PROJECT REPORT
(Submitted for the Degree of B.Com. Honours in Accounting & Finance under the University of
Calcutta)
TITLE OF THE PROJECT
A comparative study of retailing.
Submitted By
Name of the Candidate: Manzeer Dutta
C.U Registration Roll No.: 112-1121-0210-13
C.U Roll No.:
1112-61-0079
Name of the College:
City college, Amherst st kol-700009.
College Roll No.:
2652
Supervised By
Name of the Supervisor: Mr Swarup Saha
Name of the College:
City college
Month & Year of Submission
February, 2016
SUPERVISOR CERTIFICATE
This is to certify that Mr. MANZEER DUTTA a student of B.Com Honours in Accounting & Finance of
CITY COLLEGE KOLKATA-09 under the UNIVERSITY OF CALCUTTA has worked under my
supervision and guidance for his work Project Work and prepared a Project Report with the title A
COMPARITIVE STUDY ON RETAILING. Which he is submitting, is his genuine and original work to the
best of my knowledge.
Place: KOLKATA
Date:
Signature:
Name: Prof. SWARUP SAHA
Designation: Faculty
Name of the College: CITY COLLAGE AMHERST STREET KOL-700009
STUDENTS DECLARATION
I hereby declare that the Project Work with the title A COMPARITIVE STUDY ON RETAILING. submitted
by me for the partial fulfilment of the degree of B.Com Honours in Accounting & Finance under the
UNIVERSITY OF CALCUTTA is my original work and has not been submitted earlier to any other
University for the fulfilment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from any
earlier work done by others or by me. However, extracts of any literature which has been used for this report has
been duly acknowledge providing details of such literature in the references.
Signature:
Name: MANZEER DUTTA
Address: 39/A Debai pukur road ,nandankananhindmotor
Hooghly-712233.
Place: KOLKATA
Date:
Registration No.: 112-1121-0210-13
C.U Roll No.: 1112-61-0079
College Roll No.: 2652
ACKNOWLEDGEMENT
I wish to express my deep sense of gratitude to those people who have given their valuable
ideas, suggestions, guidance and their valuable time in the successful completion of my project.
I sincerely express my heartful thanks to UNIVERSITY OF CALCUTTA who have allowed
us to do something different which would take us to the practical life and explore it. I would
also like to thank CITY COLLAGE KOLKATA-700009who has given me the platform to
work on this project.
I am thankful to PROF. SWARUP SAHA for her valuable guidance which helped me to give a
satisfactory shape to the project.
Finally, I would thank my family members and friends for their support and encouragement .
CONTENTS
CHAPTERS
PAGE NO.
CHAPTER I: INTRODUCTION
6-7
1.1. Background
1.2. Justification of the Study
1.3. Brief Review of Literature
1.4. Objective of the Study
1.5. Research Methodology
1.6. Limitation of the Study
1.7. Chapter Planning
6
6
6
6
6
6
7
CHAPTER II: CONCEPTUAL FRAMEWORK
8-10
2.1. Definition of retailing
2.2. Types of retailing
2.3. Difference between large and small scale retail
2.4. Impact of large scale retailers on consumers
2.5 Impact of small scale retailers on consumers
10
CHAPTER III: STUDY OF LITERATURE
10-15
3.1 Literature research on retail
10
a. type of products
b.types of marketing strategy
c.promoinent large scale organisations
10
10-11
11-15
CHAPTER IV: FINDINGS AND OTHER ASPECTS
16-22
4.1 Measures taken to protect small retaillers
16-17
4.2 Retail pricing
18
4.3 Retail competition percentage in different countries
18-20
4.4 Staffing
20
4.5 Transfer mechanisms
20-21
4.6 Second hand retail
21
4.7 challenges faced by large and small scale retailers
20
4.8 Government investment in retail
CHAPTER V: CONCLUSION AND RECOMMENDATION
20-21
23
5.1 conclusion
23
5.2 Recommendation
23
CHAPTER VI BIBLIOGRAPHY
24
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
This project studies the scenario of the retail structure of various countries their method of distribution of
goods and services and properplanning and their drawbacks and benifits which they receive out of their
business.The competition faced with possible competitors and so on.
