RETAILING

MANAGEMENT
UNIT - 1

PRESENTED BY

Dr. BALA SRI PRASAD K

B.Sc(KU), M.B.A(OU), NET(UGC), Ph.D(MGU)
ASSISTANT PROFESSOR IN MANAGEMENT
VISHWA VISHWANI INSTITUTIONS, HYDERABAD.
 Unit – I: Introduction
Overview of Retailing
Meaning, Nature, Scope of Retailing
Characteristics and Functions of Retailing
Retail Management
Marketing concepts applied to Retailing
Retailing as Career
Trends in Retailing
Modern Retail Formats
E-Tailing
 RETAILING:

 Retailing is defined as a set of activities or steps used to sell a product

or a service to consumers for their personal or family use.

 It also includes the sale of services such as those offered at a

restaurant, parlor, or by car rental agencies.

 Retailing process involves buying in bulk quantities and selling in

small quantities.
Distribution Channel (Channel members, or marketing
intermediaries):

Example: Chocolate producer like Cadbury’s will use a number of

distribution channels for its confectionery, which involve members such
as agents, wholesalers, supermarkets, convenience stores, petrol stations,
vending machine operators and so on.
https://www.youtube.com/watch?v=
NHrQkvldJ-o
 Nature of Retailing
 The nature of retailing refers to the characteristics, dynamics, and activities
involved in the process of selling goods and services to consumers for
personal or household use.
 Retailing plays a crucial role in the distribution and marketing of products,
bridging the gap between manufacturers or producers and end consumers.
Here are some key aspects that define the nature of retailing:
1. Consumer Focus: Retailing revolves around meeting the needs, preferences,
and demands of consumers.
 Retailers strive to understand consumer behavior, preferences, and shopping
habits to offer products and services that align with their expectations and
lifestyle choices.
2. Product Assortment: Retailers curate and offer a diverse range of products
and services to cater to the varying needs and preferences of consumers.
 Retail assortments may include a wide selection of merchandise categories,
brands, sizes, styles, and price points to appeal to different customer
segments.
 Nature of Retailing contd….
3. Location and Accessibility: Retailers establish physical store locations,
online storefronts, or omnichannel platforms to make products accessible and
convenient for consumers to purchase.
 The location of retail outlets, store layout, signage, parking facilities, and
ease of access influence consumer traffic and shopping convenience.
4. Customer Experience: Retailers prioritize delivering positive customer
experiences by providing excellent service, personalized assistance, and
engaging interactions throughout the shopping journey.
 Customer service, product knowledge, staff professionalism, and ambiance
contribute to the overall shopping experience and customer satisfaction.
5. Merchandising and Presentation: Retailers employ merchandising
strategies to showcase products effectively, attract attention, and stimulate
purchase decisions.
 Visual merchandising, store layout, product displays, signage, packaging,
and promotions create an appealing and immersive shopping environment
that encourages browsing and impulse buying.
 Nature of Retailing contd….
6. Price and Value Proposition: Retailers use pricing strategies to position products
competitively in the market and communicate value to consumers.
 Pricing decisions consider factors such as product costs, competition, market
demand, perceived value, and pricing psychology to determine optimal pricing
structures, discounts, promotions, and markdowns.
7. Supply Chain and Logistics: Retailers manage complex supply chains and logistics
networks to procure, transport, and distribute products efficiently from suppliers to
stores or fulfillment centers.
 Inventory management, warehousing, transportation, and order fulfillment processes
are critical to ensuring product availability, inventory turnover, and on-time delivery
to meet customer demand.
8. Technology and Innovation: Retailers leverage technology and innovation to
enhance operational efficiency, streamline processes, and deliver seamless
omnichannel experiences.
 Retail technologies such as point-of-sale (POS) systems, inventory management
software, e-commerce platforms, mobile apps, RFID (Radio-Frequency
Identification), AI (Artificial Intelligence), and data analytics empower retailers to
optimize operations, personalize marketing, and engage customers across digital and
physical channels.
 Nature of Retailing contd….
9. Competition and Market Dynamics: Retailing operates within a competitive
marketplace characterized by rivalry among retailers, changing consumer trends,
technological advancements, economic factors, and regulatory influences.
 Retailers must adapt to market dynamics, anticipate consumer needs, and differentiate
themselves through unique value propositions, branding, product offerings, and customer
service to remain competitive and sustainable.
10. Ethical and Social Responsibility: Retailers uphold ethical and social responsibility
standards in their business practices, including sourcing ethically produced products,
promoting sustainability, supporting fair labor practices, and contributing to community
initiatives.
 Corporate social responsibility (CSR) initiatives, environmental sustainability efforts, and
ethical business conduct enhance brand reputation, foster customer loyalty, and contribute to
long-term business success.

