Introduction to retialing

Retailing
INTRODUCTION TO
PAPER 5.3: RETAIL MANAGEMENT
Chapter 1
COURSE INSTRUCTOR
Mohammed Umair | M.Com, PDGBA, NET
umairsunni@gmail.com

WHAT IS MARKETING?
Products & services do not move naturally from producer to the consumer for this we
need a structured mechanism.
The Chartered Institute of Marketing define marketing as 'The
management process responsible for identifying , anticipating
and satisfying customer requirements profitably'
Philip Kotler says, “Marketing is a societal process by which individuals and
groups obtain what they need and want through creating, offering and freely
exchanging products and services of value with others”.
Marketing is a process of:-
 Identifying the wants of the people.
 Developing product or service to meet the wants of people.
 Recognize target customer among the people.
 Determining way of communicating the product to target customer.
Mohammed Umair Introduction to Retailing

THE TRADE APPROACH
Exchange of household utilities for other goods.
THE PRODUCT APPROACH
Products were sold at a low cost. SALES ORIENTATION APPROACH
Enhancing sales volume with promotion.
CUSTOMER ORIENTATION APPROACH
Supplying products to suit new consumer tastes.
SOCIAL ORIENTATION APPROACH
Marketing activities should not harm the society.
RELATIONSHIP MARKETING APPROACH
Building and keeping good customer relations.
VIRTUAL MARKETING APPROACH
Links the marketing activities to online world.
BRANDING
Emotional and psychological
relationship.
EVOLUTION OF MARKETING APPROACH

SALES VS. MARKETING
Meaning
Satisfying needs through an exchange process.
Effort to execute the exchange process.
MARKETING
SELLING
Inception
Starts before decision of production goods.
Starts after decision of production of goods or services.
MARKETING
SELLING
Subject Matter Satisfaction of consumers.Stresses needs of seller.
MARKETINGSELLING
Environment
Consideration both the internal and external factors
Selling is concerned with the internal factors .
MARKETING
SELLING
Scope
Marketing is a wider term, which, includes 4Ps
Selling is the part of marketing
MARKETING
SELLING
Subject Matter Integrated approach.Short-run-oriented.
MARKETINGSELLING

SALES VS. MARKETING
Meaning
Satisfying needs through an exchange process.
Effort to execute the exchange process.
MARKETING
SELLING
Inception
Starts before decision of production goods.
Starts after decision of production of goods or services.
MARKETING
SELLING
Subject Matter Satisfaction of consumers.Stresses needs of seller.
MARKETINGSELLING
Environment
Consideration both the internal and external factors
Selling is concerned with the internal factors .
MARKETING
SELLING
Scope
Marketing is a wider term, which, includes 4Ps
Selling is the part of marketing
MARKETING
SELLING
Subject Matter Integrated approach .Short term.
MARKETINGSELLING

WHAT IS RETAILING?
According to Kotler: “Retailing includes all the activities involved in selling goods or
services to the final consumers for personal, non business use”
 It is responsible for matching individual demands of the
consumer with supplies of all the manufacturers.
 Often people think of retailing only as the sale of products
in stores, but retailing also involves the sale of services.
 Not all retailing is done in stores.
 Retail comes from the Old French word tailer- which means to cut off a piece or to break bulk.
 Retailer is regarded as the last link in the chain of distribution.
FEATURES OF RETAILING
 Sale volume is comparatively large in quantities
 He deals in variety of merchandise
 Direct interaction with customers
 Retailer is customer focused, not Product –focused
 Creates shopping environment

CONCEPTUAL CLARITY
 A process of promoting greater sales and customer satisfaction by gaining a better
understanding of the consumers of goods and services produced by a company.
 Retail management includes all the steps required to bring the customers into the store
and fulfill their buying needs.
 Retail management makes shopping a pleasurable experience and ensures the customers
leave the store with a smile.
RETAIL MANAGEMENT
Retailer is a person, agent, agency,
company or organization reaching
the Goods or Services to ultimate
consumer with the goal of earning
a profit.
RETAILER

What is Retailing?
• Retailing involves selling products and services to consumers for their personal or family use.
Buying and Assembling
Warehousing and Storing
Grading and Packing
Assumption of Risk
Customer Profiling & Catering
Selling
Advertising
FinancingFacilitate demand
Functions
Retail comes from the Old French word tailer- which means to cut off a piece or to break bulk.
Guidance to Consumer
Supply of Market Information
After sales service Aid in Product Launch
Providing Assortments

EVOLUTION RETAILING IN INDIA A: TRADITIONAL FORMATS
Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non business use.
1. ITINERANT RETAILERS
 Retailers who do not possess any shop of their own and who move from place to place to
sell their articles. It is a type of direct selling which stated centuries ago.
No Fixed place of business.
They carry very little stock either on their heads or on bicycles or on hand-carts.
Their capital investment is very small.
They do not stick to a particular line of business throughout the year.
They move from place to place in order to sell their articles.
They do not have fixed hours of work or even fixed days of work.
They operate at the minimum cost.
They provide door-to-door service moving about in residential localities and selling their wares.
KEY FEATURES

A: Hawkers
 They are itinerant traders who move about in residential localities
with their articles usually on bicycles or hand-carts.
 They usually deal in consumer goods of a cheap nature.
 Their range of merchandise varies from:
 Vegetables,
 Fruits
 Toys,
 Bangles,
 Plastic utensils etc.

