Exploring All Aspects Of Retail Sector (worldwide,India)

Introduction: 

Retail is the final transaction occurring right at the end of the supply chain, involving somebody buying something not (generally) for resell, but for their personal consumption or use. That is why customers are also referred to as consumers. 

                                          In more simple words it is the point in the value chain where the buyer buys the product for self consumption and not for re-sale.

Overview Of  Retail Sector:

World Wide:

Retailing is a commercial activity which includes  selling of products or services to customers by various types of merchants. The first retail outlets in America were trading posts and general stores. At trading posts, goods obtained from Native Americans were exchanged for items imported from Europe or manufactured in other parts of the country. As villages and towns grew, trading posts developed into general stores and began to sell food, farm necessities, and clothing. Typically run by a single person, these stores sometimes served as the post office and became the social and economic center of their communities. Since World War II, giant supermarkets, discount houses, chain stores, and shopping malls have grown in popularity. Even so, individually owned businesses thrive, often giving customers more personal and better-informed service.

                                                           Today, retail is a complex and diverse field. It involves the selling of all types of physical goods, such as automobile parts, pharmaceuticals, clothing, health care products, books, and food, as well as services, such as automobile repair or rug cleaning.

Indian Retail Overview:

 Retailing is one of the oldest professions in the world, and India’s retail space is becoming exceedingly interesting.

                         As India embraced the policy of *globalisation in 1991(globalization is the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade.) .

                       But no Foreign Direct Investment (*FDI) was allowed in retail till 1997(A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets in a foreign company).

                      However, for the first time in 1997, 51 percent ownership was allowed in single brand retail by FDI route. But this did not result in a significant inflow of investments because government approvals were a mandatory precedent.

In 2006 india set clear guidelines for investing . But this does not fill the target upto expectation . In 2012, the country finally opened up the competition for Indian retailers by allowing 100 percent brand ownership in single brand retail (51 percent in multi brand retail).

Retail Classification:

Technology Impact On Retail Sector:

In recent times, technology has also started playing a critical role in driving consumer behaviour .

 Virtual Fitting Of Products:

By using AR, a brand can enable customers to try on different products virtually. It thus eliminates the need to visit the store in person. This application of Augmented Reality in retail can be seen in popular stores that sell makeup, clothes, shoes, and other wearables.

Most people are more willing to spend money on things they have tested on themselves.

Visualising Furnitures (other items) At Home:

Knowing how a particular furniture/item will look in your room. This experience will give a crystal clear view to the customer for the product. The current AR/VR technology helps customers to feel this experience without actual placing them.

Accessing the Product Information:

According to a survey 60% of people use smartphone to check  the product information before buying them. By doing so the customer can check actual price, description of product, about it,s manufacturer etc. If there is any scam/forgery involve in the product , the customer can complain too. This also allows  customer to save their money.

Brand Building:

Social media plays a huge role to reach to a large community in very short span of time. Digital marketing plays a vital role in this. By using social media affiliate marketing of the product can also be done. It will also help to increase the sale of the product.

Risk And Opportunity :

Opportunity:

• Use of  a digital strategy to transform  customer experience
• Use of artificial intelligence and cognitive intelligence for better customer service
• Better economic  conditions mean higher consumer spending
• By Online shopping seller can collect more customers and huge gross margin.

Risk:

• Intense Competition- Since due to FDI big and famous MNC,s come into market . These Mnc,s has occupied the market rapidly . Due to this the small retailers find it difficult to caputure their space.
• Digital Fraud and Theft- As online e-commerce sites requires digital payment. So some third party use  this as an opportunity. They make fake sites and advertise fake products. 
• Reputation Risk: Since digital fraud and theft have become the by product of online retailing. 

Major Players In Retail sector:

• World Wide

•         1. Walmart Inc. (WMT)
•         2. Amazon.com Inc. (AMZN)
•         3. Costco Wholesale Corp. (COST)
•         4. Walgreens Boots Alliance Inc. (WBA)
•         5. The Kroger

• In India

1. Reliance retail.
2. Future group
3. Trent
4. Aditya Birla Group
5. Titan Company