 Overall, the nature of retailing encompasses a dynamic and multifaceted

ecosystem driven by consumer-centric strategies, product offerings, customer
experiences, technology adoption, and competitive dynamics.
 Retailers must continually evolve and adapt to changing market trends, consumer
preferences, and industry disruptions to thrive in an ever-evolving retail
landscape.
 Scope of Retailing
1. Merchandising
2. Marketing
3. Store Operations
4. Sales
5. Human Resources Management
6. Accounting and Finance
7. Technology and E-Commerce
8. Supply of Information
9. Visual Merchandising
10. Supply Chain Management and Logistics
Characteristics of Retailing
1. It offers direct interaction with the customers

2. Small quantity makes large quantity

3. Customer service

4. Point of sales promotion

5. Different forms

6. Location and Layout being Important

7. Big Employment Provider

 Functions of Retailing:
1) Delivery of the goods to the end consumer

2) Is an essential part of the distribution chain

3) Finances the wholesaler

4) Stores the goods according to market requirement

5) Lends a hand in manufacturer’s marketing initiative

6) Assumes storage/Warehousing of Products for sale at appropriate

time.
7) Extends credit facilities to the consumers and assumes credit risk

8) Offers wide variety of customers and enticing price range in a product

line

9) Provides convenience in shopping

10) Offers after sale services, differentiated packaging, giving more

information about the use of the product

11) Hears the voice of the market

12) Generating employment for masses

 History of Retailing In India
 In 2012, the country finally opened up the competition for Indian
retailers by allowing 100 percent brand ownership in single brand
retail (51 percent in multi brand retail).

Growth of retail sector

 The size of Indian retail has tripled over the last ten years to $1.1
trillion (from $354 billion in 2010).

 Since the relaxing of FDI norms, organized Brick and Mortar retailing
has been growing at more than 20 percent Y-o-Y. Contribution of
organized B & M retailing in the overall retail sector has also shot up
to 12 percent from 4 percent in 2009.

 However, this is still very less compared to developed economies,

where the overall organized retailing is more than 80 percent.
 India has now become a hotcake of retailing destination for local and
foreign brands.

 A $21 billion retailing opportunity around transit touch points, i.e.

airports, stations, bus-stops, etc., is to be realized in the next 10 years.

 The country is set to receive 65 million sq. ft of retail space in the

next three years.

 Modern retail story in India is getting written down in Tier-I cities

where consumers are going out in the market not just for the necessity
to dine and shop, but for the experience of it.

 The sector is expected to grow at a rate between 20 percent to 25

percent in the years to come, and there is a need for innovative
solutions to maintain the pace.
 India has 5th largest Retail market in the world.

 Even though modern trade is growing at 15 to 20% per annum, it

has a low organized retail penetration of just 8%.

 On 7 December 2012, the Federal Government of India allowed

51% FDI in multi-brand retail in India.

 A number of merger and acquisitions have begun in Indian retail

market. PWC estimates the multi-brand retail market to grow to
$220 billion by 2020.

