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Introduction to Retailing. Learning Objectives 2 Understanding how retailing originated in India Knowing the functions a retailer has to perform Describing.

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Presentation on theme: "Introduction to Retailing. Learning Objectives 2 Understanding how retailing originated in India Knowing the functions a retailer has to perform Describing."— Presentation transcript:

1 Introduction to Retailing

2 Learning Objectives 2 Understanding how retailing originated in India Knowing the functions a retailer has to perform Describing the status of retailing in India and abroad Explaining the present and future of traditional kirana stores Identifying the essence of productivity in modern retailing

3 S-38© Copyright Dr. Harjit Singh (2010)3 Picture Gallery

4 4


6 S-38© Copyright Dr. Harjit Singh (2010)6 Vegetables and Fruits Retailing

7 S-38© Copyright Dr. Harjit Singh (2010)7 Self Service



10 What is Retailing Most common form of doing business It consists of selling merchandise from a permanent location (a retail store) in small quantities directly to the consumers. These consumers may be individual buyers or corporate. Retailer purchases goods or merchandise in bulk from manufacturers directly and then sells in small quantities Shops may be located in residential areas, colony streets, community centers or in modern shopping arcades/ malls. 10

11 Retailing Defined 11 According to Kotler: ´Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non business uses. The Indian retail is dotted by traditionally market place called bazaars or haats comprises of numerous small and large shops, selling different or similar merchandise.

12 What and How of Retailing Retailing Provides: Time utility Place utility Possession utility Through: Store location Store environment Merchandise selection Salespersons 12

13 Features of Retailing Retailing is different from other forms of business in following ways: Direct interaction with customers/end customers. Sale volume large in quantities but less in monetary value Customer service plays a vital role Sales promotions are offered at this point only Retail outlets are more than any other form of business Location and layout are critical factors in retail business. It offers employment opportunity to all age 13


15 Channel of Distribution Manufact urer Wholesaler Retailer Final Consumer 15

16 Functions of a Retailer 1. Identifying Consumer Demands 2. Management of Merchandise 3. Convenience of timing 16

17 Retailing Principles 1. Clear definition of objectives and policies 2. Role Clarity 3. Unity of Command 4. Supervision and Control 5. Interest in employees 6. Monitoring of Human Resource 7. Rule of Simplicity 8. Responsibility and Authority 9. Division of Labour 17

18 Retail Sales Goals to serve a link between the manufacturer and end consumers to improve communication with retail customers to improve sales target to provide efficient customer service to build image among general public to improve social responsibility to serve different markets to get quick feedback about the merchandise sold to convert visitors to buyers Optimum utilization of fixed cost related expenses. 18

19 The changing Urban Consumer Inclined to international styles Inclined to acquiring property More demanding and discerning High level of education Ready to spend on shopping Shopping is a family fun 19

20 Retailing in India The Indian retail industry is broadly divided into two segments: 1. Organized retailing, and 2. Unorganized retailing. 20

21 Organised Retail 21

22 22

23 S-38© Copyright Dr. Harjit Singh (2010)23 Shoe Retail

24 S-38© Copyright Dr. Harjit Singh (2010)24 Grocery Retail

25 Retailing in India Organised RetailUnorganised Retail 25

26 Organised Retail Organized retail is nothing but a retail place where all the items are segregated and brought under one roof. 4-9% of the total volume Licensed/registered retailers These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Examples: Pantaloon Retail, K Raheja Group, Tata group, RPG group, Piramal Group, Bharti-Walmart, Reliance, AV Birla Group 26

27 S-38© Copyright Dr. Harjit Singh (2010)27 Apparel Retail

28 S-38© Copyright Dr. Harjit Singh (2010)28 Fashion Retail

29 Electronics Retail

30 S-38© Copyright Dr. Harjit Singh (2010)30 BOGOF

31 Reasons of organised Retail Growth 1. Rapidly increasing income level 2. Change in lifestyles 3. Favorable pattern of geography 4. Retail offers one-roof shopping experience 5. Emergence of nuclear family concepts 6. Improved purchasing power of Indian middle class 7. Presence of domestic and foreign players 8. Expansion of family owned businesses 9. Effect of LPG (Liberalization, Privatization and Globalization) 10. Building chains around brands 11. Mass inflow of FDI in Indian retail sectors 31

32 Organised Retail in India 32

33 Sectors Contributing Indian Retail 33

34 Large Indian Retailers Department store Lifestyle Pantaloons Piramyds Shoppers Stop Trent Hypermarket Big Bazaar Giants Shoprite Star Entertainment Fame Adlabs Fun Republic Inox PVR 34

35 Unorganised Retail It refers to the traditional formats of low-cost retailing The unorganized retailing comprises of ‘mom and pop’ stores or ‘kirana’ stores. These are very small shops located near the residential areas, popularly known as ‘baniya shops’. 35

36 Percentage of organised retail across the Globe 36

37 Various Segments in the Indian Retail industry SegmentPercentage of the overall retail pie Penetration percentage of organised retail Food and grocery661 Apparel (clothing and footwear) 724 Medical & health services 101 Jewelry and watches 55 Durables514 Personal care and effects 34 Others23 Sports and leisure29 37

38 Retail Trade in India & South East Asia CountriesOrganized Retail Unorganized Retail India298 China2080 South Korea1585 Indonesia2575 Philippines3565 Thailand4060 Malaysia50 38

39 Reasons for Retail Growth Emergence of nuclear family concept and changing age profile Increased disposable Income Emergence of New Business Opportunities FDI in retail Fast changing Indian consumer Benefits of organized retail 39

40 Emerging Trends in retailing Going internationalisation Emergence of new retail formats and combinations Benefits of buying online Heavy usage of plastic money Decreasing gap between organized and unorganized Value driven retailer to values driven retailer Enhanced Service Offerings Expanding private Brands Consolidation 40

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