MFM RM SV.ppt

7/27/2019 MFM RM SV.ppt

http://slidepdf.com/reader/full/mfm-rm-svppt 1/18

Emerging forms of Retailing

1.Rural Retailing

2.E - retailing

3.Transit retailing (airports , Metrostations)



Rural Retailing

Rural India defined as----•Population less than 5000 people .

•Population density is less than 400 person/ sqkm

•At least 75% of population is engaged in Agricultural activities

Focus of Rural retailing:

1.Agro products2.Fertilizers / Pesticides / Insecticides

3.Convenience products

4.Banking / Insurance / Education

5.Fuel stations



Major Players

1. Godrej Aadhar

2. ITC E-Chaupal (E- farmers,1lakh villages, 10

million farmers)

3. Hariyali Bazar by DSCL (3-4 acres per Bazar;300 Bazar )- Primarily Agro advise ,Agro

products and consumer goods retailing

along with credit schemes in collaborationwith HDFC



Aadhaar•India’s 1st agro service cum rural retail venture by Godrej

Agrovet (2003) in Pune•Each Aadhaar outlet services around 20 villages in its radius.

•65 stores across the country in the states of Maharashtra ,

Gujarat , Punjab , Haryana, Andhra Pradesh, Tamil Nadu ,

Orissa ,West Bengal .

•Aadhaar centers Agronomists interacts with farmers to

educate them on farm practices , technical guidance , soil and

water testing services ,facilitate credit to farmers , Crop finance

/ insurance , agri-inputs and animal feeds ,provide a platform

to sell their produce in the form of buy back of output ,information (weather, price, and demand supply)

•They also retail basic food ,Grocery ,Apparel, footwear to

furniture, Kitchenware ,home appliances ,value-added services

including banking, postal services ,pharmacy



Key Features of Airport Retailing

1. Shopping , Luxury , Lifestyle Brands , food ,educational /books , music .

2. Best of collection of Brands3. Actual buyers for food products , educational

and books ,4. Does not focus on Actual buyers for shoppingand luxury , lifestyle but on Potential buyers.

5. Acts as a platform to create awareness ,excitement , curiosity and interest amongst the

target customer group.



Key Features of E- Retailing

1. Convenience

2. Saves time

3. Avoids Crowds

4. Research time

5. Low price

6. No salesperson

7. Judgment on the basis of Two senses8. Plastic money



Introduction

• The e-retailing is called as e-Tailing, it is the

concept of selling of retail goods using

electronic media, in particular, the internet

• Started from early 1990’s.

• Business- to- consumer (B2C) transaction

model of e-commerce.



Growing areas of e-retailing

• Books

• Music and DVD movies

• Groceries

• Games and software

• Clothing

• Travel

• Electronic and computer equipments

• Gift items



• virtual (pure-play) e-tailers

Firms that sell directly to consumers over the Internet

without maintaining a physical sales channel

– Low overhead costs

– General purpose or specialized

• Brick and click retailers

Brick and click retailers that offer a transactional Web sitefrom which to conduct business,it is an addition for retailer.

– Sells in stores, via phones, over the Internet, via mobile devices

E-Retailing Business Models



Advantages to consumers

• Convenience•Better information •Competitive pricing

•Ability to shop 24/7 •Wider product availability •Customized and personalized information andbuying options•Easy comparison shopping

•Quick delivery of digital products •Ability to create a one-on-one relationshipwith the Seller



Advantages to e-retailers

• Location isunimportant• Size does not matter• Saves on the wagesand premises cost• Reach a global

audience• Accepts orders 24-hours a day• Low capital cost



Disadvantages to consumer

• Credit card and security worries

• Lack of interaction

•

Can’t see or feel the merchandise • Don’t know how

• Premium charged for delivery

• Difficulties with returning goods for refund• Selling counterfeit



Disadvantages to e-retailers

• Legal problems

• Complex logistics of fulfillment

•

E-selling less powerful than face-to-face• Pressure on margin and low price in-store

• Less role for traditional high street retail

expertise• After-sales care difficulties



Top e-retailers in India

• Indiatimes.com,

• Fabmart.com,

•

Rediffshopping.com,• ebay.com,

• futurbazaar.com



Why people like online shopping?

• Convenience

• Saves time

•

Avoids crowd• Lower prices

• No sales people involved





Recent developments



Future prospects of E-retailing in India

• India’s middle-class is mushrooming, with growing purchasingpower and limited personal time.

• Increasing usage of credit and debit cards coupled with a growingyoung population who spend significant time online.

• Convenience of online product research, comparison shopping

and competitive pricing are driving consumers to make onlinepurchases.

• TATA group announces opening of an e-mall, in the next 2 months

• There are divergent views on the future of e-retailing in India.Some experts are of the opinion that the giant, big brand retailerswould dominate the small ones due to their wider investmentcapacities. It would be next to impossible for the small retailers andthe kiranas to prove their existence in the battlefield of onlineretailing. Another viewpoint is that there would be an exponentialgrowth in the online retailing business in India.

MFM RM SV.ppt

Documents