B: Peddlers
They also deal in cheap goods and usually cater to the needs of
the low- income gentry.
They carry their articles on their heads or on
their back and move from one house to the
other in the residential localities of a city.
C: Cheap Jack
 A peddler, especially of inferior articles.

D: Street Traders
 They are “pavement retailers” who display and sell their products from
pavements/ footpaths. They are usually seen in crowded cities and handle light
goods.
E: Market traders
 They are a type of small-scale sole-proprietors who hold stalls at different
places in different localities on fixed days known as “market days” which may
be once a week.

 Haats refers to locations which witness a public gathering of buyers and sellers at fixed
time and fixed locations.
 Haats are the unique examples of traditional malls in India.
 There was tendency in rural as well as semi-urban area in India for visiting these haats
with family members as a part of picnic cum purchasing programmes.
 According to one estimate about 42,000 haats are organised in our country
2. HAATS
HAATS
Vegetables Fruits Chats Sweets Entertainment
On account of organization of these haats these are called with the name of a particular day also such as Mangal Bazar, Budh Bazar etc.

 Mela is a Sanskrit word meaning 'gathering' or 'to meet' or a 'fair'.
 It sizes of gatherings and can be religious, commercial, cultural or sport-related.
 Generally in "melas" people can find eateries, entertainment activities, shops and games.
 It is estimated that more then 2500 melas are held annually in the country.
 The average sale per mela would be Rs. 143 lac.
3. MELAS

 Mandis are markets set up & regulated by State Government for the sale of
 Agricultural produce directly from farmers.
 At present the number of such markets stand at 7521. These mandis are playing
significant role in providing better prices to farmers.
4. MANDIS

 The term cooperation is derived from the Latin word ‘co-operari’, where the word ‘Co’means
‘with’ and ‘operari’ mean ‘to work’. Thus, the term cooperation means working together.
 The Section 4 of the Indian Cooperative Societies Act 1912 defines Cooperative Society as “a
society, which has its objectives for the promotion of economic interests of its members in
accordance with cooperative principles.”
5. CO-OPERATIVE SHOPS
 Consumers’ Cooperative Societies: These societies are formed to protect the interest
of consumers by making available consumer goods of high quality at reasonable
price.

 PDS is a govt-sponsored chain of shops entrusted with the work of distributing basic food
and non-food commodities to the needy sections of the society at very cheap prices.
 Public Distribution system was introduced in India in the year 1950. (the evolution of the
public distribution of grains in India)
 Kendriya bandars (1963)
 Mother dairy ( foods and provisions)
 Co-operative stores( In Mumbai, Bombay bazar)
 From the 1950’s to the 1980’s, investments in various industries was limited due to low
purchasing power and the govt’s policies favouring the small – scale sctor.
5. 'PUBLIC DISTRIBUTION SYSTEM'

The first time organised retailing was noticed in the textile sector.
Vivek’s, Nalli’s, Raymond’s, Vimal, Garden etc. This was the beginning of new era in retail in
India.
EVOLUTION RETAILING IN INDIA B: MODERN FORMATS

TIMELINE OF RETAILING IN INDIA
Pre 1947
• Haats, Melas and
typical Indian markets
were formed
1947
• India becomes
independent nation
1970s
• First emergence of
organized retail
through textile sector
1980s
• Emergence of brands
and braded retail
outlets
1991
• India opens doors
through economic
reforms
1991-95
• Multiple formats and
product categories
introduced
1996-99
• Modern malls are
introduced
2000-05
• Rapid expansion of
multiple format Indian
co; begins
2006
• Government allows
upto 51% FDI in single
brand retail firms
2008
• E-commerce blossoms
2008-2016
• Rapid modern malls
and single branded
store expansion

STRUCTURE OF INDIAN RETAIL INDUSTRY
ORGANIZED RETAILING
It refers to trading activities undertaken by the licensed retailers i.e. those who are registered for sales tax and
income tax. In India organized retailing constitutes a very little share of 8 percent of total retail market.
UNORGANISED RETAILING
It refers to the traditional format of retail industry. These sectors is mainly characterized by small retailers and
are subject to tax evasion and lack of labor law system.
Retail sector in
India
Organized KIOSKS
SUPER MARKETS
DEPARTMENTAL STORES
SPECIALTY CHAINS
CONVENIENCE STORE
MALLS
Unorganized ITINERANT SALESMAN
HAATS
MELAS
MANDIS
KIRANA SHOPS
Organized retail in nascent stage

92%
8%
Retail Sector in India
Unorganized Retail
Organized Retail
33%
11%
11%
8%
7%
6%
4%
20%
Organized Sector
Apparel Food & Grocery Mobile & Telecom Consumer Electronics
Food Service Jewellery Footwear Other
In India the retail sector is categorized into two sectors, organized and unorganized.

