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    1.basics of Retailing - 1

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    Retailing is the sale of goods and services to final consumers and is the last stage in the distribution process. Key retailers worldwide include Walmart, Carrefour, and Kroger. Major retail formats include department stores, supermarkets, discount stores, hypermarkets, convenience stores, and shopping malls. Non-store retailers reach customers through online channels. India's retail industry is growing and expected to reach Rs. 45,000 crore in the next five years. Organized retail provides benefits to customers, manufacturers, wholesalers, retailers, and the government.

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    1.basics of Retailing - 1

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    anshushah_144850168
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    Retailing is the sale of goods and services to final consumers and is the last stage in the distribution process. Key retailers worldwide include Walmart, Carrefour, and Kroger. Major retail formats include department stores, supermarkets, discount stores, hypermarkets, convenience stores, and shopping malls. Non-store retailers reach customers through online channels. India's retail industry is growing and expected to reach Rs. 45,000 crore in the next five years. Organized retail provides benefits to customers, manufacturers, wholesalers, retailers, and the government.

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    Retailing is the sale of goods and services to final consumers and is the last stage in the distribution process. Key retailers worldwide include Walmart, Carrefour, and Kroger. Major retail formats include department stores, supermarkets, discount stores, hypermarkets, convenience stores, and shopping malls. Non-store retailers reach customers through online channels. India's retail industry is growing and expected to reach Rs. 45,000 crore in the next five years. Organized retail provides benefits to customers, manufacturers, wholesalers, retailers, and the government.

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    Attribution Non-Commercial (BY-NC)
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    Download as ppt, pdf, or txt
    183 views27 pages

    1.basics of Retailing - 1

    Uploaded by

    anshushah_144850168
    Retailing is the sale of goods and services to final consumers and is the last stage in the distribution process. Key retailers worldwide include Walmart, Carrefour, and Kroger. Major retail formats include department stores, supermarkets, discount stores, hypermarkets, convenience stores, and shopping malls. Non-store retailers reach customers through online channels. India's retail industry is growing and expected to reach Rs. 45,000 crore in the next five years. Organized retail provides benefits to customers, manufacturers, wholesalers, retailers, and the government.

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    of 27

    RETAILING

    Introduction

    What is retailing
    Retailing is sale of goods and services to final consumer last stage in the distribution process, while wholesaling is an intermediate stage last link in the Supply Chain- connecting the bulk producers of the commodities to the final consumers. Covers diverse products inlcuding services and leisure

    Who is a retailer?
    Some one who does not effect any significant change in the product except breaking the bulk. Final stock point who makes product or service available to the consumer whenever required Offers value proposition to consumer by easy availability of the desired product in the desired sizes at the desired times

    Distribution channel and Sorting Process

    Top Ten Retailers Worldwide


    Rank 1 2 3 4 5 6 7 8 9 10 Retailer Wall-Mart Stores Inc. (USA) Carrefour Group (France) The Kroger Co. (USA) The Home Depot, Inc. (USA) Royal Ahold (Netherlands) Metro AG (Germany) Kmart Corporation (USA) Sears, Roebuck and Co. (USA) Albertson's, Inc. (USA) Target Corporation (USA) No of stores owned 4178 8130 3445 1134 7150 2169 2105 2231 2512 1307 Sales in FY-00 US$ Millions $180,787 $61,047 $49,000 $45,738 $45,729 $44,189 $37,028 $36,823 $36,726 $36,362

    Retail formats
    In-Store Retailers
    operate fixed point-of-sale locations located and designed to attract a high volume of walk-in customers

    Non-Store Retailers
    reach out to the customers at their homes or offices.

    Major formats of In-Store Retailing


    Format Branded Stores Description Exclusive showrooms either owned or franchised out by a manufacturer. The Value Proposition Complete range available for a given brand, Certified product quality.

    Speciality Stores
    Department Stores

    Focus on a specific consumer need, carry most of the brands available.


    Large stores having a wide variety of products, organized into different departments, such as clothing, house wares, furniture, appliances, toys, etc. Extremely large self-services retail outlets. Stores offering discounts on the retail price through selling high volumes and reaping the economies of scale. Larger than a Supermarket, sometimes with a warehouse appearance, generally located in quieter parts of the city Small self-service formats located in crowded urban areas. An enclosure having different formats of in-store retailers, all under one roof.

    Greater choice to the consumer, comparison between brands possible


    One stop shop catering to varied consumer needs.

    Supermarkets Discount Stores

    One stop shop catering to varied consumer needs. Low prices.

    Hyper-mart

    Low prices, vast choice available including services as cafeterias.

    Convenience Stores

    Convenient location and extended operating hours. Variety of shops available close to each other.

    Shopping Malls

    Non-store retailers
    Reach out to the customers at their homes or offices. Use internet for communication (also known as e-tailing) Business by broadcasting of infomercials Broadcasting and publishing of direct-response advertising publishing of traditional and electronic catalogues Door-to-door solicitation and temporary displaying of merchandise (stalls)

    Indian Scenario
    For Indian retailing, things started to change slowly in the 1980s, when India first began opening its economy Textiles sector (with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim) was the first to see the emergence of retail chains Later on, Titan, maker of premium watches, successfully created an organized retailing concept in India by establishing a series of elegant showrooms.

