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ASSIGNMENT -1
RETAIL MANAGEMENT
RETAIL MANAGEMENT
RETAIL MANAGEMENT
RETAILING:The distribution of consumer products begins with the producer and ends at the ultimate consumer. Between the producer and the consumer there is a middleman the retailer, who links the producers and the ultimate consumers. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. It is responsible for matching individual demands of the consumer with supplies of all the manufacturers. The word retail is derived from the French work retailer, meaning to cut a piece off or to break bulk
Retail management:Retail management is the sale by seller in small quantities to customer not for resale :--The process of bringing the ultimate user to the main producer, through a series of stages, where retailing is the last one. It is not limited to quantities, but limited to the exact requirement of the ultimate user. Therefore, bringing about operational efficiency at this last stage, and creating an environment so compelling that he looks nowhere else, is "Retail Management". RM- is an art, and necessitates employing several tools of logistics management for a complete end user satisfaction. RM - is getting to know the final user on behalf of the producer. RM - is a process of facilitation.
ADVANCED RETAIL MANAGEMENT:-Managing a retail business becomes more demanding year-by-year as trading conditions create turbulence and unforeseen demands. The global and international communications links and networks make it much easier to pick out both the star performers as well as those with tarnished images.
RETAIL MANAGEMENT
The Changing Ways of Retail Business: Shifting the focus towards customers requirements
Combining products and services Standard vs. tailor-made products and services Sales by the whole organisation (not just by salespersons)
ISSUES IN RETAILING:y y y How can we best serve are customers while earning a fair profit? How can we stand out in a highly competitive environment where consumers have too many choices.? How can we grow our business while retaining a core of loyal customers?
CHANNEL OF DISTRIBUTION:-
MANUFACTURER
WHOLESALERS
RETAILERS
FINAL CONSUMER
RETAIL MANAGEMENT
RETAILERS'S STRATEGY
IMPULSE PURCHASE
POPULARITY OF STORES
Seeking out competitive advantage/s Establish unique selling points Identifying competition for customers scarce resources
RETAIL MANAGEMENT
PROS & CONS OF RETAILING
Pros of Retailing:1. Holiday sales figures 2. Research and assistance from trade associations 3. Satisfaction of building something from the ground up 4. Attending trade shows and buying events 5. Meeting new people 6. Having on hand exactly what your customers want 7. Cash transactions 8. You get to set all the rules 9. Selling merchandise you love and have an interest in 10. Creating a pleasant atmosphere and receiving compliments about your shop 11. Hiring and training wonderful employees
Cons of Retailing:-
1. January sales figures 2. Large cash investment at startup 3. Long hours and little (or no) pay to start 4. Only vacation is attending trade shows and buying events 5. Meeting difficult customers 6. Not having what your customers want 7. Bounced checks 8. Having to do it all (marketing, buying, bookkeeping) yourself 9. Too little profit on the merchandise you love to sell 10. Finding damaged merchandise, empty packages and open food on your shelves 11. Firing and disciplining lazy or rude employees
RETAIL MANAGEMENT Advantages: Having a retail outlet means you have a physical presence in that area. This enable your business to be easily identify by your customers. It also helps in building trust with your customers by having a physical shop. You can draw on the passing crowd. With high level of visibility, regular shoppers are able to recognized your outlet after a few weeks even if you are new. Regular shoppers frequent that area twice a week. In a month, they would have seen your shop eight to ten times. By then, they will know your presence there.
It is a cash business. That means all customers pay cash or credit card to purchase your products or services. Unlike some businesses that uses 7 days or 30 days term. A cash business reduces the risks of bad debt. The sales process in retailing is much shorter and easier compared to other business. Customer comes to shop, your staff serve them, customer decide to buy, pay up. The process is pretty straight forward.
Disadvantages:1. Setting up a retail outlet requires high capital cost. You have to purchase the inventories, set up the shelves, renovate the shop etc. The high capital outlay also means the business is in higher risk. 2. Retailing belongs to a much more passive kind of business. Instead of going out to get business, you basically stay in the shop waiting for customers. 3. You can't do out and out sales that is more active in sourcing your customers.
RETAIL MANAGEMENT
4. It is not flexible to some changes that may take place in the market. For example, the neighbourhood can go into decline, parking restrictions might be imposed, your market can 'move away', etc.
5. Consider the advantages and disadvantages to make the best decision for your distribution channel.
Retail is indias largest industry. It accounts for over 10 per cent of the India's GDP and around eight per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016. The organized retail industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business giants such as Reliance, Bharti, Birla and others are now entering into retail sector.
RETAIL MANAGEMENT
Retailing, one of the largest sectors in the global economy, is going through a transition phase not only in India but the world over. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains (Food World, Nilgiris, Apna Bazaar), convenience stores (Convenio, HP Speedmart) and fastfood chains.
RETAIL MANAGEMENT
Some Retail chain companies in India:y
Big Bazar
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