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i have done ma presentation on based on my experience in retail for 3 year

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  2. 2. Evolution of Indian retail Modern Formats/ Historic/Rural Traditional/Pervasiv Government International Reach e Reach Supported Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls Khadi Stores Cooperatives Convenience Stores Mom and Pop/KiranasWeekly MarketsVillage FairsMelas Source of Neighborhood Availability/ Low Shopping Entertainment Stores/Convenience Costs / Experience/Efficiency Distribution
  3. 3. { Derived form a French word “Retailer” Meaning : to cut a piece off or to break bulk } “Includes all the activities of selling products orservices to the end consumers with added value”.
  4. 4.  Sale of goods/Services to the ultimate consumers-Personal, Family or Household use. Thus involves more than just selling products-(Services) Final leg in the distribution channel Is labor intensive
  5. 5.  Identifying the target markets (customers) Interpreting the needs of the targeted customers Developing good assortment of merchandise Presenting them in an effective manner so thatcustomers find it easy and attractive to buy
  6. 6. TARGET CUSTOMERS(BIG BAZAAR) Married couples Unmarried couples Income Group Rs 8000 – Rs 35000 per month Age Group All age group
  7. 7. Retailing has multiple functions-Creates Market & Generates Employment
  9. 9. Understanding Customer’s Needs & Wants Difference between need and want Understand what products and services are required bythe customers
  10. 10. Breaking the Bulk` Manufacturers normally send in cartons/cases/bags Retailers breaks these bulk suitable to the customer’s need Breaking Bulk: Breaking large shipments into smaller
  11. 11. Providing Services Provision of credit limit & hire-purchase facilities Home delivery of goods/services Provision of warranty, after sale service, customercomplaint resolution Helping customers choose a product/service Displaying products for customers ease of selection
  12. 12. Holding Inventory Help the customers in keeping the inventory alreadybroken into user-friendly sizes/prices Help the customers in making the products available at allthe time at relatively stable prices. Helps the customers in reducing the storage costs/losses
  13. 13. Providing Information to Suppliers Retailers are in direct contact with the end consumers Feed back from the customers, comments, suggestions etc.. Market/Source of competitor information
  14. 14. TYPICAL CHANNEL OF DISTRIBUTION Manufacture Wholesaler Dealer Retailer Final Consumer
  15. 15. Types of Retailers Specialty Store: (Narrow product line ) E.g. Athlete’s Foot. Reebok, Nike, Department Store: (Several Product lines) E.g. Pantaloons, Shoppers stop Convenience Store: (Limited line of high turnover convenience products, Small store in residential area, ) E.g. Local retail shops open 24/7 Discount store: Standard or specialty merchandise low price, low margin, high volume stores (Big Bazaar, Wal-Mart)
  16. 16. CONT… Super markets: (Huge Selling space, routinely purchased food and household items. Plus services (Food World, More Retailing) Off-price retailer: Leftover goods, overruns, irregular merchandise sold at less than retail price E.g. Factory outlets Catalog Showroom: Broad selection of high markup, fast moving, brand-name good sold by catalog at discount. E.g. Oriflame, Amway
  17. 17. Based on merchandise and pricing Departmental Stores Specialty Stores Discount Stores Supermarkets & Hypermarkets
  18. 18. Department StoresA large store selling: Broad Variety & DeepAssortment Offer considerable customerservices Organized into physically separatedepartments Ex: Shoppers Stop, J C Penny, Regional Malls
  19. 19. Continued.. The Characteristics :  Located in the market area or a major shopping center  Availability of parking space  Freedom for the customers to move around  Relatively high prices with margins large enough
  20. 20. Speciality Stores Have narrow product line with deep assortment Provides higher degree of customer service Better selection with the assistance of sales people.
  21. 21. Discount Stores General merchandise retailer Offers broad variety & assortment Limited services and low prices
  22. 22. The characteristics :  Located in the lower priced areas away from the market  Dependence on the shoppers  Low cost fittings  No free services such as delivery to door etc..  Relies on heavy advertisement in the nearby areas No free services such as delivery to door etc..
  23. 23. Super Market , Superstores & HypermarketsSuper Market Self-service (Majorly) food storeoffering groceries along with otherhousehold maintenance products Size of the store- <25000 Sq Ft. Low cost, low margin, high volumestores
  24. 24. Continued.. Superstores  Larger supermarkets  Size of the store- 25000 Sq Ft +.  Also offers products and services like pharmacy, bakery, chats, salad bar etc under one roof Ex: Nilgiris
  25. 25. Continued.. Hypermarkets  Very large in size  Size of the store- 50000 Sq Ft +.  offers mainly grocery, general merchandise goods, flower shop, photo shop etc..  Selling huge volumes at less margins  Similar to that of the discount stores.
  26. 26. MERCHANDISINGThe activity of tryingto sell goods orservices by advertisingthem or displayingthem attractively.
  27. 27. PROBLEMS IN ORGANISED RETAIL ININDIA Stiff competition Opposition to FDI Shortage of retail space Customs duties Shortage of retail space Multiple and complex taxation system Poor supply chain Trained work force Lack of Retailing Courses and study options Technology
  28. 28. THE ORGANIZED PLAYERS Indian companies  Foreign Players  Future Group  Reliance Retail  Nike (Single brand)  Bharti  Levis (Single brand)  ShoppersStop  Wal-mart (JV)  Pyramid  Aditya Birla Group  Metro (Cash&Carry)  Subhiksha  Spencer Group  Tata – Westside,  Tata – Chroma
  29. 29.  Government has to formulate a separate policy for the industry FDI needs to be encouraged Land acquisition rules required modification Retail as a separate industry CONCLUSION