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AN OVERVIEW. FUNDAMENTALS……….HISTORY…. RETAILLIER ’ Retail derives from French word ‘RETAILLIER ’ means to cut of a piece or to break bulk. (WHAT IS RETAIL)…??????????????????……………

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Presentation on theme: "AN OVERVIEW. FUNDAMENTALS……….HISTORY…. RETAILLIER ’ Retail derives from French word ‘RETAILLIER ’ means to cut of a piece or to break bulk. (WHAT IS RETAIL)…??????????????????……………"— Presentation transcript:

1 AN OVERVIEW

2 FUNDAMENTALS……….HISTORY…. RETAILLIER ’ Retail derives from French word ‘RETAILLIER ’ means to cut of a piece or to break bulk. (WHAT IS RETAIL)…??????????????????…………… It is an activity through which product or service can be accessed to the end user for the personal and non-business use.Type………………… Organized and Unorganized CATAGORY…………….. C2C(CUNSUMER TO CONSUMER) B2B(BUSINESS TO BUSINESS )

3 FACTORY WAREHOUSE R DEALER/DISTRIBUTOR RETAIL SPACE END-USER(CONSUME)

4 EMERGENCE & EVULOTION A. ERA & THOUGHTS  1930(POST & PRE)  PRODUCTION  SCIENTIFIC MANAGEMENT,ADMINISTRATIVE,OPERATIONAL MANAGEMENT  1950…………  SALES ERA  HUMAN RELATION APPROACH,SOCIAL SYSTE,DECESION THEORY,MANAGEMENT SCIENCE,HUMAN BEHAVIOR,SYSTEM APPROACH  1970……… MARKETING ERA CONTINGENCY APPROACH,CUSTOMER RELETIONSHIP APPROACH,ETHICAL APPROACH etc ESTIMATION WORLD MARKET $7TRILLION ORGANISED RETAIL 80% SHARE IN USA 70% WESTERN EUROP 50% MALAYASIA 40% BRASIL 35% PHILLIPNES 25% INDONESIA 10% CHINA 3% INDIA GLOBAL SCENARIO

5 EVOLUTION & FORMATs TRADITIONAL Itinerant Salesman,Haats,Moles,Mandis ESTABLISHED FORMATs Kirana,Depertment Stores,Multi brand showrooms,PDS,Co-operatives,Pan/beedi shops EMERGING FORMATs Exclusive outlets,Hypermarkets,Internal retail,Malls,Multiplexes,Rural Oriented formats,Fast food outlets,Service galleries

6 Indian Retail industry is divided into UNORGANISED and ORGANISED format.Organised retailing refer to trading activities undertaken by licensed retailer that is those who are register for Sales tax, Income tax etc.This includes the corporate backed Hypermarkets, retail chain, and also private based large retail business. On the other hand unorganized retails are traditional based retailing such as KIRANA,GROCESSARIES,PAN-BIDI,PDS,PAVEMENT VENDORS etc……….. ORGANISED RETAIL…….. 3%-4% OF TOTAL RETAIL UNORGANISED …….. 97% OF TOTAL RETAIL  NUMBE OF OYTLET ………. 12 MILLION CONTRIBUTION TO GDP… %(INDIA),20%(USA)

7 TRADEEMPLOYMENT % SHOP(Million)ORGANISED SECTOR (%) INDIA CHINA USA

8 FOOD & GROCERY APPERALS GEMS & JEWLLARY PHARMACUTICAL CONSUMER DURABLE BOOKS & ACCESSORIES AUTOMOBILE

9 EXCLUSIVE/MONO/COCA EITHER OWNED OR FRANCHIED COMPLET RANGE OF SELLING & CERTIFIED MORE LIBERTY OF CHOICE FROM A VARIED RANCE OF PRODUCTS/SERVICE FOCUSE ON PERTICULAR PRODUCTS /SERVICE CATAGORY MULTI-BRAND OUTLETCONVERGENCE OUTLET MORE ON CONVERGENCE OR CONSUMER DURABLE PRODUCTS ONE STOP OF CUSTOMERS,MANY PRODUCTS OF DIFFERENT BRANDS ON DISPLAY

10 Large retail establishment with an extensive assortment in variety and range of goods, organized into separate departments. All departments are housed under the same roof to facilitate buying, customer service, merchandise, and control.

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13 A discount store is a type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewelry, electronic equipment, or electrical appliances. Discount stores are not variety stores, which sell goods at a single price-point or multiples thereof (£1, $2, etc.). Discount stores differ from variety stores in that they sell many name-brand products, and because of the wide price range of the items offered. Following a number of retail establishments in the U.S. began to pursue a high-volume, low-profit-margin strategy designed to attract price-conscious consumers

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15 A typical speciality store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores. General store- a rural store that supplies the main needs for the local community

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18 provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. *Supermarket: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR™ supermarket.

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20 Hypermarket is superstore which combines a supermarket (Supermarket is a self-service store, which offers a wide variety of food and household merchandise, organized into departments) and a Department store. It carries a wide range of products under one roof, including full range of Groceries and General merchandise ( Dry goods, apparel and accessories, furniture and home furnishings, small wares, hardware, and food). A typical Hypermarket has 35,000 square feet of Retail space (selling space). Business model focus is on High volume and low profit. Carrefour opened their first hypermarket in 1963 at Sainte- Geneviève-des-Bois, France Oshawa Group opened their first store in 1973 near Montreal, NA

21 A departmental store is one where the products are sorted and organized for shelf display. It is easy to find a product in such stores, as the products are organized in broad categories and sub-categories. For example, you can easily find soaps in a departmental store by looking for the toiletries section. A supermarket, on the other hand, covers a broad variety of products. They may or may not be organized as carefully as a departmental store, as the products may range from groceries to automobiles. The displays are usually more point-of-sale centered, which means products are usually placed on the basis of demand. For example, you may find magazines placed prominently in a shelf as you walk in, by the side of a popular brand of perfumes and another shelf of chewing gums.

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23  STRENGTH……………….. Manpower,Population,Diversed Demography,Higher % of young generation as a viable prospective consumers  Weakness Political consensus,Govt stringent rule to curb FDI in organized retail sector, Stringent labor law, Lack of infrastructure, cost of supply chain management, Yet to have industry status to create barrier for borrowers etc  OPPORTUNITY Least competitive & Saturated, Good talent pool, Quality raw materials at cheap cost, Employment generation potentiality etc  THREAT Emergence of China, Phasing out of time, Opportunity lost is the gain to competitors etc

24 Potential to grow as a WORLD BEST RETAIL ECONOMY by 2024 Expected to see as a investment generator of $30billion in 4-5 years to catapulting modern retail to a whopping $ billion by 2016 Expected to touch the share to 20% by 2018

25 1. BUYING & MERCHANDISING 2. INTREGRATED MARKETING 3. STORE OPERATION 4. SALES 5. FINANCE 6. HUMAN RESOURCE 7. TECHNOLOGY & E-COMMERCE 8. VISUAL MERCHANDISING 9. SUPPLY CHAIN MANAGEMENT & LOGISTIC


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