Retailing Retailing encompasses the business activities involved in
Retailing �Retailing encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale to the final consumer. �Retailing also involves sale of services �It need not be done in stores �Retail derived from the French word ‘Retaillier’ meaning to cut a piece off or to break the bulk
Retail Industry is changing To Today’s Retailer Mom and Pop Store
Retailing
Retailer’s role in distribution channel �Final participant in the channel �satisfy consumer needs by offering the right product at the right place and at the right price �Links manufacturers with consumers �Some manufacturers do direct retailing-DELL �Some retail chains function as both wholesaler as well as retailer- Home Depot �Some are pure retailers-More �Most distribution channels have some vertical integration- Backward or Forward
A typical Channel of Distribution Manufacturer Retailer Wholesaler Final Consumer
The Retailer’s role in sorting process
Functions performed by Retailers �Providing an Assortment of goods and services �Breaking Bulk �Holding Inventory �Providing Services �Increasing the value of products and services
Functions performed by Retailers Providing Assortment of goods and services �Customers can choose from wide variety of merchandise (brands, designs, sizes, colors, and prices in one shop) �location �Supermarkets-20, 000 -30, 000 different items of more than 500 companies �Specialization in assortment �Eg. , Super markets-assortment of food, health, beauty care and household products
Functions performed by Retailers Breaking Bulk �Offering products in smaller quantities �Offer tailored to individual customer’s /households consumption pattern �Cost effective for manufacturers �Cost effective for customers Holding Inventory �In user friendly sizes �Reduction in consumer’s cost of stocking products �Especially beneficial in case of perishable goods.
Functions performed by Retailers Providing Services �Credit facilities �Display of products �Trial and Test facility before purchase �Answer to customer queries in stores/through websites Increasing the value of products and services
How Retailers Add Value The value of the product and service increases as the retailer performs functions. Bicycle can be bought on credit or put on layaway Bicycle is featured on floor display Bicycle is offered in convenient locations in quantities of one Bicycle is developed in several styles Bicycle is developed at manufacturer
Significance of Retailing �Support for community- Value to communities and society �Retail Sales- happens at every facet of our life �Employment Opportunities – One of the largest inductries in terms of employment �Entrepreneurial Opportunities- Some of the world’s richest people are retailing entrepreneurs
Retailers are a Business Like Manufacturers Accounting Finance Marketing MIS Operations , Human Resources
Summary �Retailing provides considerable value to consumers while giving people opportunities for rewarding and challenging careers �The key to successful retailing is offering the right product, at the right price, in the right place, at the right time, and making a profit
Future Group � Kishore Biyani- -4000 crores turnover � Panthaloon-7 million square feet of retail space-over 1000 stores-presence in 53 cities-employment to over 25000 people. � Panthaloons � Big Bazaar � Food Bazaar � Central � Home Town � E Zone � Depot � Future Money � Future Bazaar. com
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