275.86
482.76 534.48
741.38
948.28
0
200
400
600
800
1000
2008-09 2012-13 2013-14 2014-15 2018-19
Sales in Billion $
CAGR 15%
Retail Industry, one of the fastest changing and vibrant industries that, has contributed to the economic growth of our
country. Within a very sport span of time, Indian retail industry has become the most attractive, emerging retail market in
the world.
8%
20%
30%
40%
81% 85%92%
80%
70%
60%
19% 15%
0%
20%
40%
60%
80%
100%
India China Indonasia Thailand Taiwan USA
Organized Retail Penetration
OrganizedUnorganized

RETAIL GROWTH DRIVERS
 CONSUMER OR DEMAND-SIDE DRIVERS
A: Growing Working Women Population
 Working women can spend 1.3 times more than housewives
 Working women in 1991: 22%
B: Growing youth segment
The power of youth today is evident in its large numbers, tendency to consume and in its
ability to influence larger household decisions.
10.7 12.5 12.1 9.7 8.7
27.6
13.5
4 0.8
41.1
47.9
0
10
20
30
40
50
60
0 - 4 5 to 9 10 to 14 15- 19 20 - 24 25 - 44 45 - 64 65 - 79 80+ Less Than
18
Less than
21
POPULATION IN DIFFERENT AGE GROUPS

C: Adoption of Nuclear Family Culture
Average Household Size in 1991 : 5.57
D: Changing consumer preferences and growing urbanization
 Urbanization is a population shift from rural to urban area.
 The renewed urbanization represents a significant turn from suburbanization patterns of the past
decades.
 About 377 million people from India’s total population of 1.21 billion are urban dwellers.
 With more than 10 million people migrating to cities and towns every year, the total urban population is
expected to reach about 600 million by 2031.
 Today, 54% of the world’s population lives in cities, according to the United Nations.
 By 2050, 67% of the world’s population will be living in a city.

E: Media explosion
 There has been an explosion in media due to satellite television and internet.
 Indian consumers are exposed to the lifestyle of countries.
 Their expectations for quality products have risen and they are demanding more choice and
money value services and conveniences.
99 130 165 177 216
38 60 92 101 138
2012 2013 2014 2015 2016
Internet Users Growth in India
UrbanRuralFigures in Million
64
55
35
15 7 5
30
45
65
78
85 90
35 39 44 50 56 64
2013 2014 2015 2016 2017 2018
TV growth
DigitalAnalogue
Figures in Million
DTH

F: Increasing number of HNI’s
 High-income population has notched up an impressive growth.
 India has the fastest growing HNI population in the world.
 The number of ultra HNHs grew to 137,100 in FY15, a 22% compounded growth over 5 years.
 The number of ultra HNHs is expected to increase to 348,000 by FY20(P) with a combined net
worth of Rs. 415 trillion,
16% 15% 14% 13% 12%
9%
6% 5% 5% 4%
1%
Jewellery Apparel &
Accessories
Holidays Electronic
Gadgets
Home Décor Events Philanthropy Luxury
Watches
Vintage
Spirits
Art &
Painting
Others
AREAS OF SPEND

 BUSINESS OR SUPPLY-SIDE DRIVERS
A: Availability of Real Estate  The real estate sector comprises four sub sectors -
housing, retail, hospitality, and commercial.
 In India, real estate is the second largest employer
after agriculture and is slated to grow at 30 per
cent over the next decade.
 The Indian real estate market has become one of
the most preferred destinations in the Asia Pacific1
as overseas funds accounted for more than 50 per
cent of all investment activity in India.
B: Easier access to credit
 Plastic money an acronym for credit cards is an important driver of retail
businesses.
 India is the second fastest growing Financial Cards market in the Asia - Pacific region.
 Tier- II & III cities to fuel future growth of Modern Retail.

 BUSINESS OR SUPPLY-SIDE DRIVERS
C: Increased efficiency due to development in the supply chain
D: Conducive regulatory environment due to expected reforms
E: R&D, innovation and new product development
F: Growing interest of investors

DEMAND SIDE
Growing Working Women Population
Growing youth segment
Adoption of Nuclear Family Culture
Changing consumer preferences
Growing urbanization
Media explosion
Increasing number of HNI’s
SUPPLY SIDE
Availability of Real Estate
Easier access to credit
Increased efficiency of supply chain
Conducive regulatory environment
R&D, innovation and new product
development
Growing interest of investors

TYPES OF RETAILERS
CLASSIFICATION OF RETAIL FORMATS
Retail is a term which covers a vast range of business types and
models. Some of the different types of retail store include:
Brand
Single Band
Multi Brand
Store Area
Hyper Market
Supermarket
Department Stores
Marketing Strategy
Discount Stores
Warehouse Stores
Mom and Pop Store
Speciality Stores
Malls
E-Tailers
Pure-play e-tailers
Bricks & clicks e-tailer
Services retailing
People-based vs.
equipment-based
Customer presence
Personal vs. business
Service provider’s
motives
Degree of customer
contact.

