Mnange the future by Retailing

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Slide 1: 

MANAGING THE FUTURE BY RETAILING BY S.BALAMURUGAN I-MBA & B.PRAVEEN KUMAR I-MBA SRI KALISWARI COLLEGE

Slide 2: 

MANAGING THE FUTURE BY RETALING

Slide 3: 

UNORGANIZED RETALING ORGANIZED RETALING

INTRODUCTION : 

INTRODUCTION The word ‘Retail’ is derived from a French word meaning ‘to cut into small pieces’. Retail is predominantly unorganized in the case of India. Unorganized retailing refers to the individual standalone retail units in traditional formats, which receive their supplies through multiple intermediaries. Organized retailing, on the other hand, refers to the systematically structured retail trading activities undertaken by comparatively larger business entities, which most often operate a chain of stores in multiple geographic locations, under a brand name appropriate for the merchandize handled (Slide 2).

LIST OF DEPARTMENT STORES IN INDIA : 

LIST OF DEPARTMENT STORES IN INDIA Metro Big Bazaar FamilyMart Food world Home Centre Lifestyle International Marks & Spencer Pantaloons Promart Shoppers' Stop Big Apple D mart Grand India Bazaar (GIB) Food land Spencers Reliance Subhiksha Vishal Mega Mart

REASONS FOR ANTICIPATING RAPID GROWTH OF RETAIL IN FUTURE : 

REASONS FOR ANTICIPATING RAPID GROWTH OF RETAIL IN FUTURE In spite of global economic slowdown, there are several reasons for expecting significant growth of the organized retail sector in future in India. Among these, the following reasons stand out quite strongly. Paradigm shift in consumer life style Enormous potential for rural retail Scope for increased FDI in retail Entry of big players Increased service orientation, quality and convenience Increased product assortment and efficient supply chain Technology trends

TECHNOLOGY TRENDS : 

TECHNOLOGY TRENDS No consumer would like to wait for long in the queue for billing and collecting the items at a retail outlet. However, the current situation is that there4 are long queues at the billing counters at many retail outlets, especially during peak hours. Consumers have to wait irrespective of number of items purchased by them. Retailers are currently depending on itemized bar coding system with computerized software at the billing counters. The problem can be mitigated with the help of advanced technology, which uses Radio Frequency Identification (RFID). Technologies and systems which would impact organized retailing in the foreseeable future are: Tunnel scanning, ERP and GRM systems, Advanced Planning and Scheduling systems (APS) and modern payment methods.

TRANSFER MECHANISM : 

TRANSFER MECHANISM There are several ways in which consumers can receive goods from a retailer: Counter service, where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. It was common before the 1900s in the United States and is more common in certain countries. Delivery (commerce), where goods are shipped directly to consumer's homes or workplaces. Mail order from a printed catalog was invented in 1744 and was common in the late 1800s and early 1900s. Ordering by telephone is now common, either from a catalog, newspaper, television advertisement or a local restaurant menu, for immediate service (especially for pizza delivery). Direct marketing, including telemarketing and television shopping channels, are also used to generate telephone orders. Online shopping started gaining significant market share in developed countries in the 2000s. Door-to-door sales, where the salesperson sometimes travels with the goods for sale. Self-service, where goods may be handled and examined prior to purchase, has become more common since the 1920s.

FUTURE PROSPECTS : 

FUTURE PROSPECTS According to the Retailer Association of India, the share of organized sector to the overall retailing market in India is expected to grow from 3% to 20% in the next 10years. The Indian retail business is expected to grow from $330 bn in 2007 to $427 bn in 2010 and to $637 bn by 2015. Organized retailing, presently with a market share of 4%, is expected to increase to 22% by 2010. Organized retailing has witnessed a rapid growth since the post-liberalization era of the 1990s and many Indian corporate leaders have extended or diversified into the retail business through organic as well as inorganic routes. Foreign players like Wal-Mart and Tesco have also entered the Indian market.

ENTRY OF BIG PLAYERS : 

ENTRY OF BIG PLAYERS The growth opportunity in the retail sector has attracted many major domestic corporate to invest in this sector. The Tata, the A V Birla Group, Reliance, RPG, K Raheja Group and many others have stepped into the retail business. Though the current scenario is comparatively bleak, it is unlikely that large business houses would withdraw their commitment towards this sector. Investments are more likely to pick up once again when the economy gets back on track.

EXAMPLE OF ORGANIZED RETAILING : 

EXAMPLE OF ORGANIZED RETAILING Reliance is operating a variety of retail outlet chains under various names-Reliance Fresh (fruits/vegetables, food and FMCG), Reliance Foot Print (footwear), Reliance Digital (electronic consumer durables), Reliance Timeout (books, stationery and gifts) and Reliance Jewels (jewellery). The Tata Group has a number of retail formats -Croma (consumer durables) Westside (apparels), Star-India (hyper markets), Landmark (books), Tanishq (jewellery) and World of Titan (wrist watches). The Apple Store retail location on the Magnificent Mile in Chicago

CHALLENGES : 

CHALLENGES To become a truly flourishing industry, retailing needs to cross the following hurdles: Automatic approval is not allowed for foreign investment in retail. Regulations restricting real estate purchases, and cumbersome local laws. Taxation, which favours small retail businesses. Absence of developed supply chain and integrated IT management. Lack of trained work force. Low skill level for retailing management. Lack of Retailing Courses and study options Intrinsic complexity of retailing – rapid price changes, constant threat of product obsolescence and low margins.

NOT REALLY THREATS, BUT OPPORTUNITIES : 

NOT REALLY THREATS, BUT OPPORTUNITIES Rapid expansion of organized retailing by large companies and big business houses has led to a serious debate among the public and business observers on its possible impact on the economy. It is feared that organized retailing will eliminate the traditional retailers, thereby leading to huge job losses. The first set of traders who could be affected by organized retailing are the street hawkers, push cart vendors and mom and pop stores (Krishna stores) because of price competition. But experts are of price opinion that mom & pop stores would continue to exist and will not be seriously affected because organized retailing is developing its own distinct market. New market equilibrium will be achieved where both organized and unorganized retailers will be able to thrive. The market size too is expanding, giving enough scope for all. At the same time, organized retailing is expected to generate a large number of employment opportunities across its entire supply chain activities like procurement, logistics, preservation, repacking, merchandizing, front-end sales, security, according, advertising and marketing.

CONCLUSION : 

CONCLUSION The retail sector in India can expect to witness a second big revolution in the not too distant future, in spite of setback faced due to the current economic slowdown. Specific advantages offered by the organized retail together with changing consumer behavior and supporting environmental factors are likely to make strong positive impact on the organized retail sector. Today organized retailing has become household word but the struggle for attraction and retention continues. Retailers need to analyze the forces that are affecting retail transformations. The success of new retail formats will depend heavily on consumers’ acceptance. Future research should continue to study the consumers’ perception towards new and emerging retail formats.

THANK YOU !!! : 

THANK YOU !!! ANY QURIES WELCOME