Organized Vs Unorganized

Retailing

www.studygalaxy.com

Retailing
Retailing consists of the sale of goods or
merchandise, from a fixed location such as a
department store or kiosk, in small or individual lots
for direct consumption by the purchaser. Retail
comes from the French word retaillier which refers
to "cutting off, clip and divide" in terms of tailoring
(1365). It first was recorded as a noun with the
meaning of a "sale in small quantities" in 1433
(French). Its literal meaning for retail was to "cut
off, shred, paring". Like the French, the word retail
in both Dutch and German (detailhandel and
Einzelhandel respectively) also refer to sale of small
quantities or items.

Retail types
There are three major types of
retailing.
The first is the market, a physical
location where buyers and sellers
converge. Usually this is done on town
squares, sidewalks or designated streets
and may involve the construction of
temporary structures (market stalls).

The second form is shop or store

trading
Some shops use counter-service,
where goods are out of reach of
buyers, and must be obtained from the
seller. This type of retail is common for
small expensive items (e.g. jewellry)
and controlled items like medicine and
liquor. Self-service, where goods may
be handled and examined prior to
purchase, has become more common
since the Twentieth Century.

A third form of retail is virtual

retail
where products are ordered via mail,
telephone or online without having
been examined physically but instead
in a catalog, on television or on a
website.

Retail sector: on an upward curve

India's vast middle class and its almost untapped
retail industry are key attractions for global retail
giants wanting to enter newer markets. While
organized retail in India is only two per cent of
the total US$ 215 billion retail industry, it is
expected to grow 25 per cent annually, driven by
changing lifestyles, strong income growth and
favorable demographic patterns.
KSA-Technopak, a retail consulting and research
agency, predicts that by 2010, organized
retailing in India will cross the US$ 21.5-billion
mark from the current size of US$ 7.5 billion.

Future of Retail in India

The Indian retail market is estimated at US$ 350

billion. But organised retail is estimated at only US$
8 billion. However, the opportunity is hugeby
2010, organised retail is expected to grow to US$ 22
billion. With the growth of organised retailing
estimated at 40 per cent (CAGR) over the next few
years,

Reasons for Retail Growth:

favourable demographics
rising consumer incomes
real estate developments
especially the emergence of new shopping
malls,
availability of better sourcing options - both
from within India and overseas - and
changing lifestyle.

Organized versus Unorganized

Retailing
Changing Age Profile And
Disintegration Of Joint Family
Growing Disposable Income
Income growth and structural changes
will fuel growth
Organised Retailing Will Expand
Sharply

CONCLUSION:
A further testimony to the fact that the
technology is being taken seriously, is its
deployment in strategic sectors like defense
the US Department of Defense (DoD) has
mandated the use of RFID tags at the case and
pallet level amongst all its suppliers so that it
can have complete visibility of all its goods and
assets. The Indian army could benefit hugely
from adopting RFID technology.
Some of the other sectors where RFID is
expected to witness widespread deployment
includes food, pharma, aerospace, automotive,
transport and logistics, and electronics.

EPC/RFID technology has great potential in

counterfeit detection across product categories a
killer application for India which can liberate from
the scourge of counterfeiting in pharma drugs,
automotive parts, food products, etc.
For a company, it is imperative first to develop a
clear understanding of how RFID affects supply
chain dynamics, and then be willing to question and
change the ways in which supply chain planning
and execution is done.

THANK YOU