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‡ Mostly buy from producers and sell mostly to retailers, industrial

consumers, institutions and other wholesalers
‡ Includes all activities involved in selling goods and services to those
buying for resale or business use
‡ Sale of product between businesses, as opposed to ultimate household
consumers
‡ Provides added by providing channel flows. Value of these flows are
often underappreciated
‡ Tasks are mundane, but bundled with valued services at low cost, treated
as unglamorous unlike other channel members
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‡ Independently owned businesses, take title to goods

‡ ^



 
  Provide a full line of
services, carrying stock, maintaining a sales force,
offering credit, making deliveries, providing
management assistance.
± 
 
   sell to retailers
±  
    Sell to manufacturers
 !  |
‡ ?  
 
 ΠOffer few services than
full-service wholesalers.
±  

 
 ΠCarry a limited line of fast-moving goods and sell to
small retailers for cash.
±   
 
 ΠPerform a selling and delivery function (semi perishables)
±   Œ Do not carry inventory or handle the product. On receiving order, select
a manufacturer, who ships directly to customer.
Assumes title and risk from order to delivery. (coal, heavy equipment, lumber)
_   ΠServe grocery and drug retailers, in non-food items. Bills only goods
sold by retailers, title retained.
 D
 


‡ Do not take title to goods. Facilitate buying and selling on a

commission
± DŒ Bringing buyers and sellers together and assisting in
negotiation. Paid by the party who hired them. Do not carry
inventory, do assume risk
± !"  Represent either buyer or seller on a more permanent basis
than brokers do
‡  #  $ "
‡ 

" "
‡ %  " "
‡   
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‡ Wholesale industry is facing considerable challenges

‡ Fierce resistance to price increases and winnowing out
of suppliers who are not adding value based on cost
and quality
‡ Distinction between large retailers and large
wholesalers is getting blurred

 

Retailing is the set of business activities that adds value

to the products & services sold to the consumers for
their personal or family use.
‡ It is not only sale of products in stores but also sale of
services
‡ Not all retailing done in stores
- direct sales of cosmetics, catalog sales, home
shopping n/w on cable TV ,haircut
 

Distribution channel

 # "


 


  &!?&
 

‡ Retailers are at the end of the distribution chain &

involve in direct interface with the customer
‡ Referred as intermediaries ± pass on products from
producers & wholesalers to customers
‡ Provision of channel in a convenient location to provide a
successful channel of distribution
‡ M 'Œ availability of right product, in right qty,
at right time ± successful channel

Annual sales of Wal ± mart, kmart.Sears are much greater

than annual sales of P&G,Pepsico
 ^     

‡ Retailers perform business activities that increase the

value of product & service they sell to customers
‡ ActivitiesŒ
Providing an assortment of products & services
Breaking bulk
Holding inventory
Providing services
 h      

‡ Supermarkets carry 15000 different items made by

over 500 companies
‡ This assortment enables customers to buy wide
selection of brands,designs,sizes.colors & prices in
one location
‡ Not the case in individual manufacture¶s retail outlets
 D   D

‡ To reduce transportation costs, mfrs ship whole cases

of their products to retailers
‡ Retailers then offer the products in smaller quantities
tailored to individual consumers usage pattern
‡ Breaking the large shipments into smaller consumer
quantities ± Breaking Bulk
     

‡ Function of retailers ± to make the availability of

products when consumers want them
‡ Consumers can have small inventory of products at
home as retailers will have the availability
‡ By maintaining inventory,retailers reduce customer¶s
cost of storing products
 h  

‡ Provide services that make it easier for customers to

buy & use products
‡ Offer products on credit
‡ Display products for ease of use by customers for
purchase
‡ Assistance provided by sales people on purchase
      
‡ 

 The largest form of organized retailing today. Located mainly in metro cities, in proximity
to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal
shopping experience with an amalgamation of product, service and entertainment, all under a
common roof.Examples include Shoppers Stop, Piramyd, Pantaloon.
‡ 
   Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer
Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on
specific market segments and have established themselves strongly in their sectors.
‡      As the name suggests, discount stores or factory outlets, offer discounts on the
MRP through selling in bulk reaching economies of scale or excess stock left over at the season.
The product category can range from a variety of perishable/ non perishable goods
‡   
arge stores ranging from 20000-50000 sq. ft, catering to a variety of
consumer needs. Further classified into localized departments such as clothing, toys, home,
groceries, etc.

‡ (  )   Large self service outlets, catering to varied shopper needs are
termed as Supermarkets. These are located in or near residential high streets. These stores today
contribute to 30% of all food & grocery organized retail sales. Super Markets can further be
classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets
ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal
sales.
     

‡ Retailing in India is witnessing a huge revamping exercise.

‡ Estimated to be US$ 200 billion, of which organized retailing
(i.e. modern trade) makes up 3 percent or US$ 6.4 billion.
‡ India is rated the fifth most attractive emerging retail marketŒ a
potential goldmine
‡ Ranked second in a Global Retail Development Index of 30
developing countries drawn up by AT Kearney.
‡ Food and apparel retailing key drivers of growth.
‡ Organized retailing in India has been largely an urban
phenomenon with affluent classes and growing number of
double-income households.