 The Government has approved 51% FDI in multi-brand retail

and 100% FDI in single-brand retail under the automatic route,
which is expected to give a boost to Ease of Doing Business and
Make in India schemes.
 Retail Management
Retail management encompasses the process of running a retail business
efficiently and effectively to meet the needs and expectations of customers while
achieving the organization's goals and objectives.
It involves various activities, strategies, and decisions aimed at maximizing sales,
optimizing operations, and enhancing customer satisfaction.
Here's an overview of the nature of retail management:
1. Customer Focus: Retail management is inherently customer-centric, focusing on
understanding customer needs, preferences, and behaviors to provide products,
services, and experiences that meet or exceed their expectations.
Successful retailers invest in market research, customer analytics, and consumer
insights to segment their target audience, identify trends, and tailor their offerings
to specific customer segments.
2. Merchandising and Assortment Planning: Merchandising plays a crucial role
in retail management, involving the selection, sourcing, pricing, and presentation of
products to attract customers and drive sales.
Retailers develop assortment plans, product mixes, and inventory strategies based
on factors such as customer demand, seasonality, trends, and competitive dynamics
to optimize sales and profitability.
Retail Management contd..
3. Store Operations: Effective store operations are essential for retail success,
encompassing activities such as store layout and design, inventory management,
staffing, scheduling, customer service, and sales floor management.
Retail managers focus on optimizing store processes, workflows, and resources to
create a positive shopping environment, streamline operations, and maximize sales
opportunities.
4. Marketing and Promotion: Retailers utilize various marketing and promotional
strategies to attract customers, drive traffic to stores or websites, and stimulate sales.
This includes advertising, promotions, sales events, loyalty programs, discounts, and
social media marketing.
Retail managers develop marketing plans and campaigns to raise brand awareness,
generate demand, and engage customers across multiple channels.
5. Technology and Innovation: Technology plays a crucial role in modern retail
management, enabling retailers to enhance the customer experience, streamline
operations, and gain competitive advantages.
Retailers invest in point-of-sale (POS) systems, inventory management software,
customer relationship management (CRM) systems, e-commerce platforms, and
analytics tools to improve efficiency, decision-making, and agility in a rapidly evolving
retail landscape.
Retail Management contd..
6. Supply Chain Management: Supply chain management involves the coordination
and integration of activities across the supply chain, from sourcing raw materials to
delivering finished products to customers.
Retail managers work closely with suppliers, distributors, and logistics partners to
optimize supply chain processes, reduce costs, minimize lead times, and ensure product
availability and freshness.
7. Omnichannel Retailing: Retail management has evolved to encompass omnichannel
retailing, which integrates multiple sales channels, such as brick-and-mortar stores, e-
commerce websites, mobile apps, social media platforms, and catalog sales, to provide a
seamless and cohesive shopping experience across all touchpoints.
Retailers leverage omnichannel strategies to engage customers, drive sales, and build
brand loyalty in an interconnected retail ecosystem.
8. Customer Relationship Management (CRM): Retailers prioritize building and
maintaining strong relationships with customers through personalized interactions,
attentive service, and tailored offerings.
CRM systems help retail managers track customer interactions, preferences, and
purchase histories, enabling targeted marketing, loyalty programs, and personalized
recommendations to enhance customer satisfaction and loyalty.
Retail Management contd..
9. Performance Measurement and Analysis: Retail management involves monitoring
and analyzing key performance indicators (KPIs) such as sales, foot traffic, conversion rates,
average transaction value, inventory turnover, and customer satisfaction to assess the health
and performance of the retail business.
Retail managers use data-driven insights to identify trends, opportunities, and areas for
improvement, informing strategic decisions and actions to drive business growth.
10. Adaptability and Agility: Retail management requires adaptability and agility to
respond effectively to changing market conditions, consumer trends, competitive pressures,
and external factors such as economic fluctuations, technological advancements, and
regulatory changes.
Retail managers must stay informed, agile, and proactive in anticipating and addressing
challenges and opportunities in the dynamic retail landscape.

