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Emerging forms of Retailing
1.Rural Retailing
2.E - retailing
3.Transit retailing (airports , Metrostations)
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Rural Retailing
Rural India defined as----•Population less than 5000 people .
•Population density is less than 400 person/ sqkm
•At least 75% of population is engaged in Agricultural activities
Focus of Rural retailing:
1.Agro products2.Fertilizers / Pesticides / Insecticides
3.Convenience products
4.Banking / Insurance / Education
5.Fuel stations
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Major Players
1. Godrej Aadhar
2. ITC E-Chaupal (E- farmers,1lakh villages, 10
million farmers)
3. Hariyali Bazar by DSCL (3-4 acres per Bazar;300 Bazar )- Primarily Agro advise ,Agro
products and consumer goods retailing
along with credit schemes in collaborationwith HDFC
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Aadhaar•India’s 1st agro service cum rural retail venture by Godrej
Agrovet (2003) in Pune•Each Aadhaar outlet services around 20 villages in its radius.
•65 stores across the country in the states of Maharashtra ,
Gujarat , Punjab , Haryana, Andhra Pradesh, Tamil Nadu ,
Orissa ,West Bengal .
•Aadhaar centers Agronomists interacts with farmers to
educate them on farm practices , technical guidance , soil and
water testing services ,facilitate credit to farmers , Crop finance
/ insurance , agri-inputs and animal feeds ,provide a platform
to sell their produce in the form of buy back of output ,information (weather, price, and demand supply)
•They also retail basic food ,Grocery ,Apparel, footwear to
furniture, Kitchenware ,home appliances ,value-added services
including banking, postal services ,pharmacy
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Key Features of Airport Retailing
1. Shopping , Luxury , Lifestyle Brands , food ,educational /books , music .
2. Best of collection of Brands3. Actual buyers for food products , educational
and books ,4. Does not focus on Actual buyers for shoppingand luxury , lifestyle but on Potential buyers.
5. Acts as a platform to create awareness ,excitement , curiosity and interest amongst the
target customer group.
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Key Features of E- Retailing
1. Convenience
2. Saves time
3. Avoids Crowds
4. Research time
5. Low price
6. No salesperson
7. Judgment on the basis of Two senses8. Plastic money
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Introduction
• The e-retailing is called as e-Tailing, it is the
concept of selling of retail goods using
electronic media, in particular, the internet
• Started from early 1990’s.
• Business- to- consumer (B2C) transaction
model of e-commerce.
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Growing areas of e-retailing
• Books
• Music and DVD movies
• Groceries
• Games and software
• Clothing
• Travel
• Electronic and computer equipments
• Gift items
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• virtual (pure-play) e-tailers
Firms that sell directly to consumers over the Internet
without maintaining a physical sales channel
– Low overhead costs
– General purpose or specialized
• Brick and click retailers
Brick and click retailers that offer a transactional Web sitefrom which to conduct business,it is an addition for retailer.
– Sells in stores, via phones, over the Internet, via mobile devices
E-Retailing Business Models
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Advantages to consumers
• Convenience•Better information •Competitive pricing
•Ability to shop 24/7 •Wider product availability •Customized and personalized information andbuying options•Easy comparison shopping
•Quick delivery of digital products •Ability to create a one-on-one relationshipwith the Seller
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Advantages to e-retailers
• Location isunimportant• Size does not matter• Saves on the wagesand premises cost• Reach a global
audience• Accepts orders 24-hours a day• Low capital cost
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Disadvantages to consumer
• Credit card and security worries
• Lack of interaction
•
Can’t see or feel the merchandise • Don’t know how
• Premium charged for delivery
• Difficulties with returning goods for refund• Selling counterfeit
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Disadvantages to e-retailers
• Legal problems
• Complex logistics of fulfillment
•
E-selling less powerful than face-to-face• Pressure on margin and low price in-store
• Less role for traditional high street retail
expertise• After-sales care difficulties
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Top e-retailers in India
• Indiatimes.com,
• Fabmart.com,
•
Rediffshopping.com,• ebay.com,
• futurbazaar.com
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Why people like online shopping?
• Convenience
• Saves time
•
Avoids crowd• Lower prices
• No sales people involved
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Future prospects of E-retailing in India
• India’s middle-class is mushrooming, with growing purchasingpower and limited personal time.
• Increasing usage of credit and debit cards coupled with a growingyoung population who spend significant time online.
• Convenience of online product research, comparison shopping
and competitive pricing are driving consumers to make onlinepurchases.
• TATA group announces opening of an e-mall, in the next 2 months
• There are divergent views on the future of e-retailing in India.Some experts are of the opinion that the giant, big brand retailerswould dominate the small ones due to their wider investmentcapacities. It would be next to impossible for the small retailers andthe kiranas to prove their existence in the battlefield of onlineretailing. Another viewpoint is that there would be an exponentialgrowth in the online retailing business in India.