Impact of organised retailing on traditional retailers

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detail how the organized sect influencing unorganized sector

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Impact of organised retailing on traditional retailers

  1. 1. IMPACT OF ORGANISED RETAILING ON TRADITIONAL RETAILERS <br />
  2. 2. ORGANIZED RETAILING <br /><ul><li>Modern retailing with busy shopping malls
  3. 3. Multi storied malls
  4. 4. Huge complexes
  5. 5. They offer a large variety of products in terms of quality, value for money and makes shopping a memorable experience. </li></ul>TRADITIONAL OR UNORGANISED RETAILING <br /><ul><li>street markets,
  6. 6. counter stores,
  7. 7. kiosks and vendors, where the ownership and management rest with one person only. This sector accounts for two thirds of the market and requires low skilled labor. These are highly competitive outlets, with negligible rental costs (unregistered kiosks or traditional property), cheap workers (work is shared by members of family) and low taxes and overheads. </li></li></ul><li>Organized vs Unorganized Retail<br /><ul><li>In the developed economies, organized retail is in the range of 75-80 per cent of total retail, whereas in developing economies, the unorganized sector dominates the retail business.
  8. 8. The share of organized retail varies widely from just 1 per cent in Pakistan and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia</li></li></ul><li>Modern retail formats, such as hypermarkets, superstores, supermarkets, discount and convenience stores are widely present in the developed world, whereas such forms of retail outlets have only just begun to spread to developing countries in recent years.<br />In developing countries, the retailing business continues to be dominated by family-run neighborhood shops and open markets<br />
  9. 9. STRENGTHS OF ORGANISED RETAIL SECTOR <br /><ul><li>EXTENSIVE USE OF TECHNOLOGY
  10. 10. BETTER UTILISATION OF RESOURCES
  11. 11. USE OF MANAGEMENT INFORMATION SYSTEM FOR SYSTAMATIC ALLOCATION OF RESOURCES
  12. 12. REGULATIONS OF USING SIMMILAR TYPE OF STRUCTURE ie-FORMAT RETAIL STORES LIKE SUPER MARKETS ,HYPERMARKETS,SPECIALITY STORES ECT
  13. 13. ENHANCES WELFARE GAINS TO THE CONSUMERS
  14. 14. IMPACT ON GROWTH &PRODUCTIVITY
  15. 15. DIRECT LINK TO AGRICULTURE OR MANUFACTURE SAVING COST
  16. 16. IMPROVEMENT OF GOVT REVENUES </li></li></ul><li>WEAKNESS OF UNORGANISED RETAIL SECTOR <br /><ul><li>FRAGMENTED
  17. 17. UNSYSTEMATIC
  18. 18. LACK OF SOCIAL SECURITY FOR LABOUR WELFARE
  19. 19. MAXIMUM LABOUR TURNOVER
  20. 20. LACK OF LATEST TRENDS </li></li></ul><li>UNFAVORABLE IMPACT OF ORGANISED RETAIL ON UNORGANIESD RETAIL SECTOR<br /><ul><li>Unorganized retailers in the vicinity of organized retailers experienced a decline in their volume of business and profit in the initial years after the entry of large organized retailers
  21. 21. The adverse impact on sales and profit weakens over time
  22. 22. There is competitive response from traditional retailers through improved</li></ul>business practices and technology up gradation.<br />
  23. 23. FAVORABLE IMPACT OF ORGANIZED RETAILING ON TRADITIONAL RETAIL <br /><ul><li>Exposure of organized sector
  24. 24. Striving for growth
  25. 25. Entering into New ventures
  26. 26. Trying to upgrade through new technology </li></li></ul><li><ul><li>Globalizationof Retail sector
  27. 27. Overall share of organized retailing remains low,
  28. 28. Its share in certain categories is relatively high and in certain other categories quite low.</li></ul>Example –low share of organized sectors-un stiched clothes including sarees ,ethnic clothings ,sweet shops ,food grocery <br />High share –Almost all multinational brands of different items as man’s wears <br />Kids wears <br />

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