Podcast
Questions and Answers
How does the increasing technological knowledge of consumers impact the retail sector?
How does the increasing technological knowledge of consumers impact the retail sector?
- It decreases the demand for personalized shopping experiences.
- It allows consumers to quickly compare prices and make informed decisions, influencing their shopping experience. (correct)
- It makes consumers more reliant on traditional retail outlets.
- It reduces the importance of online shopping platforms.
By what year is the retail sector in India expected to reach a value of US$ 1.9 trillion?
By what year is the retail sector in India expected to reach a value of US$ 1.9 trillion?
- 2030 (correct)
- 2035
- 2025
- 2026
Which country currently has the highest number of e-retail shoppers?
Which country currently has the highest number of e-retail shoppers?
- The UK
- The US
- China (correct)
- India
What percentage of India's Gross Domestic Product (GDP) is accounted for by the retail sector?
What percentage of India's Gross Domestic Product (GDP) is accounted for by the retail sector?
Approximately what percentage of employment in India does the retail sector account for?
Approximately what percentage of employment in India does the retail sector account for?
Based on provided data, which country's retail market was predicted to surpass the US retail market?
Based on provided data, which country's retail market was predicted to surpass the US retail market?
What factors are excluded from the total retail sales figures for China and the US?
What factors are excluded from the total retail sales figures for China and the US?
India is projected to be the fastest-growing retail market and is expected to cross what value by 2026?
India is projected to be the fastest-growing retail market and is expected to cross what value by 2026?
Nestle India's expansion strategy, as described, primarily focuses on which type of market?
Nestle India's expansion strategy, as described, primarily focuses on which type of market?
What was the approximate percentage increase in Nestle India's overall distribution network from 2016 to 2022?
What was the approximate percentage increase in Nestle India's overall distribution network from 2016 to 2022?
How does Nestle India's strategy of increasing its distribution network contribute to its competitive advantage?
How does Nestle India's strategy of increasing its distribution network contribute to its competitive advantage?
What types of retail formats does Seven & i Holdings operate?
What types of retail formats does Seven & i Holdings operate?
Approximately, what was the percentage growth of Seven & i Holdings' stores in FY2022?
Approximately, what was the percentage growth of Seven & i Holdings' stores in FY2022?
What geographic regions are the primary focus for Seven & i Holdings' retail operations?
What geographic regions are the primary focus for Seven & i Holdings' retail operations?
How does the global presence of Seven & i Holdings impact its business strategy?
How does the global presence of Seven & i Holdings impact its business strategy?
Considering the retail footprint strategies of both Nestle India and Seven & i Holdings, what is a key difference in their approach to market expansion?
Considering the retail footprint strategies of both Nestle India and Seven & i Holdings, what is a key difference in their approach to market expansion?
What primary skill enhancement is required for salespeople or consultants in the described selling approach?
What primary skill enhancement is required for salespeople or consultants in the described selling approach?
Which aspect of automated vending kiosks is most appealing to customers?
Which aspect of automated vending kiosks is most appealing to customers?
What is a critical factor that determines the success of the e-tailing business model?
What is a critical factor that determines the success of the e-tailing business model?
What is the 'click and mortar' strategy in the context of retail?
What is the 'click and mortar' strategy in the context of retail?
Which Indian government body is responsible for creating policies related to Foreign Direct Investment (FDI)?
Which Indian government body is responsible for creating policies related to Foreign Direct Investment (FDI)?
According to the Indian government, what constitutes Foreign Direct Investment (FDI)?
According to the Indian government, what constitutes Foreign Direct Investment (FDI)?
What are the two primary routes through which Foreign Direct Investment (FDI) can enter India?
What are the two primary routes through which Foreign Direct Investment (FDI) can enter India?
When is prior approval from the Indian Government required for Foreign Direct Investment (FDI)?
When is prior approval from the Indian Government required for Foreign Direct Investment (FDI)?
Which of the following scenarios best exemplifies a Business-to-Business (B2B) e-commerce model?
