An Overview of Retail Marketing in India
INTRODUCTION
Retailing is the world’s largest private sector contributing to 8% of the GDP and it employs one sixth of the labor force. The estimated retail trade is expected to be 7 trillion US $ . Many countries have developed only due to retailing and presently we see there is a vast change in the retail industry. As far as India is concerned it contributes to 14% of our GDP and it is the second largest sector next to agriculture which provides employment to more number of persons. Now according to a survey, India is classified in to the fifth most attractive retail destination and second among the countries in Asia. Worldwide it is ranked as fifth most attractive retail destination. Before proceeding further, let me tell you the functions of retailing.
OVERVIEW
Today our topic will be on one of the interesting areas of Service Marketing – Retail Marketing. First we will see what is meant by Retail. This word has come from a French word Retailer which means to cut off a piece. Retailing includes all activities involved in selling the products and services to the ultimate consumers. So this is said to be the last person in the channel of distribution. In this discussion I will be introducing the concept world wide as well as in the national context. Next our discussion will be on the functions of retailing, then we proceed to why there is retail revolution at present, and finally we will study about the challenges faced by the retail industry.
FUNCTIONS OF RETAILING
Retailing is supposed to provide:
• Product Utility
• Place utility
• Time Utility
• Ownership Utility
It provides final end products to the consumers, not raw materials, end products in usable form to the consumers. Thereby it creates product utility. Second one, it is given in the place where it is required by the consumer. That is, retailing outlets are open in the places according to the convenience of the customer and also based on the demand of the consumer. Third One, it creates Time Utility. In the sense that, the shops are open as per the requirement of the consumer that is between 10 and 8 or 10 to 5. Whenever the consumers want to go and shop they can go and shop at a particular period convenient to the customer. Next one, when the product is sold finally it creates Ownership Utility. So, we can conclude that retailing is a marketing intermediary which creates Product Utility, Place Utility, Time Utility and Ownership Utility in providing goods and services to the consumers
CLASSIFICATION OF RETAIL INDUSTRY
Retail Sector can basically be classified in to two segments. One is organized segment and another one is unorganized segment. As far as India is concerned this organized segment contributes only to 3% of the retail trade and the unorganized segment contributes to remaining 97% of the retail trade. Why is it so?? Because all these days we have been purchasing only from the street vendors and from the local shops and organized retailing was not in vogue in India. Only after 1991, after opening up of economy and due to liberalization, this organized sector has come to light and presently it exists in various formats.
• Super markets
• Hypermarkets
• Departmental stores
• Specialty stores
REASONS FOR RETAIL REVOLUTION
. With double salaries and nuclear families, disposable income in the hands of middle income group people is high and that is one reason why retail revolution has taken place. The second one is a very interesting feature. Now there is a customer called New Age Customer.
Conclusion.
Retailing is the world’s largest private sector contributing to 8% of the GDP and it employs one sixth of the labor force. The estimated retail trade is expected to be 7 trillion US $ . Many countries have developed only due to retailing and presently we see there is a vast change in the retail industry. Discretionary income is the income left with a person apart from providing for his basic facilities. So this discretionary income he can utilize in any manner as he wants. So he is one person who is being aimed at by the retail industry, who is being trapped by the retail industry for purchases.
R.Yuvarani
m.phil research scholar
periyar university,salem
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