Q.3)What is e-tailing? What are different categories of online retailing?

Answer: E-Tailing

If few years back technology brought the shopping information on to the laptops, today it brings the products right to the doorstep. With the use of internet as a medium a person can buy products from a virtual store (shopping website). Though detractors to this technological advancement thought that this would take the joy off shopping, it has only added a whole new perspective to shopping. Meaning of E-Tailing:The word E-tail has its roots in the word retail. Here the letter E stands for electronic since the shopping process happens through the electronic media (internet). With the use of a webspace a virtual shop is created and the products are displayed through images in this space with the features and price tags. By accessing this shopping site a customer can choose his / her products into a cart. The payment to this product can be done in various modes as mentioned by the shopping site. The product would be delivered to the address specified by the customer. Categories of online retailing:The shopping process through internet media happens in 5 steps generally. Customer visit: The customer accesses the website of the e-tailer through his/her mobile or PC or laptop. This visit is very critical to the e-tailer because it is this visit that would create an opportunity for a business. The simplicity of the site, the arrangements of the products in the site and various other factors decide the first impression of the customer. Choice of product: Once the customer visits the site he/she would choose a product based on the image and valid information available on the web page. This information can include the price tag, details about the product, availability/deliverable time span and even customer reviews on the product. Payment online: Once the customer chooses the product the next step would be to go through a secure process of data exchange. The e-tailer may provide a unique user account to the customer to keep the transaction safe. Payments to the product can be made online through credit or debit card or even cash on delivery basis where the customer pays the e-tailer when the product is delivered to him/her.

Product delivery: Once the order is placed with the e-tailer the next process would test the efficiency of supply chain network of the e-tailer. The delivery of the product would be based on the availability of the product in the inventory closest to the customers delivery address. This process may also involve shipment of the product. There are different methods used in this process. Some e-tailers just create a platform through a website where the business actually takes place between the customer and a company (or business) who is a client to the e-tailer. Here the e-tailer would just take the commission on each product sold. Typically an e-tailer may also choose to buy products that have potential demand and then display it on the site. In this case the e-tailer would have to take care of inventory expenses and also the entire procurement and disbursement cycle. Customer feedback: Once the product is delivered to the customer the feedback from the customer is very much important. This is primarily because of the absence of a real shopping store environment. The entire experience of the customer during the process would be an indicator of the efficiency of e-tailing. This experience of the customer can be accessed through proper customer service for feed backs and the problems faced by the customer should be corrected by the e-tailer. Late delivery, wrong product, damaged product etc can be some of the customer complaints which the e-tailer would have to sort out. Benefits of e-tailing:It reduces the space occupied by retail outlets in the real world. It gives quick and easy access to a shopping space at any time and from any place where there is access to internet. It saves time of the customer that is spent on travelling to a shopping place in real world. It creates a new platform for goods from different parts of the world which could be imported by placing an order.

Q.5)Explain retailing & its features. How has the growth of retail sector helped the Indian economy?

Answer: Retailing is not only an important aspect of the economic structure but very much a partof our lies. Although trading of goods has been in existence since human civilization days, it is only in the recent past that the buying and selling of goods have become more of a formal and brand dominated activity. In fact, today retailing is evolving into a global, high-tech business. Nevertheless, the traditional forms of independently owned small businesses co-exist along with the organized retailers like department stores, specialty stores, shopping malls etc.Organized retailing has emerged in a big way since 2000 onwards and with it; we are witnessing the emergence of new forms of retailing. The retailers market can be segmented ion the basis of

