Essay About Major Factors And Advantages Of Government Regulations

Shoppers’ Stop Case Study
EXECUTIVE SUMMARYShoppers’ 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:Changing demographics – having 2nd largest population in the world and having 70% of youth (15-35 years) Middle income class- (Rs 90,000- 1,80,000) expected to increase from 24.5%-32%Easy credit – Introduction of credit cards by citybankGovernment support- 51% ownership by foreign enterprise in a local retail venture of single brand allowedAs 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. Advantages of Government Regulations and other in-country factors:In-country factors: Large young population in IndiaChanging attitude of people from saving to spendingAvailability of working class peopleEase in availability of resourcesIncrease in working women, decreasing the depending ratio                  Government regulations: Easy creditsFDI in retailAs a result of FDI, adoption of technology from other countriesThese 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.