RETAIL MANAGEMENT
GIVING THE BEST AND THE NEW UNDER ONE ROOF
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Contents
1 R Retail An Intro
2
Retail Industry - India
Trends in Retail Formats
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Functions
Conclusion
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Let us start with a question
Is there any thing common our local Jagadamabas
store and Big bazar?
What is it ?????
Think for while before we start.
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RETAILING
It is defined as a activities or steps used to sell a product or
service to consumers for their household, personal or domestic
consumption.
Retail derived from French word Retaillier meaning to cut a
piece off or to break bulk
A retailer is a person, agency or institution which is in the
business of reaching the goods, merchandise or services to the
ultimate consumers.
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Functions
1. Sorting
2. Breaking Bulk
3. Holding stock
4. Additional Services.
5. Communication Channel
6. Advertising and Distribution
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Sorting
Manufacturers usually make one or a variety of products and
would like to sell their entire inventory to a few buyers to reduce
costs.
Consumers prefer variety of goods and services and buy in
required quantities.
So retailers has to buy goods in reasonable quantities and selling
them to consumers in small units
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Breaking Bulk
To reduce transportation costs, manufacturers and whole
sellers typically ship large cartons of the product.
Retailers then divided into small units for individual
consumption needs.
Ex : Groceries and Fruits.
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Holding Stock
They offer the service holding stock for the manufacturers.
It allows availability of products to consumers.
It helps to keep prices stable and enables the manufacture to
regulate production.
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Additional services
They ease the change in ownership of merchandise by
providing services that make it convenient to buy and
use products.
They provide product guarantees, after sales services
and dealing with consumer complaints.
They also provide credit and hire- purchase facilities.
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Channel of Communication
They
act
as
communication
channel
between
producers, whole sellers and the consumers.
Manufacturers learn sales forecasts, delivery delays
and customer complaints.
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Advertising and Transport Functions
Small manufacturers can use retailers for advertising and prepayment of merchandise.
This in turn can lead to image and brand building of goods and
services offered by any firm.
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Activities of Retailers
Arranging
assortment of
offerings
Breaking Bulk
RETAILERS
Providing services
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Holding stock
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Arranging Assortment
An assortment is a retailers selection of merchandise.
Retailers have to select the combination of assortments of various
categories.
It must include substitutable items of multiple brands, SKUs and
price points.
Ex : MORE is a grocery chain has an assortment of fast moving
brands.
The assortment plan is governed by location, size and store
image
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RETAIL INDUSTRY IN INDIA
A Curtain raiser
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Evolution of Indian retail
Historic/Rural
Reach
Traditional/Perv
asive Reach
Government
Supported
Modern Formats/
International
Exclusive Brand Outlets
Hyper/Super Markets
Department Stores
Shopping Malls
PDS Outlets
Khadi Stores
Cooperatives
Convenience Stores
Mom and Pop/Kiranas
Weekly Markets
Village Fairs
Melas
Source of
Entertainment
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Neighborhood
Stores/Convenienc
e
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Availability/ Low
Costs /
Distribution
Shopping
Experience/Efficienc
y
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Indian retail Industry
Organized retail consists of 8 % and expected to reach by
20 % by 2020.
Indian retail market will be USD 750-850 Billion by
2015.
100 % FDI in Single brand retailing and 51% in Multi
brand retailing.
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Global Retail Development Index(2014) & India
India ranked 20th in world by AT Kearney with a market
attractiveness of 36.8% and a country risk of 39% .
High operating costs, low bargaining power with vendors.
Real estate cost and space availability are important issues
in Indian retail industry.
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Reasons for fragmented retailing
Poverty
Low per capita income
Savings-focused and less indulgent mindset
Poor infrastructure facilities
Restriction on intra-state good movement
High taxes
Expensive supply chain
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FDI acceptance among Indian states
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Biggest issues in Indian FDI policy
1) 50 % investment in Back end infrastructure.
2) 30 % sourcing from small industries
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Challenges for International players
a) Availability of retail spaces.
b) High real estate and rental costs.
c) Clarification on certain policy - back end infrastructure .
d) Governmental procedures and political risk
e) Skilled manpower
f) Infrastructure and currency fluctuations
g) Right set of partners.
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Constraints in Indian Retail Industry
Policy neglect
Shortage / high cost of real estate
Complex regulatory regime
Inefficiency in supply chain
Paucity of expert management and trained staff
Availability and cost of funds
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Trends in Retail Oulets
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1.
Mom and Pop stores and Traditional stores.
2.
Department stores
3.
Discount stores
4.
Category Killers
5.
Specialty stores
6.
E-tailers
7.
E-stores or Virtual stores
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Mom and pop stores
Traditional stores
Department stores Ex : BigBazar, More etc
Speciality retailers Ex : Timezone, Tanishq
Discount stores : Ex- Wal-mart, K-mart, Reliance, Bigbazar etc
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Category Killers
They are giant retailers that dominate one area of merchandise.
They can purchase other items which are related with their
merchandise
Ex:- Office depot, home depot
Specialty stores
They concentrate on one type of merchandise.
Ex :- Body shop, Ravlon shops
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E- tailers
They are strictly online retailers.
Ex :- Amazon , Flipkart
E-stores or Virtual stores Ex: Online portals mainatined by
different retailing giants ex: Amazon, Wal-mart.
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Retail - Opportunities
Indian Consumer is changing
Changes offer retailing opportunity
Many opportunities in Retail & Food Services
Enabling Conditions Exist for achieving Success.
Can provide placements for you people
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Conclusion
1. Organised retail has huge potential in India.
2. Retail industry is dynamic nature.
3. It adds convenience and better choice for consumers.
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