1.2
JUSTIFICATION OF THE STUDY
Retailing takes an important role to every country. In present time, retailing is obligated to all of the company
involved in selling its goods to consumers. Each company try to snatch out all of the profit in their own grasp.
But it is remembered that the companies not only respects of its profit. Beside this, it should take care that it can
satisfy the wants and needs of the consumers. The company needs to take part the social purpose in order to
retain its reputation except of its economic accomplishment.
In present time, many companies constitute of their own franchisee shops and sell through big retail outlets. we
shall maintain the utilities of the product adequately, as per the materials should utilise in properlyand also
provide feed back to the company.Through retailing the company can see the demand for its products . So,
retailing is mandatory to each company for their promotion.
1.3 BRIEF REVIEW OF LITERATURE
Consumer satisfaction and profit are the main mantra of business.its leads to the success of the business.Besides
we should remember that the small businessmen should not be suppressed by big retailers .In order to preserve
the interests of both the government has given the petty retailers certain benifits.
1.4
OBJECTIVES OF THE STUDY
i) to understand retailing defintition.
ii) To understand retailing policies in different world,their marketing strategies.
iii) To understand the various types of retail,their differences and staffing in retail outlets and challenges
faced by retailers and their transfer mechanisms.
. iv) To find out competition of retailers in different countries and the measures of the government.
1.5
RESEARCH METHODOLOGY
I have taken the topic of retailing and I have given the definition of retailing along with relavant data of the
retail structure and types of retail in different countries in the worldand staffing in retail outlets and their
management and the measures of the government.The retail pricing and other aspects involving retail like
challenges and retailers drawbacks etc.
1.6
LIMITATIONS OF STUDY
1. How far the government has succeeded in giving equal opourtinities to small and bg retailers.
2. The data may vary vastly with actual figures.
1.7 CHAPTER PLANING
CHAPTER-1: I have done in this chapter the project background, justification of study, review
of literature, objective & limitation of the study.
CHAPTER-2: I have given a concept about Retailing,small and large scale retail, the
characterstics of small and large scale retailing,and their differences.
CHAPTER-3: I have given data about marketing strategy of retail ,types of Products and
Stores and warehouses available in retailing.
CHAPTER-4: I have studied the measures the government has taken to protect the interests of
small scale retailers,challanges faced by retailers,staffingin retail storesand retail pricingand
challanges faced by retailers and transfer mechanisimsetc.
CHAPTER 2
Conceptual frame work
2.1Definition of retailling
Retail is the process of selling consumer goods and/or services to customers through multiple channels of
distribution to earn a profit. Demand is created through diverse target markets and promotional tactics, satisfying
consumers' wants and needs through a lean supply chain. In the 2000s, an increasing amount of retailing is
done online using electronic payment and delivery via a courieror postal mail. Retailing includes subordinated
services, such as delivery. The term
"retailer" is also applied where a service provider services the small orders of a large number of individuals, rather
than large orders of a small number of wholesale, corporate or government clientele. Shops may be on residential
streets, streets with few or no houses, or in a shopping mall. Shopping streetsmay be for pedestrians only.
Sometimes a shopping street has a partial or full roof to create a more comfortable shopping environment protecting
customers from various types of weather conditions such as extreme temperatures, winds or precipitation. Online
retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms
of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain final goods including
necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often
involves window shopping (just looking, not buying) and browsing and does not always result in a purchase
2.2Types of retailling
Small-scale retailing
Features of Small scale retailing
1. They normally run as a sole proprietorship (sole trader) or a partnership
2. The capital is usually small and it is raised from personal saving, borrowed from friends or family or loan from banks
3. Small retailers obtain a great variety of goods in small quantities from wholesaler
4. The sole proprietorship (sole trader) normally serves his customers with the help of some assistants. Therefore, he
has the opportunity to get know his regular customers well
Reasons why Small retailers buy from the Wholesaler
1. Small Capital
The small retailer has only a small capital and cannot afford to buy in bulk from the manufacturer therefore he can
only make small orders at a particular time
2. Limited market
The small retailers has mainly a regular customers therefore the markets is only limited to the people living in the
area near their shop
3. Small turnover
The total sales per month is small
Large Scale Retail Organisations
The retail trade is conducted now on a large scale. The mass production of goods
and the concentration of population in urban centres has necessitated the
establishment of large-scale retail trading houses. There are many advantages of
retailing on a large scale.
