Retailing

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Retailing

Retailing includes the business activities involved in selling goods and services to consumers

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job opportunities

• Marketing/Advertisingmarketing functions may be centralized in one department, divided into different departments

(like advertising, sales promotion, art and visual merchandising, and public/press relations). Marketing also analysis of customer buying patterns to develop strategies and plans that guide marketing components like ads, websites, store signage, etc.

• Store Operationsprofessionals in the store operations career area oversee overall store operations and

profits. position titles include Head of Store Operations, Regional Manager, and District Manager

• Loss PreventionLoss prevention team members work together to prevent and handle merchandise loss due

to shoplifting, employee theft, paperwork errors, and vendor fraud

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• Financeaccounting and treasury functions like accounting for income, paying expenses, compiling

and maintaining financial records, money management and cash flow control, banking, investment, and credit lines

• Human Resources• IT and eCommerce• Sales and Sales-Related positions like sales associate, cashier, store stock associate, and stock receiver. These

frontline positions are retail's core business--serving the customer and generating sales.• Distribution, Logistics, Supply Chain ManagementResponsibilities include management and facilitation of distribution centers, logistics traffic

management, trucking and other transportation operations, and may include import/export shipping and related duties.

• Merchandise Buying/Planning and category management

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An Ideal Candidate for a Retailing Career

Be a people person Be flexible Be decisive Have analytical skills Have stamina

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Scope & functions• Providing required assortment in right quantity , right form

acceptable to customer , at right place and at right time• Breaking bulk• Sorting • Holding inventory• Providing value added services• Providing employment• Channel of communication and information b/w wholesaler and

customers• Transportation• Advertising of goods• Creating a total retailing experience

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Total retailing experience

• Includes all elements in retail offering that encourage or inhibit consumers during retail visit e.g displays,sales people prices,assortment

• Experience to be made enjoyable

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The Changing Retail Landscape

• Proximity to the customer• The Rise of consumerism• Introduction of the Private Label• Technology

Retailers are no longer dependent on the manufacturers to sell what is available and have emerged as the new leaders in the marketing channel

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Multi-Channel Retailing

A retailer sells to consumers through multiple retail formats Web sites Physical stores E.g Book sellers,pizza hut

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Source of information about Retailing

• Retail Association of India( RAI)• Retail industry leaders association• National retail federation• Nielson• Dnsretailing today • Daily news record• Others…………….

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Indian Retail Scenario• Estimated to be worth more than US$ 500 billion, the Indian retail

industry is considered as one of the world’s top five retail markets in terms of economic value.The industry comprises of around 8% organised players. The industry is experiencing exponential growth, with retail development taking place not just in major cities and metros, but also in Tier-II and Tier-III cities

• India's strong growth fundamentals along with increased urbanisation and consumerism provide a better scope for retail expansion. Further, easy availability of Debit/ Credit cards has contributed significantly to a strong and growing online consumer culture in India. With the online medium of retail gaining more and more acceptance, there is a tremendous growth opportunity for retail companies, both domestic and international. Currently, the online retail penetration in India is around 60 per cent

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Market Size

•The Indian retail market is expected to touch US$ 1.3 trillion by 2020 from its existing level of around US$ 500 billionOnline Retail•India’s urban population has contributed immensely to the growth of the online market in the country. Around 30–40 per cent of the total retail in India’s top 75 cities is expected to be carried out online in the next 7–10 years, as per Technopak Advisors. •With rural India getting increasingly empowered with all forms of technology, online portals are going to be vital for companies trying to access these markets. Of the total online market products, consumer durables account for 34 per cent, apparel and accessories 30 per cent, books 15 per cent, beauty and personal care 10 per cent, and home and furnishing 6 per cent. Over 50 per cent of sales in these product categories take place in non-metro cities

