differtent formats of retailing

8/7/2019 DIFFERTENT FORMATS OF RETAILING

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DIFFERTENT FORMATS OF

RETAILING.BY,

NIKHILA DORA.


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The Indian Council for Research on International Economic

Relations (ICRIER), on the subject 'Impact of Organized Retail on

Unorganized Sector', the retail business is estimated to grow at

13% per annum from US $ 322 billion in 2006-07 to US $ 590

billion in 2011-12.

A report by FICCI on the "Indian retail: on the fast track" shows

that various organized retailers are currently experimenting with

different formats of retail trade. It is difficult to predict which

format will have a winning edge over all others in view of the fact

that the Indian market is yet to mature.


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Classification of retail formats

Store based retailing

Form ofownership

Merchandisedoffered

Non-store

retailing Serviceretailing


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FORMS OF OWNERSHIP

Independent retailer (mom-and-pop): who owns andoperates only one retail outlet. It is managed by the owner& proprietor and few other local hands or family membersworking as assistants in the shop. Many tend to pass fromgeneration to generation.

A chain retailer or a corporate retail chain: when twoor more outlets are under a common ownership it is a retailchain. Characterized by similarity in the merchandiseoffered to the consumer, the ambience, advertising andpromotions. Ex- wills sports(ITC), louis philippe, VanHausen(madura garments), Arrow(arvind mills).

Franchising: a franchise is a contractual agreementbetween the franchiser and the franchisee, which allowsthe franchisee to conduct business under an establishedname as per a particular business format in return for a feeor compensation.


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a product or trade mark francise: where the franchiseesells the product of the franchiser and operates under thefranchisers name. archies.

A business format franchisee: Mc Donalds

Leased departments: these are also termed as shop inshops. When a section of a department in a retail store isleased/rented to an outside party, it is termed as leaseddepartment. A leased department within a store is a goodmethod available to the retailer for expanding his productoffering to the customer.

Consumer co-operatives: a consumer co-operative is aretail institution owned by its member customers. Aconsumer co-operative may arise largely because ofdissatisfied consumers whose needs are not fulfilled by theexisting retailers. Ex- apna bazaar shops in Mumbai andsuper bazaar in delhi.


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MERCHANDISED OFFERS

Can be classified under the basis food oriented,

target marketing, etc.

Convinced stores: they are small stores located near

residential areas- they are open for long hours, seven days

a week and offer a limited line of convince products like

eggs, bread, milk, etc. these types of stores are open till late

nights and not found in India. Some are started comeing up

from petrol pumps like HP speed mart and In&Out sores.

Supermarkets: these are large, low cost, low margin, high

volume, self-service operation designed to meet the needsfor the groceries & other non-food items. This format was

at the forefront of the grocery revolution and today it

controls more than 30% of the grocery markets in many

countries.


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ex- nilgiris, foodworld, subhiksha, foodbazzar and vitan.

Hypermarket: hypermarket is the combination of a supermarket and

departmental stores. 35% selling space devoted to non-grocery

products is termed as a hypermarket. It offers a variety of food andnon-food products like clothes, jwellery, hardware, sports equipments,

groceries, motor accessories, etc.

Specialty stores: the store specialized in a particular type of

merchandise or single product of durable goods( that is home furniture

and household goods, consumer electronics and domestic electricalappliances). Specialty stores usually concentrate on apparel, jewelry,

fabrics, furniture etc. they have a clearly defined target market and

their success lies in serving their needs.

Deparment stores: department stores are those establishments

depending on food, clothing and retail items for at least 10% but lessthan 70% respectively of their sales. These stores have atleast 50

employees and a self service ratio of less than 50%.

they provide special services such as resturants, restrooms, home

delivery, store hours and new type of merchandise display.


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Off price retailers: the products are sold in less than

retail price. Off price retailers buy manufactrers seconds,

overruns and off season at a deep discount. ex- pantaloons

factory outlet, levis factory etc.


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NON-STORE RETAILING

Direct selling: direct selling inolves making a personal contact

with the end consumer, at his home or place of work. Cosmetics,jwellery, food and nutritional products, home appliances and

educational materialsand some of the products sold in this manner.

Ex- modicare, amway and herbalife have been encourageing men in

their salesforce.

Direct response marketing: direct response marketing includesvarious non-personal forms of communication with the consumer

like:

television retaling.

e-tailing.

Mail order retailing Television shopping.

Electronic shopping.

Information kiosks.

Vending machines.


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SERVICE RETAILING

Banks.

Car rents.

Services.

Contracts.

Providers of various services.


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