores with under 4,000 square bases) 22%
 Drugstores (stores with a drugstore) 14%

It important to note that these are just general trends and there will be significant
variation depending on the specific Market. For illustration, in civic areas, there may be
advanced proportion of convenience stores, while in pastoral areas, there may be
advanced proportion of supermarkets.

Sector Contribution to GDP: The retail sector in India has become one of the most
dynamic and fast-paced industries because of the entry of numerous new enterprises. It
generates about 8% of employment and more than 10% of the nation's GDP. India ranks
as the fifth-largest international destination for retail. India ranked 73rd in the 2019
Business-to-Consumer (B2C) E-commerce Index published by the United Nations
Conference on Trade and Development. According to the World Bank's Doing Business
2020 report, India is the fifth-largest retail market in the world.
For international retail behemoths eager to expand into new countries, India's sizable
middle class and almost untouched retail market are the primary alluring factors,
allowing the Indian retail company to grow more quickly. The urban Indian consumer's
purchasing power is growing, and branded goods in areas including apparel, cosmetics,
footwear, watches, beverages, cuisine, and even jewellery are quickly becoming the
preferred choices for both business and pleasure. Recent research by the Boston
Consulting Group projects that India's retail market would be worth $2 trillion by 2032.
(BCG).
India ranks as the fifth-largest international destination for retail. India came in at
number 16 on the FDI Confidence Index, behind the US, Canada, Germany, the UK,
China, and Japan.
Sector Composition
The retail sector includes all companies that provide goods and services to customers.
There are many different types of retail sales and stores, including grocery, convenience,
discount, independent, department, DIY, electrical, and specialised stores, all around the
world. Given the growing popularity of online purchasing, the retail sector employs a
sizeable workforce globally and experiences constant increase year over year.

Sector & Sector Composition CAGR - The cumulative annual growth rate (CAGR) for
the global retail market is estimated to be 11.3%, rising from $23.65 trillion in 2021 to
$26.33 trillion in 2022. By 2026, it is expected that the global retail market will grow at a
CAGR of 10.1%, reaching $38.71 trillion.

Sector & Sector Composition growth/de-growth catalyst

The Indian retail sector has discovered a lot about the post-2021 market. The sector fell
by 8.5% in the fiscal year 2021, although it recovered the following year to reach $836
billion, with conventional retail accounting for 81.5% of the total. However, the COVID-
19 disturbances hastened the adoption of e-commerce and digital technology. Businesses
from all industries are now concentrating on increasing their online presence and direct
sales as consumers continue to make purchases online.
Fortunately, India has experienced an increase in the attraction of foreign enterprises
over the past few years; it is currently the fifth-largest global destination for retail. The
industry's growth is reliant on several factors, including rising disposable incomes, Gen
Z exposure to international brands, and business accessible.
Government Initiatives & FDI
 India's economy is based in part on retail, which accounts for between 14% and 15%
of its GDP (GDP). The Indian market is expected to be one of the top five retail
markets in the world by economic value, with a projected value of US$ 450 billion.
India, which has 1.2 billion people, is one of the global retail markets that is growing
the quickest.

 The retail industry in India, which is viewed as a growing one, offers enormous
growth potential. The Investment Commission of India projects that the market will
grow by roughly three times its current rates to reach US$ 660 billion by 2015.
 According to the most recent data from the Department of Industrial Policy and
Promotion, foreign direct investment (FDI) inflows into single-brand retail trade
reached a total of US$42.70 million between April 2000 and June 2012. (DIPP). Cash
 and carry have a potential value of around Rs 8,250 billion out of the Rs 27,500
billion in retail purchases that occur in India each year.

The Indian government is playing a crucial role in making the Indian retail industry the
most lucrative for non-resident Indians (NRIs) and individuals of Indian origin (PIOs).
Several of the government's notable initiatives are listed below:
 For single-brand retail, the Indian government has allowed 100% FDI, and for multi-
brand retail, 51% FDI.
 IKEA is asking for additional relaxing of the rules; therefore, DIPP is likely to think
about changing the sourcing requirements for foreign retailers opening outlets in
India.
 •
 The Union Ministry of Finance has reduced pressure on the Rs 18,000 crore (US$
3.25 billion) software industry by replacing a multi-level system of tax deducted at
source (TDS) on distributors with a single TDS. This would be subtracted by the
initial distributor—one who directly purchases packaged software from a developer.
Foreign Direct Investment
 The federation has agreed to the Indian government's new FDI rules for retail. In
single-brand retail, the government has stated that it will authorise 100% FDI, and in
multi-brand retail, 51% FDI. In addition, the administration opened up the aviation
sector and proposed divesting four PSUs.
 The ISF expected that FDI in the retail sector will have a substantially broader impact
on organised employment than what occurred in the IT industry more than 10 years
ago. According to the organisation, these initiatives will increase the opportunities
available to people with low skill levels.
 Porter 5 Force Model Analysis

