The retail community performs the most crucial role of bringing finished goods to the consumer’s doorstep. It includes all activities involved in selling goods or services to the final consumer. Retailing has been the most dynamic and the most attractive sector of the last decade. While retailing has been present throughout our history, it is only in the recent past it has seen so much dynamism.
Increased Availability of Retail Space, Rapid Urbanisation, and Qualified Human Resources has also boosted the organised retailing growth. India is a Premium Destination for the world’s top global brands and retailers, and the retail sector is keen on reinventing itself thanks to the below points:
- Rising Income
- Change in Consumer Behaviour
- Media Explosion
- Corporatisation of Retail
- New Breed of Entrepreneurs
There is a vast untapped opportunity in the retail sector, having immense scope for new players, driving large investments into the industry and the country. A good talent pool, huge markets, and abundant availability of raw materials at comparatively lower prices will make India lead one of the world’s best economies. The industry is generating huge employments, next to agriculture, the retail sector contributes the highest percentage of employment.
Though much is yet to be achieved, e-tailing (e-commerce) is a comparatively new industry in India. It can achieve explosive growth.
Consumers are looking for convenience in shopping; this would continue strongly in the future as more families become dual-income families. The consumer’s ability to spend will increase, but the time available for shopping will go down. In such a scenario, retailers will have to develop shopping as an experience, and retailers who will be more successful will be those who provide faster service.
During Lockdown, when people were doing most of their work themselves, premiumisation of consumption happened. People moved from conventional products to high-end products, which will continue in the future. Most organised retail played to the opportunity. Modern retail creates formal jobs close to neighbourhoods, too; it also creates gender-neutral jobs.
There are different formats of retailing
- Independent retailer
- Retail Chain
- Retail Franchising
- Co-operative
- Non-Store retailing
Each of the above has its Strengths. We will discuss two of the above.
Independent Retailer :
An independent business is typically called a ‘MOM and POP’ store. Usually, a single shop sometimes may even have a few stores. They would have a name that they would have to establish on their own from scratch. The business would be based primarily on their own skill, hobby or knowledge and is entirely dependent on their own level of skill; it would be their own responsibility to establish the likelihood of success. And for every decision, the buck stops at them.
Retail Franchising:
Franchising is one of the most successful marketing concepts. The primary aim of franchising is the expansion of business. Franchise outlets account for about 40% of the retail sales within the organised sector in developed countries. In India, franchising is growing rapidly after economic liberalisation. The franchisor provides assistance and support for running the franchise. The support may be in the form of training, advertising, pricing, etc. Franchisees have a right to use an Established Tradename, Logo, Marks, Style; it already has a reputation in the market, it provides you with guidance about Location, Store Design, Retail Layouts, the opportunity to use the Latest Technology trends, manage sourcing, Inventory, Merchandising, Pricing, Store Space management, Financial management, Shop management, Performance measures, Customer Relationship Management, Loyalty management Programs, Existing Legal Issues and compliances for business, Manage Staff and the confidence and skill required to operate a business successfully.
Retailers are considered respected members of society, valued by the state and the country for their contribution to the economy. Leading retail professionals are well-rounded individuals with high social consciousness. Retailers serve the community outside their retailing businesses and also within it. For example, many retail companies support local NGO’s and social groups with donations, foodgrains, and other products and services as a means to give back to society some of their profits in the areas they serve.