Introduction to Retailing (RM)Slide-1

7/30/2019 Introduction to Retailing (RM)Slide-1

1/14

Introduction To RetailingRetailing--- An Overview

Retailing :Definition & scopeRetailing is derived from the French wordretailier, which means, to cut a piece offRetailing can be referred to all the activitiesinvolved in the marketing & distribution of goodsand services.


2/14

Retailing All activities involved in selling goods orservices directly to final consumers for theirpersonal, nonbusiness use.

Retailer Business whose sales comeprimarilyfrom

retailing.


3/14

Retailing involves: Understanding the needs of consumers Developing good assortment of merchandise Displaying the merchandise

--RETAILERS ROLE IN DISTRIBUTION CHANNEL-- BENEFITS OF RETAILING----- Benefits to Customers

-- Breaking Bulk-- Providing assortment-- Holding inventory-- Providing after sales services-- Providing information


4/14

Benefits to Manufacturers &wholesalers:

Revenue generators , some of the risks of the manufacturer by paying for the goods

before they are actually sold to the final customer (3 types ofobsolescence risks physical obsolence, technological obs. Andfashion obs.)

Sensory organs of manufacturer

Benefits to the economy


5/14

Factors behind the change of Indian Retailing

industry:

Economic growth

Urbanization

Consumerism

Brand profusion

Availability of real estate


6/14

RETAILING ENVIRONMENT:

1. Economic environment

2. Legal environmentForeign directinvestment (FDI) restrictions, property

regulations , real estate, labor laws

3.Technological environments

4. Competitive environment


7/14

EVOLUTION OF RETAILING

Initial period--- weekly Haats (still prevalent in many towns& cities)

Then, the market saw emergence of local baniya andKIRANA SHOP (LOCAL Mom-Pop. or multipurposedepartmental store located in residential areas)


8/14

Acceptance of Consumers of the InnovativeRetailing Trends:

The rapidly growing middle class consumers Increase in per capita spending by consumers Growth in the number of double-income (DI) households Less time at the disposal of DI families Thru. Media & other comm Networks ,exposure to the world

class taste & preferences Rising workforce with global travel Increase usage of credit/debit cards Growing youth population with the ability to study & work

simultaneously The younger population who are comfortable to transact

online retailing


9/14

Types of retailers Close 7.5% of the retail market (Till 2011) is organised

Convenience store: ideally located close to residential areas(friendly neighborhood grocery stores)

Chain of stores (Raymond , Khazana jewellery etc)

Franchise (Pizza Hut, Baskin Robbins ,Aptech , NIIT ,Nirulas, McDonalds etc)

Speciality stores (ParkAvenue, from RAYMONDS etc)

Departmental Stores (Life Style, Shoppers Stop, Pantaloon, Westside, Ebony etc)


10/14

Emporium: variety of a particular group ofmerchandise (sari emporium, art emporium etc.)

Departmental Stores:

large in size, usually more than 10,000sqft withmore than 100,000 SKUs (Life Style, ShoppersStop, Pantaloon , Westside, Ebony etc)


11/14

Supermarkets: departmentalized, with self service offering groceries , limited non- food items

such as health & beauty related items & general merchandise free access to displays for customers, large usually more than 3,000 sqft and

more than 30,000 SKUs

eg- Apna Bazar, Foodworld outlets etc.

Hypermarkets (the Bazaar): Large in size (200,000 sq ft and above) Sell grocery, hardware , appliance and other general merchandise with self serving

facilities , High-volume, low-margin sales usually located in warehouse type structures (big box) with large parking facilities eg- Trents (a TATA Enterprise) , Giant (RPG Group) , Big-bazaar etc.

Shopping Malls:

right mix of shopping , food courts and entertainment (shoppertainment) andparking facilities. more than 400,000+ sqft area run as an integrated business by an individual or an organisation Eg. TGIP shopping mall,Centerstage mall, Select city walk shopping mall,

Hyderabad Central , The Forum, Central , Sigma mall etc.


12/14

Super stores:

A single large store (usually 5,000sqft +),

twice the size of super market,

food and non-food goods, non-traditional goods and services like pharmacy,flower shop, book store, salad bar, bakery etc.

Eg: Nilgiris (in the south)


13/14

Stop-over store format: Piggy back location, stores inside a petrol pump eg: In & out of BPCL

Kiosk:

location--- busy market place, FMCG products n snacks (wafers,namkeen, cake, tofees etc eg: dispensing formats like Pepsi fountain and eatables kiosks

Shopping centre or a Shopping Plaza:

configuration of 5 or more tenant spaces of approx. 1,000 sqft each developed under one building plan eg: Kannaiya shopping center in linking road Mumbai ;Basant

lok in Vasant vihar, N. Delhi, Heera Panna in Mumbai


14/14

The making of a Blockbuster

(source Business World, 30 Oct 2006)

Introduction to Retailing (RM)Slide-1

Documents