2.3Differences between large and small scale retail
1 The large scale retailers have large capital while the small retailers have less capital.
2The large scale retailers have efficient management,which lacks among the small scale retailers.
3 The large scale retailers can purchase in bulk while the small scale retailers deals in small amounts and they
cannot give benefits and offers including seasonal and non seasonal .
4 The large scale retailers have proper insurance of their goods which the small scale retailers donot have.
5The large scale retailers can avail credits easily from banks and other financial institutionswhich the small scall
retailers cannot.
2.4Impact of large scale retaillers on consumers
1 ready stock
2. wide choice
3all under one roof
4 education
2.5Impact of small scale retaillers on consumers
1Credit facility available
2accessible at any time due to good relation ship
CHAPTER 3
3.1Literature research on retail
A marketplace is a location where goods and services are exchanged. The traditional market square is a city
square where traders set up stalls and buyers browse the stores. This kind of market is very old, and countless such
markets are still in operation around the whole world.
In some parts of the world, the retail business is still dominated by small family-run stores, but this market is
increasingly being taken over by large retail chains. Most of these stores are called high street stores. Gradually
high street stores are being re-grouped in condensed geographical areas along specific streets or districts such as
the Magnificent Mile in Chicago, Illinois or at single locations called malls. These are more defined and planned
spaces for retail stores and brands.
a.Types by products
Retail is usually classified by type of products as follows:
Food products typically require cold storage facilities.
Hard goods or durable goods ("hardline retailers")
[2]
automobiles, appliances, electronics, furniture, sporting goods, lumber, etc., and parts for them. Goods that
do not quickly wear out and provide utility over time.
Soft goods or consumables[3][4] clothing, other fabrics, footwear, cosmetics, medicines and stationery.
Goods that are consumed after one use or have a limited period (typically under three years) in which you may
use them.
Arts Contemporary art galleries, Bookstores, Handicrafts, Musical instruments, Gift shops, and supplies
for them.
b.Types by marketing strategy
There are the following types of retailers by marketing strategy:
Discount department store Charters Towers, North Queensland, Australia
Department store
Department stores are very large stores offering a huge assortment of "soft" and "hard" goods which often bear a
resemblance to a collection of specialty stores. A retailer of such store carries a variety of categories and has a
broad assortment of goods at average price. They offer considerable customer service.
Discount store
Discount stores tend to offer a wide array of products and services, but they compete mainly on price. They offer
extensive assortments of merchandise at affordable and cut-rate prices. In the past, retailers sold less fashionoriented brands. However, in more recent years companies such as TJX Companies (Own T.J. Maxx and Marshalls)
and Ross Stores are discount store operations increasingly offering fashion oriented brands on a larger scale.
Warehouse store
Warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge
a membership fee.
Variety store
Variety stores offer extremely low-cost goods, with limited selection.
Demographic
Retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals).
Mom-And-Pop
A small retail outlet owned and operated by an individual or family. Focuses on a relatively limited and selective set
of products.
Specialty store
A specialty (BE: speciality) store has a narrow marketing focus either specializing on specific merchandise, such
as toys, shoes, or clothing, or on a target audience, such as children, tourists, or plus-size women. [5] Size of store
varies some specialty stores might be retail giants such as Toys "R" Us, Foot Locker, and The Body Shop, while
others might be small, individual shops such as Nutters of Savile Row.[5] Such stores, regardless of size, tend to
have a greater depth of the specialist stock than general stores, and generally offer specialist product knowledge
valued by the consumer. Pricing is usually not the priority when consumers are deciding upon a specialty store;
factors such as branding image, selection choice, and purchasing assistance are seen as important. [5] They differ
from department stores and supermarkets which carry a wide range of merchandise.[6]
Boutique
Boutique or concept stores are similar to specialty stores. Concept stores are very small in size, and only ever stock
one brand. They are run by the brand that controls them. An example of brand that distributes largely through their
own widely distributed concept stores is L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's
stores are too small to be considered a specialty store proper.
General store
A general store is a rural store that supplies the main needs for the local community;
Convenience store
A convenience store provides limited amount of merchandise at more than average prices with a speedy checkout.