Which of the following scenarios best exemplifies a Business-to-Business (B2B) e-commerce model?
A small bakery decides to start selling its products online. Which set of services would they most likely need to effectively operate their online store?
A small bakery decides to start selling its products online. Which set of services would they most likely need to effectively operate their online store?
In a Consumer-to-Consumer (C2C) e-commerce model, what is the primary characteristic of the transaction?
In a Consumer-to-Consumer (C2C) e-commerce model, what is the primary characteristic of the transaction?
Which scenario exemplifies a Consumer-to-Business (C2B) e-commerce interaction?
Which scenario exemplifies a Consumer-to-Business (C2B) e-commerce interaction?
A company provides cloud computing services to a government agency. Which e-commerce category does this BEST represent?
A company provides cloud computing services to a government agency. Which e-commerce category does this BEST represent?
A government agency launches an online portal that allows citizens to pay their taxes online. Which e-commerce category does this BEST represent?
A government agency launches an online portal that allows citizens to pay their taxes online. Which e-commerce category does this BEST represent?
An individual uses an online platform to submit their feedback on a proposed environmental regulation to a government agency. Which e-commerce category does this BEST represent?
An individual uses an online platform to submit their feedback on a proposed environmental regulation to a government agency. Which e-commerce category does this BEST represent?
A government entity outsources its IT infrastructure management to a private company. Which e-commerce category does that represent?
A government entity outsources its IT infrastructure management to a private company. Which e-commerce category does that represent?
A retailer is considering expanding into a new country. Which piece of information from the 'Quick Snapshot' would be MOST useful in initially assessing the potential market size?
A retailer is considering expanding into a new country. Which piece of information from the 'Quick Snapshot' would be MOST useful in initially assessing the potential market size?
A customer values the ability to physically inspect a product before purchasing it. Which multi-channel retailing type would BEST satisfy this customer's need?
A customer values the ability to physically inspect a product before purchasing it. Which multi-channel retailing type would BEST satisfy this customer's need?
A small business wants to start selling its products with minimal upfront investment in physical infrastructure. Which multi-channel retailing type would be MOST suitable for them?
A small business wants to start selling its products with minimal upfront investment in physical infrastructure. Which multi-channel retailing type would be MOST suitable for them?
A company aims to provide a personalized shopping experience where trained representatives can demonstrate product features directly to potential customers. Which multi-channel retailing type aligns BEST with this goal?
A company aims to provide a personalized shopping experience where trained representatives can demonstrate product features directly to potential customers. Which multi-channel retailing type aligns BEST with this goal?
A retailer wants to clear out excess inventory quickly by offering a discount on a particular product line. Which multi-channel retailing method would allow them to reach the broadest audience in a short amount of time?
A retailer wants to clear out excess inventory quickly by offering a discount on a particular product line. Which multi-channel retailing method would allow them to reach the broadest audience in a short amount of time?
Consider a scenario where a consumer needs a product immediately, such as a beverage at a train station. Which retail channel BEST addresses this immediate need?
Consider a scenario where a consumer needs a product immediately, such as a beverage at a train station. Which retail channel BEST addresses this immediate need?
A company is launching a new product and wants to provide customers with detailed product information and high-quality images, but without the costs associated with a physical store. Which multi-channel retailing method is MOST suitable?
A company is launching a new product and wants to provide customers with detailed product information and high-quality images, but without the costs associated with a physical store. Which multi-channel retailing method is MOST suitable?
A retailer primarily uses a store channel but wants to expand its reach to customers who live in remote areas. Which additional channel would BEST complement their existing strategy?
A retailer primarily uses a store channel but wants to expand its reach to customers who live in remote areas. Which additional channel would BEST complement their existing strategy?
What is a key factor contributing to the prevalence of vending machine culture in Japan?
What is a key factor contributing to the prevalence of vending machine culture in Japan?
Which of the following best describes Inditex's (Zara's parent company) strategy regarding online and offline operations?