A: Based on Brand
Unique design, sign, symbol, words, or a combination of
these, employed in creating an image that identifies a
product and differentiates it from its competitors.
 Where a business sells goods to individual
customers under the same brand.
 More Attention
 Greater Shelf Space
 Greater Sales and Profits
 Minimized Competitive Influence
SINGLE BRAND
TYPES OF RETAILERS

TYPES OF RETAILERS
A: Based on Brand
 Retailing of two or more similar and competing products
by the same firm under different and unrelated brands.
While these brands eat into each others' sales.
 Where a business sells goods to individual customers
and such goods can carry several different brands.
MULTI BRAND
 Catering to brand-switchers users who like to experiment with
different brands.

TYPES OF RETAILERS
B: Based on STORE AREA
SUPERMARKET
 A retail store which generally sells food products and household items, properly
placed and arranged in specific compartments is called a supermarket.
 A supermarket is an advanced form of the small grocery stores and caters to the
household needs of the consumer.
The main features of supermarket are as follows:
1. Variety of products
2. Deals in necessaries of life
3. Self-service
4. Reasonable prices
5. Separate compartments
6. Deals in pre-packed goods
 Bakery products
 Cereals
 Meat products
 Breads
 Medicines
 Vegetables
 Fruits
 Soft drinks
 Frozen Food
 Canned Juice
Product Portfolio

TYPES OF RETAILERSB: Based on STORE AREA
DEPARTMENTAL STORE
 A departmental store may be described as a large retail organization having number
of departments in the same building under centralized control.
 Each department deals in particular type of trade and is a complete unit in it.
The main features of Departmental are as follows:
1. Large size
2. Central location
3. Wide range of goods
4. Specialization
5. Attractive appearance
6. Unified management
7. Amenities and services
Apparels Jewellery Toiletries
Cosmetics
Footwear
Sportswear Toys Electronics Appliances
Personal care

TYPES OF RETAILERS
B: Based on STORE AREA
HYPERMARKET A hypermarket is a superstore combining a supermarket and a department store.
 It was in 1931 that the word hypermarket was first coined to
refer to a gigantic retail facility that was earlier called as
departmental store or a super store.
 Fred Myer chain in US was labeled as hypermarket, but the
word was later reserved for all such retail stores that
combined the features of super market and departmental
stores.
The result is an expansive retail facility carrying a wide range of products under one roof,
including full groceries lines and general merchandise.

TYPES OF RETAILERSSUPER VS HYPERMARKET
Retail outlet that focuses on selling a particular product range & associated items.
Supermarkets
• Supermarkets are large self-service
grocery stores.
• Offer customers a variety of foods
and household supplies.
• Similar goods placed together.
Hypermarkets
• Large retail establishments.
• Combination of supermarket and
department stores
• One-stop shop for all of the
customer’s needs.

 A discount store is a retail store which sells products at prices lower
than the typical market value.
 The discount stores generally offer a limited range and the quality
in certain cases might be a little inferior as compared to the
department stores.
 The products generally include formal and semi formal as well as
casual clothing, footwear and accessories.
DISCOUNT STORE
TYPES OF RETAILERS
Consumer Discounts Prompt More Spending ∣ Consumers Discounts Make Your Business Money∣ Stay competitive ∣Improve Goodwill
B: Based Marketing Strategy
Marketing strategy is making sure your offering addresses your
consumer's needs. Consumers do not buy what you sell. They buy
what has value to them.
 Brand discount retailers typically offer 25-80% discount on products
through the year and insist they do not sell counterfeits or factory
seconds, or products typically rejected by stores.
 They claim they are able to buy at reduced prices as they purchase odd
sizes, end-of-season surplus items and, often, make payments in cash to
the manufacturer or distributor.

TYPES OF RETAILERSWhy discount stores are struggling?
 Inability to maintain a strict cost structure
 Limited supplies from large brands
 A faulty understanding of the business
 High rentals
 Pantaloon Retail (India) Ltd’s Brand Factory, Arvind Mills Ltd’s Megamart, Vishal
Megamart, the discount store chain of Vishal Retail Ltd, and Provogue (India) Ltd’s
Promart have been the most prominent players in the field.
2008 The Rise of Discount Stores
 The Loot (India) Pvt. Ltd, which operates The LOOT outlets, Krishna
Group’s The Grab Store and Prateek Apparels Pvt. Ltd’s Coupon started
in 2008.
 Profit margins of a discount retail format are much less than a full priced
retail store, the higher sales volumes in a discounted format compensate
the cash flow. The profit margin in a discount retail chain is 6-10%
Point MEGAMART COUPON
Started 1995 2007
No. of outlets at peak 220 14
What went wrong? Dependence on other bands to supply unsold
stock
Could not raise funds for expansion and was
acquired by brand factory in 2013
Current status Positioned on value fashion platform Merged with brand factory
No. of outlets today 83 value fashion and 55 discount stores being
scaled down
Nil
Point THE LOOT VISHAL RETIAL PROMART
Started 2004 2004 2007
No. of outlets at peak 150 175 Two
What went wrong? Cash flows issues, unreliable
supply, frenetic expansion
Accumulated debt of Rs. 730
crore
Supply from large brands was
difficult due to the 08 crisis
Current status Banks auctioned properties
owned by THE LOOT
Was acquired by TPG and
Shriram Group in 2001
Sold out to Vemb lifestyle in
FY10

