Basics of Retailing Practical-1 PDF

BASICS OF RETAIL
OPERATIONS
PRACTICAL-1
SRI RAMA ROHAN BBA RETAIL MANAGEMENT AND
9/13/20
CHAKKA E-COMMERCE
etailing refers to all activities
R involved in selling the goods or

services to the final consumers for
personal or non-commercial usage. In the
recent times, as the retail markets have
developed its form customers are getting
more & more attracted
towards Retail Markets. Change in income 2006 2020
structure, consumer tastes & preference,
demographic & geographic profile are some of the key factors that
are driving towards growth in Retail Business.
There is a rapid growth of population these days. The population in

2030 and 2050 is expected to be 1.5 billion and 1.7 billion respectively. In
the below picture, we can see that India would be the most populated
country in the world by 2050. This will lead to rise in consumption and thus
urges the need to have a strong and developed retail sector. Retail outlets
offer a wide variety of products & services to the customers to meet their
demands thus resulting into the growth of Retail Sector. Rising population
is also the reason behind why developing countries want to put more FDI
in the Indian Economy. On August 28th 2019, the government allowed
100% FDI into retail sector.
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Advance technology has made it easier for the retailers to handle
large scale business & cater the needs of consumers. With the
introduction of computerized billing system, electronic media & marketing
techniques, barcode system has changed the face of retailing in providing
products & services to customers. Also, the use of online market has
driven the retail sector towards advanced growth structure.
Increase in the number of working population has resulted in

increase in the income structure in urban as well as rural areas.
Nuclearization of families these days resulted in reducing expenditures
and thus increasing their disposable income. People nowadays tend to
adopt to western lifestyle by trying new things & improve their look thus
increasing the spending habits & giving an opportunity to grow & expand
retailer’s business.
The above graph clearly shows that the Gross Household

Disposable Income kept increasing constantly every year and has
reached up to 130 million approximately in 2018. This implies that the
consumption also will rise constantly.
Today’s Indian Retail market has entered in rural areas creating a

big competition, as the rural population has become more literate & quality
conscious. These high potential rural populations have thus enabled the
retailers to enter rural market & develop new products & strategies to meet
their demands. Also, it has created employment opportunities for the rural
people thus heading towards growth & development.
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The Rural Tech Project aimed at developing the technology in rural areas
and had succeeded very well in the past few years. This can be told as
the driving factor of growing retail in rural areas also.
Organised retail deals in high volume and are able to enjoy

economies of large-scale production and distribution. They eliminate
intermediaries in distribution channel. Organised retailers offer quality
products at reasonable prices. Example: Big Bazaar, Dmart. The retail
sector nowadays has such a wide scope that it gives opportunity for profit
and attracts new business groups for entering into this sector.
EXAMPLES OF ORGANISED RETAIL
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Consumerism is an idea that encourages the acquisition of goods
and services in ever-increasing amounts. With the emergence of
consumerism, the retailer will get a more knowledgeable and demanding
consumer. As the business exist to satisfy consumer needs, the growing
consumer expectation has forced the retail organizations to change their
format of retail trade.
Apart from the opportunities, there are challenges faced by Retail

industry nowadays too. Customers can prove very demanding and they
are increasingly looking for unique experiences that allow them to build
and customize their own products. Shoppers want interaction,
memorable experiences, fast and quality services. Thus, there is a need
for customisation.
When transitioning between online and in-store experiences,

customers not only want the same products to be available, they also
want their experience to be seamless. This means, if they are a regular
online customer, they want to be treated like a regular customer when
they visit a brick-and-mortar location. If they made an online purchase
earlier in the day, the in-store systems should already have a record of
it.
Operating a retail business is undoubtedly a hard job, and

managing internal communication is no exception. The complexity of this
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process will depend on the size of the business, how many stores there
are, the number of workers.
The biggest challenge for manufacturers is aligning with the right

channel partner. A channel partner is a company that partners with a
manufacturer or producer to market and sell the manufacturer's products
and services.
Collection of revenue is also a huge challenge for big companies. For

instance, they might enter a transfer pricing agreement with retailers. This
means they push their goods to retailers for a certain cost, and demand
the retailers pay them within the credit period. They don’t focus much on
how the retailer recovers his cost and profit. If the retailers are not able to
sell and earn profits, its difficult for them to repay back within credit period.
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BASICS OF RETAIL

R involved in selling the goods or

There is a rapid growth of population these days. The population in

Increase in the number of working population has resulted in

The above graph clearly shows that the Gross Household

Today’s Indian Retail market has entered in rural areas creating a

Organised retail deals in high volume and are able to enjoy

EXAMPLES OF ORGANISED RETAIL

Apart from the opportunities, there are challenges faced by Retail

When transitioning between online and in-store experiences,

Operating a retail business is undoubtedly a hard job, and

The biggest challenge for manufacturers is aligning with the right

Collection of revenue is also a huge challenge for big companies. For

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