Overall, retail management involves a holistic approach to overseeing all

aspects of a retail business, from merchandising and operations to marketing and
customer experience.
Effective retail management requires strategic thinking, operational excellence,
customer focus, and continuous innovation to succeed in a competitive and
rapidly evolving retail environment.
 Marketing concepts applied to Retailing
Marketing concepts are fundamental principles and strategies that guide retailers in
understanding and satisfying customer needs, creating value, and achieving competitive
advantage in the retail industry.
Here are some key marketing concepts applied to retailing:
1. Customer Orientation: Customer orientation emphasizes understanding and fulfilling the needs,
preferences, and expectations of customers.
Retailers adopt customer-centric approaches to marketing, focusing on building strong relationships,
delivering exceptional customer experiences, and providing personalized products, services, and
solutions that resonate with their target audience.
2. Market Segmentation: Market segmentation involves dividing the market into distinct groups of
customers with similar characteristics, needs, and behaviors.
Retailers identify and analyze different customer segments based on factors such as demographics,
psychographics, geographics, and behavior to tailor their marketing efforts, product offerings, and
messaging to specific target audiences.
3. Target Marketing: Target marketing entails selecting one or more specific customer segments as
the focus of marketing efforts.
Retailers identify target markets with the greatest potential for profitability and growth and develop
targeted marketing strategies and campaigns to reach and engage these audiences effectively.
Target marketing helps retailers allocate resources efficiently and maximize the return on investment
(ROI) of their marketing activities.
Marketing concepts applied to Retailing contd.
4. Product Differentiation: Product differentiation involves creating unique,
distinctive, and compelling offerings that set a retailer apart from competitors and
attract customers.
Retailers differentiate their products through factors such as quality, design, features,
branding, packaging, and pricing, aiming to position themselves as the preferred
choice in the minds of consumers within their target market.
5. Value Proposition: A value proposition is the unique promise of value that a
retailer offers to customers, highlighting the benefits and advantages of its products or
services compared to alternatives.
Retailers articulate their value proposition through clear and compelling messaging,
emphasizing factors such as quality, convenience, affordability, innovation,
sustainability, and customer service to attract and retain customers.
6. Marketing Mix (4Ps): The marketing mix comprises four key elements—product,
price, place, and promotion—that retailers use to develop and execute marketing
strategies.
Retailers analyze and optimize each component of the marketing mix to create value
for customers, generate sales, and achieve business objectives.
They determine product offerings, set pricing strategies, select distribution channels,
and implement promotional tactics aligned with their target market and marketing
objectives.
 Marketing concepts applied to Retailing contd..
7. Customer Relationship Management (CRM): Customer relationship management
focuses on building and maintaining strong relationships with customers through
personalized interactions, attentive service, and ongoing engagement.
Retailers leverage CRM strategies and technologies to collect, analyze, and utilize
customer data effectively, tailor marketing communications, anticipate needs, and
deliver exceptional customer experiences across all touchpoints.
8. Brand Management: Brand management involves developing, positioning, and
nurturing a strong brand identity that resonates with customers and communicates
the retailer's values, personality, and promise.
Retailers invest in brand-building activities such as brand awareness campaigns,
brand messaging, visual identity, storytelling, and brand experiences to create
emotional connections and loyalty among customers.
9. Integrated Marketing Communication (IMC): Integrated marketing
communication focuses on coordinating and aligning various marketing channels and
communication methods to deliver consistent and cohesive messages to customers.
Retailers leverage multiple channels, such as advertising, public relations, digital
marketing, social media, and in-store promotions, to engage customers at different
stages of the customer journey and reinforce brand messaging effectively.
 Marketing concepts applied to Retailing contd…
10. Customer Experience Management: Customer experience
management entails designing and delivering seamless, memorable, and
meaningful experiences that delight and satisfy customers throughout their
interactions with the retailer.
Retailers focus on optimizing every touchpoint—from pre-purchase research to
post-purchase support—to create positive emotions, foster loyalty, and drive
repeat business and advocacy.

