The document provides an introduction to retailing, including: 1) Defining retailing as the last stage of distribution involving the direct sale of goods to consumers. A retailer obtains products from suppliers to resell. 2) Describing the importance of retailing in supporting local communities and employment. Retail management involves selling goods and services to consumers for personal use. 3) Outlining emerging trends in retailing like the growth of e-commerce, rural retail markets, and international brands entering India. Technology and changing customer demands are altering the retail environment.

1. INTRODUCTION TO RETAILING
MODULE 1
BBA

2. Module I: IntroductionModule I: Introduction
Nature, scope and importance of
retailing, retail competition
theories, Retail management
process, Influence of changing
environment on retailing viz
demographic changes, lifestyle
changes, technology changes (e-
business), Retail Environment.

4. RetailRetail
The word retail is derived from the
French word “retaillier” which means “to
cut a piece off” or “ to break bulk”.
In simple terms , it implies first hand
transaction with the customer.

5. RetailRetail
Retailing involves a direct interface with
the customer and the coordination of
business activities.

6. INTRODUCTION TO RETAILINTRODUCTION TO RETAIL
Retailing is a distribution channel function
where one organization buys products
from supplying firms or manufactures the
product themselves, and then sells these
directly to consumers. A retailer is a
reseller (i.e., obtains product from one
party in order to sell to another) from
which a consumer purchases products.

7. RETAILING Business activities involve Selling
Goods and Services to Consumers for their
Personal, Family or Household use.
“Every sale of Goods and Services is to final
consumer” – Food products, apparel, movie
tickets; services from hair cutting to e-ticketing.
Retailing is the Last stage in Distribution
Process- Wholesale is an intermediate where
Goods and services are sold to Business
customers.

8. MANUFACTURER
DISTRIBUTOR
WHOLESALER
RETAILER
END-CONSUMER

9. Who is a Retailer?Who is a Retailer?
Retailer links Producers to Customers
Retailer is a person, agent, agency, company or
organization who delivers the Goods or
Services to ultimate consumer

10. Functions Of RetailerFunctions Of Retailer
1) Breaking bulk
2) Providing assortment
3) Holding inventory
4) Providing services

11. importance of retailingimportance of retailing
SUPPORT FOR COMMUNITY
RETAIL SALES
EMPLOYMENT

12. Retail management processRetail management process

13. RETAILING WORLDRETAILING WORLD
1.INTRODUCTION TO THE WORLD
OF RETAILING
2.TYPES OF RETAILERS
3.MULTICHANNEL RETAILING
4.CUSTOMER BUYING BEHAVIOUR

14. RETAILING STRATEGYRETAILING STRATEGY
5.RETAIL MARKETING STRATEGY
6.FINANCIAL STRATEGY
7.RETAIL LOCATIONS
8.SITE LOCATIONS
9.ORGANISATION STRUCTURE & HRM
10.INFORMATION SYSTEM & SUPPLY
CHAIN MGT.
11.CRM

15. MERCHANDISE MGTMERCHANDISE MGT
12.MANAGING MERCHANDISE
ASSORTMENTS
13.MERCHANDISE PLANNING SYSTEM
14.BUYING MERCHANDISE
15.PRICING
16.RETAIL COMMUNICATION MIX

16. STORE MGTSTORE MGT
17.MANAGING THE STORE
18.STORE LAYOUT, DESIGN &
VIRTUAL MERCHANDISING
19.CUSTOMER SERVICE

17. Industry EvolutionIndustry Evolution
Traditionally retailing in India can be traced to
◦ The emergence of the neighborhood ‘Kirana’
stores catering to the convenience of the
consumers
◦ Era of government support for rural retail:
Indigenous franchise model of store chains run
by Khadi & Village Industries Commission

18. Textiles sector with companies like
Bombay Dyeing, Raymond's, S Kumar's and
Grasim first saw the emergence of retail
chains
Later Titan successfully created an
organized retailing concept and established
a series of showrooms for its premium
watches

19.  The latter half of the 1990s saw a fresh wave
of entrants with a shift from Manufactures to
Pure Retailers.
 For e.g. Food World, Subhiksha and Nilgiris in
food and FMCG; Planet M and Music World in
music; Crossword and Fountainhead in books.
 Post 1995 onwards saw an emergence of
shopping centers,
◦ mainly in urban areas, with facilities like car
parking
◦ targeted to provide a complete destination
experience for all segments of society

20. Emergence of hyper and super
markets trying to provide customer
with 3 V’s - Value, Variety and
Volume
Expanding target consumer
segment: The Sachet revolution -
example of reaching to the bottom
of the pyramid.
Retailers add value by Providing the Right
Product at The Right Place at the Right Time.

