Page 35 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes  The atmospheric conditions are good and time, energy, money can be saved. They likely
to purchase readymade foods like curries, instant idli, zalebi mix; Butter, Cheese what else
all needs fulfilled in readymade mode.
 India has a long tradition of eating away from home, at a plethora of roadside eateries,
snack shops and loading places.

 Due to the double income of couple they like to have the outside food, thereby they will
get the enjoyment, saving time etc.
 But is only in recent decades that an organized, institutional food service sector has started
to develop, requiring longer-scale and more organized supply chains.

2.10 Keywords

Economies of Scale: The increase in efficiency of production as the number of goods being
produced increases.
Liberalisation: The removal or reduction of restrictions or barriers on the free exchange of
goods between nations.
Organised Retailing: It refers to trading activities undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc.

Porter’s Five Forces Model: This model identifies and analyzes 5 competitive forces that shape
every industry, and helps determine an industry’s weaknesses and strengths.
Supermarket: A large self-service store selling foods and household goods.

Suppliers: They are the businesses that supply materials and other products into the industry.
Switching Costs: The costs incurred when a customer changes from one supplier or marketplace
to another.

Unorganised Retailing: It includes the traditional formats of low-cost retailing, for example, the
local kirana shops, owner operated general stores, paan/beedi shops etc.

2.11 Review Questions

1. Compare and contrast organised and unorganised retail in India.

2. Do you think organised retail can overtake unorganised retail in India? Why or why not?
3. Discuss how the organised retail evolved in India? Use examples to support your discussion.
4. Comment on the supermarket and the mall revolution in urban towns of India.
5. State the factors that are driving the retail expansion in India.
6. “Retailing is the only business where one buys in credit and sells for cash.” Has this
helped in the expansion of retail in India? Explain.
7. Describe how clothing and fashion retailing expanded in India?
8. How is the books and music retail market growing in India?

9. Discuss the challenges that the Indian retail industry is facing. How are these challenges
affecting Indian retail?
10. Explain why organised retail is here to survive in India?

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