Unit 1:- Retail Scenario
Structure
1.0 Objectives
1.1 Introduction
1.2 Retailing in India
1.3 Meaning and Importance of Retailing
1.4 Functions of a Retailer
1.5 Global Retail Scenario
1.6 Emerging Trends in Indian Retailing
1.7 Factors Influencing the Growth of Retail
1.8 Challenges for Retail in India
1.9 Impact of Economic Liberalization
1.10 Let Us Sum Up
1.11 Terminal Questions
1.0 OBJECTIVES
Guys, In this chapter, I describe every points very clearly so that you all understand all the concept very easily.
My main motive is to share my free notes to all the students.
Guys, agar ap exam ki preparation kr rhe ho or agar apko notes banane me problem ho rhi hai to ap mere free notes mese bhi concept padkr notes bana skte hai.
Or apko koi topic samaj nhi aarha ho to app mereko personally message bhi kr skte h, menu bar me mera instagram link h.
1.1 INTRODUCTION
- Retail word is derived from the French Word retaillier, meaning "to cut again" or "to break a bulk".
- Some cut functions retailers performs is sorting, storing, packing, and selling the goods in small quantities to the final consumers.
- Retailing is the largest private sector in the world and the prime mover of the economy.
1.2 RETAILING IN INDIA
- In early 1990's, due to liberalization the growth of Indian economy increases day by day which affects an increasment in new domestic and foreign products through different media, such as television and the Internet.
- Apart from this, social changes such as increase in the number of social/nuclear families and the growing number of working couples(men as well women) resulting in increased spending power, also contributed to the increase in the Indian consumers personal consumption.
* Positive impact of retailing in India/ after liberalization
- Rapid growth in the retail industry.
- Increased availability of retail space.
- Repid urbanization.
- Qualified manpower also boosted the growth of the organized retailing sector.
- Food retailing also helps in national level, like Foodworld, Subhiksha etc.
- Supermarket and departmental chains replaced traditional grocery and general store formats.
- According to the taste of Indian Consumers there is an introduction of fast foods (McDonalds), packaged foods(MTR, Namma MTR), vending machines and speciality cafe parlors(Nescafe, Tata Tea, Cafe Coffee and Barista).
- Employement opportunities in retailing also grow rapidly/ Employement opportunities to the poorest and unskilled.
- Great impact on economic development of a nation.
- Some big retail companies also help in education to poor children.
* India has been called as a nation of shopkeeper due to the large number of Mom and Pop stores.
* In Retailing, India is one of the top country of world, thanks to the following:-
- Rising income,
- Change in consumer behaviour,
- Media explosion,
- Corporatisation of retail,
- New breed of enterpreneurs and
- Entry of foreing retailers.
1.3 MEANING AND IMPORTANCE OF RETAILING
- The word Retailing is derived from the French word retaillier, meaning 'to cut a piece off' or 'to break a bulk' .
- Retailers perform several activites such as:-
- Anticipating customer wants.
- Giving assortment of products.
- Acquiring market information and Financing.
* According to Phillip kotler:-
- Retailing includes all the activities involved in selling goods or services to the final business use.
* A retailer may earn through two ways:-
- For selling goods such as grocery store or a book store.
- For selling services such as parlors or a theatres.
- Retailing is a combination of activities, involved in selling or renting of consumer goods or services directly to the ultimate customers for their personal or household use.
- For increasing their sales retailers perform such diverse activities as buying, advertising, data processing, manpower management and maintenance of inventory.
1.4 FUNCTIONS OF RETAILER
Give products and services in nearby location:-
- Retailers acquire products and services from different places and assort them at a single point as per the needs of the consumers.
Convenience of timing:-
- Retailers store large amount of goods and when the customer needs, they provide their products and services to fulfill there needs.
Convenience of size:-
- Retailers break bulk and serve the produxts in quantities as per the needs of customers.
Information:-
- Retailers informs and educates their customers about the product features and benefit.
- They also provide feedback about the new product.
Lifestyle support:-
- The retailer helps consumer by providing appropriate products, services and advices.
- Because consumption of goods and services influence life style of consumers.
1.5 GLOBAL RETAIL SCENARIO
- Globally, retailing is the largest revenue generator and employment provider next only to agriculture.
* Some largest retailers in the world:-
- Wal-Mart Stores Inc - USA
- Carrefour group - FRANCE
- The kroger Co - USA
- The Home Depot Inc - USA
- Metro - GERMANY
* In USA:- - In USA, the retail industry employs very millions of people and generates more than some trillion dollars sales annually.
- Before the Second World War, the retail sector is largely consisted of small family run stores popularly called Mom and Pop stores.
- After the World War-2, there is fast growth in income and changing lifestyles in USA, the small retail sector convert into modern, and large stores and run by professional management for growth of income.
* Wal-Mart:-
- Wal-Mart was established in 1960's.
- It provided goods at very low prices so that small retailers buy products in bulk and sales in their own value.
- Over the years, Wal-Mart sales increasingly updated and hence it becomes the largest retailer in the world.
* In Japan:-
- Very large amount of peoples employ in Japan retail sector.
- Large amount of small firms and stores are in Japan.
- Because there is large amount of WholeSale stores.
* In Europe:-
- In Europe, there is a high concentration of retail sales.
- There is small family owned stores dominating the markets.