Which of the following best describes Inditex's (Zara's parent company) strategy regarding online and offline operations?
How did Zara's digital sales change in 2020?
How did Zara's digital sales change in 2020?
What percentage of IKEA's total sales were accounted for by online channels in 2021?
What percentage of IKEA's total sales were accounted for by online channels in 2021?
Which of the following investments is Inditex making to bolster Zara's business model?
Which of the following investments is Inditex making to bolster Zara's business model?
Besides snacks and drinks, what other types of items are commonly sold in Japanese vending machines?
Besides snacks and drinks, what other types of items are commonly sold in Japanese vending machines?
Approximately how many visitors did IKEA's online channels have in 2021?
Approximately how many visitors did IKEA's online channels have in 2021?
What was the primary reason behind Inditex's decision to allocate 1.7 billion euros to its store network?
What was the primary reason behind Inditex's decision to allocate 1.7 billion euros to its store network?
Flashcards
Nestle's Direct Distribution (2022)
Nestle's Direct Distribution (2022)
Nestle India expanded to 1.5 million outlets.
Nestle's Total Distribution Network (2022)
Nestle's Total Distribution Network (2022)
Nestle's total distribution network reached 5.1 million outlets by including direct and indirect methods.
Nestle's Distribution Growth (2016-2022)
Nestle's Distribution Growth (2016-2022)
Nestle increased its network from four million outlets.
Seven & i Holdings Businesses
Seven & i Holdings Businesses
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Seven & i Holdings Global Presence
Seven & i Holdings Global Presence
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Seven & i Holdings Store Growth (FY2022)
Seven & i Holdings Store Growth (FY2022)
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Seven & i Holdings Total Stores (FY2022)
Seven & i Holdings Total Stores (FY2022)
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Rurban Growth Strategy
Rurban Growth Strategy
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Knowledgeable Consumer
Knowledgeable Consumer
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India's Retail Market Growth
India's Retail Market Growth
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Indian Retail Market Size in 2030
Indian Retail Market Size in 2030
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India's E-Retail Ranking
India's E-Retail Ranking
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Retail's GDP Contribution (India)
Retail's GDP Contribution (India)
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Retail Employment (India)
Retail Employment (India)
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Dominant Retail Market (Historically)
Dominant Retail Market (Historically)
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Future Retail Market Leader
Future Retail Market Leader
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Non-Store Based Retailing
Non-Store Based Retailing
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Automated Vending Kiosks
Automated Vending Kiosks
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E-tailing
E-tailing
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Click and Mortar Model
Click and Mortar Model
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Foreign Direct Investment (FDI)
Foreign Direct Investment (FDI)
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DPIIT
DPIIT
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Objective of FDI Policy
Objective of FDI Policy
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Definition of FDI (India)
Definition of FDI (India)
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Online Stores
Online Stores
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Payment Gateway
Payment Gateway
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Digital Wallet
Digital Wallet
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Shipping and Logistics
Shipping and Logistics
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Business-to-Consumer (B2C)
Business-to-Consumer (B2C)
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Business-to-Business (B2B)
Business-to-Business (B2B)
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Consumer-to-Consumer (C2C)
Consumer-to-Consumer (C2C)
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Consumer-to-Business (C2B)
Consumer-to-Business (C2B)
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Unattended Vending Machines
Unattended Vending Machines
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Japan's Automation in Commerce
Japan's Automation in Commerce
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Multichannel Distribution
Multichannel Distribution
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IKEA's Online Sales (2021)
IKEA's Online Sales (2021)
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IKEA's Online Sales Percentage (2021)
IKEA's Online Sales Percentage (2021)
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Zara's Digital Business
Zara's Digital Business
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Zara's Digital Sales Growth (2020)
Zara's Digital Sales Growth (2020)
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Inditex's Investment
Inditex's Investment
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Store Channel
Store Channel
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Internet Channel
Internet Channel
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Catalogue Channel
Catalogue Channel
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Direct Selling
Direct Selling
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Television Home Shopping
Television Home Shopping
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Automated Vending Machines
Automated Vending Machines
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Multi-Channel Retailing
Multi-Channel Retailing
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Tangibility
Tangibility
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Study Notes
Retail Management - Unit 1
- The unit covers definition and functions of retailing, the retail sector in India, market size, drivers and challenges of retail chain in India, organized versus unorganized retail, modern retail formats, and e-commerce versus quick commerce in India
Retail Market – Introduction
- Retailing includes all activities related to the sale of goods and services to the ultimate (final) consumers for personal and non-business use
- The word "retail" is derived from an old French word "retailier" which translates to cutting off or to break bulk
- A trader selling goods in small quantities can be called a retailer.
