|


 

 

|


  
  

Why Retailing is Important?
 ! 
 |

ë Retailing  
   




 


  

    
       
ë a retailer    

 

 
        
  
 INDIA
ë A country with diversity in all aspects
ë Area ʹ 3287263 Sq Km
ë Diversity in religion
ë There are more than 200 language, if dialects
included 1600
ë Many Indians do not understand their National
Anthem
ë Diversity in Clothing and dress patterns
ë Diversity in food habits
ë Diversity in culture and values
 ÿ      |

ë 12 million outlets ʹ Unorganized retailers
ë 96% are less than 500 sq ft size
ë 9 outlets per 1000 people, India has largest number in the
world.
ë Only 6% is organized - Organized retailing has enormous
potential
ë India ʹthe most attractive Retail Destination as per AT
Kearney Global Retail Development Index.
ë 2007 ʹ Indian retailing was US $385 billion (15,40,000
crores)likely to grow to US $1.52 trillion (Rs60,80,000 crores)
by 2025.
ë That make the share of organized retailing to 20%
ë The industry would require 2.2 million people by 2012
Challenges and Opportunities in Indian
Retail
ë Challenges
Lack of retail space
Manpower
Political opposition for FDI in Retail
Huge investment required in the sector
Supply chain issues
 Challenges and Opportunities in
Indian Retail
ë Opportunities
Retail Sector contributes 10% of GDP and 8% of
employment
Consumer want shopping, entertainment and food in
the same roof.
Demographic dividend
ë Large population under age 25
ë Many women started earning
ë Emergence of many nuclear family leading to explosion of
purchase
Industry is expected to grow at 25% annually
 Factors that Drive the modern
Retailing in India
ë Low share of organised retail stores
ë Increase in disposable income and customer
aspirations
ë Increase spending on luxury items
 Retail Trends in India
ë The emergence of the neighborhood Kirana stores catering
to the convenience of the consumers
ë Era of government support for rural retail
Indigenous franchise model of store chains run by Khadi & Village
Industries Commission
ë 1980s experienced slow change as India began to open up
economy.
ë Textiles sector with companies like Bombay Dyeing,
Raymond's, S Kumar's and Grasim first saw the emergence
of retail chains
ë Titan successfully created an organized retailing concept and
established a series of showrooms for its premium watches
ë Late 1990s wave of new entrants with a shift from
Manufactures to Pure Retailers.
X  X !  
      X 


   !      !" 
X
   " 
ë Post 1995 - Emergence of shopping centers Mainly in
urban areas, with facilities like car parking
ë Targeted to provide a complete destination experience for
all segments of society
ë Emergence of hyper and super markets trying to provide
customer with 3 V͛s - Value, Variety and Volume
ë Expanding target consumer segment: The Sachet
revolution - example of reaching to the bottom of the
pyramid
       |

ë New Types of Retailers

ë Globalization

ë Growth In Services Retailer

ë Increase Use of Technology to Reduce Cost, Increase

Value Delivered
 Socio Economic and Technological
Influence
ë The Population Division of United Nations states
that 53% of world population lives in Urban
towns.
ë In Indian more than 40% of the population are
living in Urban cities / towns
ë Almost 320 million people are living in cities
r        


 #$  
  

   
 

  r#$ 
#$#      
 
r 
 r 
#%#       
 
r  
ë Ë      
 

  |

    
  
 &'

( a   Ë    
| #)
$  &' 


| r$
ë      
  *#+ 


 
r%    
$
r
ë
    
 


    
  
 
     



ë      

  



 Government Policy
ë 

 ,   

ë r# + X,  ' Ë |

ë   
  |

ë -. 
/

"   
ë #$$+ X,  Ë
Ë 

 |
 0 '




    
 


    
|


  
 




  
   '"1 |
 0
 
 



X 

 

O








  






O 

 




 Merchandise
The items that are sold in a wholesale or retail
store are called as Merchandise.
   ÿ 
ë Variety (breadth of merchandise)
The number of merchandise categories

ë Assortment (depth of merchandise)

The number of items in a category (SKUs)
   '"1 |
 0
 
 




O


A





X  

  




 
  
 

 
O 

 




   '"1 |
 0
A




O


 

 










O 

 


 
  

   '"1 |
 0


 

!"#  
 

   '"1 |
 0


  

O

 A


 $   

 

 



  

 

O 

 
 


  '"1 |
 0


  




A


 

 













O 

 

   ÿ

  |



 |
 
   

ë Kishore Biyani
ë Mukesh Ambani
ë Kumar Mangalam Birla
ë Etc
   
 a
  
|

ë Don͛t need college
ë Low pay
ë Long hours
ë Boring
ë Dead-end job
ë No benefits
ë Everyone is part-time
ë Unstable environment
 !  
 
 
   
|

ë 
     
 
 
ë  
 
  

 % 
ë   &  
  

' 
ë 

   
 
  

ë # 
   (
ë ) X

 

   -  |

 
 
   '  

   
  $

    


 

  


     

   

 


 
  

   
 
 
Ethical Situations for a Retail Manager

ë Should it advertise that its prices are lowest in area even

though some items are not?
ë Should a retailer accept an expensive gift from a vendor?
ë Should salespeople use high-pressure sales when they
know the product is not the best for the customer͛s
needs?
ë Should a retailer treat some customers better than
others?
 '
 X

ë '
 X
 
 

 

  
  
ë |
   



 
 
    


ë X
    
  2

!
 !
'3 ,   '

  '  (0      
 4
 ' 
'
 X

ë '
 
 !

