RETAIL MANAGEMENT

AN OVERVIEW & ENVIRONMENT

June 2020
Retail Overview
• Recap

• Non-linear

• Multiple channels/ touch points

• Customer / shopper centric

Retail environment is dynamic
Retail Environment
• Changes in our natural and social environment are constantly
affecting what consumers wants and how retailers can provide
them with their requirements.

• Customers are changing due to change in income, technology and

lifestyles. Covid 19 has impacted consumer lifestyle, income and
how they shop, stock and consumer products.

• Retailers are interested in these changes because they affect how

much people want to buy and the cost of providing customers with
the products and services that they want
Retail environment - Competitive
• Multiple brands

• Omni-channel (competition between various retail channels e.g.

store vs. online)

• Price for same product/brand much cheaper online due to reduced

cost of reaching the consumer (elimination of different layers,
merchandising, display, stocking, etc)
 Retail environment - Legal
• Check on competitive pricing

• Amazon and Walmart’s Flipkart are now banned from cutting

exclusive arrangements with sellers, offering deep discounts or
holding any business interest in online merchants on their websites

https://www.digitalcommerce360.com/2019/02/01/new-ecommerce-regulations-in-india-foil-amazon-and-walmarts-plans
/
Retail environment - Economic
• Growing economy and increased FDIs

• High interest of international retailers to open shop in India e.g.

Walmart due to the size of the middle class segment and youth in
India

• Companies reviewing retail strategy to ensure presence across

channels e.g. Levis – exclusive store, multi-brand store, website,
etc
Retail environment - Technology
• Easy and cheap access to the internet

• High penetration of smart phone particularly among youngsters

• App based shopping

Retail environment – Global vs. Indian
Global / developed countries
India
Modern vs. Traditional Trade
Evolution of Retailing Industry in India

Traditional Modern

The ratio is inverse in developed nations

https://www.livemint.com/Consumer/sBOQbidAi81pYCocLMIAvN/Indians-do-10-of-their-shopping-in-supermarkets.html
Role of Retail
• Pivotal

• Strongest and final link between manufacturer and consumer

• Impact of the pandemic

Recap & Exercise