WHOLESELLING

TYPES OF WHOLESELLING
RETAILING
TYPES OF RETAILING

PRESENTED BY SHAYAN, WAQAS &

JUNAID
 WHOLESELLING
• WHOLESALING IS THE ACT OF BUYING GOODS IN BULK FROM A MANUFACTURER
AT A DISCOUNTED PRICE AND SELLING TO A RETAILER FOR A HIGHER PRICE, FOR
THEM TO REPACKAGE AND IN TURN RESELL IN SMALLER QUANTITIES AT AN EVEN
HIGHER PRICE TO CONSUMERS.
• DUE TO THE LARGE QUANTITIES PURCHASED FROM THE MANUFACTURER AT A
DISCOUNTED PRICE, THE WHOLESALER CAN ALSO PASS ON THIS DISCOUNT TO RETAILERS.
THE RETAILER SELLS AT A PRICE THAT REFLECTS THE OVERALL COST OF DOING BUSINESS.
• WHOLESALERS ARE NOT MANUFACTURERS. THEIR BUSINESS IS
DISTRIBUTING THE END PRODUCTS. THEY PURCHASE GOODS
FROM MANUFACTURERS IN BULK AT A DISCOUNT AND SELL TO
RETAILERS.

• WHOLESALERS ALSO PROVIDE COST SAVINGS TO RETAILERS

WHEN RETAILERS BUY IN BULK FROM THE WHOLESALER. THE
RETAILER THEN REPACKAGES THE BULK ITEMS INTO SMALLER
QUANTITIES FOR SALE DIRECTLY TO CONSUMERS.