This store is ideal for emergency and immediate purchaseconsumables as it often works with extended hours,
stocking everyday;
Hypermarkets
Provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively
less than other retail formats.
Supermarket
A supermarket is a self-service store consisting mainly of grocery and limited products on non food items. They may
adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000 and 40,000
square feet (3,700 m2). Example: SPAR supermarket.
Mall
A shopping mall has a range of retail shops at a single outlet. They can include products, food and entertainment
under one roof. Malls provide 7% of retail revenue in India, 10% in Vietnam, 25% in China, 28% in Indonesia, 39%
in the Philippines, and 45% in Thailand.[7]
"Category killer" or specialist
By supplying wide assortment in a single category for lower prices a category killer retailer can "kill" that category for
other retailers. For few categories, such as electronics, the products are displayed at the centre of the store and
sales person will be available to address customer queries and give suggestions when required. Other retail format
stores are forced to reduce the prices if a category specialist retail store is present in the vicinity.
E-tailer
The customer can shop and order through the internet and the merchandise is dropped at the customer's doorstep
or an e-tailer. Here the retailers use drop shipping technique. They accept the payment for the product but the
customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who
do not want to travel to retail stores and are interested in home shopping.
Vending machine
A vending machine is an automated piece of equipment wherein customers can drop the money in the machine and
acquire the products. Some stores take a no frills approach, while others are "mid-range" or "high end", depending
on what income level they target.
Other types[edit]
Other types of retail store include:
Automated Retail stores self-service, robotic kiosks located in airports, malls and grocery stores. The
stores accept credit cards and are usually open 24/7. Examples include ZoomShops and Redbox.
Big-box stores encompass larger department, discount, general merchandise, and warehouse stores.
Retailers can opt for a format as each provides different retail mix to its customers based on their customer
demographics, lifestyle and purchase behaviour. A good format will lend a hand to display products well and entice
the target customers to spawn sales.
However, in spite of the economies of large scale retailing, the small-scale units could not be eliminated because of
the various special advantages possessed by them.
c.Some of the more prominent large-scale retail organisations are as follows:
Departmental Stores.
Multiple Shops or Chain Stores.
mail Order Houses.
Super Markets.
Consumer Co-Operative Stores.
Hire-Purchase Trading Houses.
Vending Machines.
One Price Shops.
Departmental Stores
A departmental store is a large-scale retail organisation having a number of departments under one roof. Each
department specializes in one particular kind of trade. All these departments are centrally organized and are under
one united management and control. A departmental store is an organisation of several retail stores carried on in
one building and under united controlled management. The basic objective of a departmental store is to provide a
large variety or merchandise from a pin to an aero plane at one place.
Multiple Shops or Chain Stores
A multiple shop system is a network of branch shops, situated at different localities in the city or in different parts of
the country, under a centralized management and dealing in similar lines of goods. Such multiple shops are very
common and popular in the West and are known as Chain Stores. According to J.L. Fri, Chain stores is a group of
stores handling similar lines of merchandise with single ownership and centralized Location.
The Federal Trade commission defined a chain store as an organisation owing a controlling interest in two or more
establishments which sell substantially similar merchandise at retail prices.
Mail Order Sale Houses
mail order sale is a retail business where orders are placed by post or mail and goods are received either by
registered parcel or V.P.P. i.e., Value Payable Post. Under such a type of selling, the seller advertises his products in
the leading dailies and magazines of the area and the intending buyers respond to such advertisements by requesting
for catalogues and price lists from the seller. The buyers do not inspect the goods before purchasing but place orders
on the basis of the advertisements which they see in the newspapers and magazines. After orders are received from
customers, the goods are dispatched by V.P.P. or registered mail. The postman of the buyers locality delivers the
goods to him and takes the payment for the same. Thus the post office plays a vital role in such a type of sale, and it
is because of this type of sale is also sometimes referred to as Shopping by Post.
Super Markets
The super market is a large-scale retail institution specializing in necessaries and convenience goods. They have
huge premises and generally deal in food and non-food articles. In the words of M. M. ZIMMERMAN, A super
market is a departmentalized retail establishment having four basic departments viz, self-service grocery, meat
produce diary products plus other household departments, doing a maximum business. It may be entirely owneroperated or have some of the departments leased out on a concession basis.
