What is Retailing

Retailing includes all the activities involved in selling

goods or services directly to final consumers for
personal, non-business use.

Retailer is a business enterprise that sells goods or
services directly to the end customers for personal, non-
business use.
Changing Retailing Scenario in India
Entry of big business groups in retailing.
Increasing share of organized retailers.
No longer a poor element of distribution network
dictated by manufacturers.
Shift from Transactional Marketing approach to
Relational Marketing approach.
Emergence of new retail formats.
Expansion of retail chains.
Availability of organized infrastructure.

Retail Segments INDIAN RETAIL MARKET 2006*
India Retail Value
(Rs.Crore)
Organized
Retail
(Rs.Crore)
% Organized in
2006
Clothing, Textiles & Fashion
Accessories
113,500 21,400 18.9%
Jewellery 60,200 1,680 2.8%
Watches 3,950 1,800 45.6%
Footwear 13,750 5,200 37.8%
Health & Beauty Care Services 3,800 400 10.6%
Pharmaceuticals 42,200 1,100 2.6%
Consumer Durables, Home
Appliances/equipments
48,100 5,000 10.4%
Mobile handsets. Accessories &
Services
21,650 1,740 8.0%
Furnishings, Utensils, Furniture-
Home & Office
40,650 3,700 9.1%
Food & Grocery 743,900 5,800 0.8%
Catering Services (F & B) 57,000 3,940 6.9%
Books, Music & Gifts 13,300 1,680 12.6%
Entertainment 38,000 1,560 4.1%
TOTAL 1,200,000 55,000 4.6%
Functions of retailers
Retailers provides important functions that increase the value of the
products they sell to consumers and facilitate the distribution of
those products for those who produce them.

Important functions of retailers are:
Providing an assortment of products and services.
Supermarkets like Reliance Fresh carry around 20,000-30,000 SKUs, While
Hypermarkets like Big Bazaar carry around 2,00,000 SKUs
Breaking bulk
Holding inventory
Providing customer service.