It in Retailing Custom is Ed

8/3/2019 It in Retailing Custom is Ed

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IT in Retailing

New trends in retailing ± Franchising

in retailing ± Role of IT in retailing



New Trends in Retailing



Trends

Newer and newer formats Specialized / niche retailers are increasing

Increased use of technology

Emerging Store Labels Retailers hawking international suppliers

for their merchandise.

Increasing franchising routes. Non store retailing

Online retailing



Trends «..

Service retailing is coming up.

Rural retail is coming up.

Pressures from all sides

± Existing channel members. Retailers

Wholesalers

± National brand manufacturers

± Regulations (Government)

Land laws Local regulations

Labor laws

EDI policies

± Customers



Franchising in Retailing



Concept of Franchising Authorization granted by a manufacturer to a

distributor or dealer to sell his product.

It defined as the right to use a predeterminedmethod for marketing products and servicesthrough outlets that use known name or trademark.

Continuing relationship in which the franchiser

provides a licensed privilege to do business plusassistance in organising, training, merchandisingand management in return for a considerationfrom the franchisee.



Role of the franchisor and

franchiseeFunction Franchisor Franchisee

Site selection Oversees Chooses with approval

Design Provides prototype design Incurs the cost

Employees Training Hire, Supervise, Pay

Products to be sold Decides Can change with approval

Prices Sets Follows

Advertising /

Promotion

Determines at national

level

May suggest local

requirement



Types of Franchising Product / Trade Name franchising

Business format Franchising



Pros Cons - Franchising Advantages

± Low risk

± Growth

± Ease of financing &

Operational support

± Advertising

Disadvantages

± Royalty & Fees

± Lack of control



Successful franchising McDonald

Subway

Indian franchisee business

± 600 franchisers

± 40000 franchisees

± 8 K ± 10 K crores ± 5 K crores investment

± Employing about 300000 people



Indian Examples Garment / Apparels

± Arvind

± ColorPlus

± Madura Garments International

± McDonald

± KFC

± Domino¶s

± Pizza Hut

products ± Lakme

± Ayush

± Shainaz Hussain

Education

± NIIT

± Chate Coaching classes

± Eurokids ± ZILS

± Aptech

Online companies

± Shaadi.com

± Travelguru.com

Food & Beverages ± Pizza Hut

± Pizza Corner

± Baskin Robbins

± Chitales



Many more are in pipeline &

rolling out faster pace «. Good Year

Key clinics

UPS

FedEx

Aviation Academies CAT Trainers

Travel companies



Legal Issues Contract Act, Laws regarding IPR, Copyright Act,

Licensing

Consumer protection Act

Standards of Weight and measures Act

Essentials Commodities Act

International franchising ± FEMA Laws pertaining to real estate properties.

Cyber laws ± in case of online businesses



Role of IT in Retailing



Importance of IT in retail Efficient stocking of Merchandise

Collection of data

Efficiency in Operations

Helps the communication



Factors affecting the use of

Technology The scale and scope of operations

Financial resources available

Nature of the business

Human Resources available



Retail Information System (RIS)

Anticipates the information needs of

retail managers

Collects, organizes, and stores relevant

data on a continuous basis

Directs the flow of information to the

proper decision makers



A Retail Information System



Retail Pro Management Information

Software



Database ManagementA major element in an RIS

System gathers, integrates, applies, and

stores information in related subject areasUsed for

± Frequent shopper programs

± Customer analysis

± Promotion evaluation

± Inventory planning

± Trading area analysis



Five Steps to Approaching Database

ManagementPlan the particular database and its

components and determine information

needsAcquire the necessary information

Retain the information in a usable andaccessible format

Update the database regularly to reflectchanging demographics, recent purchases,etc.

Analyze the database to determine strengths

and weaknesses



Retail Database Management in

Action



Data Warehousing



Components of a Data WarehousePhysical storage location for data ± the

warehouse

Software to copy original databases andtransfer them to warehouse

Interactive software to allow processing of

inquiriesA directory for the categories of

information kept in the warehouse



Data Mining and Micromarketing Data mining is the in-depth analysis of

information to gain specific insights about

customers, product categories, vendors,and so forth

M icromarketing is an application of datamining, whereby retailers usedifferentiated marketing and developfocused retail strategy mixes for specificcustomer segments



Applying UPC Technology to Gain

Better Information



Electronic Data Interchange (EDI) It is the exchange of business information through

standard interfaces by using computers. Transmission of business data between

organisations in a comuterised format that doesnot require the re keying of the information.

(Electronic Document Interchange) Core for any e commerce and do have some

advantages

± Saves time

± Real time and vital for forward planning ± Errors are minimal

± Reduces the cost

± Serves as a tool for strengthening the relationship

between retailer and customer.



Radio Frequency Identification (RFID)

1948, Hary Stockman Wal-Mart & Metro

It can be described as a wireless bar code which provides wireless communication between objects

and readers. RFID ± tags or transponders

RFID chips are available in wide range and cansustain in harsh conditions

Cost of these tags are reducing. Used for

± Inventory tracking

± Human management

± CRM



Chitale Dairy ± Cows with Chips RFID for tracking the health of cows and

buffalos

Started Chitale Digital ± selling RFID

applications through out India

It in Retailing Custom is Ed

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