Super markets came into existence in the USA during the Great Depression of the thirties. However, the original
super markets were established by independent merchants who dealt mainly in food products.
Consumer Co-Operative Stores
A consumer co-operative is a retail business which is owned by the consumers themselves. Their basic objective is to
eliminate middlemen. The consumer join together and manage the business and the profit thus earned is retained
among themselves in the proportion of their contribution. The society purchases in bulk and avails the discounts and
sells in small lots to the members. Some of the co-operative stores are run on a large-scale basis while others are
small in size and nature. This form of retailing originated in England in the year 1844 when a group of 28 weavers
established the ROCKDALE PIONEERS EQUITABLE SOCIETY with the purpose of establishing a store for the sale
of provisions, clothing etc.
Hire-Purchase Trading Houses
According to J. STEPHENSON, in his book, The principles and Practice of commerce, the fire-purchase is a form
of trade in which credit is granted to the buyer on the security of a lien on the goods. An agreement is made
between the buyer and the seller that the former will take possession of the goods sold by the latter and shall make
payments in installments at regular intervals. The ownership lies with the seller until the last installment is paid by
the buyer, and in case the buyer fails to make the payment in full, the seller is free to take back the goods from the
buyer.
Under the installment payment transaction, the ownership passes on to the buyer from the seller the moment the
former pays the first installment. If, however, the buyer does not make the subsequent payments, the seller can sue
him in a court of law for getting the payments, but cannot take the goods as such from the buyer.
Vending Machines
Such selling machines are extensively used in the West. The vending machine is operated by inserting a coin and the
buyer can get the articles. Vending machines are usually acquired to sell articles like cigarettes, soft drinks,
chocolates, candles etc. Railway platform and bus tickets are also sold by this method. The articles sold by a vending
machine are pre-packed and labeled and are usually of reputed brands. The goods should be uniform in size and
shape and less bulky in weight. The installation of such machines is an expensive affair and it needs regular
maintenance also. Such machines are quite attractive in appearance and installed at busy shopping centres.
One-Price Shops
Such shops usually sell small articles at the same price. The usual articles sold by such shops are pens, socks,
handkerchiefs, knives, etc., where each article is sold at a fixed price, and the price is usually very low, e.g., each pen
for one rupee. The origin of such a type of retail shop was in USA and is associated with the name of Mr. Woolworth.
In India, the hawkers and peddlers usually sell cheap articles on wayside pavements
CHAPTER 4 FINDINGS AND OTHER ASPECTS
4.1
A branch of Philadelphia's Sovereign Bank, a major lender to small businesses.
With most of the world's business being conducted by small entrepreneurs, it makes good economic sense for
governments to implement policies that encourage small-business growth. The five ways in which government can
have the most positive effect are by making capital more accessible, facilitating business education, promoting
entrepreneurship, reducing regulatory burdens, and protecting intellectual property.
Steve Strauss, a lawyer, author, television commentator, and USA Today business columnist, is one of America's
leading experts on entrepreneurship and business development.
In the late 1970s, a commune in communist China was so broke, and the peasants who ran the commune so hungry
and poor, that they decided to risk their lives and do the unthinkable: The peasants secretly privatized and divided up
the land. Each farmer had his own plot with which to grow his own food, use it, and sell the extra, if any.
Within a year, that commune became one of the most prosperous in China and, not surprisingly, caught the eye of
communist officials. Yet rather than condemn what was a decidedly noncommunist idea, the government gave private
commune plots an official blessing. The rest, as they say, is history. China's capitalist turn became the greatest
antipoverty program in the history of the world, freeing millions of people from poverty in a few short decades.
That government policies can have a huge impact on the growth and promotion of small business is a vast
understatement. In a world beset by too much hunger and need, small business is one thing with a proven capacity
not only to ease suffering, but also to create a solid middle class, generate a secure tax base, and foster social
stability. All in all, small business is good business.
Which raises the question: For those countries wishing to promote small business, what policies can be adopted to
encourage its growth? I suggest that there are five main areas where appropriate government policies can have a
huge impact on small-business growth.
MAKE CAPITAL EASILY AVAILABLE
When I was a young boy, my father owned several carpet stores. One day, I was given the assignment in school to
write an essay about what he did for a living. Because "retail carpet store owner" was hard for me to describe, I asked
him what he did. "Well," he said, "I'm an entrepreneur." A bit confused, I asked him what that was, and he replied,
"An entrepreneur is a person who takes a risk with money to make money."
