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GIVING THE BEST AND THE NEW UNDER ONE ROOF

RETAIL MANAGEMENT

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Contents

Conclusion5

Functions2

Retail Industry - India3

Trends in Retail Formats4

R Retail – An Intro1

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Let us start with a question

Is there any thing common our local Jagadamaba’s

store and Big bazar?

What is it ?????

Think for while before we start.

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RETAILING

It is defined as a activities or steps used to sell a product or

service to consumers for their household, personal or domestic

consumption.

Retail derived from French word Retaillier meaning ‘ to cut a

piece off or to break bulk’

A retailer is a person, agency or institution which is in the

business of reaching the goods, merchandise or services to the

ultimate consumers.

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Functions

1. Sorting

2. Breaking Bulk

3. Holding stock

4. Additional Services.

5. Communication Channel

6. Advertising and Distribution

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Sorting

Manufacturers usually make one or a variety of products and

would like to sell their entire inventory to a few buyers to reduce

costs.

Consumers prefer variety of goods and services and buy in

required quantities.

So retailers has to buy goods in reasonable quantities and selling

them to consumers in small units

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Breaking Bulk

To reduce transportation costs, manufacturers and whole

sellers typically ship large cartons of the product.

Retailers then divided into small units for individual

consumption needs.

Ex : Groceries and Fruits.

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Holding Stock

They offer the service holding stock for the manufacturers.

It allows availability of products to consumers.

It helps to keep prices stable and enables the manufacture to

regulate production.

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Additional services

They ease the change in ownership of merchandise by

providing services that make it convenient to buy and

use products.

They provide product guarantees, after sales services

and dealing with consumer complaints.

They also provide credit and hire- purchase facilities.

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Channel of Communication

They act as communication channel between

producers, whole sellers and the consumers.

Manufacturers learn sales forecasts, delivery delays

and customer complaints.

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Advertising and Transport Functions

Small manufacturers can use retailers for advertising and pre-

payment of merchandise.

This in turn can lead to image and brand building of goods

and services offered by any firm.

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Activities of Retailers

Arranging assortment of

offeringsBreaking Bulk

Providing services Holding stock

RETAILERS

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Arranging Assortment

An assortment is a retailer’s selection of merchandise.

Retailers have to select the combination of assortments of various

categories.

It must include substitutable items of multiple brands, SKUs and

price points.

Ex : MORE is a grocery chain has an assortment of fast moving

brands.

The assortment plan is governed by location, size and store

image

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S

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RETAIL INDUSTRY IN INDIA A Curtain raiser

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Evolution of Indian retail

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Weekly MarketsVillage FairsMelas

Convenience StoresMom and Pop/Kiranas

PDS OutletsKhadi StoresCooperatives

Exclusive Brand OutletsHyper/Super MarketsDepartment StoresShopping Malls

Traditional/Pervasive Reach

Government Supported

Historic/Rural Reach

Modern Formats/ International

Source of Entertainment

Neighborhood Stores/Convenience

Availability/ Low Costs / Distribution

Shopping Experience/Efficiency

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Indian retail Industry Organized retail consists of 8 % and expected to reach by

20 % by 2020.

Indian retail market will be USD 750-850 Billion by

2015.

100 % FDI in Single brand retailing and 51% in Multi

brand retailing.

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Global Retail Development Index(2014) & India

India ranked 20th in world by AT Kearney with a market

attractiveness of 36.8% and a country risk of 39% .

High operating costs, low bargaining power with vendors.

Real estate cost and space availability are important issues

in Indian retail industry.

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Reasons for fragmented retailing

Poverty

Low per capita income

Savings-focused and less indulgent mindset

Poor infrastructure facilities

Restriction on intra-state good movement

High taxes

Expensive supply chain

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FDI acceptance among Indian states

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Biggest issues in Indian FDI policy

1) 50 % investment in Back end infrastructure.

2) 30 % sourcing from small industries

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Challenges for International players

a) Availability of retail spaces.

b) High real estate and rental costs.

c) Clarification on certain policy - back end infrastructure .

d) Governmental procedures and political risk

e) Skilled manpower

f) Infrastructure and currency fluctuations

g) Right set of partners.

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Constraints in Indian Retail IndustryPolicy neglect

Shortage / high cost of real estate

Complex regulatory regime

Inefficiency in supply chain

Paucity of expert management and trained staff

Availability and cost of funds

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Trends in Retail Outlets

1. Mom and Pop stores and Traditional stores.

2. Department stores

3. Discount stores

4. Category Killers

5. Specialty stores

6. E-tailers

7. E-stores or Virtual stores

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Mom and pop stores

Traditional stores

Department stores Ex : Big Bazar, More etc

Specialty retailers Ex : Timezone, Tanishq

Discount stores : Ex- Wal-mart, K-mart, Reliance, Bigbazar etc

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Category Killers

They are giant retailers that dominate one area of merchandise.

They can purchase other items which are related with their

merchandise

Ex:- Office depot, home depot

Specialty stores

They concentrate on one type of merchandise.

Ex :- Body shop, Ravlon shops

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E- tailers

They are strictly online retailers.

Ex :- Amazon , Flipkart

E-stores or Virtual stores Ex: Online portals maintained by

different retailing giants ex: Amazon, Wal-mart.

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Retail - Opportunities Indian Consumer is changing

Changes offer retailing opportunity

Many opportunities – in Retail & Food Services

Enabling Conditions Exist for achieving Success.

Can provide placements for you people

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Conclusion

1. Organised retail has huge potential in India.

2. Retail industry is dynamic nature.

3. It adds convenience and better choice for consumers.

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