retail management-u-1

Category: Education

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By: aishy (97 month(s) ago)

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Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store in small or individual lots for direct consumption by the purchaser. The sale of goods or commodities in small quantities directly to consumers. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. Retailing

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Characteristics of retailing Direct interaction with customers. Lower & average amount of sales transaction. Point-of-purchase, Display and Promotions. Direct end user interaction. Only point of supply chain to provide a platform for promotions. Sales in smaller unit sizes.

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Functions of retailing Sorting Breaking bulk Holding Stock Additional services Channel of Communication Transport and Advertising

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Functions of Retailer The retailer thus performs two functions like buying of goods and assembling of goods. The retailer performs storing function by stocking the goods for a consumer. He develops personal contact with the consumers and gives them goods on credit. He bears the risks in connection with Physical Spoilage of goods and fall in price. Besides he bears risks on account of fire, theft, deterioration in the quality and spoilage of goods. He makes arrangement for delivery of goods and supply valuable market information to both wholesaler and the consumer.

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Drivers of Retail Change Changing industry structure Expanding technology Changing in Art of living. Emphasis on lower costs and prices Emphasis of convenience and service

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The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc. Evolution of retail in India

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Weekly Markets, Village and Rural Mela Phases in the evolution of retail sector Convenience stores, Kirana shops PDS outlets Exclusive brand outlets, department stores and shopping malls

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In India, the retail is the second largest employer after agriculture. New attractive retail formats in India like supermarkets, discount stores, department stores etc. Indian retail size of population with a contribution of 14% to natural GDP & 7% of total workforce in the country. There are some 12 million retail outlets. Local Kirana store, the Paanwala, Vegitable venders, street food are the big part of retail industry. Total retail size in India is estimated Rs 9,30,000 crores and expected to grow @5%p.a. The Size Of Retail in India

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Classifying Indian retail Modern Format retailers Supermarkets (Foodworld) Hypermarkets (Big Bazaar) Department Stores (Shoppers Stop) Specialty Chains (Levi’s) Traditional Format Retailers Kiranas: Traditional Mom and Pop Stores Kiosks Street Markets Exclusive /Multiple Brand Outlets

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Corporate Houses RPG group: Food World, Health and Glow, etc ITC: Wills Life Style, itc chopal Rahejas(ShoppersStop) Dedicated brand outlets Nike, Reebok, Zodiac etc Multi-brand outlets Vijay Sales, Viveks etc Manufacturers/ Exporters Pantaloons, Bata, Weekender Categories of Indian retail

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Organized/Modern 3.4% Unorganized/ Traditional 96.6 %

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Pie chart of organized retailing

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Growth of Organised Retail Market (Rs . Cr)

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Share of goods in rural market

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Retail formats available in rural India . Retail outlets within village Melas Haats

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Retailing in rural areas 70% of retailers from rural areas depend upon nearest feeder centre for their purchases, 20% prefer haat and mela and the rest prefer city. Big retailer deals with 60-100 items, small retailers deals in only 30 items. Margins are the major determinants of the brand to be sold. 30% retailers visit market daily, 40% visit weekly and rest as per need.

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Two third of countries consumer lives in rural areas. Half of the national income is generated hear. 15 percent of organized retailing takes place in rural areas. Rural market will grow at the rate of 5 % . 53% share for the FMCG comes from the rural market. There are more than 3.8 million retail outlets in rural areas, averaging 5.8 shops per village. Features of market in rural areas

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Efforts made by the companies Most of the corporate have concentrated their efforts on rural areas which have a population of 2000 persons or above. HUL has its largest selling soap brand Lifeboy at Rs 2 for 50 gram for rural areas. Godrej introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs 4-5 coca cola launched 200 ml bottle for Rs 5 and provide icebox due to lack of electricity. LG has set up and 59 rural/remote area offices .it has also launched a customized tv set named “sampoorna”.

Rural marketing- promotion support initiatives of LG : 

Rural marketing- promotion support initiatives of LG Mobile van in a village cookery classes rural housewives. exhibition at Rajamundary village.

Developments in rural retailing : 

Developments in rural retailing ITC has launched “chaupal Sagar” as a rural mall. DCM shriram’s “Haryali Kishan Bazzar.

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Godrej is planning to set 1000 “Aadhar shops” for rural market. Triveni engineering and industries has 33 stores of “khushali Bazzar”

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Tata’s are present with “kishan sansar”. HUL has launched its “project shakti” in2001.

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