Organized Retailing Chapter 1.introduction serial 10
Introduction
Theg n india is one of the biggest sectors witnessing tremendous transformation.Ine Indian retail industry is fifth largest indstry and second largest employer arter
agriculture offering bright and exciting career opportunities.
Indian marketing system is transformed fromancient market to modern market. Ancientmarketing where trade was conducted bybarter system for example, a farmer whogrew 500 kg of wheat would keep 100 kgneeded other things, viz., clothes, utensils,pulses, salt, etc. He would thereforeexchange the balance 400 kg wheat withother people who made or produced otherthings. Trade also took place in village
markets or Haats where people exchanged goods with each other.
Whereas in modern marketing money is used to buy daily needed things. Now a day'sthings which are of daily needs available at nearest shop. This is because it is nolonger possible to approach all the people who manufacture the goods you needdirectly. Also with improvement in transport system, goods that are manufactured faraway, even overseas, are available in your neighbourhood.
Meaning and Importance of Retailing
It is first thing to understand meaning and originof retailing. The term 'retail' is derived fromFrench word 'retailer' which means to 'cut-off apiece' or to break the bulk'. Now we see the termretail, to refer as a business activity to sell thegoods in small quantities as per the requirementsof the customers. Retailing is seen as the finalstep in the distribution of products forconsumption of end users. Therefore, it includesall the activities involved in the marketing ofgoods and services directly to the consumers fortheir personal or household consumption. Forinstances, we often see the kirana shopkeepers undertaking various activities ofretailing in our localities.
The purpose of Retail business is tosell goods and services to the endUsers for their personal orhousehold consumption at the righttime and at the right place.
The person who does this businessactivity in a small quantity or onewho repeats or relates is a Retailer.
Retailing business is now not the same as in the past. Retail business is undergoingrapid transformation in its marketing practices. Til a few years ago, we boughtmost items of daily use from small shops in our neighborhood or a marketclose by, These shops such as Kirana stores or general stores are owned byindividuals. who usually sit in the shop themselves and sell their goods withtho beln of a few assistants. In the last few years, however, the concept of
large departmental stores and malls has been introduced, which also providewith the same products.
To-day, the traditional formats like hawkers, grocers and paan shops co-exist withmodern formats like super-markets, departmental stores, hypermarkets, shoppingmalls and non-store retailing units such as multi level marketing and teleshopping.Retailer's ranges in size from small, independent and owner- operated shops tonational and international giant categories. The increasing income levels, newproducts, standard of living, competition in the market and increasing consumptionpatterns have contributed for the demand creation of these varied stores.
On the other side, with the advancement of IT and communication, electronic-retailing became a reality to create a platform to the sellers to sell their productsthrough television channels and internet for which payments can be made throughonline payments or e-banking. With changing needs and wants of consumer thegrowth in retail sector is inevitable and promising fast paced and exciting careeroptiors.
This unit will focus on introduction to retail business, its significance and theemergence of various formats in retailing. The four sessions will cover anunderstanding of the concept of retail business and functions performed by a retailer,he basis of classifying retai ling into store and non-store retailing. In order toifferentiate the various types of retail formats the organized and unorganizede tailing. The last session looks into the major Indian and Global retailers.