THREAT OF BARGAINING POWER
 SUBSTITUTE COMPETITIVE
OF BUYER’S RIVALRY
 Technology advancements Use of internet to get all the
Continuous innovation leads
Buyers have huge propensity information enables
to intense rivalry
to substitute customer to be powerful

THREATS OF NEW
BARGAINING POWER ENTRANTS
OF SUPPLIER’S
Highly capital intensive.
Product differentiation is
very low. Major players have
developed brand equity.
Macro & Micro Environmental Analysis of the Industry

Macro Analysis

 Political factors - If the political climate of the nation changes due to demonstrations,
blockages, or prohibitions, this will cause a disruption in the flow of goods and
services. Therefore, if there is a conflict in local politics, businesses cannot operate
effectively. Some governments, including India, forbid foreigners from making direct
investments there. Businesses find it difficult or impossible to operate and perform
worldwide due to all these issues.
 Economic factors - It is anticipated that retail sales would top $30 trillion US by the
end of 2023. It indicates that consumers would have more disposable income, which
would result in higher personal spending and, ultimately, a rise in global retail
industry sales. The economy of a country has an impact on the atmosphere, people's
attitudes, and their choice to spend or not. If the economy is doing well, people may
spend money because they have jobs and other sources of income. Otherwise, they
will not. Retailers are prohibited from lowering prices below a particular threshold.
 Social Factors - Age, gender, ethnicity, economic level, and level of education of
clients are social factors. E-commerce retail businesses provide their customers goods
and services in accordance with their online purchasing patterns and the time they
spend online. When a customer returned to the business the following time, the
computer would give him the information based on his prior searches. demographic
and social factors that affect a retailer's business.
 Technological factors - Online retail outlets and conventional shopping malls have
both been impacted by technology. It could take the form of compiling sales statistics,
controlling the financial flow of the business, or maintaining sales records. Businesses
must use hardware and software technologies to stay current. The e-commerce
industry benefited the most from technology. Online stores, particularly those using
the internet, can advertise their products and services globally without any restrictions
on borders. Customers all over the world can purchase products and services from
businesses like Amazon and Alibaba. You only need one reliable website with a
catalogue of the products and services you are offering, a reliable internet connection,
and a reliable delivery mechanism. Amazon and Walmart are online competitors.
Retailer. They not only offer products and services but also ship products right to
 customers' doorsteps The ease with which one can set up shop online and advertise it
does not indicate that there are no other online merchants.
 Legal factors - Since they operate within a country's legal system, retail enterprises
are subject to local labour laws, excise and tax laws, and other business regulations.
When a business plans to expand globally, the laws and regulations become slightly
more challenging. This is due to the fact that each country has different copyright,
commerce, and tariff laws. If a firm decides not to follow by the local rules and
regulations of one or more nations, it may suffer limitations, a ban, insolvency, or
foreclosure. As a result, the business is required to follow local laws.
 Environment factors - Certain businesses must deal with two environmental issues:
the clearing of contaminated stock and product expiration dates. Items arrive from a
range of vendors, each of whom has a certain expiration date, when salesmen place
them on racks. The order of the things is screwed up according to which one expires
or arrives first. If a retail business does not maintain a standard healthy environment
within the store, food and safety officials will either prohibit it or fine it a specific
amount.

Micro Analysis

 Suppliers - Suppliers are businesses and people who provide the materials the shop
need. For instance, a retailer must purchase a variety of goods from several sellers to
stock up on them for customer inquiries. Changes in the "suppliers'" environment
could have a big impact on the retailer's marketing tactics. Retail managers need to
keep an eye on fluctuations in the costs of their basic supplies. They are equally
concerned about the supply situation. It may not be able to meet delivery deadlines
due to supply problems or other circumstances, which could lead to short-term
revenue losses and long-term damage to customer loyalty. to stay away from relying
on a single supplier who might impose supply restrictions or raise pricing at will,
many retailers pick to source their goods from various providers. The goal of retail
buying agents is to build solid, long-lasting relationships with key suppliers. These
representatives learn that in times of shortage, they must "sell" their company to
suppliers to have priority supply.
 Intermediaries - Businesses referred to as intermediaries assist retailers in
marketing, selling, and distributing their goods to consumers. Large firms might
employ agents to find retailers in different South Indian cities, and these agents
 might be compensated with fees based on the stores' profitability. Instead, then
buying the things themselves, the agents instruct merchants to buy certain items,
which they then sell to buyers. Physical distribution businesses assist the store in
stocking and moving goods from their initial locations to their ultimate locations.
Warehousing businesses store and secure goods before transporting them to
their next site. Every store must decide how much storage space to build for both
internal use and to accommodate a variety of products.
 Customers - To effectively deliver the appropriate goods and services to his target
market, a retailer forges relationships with suppliers and middlemen. Its target market
can be individuals and families who buy goods and services for personal use.
 Competitors - A store rarely serves a particular customer market by itself. In the
fiercely cutthroat retail industry, there are numerous competitors fighting for
customers. The marketing strategy of the retailer is surrounded and influenced by
many competitors. It's important to keep an eye on and outsmart these competing
companies in order to gain and maintain customer loyalty.

