Shopper stop is ranked 9th in the retail segment overall in the overall retailing segment in India. With the FDI in single brand allowed till 100% in India and apparel majors like Zara and H&M entering India Shoppers stop has awakened. Now in its online model it is going to sell books and grocery too. It is done cheaply, with a budget of 60 Cr INR, as the future group’s other business like hypercity and crossword can also leverage that infrastructure. Through entering the Shopper’s Stop Ltd: Competitive Position 2016 Channel Market Value Share Rank Store-based retailing 0.1% 6 Hypermarkets 5.3% 3 Department stores 20.0% 2 Brick and Mortar will Endure: Shoppers Stop believes in Omni-channel approach to drive sales with the emphasis on seamless and engaging customer experience and plans to sell products and brands online via tie up with leading online e-commerce portals.However, the chairman and the investors are highly still optimistic of the offline model and said that online model is being introduced from catching up but the revenues are still through the offline model only. They consider online as an additional option and want to tap into this model to support the retail sales. Because of this attitude the shopper stop though being entered online was not able to mark its presence and is not leading change in e-retail segment. They are expecting a 10% contribution of sales towards revenue from online in the coming 3 years. In FY 2017-18 report all the leaders of the firm are in opinion that they are the firm believers in omni-channel marketing. Analysis of online model from annual reports: The yearly figures of previous year are as mentioned below (Rs. In Cr.): Mar ’18 Mar ’17 Mar ’16 Mar ’15 Sales Turnover 4,011.34 3,838.77 3,413.20 3,041.99 Reported Net Profit 11.60 -19.94 25.18 40.74 An amount of 60 Cr. INR was spent to strengthen the online presence of the retail store , though this has started paying off, the investments are yet see full returns. The company is yet to see increase in revenue from the online sales. www.shoppersstop.com has had an exponential growth trajectory with more than 50% growth in Q4FY17.
The shopping website has more than 50,000 products across different categories and sub-categories to choose from and offers the benefit of seamless transactions. Customer Loyality: Also it has been observed that the loyality programme under Shoppers Stop has over 5 Million customers. With different promotions and offers on the roll it has been one of the top programmes to retain customers and such customers will also shop online more enthusiastically High values spending customers are going to shop online: It is projected in the annual reports that the Indian Online retail industry is set to grow at a robust pace and by 2020 the online Shoppers will jump to 600 million Shoppers.
By 2020 around One third Shoppers will be “High Value Customers“ and this segment will account for two thirds of the total spend. E tailing will be 30% of organized sales by 2020.The E tailing industry will become USD 45-50 billion by 2020 as suggested by various studies. Pvt. Label: The company has many different pvt. Label which are in mid to premium price segment and are of good quality. Major pvt. Label are in apparel and footwear segment. As the products gain popularity as the margin in pvt. Labels can be quite high, if shopper promotes these products in online aggressively in which the operating costs are also low and thus the co. Can increase its market share. II. Online Player Goes Offline – Mixed player study: Consumers in India were looking for the perfect combination of low price and optimum convenience.
As a result of this, omnipresence was the most successful strategy used by retailers in numerous channels to sustain growth, and department stores were no exception to this as several players in the channel also followed suit. This growth is expected to be driven mainly by the increased reach of department stores in India’s tier-2 and tier-3 cities, which allows the retailers behind them to attract a new consumer base Most of the online players have recognized the importance of the offline segment and have started to get into offline mode and thus starting in Mixed player strategy. The expected market for the mixed retail by 2017 is 206 Billion INR. The details are as given be below: Sales of Mixed Retailers: Mixed retailers are expected to increase in value at a CAGR of 6% at constant 2016 prices over the forecast period.