Narrated by Payal Introduction to Retail Introduction Look

Narrated by Payal Introduction to Retail

Introduction Look at the logos of some of the leading organizations across the world. What do you think is common among the companies shown? All the companies whose logos have been shown are ‘retailers’.

Introduction Thus, each one of the companies shown sells directly to the final consumers. They also render services that are incidental to the sale of such goods. All these retailers are establishments that are engaged in selling merchandise for personal or household consumption.

Introduction Thus, retailers comprise street vendors, local grocery stores, supermarkets, food joints, saloons, airlines, automobile showrooms, internet kiosks, home appliance showrooms, direct marketers, vending machine operators, etc. Hence, a retailer is any business establishment that directs its marketing efforts towards the end users for the purpose of selling goods and services.

Introduction Let us look at the various aspects of retail management in detail. Therefore, like any business, it is very important to manage a retail business and its various components. In fact, the retail industry is one of the fastest growing and biggest sources of employment across the globe.

Definition Now, let us look at a few definitions that will be useful while you study retail management. Retailing Retailer Wholesaling Wholesaler Let us look at each in detail.

Definition Now, let us look at a few definitions that will be useful while you study retail management. The word ‘Retailing’ is derived from the Retailing Retailer Wholesaling Wholesaler French verb ‘retailer’, which means, "to cut a piece off. ” Retailing is defined as all business activities that are involved in selling goods or services directly to the final consumers for their personal, family or household and non-business use. Whereas, from a marketers point of view, retailing is defined as a set of marketing activities that are designed to provide satisfaction to the end consumer and profitably maintain the customer base by continuous quality improvements across all areas concerned with selling goods and services.

Definition Now, let us look at a few definitions that will be useful while you study retail management. Retailing Retailer Wholesaling Wholesaler A retailer is any business establishment that directs its marketing efforts in selling merchandise for personal or household consumption towards the end users for the purpose of selling goods and services. Hence, an organization qualifies to be a retailer only when it derives a major chunk of its revenues from its transactions with end users. Thus, a seller is said to have conducted a retail transaction when he sells goods to the end customer.

Definition Now, let us look at a few definitions that will be useful while you study retail management. Retailing Retailer Wholesaling Wholesaler Wholesaling includes all activities that involve selling goods and services to those buying for resale or business use. Thus, a wholesale transaction is conducted when the seller sells goods to a business concern.

Definition Now, let us look at a few definitions that will be useful while you study retail management. Retailing Retailer Wholesaling Wholesaler is a firm that is engaged primarily in wholesaling activity of selling goods and services to those buying for resale or business use.

Objective • Explain What is Retail Management • Describe the Benefits of Retailing • Explain the Retail Selling Process • Explain the Classification of Retailers • Explain the Components of Retailing Concept • Explain the Steps of Retail Strategy Planning • Explain What is Franchising • Explain What is Merchandising • Explain What is Visual Merchandising • Describe the Importance of Location in Retailing • Explain the Types of Retail Location • Explain What is a Private Label • Explain the Process of Creation of Private Label • List the Myths about Careers in Retailing • List the Tips for Success in Retailing

What is Retail Management? es i t i v i t ac end s s o e t n s i bus vice l r l e a s s d , or lude oods an y c l i n i m g g , fa lin f Retai d in selling r personal process o e e ei involv ers for th refore, th usiness is ail t b m he consu old use. T y retailing ’. Thus, ‘Re f a o h t n g e n a s n e f i u o g m o t a e h f en an ag o n m m s a e f t g c o M a e l man as ‘Retai e process all its asp h n s know ement’ is t ch include ce etc. i g n Mana usiness wh maintena b s, retail operation p, set-u

Benefits of Retailing • Benefits to Customers Breaking Bulk : One of the major benefits that retailers pass to their customers is through their act as buying agents. Retailers perform For on consumers or customers, the retailers activity ‘breakingthat bulk’. This isthe because variousofactivities increase value of goods and services that are then retailers buysold goods in bulk ultimately to the endfrom consumer. The various activities performed by the manufactures. They then divide retailers that ultimately benefitthe thebulk customers are as follows: goods • into. Breaking smaller saleable units as per the Bulk consumption patterns of the end consumer. • Providing Assortment • Holding Inventory • Providing Services • Providing Information Let us look at each activity in detail.

Retail Selling Process The following are the steps involved in the ‘Retail Selling Process’: Acquiring Product/Merchandise Knowledge Studying the Customer Approaching the Customer Understanding the Need of Customer Presenting the Merchandise Overcoming Resistance Suggestive Selling Closing the Sale

Classification of Retailers are classified by: • Amount of Service • Product Lines • Relative Prices • Organizational Approach Let us look at each in detail.

Components of Retailing Concept The following are the key concepts involved in retailing: Customer Orientation Coordinated Effort Retailing Concept Value-driven Goal Oriented Retail Strategy

Steps of Retail Strategy Planning The overall plan that guides the functioning and operation of a retail firm is known as the ‘Retail Strategy’. Hence, retail strategy influences the retail firm’s business activities and its response to market forces, such as competition and economy.

What is Franchising? Franchising involves a contractual arrangement between a franchisor and a retail franchisee. The franchisor may be a manufacturer, wholesaler, or service sponsor. A franchise or the contractual agreement allows the franchisee to conduct business under a established name and according to a given pattern of business.

What is Visual Merchandising? There are several aspects to be taken into consideration for visual merchandising such as: SKU (Stock Keeping Unit) Planning Store Windows Floor Displays Signs Space Design Fixtures & Hardware Props & Mannequins

Importance of Location in Retailing • One of the most important aspects in Retailing is ‘location’. • It is one of the major factors that decides the success or failure of a retail business venture. • Location is crucial to the success of a retail store as it conveys a fair the image of a retail store. • Location is one of the important aspects to be considered in developing the retail strategy.

Types of Retail Location The following are the major types of retail locations chosen for retail stores: Freestanding/Isolated Store Part of a Business District Part of a Shopping Centre Let us look at each in detail.

Private Label A retailer is said to be selling a ‘Private Label’ or ‘Selling Own Label/Brand’ when he decides to sell products or a line of merchandise which is owned, controlled, merchandised and sold by the retailer in his own store/chain of stores. Therefore, a Private Label is a brand name or label which can simply be the store’s name or a name created exclusively by that store.

Process of Creation of Private Label The following are the key steps in the process of creation of a private label: Performance Measurement Identification of the Need for a Private Label Marketing Let’s look at each in detail. Decision to Make or Buy the Product Placing the Order and Allocating the Goods

Did You Know? Careers in retailing are not just limited to ‘sales’ and ‘customer service’. There are many specializations available in the retail industry from which you can choose as you move up in your career. Hence, you can choose to specialize in areas like: • Buying • Pricing • Merchandising • Marketing • Customer Service • Personnel • Training • Operations and so on

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