1-1
Retailing – Introduction, Concepts & Overview
1-2
Issues to be taken up
1-3
What is Retailing?
• Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use. A retailer is a person that sells products and/or services to consumers for personal or family use.
1-4
The Distribution Channel
PPT 1-4
Distribution Channel
1-5
Manufacturing, Wholesaling and Retailing
Vertical Integration – firm performs more than one set of activities Ex: retailer invests in wholesaling or manufacturing Backward Integration – retailer performs some distribution and manufacturing activities Ex: Westside Forward Integration – manufacturers undertake retailing activities Ex: Bata, Raymond's, Titan Watches
1-6
How Retailers Add Value
• Break Bulk -Buy it in quantities customers want • Hold Inventory -Buy it at a convenient place when you want it • Provide Assortment -Buy other products at the same time • Offer Services -See it before you buy, get credit, layaway
1-7
Significance of Retailing
• 12-15 million outlets. • Contributes over 10% to India’s GDP • Largest employer after agriculture, with over 18 million people employed. • Generates 8% of country’s employment. • For the last 5 years (since 2004) India has been India is being consistent ranked a top retail destination in GRDI. • Current level of penetration of organized retail is between 4-5%, likely to be between 15-20% by 20102015.
1-8
Services vs. Merchandise Retailers
Intangibility
-Problems in Evaluating Service Quality -Performance of Service Provider
Simultaneous Production and Delivery
-Importance of Service Provider
Perishability
-No Inventory, Must Fill Capacity
Inconsistency of the Offering
-Importance of HR Management
1-9
Examples of Service Retailers
Type of Service
Airlines Automobile maint/repair Automobile rental Banks Credit cards Education Entertainment parks Fitness Beauty care Security
Service Retail Firms
Kingfisher, Indigo, Spice jet Bike zone (Castrol) Hertz, Radio Taxi SBI, ICICI, HDFC, Citibank American Express, VISA, Mastercard BIMTECH, IMT, MDI Essel World VLCC Lakme Beauty Saloon, Shehnaz Hussain Fireball, Shield
Express package delivery DTDC, Blue Dart, India Post
1-10
Examples of Service Retailers
Type of Service
Hotels and motels Insurance Internet access/Elec info. Movie theaters Real estate Restaurants Investment Home entertainment Telecom
Service Retail Firms
Hyatt, Sheraton, Marriott, LIC, Tata AIG Sify, Airtel Broadband PVR, Fun, Big Cinemasl DLF, Ansals TGI Friday’s, Pizza Hut Sharekhan, India Bulls Dish TV, Tata Sky BSNL, Airtel, Tata Indicom
1-11
Merchandise/Service Continuum
1-12
Types of Retail Ownership
• Independent, Single Store Establishments
• Corporate Chains • Franchises
1-13
Franchising
Franchisee Pays Fixed Fee Plus % of Sales Franchisee Implements Program Why is This Ownership Format Efficient?
1-14
Reasons for Franchising Growth
Technological advances Profitable utilization of capital resources Attainment of the “American Dream” Demographic expansion Product/service consistency
1-15
Reasons for Franchising Failure
Inept management Fraudulent activities Market saturation
1-16
India’s Top Retailers
1. 2. 3. 4. 5. 6. 7. Future Group K. Raheja Group Tata Group RPG Group Landmark Group Reliance Retail AV Birla Retail
Misconceptions About Careers in Retailing
• • • • • • • • • Don’t need education. Low pay Long hours Boring Dead-end job No benefits Everyone is part-time Unstable environment No opportunity for women
1-17
1-18
Why You Should Consider Retailing
• Entry level management positions -Department manager or assistant buyer/planner -Manage and have P&L responsibility on your first job • Starting pay average with great benefits • Buying and planning for financially analytically oriented • Management for people.
1-19
Types of Jobs in Retailing
Most entry level jobs are in store management or buying, but there’s… -Accounting and Finance -Human Resource Management -Supply Chain Management -Advertising -Marketing & Public Relations -Information Systems -Store Operations & Loss Prevention -Visual Merchandising
1-20
Nature of Retail Industry is Changing
To Today’s Retailer
Mom and Pop Store
1-21
General Trends in Retailing
• • • • • • New Types of Retailers Increased Concentration Globalization Growth In Services Retailer E-tailing Growth in Use of Multi-Channel Retailing by Traditional Retailers • Increase Use of Technology to Reduce Cost, Increase Value Delivered
1-22
Thanks!
doc_169850593.ppt
Retailing – Introduction, Concepts & Overview
1-2
Issues to be taken up
1-3
What is Retailing?
