Retailing: A Service Perspective

WHAT IS RETAIL?

• Retail - derived from the French word retaillier, which means to cut off a piece or to break bulk.

• Retailer - defined as a dealer or a trader who sells goods in small quantities or who repeats or relates

• Retailing - considered as the last stage in the movement of goods or services to the consumer.

India Perspective

“Indian retailing is the least competitive and least saturated of all global market.”

Evolution of Indian Retail

We e k ly M a r k e t s Villa g e F a ir s

M e la s

C o n v e n ie n c e S t o r e s /M o m a n d P o p K ir a n a s

P D S O u t le t s K h a d i S t o r e s

C o o p e r a t iv e s

E x c lu s iv e B r a n d O u t le t s/ H y p e r S u p e r M a r k e t s

D e p a r t m e n t S t o r e s S h o p p in g M a lls

/Tr a d it io n a l P e r v a s iv e R e a c h

G o v e r n m e n tS u p p o r t e d

/H is t o r ic R u r a l R e a c h

M o d e r n/ F o rm a t s

In t e r n a t io n a l

S o u r c e o fE n t e r t a in m e

n t

N e ig h b o r h o o d/S t o r e s C o n v e n i

e n c e

/ Av a ila b il i t y / Lo w C o s t s

D is t r ib u t io n

S h o p p in g/E x p e r ie n c e E f f ic i

e n c y

7 P’s of Services

1st P: PRODUCT

• Product- refers to the merchandise i.e. the range of clothes.

• supplementary services -include a component of fashion, life style and Ambient shopping as an addition to the core product.

• Today, customers buy experiences and not brands or products.

2nd P : PRICING

• Cost plus price and Percentage method pricing:

Most widely used technique to price apparels.

ex:- COLOR PLUS and IN-HOUSE brands like those of SHOPPER’S STOP or WESTSIDE use this technique.

2nd P : PRICING (contd.)

• Perceived value pricing:

This technique of pricing apparel is mostly followed in high value-high involvement apparels as these have to be premium priced to avoid a perception gap.

ex:- Designer Wear, Bridal Wear

3rd P : PLACE

Apparel Retailing Business is driven by one crucial factor:

• Location– Approachable – Parking

4th P: PROMOTION

• Print medium.

• Loyalty programs

• In-store Visual merchandising

Offers & Promotions (Shoppers Stop)

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5th P: PEOPLE

• Every second a customer spends inside the store has to be viewed as Moment of Truth

• “People” is that aspect of the marketing mix which adds tangibility to the service of creating an experience

6th P: PROCESSES

7th P : PHYSICAL EVIDENCE

• Managing Appearance of the building & Location

• Maintaining Temperature , Music, Lighting and Fragrance inside the store

• Availability of services like Prams, Wheel Chair ,Valet Parking etc

• Stylish Stocking of Merchandise