Page 62 - DMGT550_RETAIL_MANAGEMENT

Unit 3: Types of Retailer

3.14 Summary Notes

 A retail business that sells products or services that appeal to customers’ needs has the
ability to stand up against competition.

 Price, convenience and store experience are functional characteristics that make up a strong
retail brand.
th
 The latter half of the 20 Century, in both Europe and North America, has seen the
emergence of the supermarket as the dominant grocery retail form.
 Saturated home markets, fierce competition and restrictive legislation have relentlessly
pushed major food retailers into the globalization mode.
 The global retail industry has travelled a long way from a small beginning to an industry
where the world wide retail sales alone is valued at $ 7 trillion.
 Organized retailing is spreading and making its presence felt in different parts of the
country.

 India is world’s second largest grower of fruits and vegetables after Brazil and China.
 Economic growth at over 5.5% over the last eight years, forex reserves of over $100
billions and a stable government has helped India to look more progressively towards
future.
 Retailing, one of the largest sectors in the global economy, is going through a transition
phase in India.

 Organized retailing is spreading and making its presence felt in different parts of the
country.

3.15 Keywords

Independent Retailer: In independent retailer is one who builds his/her business from the ground
up. From the business planning stage to opening day, the independent retail owner does it all.
He/she may hire consultants, staff and others to assist in the business endeavor. The opportunities
are endless.
Multi Level Marketing: Multilevel marketing (MLM) or network marketing is a business model
where the selling of products depends on the people in the network.
Producer-Agent-Wholesaler-Retailer-Customer:-This is the longest channel of distribution in
which three middlemen are involved.

Producer-Customer: This is the simplest and shortest channel in which no middlemen is involved
and producers directly sell their products to the consumers.
Producer-Retailer-Customer: This channel of distribution involves only one middlemen called
‘retailer’. Under it, the producer sells his product to big retailers (or retailers who buy goods in
large quantities) who in turn sell to the ultimate consumers.
Producer-Wholesaler-Retailer-Customer: This is the most common and traditional channel of
distribution.

Trade Channel: A channel of distribution or trade channel is defined as the path or route along
which goods move from producers or manufacturers to ultimate consumers or industrial users.

LOVELY PROFESSIONAL UNIVERSITY 57