21. Organized RetailingOrganized Retailing
Organised retailing refers to trading
activities undertaken by licensed retailers,
that is, those who are registered for sales
tax, income tax, etc. These include the
corporate-backed hypermarkets and
retail chains, and also the privately owned
large retail businesses.
like Wal Mart, McDonalds

23. Unorganized RetailingUnorganized Retailing
Unorganised retailing, on the other hand,
refers to the traditional formats of low-
cost retailing, for example, the local
kirana shops, owner manned general
stores, paan/beedi shops, convenience
stores, hand cart and pavement vendors,
etc

24. EMERGING TRENDS INEMERGING TRENDS IN
RETAILINGRETAILING

25. Emerging TrendsEmerging Trends
Last decade has seen tremendous changes
in Retail Business – from made to order to
ready to wear, emphasis on value addition
and cost reduction.
Family run retail business giving way to
modern professional retail.

26. Emerging TrendsEmerging Trends
Retail improving inventory
management through systems – faster
turnover, better profitability, fast
changing customer preferences for
goods and services.
“BETTER CUSTOMER CARE”

27. Emerging TrendsEmerging Trends
With consumers for luxury goods
growing in numbers , the Indian retail
market is estimated to reach around US$
3.5 billion to US$ 30 billion by 2015

28. Emerging TrendsEmerging Trends
The increase in the PC and internet
penetration along with the growing
preference of Indian consumers to shop
online has given a tremendous boost to
e-tailing-the online version of retail
shopping. An estimated 10 per cent of
the total e-commerce market is
accounted by e-tailing.

29. Emerging TrendsEmerging Trends
Led by the rising purchasing power,
changing consumption patterns, increased
access to information and communication
technology and improving infrastructure,
rural retail market is estimated to cross
US$ 45.32 billion mark by 2010 and US$
60.43 billion by 2015

30. Emerging TrendsEmerging Trends
With international brands like Tommy, Esprit
and Puma (that have entered the country)
growing well over 100 per cent, many others
are also planning to foray into the Indian retail
market. India's vast middle class with its
expanding purchasing power and its almost
untapped retail industry are key attractions for
global retail giants wanting to enter newer
markets.

31. Emerging TrendsEmerging Trends
The world's largest retailer, Wal-Mart, has
tied-up with Sunil Mittal's Bharti Enterprises
to enter Indian retail market.
World's leading coffee chain, Starbucks'
enters India through a tie-up with the
country's leading multiplex operator PVR
Limited.

32. Global Retail scenarioGlobal Retail scenario
In the other parts of the world, retailing
is better organized than what it is in India.
The US retail Industry is the world
largest retail industry and its still growing.
In USA most part of retailing is
accounted by organized sectors.

33. Global Retail scenarioGlobal Retail scenario
The USA dominates the world retail
market and accounts for 32.3% of the
global retailing group.
Europe has 30.8 %, Asia Pacific has 25.6
%, and rest of the world has 11.20 %.

34. Global Retail scenarioGlobal Retail scenario
The organized retailing has gained a great
deal of momentum in China in the past
few years.
The developing countries are also making
an effort in the industry but organized
retailing is mainly dominated by the
developed countries like USA.

35. Global Retail scenarioGlobal Retail scenario
Retail is the significant contributor to the
overall economic activity around the
world.
The employment opportunities offered
by the retail industry is huge.

36. Global Retail scenarioGlobal Retail scenario
According to the US department of
labor, about 22 million Americans are
employed in the retailing industry in
more than 2 million stores.
Globally, retailing is customer centric
with an emphasis on innovation in
product, process and services.