That remains as good a description as I have ever heard, although since then I have learned that entrepreneurs
actually like to take small, calculated risks. Therefore, if a government wants to promote small business, it must
advance policies that reduce the risk inherent in entrepreneurship. That way, people will be more willing to leave the
comforts of their jobs and start new businesses.
So the first policy necessary to promote small-business development is one that assists would-be entrepreneurs find
the money they need to get started.
In the United States, we have a government agency called the Small Business Administration (SBA), whose duties
include helping entrepreneurs get the money they need to take the risks necessary to start small businesses.
Interestingly, the SBA does not actually make these loans, but it does guarantee them. Banks are more likely to loan
money to risky new businesses when they know that the SBA and the U.S. government will guarantee repayment,
even if the borrower defaults. The result is a vibrant U.S. economy in which 99 percent of all businesses are small
businesses.
So the first thing any government seeking to promote small business should do is to establish a pool of federally
guaranteed loans. Easy access to capital creates the foundation for a lively small-business sector.
TEACH ENTREPRENEURSHIP
There are many things that go into creating a successful small-business economy, but surely a significant one is a
collection of entrepreneurs willing to start new businesses. For that to occur, citizens must be able to learn business
skills. There are several ways in which governments can assist them in doing this:
Create "business incubators." A business incubator is a facility that offers start-up businesses a place to grow.
Typically, business incubators are associated with universities, and professors and other experts donate their time and
expertise teaching new entrepreneurs everything from sales and marketing to law and taxes. Once the would-be
small-business owners conclude this crash course in business, they move on and start their businesses, and new
entrepreneurs come in to take their place. Governments can offer universities financial incentives for creating oncampus business incubators.
Use the Internet. The SBA has online tutorials that teach business skills and ideas to anyone with Internet access
http://sba.gov/training/coursestake.html. Any government that wishes to promote small and medium-sized
enterprises should consider doing something similar.
Hire experts. Likewise, private-sector small-business experts can be hired to teach business skills online. I write a
weekly online column for the newspaper USA Today that does this:.
CELEBRATE AND FOSTER SMALL BUSINESS
Not only must new entrepreneurs be taught the skills necessary to succeed, but existing entrepreneurs should be
promoted so as to encourage more people to start small businesses. In Costa Rica and Uruguay, small-business fairs
and expos recognize small business and entrepreneurship. Uruguay also has awards for small businesses that
contribute to society. Indeed, there is plenty a government could do to promote small business. For example:
Sponsor an "Entrepreneur of the Year" award. A yearly award, on both the local and national levels, if well
publicized, could do much to create an entrepreneurial mind-set.
Tap the expertise of business leaders. A country that wants to promote small business must work to have its
population look up to entrepreneurs. One way to do this is for the government to tap business leaders to help solve
various issues and problems. Blue-ribbon government panels should take advantage of the expertise of entrepreneurs.
CREATE THE PROPER TAX AND REGULATORY ENVIRONMENT
A country's tax code is one of the best tools it has for promoting small-business growth. In the United States, for
instance, the tax code is changed often with the idea that certain tax credits, deductions, or reductions can be used to
foster growth in one segment or another.
Here is another example: Nearly 98 percent of all Canadian businesses are small businesses. The Certified
Management Accountants of Canada recently recommended to the Canadian Parliament that the best way to foster
even more small-business growth is through changes in Canada's tax policies, such as:
reducing the corporate tax rate;
offering tax credits for investments in training and education;
increasing the deductions for investments.
Aside from lowering taxes to encourage business formation, it is important to reduce and eventually eliminate those
government regulations that stymie business growth. The simpler and more expedited the regulatory process, the
greater the likelihood of small-business expansion.
PROTECT INTELLECTUAL PROPERTY
Any government that wants to encourage small business needs to produce laws that protect the innovations of
entrepreneurs.
4.2Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or
percentage) to the retailer's cost. Another common technique issuggested retail pricing. This simply involves
charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.
In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and
displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination,
where the sale price is dependent upon who the customer is. For example, a customer may have to pay more if the
seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for
youths, students, or senior citizens.
