Retail
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Transcript of Retail
FARHAN.INAMDAR
PRSENTATION By
KRET’S
TRIDENTINSTITUTE OF MANAGEMENT
SCIENCES
RETAIL
Weekly MarketsVillage FairsMelas
Convenience StoresMom and Pop/Kiranas
Khadi StoresCooperatives
Exclusive Brand OutletsHyper/Super MarketsDepartment StoresShopping Malls
Traditional/Pervasive Reach
Government Supported
Historic/Rural Reach
Modern Formats/ International
Evolution of Indian retail
Source of Entertainmen
t
Neighborhood Stores/Convenie
nce
Availability/ Low Costs / Distribution
Shopping Experience/Efficie
ncy
“Includes all the activities of selling products or services to the end consumers with added value”.
What is Retailing?{ Derived form a French word “Retailer”
Meaning : to cut a piece off or to break bulk }
Sale of goods/Services to the ultimate consumers- Personal, Family or Household use.
Thus involves more than just selling products-(Services)
Final leg in the distribution channel
Is labor intensive
Retailing is..
Retailing involves..
Identifying the target markets (customers)
Interpreting the needs of the targeted customers
Developing good assortment of merchandise
Presenting them in an effective manner so that customers find it easy and attractive to buy
TARGET CUSTOMERS(BIG BAZAAR)
Married couples Unmarried couples Income Group Rs 8000 – Rs 35000 per month Age Group All age group
Retailing has multiple functions-
Creates Market & Generates Employment
FUNCTIONS OF RETAILERS
FUNCTIONS OFRETAILERS
UNDERSTANDINGCUSTOMER NEEDS
& WANTS
PROVIDING ASSORTMENT
OF GOODS SERVICES
PROVIDINGSERVICES TO CUSTOMERS
BREAKING BULK
HOLDINGINVENTORY
PROVIDINGINFORMATION TO
SUPPLIERS
Understanding Customer’s Needs & Wants
Difference between need and want
Understand what products and services are required by the customers
Breaking the Bulk` Manufacturers normally send in cartons/cases/bags
Retailers breaks these bulk suitable to the customer’s need
Breaking Bulk: Breaking large shipments into smaller
Providing Services
Provision of credit limit & hire-purchase facilities
Home delivery of goods/services
Provision of warranty, after sale service, customer complaint resolution
Helping customers choose a product/service
Displaying products for customers ease of selection
Holding Inventory
Help the customers in keeping the inventory already broken into user-friendly sizes/prices
Help the customers in making the products available at all the time at relatively stable prices.
Helps the customers in reducing the storage costs/losses
Providing Information to Suppliers Retailers are in direct contact with the
end consumers
Feed back from the customers, comments, suggestions etc..
Market/Source of competitor information
TYPICAL CHANNEL OF DISTRIBUTION
Manufacture
Wholesaler
Retailer
FinalConsumer
Dealer
Specialty Store: (Narrow product line ) E.g. Athlete’s Foot. Reebok, Nike,
Department Store: (Several Product lines) E.g. Pantaloons, Shoppers'
stop
Convenience Store: (Limited line of high turnover convenience products,
Small store in residential area, ) E.g. Local retail shops open 24/7
Discount store: Standard or specialty merchandise low price, low
margin, high volume stores (Big Bazaar, Wal-Mart)
Types of Retailers
CONT…
Super markets: (Huge Selling space, routinely purchased food and
household items. Plus services (Food World, More Retailing)
Off-price retailer: Leftover goods, overruns, irregular merchandise
sold at less than retail price E.g. Factory outlets
Catalog Showroom: Broad selection of high markup, fast moving, brand-
name good sold by catalog at discount. E.g. Oriflame, Amway
Types of Retailers Based on merchandise and pricing
Departmental Stores
Specialty Stores
Discount Stores
Supermarkets & Hypermarkets
Department StoresA large store selling:
Broad Variety & Deep Assortment
Offer considerable customer services
Organized into physically separate departments Ex: Shoppers' Stop, J C
Penny, Regional Malls
The Characteristics :
Located in the market area or a major shopping center
Availability of parking space
Freedom for the customers to move around
Relatively high prices with margins large enough
Continued..
Speciality Stores Have narrow product line with deep
assortment
Provides higher degree of customer service
Better selection with the assistance of
sales people.
Discount Stores General merchandise retailer
Offers broad variety & assortment
Limited services and low prices
Located in the lower priced areas away from the market
Dependence on the shoppers
Low cost fittings
No free services such as delivery to door etc..
Relies on heavy advertisement in the nearby areas
No free services such as delivery to door etc..
The characteristics :
Super Market , Superstores & Hypermarkets
Super Market Self-service (Majorly) food store offering groceries along with other household maintenance products Size of the store- <25000 Sq Ft.
Low cost, low margin, high volume stores
Continued..
Superstores Larger supermarkets Size of the store- 25000 Sq Ft +.
Also offers products and services like pharmacy, bakery, chats, salad bar etc under one roofEx: Nilgiris
Hypermarkets Very large in size Size of the store- 50000 Sq Ft +.
offers mainly grocery, general merchandise goods, flower shop, photo shop etc..
Selling huge volumes at less margins
Similar to that of the discount stores.
Continued..
MERCHANDISING
The activity of trying to sell goods or services by advertising them or displaying them attractively.
PROBLEMS IN ORGANISED RETAIL IN INDIA Stiff competition Opposition to FDI Shortage of retail space Customs duties Shortage of retail space Multiple and complex taxation system Poor supply chain Trained work force Lack of Retailing Courses and study options Technology
THE ORGANIZED PLAYERS
Indian companies Future Group Reliance Retail Bharti Shoppers'Stop Pyramid Aditya Birla Group Subhiksha Spencer Group Tata – Westside, Tata – Chroma
Foreign Players Nike (Single
brand) Levis (Single
brand) Wal-mart (JV) Metro
(Cash&Carry)
CONCLUSION
Government has to formulate a separate policy for the industry
FDI needs to be encouraged Land acquisition rules required modification Retail as a separate industry
THANK
YOU