• WHOLESALING IS ONE STEP IN THE SUPPLY CHAIN THAT STARTS

WITH A SUPPLIER OF RAW MATERIALS AND ENDS WITH A SALE TO
AN END-USER.
 UNDERSTANDING
WHOLESELLING
• MOST WHOLESALERS DO NOT MANUFACTURE THE GOODS THEY SELL
BUT RATHER BUY THEM FROM THE SOURCE AND CONCENTRATE ON
THE BUSINESS OF SALES AND DELIVERY TO RETAILERS. THEY ARE
KNOWN AS THE INTERMEDIARY IN THE SUPPLY CHAIN. IT IS MORE
COST-EFFECTIVE FOR A WHOLESALER TO BUY IN BULK FROM A
MANUFACTURER AND RECEIVE A DISCOUNT THAN IT WOULD BE TO BUY
ITEMS INDIVIDUALLY.
 RETAILING
“RETAILING IS A DISTRIBUTION
PROCESS,IN WHICH ALL THE ACTIVITIES
INVOLVED IN SELLING THE MERCHANDISE
DIRECTLY TO FINAL CONSUMER.”
 RETAILING (CONT..)
RETAILING IS SELLING FINAL PRODUCTS AND SERVICES FOR CONSUMER
USE.
RETAILING IS HIGH INTENSITY COMPETITION INDUSTRY.
IT PROVIDES EASIER ACCESS TO VARIETY OF PRODUCTS.
• THE PAKISTANI RETAIL SPACE IS DOTTED BY BAZAARS, COMPANIES
OPERATED OUTLETS AND LARGE SHOPPING MALLS.
• DIRECT INTERACTION WITH CUSTOMERS WITHOUT ANY INTERMEDIARIES.
• ADVERTISEMENT OF NEW PRODUCTS.
• INFORMATION ABOUT CONSUMER TASTE HABITS AND NEEDS.
PAKISTAN RETAIL INDUSTRY
PAKISTAN HAS AROUND 2,000,000 RETAILERS
RETAIL SECTOR CONTRIBUTES 20% TO THE GDP
IT IS THIRD LARGEST SECTOR
SECOND HIGHEST EMPLOYER
• IT CONSISTS OF KIRYANA STORES, GENERAL STORES,
MEDICINE STORES, SUPERMARKETS.
 RETAIL STORE
• CHOOSE THE STORE LOCATION
• SOURCE THE PRODUCTS FROM WHOLESALERS OR
MANUFACTURERS
• HIRE A SALES TEAM FOR THE PROMOTION
• MANAGE THE INVENTORY END OPERATION BY YOURSELF
• ACHIEVE EFFICIENCY BY DELIVERING EXCELLENT
CUSTOMER VALUE
 TYPES OF RETAILING
STORE RETAILING
• Store retailing is when the store uses a space to display
products where customers can purchase them.
• Department store is the best form of store retailing, to attract a
number of customers. The other types of store retailing
includes, specialty store, supermarket, convenience store,
catalogue showroom, drug store, super store, discount store,
extreme value store. Different competitive and pricing strategy
is adopted by different store retailers.
 NON-STORE RETAILING:
• ANY SALE HAPPENING TO THE END CUSTOMER WHICH IS
NOT HAPPENING THROUGH A TRADITIONAL RETAIL
CHANNEL OR THROUGH A PHYSICAL RETAIL SPACE IS
KNOWN AS NON-STORE RETAILING. AMAZON IS A PERFECT
EXAMPLE OF NON-STORE RETAILING.
• IT IS EVIDENT FROM THE NAME ITSELF, THAT WHEN THE
SELLING OF MERCHANDISE TAKES PLACE OUTSIDE THE
CONVENTIONAL SHOPS OR STORES, IT IS TERMED AS NON-
STORE RETAILING. IT IS CLASSIFIED AS :
 DIRECT MARKETING:
• IN THIS PROCESS, CONSUMER DIRECT CHANNELS ARE EMPLOYED BY THE
COMPANY TO REACH AND DELIVER PRODUCTS TO THE CUSTOMERS.
• DIRECT MARKETING IS A FORM OF ADVERTISING THAT SPECIFICALLY
TARGETS A PERSON OR COMPANY TO GENERATE NEW BUSINESS, RAISE
THE PROFILE OF AN ORGANISATION OR PRODUCT, OR MAKE A SALE.
• IT INCLUDES DIRECT MAIL MARKETING, CATALOG MARKETING,
TELEMARKETING, ONLINE SHOPPING ETC.
 DIRECT SELLING:
• IT INVOLVES DOOR TO DOOR SELLING OR AT HOME SALES PARTIES. HERE, IN
THIS PROCESS THE SALES PERSON OF THE COMPANY VISIT THE HOME OF THE
HOST, WHO HAS INVITED ACQUAINTANCES, THE SALES PERSON DEMONSTRATE
THE PRODUCTS AND TAKE ORDER, OTHERWISE CALLED AS MULTILEVEL SELLING
AND NETWORK SELLING.
 AUTOMATIC VENDING:
A VENDING MACHINE IS A NEW AND COMPLEMENTARY FORM OF
RETAILING. IT IS A SLOT MACHINE OPERATED BY COINS OR TOKENS. THE
BUYER INSERTS THE COIN OR A TOKEN INTO THE MACHINE AND RECEIVES
A SPECIFIED QUANTITY OF A PRODUCT FROM THE MACHINE. VENDING
MACHINES ARE USED TO SELL PREPACKED AND LOW COST PRODUCTS OF
MASS CONSUMPTION E.G. SOFT DRINKS, HOT BEVERAGES, CIGARETTES
ETC.
 BUYING SERVICE:
THE RETAIL ORGANIZATION SERVES A NUMBER OF CLIENTS COLLECTIVELY, SUCH
AS EMPLOYEES OF AN ORGANIZATION, WHO ARE AUTHORIZED TO PURCHASE
GOODS FROM SPECIFIC RETAILERS THAT HAVE CONTRACTED TO GIVE DISCOUNT,
IN EXCHANGE FOR MEMBERSHIP.
 CORPORATE RETAILING:
• CORPORATE RETAILING DESCRIBES RETAILING OUTLETS THAT ATTAIN
ECONOMIES OF SCALE, CUSTOMER LOYALTY, BRAND RECOGNITION,
PURCHASE ABILITY, TRAINED EMPLOYEES, AND HIGHER PURCHASE OF GOODS.
CORPORATE RETAILING OUTLETS ARE MOSTLY LOCATED IN METROPOLITAN
CITIES. MOREOVER, RETAILER USUALLY DEALS WITH A PROCESS WHERE THEY
SELL GOODS DIRECTLY TO END CONSUMERS ON AFFORDABLE PRICES.
• IT INCLUDES RETAIL ORGANIZATIONS SUCH AS CORPORATE CHAIN STORE, FRANCHISES,
RETAILER AND CONSUMER COOPERATIVES AND MERCHANDISING CONGLOMERATES.
 DIFFERENCE BETWEEN
WHOLESELLING AND RETAILING
Wholeselling
Wholesale means the sale of goods The business of selling goods to
in voluminous quantity.
The price of wholesaler’s
products is always less than
retailer’s one.
Wholeselling is a large scale
business than Retailing.
Retailing
end consumers in small lots a  is
known as Retail.
The price of retailer’s products is
always greater than wholesaler’s
one.
Retailing is smaller than
wholeselling Business.
 Wholeselling
Wholesale creates a link between the
manufacturer and retailer
In wholesale business, there is no
requirement of an art of selling the
goods
In wholesale business, the capital
requirement is higher than in retail
business.
In the wholeselling business, the
wholseller can not choose the goods
freely because the goods are to be
purchased in bulk.
Retailing
whereas Retail creates a link between
wholesaler and customer.
In retailer business, the art of selling
is must to drive good sales.
In Retail business, the capital
requirement is less than in wholesale
business.
In the retail business, the retail
shopkeeper can choose the goods
freely which is not possible in
wholesale business.
 Wholeselling Retailing

In wholesale, the location does not The location is of utmost importance in

matter at all. retail business.

In wholesale, the appearance of the In retail the appearance of the shop and
shop and the display of items should not the display of items should be good to
matter so much. attract more and more customers

There is no requirement of advertising in In retail business requires advertising to

wholesale but grab the attention of customers.