Page 78 - DMGT550_RETAIL_MANAGEMENT

Unit 5: Retailing Strategy

weaknesses, opportunities and threats (SWOT analysis) is required to ensure that the growth Notes
opportunities are not missed and action is taken at the right time to combat potential threats in
the prevailing business environment.

5.1 Concept of Business World

Business is an economic activity, which is related with continuous and regular production and
distribution of goods and services for satisfying human wants.
All of us need food, clothing and shelter. We also have many other household requirements to
be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper
gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler,
the manufacturer are doing business and therefore they are called as Businessman.
Retailing is the latest buzzword among the business. It is evolving into a global, high-tech
business and occupies a pre-eminent position in the economics of all modern societies. Retailing
today is at an interesting cross road. Town with lower income and higher employment trends
would give rise to fragmentation of the retail universe resulting in a large number of small
outlets. The composition of the retail universe in India is also quite diverse. It is important to
bear in mind that only those outlets that stock Fast Moving Consumer Goods (FMCG) brand
have been considered and the total number of outlets dealing in all kinds of products may be
much higher.
The growth of retailing in most countries over the world is synonymous with the growth of the
information technology sector in that country, as no retailer can do justice to his business or to
his customers unless he is able to collect and analyze the vast amount of data available to him.
Retailers usually deal with very large volumes of data as thousands of suppliers, which are
finally purchased by thousands of customers as well. By enabling the retailer to keep track of all
this information and to analyze the reports that emergence from such data, IT plays an extremely
critical role in the development of anywhere in the world.
The concept of retailing however, is still under-development in India, with emphasis only being
laid on distribution. The Indian retail market is quite large but highly fragmented, comprising
very few large retailers. It is estimated that there are approximately 1.8 million urban retail
outlets in this unorganized sector, out of which only 7 percent achieve sales of over ` 8 lakh per
annum. These traditional corner stores, at best, constitute nothing more than a cost and distribution
overhead. At worst, they destroy the very concept of making shopping a pleasant experience. In
fact it is estimated that till date less than 2 percent of the retailing business in India comes from
organized retailing.

The Indian retailing Industry is becoming intensely competitive, as more and more players are
vying for the same set of customers.

Did u know? According to A.T. Kearney, the windows of opportunity shows that Retailing
in India was at opening stage in 1995 and it is in peak stage since 2006. India’s retail market
is expected to grow tremendously in next few years. To gain success and stabilize in the
market, retail management has to be developed within the context of marketing approach.

The position of retail store manager is one that holds vast duties and great responsibilities.
There are a wide variety of retail stores which employ retail store managers to maintain the
overall quality and day-to-day operations of the establishment. In order to learn more about the
duties and responsibilities of a retail store manager, it is important to highlight what in fact
these individuals do on a daily basis.

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