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Accessing opportunities in apparel retail sectors in India: Porter's diamond approach

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Abstract:

Purpose ‐ The Indian retailing industry has undergone dramatic changes because of the government's recent liberalization in retail sectors along with the country's rapid economic development and emerging consumer groups with market power. Despite the increasing importance of India in the global market, little is known about apparel retail sectors in India and the information available is fragmented and under-developed. The purpose of this paper is to assess the competitiveness of the Indian apparel retail industry and the changing market conditions since the 2006 retail trade liberalization to identify the opportunities and challenges of operating in the Indian market. Design/methodology/approach ‐ This study employs Porter's diamond model as the theoretical framework. This study conducts an extensive review of published documents including academic journals, trade publications, and government and industry web sites and discusses them within the framework of the diamond model. Findings ‐ By analyzing the multi-determinants of the diamond model (factor conditions, demand conditions, related and supporting industries, firm strategy and rivalry and the role of government), the authors identified key opportunities and challenges of entering the Indian apparel retail industry. Originality/value ‐ This study provides a comprehensive view of the rapidly evolving Indian apparel retailing industry by evaluating multi-dimensions of competitive conditions in Porter's model.

Keywords: Competitive advantage; Garment industry; India; Retailing

Document Type: Research Article

DOI: http://dx.doi.org/10.1108/13612021111132636

Publication date: May 10, 2011

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