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Retailing

Retailing. Retail is the sale of goods to the end users, not for resale, but for the use and consumption of the purchaser. Retail Industry in India is the second largest employer after Agriculture. It contributes to 10 % of GDP and 6-7 % of the Employment. Organised Retailing – .

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Retailing

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  1. Retailing Retail is the sale of goods to the end users, not for resale, but for the use and consumption of the purchaser. Retail Industry in India is the second largest employer after Agriculture. It contributes to 10 % of GDP and 6-7 % of the Employment

  2. Organised Retailing – USA 80 % Western European Countries 70 % Argentine 40 % Thailand 40 % China 20 % Malaysia 20 % India 06 %** ** FDI (Foreign Direct Investment is allowed partially) Country Wise Share:

  3. Top 7 Global Retailers

  4. Corporate- Indian Retail

  5. Growth of organized Retail in India • Organized Retail is 5.5 % of the total Retail Industry and expected to Grow by 10% by 2012. • Increasing Consumer aspiration • Growing no of Nuclear families • Growing Size of working women segment • Demand from tier II and III cities and rural markets. • Large young working Population

  6. Staples Share in Retail Store

  7. Buying Behaviors Staples Any item that is washed before cooking, the consumer prefers to buy it loose as it’s economical. Items such as Dals, Rice & Wheat mostly sells In loose. Dals - No National Brand, all are Pvt label of the Retailers. Items like Atta, Edible Oil, Powered Spices, salt etc is sold in packets (Branded), because of its Hygienic aspect.

  8. Plano- Category Wise Stacking North Stacking from Left To Right Stacking from Top to Bottom Cont….

  9. Plano – Bay Allocation for 32BM

  10. Pulses Mix in Modern Retail Major dal - 85 % Toor, Urad, Moong and Chana, Kabuli and Masoor Minor dal - 15 % Green peas, White Peas, Chitra, Red, Sharmili, Lobia, Soyabean, Moth,

  11. Pulses Assortment

  12. Pulses Sales Mix - India

  13. Weekly Buying Behavior Monday : 11% Tuesday : 12% Wednesday : 11 % Thursday : 11 % Friday : 16 % Saturday : 20 % Sunday : 19 %

  14. Supply Chain & Sourcing Bulk Origin Bulk Warehouse Packing Centre Material Flow Store 1 Indent Flow City Distribution Centre Store 2 Store 3 Store 4

  15. Buying of Dals • Small retailer Store: • Buying locally • Buying at High Price. • Lack economies of Scale • Bigger Retail chains: • Buy from origins. • Better quality and quality Consistency. • Definite demand, makes buying Easy. • Better bargaining Power. • Can work in Positions if market is bullish. • If market drops: loss of profit/ Averaging of Bulk Price.

  16. Pricing Policy

  17. Teji - Mandi in Retail Effects are mild – since we operate Pulses Basket Gestation period ( Bulk Buying to supply at store – 10 days) Weekly Benchmarking and Price Change MRP Restrictions In Teji : Unable to take full advantage In Mandi : Buying cost goes down margin increases. Easy to Average ( Since Throughput is high) Loss of profit.

  18. Problems / Challenges Getting low income groups to shop at our Stores i.e drivers, maid, labourer High cost of Real estate. Lack of adequate infrastructure, poor roads, Cold chain, Lack of availability of skilled manpower. Unavailability of uniform quality raw material round the year. Govt Regulations, PFA, Package Commodity Act, Weights & Measures, Factory Act. etc. Price war among Retailers

  19. Thank You

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