Professional Documents
Culture Documents
RETAILING
PHASE 1:
Barter system
-is a system of transactions where people used to exchange, the valuables they used
to possess and has some value in the eyes of other persons
PHASE 2:
PHASE 3:
RETAILING
IN THE U.S.A.
1800s
-Mass retailing in the united states began.
MONTGOMERY WARD
- the first retailer to initiate mass retailing in the U.S. by marketing
their products through general merchandise catalogues.Rural areas
where largely reached.
-founded by Aaron Montgomery Ward.
1940s
-Major economic activities shifted from agricultural to industrial
manufacturing.
-The first shopping center was opened.JC and Sears expansion.
-The use of credit cards increased as major retail chains began.
1950s
-opening of the first planned mall and franchised food restaurant in the U.S.
-was the beginning of the era of franchising in organized retailing business in
the U.S.
-Large suburban malls were created and anchored by traditional downtown
dept. Stores.
-sales of private automobiles grew.
-Discount stores were born(Korvetta).
1960s
-was the decade of the growth and enclosed shopping centers,with
dept. Stores and specialty retail chains.
-Baby boomers reached their teenage years.
-Women became the target consumers.
1970s
-promotional pricing started to pick up the dept. Stores as off price retailers
emerged.
-the growth of retail space slowed down.
-stiff competition led retailers to under-perform.
1980s
-growth of off price retailing as a distinct,enduring retail format.
-acquisitions and mergers became a choice for large players to support their
growth strategies.
-retailers started developing private brands.
-offshore sourcing was developed.
-It is this stiff competition in the U.S. That encouraged many retailers to
consider franchising as a strategic option for growth.
RETAILING IN INDIA
1980s
-organised retailing in India slowly began.
-Among the first companies were Bombay Dyeing, Raymonds, S Kumars
and Grasim.
TITAN
-A maker of premium watches that successfully created anorganised
retailing concept in India by establishing a series of elegant showrooms.
1991(economic liberalisation)
-Manufacturers saw a great value in integrating forward by investing into
retailing of their own manufactured goods.
Some Issues:
-the average size of each of the retail outlets in India in only 50 square feet
making it less competitive against large organized retailers.
-the industry is also unorganized, largely fragmented and has rural bias.
Unorganized Business
-An estimated of 12 to 14 million retail stores in India are very small in size
and family owned.
About 2/3 of this stores are in rural locations.
the unorganized sector accounts for 98% of the total retailing in India.
-That means that only 2% of its total retail market is organised.In other words,
it indicates a great potential for the growth and development of organised retailing.
Rural Bias:
-about 66% of the stores in India are located in rural areas.
Haats
-are the weekly markets that typically serve a group of 10-50 villages and
sell day-to-day neccesities.
-replenishment point of small village retailers.
Melas
- are larger in size and more sophisticated in terms of good sold.
(televisions etc.)