In our previous blog, we did a comprehensive SWOT analysis of Sam’s Club, an only membership retail warehouse club. Here we will be doing a complete SWOT Analysis of Future Retail.
Founded in 2013, Future Retail is one of the top retail companies in India. Have you ever wondered what makes a company so big? Studying the business environment and reacting to dynamic changes are the keys.
Furthermore, Future Retail has been putting money into effective marketing methods. The current global situation is pushing towards digitalization, and if you’re interested in learning more, check out our Free MasterClass on Digital Marketing 101 by Karan Shah, CEO, and Founder of IIDE.
Do you know how a firm evaluates its environment? SWOT Analysis is one of the most often used approaches. In this blog, we’ll take a closer look at the SWOT Analysis of Future Retail.
Before we get started with the SWOT Analysis of Future Retail, let’s learn a little bit about the firm, its products and services, and its competitors.
About Future Retail
(Source: Sugar Mint)
Whenever someone says “let’s go to the supermarket”, you get a strong recall of either DMart or Big Bazaar, isn’t it? These supermarkets are the parent company of Future Retail.
Future Retail, which is a part of the Future Group, is one of the fastest-growing retail companies listed in BSE, India. It was incorporated in 2007 and is currently headquartered in Mumbai, India.
(Brands Under Future Retail, Source: MBA Skool)
Being one of the country’s well-known brick-and-mortar retail chains, it operates approximately 1500 stores in India and has established itself under the brand names such as Big Bazaar, Hyper City, Ezone, Easyday, Foodhall, etc.
It sells everything from household goods and groceries to apparel, electronics, toys, games, and health & beauty products.
|No. of Employees||50,000+|
|Market Cap||Rs 2,657.19 Crore (2020)|
|Annual Revenue||Rs 6,437.40 Crore (2021)|
|Net Income/ Profit||Rs 164.56 Crore (2020)|
Products & Services by Future Retail
- Integrated Food
Competitors of Future Retail
- Avenue Supermar
- Aditya Birla F
- V-Mart Retail
- Go Fashion
- Shoppers Stop
SWOT Analysis of Future Retail
SWOT Analysis of Future Retail is a basic method that can help a company examine what it does best right now and develop a successful future strategy. It exposes the areas where people are holding back or how competitors may profit.
With the growing neck-and-neck rivalry in the retail sector, it is critical for organizations like Future Retail to examine the business environment.
Now first let’s begin with the strengths of the company from the SWOT analysis of Future Retail.
Strengths of Future Retail
- Deals in Various Segments: Future Retail focuses on providing a complete retail experience hub. It has various stores like hypermarkets, supermarkets, convenience stores, and fashion stores. Future Retail provides customers with a wide selection of products and services under various retail brands.
- Pricing is USP: Future Retail’s pricing policy has helped them attract customers which have heavily contributed to increasing its market share among its competitors. The pricing on almost all of its offerings are less than the usual MRP
- Easement of Payment: Future Retail has its E-Wallet called Future Pay which is like a digital wallet for shopping across Future Group stores. Also, there is a customer loyalty program through which customers can earn and redeem points at any of Future Group stores.
Bonus Tip: Digitalisation has benefited customers with a cashless and hassle-free experience while shopping. And if some methodology has helped to improve customer experience then that thing is considered first by most of the other businesses too. So, isn’t learning such in-demand skills will benefit you? If you think yes, then there are several short-term courses in IIDE that will help you learn about digital marketing and how to leverage its power to grow.
- National Presence: Future Retail has its presence almost everywhere in India, which makes it the most preferred retailer by the customers: It has its presence in about 400 Indian cities.
- Distribution Channels: Future Retail has a healthy and stable distribution system that ensures that the products of partners are easily accessible on time and allows it to operate in many locations of India.
- Financial Condition: This year, Future Retail had a Rs 6,437.40 annual revenue, and it has been profitable for several years in a row, allowing it to invest in future operations.
- Development of Workforce: Future Retail makes significant investments in employee training and development, resulting in a trained and motivated team.
Weakness of Future Retail
- Dependent on One Nation: Future Retail is dependent heavily on India and is susceptible to foreign players.
- Employee Turnover: Despite spending a lot of money on employee training and development, there has been a high employee turnover compared to comparable companies.
- Research and Development: Future Retail has not spent wisely on research and development, resulting in demand forecasting gaps and possibilities being missed.
- Rented Assets: Future Retail stores like Big Bazaar, Food Bazaar & FBB operates mostly through rented stores in malls, resulting in higher costs and the majority of sales going to pay rents.
- Organizational Structure: Future Retail has an organizational structure that places the majority of decision-making at the top, limiting innovation at lower levels.
Opportunities for Future Retail
Openings or chances for something good to happen are referred to as opportunities. These are the results of events that occur outside of the organization.
- Developing Economies: The entire economy is open, and Future Retail has a rising opportunity to access burgeoning developing economies.
- Identity Advantage: It has the potential to capitalize on its brand identity and diversify its product offerings.
- First Mover Advantage: Customers are becoming more aware of current trends, and by analyzing them, it is possible to gain a competitive advantage in the marketplace.
- Skilled Workforce: With so many advancements in the education industry in terms of specialized courses, Future Retail now has a greater potential to hire competent workers. As a result, costs are being reduced.
- Growth Potential: Future Retail stores aspire to be India’s most valuable retail stores for its customer. They can take this as a motivation to grow more in the market such as global expansion and tie-ups with international brands.
Threats to Future Retail
Anything that can harm your firm from the outside is considered a threat. A company must anticipate threats.
- Growing Trends: Customers are becoming more aware of current trends and the brands they use, putting pressure on businesses to alter regularly.
- Skilled Labour Worldwide: With the development of the company into country markets, there is a risk of missing out on competent labour.
- Competitors: For organizations working on comparable product lines, competition is always a threat and Future Retail has been facing huge competition from its rivals.
- New Entrants: There is a significant risk of losing market share when there are little or no restrictions on new enterprises entering the market. Future Retail must devise new methods to preserve its place in the industry.
- Business Environment: The nature of the corporate environment is dynamic. If a company fails to adequately analyze it, the odds of failure are high.
- Government Policies: There is a continuous change in government policies across different countries. Moreover, Political unrest in the country can impede business, resulting in lower performance and higher costs.
This ends our comprehensive SWOT analysis of Future Retail. Let us conclude our learnings below.
Overall the future of Future Retail looks interesting and very promising. The brand is becoming more competitive and it is developing strategies that will make its businesses more efficient and customer-oriented and for attracting more and more retailers.
Future Retail has a strong brand and web presence but has to work on its R&D to get a competitive advantage. Future Retail still has some challenges to overcome, but there are many prospects for growth. We are certain that Future Retail will overcome these challenges and continue to be one of the nation’s leading retail firms.
Companies are left to fight it out by winning over their customers with greater marketing efforts as competition grows in a saturated industry. Being well-versed in digital marketing is a requirement for all marketing enthusiasts in today’s shifting scene, which is vital. If you want to learn more and improve your skills, check out IIDE’s 3 Month Advanced Online Digital Marketing Course.
We hope this blog on the SWOT analysis of Future Retail has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. You can also read our comprehensive study on the Marketing Strategies of Future Retail.
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