• Retailing – a set of business activities that adds value to the products and services sold to consumers for their personal or family use. A retailer is a person that sells products and/or services to consumers for personal or family use.
1-4
The Distribution Channel
PPT 1-4
Distribution Channel
1-5
Manufacturing, Wholesaling and Retailing
Vertical Integration – firm performs more than one set of activities Ex: retailer invests in wholesaling or manufacturing Backward Integration – retailer performs some distribution and manufacturing activities Ex: Westside Forward Integration – manufacturers undertake retailing activities Ex: Bata, Raymond's, Titan Watches
1-6
How Retailers Add Value
• Break Bulk -Buy it in quantities customers want • Hold Inventory -Buy it at a convenient place when you want it • Provide Assortment -Buy other products at the same time • Offer Services -See it before you buy, get credit, layaway
1-7
Significance of Retailing
• 12-15 million outlets. • Contributes over 10% to India’s GDP • Largest employer after agriculture, with over 18 million people employed. • Generates 8% of country’s employment. • For the last 5 years (since 2004) India has been India is being consistent ranked a top retail destination in GRDI. • Current level of penetration of organized retail is between 4-5%, likely to be between 15-20% by 20102015.
1-8
Services vs. Merchandise Retailers
Intangibility
-Problems in Evaluating Service Quality -Performance of Service Provider
Simultaneous Production and Delivery
-Importance of Service Provider
Perishability
-No Inventory, Must Fill Capacity
Inconsistency of the Offering
-Importance of HR Management
1-9
Examples of Service Retailers
Type of Service
Airlines Automobile maint/repair Automobile rental Banks Credit cards Education Entertainment parks Fitness Beauty care Security
Service Retail Firms
Kingfisher, Indigo, Spice jet Bike zone (Castrol) Hertz, Radio Taxi SBI, ICICI, HDFC, Citibank American Express, VISA, Mastercard BIMTECH, IMT, MDI Essel World VLCC Lakme Beauty Saloon, Shehnaz Hussain Fireball, Shield
Express package delivery DTDC, Blue Dart, India Post
1-10
Examples of Service Retailers
Type of Service
Hotels and motels Insurance Internet access/Elec info. Movie theaters Real estate Restaurants Investment Home entertainment Telecom
Service Retail Firms
Hyatt, Sheraton, Marriott, LIC, Tata AIG Sify, Airtel Broadband PVR, Fun, Big Cinemasl DLF, Ansals TGI Friday’s, Pizza Hut Sharekhan, India Bulls Dish TV, Tata Sky BSNL, Airtel, Tata Indicom
1-11
Merchandise/Service Continuum
1-12
Types of Retail Ownership
• Independent, Single Store Establishments
• Corporate Chains • Franchises
1-13
Franchising
Franchisee Pays Fixed Fee Plus % of Sales Franchisee Implements Program Why is This Ownership Format Efficient?
1-14
Reasons for Franchising Growth
Technological advances Profitable utilization of capital resources Attainment of the “American Dream” Demographic expansion Product/service consistency
1-15
Reasons for Franchising Failure
Inept management Fraudulent activities Market saturation
1-16
India’s Top Retailers
1. 2. 3. 4. 5. 6. 7. Future Group K. Raheja Group Tata Group RPG Group Landmark Group Reliance Retail AV Birla Retail
Misconceptions About Careers in Retailing
• • • • • • • • • Don’t need education. Low pay Long hours Boring Dead-end job No benefits Everyone is part-time Unstable environment No opportunity for women
1-17
1-18
Why You Should Consider Retailing
• Entry level management positions -Department manager or assistant buyer/planner -Manage and have P&L responsibility on your first job • Starting pay average with great benefits • Buying and planning for financially analytically oriented • Management for people.
1-19
Types of Jobs in Retailing
Most entry level jobs are in store management or buying, but there’s… -Accounting and Finance -Human Resource Management -Supply Chain Management -Advertising -Marketing & Public Relations -Information Systems -Store Operations & Loss Prevention -Visual Merchandising
1-20
Nature of Retail Industry is Changing
To Today’s Retailer
Mom and Pop Store
1-21
General Trends in Retailing
• • • • • • New Types of Retailers Increased Concentration Globalization Growth In Services Retailer E-tailing Growth in Use of Multi-Channel Retailing by Traditional Retailers • Increase Use of Technology to Reduce Cost, Increase Value Delivered
1-22
Thanks!
doc_169850593.ppt