2. PESTLE Analysis
PESTLE is a mnemonic which in its expanded form denotes
P for Political,
E for Economic,
S for Social,
T for Technological,
L for Legal and
E for Environmental.
PESTLE is a decision making tool that can be used to assess the
impacts of the external factors of the Business.
3. Why PESTLE Analysis
●
Looks how the external environment influences the operations
of the business which helps to identify potential risks
●
Helps in giving solutions to problems ,develops marketing
strategies
●
Helps to get ahead of competition
●
PESTLE is also used to evaluate risks associated to state and
countries if your interested in expanding the business
4. PESTLE Analysis of FMCG Retailing Industry
● Overview of FMCG Retailing in India
●
Fast Moving Consumer Goods (FMCG) can be defined as packed goods that
are consumed or sold at regular and small intervals.
●
The organized FMCG Retailing in India is a new concept and is fast catching up
in urban and semi-urban India.
●
The organized retail markets in India cater FMCG products like
●
Soaps and detergents
●
Cleaning and disinfecting agents
●
Cosmetics
●
Non-durables
●
Pharmaceutical
5. ●
Future Retail is the flagship company of Future Group, India’s retail
pioneer catering to the entire Indian consumption space. Through
multiple retail formats,
●
Hypermarket & Supermarket – Exposing Indians to an all new
shopping experience
●
The hypermarket and supermarket business is led by Big Bazaar,
fbb, Food Bazaar Easyday, Foodhall and Hyper city.
●
The company operates more than 900 stores in over 290 cities
across the country
6.
7. Impact of Political influences in Retail FMCG
industry
➢
Political stability
➢
Taxation policy
➢
Government intervenes
➢
Subsidies
➢
Trading policies
➢
Labour law
➢
Policy framework
➢
Infrastructure Issues
8. ECONOMIC FACTORS
➔
Economic Factors Include Economic Growth, Interest Rate,
Exchange Rates,Inflation Rates.
➔
Very Important In The Context Of Business And Trade
➔
Indian Economy Has Rebounded And Is Growing
➔
Spending More On Shopping Even In The Time Of
Demonetization
➔
Sales In 2015 Are As $20.08 Trillion and Expected to Rise $28
Trillion in 2020.
9. SOCIAL FACTORS AFFECTING RETAIL INDUSTRY
➢ Retailing based on age range
➢ Retailing based on family size
➢ Retailing based on income
➢ Retailing based on buying situations.
10. How Technology Is Redefining Indian Retail
• Technological factors are now all the more important whether in
terms of supply chain, customer service or sales.
• If e-retail has enjoyed exponential growth then it is because of the
additional convenience provided by technology
• Future group mobile wallet is initiative taken.
• A number of new technologies like AI and cognitive intelligence are
going to change the retail landscape in the coming years
• Even cloud computing and Distributed intelligence are going to have
a deep impact on the retail sector.
11. Legal Factors
●
Retail sector uses Laws like consumer Law ,Labor law ,health and safety
law
●
Future Retail gets RBI approval to increase RPFI to 49%
RBI has increased the limits for investment in equity share capital of Future
Retail by registered foreign portfolio investors including FIIs up to 49% of the
paid-up capital of the company
●
legal tussle in Future Group and Future Media.
12. Environmental factors
●
Big Bazaar strives to reduce environmental impact and optimize
energy consumption
●
Reducing the environmental impact of store construction and
operations
●
Improving energy efficiency for important environmental
benefits and reducing operating costs
●
Strengthening environmental considerations in the design of
green products and packaging; developing green product lines
that respect environmental concerns
●
Reinforcing environmental considerations in logistics.
14. Steps to retain customers in digital age
Communicate Authentic value proposition
across all channels
Customise product portfolio and promotions
Enhance end to end shopping
Expand Ecosystem partnerships
Increase two way engagements with
customers
