When Anne Mulcahy became Xerox’s CEO, the company was on the brink of bank-ruptcy—it was $17.1 billion in debt and had only $154 million in cash. The normal income level of every family is increasing with both spouse working, people have more income to spend on their comfort and luxuries. The competitive strategy is about separation. Manufacturers are relieved of creating storage and warehouse facility for the goods he has manufactured, as manufactured product is taken by the retailer. Key to any effective retail management strategy are the individual store managers. ii. Present size of business is estimated at $450bn with approximate of 5% being in organised retail. Retail as a Separate Branch of Study: Growing demand for organised retail and revolutionary changes in the retail trade has resulted in retail management and market as a separate branch of study. The first mail order business house was established as Montgomery ward in 1870. Makes attractive presentation and placement of product for easy identification and selection. The growth in Information Technology further led to web based training. The concept of super market to cater to the needs of Blue – Collar and Elite of people was started in 1938. Marketing, India, Essay on Retail Marketing. Further large quantity of farm produce and vegetable is damaged and wasted due to poor infrastructure. Retailing at economical prices was further popularized by the concept of self – service stores. There is no sufficient growth in logistics like Warehouse, Roads and Communication that is essential for Rural Development. People are given the choice of selecting goods of their desire or dream. Apart from this retail provides and creates job opportunities for women, as women can take better care of customer. Retailing started assuming organised format through ‘Bazars (weekly market) and Jatras’ where temporary shops were erected to seller to the people who congregate or assemble during that. In fact it is not run like a business; it is a kind of family and pass time activity. Since retailer has personal contact with his customers he can influence their buying behavior by suggesting the product that matches their taste. Growing wealth of people, increasing education levels culture resulted in formation of large Departmental stores, Super-market and Hypermarket worldwide. Apart from this they celebrate festivals round the year and occasions like Marriage, Birth, Death, each occasion demands expenditure on consumption on Food, Clothing, Jewellery etc. 0000002079 00000 n If you ask me why is retail management important? Retailer ensures a higher standard of living by making available variety of goods and service to the people at reasonable price. It may also be over the internet, through mobile or mail order business. Retailer ensures productivity and efficiency in distribution of goods. He not only helps in selling and buying activity, but collects important information about the people, i.e., likes and dislikes of the product and important information regarding market. Opportunities and Challenges for Retail Business in India: Organised retail is poised to take off or prosper in India. This is experienced in case of China, South Korea, Japan etc., But in India, with present per capita Income of $400 is indicating the signs of progress in organised retail. First of all, you should understand the concept of strategy. Retailer collects and assembles these merchandise from different sources, assorts them and keep in his shelf ready for easy identification for himself and customers. 0000130459 00000 n Long and regular association-ship between retailer and his customer will make them to share their personal and family related issues. They are made available at reasonable price and at convenient location to the people. He sells goods to final customer. Invention of coins and currencies as medium of exchange expanded the horizon of retailing, Various forms coins (Gold, Silver, Copper) were used for exchange of goods that promoted trade of retailing not only domestic, but also international. Application of inventory control techniques ensures that optimum level of stock is maintained. Organised retail can provide avenue for their spending. ii. 5. Today we see revolution in the field of retail business with entry of firms like ‘Big Bazar’ ‘More’ McDonald, Walmart that are not just delivering goods, but also satisfying needs and wants of people there by ensuring customer -delight. Growing urbanisation is creating opportunity for retail marketing. The business of selling goods to final consumer is done in an organized Systematic manner to deliver the goods desired by people. 1. This will create demand and needs more production and investment in business activities. 7. 0000007377 00000 n 3. 0000011750 00000 n Essays, Research Papers and Articles on Business Management, Essay on Retail Trade: Top 5 Essays | Distribution Channel | Retail Management, Marketing and Selling | Difference | Functions | Marketing Management, Merchandising: Definitions, Types Principles and Functions | Retail Marketing, Marketing Channel: Definition, Need, Types, Structure, Importance and Functions, Services Marketing: Meaning, Differences, Components, Importance and Analysis, Concept and Definition of Retail Marketing, Characteristics or Features of Retail Marketing. The answer is that it is one of the most important factor to run a retail business flawlessly. He acts as communicator between manufacturer and consumer. Email: [email protected] . Development of organised retail has following challenges and opportunities. Organised management and optimum capital ensures that there is no wastage of stocks and materials. iii. iv. The first self-service store by name ‘PIGGLY – WIGGLY’ was started in 1916, in Memphis, Tennessee of the US. Introduction to Retail Marketing: Retailer is the person or institution who delivers goods to final … 0000118370 00000 n Retailers deliver goods from a location that is convenient to the customers. Production on large scale needed distribution on large scale where in the existing system traditional retailing was not enough. Indirect job opportunities are created in logistics that is warehousing, transportation, banking that support retail marketing. Even sale of spare parts, equipment, machineries etc., to industrial house or business is organised are classified under retail transaction. Retail as trade has developed over the period of time, from un organized street vendor or seller like ‘SUBJIWALA’, PAANAWALA to organized shops like super bazaars, Departmental stores. An effective management avoids unnecessary chaos at the store. It provides convenient outlet for sales. The word retail is derived from the French word Retailer, that is to cut a piece, a break down. Exposure to Different Cultures and Globalisation: People are exposed to enjoy wide variety of goods that are manufactured worldwide. L. Jeseviciute-Ufartiene . They constitute more than 60% of India’s size and population Indian farmer is exploited by middleman as he gets only 1/3 of selling price for his products. Indian farmer is forced to sell his product at un-remunerative price. Plagiarism Prevention 5. He delivers the product or service in a form, size, that is acceptable to final consumer. He is described as merchandising arm or neck, in the bottle of distribution. Industrial revolution in the 17 and 18 century that invented varieties of machineries changed the system of production. Retailer knows the likes and dislikes of each individual customer; he can guide the consumer to buy the product that matches his taste and budget. Health and Longevity depends on consumption style. Visits of travelers like ‘Huentsang’ to the Vijayanagar Kingdom’ explain the trading activities during those period.