4.3COMPARING THE COMPETITION OF RETAIL IN DIFFERENT
COUNTRIES
Competition
Retail stores may or may not have competitors close enough to affect their pricing, product availability, and other
operations. A 2006 survey found that only 38% of retail stores in India believed they faced more than slight
competition.[10] Competition also affected less than half of retail stores in Kazakhstan, Bulgaria, and Azerbaijan. In all
countries the main competition was domestic, not foreign.[11]
Country
% of retail stores facing competition[11]
India
38%
Kazakhstan
44%
Bulgaria
46%
Azerbaijan
48%
Uzbekistan
58%
Armenia
58%
Georgia
59%
Kyrgyzstan
59%
Country
% of retail stores facing competition[11]
Russia
62%
Belarus
64%
Croatia
68%
Romania
68%
Ukraine
72%
Turkey
73%
Serbia
74%
Tajikistan
74%
Slovenia
77%
Latvia
78%
Bosnia and Herzegovina
79%
Moldova
79%
Czech Republic
80%
Slovakia
80%
Country
% of retail stores facing competition[11]
Poland
83%
Hungary
87%
Estonia
88%
Lithuania
88%
Macedonia
88%
Albania
89%
Retail trade provides 9% of all jobs in India and 14% of GDP.[10]
4.4Staffing
Because patronage at a retail outlet varies, flexibility in scheduling is desirable. Employee scheduling software is
sold, which, using known patterns of customer patronage, more or less reliably predicts the need for staffing for
various functions at times of the year, day of the month or week, and time of day. Usually needs vary widely.
Conforming staff utilization to staffing needs requires a flexible workforce which is available when needed but does
not have to be paid when they are not, part-time workers; as of 2012 70% of retail workers in the United States were
part-time. This may result in financial problems for the workers, who while they are required to be available at all
times if their work hours are to be maximized, may not have sufficient income to meet their family and other
obligations.[12]
4.5Transfer mechanisms
There are several ways in which consumers can receive goods from a retailer:
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. jewelry) and controlled items like medicine and liquor. It was
common before the 1900s in the United States and is more common in certain countries like India. [which?]
Click and Commute, where products are ordered online and are picked up via a drive through.
Ship to Store, where products are ordered online and can be picked up at the retailer's main store
Delivery, where goods are shipped directly to consumer's homes or workplaces. Mail order from a printed
catalog was invented in 1744 and was common in the late 19th and early 20th centuries. Ordering
by telephone was common in the 20th century, either from a catalog, newspaper, television advertisement or a
local restaurant menu, for immediate service (especially for pizza delivery), remaining in common use for food
orders. Internet shopping a form of delivery has eclipsed phone-ordering, and, in several sectors such
as books and music all other forms of buying. There is increasing competitor pressure to deliver consumer
goods- especially those offered online- in a more timely fashion. Large online retailers such as Amazon.com are
continually innovating and as of 2015 offer one-hour delivery in certain areas. They are also working with drone
technology to provide consumers with more efficient delivery options. Direct marketing,
including telemarketing and television shopping channels, are also used to generate telephone orders. started
gaining significant market share in developed countries in the 2000s.
Door-to-door sales, where the salesperson sometimes travels with the goods for sale.
Self-service, where goods may be handled and examined prior to purchase.
Digital delivery or Download, where intangible goods, such as music, film, and electronic books and
subscriptions to magazines, are delivered directly to the consumer in the form of information transmitted either
over wires or air-waves, and is reconstituted by a device which the consumer controls (such as an MP3 player;
see digital rights management). The digital sale of models for 3D printing also fits here, as do the media leasing
types of services, such as streaming.
4.6Second-hand retail[
Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates goods to the shop to be
sold. In give-away shops goods can be taken for free.
Another form is the pawnshop, in which goods are sold that were used as collateral for loans. There are also
"consignment" shops, which are where a person can place an item in a store and if it sells, the person gives the
shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop
gives the item exposure to more potential buyers.E-tailers like OLX,Quikr etc. also working on second hand goods
sales.
