OMNI CHANNEL RETAIL

&
SALES MANAGEMENT
 SESSION 1

OMNI CHANNEL RETAIL & SALES MANAGEMENT

BASIC CONCEPTS
RETAILING - MEANING

▪ Selling merchandise in small quantities.

▪ Selling merchandise directly to the customers. Offers direct

interaction with customers / consumers.

▪ Any organization selling merchandise to final customers –

whether a producer, wholesaler or retailer – is doing retail
business.

▪ Customer service plays a vital role in the success of the retail

business.

According to Philip Kotler – Retailing includes all the activities

involved in selling goods or services directly to final consumers
for personal, non-business use.
RETAILING – EVOLUTION
Phase 1: Barter System
DIFFICULTIES OF BARTER SYSTEM

Barter system had many difficulties which were faced by the people like –

• Lack of double coincidence of wants (Goat / Rice)

• Lack of a common unit of value (Goat for Rice, Goat for Treatment , No
common agreement)

• Difficulty of future payments or contractual payments(Goat – 5 years)

• Difficulty of storage of value and transfer of value. (Perishable goods)

https://www.yourarticlelibrary.com/economics/money/5-main-
difficulties-found-in-barter-system-discussed/37849
RETAILING – EVOLUTION
Phase 2: Evolution of Money

Sea Shells & Precious Metals

RETAILING – EVOLUTION
Phase 3: Small Haats & Shops
https://www.citeman.com/7376-evolution-of-retail-in-india.html
RETAILING - FUNCTIONS

▪ Contact between manufacturers and Customers

▪ Identifying Consumer Demands

▪ Management of Merchandise

▪ Convenience of timings

▪ Distribution

▪ Information about customers / Communication

India - The Top Retail Destination

The Retail market in India has undergone a major

transformation and has witnessed tremendous growth in the
last 10 years. The Overall Retail market is set to cross the $ 1.7
tn mark by 2020 from $795 bn in 2017. India’s e-commerce
market is also set to grow at a CAGR (Compound Annual
Growth Rate) of 30% for gross merchandise value to be worth $
200 bn by 2026.

India ranks among the best countries to invest in Retail space.

Factors that make India so attractive include the second largest
population in the world, a middle class of 600 mn people,
increasing urbanization, rising household incomes, connected
rural consumers and increasing consumer spending.

•India ranked No. 2 in Global Retail Development Index (GRDI)

in 2019.

•Retail is India's largest industry, currently accounting for over

10% of the country's GDP and 8% of total employment.
Notes :- GLIMPSE OF INDIAN RETAIL INDUSTRY

Kishore Biyani (Father of Retailing in India) is an Indian Billionaire businessman who is the Founder & CEO of Future Group, one of India's biggest brick-and-
mortar retailers. He is also the founder of retail businesses such as Pantaloon Retail and Big Bazaar.

Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players.
Total consumption expenditure is expected to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017.
It accounts for over 10 per cent of the country’s gross domestic product (GDP) and around eight per cent of the employment. India is the world’s fifth-largest
global destination in the retail space.
India ranked 73 in the United Nations Conference on Trade and Development's Business-to-Consumer (B2C) E-commerce Index 2019. India is the world’s fifth
largest global destination in the retail space and ranked 63 in World Bank’s Doing Business 2019.
India is the world’s fifth largest global destination in the retail space. In Foreign Direct Investment (FDI) Confidence Index, India ranked 16 (after US, Canada,
Germany, United Kingdom, China, Japan, France, Australia, Switzerland, and Italy).

MARKET SIZE - Retail industry reached US$ 950 billion in 2018 at CAGR of 13 per cent and is expected to reach US$ 1.1 trillion by 2020. Online retail sales were
forecast to grow 31 per cent y-o-y to reach US$ 32.70 billion in 2018. Revenue generated from online retail is projected to reach US$ 60 billion by 2020.
Revenue of India’s offline retailers, also known as brick and mortar (B&M) retailers, is expected to increase by Rs 10,000-12,000 crore (US$ 1.39-2.77 billion) in
FY2020.
India is expected to become the world’s fastest growing E-commerce market, driven by robust investment in the sector and rapid increase in the number of
internet users. Various agencies have high expectations about growth of India’s E-commerce market.

INVESTMENT SCENARIO -The Indian retail trading has received Foreign Direct Investment (FDI) equity inflow totaling US$ 2.12 billion during April 2000–
March 2020 according to Department for Promotion of Industry and Internal Trade (DPIIT).
With the rising need for consumer goods in different sectors including consumer electronics and home appliances, many companies have invested in the Indian
retail space in the past few months.
India’s retail sector attracted US$ 970 million from various private equity funds in 2019.
Walmart Investments Cooperative U.A invested Rs 2.75 billion (US$ 37.68 million) in Wal-Mart India Pvt Ltd.
Notes :- GLIMPSE OF INDIAN RETAIL INDUSTRY

Government Initiatives
The Government of India has taken various initiatives to improve the retail industry in India. Some of them are listed below:

•Government may change Foreign Direct Investment (FDI) rules in food processing in a bid to permit E-commerce companies and foreign retailers to sell
Made in India consumer products.

•Government of India has allowed 100 per cent FDI in online retail of goods and services through the automatic route, thereby providing clarity on the
existing businesses of E-commerce companies operating in India.

Road Ahead
E-commerce is expanding steadily in the country. Customers have the ever-increasing choice of products at the lowest rates. E-commerce is probably
creating the biggest revolution in retail industry, and this trend is likely to continue in the years to come. Retailers should leverage digital retail channels
(E-commerce), which would enable them to spend less money on real estate while reaching out to more customers in tier II and tier III cities.
It is projected that by 2021, traditional retail will hold a major share of 75 per cent, organized retail share will reach 18 per cent and E-commerce
retail share will reach 7 per cent of the total retail market.
Nevertheless, long-term outlook for the industry looks positive, supported by rising income, favorable demographics, entry of foreign players, and
increasing urbanization.