TYPES OF RETAILERSB: Based Marketing Strategy
Why kirana stores are still popular in India?
kirana stores are still the best preference for some set of people/ families:
Micro-credit Flexible quantity Low rental Ancillary services Social connect
MOM & POP STORE The term "mom and pop shop" refers to a small, independent business
selling merchandise of day to day use.
The main features of mom & pop store are as follows:
1. Small amount of business volume
2. Business only in a single location
3. Operated by the same family for generations
4. Handful of employees (family members)
Convenience Stores

SPECIALTY STORE
 Retail outlet that focuses on selling a particular product range & associated items.
 Most specialty store business operators will maintain considerable depth in the type of
product that they specialize in selling
 Usually premium prices & provide higher service quality and expert guidance to
shoppers.

SPECIALTY STORE
Specialization and Expertise Lack of Variety Staffing Reliance on Market
Retail outlet that focuses on selling a particular product range & associated items.

WAREHOUSE STORES
 A warehouse is a retailer that offers a limited assortment of food and general
merchandise, with limited services, at low prices to ultimate consumers and small
businesses.
1. A membership or membership fees is required
2. Offer a no-frills experience
3. It appeals to price–conscious consumers
4. Products are not properly displayed
5. Brands may be temporarily or permanently out of stock

Where should a Mall focus in order to drive satisfaction and loyalty?
THE FOUR ATTRIBUTES OF MALL SATISFACTION AND LOYALTY
Discovery
Attractive
Diversity of stores
Restaurants
Unique products
Special event
Environmentally
conscious
Comfort
Cleanliness
Maintenance
Safe
Sanitary
Navigation
Location
Layout
Clear signage
Accessibility
Parking
Vicinity
A successful shopping mall must have an appropriate blend of all attributes. But
when it comes to creating loyal mall patrons “Discovery” is the most important
attribute, far outweighing all other experience factors.
SHOPPING MALL A shopping mall in which one or more buildings form a complex of
shops representing merchandisers with interconnecting walkways that
enable customers to walk from unit to unit.

SHOPPING MALL A shopping mall in which one or more buildings form a complex of shops representing merchandisers with
interconnecting walkways that enable customers to walk from unit to unit.
• Advantages of Shopping Malls
• Many types of stores within one
location
• Merchandise assortments available
within those stores
• Opportunity to combine shopping with
entertainment
• Attract many shoppers
• Large trade area
• Generate significant pedestrian traffic
• Inexpensive form of entertainment
• Customers don’t have to worry about
weather
• Disadvantages of Shopping Malls
• Occupancy cost are higher than those
of strip centers, freestanding sites,
most central business districts
• Retailers may not like mall
managements control of their
operations
• Strict rules governing store displays
and signage
• Competition within shopping centers
can be intense
• Similar merchandise sold in a close
proximity

TYPES OF RETAILERS
C: e-tailers
A business that uses an electronic network such as the internet to sell its
goods or services to the customer for personal, non business use”
 India’s e-tailing growth drives
1. Annual disposable income per household to grow by two-and-a-half times by 2015
2. Proliferation expected in the sales of PCs, tablets and smartphones
3. More Indians increasing time spent online
4. Probability of growth in internet user base, mirroring that of the voice user base
5. Increase in the number of payment options.
6. Considerable rise in the number of internet users
7. Proliferation of internet-enabled devices
8. Favorable demographics
 India’s e-tailing challenges
1. Low average broadband speed and flat average internet speed cause for concern
2. Online payment landscape marred by low penetration of credit and debit cards
3. Absence of e-Commerce laws
4. Low entry barriers leading to reduced competitive advantages
5. Shortage of manpower
6. Customer loyalty

• Marketing and promotion agencies
• Entrepreneurs – Application
developers, bloggers, third-party
website owners
• Search engines
TECHNOLOGY
- Web designers & developers
- IT professionals
- Freelance developers
- SMEs in technology solutions
space
- Hardware/software providers
PAYMENT GATEWAYS
- Banks
- Credit card companies
- Telecom operators
PHOTOGRAPHERS, CONTENT
WRITERS, STYLISTS & MODEL
Warehouse Owners
Packaging Material Suppliers
Technology Device Suppliers
Merchandise Supplier
Vendors
Freelance Designers
Boutiques
Airlines (Domestic cargo)
Third Party Logistics (3PL) providers
Customer Care
•Call Centers
•Telecom Operators
CUSTOMER WEBSITE WAREHOUSING MERCHANDISE
MARKETING
THE E-TAILING ECOSYSTEM AND KEY STAKEHOLDERS