various retail formats and led to the development of a very complex retail environment. Retail trade may be defined as, A trade, which consist of selling to ultimate consumers of a variety of products in small lots. It is exactly and literally so and is meaningful that retail trade is that cuts off smaller portions from large lump of goods. From the bulk of products procured by the wholesaler, small lots are cut and distributed through retailers. Retailers are the last link in the channel of distribution between the manufacture and the ultimate consumer. The retail shop is one of the oldest and most widely used business establishments in any country. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. It includes all activities directly and indirectly related to the sale of goods or services to the ultimate consumer. Irrespective of who sells, thedistinction of retailing is normally made on the basis of to whom the products are sold. Retailing is subject to constant and dramatic changes. Features of retailing: Key member in the channel of distribution: Retailer as the link in the chain of distribution performs good many functions of marketing. The channel of distribution goes incomplete without his contributions to make the final consumers buy the products. He acts as a catalyst agent to both the manufacturers as well as to the customers. Buying & Assembling: Retailer assembles products from different manufactures and wholesalers and stock wide variety of products to meet the varied and small requirements of large number of customers. This assembling is possible through the process of buying variety of products from different sellers. Warehousing: Retailer is a safety valve for releasing the goods in quantities of different varieties and price ranges according to the consumer needs. Warehousing makes possible holding the stocks to match between the consumer demand and supply conditions. Selling: The final aim of a retailer is to sell the products so bought and held by him. Retailer is rightly called as the buying agent of consumers. He is the means to dispose the goods to the consumers. Successful retailing needs good deal of salesmanship tactics. Risk-shouldering: Risk shouldering is the basic responsibility of a retailer arising out of physical deteriorations and changes in prices. These are unavoidable as he holds sufficient and variety of inventories from the time they are bought till they sell. Grading & Packing: Retailers undertake second round grading and packing activities left by the manufactures and wholesalers. As he sells in loose packs and very odd lots, packing assumes a particular importance. Financing: In successful marketing, the contribution of retailers is really worth emphasizing with consumer financing. His financing consists of credit granted on liberal terms to the consumers, investment in stocks, salaries & wages and other trade expenses. Advertising: Retailers are the best agents to advertise the products and ideas. In collaboration with the

wholesaler and producer, retailers do undertake shop display, distribution of sales literature, introduction of new product etc., Supply of Market Information: As being in close and constant touch with consumers, he clearly keenly observes, studies the consumer behaviour, changes in tastes and fashions and therefore demands. This collected information is passed on to the wholesalers & manufacturers for their perusal. Retail Sector and its Growth Business Monitor International's India Retail Report provides industry professionals and strategists, corporate analysts, retail associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on India's retail industry. The Q112 BMI India Retail Report forecasts total retail sales will grow from INR20.26trn (US$422.09bn) in 2011 to INR31.78trn (US$825.46bn) by 2015. Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of organized retail infrastructure are key factors behind the forecast growth. As well as an expanding middle and upper class consumer base, there will also be opportunities in India's second- and third-tier cities. The greater availability of personal credit and a growing vehicle population providing improved mobility also contribute to a trend of 12.1% average annual retail sales growth throughout the period. Tourism is also a major contributor to the Indian retail sector. Tourist arrivals rose by 8% in 2010 to 5.40mn, from 4.99mn in 2009. Foreign exchange earnings from tourism during 2010 were US$13.24bn, up 9.55% from US$12.08bn the year before. India's nominal GDP is forecast at US$2.0trn in 2011. Average annual GDP growth of 7.6% is predicted by BMI through to 2015. With the population expected to increase from 1.24bn in 2011 to 1.31bn by 2015, GDP per capita is forecast to rise 92.6% by the end of the forecast period, reaching US$3,063. The growth in the overall retail market will be driven largely by the explosion in the organized retail sector. Domestic retailers such as Reliance Retail and Pantaloons Retail continue to invest heavily in increasing their store networks and improving in-store offerings, and the impact they have on growth will be boosted by the arrival of expansion-oriented multinationals. Reliance Retail was looking to invest up to INR1.5bn (US$33mn) in 150 new stores by March 2011, adding to its existing 1,050-store network. CEO Bijou Kurien said: Now that the recession is over, several new and stalled projects will get started. BMI would focus on both value retail as well as specialty, non-food retail stores.' Reliance recently opened its 103rd Vision