4.7Challenges faced by large scale and small scale
retaillers
To achieve and maintain a foothold in an existing market, a prospective retail establishment must overcome the
following hurdles:
Regulatory barriers including
Restrictions on real estate purchases, especially as imposed by local governments and against "bigbox" chain retailers;
Restrictions on foreign investment in retailers, in terms of both absolute amount of financing
provided and percentage share of voting stock (e.g., common stock) purchased;
Unfavorable taxation structures, especially those designed to penalize or keep out "big box" retailers (see
"Regulatory" above);
Absence of developed supply chain and integrated IT management;
High competitiveness among existing market participants and resulting low profit margins, caused in part by
Constant advances in product design resulting in constant threat of product obsolescence and price
declines for existing inventory; and
Lack of properly educated and/or trained work force, often including educational infrastructure.
4.8Initiatives taken by Indian Government to
Investment in Retail Sector
The Government of India has been trying very hard to make the Indian retail sector highly attractive for
foreign investors such as Person of Indian Origin (PIOs) and Non Resident Indians (NRIs). Here are some of
the key initiatives taken by the Indian government in order to encourage foreign investors to invest in the
Indian retail sector
Indian Government has introduced an important economic reform under which 51% FDI will be
allowed in Multi Brand Retail Trading (MBRT) and 100% FDI will be permitted in Single Brand Retail
Trading.
The DIPP has considered relaxing some sourcing norms for foreign retailers to set up their retail
stores in India as some retail giants such as IKEA has been constantly asking for relaxation on mandatory
conditions.
The Union Ministry of Finance in India has also granted a relief of US$ 3 billion to software industry
by introducing single TDS on the place of multi-level structure of TDS. Now onwards, the TDS would be
deducted by first distributor, one who has bought packaged software from a developer.
Previously, foreign chains had to source at least 30% of their products at local level. Under the new
reform, government has retained the 30% sourcing requirement but it can be met over the period of 5
years initially and after that it has to be met on yearly basis.
Global chains will need to invest only 50% of the initial compulsory investment out of $100 million
in establishing the warehouses and cold storages in India. Apart from this, half of the overall investment
done by foreign retail players in India has to be in developing back end infrastructure.
The new policy also permitted global retailers to acquire from small and medium businesses which
have initial investment in plant & machinery of not more than $2 million up from the earlier limit of $1
million in order to make sure that small Indian organizations will benefit from the arrival of foreign firms.
Apart from this, all these organizations can continue to supply even if they cross the investment
cap of $2 million during later stages. This will help foreign retailers to maintain stable supply chain in India.
The Government of India has also permitted Indian states which have decided to encourage FDI in
retail sector by making decision on where they wish to permit foreign retailers to establish their shop.
According to earlier guidelines, foreign chains could only open retail stores in cities which have population
of over 1 million.
4.9 GOVERNMENTSHARE OF INVESTMENT IN RETAIL MARKET
Interpretation
In this chart we find that the government share in total market has increased considerablybut in
aspect of food and grocery we find that the percentage has increased drastically.The growth is
markable in clothing and accessories,the lowest growth is in beauty and wellness.
In organized retail market we find that there also clothing and
accessories show a markable growth followed by food and grocery and the lowest is in beauty
and wellness.
CHAPTER 5
CONCLUSION
5.1 CONCLUSION:In present times, RETALLING is important to each company. Each company tries to earn profit, but it is not
necessary to earn profit but to sway on. In present time, The companies in order to sell their products has to look
at consumers wants and choices . In our country there are many business men who are involved in retail
business and also there are many companies giving franchisees to businessmen for selling their products.The
different countries have different retail stores ,retail pricing and other staffs involved in retailing .There are
various departmental stores ,cooperative societ,petty shops,or big malls in different countriesetc involved in
retailing but still due to certain problems everyone has their drawbacks.Finally, I conclude that the government
of every country gives financial benefits and nonfinancial benefits to various retail business for their
development in future.
5.2 RECOMMENDATION:Retailing takes a great position in the success of business.So, I would recommend that government of each
county should look upon the retail business.They should employ government officials who would check that
the financial and non financial incentives that the government of each country is providing to give equal
oppurtunities to all is being true or not.it should be put into action and the people who are looking for their self
interests should be pennalised.
CHAPTER 6
BIBLIOGRAPHY
REFERENCES:sites
1. www.google.com
2.
www.businessawesome.com
3. www.ehow.com
Books:1 isc commerce volume 1
2. principles of retailing (OXFORD UNIV PRESS)