About the company

Brief History of company

Shoppers Stop Limited engages in the retail sale of a variety of consumer and household
goods. The company operated 83 of these department stores as of March 31, 2019, in India's
various cities. K Raheja Corp created the groundwork, and on June 16, 1997, Shoppers Stop
Limited (SS), a significant participant in the Indian retail sector, was established as a private
limited company. It launched operations and opened its first store in the Mumbai suburbs. A
well-known retailer, Shopper's Stop is noted for its high calibre products and services and,
most importantly, for providing a complete shopping experience. It offers a wide selection of
branded and own-label clothing, footwear, cosmetics, jewellery, leather goods, and
accessories. household goods, books, music, and toys is active in Mumbai's cities. Chennai,
Delhi, Kolkata Bangalore, Texas, and Pune Gurgaon and Jaipur. Only menswear was sold in
the original store, which debuted in 1991 in the Mumbai neighbourhood of Andheri. 1992
saw the introduction of ladieswear. After a year, the company expanded its product line to
include Children & Non-Apparels in 1993. A loyalty programme called First Citizen was
launched in 1994, and in 1995 the company opened a second facility in Bangalore. The
company's status was changed in December of the same incorporation year, 1997, to be
regarded as a public limited company. In 1999, SS installed JDA Retail ERP, the top retail
ERP software, after opening its third location in Hyderabad in 1998. Additionally, In the
same year of 1999, the business opened its fourth and fifth locations in Jaipur and Delhi. In
2000, the company opened its sixth and seventh locations, respectively, in Chennai and
Chembur, Mumbai. The largest network of retail book stores in the nation, Crossword India,
was also purchased by SS in the same year. As of March 31, 2019, the Company had five
subsidiary companies. In 2001 and 2002, respectively, the company opened its eighth and
ninth locations in Pune and Bandra, as well as its tenth facility in Kandivali, Mumbai. SS's
status underwent another adjustment on October 6, 2003, transforming it into a full-fledged
public limited corporation. In Mulund (Mumbai), Gurgaon, and Kolkata, respectively, the
corporation already launched its eleventh, twelfth, and thirteenth stores in 2003. In 1991, the
first store was established in Andheri, Mumbai. In 2006, the business launched its 22nd
location in Lucknow. It formed a collaboration with Nuance Group AG in 2007 and set up
shop in Bengaluru and Mumbai's T1 airports. In 2008, a big Indian city-wide delivery e-store
became operational. In 2016, a smartphone app followed. After serving as the non-executive
chairman of the retail chain for more than 20 years, promoter Chandru L. Raheja resigned in
June 2018 as part of a board restructuring. BS Nagesh succeeded Chandru Raheja.

Brief Introduction about company

Shoppers Stop Limited operates department stores where it sells a range of consumer and
household items. Its offers include non-apparel items and clothing. The non-apparel category
also includes books, music, household items, leather products, and technology. The company
sells clothing, presents, and fashion accessories from domestic and international brands for
men, women, and children as well as men's and women's watches, purses, fragrances, men's
and women's shoes, and home furnishings and décor goods. Along with Elliza Donatein,
STOP, Kashish, Life, Haute Curry, and Velorio Fratini, it has more than six proprietary
brands. The First Citizen Loyalty Program is available to clients. Its programme is available
on both the Google Play Store and the Apple App Store.
Brief notes on Top Management

Unit Head

Retail operation manager

Department manager

Personal shopper

Fashion consultant

Customer care associate

1. Unit head
 LEAD & I learn
 MDP (Management Development Programme)
 AGILE

2. ROM (Retail operation manager)

Platinum certification levels

Level 1 LEAP & I learn and project management
Level 2 Managing team
Level 3 Planning and Forecasting
Level 4 Market Mapping and analysis
Level 5 P.O.E.M

