Management of the Retail Industry
Retailing is not only important for economic activity but also an important part of our life. Although trading of goods has been in existence since the olden days it is only in the recent past that buying & selling of goods has become more of a formal & brand dominated activity Thus Retail industry has established its strong footprints to attract maximum customers by using innovative technology, a variety of services, managing the customers.
Meaning of Retail Industry
There are many approaches to understanding & defining retailing mostly focusing on the business activity of selling goods& services to the final customer.
Definition of Retail
“Any Business that directs its market efforts toward satisfying the final consumer needs by offering goods & services as a means of distribution”.
As per the above definition, a retailer is a middleman or distributor who is at the end of a chain and directly interacts with the customer by understanding his needs
Retailing word is derived from the Old French word Retailer ( A piece or to cut up). This means to acquire the whole stock of goods which they divide into smaller quantity which is sold to individual customers
Retailing
It involves various activities i.e it is a set of business activities that adds value to the product & service sold to a consumer. Retailing is carried out by retailers who try to satisfy consumer needs by providing a better link between manufacturer & consumer. Over a period of time retailing has gone through various changes that carry out the following functions
A. They act as an interface between the customers & the manufacturer by providing various services.
B. A retailer sells a small number of various types of goods
C. Retailers try to provide various services like
- Suitable location
- Credit Facility
- Home delivery
- After sell service
- Various discounts & offers
- Use various technologies
D. He offers a lot of choices in terms of size, brand & few customized services to the customer
Reasons for the growth of retailing in India
The retail industry has undergone an evolutionary change. This change is visible in the form of branding retail space, retail chain, and modern techniques so as to serve the customer in a better fashion. Retailing in India has great opportunities for international industries like Wal-Mart, and Tesco. India is ranked in the world as the most attractive market for global retailers to enter
Reasons for the fast growth of retailing in India.
1. More than 52% of the population is less than the age of 25.
2. This young population has a high potential to spend on consumption.
3. The average household income in urban areas has grown.
4. Growth in a number of double-income families.
5. Increased usage of credit & debit card facilities.
6. Improvement in standard of living.
7.The rising workforce who travel globally or work outside India.
8. Exposure to the brands & products through electronic media.
9. A Younger population who is comfortable transacting online retailing.
For more articles related to retailing click here
