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18 views3 pages

Explain Each Topics One by One - Concept, Definiti...

Uploaded by

kkptdr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Concepts in Retailing:

1. Concept and Definition of Retailing:

Retailing is the process of selling products directly to consumers for their personal or household
use. Retailers act as intermediaries between manufacturers and wholesalers, and the final
consumers. They buy products in bulk at wholesale prices and sell them in smaller quantities at
a markup to earn a profit.

Functions of Retailing:

● Breaking Bulk: Retailers buy in bulk and sell in smaller quantities, making products more
accessible to consumers.
● Assortment: Retailers offer a variety of products in one place, allowing consumers to find
what they need conveniently.
● Holding Inventory: Retailers maintain stock to meet consumer demand and avoid stockouts.
● Promotion and Selling: Retailers inform consumers about products through advertising,
displays, and sales personnel.
● Customer Service: Retailers provide customer service such as helping with product
selection, answering questions, and facilitating returns.

2. Evolution of Retailing:

Retailing has evolved significantly over time. Here's a simplified breakdown:

● Early Retailing: Barter system, small shops, and marketplaces.


● Industrial Revolution: Rise of department stores and mail-order catalogs.
● 20th Century: Development of supermarkets, shopping malls, and chain stores.
● 21st Century: Rise of e-commerce, mobile shopping, and omnichannel retailing.

3. Global Retailing Scenario:

The global retail landscape is diverse, with developed economies having a larger presence of
organized retail formats like supermarkets and malls. Developing economies are witnessing a
rise in modern retail formats alongside traditional formats. E-commerce is a growing force
globally, impacting how consumers shop.

4. Growth of Retailing in India:

India's retail sector is witnessing significant growth due to factors like:

● Increasing disposable income


● Growing urbanization
● Changing consumer preferences
● Government initiatives

5. Organized Retailing in India:


Organized retailing refers to structured retail businesses with standardized operations and
centralized management. Here are the key drivers for its growth:

● Economies of Scale: Bulk buying allows for lower prices for consumers.
● Wider Product Selection: Offers a variety of products under one roof.
● Convenience: Shopping malls and supermarkets provide a pleasant shopping experience.
● Evolving Consumer Preferences: Caters to the growing demand for modern shopping
experiences.

Future Prospects:

Organized retail is expected to continue growing in India, driven by factors like:

● Increasing internet penetration


● Growth of e-commerce
● Tier 2 and 3 city expansion

Retail Formats:
Store Formats:

● Supermarket: Large self-service stores offering a wide variety of food, beverages, and
household products.
● Department Store: Large stores carrying a wide range of products under different
departments like clothing, electronics, and home goods.
● Hypermarket: Even larger stores than supermarkets, often with additional offerings like
apparel, electronics, and entertainment options.
● Mall: A collection of interconnected retail stores, often anchored by department stores,
offering a variety of shopping, dining, and entertainment options.
● Discount Store: Offers a limited variety of products at significantly lower prices.
● Category Killers: Retailers specializing in a particular product category, offering a deep
selection at competitive prices (e.g., electronics stores).
● Kiosks: Small, often temporary, retail outlets located within malls or high-traffic areas, selling
a limited range of products.
● Convenience Store: Small stores offering a limited selection of everyday essentials like
groceries, snacks, and beverages, with extended operating hours.
● Specialty Store: Focuses on a specific product category and offers in-depth knowledge and
a curated selection (e.g., jewelry stores).

Non-Store Formats:

● E-retailing: Online retail where consumers browse and purchase products through websites
and mobile apps.
● Direct Selling: Selling products directly to consumers through a network of independent
distributors, often via home demonstrations or social gatherings.
● Television Home Shopping: Selling products directly to consumers through television
broadcasts, allowing for immediate purchase via phone or online.
● Vending Machine Retailing: Automated machines dispensing products for purchase, often
located in high-traffic areas.

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