GEOGRAPHICAL RETAILING CONCEPT IN INDIA
Chapter-1
Retailing getting different faces in global marketing. In India, new companies are coming and competing with established brands. New start up’s are getting good response from the consumers. In FMCG sector, big companies have pressure on increasing sales volume. Now, consumer is very clever. He wants best product in less price. Retailinvolves the process of sellingcommodities to customers through multiplenetworks to earn a profit margin.
Retail Shops may be on residential streets, streets with few or no homes, or in a mall.Shops on road may disturb traffic to pedestrians only. Sometimes a purchasing street has a fullcover or partialto create a more reliable shopping environment, saving consumers from different types of weather conditions such as extreme temperatures, winds etc.
Forms of non-shop retailing include online retailing (B2C transactions) andorder through mail. The retailing strategy is a marketing plan basically designed to offer its products in a manner that will optimize consumer satisfaction.
Organised retailing in India refers to trading activities undertaken by licensed retailers registered for income tax and sales tax. These include the public supermarkets, corporate retail chains and privately owned big retail businesses etc. Unorganised retailing refers to the traditional formats of low cost retailing. General stores, convenience stores, street vendors, corner shops and pan shops etc. Most Indian shopping happens in open markets or small grocery retail shops. Shoppers generally wait outside the shop, ask for what they need and cannot examine or pick a product from the shelf.
Access to the product storage area is limited. Once the shopper demands the food staple or household product they are looking for, the shopkeeper goes to the shelf or to the back of the shop, brings it out and offers it to the shopper. Sometimes shopkeeper substitutes the product, arguing that it is similar to the brand the customer is asking for. The product commonly has no price label in these small retail shops; all packaged goods must show the maximum retail price (MRP) above which the product cannot be sold.
The shopkeeper can price the commodity and household products promptly and two consumers may pay different prices for the same product on the same day. Price is rarely negotiated between the customer and retailer. The shoppers generally do not have time to analyse the product label and do not have an alternative to make a decision between competitive products.
An unorganised retail shop basically does not offer after sales service. Most transactions at unorganised retail shops are done in cash. Indian retailing market has high multiplicities in terms of a wide geographic area and distinct consumer preferences varying by each region commanding a need for localization even within the geographic region.
Retail store designing strategy:
The design of a retail store is crucial when appealing to its targeted market, as this is where first impressions are constructed. It can influence a consumer’s perception of the quality of store, visually communicating value. Certain methods are used to create a consumer brand experience, which in the long run provides brand loyalty.The front of the store is paid close attention too, known as the “decompression zone”. This is actually an open space in the entrance of the outlet to allow customers to adjust to their new environment.
An open planned floor structure is effective in retail as it offers customers to see everything at the outlet. Depending upon what side of the road cars drive on in a country, guides what way the store will direct its customers.It is common for a retailer store to play music that relates to their targeted market.
In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by largeretailers. Most of these stores are called high street stores. Slowly high street stores are being re-grouped in condensed geographical areas along specific districts or roads.
Classification of retail by the following type of products:
· Food products
· Hard goods or durable goods
· Consumables or soft goods
· Arts
Types of retail stores:
Boutique/Concept stores: similar to specialty stores. Concept stores are very small in size, and ever stock only one brand. They are run by the brand that controls them.
Convenience store: provides limited variety of products at more than average prices. This store is best for emergency and immediate purchaseas it often works with extended hours.
Category killer or specialist: supply wide variety in a single category for lower prices aretailer can kill that category for the other retailers. For few categories, such as home appliances, the products are displayed at the centre of the outlet and sales person will be available to address visitor’s queries and give suggestions when required.
Concentration centre: offer low-cost, often high quantity goods.
Department store: large stores offering a big assortment of hard and soft goods which often bear a collection of specialty stores. A retailer of such store carries different categories and has a broad assortment of goods at a reasonable price. They offer considerable customer service.
Discount store: offer a wide collection of products and services, but they compete basically on price. They offer large variety of business product at affordable and cut rate prices.
Demographic: Retailers, those aim at one particular segment.
E-Tailer: The customer can shop and order through the online mode and the product is dropped at the consumer’s doorstep. Here the retailers use drop shipping strategy. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is useful for customers who do not want to travel to retail stores.
General store: rural store that supplies the basic needs for the local locality.
Hyper market: Provides variety and large volumes of exclusive goods at low price. The operating cost is relatively less than other retail formats.
Mall: range of retail shops at a single outlet. They can include FMCG, apparels and entertainment under one roof.
Mom and Pop: A small retail outlet operated and owned by an individual or family, concentrates on proportionately limited and selective set of products.
Specialty store: A specialty store has a specify marketing focus, either specializing on specific merchandise, such as apparels, automobiles spare parts or toys, or on a target audience, such as senior citizen, kids or tourists.
Supermarket: self service store basically consisting grocery and limited products. The supermarkets can be anywhere between 20,000 and 40,000 square feet.
Variety store: offer intensely low cost products with a broad display of selection. The declension to this is that the items are not very high quality.
Vending machine: automated piece of equipment wherein customers can drop the money in the machine and acquire the products.