By applying these marketing concepts effectively, retailers can

better understand their target market, differentiate themselves from
competitors, create value for customers, and build strong, enduring
relationships that drive long-term success and profitability in the
retail industry.
 Retailing as Career
Retailing offers diverse career opportunities for individuals interested in
the dynamic and fast-paced world of commerce and consumerism.
Here are some key aspects of pursuing a career in retailing:
1. Variety of Roles: The retail industry encompasses a wide range of roles
and positions across various functions, including sales, marketing,
merchandising, operations, customer service, finance, human resources,
logistics, and management.
Retailers offer opportunities for individuals with diverse skills,
backgrounds, and interests to find roles that align with their career
aspirations and goals.
2. Customer Interaction: Retailing involves direct interaction with
customers, providing opportunities to engage with people from diverse
backgrounds, cultures, and demographics.
Retail professionals have the chance to understand customer needs,
preferences, and behaviors, build relationships, and deliver personalized
experiences that enhance satisfaction and loyalty.
 Retailing as Career contd.
3. Skill Development: Working in retail provides valuable opportunities for
skill development and career growth.
Retail professionals develop essential skills such as communication, interpersonal
skills, problem-solving, teamwork, adaptability, salesmanship, time management,
and leadership, which are transferable to various industries and roles.
4. Dynamic Environment: Retailing operates in a dynamic and ever-
changing environment characterized by shifting consumer trends, market dynamics,
technological advancements, and competitive pressures.
Retail professionals thrive in fast-paced environments where they can adapt
quickly, innovate, and stay ahead of the curve to drive business success and growth.
5. Opportunities for Advancement: Retail careers offer opportunities for
advancement and progression based on performance, experience, and skill
development.
Entry-level positions often serve as stepping stones to higher-level roles, such as
store manager, district manager, regional manager, or corporate executive.
Retailers value internal talent and often promote from within, providing pathways
for career advancement and development.
 Retailing as Career contd.
6. Entrepreneurial Opportunities: Retailing also presents entrepreneurial
opportunities for individuals interested in starting their own retail businesses or
ventures.
Entrepreneurs can launch retail startups, boutique stores, e-commerce
businesses, franchise operations, or specialty shops, leveraging their creativity,
vision, and business acumen to build successful retail enterprises.
7. Global Perspectives: The retail industry operates on a global scale, offering
opportunities for professionals to work in diverse markets, regions, and
cultures.
International retailing exposes individuals to global trends, consumer
preferences, market dynamics, and business practices, fostering cross-cultural
understanding and enriching career experiences.
8. Industry Innovation: Retailing is at the forefront of innovation, driven by
advancements in technology, digitalization, data analytics, and e-commerce.
Retail professionals have the opportunity to explore emerging trends,
technologies, and business models, harness innovation to enhance the customer
experience, and shape the future of retailing.
 Retailing as Career contd.
9. Rewarding Work: Retailing can be a rewarding and fulfilling career for
individuals passionate about serving customers, driving business results, and
making a positive impact on people's lives.
Retail professionals take pride in helping customers find the right products,
solving their problems, and creating memorable shopping experiences that exceed
expectations.
10. Industry Resilience: Despite economic fluctuations and market
uncertainties, the retail industry has demonstrated resilience and adaptability,
remaining a vital part of the global economy.
Retail careers offer stability, job security, and opportunities for long-term growth
and success in a dynamic and evolving industry landscape.

Overall, pursuing a career in retailing can be an exciting and

rewarding journey for individuals seeking diverse opportunities,
skill development, career advancement, and meaningful work
experiences in the dynamic world of retail commerce.
The first Indian malls started springing up in the
1990s, and from then on began more or less taking
over the retail landscape.

