RETAIL MANAGEMENT

ASSIGNMENT -1

RETAIL MANAGEMENT

SUBMITTED BY:DEEPIKA SHARMA 014 (4TH SEM) MRCE

SUBMITTED TO:Mrs. Yogita Sharma

RETAIL MANAGEMENT

RETAIL MANAGEMENT
RETAILING:The distribution of consumer products begins with the producer and ends at the ultimate consumer. Between the producer and the consumer there is a middleman the retailer, who links the producers and the ultimate consumers. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. It is responsible for matching individual demands of the consumer with supplies of all the manufacturers. The word retail is derived from the French work retailer, meaning to cut a piece off or to break bulk

Retail management:Retail management is the sale by seller in small quantities to customer not for resale :--The process of bringing the ultimate user to the main producer, through a series of stages, where retailing is the last one. It is not limited to quantities, but limited to the exact requirement of the ultimate user. Therefore, bringing about operational efficiency at this last stage, and creating an environment so compelling that he looks nowhere else, is "Retail Management". RM- is an art, and necessitates employing several tools of logistics management for a complete end user satisfaction. RM - is getting to know the final user on behalf of the producer. RM - is a process of facilitation.

ADVANCED RETAIL MANAGEMENT:-Managing a retail business becomes more demanding year-by-year as trading conditions create turbulence and unforeseen demands. The global and international communications links and networks make it much easier to pick out both the star performers as well as those with tarnished images.

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The Changing Ways of Retail Business: Shifting the focus towards customers requirements

Combining products and services Standard vs. tailor-made products and services Sales by the whole organisation (not just by salespersons)

ISSUES IN RETAILING:y y y How can we best serve are customers while earning a fair profit? How can we stand out in a highly competitive environment where consumers have too many choices.? How can we grow our business while retaining a core of loyal customers?

CHANNEL OF DISTRIBUTION:-

MANUFACTURER

WHOLESALERS

RETAILERS

FINAL CONSUMER

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CHARACTERISTICS AFFECTING RETAILERS:-

SMALL AVERAGE SALE

RETAILERS'S STRATEGY

IMPULSE PURCHASE

POPULARITY OF STORES

Future Challenges:- The one step ahead attitude

Seeking out competitive advantage/s Establish unique selling points Identifying competition for customers scarce resources

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PROS & CONS OF RETAILING

Pros of Retailing:1. Holiday sales figures 2. Research and assistance from trade associations 3. Satisfaction of building something from the ground up 4. Attending trade shows and buying events 5. Meeting new people 6. Having on hand exactly what your customers want 7. Cash transactions 8. You get to set all the rules 9. Selling merchandise you love and have an interest in 10. Creating a pleasant atmosphere and receiving compliments about your shop 11. Hiring and training wonderful employees

Cons of Retailing:-

1. January sales figures 2. Large cash investment at startup 3. Long hours and little (or no) pay to start 4. Only vacation is attending trade shows and buying events 5. Meeting difficult customers 6. Not having what your customers want 7. Bounced checks 8. Having to do it all (marketing, buying, bookkeeping) yourself 9. Too little profit on the merchandise you love to sell 10. Finding damaged merchandise, empty packages and open food on your shelves 11. Firing and disciplining lazy or rude employees

RETAIL MANAGEMENT Advantages: Having a retail outlet means you have a physical presence in that area. This enable your business to be easily identify by your customers.  It also helps in building trust with your customers by having a physical shop.  You can draw on the passing crowd. With high level of visibility, regular shoppers are able to recognized your outlet after a few weeks even if you are new.  Regular shoppers frequent that area twice a week. In a month, they would have seen your shop eight to ten times. By then, they will know your presence there.

 It is a cash business. That means all customers pay cash or credit card to purchase your products or services.  Unlike some businesses that uses 7 days or 30 days term. A cash business reduces the risks of bad debt. The sales process in retailing is much shorter and easier compared to other business.  Customer comes to shop, your staff serve them, customer decide to buy, pay up. The process is pretty straight forward.

Disadvantages:1. Setting up a retail outlet requires high capital cost. You have to purchase the inventories, set up the shelves, renovate the shop etc. The high capital outlay also means the business is in higher risk. 2. Retailing belongs to a much more passive kind of business. Instead of going out to get business, you basically stay in the shop waiting for customers. 3. You can't do out and out sales that is more active in sourcing your customers.

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4. It is not flexible to some changes that may take place in the market. For example, the neighbourhood can go into decline, parking restrictions might be imposed, your market can 'move away', etc.

5. Consider the advantages and disadvantages to make the best decision for your distribution channel.

RETAIL INDUSTRY IN INDIA:-

Retail is indias largest industry. It accounts for over 10 per cent of the India's GDP and around eight per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016. The organized retail industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business giants such as Reliance, Bharti, Birla and others are now entering into retail sector.

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A number of factors are driving India's retail market. These include:

 increase in the young working population,  hefty pay-packets,  nuclear families in urban areas,  increasing working-women population,  increase in disposable income and customer aspiration,  increase in expenditure for luxury items,  and low share of organized retailing.  India's retail boom is manifested in sprawling shopping centers,  multiplex- malls and huge complexes that offer shopping,


entertainment and food all under one roof.

THE EMERGING SECTORS IN RETAILING:

Retailing, one of the largest sectors in the global economy, is going through a transition phase not only in India but the world over. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This 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, Apna Bazaar), convenience stores (Convenio, HP Speedmart) and fastfood chains.

RETAIL MANAGEMENT Growth of Retail Companies in India

Growth of Retail Companies in India exhibits the boom in the retail industry in India over the years. The increase in the purchasing power of the Indian middle classes and the influx of the foreign investments have been encouraging in the Growth of Retail Companies in India.

Growth of Retail Companies in India :

Growth of Retail Companies in India is still not yet in a matured stage with great potentials within this sector still to be explored. Apart from the retail company like Nilgiri's of Bangalore, most of the retail companies are sections of other industries that have stepped in the retail sector for a better business. The Growth of Retail Companies in India is most pronounced in the metro cities of India, however the smaller towns are also not lagging behind in this. The retail companies are not only targeting the four metros in India but also is considering the second graded upcoming cities like Ahmedabad, Baroda, Chandigarh, Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and others. The South Indian zone have adopted the process of shopping in the supermarkets for their daily requirements and this has also been influencing other cities as well where many hypermarkets are coming up day to day.

Reasons for the fast Growth of Retail Companies in India:

The retail companies are found to be rising in India at a remarkable speed with the years and this have brought a revolutionary change in the shopping attitude of the Indian customers. The Growth of Retail Companies in India is facilitated by certain factors like y existing Indian middle classes with an increased purchasing power y rise of upcoming business sectors like the IT and engineering firms y change in the taste and attitude of the Indians y effect of globalization y Heavy influx of FDI in the retail sectors in India.

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Some Retail chain companies in India:y

Big Bazar

y Giants y Shoprite y Lifestyle y Pantaloons

y Landmark y Indus Fila y Fame Adlabs

y Inox India y PVR Cinemas

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