Merchandise
Seller
Technology
Marketing &
Promotions
Payment
Gateway
Warehousing Logistics Packaging Others Margin
Share 65% 6% 8% 2% 4% 7% 2% 3% 3%
0%
10%
20%
30%
40%
50%
60%
70%
REVENUE SPLIT OF E-TAILERS

TYPES OF RETAILERS
C: e-tailers
Key Skillset Requirements in E-tailing
CREATIVE - WEB DESIGN AND DEVELOPMENT
Role  Skillset Requirements
• Proficiency in visual arts, flash, animation, etc.
• Knowledge of web design software
TECHNOLOGY - WEB DESIGN AND DEVELOPMENT
Role
 Skillset Requirements
• Understanding of different technology platforms
• Programming language skills
• Software and tools – Web analytics, statistical, BI, etc.
ONLINE MERCHANDISING Skillset Requirements
• Understanding of merchandising and category management
• Knowledge of online trends and how consumers shop online
• Creative flair, with ability to design web content
Role
CONTENT AND PHOTOGRAPHY
• Creative/copy writing, editing and proof
reading skills
• Visual art skills with proficiency in
photoshop, corel, flash, etc
Role
Search Engine Optimization (SEO)
• Understanding of SEO tools and techniques, on and
off page activities, social media optimization, etc.
• Sound technical knowledge
Role

TYPES OF RETAILERSC: e-tailers
SPECIFIC E-COMMERCE PLAYERS IN INDIA
Travel
• MakemyTrip
• Goibibo
• Yatra
• IRCTC
• Cleartrip
Real Estate
• MagicBricks
• CommonFloor
• 99acres
• Housing
Fashion
• Jabong
• Myntra
• YepMe
• Zovi
• FashionandYou
Furniture
• FabFurninsh
• Pepperfry
• Urban Ladder
• Zansaar
Health
• Healthkart
• LensKart
• Portea
• Medical
Education
• EduKart
• Meritnation
• Edureka
• Toppr
• embibe
43%
37%
14%
24%
19%
14%
0%
10%
20%
30%
40%
50%
Jan-15 Jan-16
MarketShare%
Churn in the Marketplace
Flipkart Amazon Snapdeal
 Though Flipkart has lost market share, it
remains the leader by margin primarily
due to strong presence in fashion.
 Amazon India has gained market share
among horizontal etailers, dislodging
Snapdeal from the second slot.
 Snapdeal is focusing on monetizing its
existing customer base through
payments online, travel, food and grocery
delivery.

1. According department of industrial policy and promotion (DIPP), a
marketplace model is an information technology platform run by an e-
commerce entity on a digital and electronic network to act as a
facilitator between buyer and seller.
2. MPM companies cannot own inventories of goods and services and
sell directly to consumers using online platforms.
3. MPM companies will be allowed to provide support services to sellers
on their platform such as warehousing, logistics, order fulfilment, call
center and payment collection.
TYPES OF RETAILERSC: e-tailers – MARKET PLACE MODEL
1. Audience is Massive
2. Trust is provided by rating
3. Transparency
4. Marketplaces for all tastes
5. Marketplaces have SEO experts
6. 24/7 and 365 days
7. Promotion & Customer service
1. Shipping costs are higher
2. Fragmented vendors
3. Requires excellence in Logistics
ADVANTAGES
DIADVANTAGES

 An aggregator is a business that doesn't produce product, but gathers products or information
from different sources and presents them on a platform like website or mobile app.
 Aggregators could be market creators providing a digital environment where buyers and sellers
can meet and transact or transaction brokers.
 Their revenue model is generally based on transaction fees for enabling or executing the
transaction and value proposition is convenience, on-demand and cost effectiveness for the
consumer.
TYPES OF RETAILERSC: e-tailers - AGGREGATOR MODEL
An American travel website
company providing reviews
of travel-related content.
Zomato is a restaurant
search and discovery
service. Founded in India.
India's biggest online movie and
events ticketing brand.
Indian online travel company
Ola, is an Indian online
transportation network
company.
The success of these ventures depends on the simplified experience they can provide to buyers, sellers, and
even the employees.
American MNC e-commerce
Co; providing c2c &b2b sales
services.
Global mobile food
delivery marketplace HQ
in Berlin.
India's number 1 bus ticketing
reservation platform.

