retail management (india)
TRANSCRIPT
RETAIL MANAGEMENTRetail management is the sale by seller in Retail management is the sale by seller in small quantities to customer not for resale.small quantities to customer not for resale.
It is the process of bringing the ultimate It is the process of bringing the ultimate user to the main producer, through a series user to the main producer, through a series of stages, where retailing is the last one. It of stages, where retailing is the last one. It is not limited to quantities, but limited to is not limited to quantities, but limited to
the exact requirement of the ultimate user. the exact requirement of the ultimate user. It includes various processes which help the It includes various processes which help the
customers to procure the desired customers to procure the desired merchandise from retail stores for their end merchandise from retail stores for their end
use.use.
RETAIL MIX
Retail mix is a blend of traits that Retail mix is a blend of traits that work together to form a distinct retail work together to form a distinct retail
operation.operation.
Retailers examine their retail mix for Retailers examine their retail mix for formulating strategy. The retailing formulating strategy. The retailing
mix approach helps business mix approach helps business managers consider how to use each managers consider how to use each of traits in meeting the needs and of traits in meeting the needs and
desires of customers.desires of customers.
Retail SectorRetail Sector
The retail sector can be divided into two segments:
•Value retailing- which is typically a low margin- high volume business (primarily food and groceries)
•Lifestyle retailing- which is a high margin-low volume business ( apparel, footwear, etc )
TYPES OF RETAIL OPERATIONS
1. Department store1. Department store
2. Specialty store2. Specialty store
3. Discount/Mass Merchandisers3. Discount/Mass Merchandisers
4. Warehouse/Wholesale clubs4. Warehouse/Wholesale clubs
5. Factory outlet5. Factory outlet
EMERGING SECTORS IN RETAILING
Retailing is one of the largest sectors in the global economy. It is going through a
transition phase not only in India but the world over. The corner grocery store is slowly
giving way to international formats of retailing. The traditional food and grocery
segment has seen the emergence of supermarkets/grocery chains (Food World,
Nilgiris, and Apna Bazaar), books/music/gifts (Archie’s, MusicWorld, Crosswords,
Landmark).
RETAIL INDUSTRY IN INDIA
Retail is India’s largest industry, Retail is India’s largest industry, accounting for over 10 percent of the accounting for over 10 percent of the
country. Its GDP is around eight percent country. Its GDP is around eight percent of employment. Retail in India is at the of employment. Retail in India is at the crossroads. It has emerged as one of crossroads. It has emerged as one of
the most dynamic and fast paced the most dynamic and fast paced industries with several players entering industries with several players entering
the market. The market is growing, the market. The market is growing, government policies are becoming more government policies are becoming more
favorable and emerging technologies favorable and emerging technologies are facilitating operations.are facilitating operations.
FOREIGN DIRECT INVESTMENT IN RETAILING IN INDIA
Until 2011, Indian central Until 2011, Indian central government denied FDI in multi-government denied FDI in multi-brand retail, forbidding foreign brand retail, forbidding foreign groups from any ownership in groups from any ownership in
supermarkets, convenience stores or supermarkets, convenience stores or any retail outlets. Even single-brand any retail outlets. Even single-brand retail was limited to 51% ownership retail was limited to 51% ownership
and a bureaucratic process.and a bureaucratic process.
CURRENT STATUS OF FDI FOR CURRENT STATUS OF FDI FOR SINGLE BRAND RETAIL STORESSINGLE BRAND RETAIL STORES
In November 2011, India’s centralIn November 2011, India’s central
government announced retail reforms for government announced retail reforms for both multi-brand stores and single brand both multi-brand stores and single brand stores. In January 2012, India approved stores. In January 2012, India approved
reforms for single-brand stores welcoming reforms for single-brand stores welcoming anyone in the world to innovate in Indian anyone in the world to innovate in Indian retail market with 100% ownership. But retail market with 100% ownership. But imposed the requirement that the single imposed the requirement that the single brand retailer source 30% of its goods brand retailer source 30% of its goods
from India. from India.
CURRENT STATUS OF FDI FOR CURRENT STATUS OF FDI FOR MULTI-BRAND RETAIL STORESMULTI-BRAND RETAIL STORES
On 14 September 2012, the government On 14 September 2012, the government of India announced the opening of FDI in of India announced the opening of FDI in multi-brand retail, subject to approvals multi-brand retail, subject to approvals by individual states. On 20 September by individual states. On 20 September 2012, the government of India formally 2012, the government of India formally notified the FDI reforms for single and notified the FDI reforms for single and multi-brand retail, thereby making it multi-brand retail, thereby making it
effective under Indian law. On 7 effective under Indian law. On 7 December, 2012, the Federal December, 2012, the Federal
Government of India allowed 51% FDI in Government of India allowed 51% FDI in multi-brand retail in India.multi-brand retail in India.
GROWTH OF RETAILING IN INDIA
Indian retailing industry has seen phenomenal growth in the last few
years. Currently, India is the 5th largest retail market in the world. The
country ranks fourth among the surveyed 30 countries in terms of
global retail development.
RETAILERS IN INDIA
• Reliance Retail• Big Bazaar• Bharti-walmart• Subhiksha• DLF Shopping Malls• Pantaloon Retail• Tata Group• K Raheja Group
TOP RETAILERS IN INDIA
GROWTH OF RETAIL OUTLETS IN INDIA
RETAIL SALES IN INDIA
TECHNOLOGY IMPACT ON RETAIL
Retailing is a ‘technology-intensive' Retailing is a ‘technology-intensive' industry. It is quoted that everyday at industry. It is quoted that everyday at
least 500 gigabytes of data are least 500 gigabytes of data are transmitted via satellite. Online transmitted via satellite. Online
systems link point-of-sales terminals to systems link point-of-sales terminals to the main office where detailed analyses the main office where detailed analyses on sales by item, classification, stores on sales by item, classification, stores
or vendor are carried out online. or vendor are carried out online. Besides vendors, the focus of the Besides vendors, the focus of the
retailing sector is to develop the link retailing sector is to develop the link with the consumer. with the consumer.
CONCLUSION
Retailing, thus enjoys many unique Retailing, thus enjoys many unique features. Inefficiency in retailing leads features. Inefficiency in retailing leads
to lower profitability of the retailers to lower profitability of the retailers and lower service outputs for the and lower service outputs for the
consumers.consumers.Steps to strengthen the position of the Steps to strengthen the position of the retailing industry must be taken. Such retailing industry must be taken. Such
steps may include establishment of steps may include establishment of retailer’s co-operatives, merger and retailer’s co-operatives, merger and
buy-out, use of technology to the buy-out, use of technology to the greatest possible extent, setting up of greatest possible extent, setting up of
non-store retailing centers and non-store retailing centers and increase in franchisee network.increase in franchisee network.
VARIOUS RETAILERS AROUND THE WORLD