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“ Organized Vs Unorganized Retailing ” www.studygalaxy.com
Retailing Retailing consists of the sale of goods or merchandise, from a fixed location such as a department store or kiosk , in small or individual lots for direct consumption by the purchaser. Retail comes from the French word retaillier which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively) also refer to sale of small quantities or items.
Retail types There are three major types of retailing. The first is the market , a physical location where buyers and sellers converge. Usually this is done on town squares, sidewalks or designated streets and may involve the construction of temporary structures (market stalls).
The second form is shop or store trading Some shops use counter-service, where goods are out of reach of buyers, and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewellry) and controlled items like medicine and liquor. Self-service , where goods may be handled and examined prior to purchase, has become more common since the Twentieth Century.
A third form of retail is virtual retail where products are ordered via mail, telephone or online without having been examined physically but instead in a catalog, on television or on a website.
Retail sector: on an upward curve India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. While organized retail in India is only two per cent of the total US$ 215 billion retail industry, it is expected to grow 25 per cent annually, driven by changing lifestyles, strong income growth and favorable demographic patterns. KSA-Technopak, a retail consulting and research agency, predicts that by 2010, organized retailing in India will cross the US$ 21.5-billion mark from the current size of US$ 7.5 billion.
Future of Retail in India The Indian retail market is estimated at US$ 350 billion. But organised retail is estimated at only US$ 8 billion. However, the opportunity is huge—by 2010, organised retail is expected to grow to US$ 22 billion. With the growth of organised retailing estimated at 40 per cent (CAGR) over the next few years,
Reasons for Retail Growth: <ul><li>favourable demographics </li></ul><ul><li>rising consumer incomes </li></ul><ul><li>real estate developments </li></ul><ul><li>especially the emergence of new shopping malls, </li></ul><ul><li>availability of better sourcing options - both from within India and overseas - and changing lifestyle. </li></ul>
<ul><li>Organized versus Unorganized Retailing </li></ul><ul><li>Changing Age Profile And Disintegration Of Joint Family </li></ul><ul><li>Growing Disposable Income </li></ul><ul><li>Income growth and structural changes will fuel growth </li></ul><ul><li>Organised Retailing Will Expand Sharply </li></ul><ul><li>Foreign Investment Will Play a Bigger Role in Retailing </li></ul>
CONCLUSION: A further testimony to the fact that the technology is being taken seriously, is its deployment in strategic sectors like defense —the US Department of Defense (DoD) has mandated the use of RFID tags at the case and pallet level amongst all its suppliers so that it can have complete visibility of all its goods and assets. The Indian army could benefit hugely from adopting RFID technology. Some of the other sectors where RFID is expected to witness widespread deployment includes food, pharma, aerospace, automotive, transport and logistics, and electronics.
EPC/RFID technology has great potential in counterfeit detection across product categories —a killer application for India which can liberate from the scourge of counterfeiting in pharma drugs, automotive parts, food products, etc. For a company, it is imperative first to develop a clear understanding of how RFID affects supply chain dynamics, and then be willing to question and change the ways in which supply chain planning and execution is done.