 In an inventory model, buyers purchase goods directly from the
website belonging to a business.
 Control of the product enables a superior post purchase consumer
experience. If you have the product in your control, then
1. Have visibility into your stock level,
2. know where the product is physically located, and control the pick,
pack and ship process.
3. It also means that you can optimize dispatch time.
TYPES OF RETAILERSC: e-tailers – INVENTORY MODEL
The bottom line is that being in control of the product enables you to deliver
faster and with higher accuracy, and respond effectively to customer inquiries
about shipping status.
 Direct communication between buyers and sellers
 Privacy of numbers and other personal details
 Any concerns of site-visitors can be resolved immediately.
 The buyer can know exactly what the customer is looking for.
 Build of trust between the vendor and seller
e-store with delivery in 2008. Consumerelectronicsand durables. Men's ethnic wear.
By Vedant Fashions
Largestbookstore.
BRICKS AND CLICKS
A business model by which a
company integrates both offline
(bricks) and online (clicks) presence.
According to the FDI policy, “Inventory
model of ecommerce means an
ecommerce activity where inventory of
goods and services is owned by e-
commerce entity and is sold to the
consumers directly.”
Advantages of Inventory Model

Govt. defines e-commerce marketplace rules, allows 100% FDI.
 100% (FDI) in online retail of goods and services under the so-called “marketplace
model” is allowed through the automatic route, seeking to legitimize existing businesses
of e-commerce companies operating in India.
 So far, India has allowed 100% foreign investment in business-to-business (B2B) e-
commerce but none in retail e-commerce—i.e., business-to-consumer, or B2C.
Mar 30 2016
Flipkart’s largest seller WS Retail Services Pvt. Ltd easily generates more than 25% of
the company’s sales while Cloudtail India Pvt. Ltd, the biggest seller on Amazon India,
contributes even more.
Cloudtail India, a joint venture between Amazon.com Inc. and N.R. Narayana Murthy’s Catamaran
Ventures, is now the key growth driver for Amazon India, generating at least 40% of the
company’s sales.

SERVICE RETAILING
“A service retailing is any act or performance
that one party can offer to another that is
essentially intangible and does not result in
the ownership of anything.”
CHARACTERISTICS OF SERVICE RETAILING
1 Intangibility—Customers can’t see, touch, or smell
Intangibility signifies inability of seeing, feeling, touching and weighing, services
are intangible and do not have a physical existence. Therefore customers can’t
see, touch, or smell service.
 In case of tangible products a customer can inspect
and judge the product, however this may not be
possible in case of services.
Individuals spend more than 50 percent of all personal consumption expenditures on services.

1 Intangibility—Customers can’t see, touch, or smell
SERVICE HOW IT IS DONE? (BY DEVELOPING ABSTRACT IDEAS)
Banking Anticipate consumer needs, simplify the experience, and learn from every
interaction and maintain customer’s trust and belief.
College
Education
By providing a conducive learning environment in terms of Library, Computer
Labs, Interactive Learning, Recreational Facilities, Hostel facilities, Classrooms
and Lectures.
Movie
Theatre
Offer a exceptional consumer experience through state of the art projection and
sound systems, unique ambience, e-booking, specialty food, which can be
ordered and delivered on ones seat!
Credit Card By offering services and benefits based on customer lifestyle
Insurance Developing trust, offer the best value for money, and set the standards in
dealing with customers.
In order to demonstrate the tangibility of a services firms assess
the customer's perception of an experience and derive a clear
picture of customer expectation from the service and also craft a
set of enforcements and provide physical cues to reassure the
customer experience.

2 Perishability—Customers have to use it or lose it.
The perishable nature of services creates difficulty
for both customer and marketers.
Perishability refers to feature of a service that makes
it impossible store, return or resell, thus services are
highly perishable compared to physical products.
Christopher H. Lovelock well know author of
Services Marketing says,
 “Lost opportunity in a service business is
rather like having a running tap in sink with
no plug. The flow is wasted unless customers
or their possession that require servicing are
present to receive it”.

TECHNIQUE DESCRIPTION CASE-IN-POINT
Flexible pricing
This involves charging a higher price
during peak season and low price
during off-peak periods.
Movie theatres like PVR, Fame, Fun cinemas and Inox
charge more for movie tickets and snacks on weekends
and public holidays and prices are slashed on
weekdays.
Capacity
management
In this technique marketers adjust their
offerings in an attempt to match
demand.
Wonder-La an amusement park in Bangalore operates
all rides on weekends and holidays where as on
weekdays some of the rides are put on hold, further
for each ride to operate a minimum number of
audience are required.
Non-peak
demand
This involves stimulating demand
during off-peak hours when power
demand is usually low.
Café coffee day has come up with concept of chat
over breakfast and a good coffee. MacDonald’s has
recently launched breakfast service (7am to 10:30am)
to stimulate demand during off-peak hours.
Complementary
services
They are designed and offered to
provide alternatives to avoid rush.
BSNL offer many channels for bill payments such as
internet, mobile, ATMs collection centres etc. Most of
the banks have an ATM attached to bank.
Reservation
system
This involves an arrangement whereby
the service is reserved for the
customer.
Airlines, and railways use reservation systems to
effectively to manage the demand levels.
Techniques to encourage demand for the service during slack times
2. Perishability—Customers have to use it or lose it

