Retail is the sale of goods and services from individuals or businesses to the end user. There are two main types of retailing: in-store and non-store. In-store includes department stores, supermarkets, discount stores, and hypermarkets. Non-store includes vending machines, direct mail/catalogs, TV shopping, online retail, and telemarketing. Retailers must choose a format and positioning strategy to attract customers. Globally, retail is a large industry worth $6.6 trillion annually led by Walmart, Carrefour, and Metro AG. In India, retail makes up 14-15% of GDP but is fragmented with 96% of stores small. The industry faces challenges around infrastructure

1. An Overview on
Retail Industry
Bibin M Abraham

2. What is Retailing???....
•All activities involved in selling, renting, and providing
goods and services to ultimate customers for
personal, family or household use.
•In the channel of distribution, retailing is where the
customer meets the product.

3. Retail is usually classified by type of products as
follows:
• Food products
• Hard goods or durable goods (Goods that do
not quickly wear out and provide utility over
time)-
Appliances, Electronics, Furniture, Sporting
goods, etc..
• Soft goods or consumables -
clothing, apparel, and other fabrics. Goods that
have a limited period of utility (typically under
three years) in which you may use them.

4. Types of retailers by
marketing strategy
Retailing
Non- Store Retailing In Store Retailing

5. Major Formats of Non-store Retailing

6. Automatic Vending
• Non-store retailing that makes it possible to serve
customers where stores cannot.
Direct Mail & Catalogs
• Marketing efficiency is improved through segmentation and
targeting.
• Customer value is enhance by providing a fast and
convenient means of making a purchase.
Television Home Shopping
• TV home shopping is possible when consumers watch a
shopping channel on which products are displayed;
orders are placed over the telephone.
• TV home shopping programs traditionally attract 40-50
year old females.

7. Online Retailing
• Online retailing allows consumers to search
for, evaluate, and order products through the
Internet.
• The advantages of online retailing are:
– ability to compare different shops
– privacy
– Variety
Telemarketing
Telemarketing involves using the telephone to
interact with and sell directly to consumers.

8. Direct Selling
• Direct selling involves direct sales of goods and
services to consumers through personal
interactions and demonstrations in their home
or office.
• Many direct selling retailers are expanding into
international markets to offset the decline in
domestic sales.

9. Major Formats of In- Store Retailing
Format Description The Value Proposition
Exclusive showrooms either owned or Complete range available for a given brand,
Branded Stores
franchised out by a manufacturer. certified product quality
Focus on a specific consumer need, carry most Greater choice to the consumer, comparison
Specialty Stores
of the brands available between brands is possible
Large stores having a wide variety of products,
organized into different departments such as One stop shop catering to varied/ consumer
Department Stores
clothing, house wares, furniture, appliances, needs.
toys, etc.
Supermarkets One stop shop catering to varied consumer
Extremely large self-service retail outlets
needs
Stores offering discounts on the retail price
Discount Stores through selling high volumes and reaping Low Prices
economies of scale
Larger than a supermarket, sometimes with a
Low prices, vast choice available including
Hyper- mart warehouse appearance, generally located in
services such as cafeterias.
quieter parts of the city
Small self-service formats located in crowded Convenient location and extended operating
Convenience stores
urban areas. hours.
An enclosure having different formats of in-
Shopping Malls Variety of shops available to each other.

10. Retail Positioning
• For a store to be successfully positioned, it
must have an identity which has some
advantages over competitors, and at the same
time are recognized and valued by consumers.
The Retailing Mix
• Goods and services
• Physical distribution
• Communications tactics chosen by a store.

11. The Retailing Mix

12. Global Retailing
• Retail business grew between 25% - 30% percent in India and 13
percent in fast growing economies China and Russia.
• World’s largest private industry
• US$ 6.6 trillion sales annually
US Retail UK Retail Indian Retail China Retail WORLD’s TOP
Companies Companies Companies Companies Retail
Companies
Wal-Mart Stores, Tesco plc Lifestyle Shanghai Bailian Wal-Mart Stores, Inc.
lnc Group Co., Ltd (USA)
The Kroger Co Marks & Spencer plc Reliance Fresh Dalian Dashang Carrefour Group
Group Co., Ltd (France)
The Home Depot, Safeway plc Pantaloon Group Eguo China Retail Metro AG
lnc Group (ECRG (Germany)
Sears, Roebuck Somerfield plc Spencer's Retail Trading Co Ltd. ITM Enterprises SA
and Co (UK)
Target The Boots Company Reliance World Suning Appliance The Home Depot, Inc
Corporation plc Chain Store Group (USA)
Co., Ltd

13. Retailing in INDIA
– Largest employer after agriculture - 8%* of population.
– Highest outlet density in world, Around 12 mn outlets.
– Retailing in India is one of the pillars of its economy and accounts
for 14 – 15% of its GDP
– 96% of the 12 Million stores are less than 500 Sq. ft.
Different Types of Retail Sectors
– Informal retailing Sector
 Typically small retailers.
 Evasion of taxes
 Difficulty in enforcing tax collection mechanisms
 No monitoring of labor laws
– Formal Retailing Sector
 Typically large retailers
 Greater enforcement of taxation mechanisms
 High level of labor usage monitoring

14. Indian Retail Scene Post 2011
• Before 2011, India had prevented innovation and
organized competition in its consumer retail industry
• Over 30% of food staples and perishable goods produced
in India spoiled because poor infrastructure and small
retail outlets prevent hygienic storage and movement of
the goods from the farmer to the consumer.
• One report estimates the 2011 Indian retail market as
generating sales of about $470 billion a year of which a
miniscule $27 billion comes from organized retail such as
supermarkets, chain stores with centralized operations
and shops in malls

15. Challenges in the Industry
 Geographically dispersed population
 Real Estate Costs
 Supply Chain Inconsistency
 Poor Infrastructure and little use of IT systems
 Existence of counterfeit goods
 Lack of Skilled Manpower

16. Thank You