Key Elements of Retail
Key elements include:
- Design, Strategy and Planning
- Merchandising
- Operations
- Supply Chain and Logistics
- Marketing Branding and Customer Experience Management
Significance of Retail as an Industry
- Reasons for growth in prominence of the retailer include proximity to the end consumer. The retailer is the key link between the manufacturer and the consumer, which leads to substantial data access and insight to work closely to improvise a product
- Proliferation of technology and growth of the Internet enables the sharing of information between retail stores, warehouses, manufacturers and consumers.
- E-commerce and e-retail has fueled the rise of newer business models, multi-channel and omni-channel retailing
- Introduction of the private label, this means retailers are no longer dependent on the manufacturers to sell and have emerged as the new leaders in the marketing channel, creating private labels to serve a niche market and earn high margins.
- Changing business models include: e-retailing and ecommerce, online shopping, auction sites, click and collect, cloud kitchens, and network of delivery-only chains that are facilitated by technology
- Increasing significance of sustainability. Retailers are moving to alternate sources of power, relooking at the packaging and moving towards alternate packaging and are choosing circular business models to eliminate waste to drive positive impact across the value chain and improve competitiveness
- Growth of the sharing economy includes sharing economy or collaborative consumption related to pre-owned and pre-used products which transaction is between two consumers enabled by a platform
- Growth of outsourcing entails many retailers are outsourcing their Information Technology needs and the last mile logistics
- The age of experience is impacted and increased with online retail and the convenience of shopping anytime, anywhere. A knowledgeable consumer who is adept at using the tools and technology, has played a key role in gaining unique shopping experience
Retail India – Market Size
- India is the fastest growing retail market and will cross $1.4 trillion by 2026
- The retail sector in India is expected to reach a whopping US$ 1.9 trillion in value by 2030
- India has the third-highest number of e-retail shoppers behind China and the US
- It accounts for over 10% of the country's gross domestic product (GDP) and around 8% of the employment
China's & US Retail Market Size
- For almost a century, the US retail market has been the largest but China was expected to claim this soon.
- Note that this data is from May 2020.
Retail India Market – Split
- The market is split between organized and unorganized retail. Organised retail comprises only 10%-15% of the market as opposed to unorganised retail at 85%-90%
- Unorganised retail includes local bania/kirana stores, paanwala, road side vendors, mandis, haats and melas
Reliance Retail
- Reliance Retail Venture Ltd (RRVL), the retail arm of Mukesh Ambani-led RIL, crossed the Rs 3 lakh crore revenue mark in FY24
- Reliance Retail had a record footfall of over 1 billion at its 18,836 stores, and its registered customer base increased to 300 million
- Reliance is India's largest retailer and is the only Indian retailer to feature among the top 100 global retailers
Retail Footprint
- Parle-G was launched in 1939 and was called Parle Gluco until 1985. It was then rebranded to Parle-G in the mid-1980s.
- There are 120 Parle-G factories in India
- 400 million Parle-G biscuits are baked every day
- 8.2 million are sold across retailers in India
- Coca-Cola's products are now available at more than 4 million stores, compared to about 2.7 million in pre-pandemic times.