1.6 EMERGING TRENDS IN INDIAN RETAILING
- In India, in retail sector millions of peoples are working.
- And it helps to increased their organized sector.
- They try to make more and more products so that they easily sales their products to the customers for their needs.
- Now, In rural areas they also established their companies for generated more profits means their motive is to sale large amount of products in rural areas.
* Spread of Organised Retailing:-
- Organised retailing is spreading and making its presence felt in different parts of the country.
- The trend in grocery retailing, is different in others states either country.
- Means different states different tastes and style of living.
1.7 FACTORS INFLUENCING THE GROWTH OF RETAIL IN INDIA
- India is one of the most populous country.
- Consumer expenditure is growing annually.
- India has largest young pupulation in the world.
- India has more English speaking peoples.
- The retail industry in India focusing on their growth(in profit as well).
- Food and groceries also influencing the growth in retail.
- A big investment in Supermarkets and Hypermarkets.
* Ensuring Success in Retailing:-
1. Consumer focused selling:-
- Focused should be on the customer.
- His demand and his changing tastes and preferences.
2. Simple over complex:-
- As life becomes more complicated and stressful.
- So complicated things is difficult to understand by customers.
- That's why simpler things will be preferred more.
3. Time saving:-
- Every customer wants to save as much time as possible.
- Main motive is to fulfill customers needs in minimum time.
- That's why focussed should be on providing improved service through properly trained staff as well providing customer convenience.
4. Trust:-
- The customer only wants that the retailers make strong bond.
- It increase the trust and develop a relationship between customer and retailer.
* Other factors are:-
- Maintaining low cost of operations.
- Investment in appropriate and cost effective technology.
- Focusing on customer service and loyalty.
- Building a reliable supply chain and logistic systems.
- Making and maintaining private brands.
- Reduce shrinkage and pilferage.
1.8 CHALLENGES FOR RETAIL IN INDIA
1. Expansion Vs Job Market:-
- The industry is facing a lack of middle management level professionals.
- Major retailing are hiring aggressively from the similar and smaller organizations by offering better packages.
- They are creating various levels of management and hiring peoples itself.
- Some of the areas such as technology, supply chain, distribution, logistics, marketing, product development and research are becoming very critical for the success of the organizations.
- All of these would lead to the recruitment of highly professional people who specialize in these fields.
- In Easy, peoples got no perfect job as their ability.
- Some others people who have no ability to do such work got these jobs very easily.
2. Supply Chain Management:-
- According to consumer tastes and preferences, industries faced problems that how much products they make and provide.
- Another problem is to give the product to the consumer in best quality.
- That's why industries improve there supply chain systems.
3. Frauds in Retail:-
- Many companies face these critical problems of frauds.
- Frauds including vendors frauds, thefts, shoplifting and inaccuracy in supervision.
- These frauds can be handle/maintain by using security techniques, such as CCTV's
4. Challenges with Infrastructure and Logistics:-
- Lack of proper infrastructure and distribution channels in the country results in inefficient processes.
- This is a major hindrance for retailers as a non-efficient distribution channel is very difficult to handle and can result in huge cases.
- Infrastructure does not have a strong base in India.
- Urbanization and globalization are compelling companies to develop infrastructure facilities.
- Transportation, including railway systems, has to be more efficient.
- Highway have to meet global standards.
- Airport capacities and power supply have to be enhanced.
- Warehouse facilities and timely distribution are other areas of challenge.
- To fully utilize India's potential in retail sector, these major obstacles have to be removed by the parties involved in retail industry.
1.9 IMPACT OF ECONOMIC LIBERALIZATION:-
- After the liberalization many foreign companies have invested in India.
- Indian brands and foreign they both proliferate their brands.
- The competition in the market has intensified and consumers have become more discerning and demanding.
- They seek well known brands and are willing to pay a premium for service and quality.
- Franchising has grown rapidly and many foreign retailers including McDonald, Pizza Hut, KFC, etc; have set up franchises.
* On that time India restricts FDI(Foreign Direct Investment) in retail.
- India allows:-
- Foreign retailers are allowed 100% investment only in case of single brand outlets eg. Nike, Addidas, or in franchising operations eg. McDonald, KFC.
- FDI is allowed in back end operations eg. In developing supply chain & logistics.
- Wal-Mart has tied up with Bharti to establish back end operations in India.
- India opened up the real estate allowing 100% of FDI in construction projects.
- Unlike India, other developing countries like China and Malaysia have been more open to FDI in retail and have hence attracted higher investments.
* Benefits of FDI (Foreign Direct Investment) in India:-
1. Benefits to customers:-
- By making wide range of goods and services available at lower cost.
2. Improve supply chain:-
- FDI in retail will greatly improve supply chain and back end infrastructure.
3. Latest technology:-
- After FDI customers got latest technology so that Indian peoples also known about market trends.
4. Connect with global:-
- Helps Indian retail chains integrate with global supply chains.
* Limitations of FDI in India:-
- Impact of FDI on small retailers and middleman families.
1.10 LET US SUM UP
Guys after understand this chapter you easily make a short note about Retail Scenario.
And i think you should write a short note about this chapter.
1.11 TERMINAL QUESTIONS
Guys whenever our papers last month come, I give you question papers(free).
Abhi ke liye yahi padlo or papers ki tyaari krlo.
Instagram:- munmung02122018
0 Comments