Perfomance Managment
A.2:- There are many external environmental factors affecting the Indian retail industries. These external factors include demographic, cultural, social, legal and political, economic, natural, technological environment. These external factors have affected the decisions for organizing the retail industry.
Demographic factors are those factors relating to personal characteristics such as age, gender, social class, level of education, family etc. These factors can affect the retail industry. Population growth is a factor that can affect the organizing of retail sector. However population growth cannot be taken as a growth in the sales of retail sector. An analysis should be taken in which areas the population is growing or the pattern of growth of population. For eg:- Before setting up a retail store of a fashion merchandise the characteristics of the population should be judged like buying ability like a Nike store in linking store sounds more sensible than in Dharavi. Factors like population mix should be checked. For eg:- If an area has lot of female population so stores like channel can be useful. Different areas have different characteristics so these can be looked up. For eg:- In east there is a boom in market in dushhera or onam in south so at these occasions outlets can come up with schemes to attract customers and increase sales.
Cultural factors also influence the retail sector of India. Culture is socially learned and shared by the members of the society. Every customer acts differently by according to their cultural background. So the buying decision of the person depends on his cultural background. There has been a shift in the culture of the Indian population. In many famous areas western outfit stores are in demand while an area which is dominated by middle aged people Indian outfits can be in demand.
Social factors have a great impact on the retail industry in India. Social factors affect the preferences of the consumers. There are societal
Demographic factors are those factors relating to personal characteristics such as age, gender, social class, level of education, family etc. These factors can affect the retail industry. Population growth is a factor that can affect the organizing of retail sector. However population growth cannot be taken as a growth in the sales of retail sector. An analysis should be taken in which areas the population is growing or the pattern of growth of population. For eg:- Before setting up a retail store of a fashion merchandise the characteristics of the population should be judged like buying ability like a Nike store in linking store sounds more sensible than in Dharavi. Factors like population mix should be checked. For eg:- If an area has lot of female population so stores like channel can be useful. Different areas have different characteristics so these can be looked up. For eg:- In east there is a boom in market in dushhera or onam in south so at these occasions outlets can come up with schemes to attract customers and increase sales.
Cultural factors also influence the retail sector of India. Culture is socially learned and shared by the members of the society. Every customer acts differently by according to their cultural background. So the buying decision of the person depends on his cultural background. There has been a shift in the culture of the Indian population. In many famous areas western outfit stores are in demand while an area which is dominated by middle aged people Indian outfits can be in demand.
Social factors have a great impact on the retail industry in India. Social factors affect the preferences of the consumers. There are societal