Page 48 - DMGT552_VISUAL_MERCHANDISING

Unit 3: Image Mix

Privatisation, and Globalisation) drive globally, every country is eager to attract foreign capital Notes
with a unique set of offering. The following key factors should be considered while deciding
upon the name of a country:
1. Political factors like political policies and political stability
2. Trade barriers
3. Synergy

4. Economies of scale
5. Regulations
6. International competition
7. Incentive

Selection of Region: Generally, a country is divided into regions on the basis of directions (east,
west, north and south) or political boundaries. Therefore, after selecting the country, the second
step is to decide on the right region based on comparative cost advantages available out of the
possible regions.

Notes India has twenty-eight states and seven territories. To decide on where to set up a
store is not an easy task. A retailer has to critically analyse each state or study the country
under its four major divisions, viz, Northern, Southern, Western and Eastern. If the retailer
want to set up say, in the northern region, then is has to select a particular state, viz,
Haryana, Punjab, Delhi, Rajasthan, UP, Uttranchal, HP or J&K.
The factors influencing such selection are as follows:
1. Availability of merchandise

2. Proximity to the market
3. Infrastructural facilities
4. Transport facility
5. Climatic conditions

6. Government policy
7. Subsidies and sales tax exemptions
Selection of the Locality/Community: After selecting the region, the third step in deciding on
the store location is to select a particular locality or community within the selected region. It
means taking decisions regarding:
1. Urban area

2. Rural area
3. Suburban area
The selection of a locality in a particular region is determined by the following factors:
1. Labour and wages

2. Community facilities

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