 Retailing can be defined as a set of business

activities involved in selling goods and services to

consumers for their personal, family or household
use. Barter System was known as the first form of
retail.
 It is world’s largest private industry with annual
sales over $6600 billion.
 In commerce, a "retailer" buys goods or products in
large quantities from manufacturers or importers,
either directly or through a wholesaler, and then sells
smaller quantities to the end-user.
 Retailers are at the end of the supply chain.

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 Retail Functions in Distribution
Final
Manufacturer Wholesaler consumer
Retailer

A Typical Channel of Distribution

Manufacturer
Brand A Brand A
Wholesaler customers
Manufacturer
Manufacturer
Brand B
Brand
BrandBB
Retailer customers
Manufacturer
Manufacturer Brand C
Brand
BrandCC customers
Wholesaler
Brand D
Manufacturer
customers
Brand D
Retailers role in sorting process
 Retail Functions in Distribution
contd..
Retailers often act as the contact between manufacturers, wholesalers, & customers.
Retailers collect an assortment (variety) from various sources, buy in large quantity, & sell
in small amount. This is sorting process.
Retailers communicate with customers, wholesalers & manufacturers.
Shoppers learn about the availability & characteristics of goods & services, store hours,
sales etc., from retailers advt., sales people & displays.
Manufacturers & wholesalers are informed by their retailers with regard to sales forecast,
delivery delays, customer complaints, defective items, inventory turnover and so on..
Many goods & services have been modified due to retailer feedback.
For small suppliers, retailers provide assistance by transporting, sorting, marketing,
advertising, & pre-paying for the products.
Retailers also complete transactions with customers i.e., having convenient locations,
filling order promptly & accurately, & processing credit purchase.
Some retailers also provide customer services such as gifts wrapping, delivery, &
installation.
To be more appealing, many firms engage in multi-channel retailing i.e., multiple point of
contact like physical stores, websites, mail-order catalogs etc.
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•Organized retailing comprises mainly of modern retailing
with busy shopping malls, multistoried malls and huge
complexes that offer a large variety of products in terms of
quality, value for money and makes shopping a memorable
experience.

•Unorganized Retailing-Traditional or Unorganized retail

outlets are normally street markets, counter stores, kiosks and
vendors, where the ownership and management rest with one
person only.
 Comparative Penetration
Of Organized Retail
Organized Unorganized
15%
20%
34%
45%
64% 67%
80%
95%
85% 80%
66%
55%
36% 33%
20%
5%

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Department Store
Supermarkets
Warehouse Retailers
Specialty Stores
E-tailer
Convenience Retailer
Discount Retailer
Dollar Stores
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 Retail In India
Indian retail market is the 5th largest market in the world by
economic value.
Retailing is one of the pillars of the Indian economy and
accounts for 22% of country’s GDP.
Also, employment in Indian retail industry occupies second
place after agriculture and it contributes to 8% of the total
employment.
The first few companies to come up with retail chains were in
textile sector like Bombay Dyeing, S Kumar's, Raymond’s.
Latest research has rated India as the top destination for
retailers for an attractive emerging retail market.
Indian retail is expected to grow 25 per cent annually. Modern
retail in India could be worth US$ 175-200 billion by 2018
end. 13
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The emergence of hypermarkets and supermarkets.
 Continuous improvement in the supply chain
management, distribution channels, technology, backend
operations, etc. that would lead to more of
consolidation, mergers and acquisitions and huge investments.
 Initially the retail industry in India was mostly
unorganized, however with the change of taste and
preferences of consumers, the industry is getting more popular
these days and getting organized as well.
India shows US$ 330 billion retail market that is expected to
grow 10% a year, with modern retailing just beginning.

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Purchasing power of Indian urban consumer is growing and
branded merchandise in categories like Apparels, Cosmetics,
Shoes, Watches, Beverages, Food and even Jewellery, are
slowly becoming lifestyle products that are widely accepted
by the urban Indian consumer.
Indian retailers need to diversify and introduce new formats,
and they have to pay more attention to their brand building
process. The emphasis here is on retail as a brand rather
than retailers selling brands.

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The Indian retail industry is BOOMING.
A number of large corporate houses like the Tata‟s, Raheja‟s,
Piramals‟s, Ambani‟s (Reliance) have already made their
foray into this arena.
Today the organized players have attacked almost every retail
category, you name the category and the big players are
already playing in that market.
The Indian retail industry has witnessed too many players in
very short time, crowding several categories without looking
at their core competencies, or having a well thought out
branding strategy.
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