Introduction to Retail
Points:- Objectives
- Defining retail
- The functions of a retailer
- The marketing – retail equation
- The significance of retail as an industry
- The new role of the retailer
- The global retail scenario
- Key issues facing global retailers
- Retail as a career
- Retail in India
What is retail?
Retail – derived from the French word “retaillier”, which means to break bulk.
Retailing is the last stage in the movement of goods and services to the consumer.
Retail therefore consists of all activities involved in the marketing of goods and services directly to the consumers for their personal, family or household use.
- Form utility
- Time utility
- Place utility
- Ownership utility
The Marketing – Retail Equation
- Proximity to the customer
- The Rise of consumerism
- Introduction of the Private Label
- Technology
Challenges facing Global Retailers
- The emergence of new markets
- The empowered consumer
- Technology enabled efficiencies
Retail as a career
- Buying & Merchandising
- Marketing
- Store Operations
- Sales
- Finance
- Human Resources
- Technology & e-commerce
- Visual Merchandising
- Supply Chain Management & Logistics
Retail in India
Objectives
- To understand the evolution of retail in India
- To understand the Key sectors in Indian retail
- To understand the factors affecting the growth of retail in India
- To understand the aspect of FDI in retail
- To gain an understanding of the challenges faced by Indian retail
The evolution of Retail in India
- Drivers of Retail Change in India
- Changing Income Profiles
- Diminishing difference between rural and urban India
- Changes in consumption patterns
- The emergence of a young earning population
The Size of Retail in India :
The Organised Retail Pie:
Size of the Organised Retail Market:
FDI in Retail
“Foreign direct investment reflects the objective of obtaining a lasting interest by a resident entity in one economy (‘‘direct investor’’) in an entity resident in an economy other than that of the investor (‘‘direct investment enterprise’’). The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence on the management of the enterprise. Direct investment involves both the initial transaction between the two entities and all subsequent capital transactions between them and among affiliated enterprises, both incorporated and unincorporated." - IMF-OECD Glossary of FDI terms and definitions
Challenges to Retail Development in India
- Lack of industry status
- High cost of real estate
- High stamp duties
- Lack of adequate infrastructure
- Multiple and complex taxation system
