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Retail Management: Prof. Raghavendran.V
Retail Management: Prof. Raghavendran.V
Retail Management: Prof. Raghavendran.V
Prof. Raghavendran.V
Introduction
By Prof. Raghavendran.V
Retail management The various processes which help the customers to procure the desired merchandise from the retail stores for their end use refer to retail management. Retail management includes all the steps required to bring the customers into the store and fulfil their buying needs. Retail management makes shopping a pleasurable experience and ensures the customers leave the store with a smile. In simpler words, retail management helps customers shop without any difficulty.
By Prof. Raghavendran.V
RM
Retail is derived word from Retaillier, which means to cut of a piece or to break bulk. Therefore, a retailer may be defined as a dealer or trader who sells goods in small quantities. Thus retailing is final distribution of merchandise, for consumption by the end consumers.
By Prof. Raghavendran.V
Functions of RM
From the customers point of view, the retailer serves him by providing the goods that he needs, in the required assortment, at the required place and time. From an economic standpoint, the role of a retailer is to provide real added value or utility to the customers. This comes from four different prospective:
By Prof. Raghavendran.V
Functions of RM ( Utility)
1) First utility is form of a product 2) Second in form of time utility 3) Third in form of place utility & 4) Last in form of ownership utility is created.
By Prof. Raghavendran.V
Characteristics of RM
1. Direct End-User Interaction 2. Platform for Promotions & POP displays 3. Lower unit sales 4. Retail location critical 5. Services as important as Core Products 6. Large number of Retailers to meet geographical coverage and population density
By Prof. Raghavendran.V
In
India,
increase Power of
in
Disposable
income, Class
Purchasing Retail
growing
Middle
By Prof. Raghavendran.V
By Prof. Raghavendran.V
By Prof. Raghavendran.V
Food Services
Food groceries
Catering Service
Dry Groceries
restaurants
Others
By Prof. Raghavendran.V
By Prof. Raghavendran.V
By Prof. Raghavendran.V
FDI in retail
In India FDI retail is not allowed. An international retailer can enter the Indian retail market through any of the following methods: Hi-Tech Items Social sector items Medical & diagnostic items Manufactured with technology provided by the foreign collaborator. Two- year test marketing (Simultaneously commencement of manufacturing)
By Prof. Raghavendran.V
FDI
Foreign owned companies cannot own and run retail shops to sell other category of goods to consumers in INDIA. Some popular entry options for foreign players are:
Franchising operations Joint venture Manufacturing facility in India Distribution offices
By Prof. Raghavendran.V
By Prof. Raghavendran.V
Substitutes
Prof. Raghavendran.V
Four theories of evolution are: 1. Wheel of Retailing Cyclical 2. Accordion theory Theories 3. Dialectic Process Evolutionary 4. Natural selection Theories
Cyclical: Begin with one state and return to that state at some time in future Evolutionary: Changes similar to biological evolution
Prof. Raghavendran.V
Wheel of Retailing/ (Cyclical Theory) Wheel represents phases through which some types of Retailers pass:
Retailers attract customers low price, low service Expand market More expensive merchandise, More services, open More convenient locations. Trading up process increases costs & price of their merchandise, creating opportunities for new low price retailers to enter e.g. Discount stores & category specialists Some Retailers dont begin as low price, low service entrants, e.g. Upscale fashion specialty stores.
Prof. Raghavendran.V
Innovative retailer Low status & price, minimum service, poor facilities, limited product offering
Traditional retailer Elaborate facilities Higher rent More locations higher prices, extended product offerings
Prof. Raghavendran.V
THE ACCORDION THEORY Retailers fluctuate from strategy of offering wide merchandise with shallow assortment to offering limited categories with deep assortment
In rural markets, Retailers sell many categories under one roof: shoes, cosmetics, foods, cloth, medicines. However the assortment is shallow and customers have limited choice. Department stores have both width and depth of merchandise Specialty stores carry special categories with deep selection
Prof. Raghavendran.V
Prof. Raghavendran.V
Prof. Raghavendran.V
NATURAL SELECTION/ ENVIRONMENTAL THEORY Those Retail Institutions Succeed which adapt to changes in customers, Technology, competition and legal environment.
Department stores have tried to combat specialty stores by opening specialty counters within the stores. Interest in physical fitness and increased number of women in workforce have made salad bars in grocery stores successful.
Prof. Raghavendran.V
By Prof. Raghavendran.V
By Prof. Raghavendran.V
Service retailing
By Prof. Raghavendran.V
Careers in Retailing
It is people centric industry, which can be exposed to multi-disciplinary and skills. It offers many choices in terms as career.
1. 2. 3. 4. 5. 6. 7. 8. 9. Buying and Merchandising Marketing Store operations Sales Finance Human Resources Technology and E-commerce Visual Merchandising Supply Chain Management & Logistics
By Prof. Raghavendran.V