Professional Documents
Culture Documents
Copyright:Sreekumarpillai,SCMS
Session Objectives.
To introduce the subject of Retail
Management by exploring the retail concepts and environment. To examine the present retail market on national as well as international levels.
goods and services to be transferred from the manufacturer to the consumer at the optimum cost,convenience and speed. There are many types of channels of distribution that are in operation.
Distributor
Retailer
Consumer
Channels of distribution:
Manufacturer
Retailer
Consumer.
Channels of Distribution:
Manufacturer
Consumer
What is retailing ?
Retailing is the sum of all the marketing activity that are
undertaken by a component of the supply chain when it is involved in selling goods or services directly to the consumers for their personal, family or household use. than 50% of their sales revenue through direct sale to the customer. greatly in size, organisation ,nature of product/service offering and sales strategies.
directing the processes that lead to the transfer of goods from the retailer to the consumer constitutes Retail management
Functions of a Retailer:
Form utility: Offers goods in the form and
quantity that is required by the consumer(ready to use). Time utility: the shops are open during times when customers want to shop. Place utility: proximity to the customer. Ownership utility: easy and legal transfer of ownership.
W o r ld In d u s t r ie s
0 0 0 0 T rillio n s o f U S D 0 0 0 0
R e t a il fi n a n c i a l C h e m ic a l E le c t ro n ic s 0 In d u str ie s 0 A u t o m o b ile
E n g in e e rin g
packaged g
1 22 34 42 49 54 57 82 86 105
Wal-Mart Stores Carrefour Home Depot Metro Royal Ahold Tesco Kroger Target Costco Albertsons
U.S.A. France U.S.A. Germany Netherlands U.K. U.S.A. U.S.A. U.S.A. U.S.A.
287,989 90,380 73,094 70,159 64,675 62,458 56,434 49,434 48,107 40,052
1,700,000 430,000 273,000 208,616 201,000 242,980 289,000 292,000 273,000 241,000
annum. The organised sector is now 8% of the total market and was growing at 49% per annum till Sep 08.The current growth rate is estimated to be around 35%. India has 12 million retail outlets which is the highest in the world. The per capita- retailing space is 2 sqft(16 sqft in the US), 96% of all Indian retail outlets are below 500 sqft. Retail sector is the second largest employer in India after The agricultural sector accounting for 97 Million people. The retail industry has the potential to employ 3.5 lakhs of Indians during 2010-2011.
Quick Stats (Indian Retail) Markets Market size (total) 2006: US$ 300 bn/annum Market size (total) 2011: US$ 427 bn/annum Market size (total) 2015: US$ 637 bn/annum Market size (modern retail) 2008: US$ 12 bn/annum Market size (modern retail) 2011: US$ 60 bn/annum Annual rate of growth (modern retail): 35% Penetration (modern retail) 2006: 3 to 4% Penetration (modern retail) 2010: 10% Number of retail outlets (total): 12 million
sq.ft.) New space distribution: 65% (top 7 cities), 35% (tier II & III cities) New space distribution (among top 7 cities): NCR 34%, Mumbai 23%, Rest 43%
Investment
New Investment by 2011: US$ 30 bn
Employment
No. of persons employed (total): 97 mn No. of new jobs in next two years: 1.5 mn.
Total
16,000
37,216
18
Food
1,800
7473
33
Clothing
4950
10,423
16
Consumer durables
1650
3787
18
Books &music
450
1,426
26
Grocery Retailing
Fresh Groceries
Biscuits,chips etc
Rice,pulses,sugar
Electronics: Next,QRS,Viveks,Nandilath-G-mart
Mac Donalds Pizza corner Barista Coffee day Dominos Chic king
References: Retailing by George Lucas,Robert Bush and Larry Gresham ,1997 First Edition ,All India Publishers and Distributors.
Principles of Retailing by John Fernie,Suzanne
Barry Berman & Joel.R.Evans , 2005 Eighth edition, Pearson Education Singapore
Thank you.