Retailing consists of the sale of goods from a fixed location such as a departmental store, hypermarket, supermarket or kiosk to the customers either in large or small quantities. A retailer buys products in large quantities from manufacturers or from wholesaler and in turn sells to the end-user. It is a vital part of any manufacturer’s distribution strategy and retailers are at the end of the supply chain process.
There are three major types of retailing as follows:
A standard physical location where buyers and sellers meet near corner of the streets or some common designated places to sell the goods.
The goods or products are sold in a big mall, which has a huge place and wide options for the end – users to choose the products at their own convenience and comfort. Examples
The goods or products are ordered via telephone, mail or Internet without having any physical presence using the online products catalogue to choose the required items. Examples are eBay, Amazon etc.
In the year 1920, the first supermarket opened in the United States, heralding in a new era of retail world wide.
In modern business world, customers are highly knowledgeable and expect something new and innovative ways of shopping.
Evolving expectations from shopping are as follows:
The KSA consumer outlook study (2000) in India established that 75% of consumers look out for attractive display in a store. The other important attributes are:
Consumer purchase decision factors include price, brand name, displays, advertising, promotional schemes and retailer suggestion.
To be successful in any kind of retailing business, the following elements are important:
Customer satisfaction surveys play a vital role in any retailing venture to focus on priority improvements. The focus areas would be
It is one of the India’s largest industry accounts for more than 10% of the country’s GDP and around 8% of the employment. The market size as per the various estimates predicted somewhere between Rupees eight lakh crore and 1 million crore, with grocery accounting for 40% or Rs.400, 000 crore.
Organized retail industry in India has grown from a size of only Rs.20, 000 crore to Rs. 160,000 crore in the year 2005 and the retail market as a whole is growing at an annual rate of 20% contributing annually from Rs. 400,000 crore in 2000 to Rs. 800,000 crore in the year 2005
India has over 5 million retail outlets of all sizes and varieties, but it is not representing the modern retailing format as compared to international standards which is giving an edge for international retailers with a great opportunity.
Organized retail industry is facing competition from unorganized sector in the form of traditional retailing
“Crossroads” inaugurated in late 1999 in Mumbai, India's first true shopping mall with ample space and all amenities
International retail majors such as Gap, Zara, Timex, United Colors of Benetton, Dairy Farm and Levis have already entered the market due to lifestyles changes in India and the "value for money" concept is growing up.
Tesco is planning to enter Indian retail market through a partnership agreement with Home Care Retail Mart Pvt. Ltd., and expects to open 50 stores by the year 2010
Reliance will be investing $3.4 billion to become the country’s largest modern retailer by establishing a chain of 1575 stores by March 2007.
Hypercity Retailing, a subsidiary of K Raheja Corp Group, is planning to open 55 hypermarkets by the year 2015
Wal-Mart is eagerly planning to open its doors in India and looking out its feasibility options
The annual A.T.Kearney Global Retail Development Index-2006,ranks 30 emerging countries on a 100-point scale – the higher the ranking, the more urgency there is to enter a market. This survey is done every year by a global strategic management consulting firm, A.T.Kearney, well - known for helping clients to meet their strategic objectives through a unique combination of strategic insight and collaborative working style, with firm’s offices being located in 30 countries.
On a regional level, Asia is in a leading position from the maturing markets of Eastern Europe.
Pantaloons have gained a brand identity among the consumers and became a great success and many stores were setup in different parts of the country during the year 2004.
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In order to survive in today’s competitive retailing trade, companies has to redefine the format of retailing in a customer friendly way, which gives them a great shopping experience in terms of convenience, comfort and wide product ranges. Modern retail expansion contributes to economic growth also along with creating avenues for employment, education etc.