3 Variability—Lack of consistency in service performance
Variability characteristic of a service explains inability of services providers to
offer same level of service consistently, this means that even the same service
performed by the same individual for the same customer can vary.
Thus element of variability in services is quite common on account
of a large measure of the “human element”
Zinger burger offered in all the
outlets of KFC are almost
identical. However, when it
comes to services rendered by
counter staff it may vary.
A lecturer teaching a same
subject for different section
may not be able to deliver
uniformity in the content.
VARIABILITY IN SERVICES

The following are some of the measure to overcome service variability
3. Variability—Lack of consistency in service performance
By adopting good human resource management practicesStrategy 1
• Recruit right candidates and also adequately provide training, commission based salaries to develop
customer orientation in employees.
Standardizing service delivery:Strategy 2
• This involves use of strategies like First time right, flowcharts and standard operating procedures to
guide service providers in offering a uniform level of service and guaranteed results.
Understanding customer:Strategy 3
• Understanding customer and responding to their needs is the heart of the servicing process, Marketer
should be highly concerned about customer satisfaction.
Feedback and Follow up:Strategy 4
• The outcome of response collected from the respondents (Customers) can be represented in form of a
graph, chart or map which will help marketer to understand satisfaction level of the customer and take
appropriate actions.

4 Inseparability—Produced and Consumed simultaneously
The characteristic of a service that means that it is impossible to separate the
production of a service from the consumption of that service.
On account of technological advancement the skill and expertise of
doctors, cooks, beauticians, lecturers and the other service provider
can now be detached—meaning they can made available on internet,
phone etc.

CLASSIFICATION OF SERVICE RETAILERS
Service can be classified according to whether the service
delivery is people based or equipment based, even though
most services involve both elements to some degree.
People Based Versus Equipment Based1
Customer can have personal contact with the
service provider without being physically present.
Degree of Customer Contact2

FORMS OF RETAILING BASED ON OWNERSHIP
Mohammed Umair INTRODUCTION TO RETAILING
Independent
Retailer
Existing Retail
Business
Corporate
chains
Network
Marketing
Franchise
Model
1. In independent retailer is one who builds his/her business from
the ground up.
2. From the business planning stage to opening day, the
independent retail owner does it all.
3. He/she may hire consultants, staff and others to assist in the
business endeavor. The opportunities are endless.
Someone who inherits or buys an existing
business is taking ownership and
responsibility of someone else's hard
work. The foundation has already been laid.
Existing Retail Business
Dealership
Model

Mohammed Umair INTRODUCTION TO RETAILING
Corporate chains
A retail chain is a company operating multiple retail units under common ownership and usually has
centralized decision making for defining and implementing its strategy.
1 |Reliance Retail Limited | Establishment – 2006
A part of Reliance industries. It offers complete retail solutions such as food items, lifestyle, fashion,
consumer electronics products, home decorative products etc. The company has a total of 1500 outlets
in the country.
2 | Future Group
Corporate office | Establishment – 1997
The hypermarket chain, Big Bazaar, department store chain, Central, outlet stores chain, Brand Factory, sportswear chain, Planet
Sports, home improvement and consumer durables chain, HomeTown and Ezone, supermarket chain, Food Bazaar, convenience
stores chain, KB’s.
3 |Provogue India Ltd| Establishment – 1997
It is a lifestyle and fashion company. The company’s offering include men’s wear, women’s wear, fashion
accessories, apparel and numerous other products. It has over 250 stores all across the country.
4| Shoppers Stop| Establishment – 1991 |
Shoppers Stop is a well known name in retail industry in India and ranked among the top retail
companies in India. The company is operated and managed by K Raheja Corp Group and was
incorporated in year 1991. It has total 61 stores in India and offers national and international
brands of apparel, fashion and lifestyle.
Top Retail Companies in India

CORPORATE CHAINS
5 | ITC -LRBD| Establishment – 1910 |
Lifestyle Retailing Business division is a premier clothing retail company in India branding through
Wills Lifestyle and John players. The Company has a diversified range of business activities in FMCG,
Hotels, Paper board, Packaging and Agriculture.
Top Retail Companies in India
6 | Trent Ltd. | Establishment – 1998 |
Established in 1998 and part of the Tata group, Trent operates Westside, one of India’s largest and fastest
growing retail chains; Star Bazaar, a hypermarket chain and Landmark a family entertainment format store.
7 | McDonald’s| Establishment – 1940 |
McDonald is leading global food service provider which has existence in more than 130 countries
worldwide. The company started India operation in 1996 and has more than 300 food chain restaurants in
the country.
8 | Aditya Birla Retail| Establishment – 2006 |
Aditya Birla retail limited is a subsidiary of Aditya Birla group established in year 2006 which owns over
500 supermarkets and 15 hypermarkets.
9 | Titan Industries| Establishment – 1984|
Titan is joint venture between Tata group and the Tamil Nadu Industries development corporation
established in year 1984. Titan is dominating the Indian Watch Industry since then and become global
international brand. Titan also has a great retail presence in jewellery business and its brand Tanishq is
one amongst the top retail jewelry in India.

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Mohammed Umair | M.Com, PDGBA, NET
umairsunni@gmail.com
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Introduction to retialing

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