With the liberalization and privatization of the

economy, big international brands made their way to
India and the paradigm shift that followed naturally
led to the emergence of shopping malls.

Today’s top-performing shopping malls are mixed-

use affairs with social entertainment possibilities that
provide unique appeal along with a certain depth in
shopping experience.
Some of the most innovative existing mall developments
have integrated public transit facilities, an aspirational mix
of global and domestic brands and local stores as well as
multi-purpose spaces.

Today’s consumers are seeking a shopping experience that

makes them comfortable, inspires them to stay longer and,
more essentially, persuades them to return.

With growing competition from online retailing, F&B and

entertainment are their main allies in achieving this.
Malls that have given due thought are outnumbering other
developments in terms of repeat footfalls, and this clearly
indicates that customers value an experience that transcends
mainline shopping and also addresses their social needs.

In order to connect with the customers, malls have become

‘places’ that provide customers with numerous avenues of
relaxation and entertainment apart from letting people shop.

Retail is a constantly evolving business. The retail

experience of the future is a constantly adaptive process
which is squarely focused on changing consumer aspirations.
The process of change involves everyone from retail centre
developer to consumers, from brands to facilities services
providers, from the smallest neighbourhood high street to the
most impressive shopping mall.

It is an ever-changing and constantly evolving race to stay

current on new trends and deliver a new, customized and
refreshing experience to people.

Those who succeed in doing this will flourish, and those who
refuse to or cannot adapt will perish.
Trends in Retailing:

Trends in retailing in India are as follows:

1. Shift from Unorganized to Organized Retailing
2. Store Design
3. Competition
4. New Form of Retailing
5. Technology
6. Consumer Buying Behaviour
7. Entertainment.
 1. Shift from Unorganized to Organized Retailing:
 The key factors that drive the growth of organized retailing in
India are:
 Higher disposable incomes,
 Rising urbanization,
 Growing consumerism,
 Nuclear family structure,
 Growing number of educated and employed women population.

2. Store Design:
 The biggest challenge for organized retailing is to create an
environment that pulls in people and makes them spend more
time in shopping and also increases the amount of impulse
shopping.
 3. Competition:
 Competition is increasing between different types of retailers.
 All compete for the same customers.
 The small independent retailers survive by providing personal
services to the customers.
4. New Forms of Retailing:

 Modern malls made their entry into India in the late 1990s, with
the establishment of Crossroads in Mumbai and Ansal Plaza in
Delhi.

 Malls have given a new dimension to shopping experience.

 5. Technology:
 Technology today has become a competitive tool.

 It helps the organized retailer to score over the unorganized

players, giving both cost and service advantages.

 It made possible the growth of non-store retailing.

6. Consumer Buying Behaviour:

 In India, there are no uniform trends with respect to consumer
buying behaviour.

 There are visible differences in the shopping pattern of

consumers across income segments.
 7. Entertainment:

 Modem retail formats provide a place for people to

assemble, and a means of entertainment, by providing
facilities such as food courts, mini theatre, children’s play
spaces and coffee shops.

 These facilities help the customers enjoy shopping.

 Emerging Trends In Retail:
 Modern retailers are adapting new technology for marketing,
retail operations, and business transactions.

 Forward-thinking retailers are using social media to

communicate with the consumers.

 With the space crunch, modern retailers have learnt how to use
every inch of the floor constructively.

 Social media websites such as Facebook, changed consumer

behavior as well as made retailers sweat out to take the benefits
and develop their brands.
 E-tailing: The process includes the customer’s visit to the website,
purchasing products by choosing a mode of payment, product
delivery by the retailer and finally, the customer’s review or feedback.

 Augmented reality (AR) and artificial intelligence (AI): Consumers

listed Augmented and Virtual Reality as the top technologies they’re
seeking to assist them in their daily lives, with 51% saying they would
be willing to use AR technology to assess products.

 Brands like IKEA, Home Depot, and Target all have proprietary AR
shopping experiences.

