Introduction – Changing the Retail Format
More and more brands and products are being launched every day. The end-to-end shopping experience is changing. Almost every step of the process, from the moment the idea for a product is conceived, until the moment it lands in the hands of a consumer will evolve in the next 10 years, and continue to do so. To more deeply explore these omni channel insights, modern and diversified distribution network connecting supply, demand and delivery that helps retailers and brands increase sales by expanding product assortments, promoting products on the channels that perform, and enabling rapid, on-time customer delivery.
Emerging Retailing Format
*Malls
*Specialty Stores
*Discount Stores
*Department Stores
*Departmental Stores
*Multi Brand outlets
*Hyper marts/Supermarkets
*Convenience Stores
1. The ‘Product’ Mix – Every organization has a product mix that is made up of product lines. The variety of products that a company produces, or that a retailer stocks is known as ‘product line’. The product mix is the set of all the products offered for sale by a company. The basic components of product mix are:
(i) Services (ii) Packaging (iii) Brand (iv) Product Item (v) Product line
2. The ‘Price’ Mix – Price has always been one of the most important variables in retail buying decision. It is the factor which makes or mars a retail organization. It is also the easiest and quickest element to change. The components of price mix are:
(i) Organizational objectives (ii) Competition (iii) Cost and profit
(iv) Credit terms (v) Discount (vi) Pricing options
(vii) Fixed and variable costs (viii) Pricing options(ix) Pricing policies
3. The ‘Place’ Mix – The retailer should keep in mind the fact that his ‘product’ should be available near the place of consumption so that the consumers can easily buy it. If the brand preferred by the consumer is not easily available at a convenient location, he may buy some other brand in the same product category. Following are the components of a retail price mix:
(i) Distribution channels (ii) Intermediary (iii) Distance Factor
(iv) Inventory Level (v) Transportation (vi) Warehousing and Storage
4. The ‘Promotion’ Mix – After deciding upon the budget, retailer should determine the appropriate promotional mix – a combination of advertising, public relations, personal selling and sales promotion. These various promotional issues:
(i) Cost of the method (ii) Its reach (iii) Degree of flexibility
(iv) Credibility (v) Control over media
Practices and Habitual Customs of Respondents in Retailing
Innovative retail marketing and consumer’s changing lifestyle have changed their needs and choices, today’s consumers seek more updated information before they make their purchases; therefore retailer can get success by good marketing and right information.
Conclusion
The conclusion derived from the analysis of the collected secondary information published in various sources such as journals, official government websites, text and books related on retailing sector. Most of the organized retailers in and around the world are harping on quality, service, convenience, satisfaction and assured benefits to lure shoppers into the store. Retailers should create value for the consumer and must decide suitable vehicle to deliver desired consumer value. No doubt that retail format is one of the vehicles to deliver value proposition and also it helps to position the store in the mind of target shoppers. Probably in a growing market no one finds difficulty in pulling customer into store but that may not be sufficient to operate profitably. Retailers need to find out what matches consumer requirement and offer better than competition. Retailers certainly need to be innovative in designing the value proposition and deciding the format to deliver that to the consumer. It is not all about deciding the format but all about serving the consumer better, faster and at less cost. Retailers can use their store as an indicator of what they stand for and what value they offer. Retailers have to out think consumer in providing service and value.
References
1. S.Jaideep, “Retail Scenario of India: An Overview”, http://www.yourarticlelibrary.com/retailing/retail-scenario-of-india-an-overview/48734
2. Anasua Chakraborty, “Emerging sectors/trends in Indian retailing”, http://info.shine.com/industry/retail/7.html
3. http://www.fibre2fashion.com/industry-article/2203/indian-retail-industry-its-growth-challenges-and-opportunities?page=4
4. Report on Indian Retail Industry, Indian Brand Equity Foundation, www.ibef.org, May 2018, pp-6
5. Technopak Advisors private limited, BCG, Indian Brand Equity Foundation, www.ibef.org, May 2018, pp-8
6. Coopers, Price water house, Technopak, Indian Brand Equity Foundation, www.ibef.org, May 2018, pp-17
7. Sunil Jindal, Managing Director, SRS Value Bazaar (SRS Group), www.indianretailer.com/article/whats-hot/trends/Indian-retail-industry—Challenges-and-Opportunities.a4070/
8. Vidushi Handa and Navneet Grover, “Retail Sector in India: Issues and Challenges”, International Journal of Multidisciplinary Research, Vol.2, Issue – 5, May 2012, pp-244
9. https://www.insightssuccess.in/challenges-retail-industry-is-facing-in-india
10. https://www.ibef.org/industry/retail-india/showcase
Dr. Senthil Kumar, is an Associate Professor of Finance and Business Management in Skyline University Nigeria. He has a PhD. in Business Management from Bharathiar University, India.
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