Ans 6.

Lack of Skilled Workforce: In retail, over 70% of the labour force in both sectors combined (organised and unorganised) is either illiterate or educated below the primary level. Labour laws are also another constraint. Competition: A strong competition from mom and pop shops. Indian retail market is dominated my majorly mom and pop shops as they are easily accessible & approachable, provide service like free home delivery and goods on credit. Other competition between major players:

Real Estate Problem: Real estate is a major challenge as the space for retail outlets clusters due to concreteness in the metropolitan cities. Also India has the highest stamp duty structure.

 Market Power: Market power is in hands of unorganized retail with 95%. Organized retail holds only 5% of the overall market structure. Potential of the Indian market is US $ 200 billion where as India is just earnings its 3% (as per Mckinsey & Company). Absence of Developed supply chain: o Lack of logistic Infrastructure o Corruption in paper work o Technology hurdle Problem in Raising Funds: Banks are reluctant to finance retailers because of falling demand of organized retailers in India as it has witnessed failure of many stores like Spencers, Subhiksha, etc. Taxation & Stringent Approvals: o Implementation of non-uniform VAT across states o Octroi and entry tax in some states o 51% FDI is allowed to one brand shops in Indian Retail Sector. o Complications in issuance of licenses like hypermarket in Mumbai must apply for 29 unique licenses. Inflation Effect on Indian retail industry: Inflation is on the sky rise in India which is the major barrier.

Opportunities:
Increase in Disposable income of a family (70 mn Indians salary of $ 18000) Consumer spending power increased by 75% in last 3 years. The per capita income in 2009-2010 has more than doubled to US $ 849 from Us $ 348 in 200001 Consumer Class Shift: Consumer class will grow from 50 million at present to 583 million by 2025. With more than 23 million people taking their place among the worlds wealthiest citizens.

 Employment Generation: o Indian retail is the 2nd largest employer after agriculture. Retail trade employing 35.06 million. Wholesale trade generating an additional employment of 5.48 million

Talking about the case with context to Xylys The country of origin i.e. the swiss made tag is hugely associated with quality, precision, premium that has a great influence on a Premium Luxury watch consumer. The bi-syllable word XY & LYS is distinctive. It was aimed to convey style, attitude and a unique personal identity. In the year 2006 The brand was positioned as a symbol of success It was targeted at upwardly mobile successful people and depicted the Power of X that were bold, unconventional, distinctive and underlined ones power of attitude and confidence. The brand ambassadors were new generation achievers like Actor Rahul Bose, Super model Saira Mohan and Tennis star Carlos Moya who lived life fearlessly in their own terms having a passion to convert their dreams to success. During the year 2010, XYLYS was also positioned as Feeling of love, falling in love with XYLYS and as You dont possess a XYLYS, it possesses you. This new positioning not only reflected the attitude, lifestyle, personality of the consumer but also which the irrational desirability of the product backed by rational reasons like swissmade quality & trustworthiness of the house of Titans. All this care to consumer needs & diligence shown during the production choices for XYLYS watches and bang on target Brand position, resulted in doubling of sales volumes in the initial years. It developed into a consistent growth rate of 33% since then. XYLYS has a consistent brand share of around 21% in the Indian market even today.