3. Department manager
1) vishal (women western wear)
2) vinay (men’s casual and forma)
3) Vaibhav ( kids)
 Diamond – certification levels
Level 1 Managerial excellence and train the trainer
Level 2 store P&L and finance
Level 3 Flex (first line of executive excellence)
Level 4 I learn

4. Personal shopper

Gold - certification levels

Level 1 - personal shopper course – basic
Level 2- personal shopper course- advanced
Level 3- team management and leadership

Companies Product

1. Apparel – Shirts, skirts, dresses, jumpsuits, jackets, bottom wear, baby suits, winter wear
pants, sportswear, lingerie, nightwear,
2. Accessories
3. Footwear
4. watches & Jewellery
5. Traditional
6. Beauty Products
7. Luggage
8. Formal wear
9. Sportswear

Michael Porter Value chain Analysis

Market Penetration of product / service Rural, Semi Urban & Urban

Target, Segment, and Positioning

Target
 Income: Monthly household income exceeding Rs. 50,000
 Lifestyle: Aspiring, brand-conscious, and value experiences

Segmentation
Shoppers Stop segments its market based on various factors, including:
 Demographics: Age, gender, income, family size, location
 Psychographics: Values, interests, lifestyle, personality traits
 Behavioural: Shopping habits, brand preferences, occasion
Key segments:
 Fashion-conscious professionals: Young adults with high disposable
income who prioritize trendy apparel and accessories.
 Aspiring families: Young couples and families looking for good quality
products for the entire household.
 Value-seeking shoppers: Customers who appreciate good deals and
discounts on branded products.
 Experience seekers: Individuals who enjoy the in-store experience and
look for a curated selection of products and brands.

Positioning
 SHOPPERS STOP positions itself as a global premium Retailer outlet.
 SHOPPERS STOP is positioned as family store delivering a complete shopping
experience.
 SHOPPERS STOP (START SOMETHING NEW)
 Quality: Focus on branded and international merchandise.
 Variety: Extensive selection of apparel, footwear, beauty products, homeware, and
more.
 Convenience: One-stop shop for all family needs.
 Experience: Emphasis on in-store ambience, customer service, and loyalty programs.
Sales & Distribution Channels
 Shoppers Stop Ltd. Excludes class, Comfort, Convenience where ever it is located
 Shoppers Stop Ltd. Not only concentrates on the location of the stores but also
emphasis on the ambience and service excellence.
 Shopper stop is Indian Largest chain of super Stores with an Aggregate acquired area
of 11 lakh sq. feet.

Concept of Margin: GMROI & ROI of Product / Service

Promotional Mix of Product

 SS Uses print and online media.
 SS also ties companies to produced specialised apparels.
 Print advertisement has been used to showcase latest fashion and trends available at
its stores.

Recent Merger & Acquisition

The purchase of the Shoppers Stop attachment Hyper City Retail for' 655 crore in a cash-
cum- share deal was authorised by the board of the Kishore Biyani- led unborn Retail on
Thursday. At the moment, Shoppers Stop owns 51 of the decoration grocery chain Hyper
City, which consists of 19 hypersmart stores, and K Raheja Corp owns the remaining 49. The
purchase of the Shoppers Stop attachment Hyper City Retail for' 655 crore in a cash- cum-
share deal was authorised by the board of the Kishore Biyani- led unborn Retail on Thursday.
Now, Shoppers Stop owns 51 of the decoration grocery chain Hyper City, which consists of
19 hypersmart stores, and K Raheja Corp owns the remaining 49. Rakesh Biyani, common
managing director of Future Group, claims that of Hyper City's total debt of Rs. 546 crores,
as part of the agreement, unborn Retail would get a transfer of Rs 250 crore.

In agreement with an unborn Retail advertisement, the merchandisers (Hyper City) would
admit shares of Future Retail worth Rs 500 crore, while the remaining Rs 155 crore would be
paid in cash. Hyper City Retail would join unborn Retail as a completely possessed
attachment following this deal.

According to the advertisement, the board of unborn Retail has decided to award completely
paid- up equity shares of two each to the merchandisers on a preferential base for a
decoration of Rs 535 per share, totalling Rs 500 crore.

