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RETAILING
Final stage of any economic activity Involves all activities in selling goods/services to the final consumer for personal use. Link b/w the producer & consumer Most important channel member An image creator
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Rise of consumerism Proximity to the consumer Growth of private labels Globalization Technology
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WHY RETAILING???
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STORE BASED
NON-STORE BASED
SERVICES RETAILING
OWNERSHIP BASED
PRODUCT MIX
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STORE BASED
(operate from a physically brick & mortar environment)
On the basis of product mix offered: 1. Convenience Stores Essentially found in residential areas Provide limited amount of merchandise at more than average prices with a speedy checkout. Ideal for emergency and immediate purchases as it often works with extended hours, stocking everyday;
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2. Supermarkets A self-service store consisting mainly of grocery and limited products on non food items. May adopt a hi-low or an edlp strategy for pricing. Can be anywhere between 400sqm & 2500sqm Eg: foodworld, Food Bazaar, Reliance Fresh etc.
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3. Hypermarkets Combination of supermarket & department store Provides variety and huge volumes of exclusive merchandise at low margins. Operating cost is comparatively less than other retail formats. Selling area between 5000- 15000sqm One-stop shopping Offering food & non-food items. Eg: carrefour, Walmart, Tesco, Big Bazaar etc.
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4. Specialty stores
Gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a reebok then they find just reebok products in the respective stores.
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6. Department stores Very large stores offering a huge assortment of "soft" and "hard goods Often bear a resemblance to a collection of specialty stores A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Have atleast 50 employees 20000-40000 sqft. Shoppers stop, westside, lifestyle, marks & spencer, harrods etc.
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2. Off Price Retailers Merchandise sold in odd sizes, unpopular colors, off seasons & less pricess Eg: Pantaloon factory outlets, Levis FOs Some Other formats are: Discount department stores Outlet stores Limited assortment stores Dollar stores: traditional format selling 20-80% of groceries & other consumable products at discounted prices
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2. Direct Selling 3. Direct Marketing (Mail order, television retailing) 4. Electronic Shopping 5. Automated Vending/Kiosks 6. Airport Retailing
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SERVICES RETAILING
Selling services rather than merchandise Services like: Ailrlines, automobiles repair, banks, credit cards, education,health care, fitness, hotels, insurance, movies, restaurants etc.
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ENVIRONMENTAL THEORY
Retailers confront an environment which is made up of customers, competitors & changing technology. Retailers who successfully adapt techno, economic, demo & legal changes prosper & vice versa.
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1. New retailers often enter the market place with low prices, margins, and status. The low prices are usually the result of some innovative costcutting procedures and soon attract competitors.
2. With the passage of time, these businesses strive to broaden their customer base and increase sales. Their operations and facilities increase and become more expensive.
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3.They may move to better up market locations, start carrying higher quality products or add services and ultimately emerge as a high cost price service retailer. 4. By this time newer competitors as low price, low margin, low status emerge and these competitors too follow the same evolutionary process. 5.The wheel keeps on turning and department stories, supermarkets, and mass merchandise went through this cycles.
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CONFLICTUAL THEORY
Conflict exists between operators of similar formats. Retail innovation leads to development of more retail formats Retailing evokes through a dialectic process: blending of 2 opposites to create a new format.
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Thesis: Individual retailers as corner shops all across the country Anti thesis: Department stores Synthesis: Blending of thesis & antithesis resulting in thriving supermarkets & hypermarkets. It becomes the thesis for next round of evolution.
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OTHER SUBSECTORS Fuel Pharma Beauty & wellness Books, Music & gifts BEYOND URBAN BOUNDARIES Hariyali Kisaan Bazaar E-choupal
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THANK YOU
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