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Shopper Stop Case Analysis

Shoppers' Stop is India's premier shopping destination, with over 3,00,000 square feet of retail space across 13 cities. It brings international shopping standards to India but has not fully tapped the youth market. Its core customers are families and couples aged 16-40 with a monthly income over Rs. 10,000. To target youth, it aims to increase fashion offerings and use communication relevant to younger audiences. Analyzing demographics shows the growing youth segment will be major consumers, so Shoppers' Stop should refocus its format to target this long-term revenue stream.

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Nikit Tyagi
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3K views

Shopper Stop Case Analysis

Shoppers' Stop is India's premier shopping destination, with over 3,00,000 square feet of retail space across 13 cities. It brings international shopping standards to India but has not fully tapped the youth market. Its core customers are families and couples aged 16-40 with a monthly income over Rs. 10,000. To target youth, it aims to increase fashion offerings and use communication relevant to younger audiences. Analyzing demographics shows the growing youth segment will be major consumers, so Shoppers' Stop should refocus its format to target this long-term revenue stream.

Uploaded by

Nikit Tyagi
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Nikit Tyagi

Section A
10PGDM035

Shoppers’ Stop-Targeting the Young

Shoppers Stop Profile

Setting up shop in 1991 with its flagship store in Andheri, Mumbai, and
Shoppers’ Stop is a member of the K. Raheja Corp. of Companies. Shoppers'
Stop is the first retail venture by the K. Raheja Corp.

With its wide range of merchandise, exclusive shop-in-shop counters of


international brands and world class customer service, Shoppers' Stop brought
international standards of shopping to the Indian consumer providing them with
a complete shopping experience.

India - 2000 & Beyond:

Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi, Chennai,


Ghatkopar, Pune (Mumbai) and most recently Calcutta, Shoppers' Stop is today
recognised as India's premier shopping destination. With a customer entry of
about 20,000 customers a day, a national presence with over 3,00,000 square
feet of retail space and stocking over 450 brands of garments and accessories,
Shoppers' Stop has clearly become a one stop shop for all customers.

Customer Profile

Shoppers' Stop's core customers represent a strong tier A and B skew. They fall
between the age group of 16 to 40, the majority of them being families and
young couples with a monthly household income above Rs. 10,000. But despite
their efforts to tap these markets it has not been fully succesfull in tapping the
youth market. It is perceived as a feminine brand but trying hard to get its share
in the youth segment.

Range of the Merchandise

The stores offer a complete range of apparel and lifestyle accessories for the
entire family. From apparel brands like Provogue, Colour Plus, Arrow, Levi's,
Scullers, Zodiac to cosmetic brands like Lakme, Chambor, Le Teint Ricci etc.,
Shoppers' Stop caters to every lifestyle need. Shoppers' Stop has also introduced
its own line of clothing. Shoppers' Stop has also introduced its own line of
clothing in the classic, value classic and value fashion segments. The
merchandise at Shoppers' Stop is sold at a quality and price assurance backed by
its guarantee stamp on every bill.

Shoppers’ Stop has 4 division the Men’s apparels, ladies apparels, kids wear
and the Non-apparels. Following is their contribution to the turnover.

# Men’s 43% of sales


# Women’s 18% of sales
# Kids 8% of sales
# Non-Apparels 31% of sales

Buying Channel:

Manufacturer

Delhi Bangalore Mumbai Calcutta

3 stores 3 stores 6 stores 1 Stores

Indian Retailing:

Total value Total no Share


Shopper stop 6.6 bn profit
Pantaloon 35.63 bn 0.3%
Retail 530 bn 4.1 %
total 12,781 bn 12 mm 100 %

Format of retailing:
Shoppers Stop connects with the youth audience through adopting the
communication routes relevant to youth, up the fashion quotient through
merchandising, and create ambience that connects with the mindset. The
brand campaign addresses environment-related issues in a youthful, tongue-
in-cheek manner.

Positioning against Competitors:

Shoppers Stop lifestyle Pantaloon Central

# Feminine # Leader # Professional # Modern


# Warm # Fashionable # Smart # International
# Friendly # Lively # Premium

Demographies:

The current target of Shoppers Stop is the people in the range of age groups of
25-45. However it can target the people based on these different categories:

1) Upto 14 yrs: These are the dependent population who have no say in
the type of product they buy. Though they influence the decision of their
parents by illustrating their points , the final decision lies with the
parents. They are young minds and very easy to influence.
2) 14-25 yrs: People in this age group often go to such places with their
friends where they form an attitude towards the products and their
buying behavior starts shaping up. Most of these are dependent but
they have a larger say in their buying decisions.
3) 25-45 yrs: They are what we call as Thrivers. This age group is looking for
efficiency . most of them are married and may accompany their wives or
small children to the shopping centres. They consider shopping as a
necessity.
4) More than 45 yrs: These are the mature buyers who are very hard top
convince to change their opinions or make new buying habits. They want
to find the value of their money and try to relate their buying with their
past experiences.

Is Format Change Needed:


Based on the case given and analyzing the exhibits we can observe that
the Demographic Divident in India is very favourable for youths. They’ll
be constituting the bulk of consumers for nearly next 2 decades. Also
they consist of aspirers and Thrivers who constitutes more than 25 %
buying in the Tier 1 and tier 2 cities. Hence it becomes quite obvious that
the retailing store should go for this segment . it would be a long term
revenue generator for Shoppers stop.

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