  '
 X

ë '
  
 
 !"   
  


 
  
5



ë  
 
       

$$$ 6 

      
 
,

 

ë    


 
     

 
     3  "  
   
 
  
 X

ë !
   
  
    
   6" 
       

 
 r$$$ 6

 " 0
     

 Œ





ë







O


ë OO 


ë 



 '
 
  


ë ' 


7    
 

  

ë , 
 


'
 
   
 
    


   'Ë&    3 #$$$$ 6 



 #$$ $$$ '8&
ë '  "

a  
 

 
    



    " 
 
ë (
a 

   
  
  
   ( ' (
 '
 
 '3
ë '  '
  ' 
     
   
 r$$$ 6 
    



3   "
   

  "
    "     
ë '   
 a    
3 
r  


   #$$$ 6 
    

        
ë '    a  


   
   

        

$$ $$$ 6


ë 5  "
 a  
$$ $$$ 6 
  

         
   


 5  
       6


  
    
 '
 X


ë , 

 |
    
  


r+     |
 a     Ë3 

, 
 
 

(  , !
 (,!
 

ë 
 8  X
 !  

 
  
  

 
  
    
ë X
 ÿ

X
 ÿ    
 

   
   
ë ! 5 X
 !    

   
  
  
ë '
 , 
 X

 ÿ

ë '
  
 
 !   , 
 




 "  
 
 


ë 8 "
   |
 

Food Retailers i    |
 

 
 '
 

   '
 




 

' "

O




'  
 !



 
O 

 X |

ë ' "

ë '   

ë 5 "

ë !  
ë   

ë '  
  "
  
          V
 



 

  X |
 
!
 a 
 
' "

A




 


 
"   



 

 

# 


Π



 " 




  
  



 





$

Œ





 %&'
 


 
  
(






" 
$
    '
 X




ë '
     

 
ë ÿ   . 

ë X
  
ë X  









O



 

 

      


 




O 
O



!   
*
    
 

        |
 

ë , 
 
'

ë ' 
 '

ë 
 ' 

ë 5   
 

ë , 
'

ë ,

ë ÿ
 
 
 

       |
 
Issues in Department Store Retailing
ë Competition
-Discount Stores on Price
-Specialty Stores on Service, Depth of Assortment
ë Lower Cost by Reducing Services

ë Develop Private Labels and Exclusive Brands

      , 
 
'

X
! ' 

 

 


 




 




$

  ! '





 


 




'

!! ') 









    , '
 |

ë Evolution
  7  X

ë ÿ    6 
   

ë Improved systems    3 
 
 
 
 ' 

ë ,   7 a 
 
,


'

ë !
  ' 
ë !  
 Ë  
  
|

   
ë Ë

 

  
   
"

    5   

 



  


O
 *




 5   
 

,     

  '  9 5
  
 

   


    


  

   
 |
 0 '




    
 


    
|


  
 




  
7
 |
 X

Electronic Retailing
Catalog and Direct Mail
Direct Selling
Television Home Shopping
Vending Machines
 Electronic Retailing
ë Primarily used by traditional retailers to
compliment store and catalog offerings
ë Exclusive e-tailers target small and dispersed
niche markets
 What are Amazon and eBay?

ë Amazon.com ʹ Merchandise to consumers.

ë eBay ʹ Acts as a mall or other shopping center

providing a ͞place͟ for buyers and sellers to meet
    
 |


ë 5
 

  
  

ë     

ë 

  
 

ë 
  
 |

      

' 
 

    , 
' 
ë
 
   

 


ë

  
9    
 

   
 
  
ë 
   
"9 
 

 



      
     5 ' 
ë   
       


  

 
, 
   
 
       5 ' 
ë X     
  
ë 
     
    
ë 
  1
0   
ë 
  

   
  
ë '  
 /    
 "
  0 
6 

 .    |

ë     
     
    
 
  
    .   
|

ë ' 
  
  
   
 
  
 

ë       

    




$ 









!

  

+ 

!



 
 


!









!,
 

O





 

!
-
  '  

 
    |
 
ë   |
    
   

 
        

    |
 
: +  &'     
 

 
 !   |
  &  

  
 



  
ë 
  !

 

   


ë (       6
   

 
 
 Ë  
    '

ë Ë 
ë     
ë
  ' 
ë 
 

ë (

 
 ' 0  
ë  



ë | " | 

Ë  

   
   
ë   
ë


    
ë .   


 &6 Ë  

   

  

ë   
ë Ë  

ë ,
  

ë
 3

ë .
 

ë
   

ë  

 
  
 .
 


 
(

 




 

   









  


*
 

 Π  
O .
ë A(/
 

$Π /

 

ë 
 









  

ë


ë


ë 
 Π /
ë*

   a



§ Search9   
  
  
 

§ Experience9 

 

   

§ Credence9 
  
 
  

    
    |
 ,   

ë       
 0

 
    

  


     
 


 
  
 
ë 
 
    
  

"
   




 
    |
 ,   

ë ( 
  
ë   
ë 
 
   
ë |
 
 
   



   
  

 

ë    
  
   
 
   0   
 

  
'        


  


 

   
 
ë    

   




    
 


 !   |

  
  $



  
  

0, *

 . /, *

 .

1   
  
1  
 
1 

 
 
 





  $



  

-, *



 +, #    




. 


     


  

 
 

 

) -
 
 
ë |
 
  
 
 
     "

ë 
 

   
   

  

  



    

 |
 ! 
# 


 

 


* ,