SESSION I

Introduction to Retailing
Evolution
Functions
Importance
 INTRODUCTION
Retailing - Largest Industry
Biggest source of employment

TATA (WEST SIDE)

RAHEJAS ( SHOPPERS STOP, GLOBUS)
ITC ( WILLS, LIFESTYLE)

According to Management Consultancy the worth

of Indian retail Industry is Rs.8 crore -2005 with
a increase of 20% each year.
The word retail has its origin in French word retaillier
and means “to cut a piece’’ or “to break bulk’.

Definition: “Retailing is the sale of goods and services

to the ultimate consumer for personal, family or
household use.”

According to Kotler: “Retailing includes all the

activities involved in selling goods or services to
the final consumers for personal, non business
use”
Retailing involves:

1. Understanding the needs of consumers

2. Developing good assortment of merchandise
3. Displaying the merchandise in an effective
manner so that consumers find it easy and
attractive to buy
 CHANNEL OF DISTRIBUTION

Manufacturer wholesaler retailer Final consumer

 Retailing is responsible for matching final
consumer demand with supplies of different marketers.

Retailing is high intensity competition industry, The

reasons for its popularity lie in its ability to provide easier
access to variety of products, freedom of choice and
many services to
consumers.

The Indian retail is dotted by traditionally market

place called bazaars or haats comprises of numerous
small and large shops,selling different or similar
merchandise
 Functions / Benefits of Retailing
From the customer point of view, the retailer
serves him byproviding the goods that he needs
in the required assortment,at the required place
and time.
Breaking bulk
Providing Assortment
Holding Inventory
Providing service
Providing Information


 Benefits to Manufacturers and
wholesalers

As a channel for delivering

As a sensory organs of manufacturers
Share some of the risks of the manufacturer
Physical Obsolescence
Technological obsolescence
Fashion obsolescence
Economic stand point - Four different perspectives

Form:
First is utility regarding the form of a product that is
acceptable to the customer.
The retailer does not supply raw material, but rather offers
finished goods and services in a form that the customers
want.The retailer performs the function of sorting the goods
And providing us with an assortment of product in various
categories.

2. Time: He cerates Time utility by keeping the store open

when the consumers prefer to shop.preferable shopping
hours.
Place:By being available at a convenient location, he creates
place utility

Ownership

Retailers are able to balance the demands of both sides, by

collecting an assortment of goods from different sources,
buying them in sufficiently large quantities and selling them to
consumers in small units
 Emerging
Formats
Established Exclusive
formats retail outlets
Traditional
Kirana shops Hypermarket
Formats
Convenience/ Internal retail
Itinerant
department Malls /
Salesman
stores Specialty
Haats
PDS/ Malls
Melas
fair price shops Multiplexes
Mandis
Pan/ Beedi Fast food
shops outlets
Service
galleries
 evolution
Early 80s – Unstructured and fragmented market /
shops-vegetable vendors,sole clothing centers

Organised retailing – Bombay Dyeing

Liberalisation-MNC
Domestic Retailers -Cotton world
Economic growth -4 th largest
Urbanisation -10 6/4
Consumerism
Brand profusion
Availabilty of real estates