37. Global Retail scenarioGlobal Retail scenario
Globally, Retail is a very fast changing
field and the customer not only has to
keep up with ever changing expectations
and demand of the consumers but also
has to keep a track on the competition
and changes in technology.

38. Indian Retail ScenarioIndian Retail Scenario
Most of the retailing in India is unorganized.
Most of the organized retailing in the country
has just started recently, and has been
concentrated mainly in the metro cities.
Today convenience has become a priority for
the Indian consumers and they want everything
under one roof so that they have an easy
accessibility.

39. Indian Retail ScenarioIndian Retail Scenario
So the organized retailing has a very big
opportunity to set itself in the Indian
markets.
The two main factors which drives
organized retailing in India are low prices
and the benefits that are offered by them.

40. Indian Retail ScenarioIndian Retail Scenario
India is seen as a competitive
marketplace with the potential target
consumers in the niche and middle class
segments.
Over the past few years. International
companies like Marks & spencer, Mc
Donald’s, Dominos etc have entered the
Indian markets.

41. Indian Retail ScenarioIndian Retail Scenario
The entry of companies like Big Bazaar have
created the concept of value for money for the
Indian consumers.
A McKinsey report on India says organized
retailing would increase the efficiency and
productivity of economic activities, and would
help in achieving higher GDP growth.
Large Indian companies like Reliance group,
Future group, Essar telecom Retail, Shopper
stop are investing huge amount of money in this
sector.

42. THE RETAILTHE RETAIL
ENVIRONMENTENVIRONMENT

43. The Legal EnvironmentThe Legal Environment
The legal scenario of a country plays an
important role.
For eg.
- Restricting the days and hours during
which the retailers may operate.
- Limit the manner of business to ensure
consumer privacy.

44. The Legal EnvironmentThe Legal Environment
Laws on non discriminatory hiring and
promotion of people.
Trademarks agreement which provides
retailers with exclusive rights to brand
names.
Licensing agreements which allows the
retailers to sell goods created by others
in return for a royalty.

45. The Legal EnvironmentThe Legal Environment
Price marking laws which specify the
discounted items must be marked
properly.
Product safety laws that prohibits
retailers to sell goods that have not been
tested properly.

46. The Technological EnvironmentThe Technological Environment
These changes can bring about a lot of other
changes as they affect the range of choices
available to both the consumer and the retailer.
New technology can lead to better products
and services for the consumer and at the same
time it can help the retailer as well like keeping
control over the inventory level.

47. The Importance ofThe Importance of
Technology in RetailTechnology in Retail

48. The Importance of Technology inThe Importance of Technology in
RetailRetail
1) Collection of data
The use of technology aids data collection. The data
can be collected regarding the consumers, their
purchases and the frequency of buying. This
information helps the retailer to distinguish the
customer who shops frequently.

49. The Importance of Technology inThe Importance of Technology in
RetailRetail
2) Efficiency in Operations
The use of technology serves the basis of
integrating the functioning of various
departments. As the process gets automated ,
the time involved in the task is reduced

50. The Importance of Technology inThe Importance of Technology in
RetailRetail
3) Helps communication
Communication can be faster with the
help of technology and it can be a 24 x 7
process. EDI can be used for
communication with the suppliers and
vendors
(EDI:-

51. The Importance of Technology inThe Importance of Technology in
RetailRetail
The use of systems to organize, search
and manage the data is termed as
DATABASE MANAGEMENT. A simple
purchase at any retail store enable the
stores to gather a vast amount of
information about the customer and
products.

52. The Economic EnvironmentThe Economic Environment
The economy is a term which is used to
denote the patterns of economic activity
in a country which includes the
production and environment, income,
consumption and the living standards.

53. The Competitive EnvironmentThe Competitive Environment
 Competitors are offering choices to customers and
“value added” products
 Competitors come in different sizes (small
organizations to international companies) and serve
different market segments (specialized industry
segments to mass markets)
 In the process of serving customers, many are making
profits; thus they have an incentive to increase their
market share and are promoters of retail competition

54. FDI in RetailFDI in Retail

55. FDIFDI
Meaning
Advantages
Disadvantages
Impact on India
FDI LATEST NEWS
Examples