Introduction To Retailing

Retailing--- An Overview Retailing :Definition & scope Retailing is derived from the French word retailier, which means, to cut a piece off Retailing can be referred to all the activities involved in the marketing & distribution of goods and services.

 Retailing

All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

Retailer

Business whose sales come primarily from retailing.

 Understanding the needs of consumers Developing good assortment of merchandise Displaying the merchandise --RETAILERS ROLE IN DISTRIBUTION CHANNEL -- BENEFITS OF RETAILING ----- Benefits to Customers -- Breaking Bulk -- Providing assortment -- Holding inventory -- Providing after sales services -- Providing information

Retailing involves:

 Benefits to Manufacturers & wholesalers: Revenue generators ,

some of the risks of the manufacturer by paying for the goods before they are actually sold to the final customer (3 types of obsolescence risks physical obsolence, technological obs. And fashion obs.) Sensory organs of manufacturer Benefits to the economy

Factors behind the change of Indian Retailing industry:

Economic growth

Urbanization
Consumerism

Brand profusion
Availability of real estate

 RETAILING ENVIRONMENT: 1. Economic environment

2. Legal environmentForeign direct investment (FDI) restrictions, property regulations , real estate, labor laws
3.Technological environments

4. Competitive environment

EVOLUTION OF RETAILING
Initial period--- weekly Haats (still prevalent in many towns & cities) Then, the market saw emergence of local baniya and KIRANA SHOP (LOCAL Mom-Pop. or multipurpose departmental store located in residential areas)

Acceptance of Consumers of the Innovative Retailing Trends:

The rapidly growing middle class consumers Increase in per capita spending by consumers Growth in the number of double-income (DI) households Less time at the disposal of DI families Thru. Media & other comm Networks ,exposure to the world class taste & preferences Rising workforce with global travel Increase usage of credit/debit cards Growing youth population with the ability to study & work simultaneously The younger population who are comfortable to transact online retailing

Types of retailers
Close 7.5% of the retail market (Till 2011) is organised Convenience store: ideally located close to residential areas (friendly neighborhood grocery stores) Chain of stores (Raymond , Khazana jewellery etc) Franchise (Pizza Hut, Baskin Robbins ,Aptech , NIIT , Nirulas, McDonalds etc) Speciality stores (ParkAvenue, from RAYMONDS etc) Departmental Stores (Life Style, Shoppers Stop, Pantaloon , Westside, Ebony etc)

 Emporium: variety of a particular group of merchandise (sari emporium, art emporium etc.) Departmental Stores:

large in size, usually more than 10,000sqft with more than 100,000 SKUs (Life Style, Shoppers Stop, Pantaloon , Westside, Ebony etc)

 Supermarkets:

departmentalized, with self service offering groceries , limited non- food items such as health & beauty related items & general merchandise free access to displays for customers, large usually more than 3,000 sqft and more than 30,000 SKUs eg- Apna Bazar, Foodworld outlets etc.

Hypermarkets (the Bazaar):

Large in size (200,000 sq ft and above) Sell grocery, hardware , appliance and other general merchandise with self serving facilities , High-volume, low-margin sales usually located in warehouse type structures (big box) with large parking facilities eg- Trents (a TATA Enterprise) , Giant (RPG Group) , Big-bazaar etc.

Shopping Malls:

right mix of shopping , food courts and entertainment (shoppertainment) and parking facilities.

more than 400,000+ sqft area run as an integrated business by an individual or an organisation
Eg. TGIP shopping mall,Centerstage mall, Select city walk shopping mall, Hyderabad Central , The Forum, Central , Sigma mall etc.

 Super stores:
A single large store (usually 5,000sqft +), twice the size of super market, food and non-food goods, non-traditional goods and services like pharmacy, flower shop, book store, salad bar, bakery etc.

Eg: Nilgiris (in the south)

 Stop-over store format:

Piggy back location, stores inside a petrol pump eg: In & out of BPCL

Kiosk:

location--- busy market place, FMCG products n snacks (wafers, namkeen, cake, tofees etc eg: dispensing formats like Pepsi fountain and eatables kiosks

Shopping centre or a Shopping Plaza:

configuration of 5 or more tenant spaces of approx. 1,000 sqft each developed under one building plan eg: Kannaiya shopping center in linking road Mumbai ;Basant lok in Vasant vihar, N. Delhi, Heera Panna in Mumbai

The making of a Blockbuster

(source Business World, 30 Oct 2006)