GEOGRAPHICAL RETAILING CONCEPT IN INDIA
Chapter-2
In Dalhousie, Himachal Pradesh, India people are searching employment opportunities. Basically the main business is tourism. Now these people are seeing good opportunity in retail sector. FMCG (Fast Moving Consumer Goods) retailing is an easy business to start. In small towns, retailing is coming up with new concepts. Local people are opening small outlets in local areas. One can see well managed retail outlets at the mountains.
Opening a retail store can be an easy task but maintaining is difficult. If we take FMCG sector, there are N numbers of items in this sector. For a retailer, it is very essential to understand the current demand of the customers. New brands are entering into the market. Consumers required same product under different brands.
Amity University, Sector 125, Noida, Uttar Pradesh - 201313, India. This university is very near from Indian capital Delhi. This is a good place to take education in NCR (Northern Capital Region). Retailing outlets are available inside the university premises. One will see well managed retailing outlets serving the best quality products to the students, parents, visitors and internal staff. Different MNC’s are working adjoining to the campus. Nearest Metro Station from the campus are Botanical Garden and Sector 18 Metro Stations. The main market of this locality is Sector 18, Atta market Noida. The GIP (Great India Palace) mall is also situated here. In this mall one can get every type of branded products easily. GIP mall is very famous mall in this locality. This mall is well connected with the Sector 18, Noida Metro Station. In GIP mall big brands Organized Retailing Outlets are opened.
WOW (Wonder of World) Water Park is adjacent to the GIP mall. WOW is a famous place for rides and Water activities. Inside the water park customers can also see various Organized Retailing Outlets. Sector 18, Noida is very crucial for the researchers, who wish to study the Organised Retailing Outlets in this area. This area can provide the valuable data on consumer purchasing behaviour. In the field of research if an investigator acquires quality information than it leads to better results and conclusion. Customers are highly motivated in this area and provide good response.
Sector 18, Noida is a hub of Organised Retailing Outlets. Here, investigator can get the data on FMCG, Apparels, Electronics, Metro, Automobiles, Home Appliances, Corporate Sector, MNC’s etc. This is a crowded area; one will see every class of people from different age group i.e. kids, working man and women, college going students, senior citizens etc. Therefore, it becomes easy for the researcher to collect the information from every age group people. FMCG products are used by every household. Here, researcher can collect the information from retailers/shopkeepers, consumers, customers, window shoppers etc. at one place.
Red Fort, Delhi, India is a world famous historical place. When we visit inside the Red fort, we can see, so many retailers selling their products. Many foreign tourists also purchase products from these outlets. Government of India can manage this retail market more effectively. There should be organised retailing outlets in Red fort. Red fort acquires big space. It will be a new experience to have organised retailing market inside the Red fort. Where, big brands can sell their products. There should be a listing system of all items at the retail store. Every retailer should maintain a list of all items available in their outlet. So that customers can read the list and choose the products.
Chandni Chowk, Delhi-110006 is an amazing place to visit in India. Chandni Chowk is known as wholesale market of Delhi. We can get better quality products at affordable prices. Retailers from rest of the country come here for purchasing products. There are so many outlets of a single product. When retailers purchase in bulk, they have to pay less. Retailers from neighbouring countries like: Nepal, Bhutan, Pakistan, China etc. also comes here for purchasing.
Church Mission Road, Fateh Puri, Chandni Chowk, Delhi-110006 is famous for its cloth market. Different types of cloth merchants are available here. We can purchase the bundle of clothes at wholesale price. Retailers purchase the bundle of clothes for making it useful for the end users. The size of the shops is very small. They have warehouses near to their shops for storing the clothes. They sell the big rolls of clothes in meter and kilo gram. The length of a roll can be above 100 meter or 200 kilogram in weight. Buildings are very old because, this is very old market. Small retailers are selling their products on road. This is a good place for researchers for examining the cloth industry. Actually, these merchants directly import the cloths from Surat, Gujarat, India. Therefore no need of searching the industries of Surat, one can find the variety of clothes at a single shop.
Sector 1, Rohini, Avantika, Delhi-110086, India is a retailing market in Delhi. Big brands showrooms are established here. One can get all types of items very easily. This is very crowded market of Rohini. One can find out so many retailing shops on ground, first, second, third and fourth floors. The sales turnover of this market is very huge. This is a very populated locality. When a customer comes here for purchasing the products, he gets full variety, good quality and reasonable price of all goods. Consumer wants right product at the right time, at the right place, at the right quantity at the right price.
Kids Wear, Shoes, Ladies Suits, Bags, Gents Shirt, Pent, Kurta, Kids Toys, Chemist Shops, Ladies Saares, Lehnga, Chuni, Medical Store, Hospital (Avantika Hospital), Schools ( Pole Star Play School), Bank, ATM, Convenient Stores, Mom & Pop Shops, FMCG Shops, Jewellery Shops, Sweets Shops etc. are some of the retail shops available at Sector 1, Rohini, Avantika market.
All retailers well explain about the quality of the product and its price. Consumers don’t need to worry about the quality of the products as consumers will get best quality products into this market. Consumers will puzzle in selecting the products in different varieties available in this market. Customers can face parking problem in this market due to the heavy rush. So, it will be better for customers to use public transportation for reaching this market. This market is well connected by Bus, Metro and Auto Riksha etc.