They also add value by offering accessories and additional related products at the same outlet. A person who owns a franchise has bought the right to a business plan and the use of products from an established brand or business. Retailers Classified on the Basis of Ownership One of the first decisions that the retailer has to make as a business owner is how the company should be structured. The service level of specialty stores is not as focused as it is with boutiques, though customer service is a key element to their success. Retail stores that offer products on the list price do not give discounts on a regular price, though they engage in promotions. This type of retailer is highly convenient and is able to supply a wider geographic customer base.
Unlike smaller, independent retailers with lesser financial means, they can also take advantage of such tools as computers and information technology. From to large , a mall has many retailers competing with each other under one roof. Street vendors are found in almost every city in India, and the business capital of Mumbai has a number of shopping areas comprised solely of street vendors. Therefore such stores should stock only those items whose purchases the family cannot postpone till the weekend. Supercenter developed based on the European Hypermarkets, an extremely large retailing facility that offers many types of product in addition to foods. Retailing makes products available when and where customers want to buy them. Within the world of retail, there are different methods for consumers to get the products they need and want.
They can do this by bulk buying, accepting low margins, managing costs tightly and choosing locations where real estate prices are low. Prestige Pricing Pricing above competition According to prestige pricing mechanism, the price of the merchandise is set slightly above the competitors. Operational structure defines the key strategic decision of retail entity, whether to hire employees and manage the distributed sales function internally or to reach customers though franchised outlets owned and operated by local entrepreneurs. More and more retail businesses are getting a start at home. According to cost plus pricing strategy the retailer adds some extra amount to the actual cost price of the product to earn his share of profits.
Wal-Mart currently operates more than 1300 discount stores in United States. Department Stores These retailers are general merchandisers offering mid-to-high quality products and strong level of services, though in most cases these retailers would not fall into the full-service category. Category Killers Many major retail chains have taken what were previously narrowly focused, small specialty store concepts and have expanded them to create large specialty stores. A mall would consist of several retail outlets each selling their own merchandise but at a common platform. They wouldnt offer high-end products. These hawkers sell not just clothes and accessories, but also local food.
These are most commonly found on every street in a city, and cater primarily to local residents. Called category killers, these stores eliminate competition in the specified category. Giga-fren Other retail formats run by the chain include Super Centre, the company's discount supermarket chain; King- Centre, a smaller version of hard discount- format retail centres; Super Centre City, neighbourhood stores based on the Super Centre model, and Co-Op, medium-sized convenience stores generally found in Tel Aviv. Retailing is becoming international in nature and is slowly emerging as an important service. You could go to the store, you could look on a web site, or you could look through a catalog and find something you like. Many communities are hard at work to revitalize their downtown areas, and retailers can greatly benefit from this effort. For instance, while Sears once carried a wide range of products from hardware to cosmetics, Nordstrom focuses their products on clothing and personal care products.
Your community probably has many shopping centers of various sizes. Other examples are private insurance companies, and credit companies etc. Hazarika2 Retailing includes all the activities involved in selling goods and services directly to final consumers for personal, non-business use. People who joined in with similar companies like McDonalds also found success. Retailers have a huge amount of information about customer behaviour but all this information is not passed on faithfully to the companies. On specific market days they assemble for exchange of goods and services. The basic attraction for shoppers is convenience.
Classification of Retailers on the basis of Operational Structure Retail businesses are classified on the basis of their operational and. Impulse purchase are those that have not been planned. The concept of franchise businesses began with none other than the sewing machine manufacturer, Singer. Customers would like to travel some distance for their weekend trips. Proximity to customers may even become a liability, because for most people, the idea of entertainment is not walking into the theatre or restaurant which is next door. Product categories in which this format is popular are footwear, clothing, furniture and furnishing.
Non Store Retailing In non store retailing, customers do not go to a store to buy. As the economy of a country develops, people will want more sophistication and variety in greater number of categories and this can be provided only in this type of format. The supply chain begins with raw materials and ends with finished goods being sold to people like our guy that needs a shirt. Consumer like one stop shopping and will travel further to get to the store. This epithet has its roots in the huge number of retail enterprises in India, which were over 12 million in 2003. Recently, some scholars have started referring to India as a nation of shopkeepers. A condition of Bargain - where the customer negotiates with the retailer to reduce the price of the merchandise.