 Shopify introduced Shopify AR, an easy-to-use toolkit for businesses

to create their own AR experiences to showcase their products to
customers and showed a 94% higher conversion rate than products
without AR.
Retailing Formats
 Store Based Retailing
(A) Based on Merchandise offered:
(1) Convenience Stores:

 A shop with extended opening hours, stocking a limited

range of household goods and groceries.

 Convenience stores usually charge significantly higher

prices than conventional grocery stores or supermarkets, as
these stores order smaller quantities of inventory at higher
per-unit prices from wholesalers.
(2) Supermarkets:

 A supermarket is a self-service shop offering a wide

variety of food, beverages and household products,
organized into sections.
 It is larger and has a wider selection than earlier grocery
stores, but is smaller and more limited in the range of
merchandise than a hypermarket.
 The supermarket typically has aisles for meat, fresh produce,
dairy, and baked goods.
 Shelf space is also reserved for canned and packaged goods
and for various non-food items such as kitchenware,
household cleaners, pharmacy products and pet supplies.
(3) Hypermarkets:
 A hypermarket is a retail store that combines a department store
and a grocery supermarket.
 Often a very large establishment, hypermarkets offer a wide
variety of products such as appliances, clothing, and groceries.
 Hypermarkets allow customers to satisfy all their routine
shopping needs in one trip.
(4) Discount Stores:
 A discount store or discount shop is a term that has been used
over time and across different countries for a number of different
retail formats, all of which sell products at prices that are in
principle lower than an actual or supposed "full retail price".
 Most of the discount stores are like departmental stores as they
sell a variety of products under the roof.
(5) Specialty Stores:
 A specialty store is a shop/store that carries a deep assortment of
brands, styles, or models within a relatively narrow category of
goods.
 Furniture stores, florists, sporting goods stores, and bookstores are
all specialty stores.
 Specialty stores compete with other types of retailers.
(6) Departmental Stores:
 A departmental store may be described as a large retail
organisation having number of departments in the same building
under centralised control.
 Each department deals in particular type of trade and is a
complete unit in it.
 Departments often include the following: clothing, furniture, home
appliances, toys, cosmetics, house ware, gardening, toiletries,
(7) Off Price Retailer:
 Retailers who provide high quality goods at cheap prices.
 They usually sell second-hand goods, off-the-season items etc.
 Off-price retailers are independent of manufacturers and buy
large volumes of branded goods directly from them.
 The off-price retail model relies on the purchase of over-
produced, or excess, branded goods at a lower price.

(8) Factory Outlet:

 An outlet store, factory outlet or factory shop is a brick and
mortar or online store in which manufacturers sell their stock
directly to the public.
 Traditionally, a factory outlet was a store attached to
a factory or warehouse.
 (B) Based on form of Ownership:
(1) Independent Retailer:
 An independent retailer is someone who is completely responsible
for his or her own business.

 The retailer owns or has bought an independent store and has built
the business from the ground up by assessing all needs of the store,
which can include staffing, marketing, merchandising, sales, etc

(2) Chain Retailer:

 A chain store or retail chain is a retail outlet in which several
locations share a brand, central management, and standardized
business practices.

 Chain stores can cater to the needs of people in different localities.

(3) Franchise Retailer:
 Retail franchising is the method of opening a single store based
on the name, branding, trademark, and products of an existing
business.
 Franchising is based on a marketing concept which can be
adopted by an organization as a strategy for business expansion.
(4) Leased Departments:
 Leased departments are broadly defined as operations of one
company conducted within the establishment of another company.
 Typical examples may include jewelry counters or optical centers
within department stores.
(5) Consumer Co-operatives:
 A consumers' co-operative is an enterprise owned by consumers
and managed democratically which aims at fulfilling the needs and
 Non-Store Based Retailing
(1) Direct Selling
 Direct selling consists of two main business models: single-level
marketing, in which a direct seller makes money by buying
products from a parent organization and selling them directly to
customers, and multi-level marketing, in which the direct seller
may earn money from both direct sales to customers and by
sponsoring new direct sellers and potentially earning a
commission from their efforts.
(2) E-Mail Order
 Mail order is the buying of goods or services by mail delivery.

