Shoppers’ Stop Case Study

                                     EXECUTIVE SUMMARY

Shoppers’ stop, a chain of retail stores, promoted by K.Raheja corp. is considered as a caring brand. It aims to attract young customers by adopting various strategies. The company provides various categories of things like clothing, accessories, home and kitchenware, cosmetics, etc. However the three major competitors of Shoppers’ stop have been Pantaloons, Lifestyle and Central.

4 major factors which affected India’s retail revolution were:

1. Changing demographics - having 2nd largest population in the world and having 70% of youth (15-35 years)
2. Middle income class- (Rs 90,000- 1,80,000) expected to increase from 24.5%-32%
3. Easy credit - Introduction of credit cards by citybank
4. Government support- 51% ownership by foreign enterprise in a local retail venture of single brand allowed

As the attitude of Indian people changed slowly from saving to spending because of increase in their income levels, shoppers’ stop gained more importance in customers’ mind as world class brand to match their social status.

1. Advantages of Government Regulations and other in-country factors:

In-country factors:

• Large young population in India
• Changing attitude of people from saving to spending
• Availability of working class people
• Ease in availability of resources
• Increase in working women, decreasing the depending ratio

                  Government regulations:

• Easy credits
• FDI in retail
• As a result of FDI, adoption of technology from other countries

These advantages may sustain in future as it is expected that by 2020, the average age of Indians will be 29 years. In addition to this, the decrease in dependency ration, increase in spending capacity of people and advancement in advertisement and promotional activities will help these advantages to continue in future.