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Mass grocery retail (MGR) sales in India are expected to undergo enormous growth over the forecast period. BMI predicts that sales through MGR outlets will increase by 219% to reach US$28.14bn by 2015. This is a consequence of India's dramatic, rapid shift from small independent retailers to large, modern outlets, although it must also be noted that this growth is forecast to come from a very low starting point. BMI forecasts consumer electronic sales at US$29.44bn in 2011, with over-the-counter (OTC) pharmaceutical sales at US$3.03bn. The former sub-sector is expected to show growth of 78.5% between 2011 and 2015, reaching US$52.55bn, with projected double-digit growth of key products such as notebooks, mobile handsets and TVs. OTC pharmaceuticals, meanwhile, should increase by 87.9% throughout the forecast period, to reach US$5.69bn. Automotive sales are forecast to increase from 3.60mn units in 2011 to 5.21mn units by 2015, an increase of 44.8%, with the premium segment in particular benefiting from higher levels of personal wealth. Domestic vehicle sales surged by a phenomenal 45.9% year-on-year (y-o-y) in October 2010, driven by a 22.0% increase in commercial credit (the fastest pace since 2008). Retail sales for the BMI universe of Asian countries in 2011 are a forecast US$3.13trn. China and India are predicted to account for nearly 91% of regional retail sales in 2011, and by 2015 their share of the regional market is expected to be more than 92%. Growth in regional retail sales for 2011-2015 is forecast by BMI at 71.6%, an annual average 14.4%. India should experience the most rapid rate of growth, followed by China. India's forecast market share of 13.2% in 2011 is expected to increase to 15.0% by 2015.

Business Monitor International's India Retail Report provides industry professionals and strategists, corporate analysts, retail associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on India's retail industry. The Q212 BMI India Retail Report forecasts that total retail sales will grow from INR22.53trn (US$489.80bn) in 2012 to INR27.73trn (US$739.56bn) by 2016. Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of organised retail infrastructure are key factors behind the forecast growth. As well as an expanding middle and upper class consumer base, there will also be opportunities in Indias second- and third-tier cities. The greater availability of personal credit and a growing vehicle population providing improved mobility also contribute to a trend of 6.9% average annual retail sales growth throughout the period.

Indias nominal GDP is forecast at US$2.10trn in 2012. Average annual GDP growth of 7.7% is predicted by BMI through to 2016. With the population expected to increase from 1.26bn in 2012 to 1.32bn by 2016, GDP per capita is forecast to rise 77.9% by the end of the forecast period, reaching US$2,980. The growth in the overall retail market will be driven largely by the explosion in the organised retail sector. Domestic retailers such as Reliance Retail and Pantaloon Retail continue to invest heavily in increasing their store networks and improving in-store offerings, and the impact they have on growth will be boosted by the arrival of expansionoriented multinationals. Reliance Retail was looking to invest up to INR1.5bn (US$33mn) in 150 new stores by March 2011, adding to its existing 1,050-store network. CEO Bijou Kurien said, Now that the recession is over, several new and stalled projects will get started. BMI would focus on both value retail as well as specialty, non-food retail stores. Reliance recently opened its 103rd Vision Express optical outlet in India in partnership with GrandVision. Mass grocery retail (MGR) sales in India are expected to undergo enormous growth over the forecast period. BMI predicts that sales through MGR outlets will increase by 111% to reach US$69.23bn by 2016. This is a consequence of Indias dramatic, rapid shift from small independent retailers to large, modern outlets, although it must also be noted that this growth is forecast to come from a very low starting point. BMI forecasts consumer electronic sales at US$33.92bn in 2012, with over-the-counter (OTC) pharmaceutical sales at US$3.38bn. The former sub-sector is expected to show growth of 75.2% between 2012 and 2016, reaching US$59.44bn, with projected double-digit growth of key products such as notebooks, mobile handsets and TVs. OTC pharmaceuticals, meanwhile, should increase by 94.4% throughout the forecast period, to reach US$6.58bn. Retail sales for the BMI grouping of Asian countries in 2012 are a forecast US$3.78trn. China and India are predicted to account for nearly 92% of regional retail sales in 2012, and by 2016 their share of the regional market is expected to be more than 92%. Growth in regional retail sales for 2012-2016 is forecast by BMI at 31.2%, an annual average 9.0%. India should experience the most rapid rate of growth, followed by Singapore. Indias forecast market share of 13.0% in 2012 is expected to increase to 14.9% by 2015.