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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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