3.Characterize the Indian Retail consumers.

Do they have any uniqueness that is

distinctly different from any other group of consumers that you have come across?

• Indian middle class increasingly spending more on aspirational and non-essential goods
• By 2020, the median age of Indian customers is estimated to be 29, also the purchasing
power of Indian customers is estimated to double over the next decade
The uniqueness of Indian consumers
For most Indian customer, loyalty is category rather than brand or store loyalty
They were neither habituated nor comfortable with shopping in very large stores and they
needed some help during their shopping period
Did not involve in bulk shopping for a long period of time. Different time durations for
different categories of items and and choose different type of store to buy different
category of merchandise
Frequent changes during purchase decision process. Actual purchased items differed from
pre-purchase stage for about three quarters of urban population
4.Who are the major competitors of Spencer's? How are they doing? Highlight the reasons for their
performance?
Spencer’s Reliance Future Avenue Hypercity Trent
Retail Limited Fresh Ltd. Enterprises Supermarts Retail Ltd. Hypermarket
Ltd. Ltd. s Ltd.
Revenues
(in millions) 16,818.59 1,66,503.60 94,248.40 66,203.30 10,561.43 7,979.80
Net
Profit/Loss -1,735.52 2,724.80 379.90 2,113.90 134.77 -843.10
(in millions)
Net
Profit/Loss -10% - 0% 3% 1% -11%
Margin
ROA -21.35 3.18 0.12 9 2.63 -7.87
ROE -2,594.54 5.25 0.35 17.71 25.28 -10.38
Quick Ratio 0.37 3.30 - 1.91 1.21 1.19

From the table above it can be concluded that

• The net profit margins for the competitors is low
• But the competitors are doing relatively better in ROA, ROE and Quick Ratio