Introduction to The World of Retailing

Description
Retailing not only involves sales of products but also the sale of services. Retailing is derived from the french word retaillier meaning to cut a piece off or to break bulk.

An Introduction to the world of
retailing

By: Sarmistha Mishra
What you see?????
Introduction
• It is the set of business activities that adds
value to the products and services sold to
consumers for their personal or family use.
• Retailing not only involves sales of products
but also the sale of services.
• Retailing is derived from the french word
retaillier meaning to cut a piece off or to break
bulk.
Source: India Retail Report
Future
• The retail industry in India is currently growing
at a great pace and is expected to go up to
US$ 833 billion by the year 2013.

• In the last four year, the consumer spending in
India climbed up to 75%. As a result, the India
retail industry is expected to grow further in
the future days.
Functions performed by retailers
• Providing an assortment
• Breaking bulk
• Holding inventory
• Providing services
• Increasing the value of products and services
50%
18%
17%
15%
employment by industry
services
manufacturing
retail
government
Opportunities in retailing
• Management opportunities
• Entrepreneurial opportunities
The important career opportunities are:
?Store management
?Merchandise management
?Corporate staff
Functions of retailer
• Form of product
• Time utility
• Place utility
• Ownership utility
Challenges for global retailer
• Emergence of new markets
• Empowered consumer
• The rise of the e-age

Evolution of retail in India
Traditional
formats
• Haats
• Mandis
• mela

Established
formats
• Kirana shop
• Convenience store
• Department store
• Co-operative shops
• Paan-beedi shop

Emerging formats
• Exclusive outlet
• Hypermarkets
• E-retailer
• Multiplexes
• Rural oriented format
• Fast food outlet
• Service galleries

Challenges to retail in India
• Retail not being recognized as an industry
• High cost of real estate
• High stamp duties
• Lack of adequate infrastructure
• Multiple and complex taxation system
• Threat of new entrants
• Threat of substitutes
• Bargaining power of suppliers
• Bargaining power of buyers
• Intensity of rivalry


The retail mix
Four kind of retail mix is useful for classifying
retailers
• Type of merchandise
• Variety and assortment
• Customer services
• Cost of offering
Types of retailers
• Food retailer
• General merchandise retailers
• Non-store retail formats
• Services retailing

Food retailer

• Conventional supermarkets
• Big-Box food retailers
?Supercenters
?Hyper markets
?Warehouse club
• Convenience store


General merchandise retailers

• Discount stores
• Specialty stores
• Category specialist
• Department stores
• Drugstores
• Off-price retailers
• Value retailers

Non-store retail formats

• Electronic retailing
• Catalog and direct-mail retailing
• Direct selling
• Television home-shopping
• Vending machine retailing
Services retailing

• Airlines
• Automobile
maintenance and repair
• Banks
• Child care
• Fitness
• Health care
• Hotels
• Real estate
• Packers and movers
• Credit cards
• Education
• Entertainment parks
• Weight loss
• Vision centers
• Financial services
• Automobile repair
• Income tax preparation

Types of ownership
• Independent, single store establishments
• corporate retail chains
• franchising

Trends in retail industry
• Growing diversity of retail formats
• Increasing industry concentration
• Globalization
?Maturation of domestic markets
?Skills and systems
?Trade barriers

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