Retailing-An Introduction

TO: DEEPAK BHANDARI

FROM:BALBIR & ARNAV

Importance of Retailing Create Value

Employment Generator: 8% of total employment.

Contribution to economy:22% contribution in GDP.

Growth Opportunities: The retail business in India is estimated to grow at 13% from $322 billion to $590 billion 2011-12 and further

US $1 trillion by 2016-17 .

Retailing: Definition

The word retail has its origin in French word retaillier and means “to cut a piece’’ or “to break bulk’.

A set of activities that add value to the product and services sold to consumers for their personal and family use.

Philip Kotler:“Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non business use.”

The final step in the distribution of merchandise for consumption by the end consumers.

Retailing Terms

Retailer: One who sells goods or commodities directly to consumers. These items are generally sold in small quantities, at a marked up price from the manufacturer or wholesaler.

Inventory: Inventory is the merchandise a retail store has on-hand. The term also refers to the act of counting, itemizing and recording in-stock merchandise or supplies.

Private Label: Products which are generally manufactured or provided by one company under another company's brand

Retailing Terms Kiosk: The term kiosk, as related to retailing, refers to a small

stand-alone structure used as a point of purchase. This can be either a computer or display screen used to disseminate information to customers or may be a free-standing, full-service retail location.

Stock Keeping Unit :The Stock Keeping Unit (SKU) is a number assigned to a product by a retail store to identify the price, product options and manufacturer.

Brand: A brand is a name, symbol or other identifying mark for a seller's goods or services. It is distinct from other sellers.

Functions and services of retailing

Buying & Warehousing

Assembling and selling

Promotion & Advertising

Support & Guidance to customers

Creating and managing channel of communication between manufacturer and end user.

Financing

Bears Risk

Factors driving growth of Retail Sector Increasing disposable income

Increase in dual income nuclear families

Changing lifestyle & consumer behavior

Store design

Experimentation with Formats

Challenges of Retail in India

Lack of Skilled Manpower

Big disconnect between quality of personnel and desired customer experience

Lack of industry status

Policy barriers

Real estate

Competition with Unorganized Retail.

Inefficient supply chain

Presence of multiple middle-man

Organized Vs Unorganized Retail in India

Impact of Organised Retail Consumers

Unorganized Sector

Employment

Manufacturers

Global Players

Rural Population

Technology

Contribution in economy