Retailing is defined as a definite 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. Retail is India's largest industry, accounting for over 10% of the country's GDP and around eight per cent of the employment. The scenario has changed after the LPG revolution. In late 90's, government of India tried to create the bubble by allowing the Global players in the Retail Arena. The Government allows 100 per cent foreign direct investment (FDI) in cash and carry through the automatic route and 51 per cent in single brand.
Retail is amongst the fastest growing sectors in the country. India ranks 1st, ahead of Russia, in terms of emerging markets potential in retail and is deemed a ‘Priority 1' market for international retail.
[...] sector, retail as an industry in India is coming alive. A small share of only is generating 30% growth on y-o-y basis. DRIVERS OF ORGANIZED RETAILING: 1. Favorable demographics 2. Changing attitude towards spending 3. Shifting customer preference towards organized retailers 4. Increasing/easier availability of quality mall space The organized retail sector is driven by the factors like changing lifestyle, income growth and favorable demographic pattern. And it is said, that organized retailing in India is evolving as a star, and three-to-four years down the-line will shine on the Indian markets. [...]
[...] Today the organized retail has taken the footprint in cities across the country but very few at negligible amount. There are many reasons but infrastructure a facility, target customers and government policies interrupts while deciding location. But now many retailers are going in rural areas by different distribution channels that we will see in next point. E.g. UP Government banned the retail stores Distribution Channel:- After choosing the location the second important decision is to decide the distribution channel. As the retailer's main objective is to reduce the price of their products offering, it can be achieved only by reducing the intermediates in the distribution channel. [...]
[...] Setting the right price can influence the quantities of various products or services that consumers will buy, which in turn determines the total revenue and the profit of the retail store, in short, the right price for the product or service is the price that the consume is willing to pay for it. A retailer needs to understand the price sensitivity of customers that form his target segment. The price sensitivity of customers is based on various personal, social or geographical factors and presents a major challenge for retailers while setting prices. [...]
[...] Free samples might be mailed, delivered door-to-door, placed in bins in retail stores, or attached to or inserted in another package Coupons are certificates which, when presented for redemption at a retail store, entitle the bearer to a stated savings on the purchase of a specific product Money-refund offers are propositions in which a sum of money /occasionally the full purchase price) is returned by mail to participants who mail in proof of purchase such as a box top Price-off deals offer consumers a certain amount of money off the regular price of a product, and state the amount on the product's label Premiums are items of merchandise offered free or at a low cost as a bonus to purchasers of a particular product Contests are also major consumer-oriented promotion devices. [...]
[...] Malls and lifestyle stores have begun appearing in metros and tier II and tier III cities and towns introducing the Indian consumer to shopping experience like never before.' Following table depicts how players are downsizing their outlets to reach more and more customers: Retailer Original formats Later Formats RPG Retail Supermarket (Foodworld) Hypermarket (Spencer's)Specialty Store (Health and Glow) Piramal's Department Store (Piramyd Discount Store (TruMart) Megastore) Pantaloon Small format outlets Supermarket (Food Bazaar) Retail (Shoppe) Hypermarket (Big Bazaar) Mall Department Store (Central) (Pantaloon) K Raheja Department Store Supermarket (TBA) Group (shopper's stop) Hypermarket (TBA) Specialty Store (Crossword) Tata/ Trent Department Store Hypermarket (Star India Bazaar) (Westside) Landmark Department Store Hypermarket (TBA) Group (Lifestyle) Others Discount Store (Subhiksha, Margin Free, Apna Bazaar), Supermarket (Nilgiri's), Specialty Electronics SWOT OF THE RETAIL SECTOR STRENGTH: 1. [...]
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