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•The growing online retail market has become a very lucrative business for international majors as well. Amazon, the world’s biggest internet retail company, has seen potential in the Indian market. In June 2013, India became only the tenth market where Amazon has established a country-specific retail website.•Moreover, online fashion retailer Jabong has an exclusive partnership with Spanish casual clothing brand Desigual . Many offline brands are also launching their new products first on the online portals, as in the case of Lee Cooper which placed its Originals Frames and Sunglasses range on the online portal Snapdeal earlier this year

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• Key Developments and Investments

• Reliance Retail plans to enter the e-commerce segment in six to eight months, a move that will pitch it against established players such as Amazon, for a share of India's fast growing online retail market. The company currently operates over 1,500 stores, including hypermarkets, digital stores, jewellery outlets and apparel stores, in 136 cities nationwide. For the quarter ended September 2013, the company's sales jumped 31 per cent from a year ago to Rs 3,456 crore (US$ 557.76 million).

• Swedish furniture retailer IKEA had proposed setting up 10 furnishing and homeware stores as well as allied infrastructure in India, over the next 10 years. The company also plans to open 15 more stores. It has already identified Haryana, Andhra Pradesh, Maharashtra and Karnataka as possible states to set up its stores.

• Myntra has entered into an exclusive partnership with UK-based apparel manufacturer, Raised on Denim. The UK brand will manufacture its premium youth apparel range, Stanley Kane, locally and sell it on Myntra, aiming to reach the fashion-conscious clientele who are increasingly shopping online.

• Shoemaker Johnston & Murphy, which is known for having made shoes for several US Presidents, plans to open 15 stores across Indian metros in the next four–five years

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• Tesco Plc, the UK’s largest supermarket company, plans to be the first foreign multi-brand chain to enter the Indian market. Extending its back-end and wholesale support franchise agreement with the Tata Group's Trent, Tesco will invest US$ 110 million in the Indian market for front-end multi-brand retail stores.

• Apollo Tyres Ltd has opened its first branded outlet in Sri Lanka strengthening its presence in the island country. The outlet deals in both passenger and commercial vehicle tyres.

Government Initiatives• The Government of India has allowed 51 per cent FDI in Multi-Brand Retail Trading (MBRT)

and 100 per cent in Single-Brand Retail Trading (SBRT).• According to the extant policy, foreign retailers investing more than 51 per cent can open

outlets across the country on the condition that 30 per cent of their sourced sales would come from small to medium-sized domestic enterprises. Further, global chains will now need to invest only 50 per cent of the initial compulsory investment of US$ 100 million in setting up cold storages and warehouses in India.

• Foreign chains have been given the green signal to set up stores in cities with a population of less than one million. Earlier, supermarkets could only commence their operations in 53 cities, the ones with a population of more than a million.

• The Foreign Investment Promotion Board (FIPB) has approved Swedish clothing major Hennes & Mauritz AB’s (H&M) proposal to open 50 stores across the country with an investment of Rs 720 crore (US$ 116.20 million). Earlier this year, the Cabinet Committee on Economic Affairs (CCEA) had cleared a Rs 10,500 crore (US$ 1.69 billion) proposal by IKEA.

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• Road Ahead• The upcoming years of Indian retail industry are highly favourable for luxury goods. The

overall Indian retail sector is expected to grow 9 per cent during 2012–16, with organised retail growing at 24 per cent or three times the pace of traditional retail (which is expected to expand at 8 per cent), according to a report by Booz & Co and RAI.

• While most retailers have been rushing to capture opportunities in the quickly crowding Indian metros, some have been focusing their expansion plans in the non-metros. In the next few years, modern retail is expected to grow 50–60 percent annually in tier II and tier III cities, compared to only around 30 percent in the metros.

• According to a recent Technopak report, e-tailing has the potential to grow more than hundred-fold in the next nine years, to reach US$ 76 billion by 2021. This growth will be driven by the country's growing Internet-habituated consumer base, which will comprise 180 million broadband users by 2020, and a burgeoning class of mobile internet users.