ORGANIZED AND

UNORGANIZED RETAILING
INTRODUCTION
Retailing in India is highly fragmented and unorganized.
The combination of the organized and the unorganized
retail outlets have resulted into highest density of the retail
outlets in India. Retailers include street vendors,
supermarkets, department stores, restaurants etc.
The unorganized retailers need employees with low skills
and account for around two-thirds of sector output. These
are highly competitive outlets and the cost of rent is very low
in these cases. But the customers face comparatively poor
shopping experience in these outlets as these outlets cannot
offer wide range of products due to limited space options.
STATUS OF UNORGANIZED AND ORGANIZED
RETAILING
Unorganized retailing refers to the traditional formats
of low cost retailing. For example, the local mom and
pop store, owner manned general store etc.
Organized retailing was absent in most rural and
small towns of India 2010. Organized retail accounted
for 22% (app.) of the market total retail.
CHALLENGES IN RETAILING
Technology
Internal Transportation
Stock shrinkage
Inventory management
Supplier frauds multiplication effect
Customer retention
Customer Perspective
Inefficient Infrastructure
Regular Supply of Electricity
Cost of rentals
Multiple taxation
CHALLENGES WITH RESPECT TO RURAL
AREAS
Lack of proper Physical Communication Facilities
Many languages and Dialects
Low Income and literacy level in rural areas
Spurious Brands and Seasonal Demand
Different way of thinking
OPPORTUNITIES FOR RETAIL SECTOR IN
INDIA
Booming Indian Economy
Economies of Scale
Private Labels
Changing Demographics
Increasing Income and spending patterns
Store layout leads to impulse buying
Urbanization of the population
Awareness among customers
One stop shop ( Convenience)
Internet Revolution
RETAILING AS A CAREER
Retailing is very budding as a career option in India.
The number of retail institutes which provides
specialized education in retail are very less. As
compared to this, there is a huge opportunity for this
sector in retail as the number of retailers are growing
in our country.
SKILL REQUIREMENTS AND SKILL GAPS IN
RETAIL
1. At Junior Level ( Associates and Executives)
Billing Executive
Sales man
Merchandizing Executive
Purchase Executive
Marketing Associate
2. At Middle Management Level
• Store manager
• Merchandizing Manager
• Purchase Manager
• Marketing Manager
MAJOR TASKS IN RETAIL ORGANIZATION
Store Operations
Displaying
Logistics
Advertising and Promotion
Centralized Buying
Corporate Services
Merchandize Management
Financial Performance