Generates employment opportunities:
It offers maximum employment opportunities for people living in a nation. In India, the youthpopulation is more interested pursuing their career in this field. Survey shows in India that 60% of population of age group (15-60) are engaged in this activity.
Potential untapped Markets:
Growing trend of consumerism in has led to the emergence of cities and small towns add to themarket attractiveness. Pantaloon Retail India Limited, one of India’s retail giants captures a mere0.3 per cent of total market; compared to Tesco Plc, which captures 14.3per cent of England’smarket and Wal-Mart which captures 20 per cent of USA’s market; giving an insight into the largeuntapped market potential.
Cash & Carry wholesale trading:
Big retail outlets also perform the functions of a wholesaler by selling products both in bulk and insmall quantities. This leads to larger sales transactions which results in large money flow into theeconomy. Since these giant retailers have wider assortment and variety, they can cater to theneeds of every customer who visit their shop and also influence them on impulsive buying.
Indian Retail Sector:
Indian retail business promises to be one of the core sectors of the Indian economy, withorganized retail sector estimated to grow by 400 per cent of its current size by 2007-08.India is expected to be among the top 5 retail markets in the world in 10 years. The growth andpotential of the sector is being widely acknowledged both in the domestic as well as internationalforums. India topped AT Kearney’s Global Retail Development Index 2007 for the thirdconsecutive year, retaining its position in the global market as the most preferred retaildestination amongst emerging markets.For the fifth time, India also topped the Global Consumer Confidence Index June – 2007conducted twice a year by The Nielsen Company. Indians were judged the world’s most optimisticconsumers, with large sections of the population considering “now” a good time to spend. Totalestimated investment opportunity of US$ 5-6 billion in next five yrs.
b. Identify some of the general characteristics of a retail consumer.Ans.:
Consumer buying behaviour refers to the buying behaviour of the ultimate consumer.Consumer behaviour is the study of how consumers make decisions to use their respectiveresources such as time, money and effort for buying, suing and disposing goods and services.The behaviour of humans is very complex in nature. Marketers understanding of he drivers of consumers buying behaviour will help them to serve their customers effectively and efficiently andattract new customers.In the retailing context, marketers are required to understand customers shopping behavior whichincludes decision variables regarding among other things, brand selection, shopping timing, andchoice of retail format and store. Consumers shopping behaviour is understood by analyzing thefactors that affect behaviour. These factors could be demographic, psychological, environmentalor related to the lifestyle of the customer. It is equally important for the retailer to identify thevarious stages in the consumer decision-making process and the major influences at each stage.This would make possible an effective retail marketing strategy.In the retail context, marketers would be specifically be more interested to know about theconsumers shopping behaviour, which involves an understanding of decision variables regardingwhen, where and what to shop i.e. shopping timing, choice of retail format and store etc. suchdecision variables are the factors to be considered by the retailer while taking decisions regardingthe understanding consumer behaviour.For instance, in case of pickle, marketers will be interested in finding out the type of pickleconsumers intend to buy (single vegetable/fruit or mixed, spicy or not, oily or dry, veg. or non-veg), the brand preference (national, private, generic), the reason for using (to add taste, for foodpreparation, to eat along with snacks), the place of purchase (Super bazaar, convenience store,vendors, home made), and frequency of purchase (weekly, fortnightly, monthly). On the basis of various alternatives to consumer needs, marketers evolve the best possible marketing mix to