Application of Marketing Tools

SWOT – Company

SWOT Analysis for Shoppers Stop

Strengths Weaknesses
Strong brand High price point
Wide product range Limited reach
Omni-channel presence Operational inefficiencies
Loyalty programs Vulnerability to economic downturns
Experienced management Limited private label offerings

Opportunities Threats
Expand online presence Intense competition
Tap into Tier II and Tier III cities Rising operating costs
Develop private label brands Changing consumer preferences
Focus on experiential marketing Economic uncertainty
Embrace sustainability Disruptions in supply chain
Product / Service

BCG Matrix

High Low

Market
4P’s / 7P’s Marketing Mix

 Product
 Wide Variety: Shoppers Stop offers a vast array of products across categories
like apparel, footwear, accessories, beauty, homeware, and more. It caters to
diverse segments with private labels, international brands, and exclusive
collections. Shoppers Stop product variety
 Focus on Quality: Shoppers Stop emphasizes quality by partnering with
established brands and maintaining strict sourcing standards. This assures
customers of a reliable shopping experience.
 Trendy and Seasonal: The product range is constantly updated with the latest
trends and seasonal offerings, keeping customers engaged and coming back for
more.
 Price
 Competitive Pricing: Shoppers Stop adopts a competitive pricing
strategy, offering products at market-relevant prices. This attracts budget-
conscious shoppers while maintaining its premium image.
 Value-Added Offers: Regular discounts, promotional sales, and loyalty
programs make Shoppers Stop a value-driven proposition, attracting price-
sensitive customers.
 Premiumization Through Private Labels: The introduction of premium private
labels caters to high-end customers willing to pay more for exclusivity and
quality.

 Place
 Strategic Locations: Shoppers Stop stores are strategically located in prime
areas of major cities, ensuring easy accessibility for target customers.
 Omnichannel Presence: The brand's strong online presence complements its
physical stores, offering a seamless shopping experience across channels.
 In-Store Ambiance: Shoppers Stop stores boast a modern and inviting
ambiance, making the shopping experience enjoyable and comfortable.

 Promotion
  Multi-Channel Marketing: Shoppers Stop utilizes various marketing
channels, including television, print, digital media, and social media, to reach its
target audience effectively.
 Loyalty Programs: The "First Citizen" loyalty program rewards frequent
shoppers with points, discounts, and exclusive benefits, fostering customer
loyalty and repeat business.
 Targeted Campaigns: Shoppers Stop launches targeted campaigns for specific
occasions, segments, and products, ensuring a personalized and relevant
marketing approach.

 People: Shoppers Stop invests in training and development of its staff to provide
excellent customer service and enhance the overall shopping experience.

 Process: The brand follows efficient inventory management, supply chain systems,
and billing processes to ensure smooth operations and customer satisfaction.

 Physical Evidence: The store's design, layout, and visual merchandising contribute to
the brand image and create a positive shopping environment.
Product Life Cycle

1. Introduction Stage: Imagine a runway debut for a trendy line of activewear.

This marks the introduction stage, where Shoppers Stop spotlights the new
arrival, generating excitement and curiosity with targeted campaigns and limited
availability.
2. Growth Stage: If the product strikes a chord with customers, it takes center stage
in the growth stage. Sales soar, distribution expands, and profitability blossoms as
Shoppers Stop maintains marketing support to solidify its position.
3. Maturity Stage: As the market saturates, the product enters a graceful waltz with
slower sales growth. Shoppers Stop might introduce strategic discounts or
variations to keep the dance floor packed, selectively targeting specific segments
or occasions.
4. Decline Stage: Eventually, the music fades, and the product enters the decline
stage. Reduced distribution and clearance sales become the final act before
Shoppers Stop bids farewell, making way for fresh arrivals to take center stage
and repeat the captivating cycle.
Product / Service -Unique Selling Propositions

The McKinsey 7S Framework

The 7S of McKinsey 7S strategic framework are – Strategy, Structure, Systems, Skills,
Staff, Style, and Shared Values.

 Strategy: Shoppers Stop's strategy revolves around furnishing a decoration

shopping experience with a wide range of products across colourful orders,
appealing to different client parts. They emphasize quality, trendy immolations,
and competitive pricing.
 Structure: Shoppers Stop has a hierarchical structure with indigenous and store-
position operation brigades. They also have separate departments for retailing,
marketing, operations, and finance.
 Systems: Shoppers Stop utilizes effective force operation systems, force chain
networks, and billing processes to insure smooth operations. Their fidelity
program (" First Citizen") incentivizes repeat guests and promotes data collection.
 Shared Values: client satisfaction, quality, invention, and hand well- being are
some of the core values driving Shoppers Stop's operations.

 Skills: Shoppers Stop invests in training and development of its staff to make
moxie in product knowledge, client service, and sales techniques.
 Style: Shoppers Stop's leadership is known for its focus on data- driven decision
timber, dexterity, and fostering a positive and cooperative work environment.
 Staff: Shoppers Stop employs a different pool with experience in retail,
marketing, and colourful product orders. They emphasize hand engagement and
provocation.