    Indian scenario.
    latter half of the 1990s saw a fresh wave of entrants in the retailing business, like - FoodWorld, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books

    As of the year ending 2000 the size of the Indian organized retail industry was estimated at around Rs. 13,000 crore

    Retail industry is gathering momentum and is expected to grow by 30 per cent in the next 5 years and to touch Rs.45,000 corres

    Organised retail industry in India


    Segment Market Size (Rs. Crore)

    Textiles and clothings


    Jewellery

    4050
    2,000-2,500

    Consumer Durables
    Footwear Food and personal care

    1500
    1,300-7,500 1000

    Non-Store retail
    Luggage, watches and tyre

    900
    500

    Books and music

    390

    Retailing formats in India


    Retailer Shoppers' Stop Ebony Crossword Piramyd Pantaloon Subhiksha Vitan Current Format Department Store Department Store Large bookstore Department Store Own brand store Supermarket Supermarket New Formats. Experimenting With Quasi-mall Quasi-mall, smaller outlets, adding food retail Corner shops Quasi-mall, food retail Hypermarket Considering moving to self service Suburban discount store

    Foodworld
    Globus Bombay Bazaar

    Food supermarket
    Department Store

    Hypermarket, Foodworld express


    Small fashion stores Aggregation of Kiranas

    Efoodmart
    Metro S Kumar's

    Aggregation of Kiranas
    Cash and carry Discount store

    Without retailing we have lived and we are living then why this sudden fad for RETAILING !!

    Key drivers of retailing


    Benefits to customers Benefits to manufacturer Benefits to wholesaler Benefits to retailer Benefits to Government Potential employment opportunities

    Key Terms to know


    Exclusive distribution Intensive distribution Selective distribution

    Distribution channel comparison


    Factor No. of buyers Potential for conflict Suppliers support Suppliers sales Retailers assortment Product image Competition Exclusive Medium Medium Highest Lowest Medium Highest Medium Intensive Highest Highest Medium Highest Highest Medium Highest Selective Lowest Lowest Lowest Lowest Lowest Lowest Lowest

    Marketing concept of retailing

    What is retail strategy?


    Over all plan to guide a retail firm Aligning retail firm to competition, market forces and economy Strategic planning is imperative for the success of any retail firm.

    Steps in Strategic Planning


    1. Define type of business 2. Set long run and short run objectives for sales/profit/market share/image etc 3. Determine customer market (target customer) 4. Long run plan to direct firm and employees 5. Implement integrated strategy combining store location, product assortment, pricing and advertising and displays 6. Review, evaluation and correction of strategy

    Total Retail Experiencethe WOW! factor


    Parking to check-out Pleasing setting Colour schema Music to pamper senses Floor arrangement, displays Staff assistance, courtesies, help, guidance Shopping comfort

    Customer Service
    Impacts total retail experience Store hours parking access, shopper friendliness store layout, credit acceptance level and caliber of salesperson gift wrapping, rest room availability, employee politeness, handling special orders, delivery policies, customer follow up etc

    Relationship retailing
    Establish and maintain long-term bonds Customer satisfaction, service Respect customer check list Hard to lure new customers, hence retain the one you have Win-win approach strategy

    Retailing Road ahead.


    A growing population, growing income levels, growing middle-class families, a young workforce and zooming consumer confidence is fuelling the retail sector

    Catch it young! Go with the growth !!

    Current Scenario

    CONSOLIDATION

    Year is 2008 is an inflection point for modern retail in India Rising costs of real estate was one of the major stumbling blocks for retail to develop For the first time in many years, we are witnessing fall in real estate costs and retail business is becoming more and more viable People costs and operational costs are also stabilizing Signs of consolidation are distinctly visible for modern retail business in India

    Questions for a quick recap


    What is retail strategy? How could it be utilized by a small bouquet seller? What is retailing concept? Define the term total retail experience Give five suggestions for a new retailer.
    (Range of merchandise, Convenience of shopping, Time to travel, Socio-economic background and culture)

    Guide a small web-based retailer on relationship retailing.

    MODERN RETAIL- Its impact on growth


    As modern retail grows, so will be its impact on domestic growth By 2012 modern retail will directly employ over 1.6 million people at shop floors Most of them come from lower income groups and lesser educational backgrounds, who cannot employed in other sectors Retail will create millions of more jobs in support services like security, mall and facilities management, construction and supply chains McKinsey & Co point out that for the government level, modern retail will help improve indirect tax collection by 1% add to GDP Growth Play a role in controlling inflation As modern retailers acquire size and scale, plays a far more decisive role in the countrys economic growth and development IT, Hospitality, Multiplexes and Real Estate enjoy fiscal incentives but not modern retail sector

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