 The buyer places an order for the desired products with the
merchant through some remote method like sending an order
form in the postal mail
 (3) Telemarketing
 Telemarketing is the direct marketing of goods or services to potential
customers over the telephone.
(4) Website/E-Commerce
 Ecommerce, also known as electronic commerce or
internet commerce, refers to the buying and selling of goods or
services using the internet, and the transfer of money and data to
execute these transactions.
(5) Automated Vending Machines/Kiosks
 A vending machine is an automated machine that provides items
such as snacks, beverages etc., to consumers after cash, a credit card,
or a specially designed card is inserted into the machine.
 A kiosk refers to a small, temporary, stand-alone booth used in high-
traffic areas for marketing purposes.
 A kiosk is usually manned by one or two individuals who help attract
attention to the booth to get new customers.
 E-Tailing
E-tailing, also known as electronic retailing or online retailing, refers to the
process of selling products and services over the internet through digital
platforms such as websites, mobile apps, and online marketplaces.
E-tailing enables retailers to reach a global audience, offer a wide
assortment of products, and provide convenient shopping experiences to
customers anytime, anywhere.

1. Digital Storefronts: E-tailers create digital storefronts where customers

can browse products, view product details, and make purchases online.
These digital storefronts serve as virtual storefronts, providing customers
with a visual and interactive shopping experience similar to traditional brick-
and-mortar stores.
2. Wide Assortment of Products: E-tailers offer a wide range of products and
categories, including electronics, apparel, accessories, home goods, beauty
products, books, and more.
The expansive product assortment allows customers to find and purchase
products that meet their specific needs and preferences.
3. Convenience and Accessibility: E-tailing offers convenience and
accessibility to customers by allowing them to shop from the comfort of
their homes or on the go using computers, smartphones, or tablets.
Customers can access e-commerce platforms 24/7, eliminating the
constraints of traditional store hours and geographical limitations.
4. Personalized Shopping Experience: E-tailers use data analytics and
personalization techniques to tailor the shopping experience to
individual customers.
They analyze customer browsing behavior, purchase history, and
preferences to recommend relevant products, send personalized offers,
and create targeted marketing campaigns.
5. Secure Transactions: E-tailers prioritize the security of online
transactions to protect customer information and ensure safe payment
processing.
They implement encryption technologies, secure payment gateways,
and fraud detection measures to safeguard sensitive data and prevent
unauthorized access.
6. Customer Reviews and Ratings: E-tailers often incorporate customer
reviews and ratings into their product pages to provide social proof and
assist customers in making purchasing decisions.
Customer reviews allow shoppers to read about others' experiences
with the product, helping them assess product quality and suitability.
7. Order Fulfillment and Logistics: E-tailers manage order fulfillment
and logistics operations to ensure timely delivery of products to
customers.
They partner with shipping carriers, fulfillment centers, and logistics
providers to manage inventory, process orders, and handle shipping and
delivery efficiently.
8. Customer Support and Returns: E-tailers offer customer support
services to assist customers with inquiries, product information, order
tracking, and post-purchase assistance.
They also provide flexible return and exchange policies to
accommodate customer needs and enhance the overall shopping
experience.
9. Omnichannel Integration: Many e-tailers adopt
omnichannel strategies to integrate online and offline
channels seamlessly.
They may offer options for in-store pickup, click-and-
collect services, or return/exchange facilities at physical
store locations, providing customers with flexibility and
convenience.
10. Marketplace Platforms: Some e-tailers operate as
marketplace platforms where multiple sellers can list and
sell their products to customers.
These platforms connect buyers and sellers, facilitate
transactions, and provide a centralized marketplace for a
wide variety of products and sellers.