- Kirana stores have been one of the biggest contributors of this growth
- In line with the "rurban" growth strategy, Nestle India has expanded its direct distribution to 1.5 million outlets in 2022 and is also deepening its rural coverage. The FMCG major has increased its overall distribution network to 5.1 million outlets, which includes direct and indirect distribution in 2022, from 4 million outlets in 2016
- Seven & i Holdings is a diversified retailing company that manages and operates various businesses through its subsidiaries and franchises.
- It operates convenience stores, supermarkets, departmental stores, specialty stores, e-commerce platforms, and restaurants in Japan and 18 countries and territories overseas
- In FY2022, the company added 6,035 stores to its portfolio bringing the total store count to 78,541 globally
Top 10 Global Retailers
- Walmart's 2022 global revenue stood at a whopping $572.7 billion
- Walmart though being mainly US focused, continues to expand internationally with 23% of its revenue now coming from outside the US giving an 4% higher margin than Amazon
- With $469.8 Billion in revenue, Amazon is the biggest online retailer globally
- The higher market capitalization of the business comes to its 5-year growth rate of 22% compared to just 1% for Walmart
- Due to its massively profitable cloud computing business, amazon made $10 billion in profit for the last financial year
- Costco proved that the big store model can definitely initiate high volume. This value big-box retail generated $141 billion in sales from just 833 sites
- Schwarz Group from Germany has the highest revenue among non-US contenders at 63%
- Schwarz's revenue totaled $158 billion
- Kroger managed an exceptional feat of generating $137.8 billion in revenues from just 2,800 US stores, with 0 international presence
- Walgreens Boot Alliance generated $134.9 billion in revenues, of which, 13% of their overall sales were coming from international businesses
- Home Depot is is the only home improvement company in the top 10 and did sales of $151.2 billion
- Aldi (Germany) has grown in popularity; 70% of sales now occur outside Germany
- Aldi's estimated sales is about $121 billion and spread across 11,235 stores
- Carrefour (France) is Europe's biggest supermarket chain by sales
Retailing – Functions
Functions including:
- Providing Assortments. Retailers curate a collection of products and sources and this curated collection enables customers to choose brands, designs, and sizes at just one accessible location.
- Breaking Bulk. It is cost effective to package and ship in bulk quantities as it reduces transportation cost, so retailers buy massive quantities and offer customers their desired amount.
- Holding Inventory to user-friendly sizes accessible for customers
- Providing Convenient Locations and Timings are fulfilled by retailers by choosing accessible and quick to reach locations
- Recording and Providing Feedback in the form of sales forecast, defective items, delays, complaints & inventory turnover which are relayed to the wholesaler
- Creating Time, Place and Ownership Utility by ensuring a product is available when the customer wants it and at a convenient location
Significance of Retail as an Industry
- Dominance of the Producer
- Dominance of the wholesaler
- The era of the Retailer
- The age of the Consumer
- The age of experience
Retail Formats
Retail formats are classified into Store-Based and Non-Store Based Retailing
Store-Based Retailing
- Stores allow customers to purchase products after their practicality. Tangibility plays a major role here and people often like to understand, feel and touch the offering before procurement
- Store-based retailing is classified based on : ‘form of Ownership" and "merchandise offered"
A. Form of Ownership
The various forms are:
- Independent Retailer is an independent retailer manages only one outlet who often have healthy relations with their customers and restricted bargaining power with the supplier
- Chain Retailers are people who own and manage two or more outlets sell the same brands, products, and standardize business processes
- These retailers have influential bargaining power with their supplier
- Franchise Stores are when a party grants permission to another one to use trademark to produce marketing items, commodity and service stipulations
B. Merchandise Offered
The various types of Store-Based Retailing include:
- Convenience Stores are found near residential areas as small local locations selling groceries open until late night, for customers who require a quick purchase within 500 to 1,500 sq. ft.
- Supermarkets are huge, low cost/margin stores and are there are self-service processes to meet the needs for groceries/ non-food related items of around 800 to 5,000 sq. ft.
- Department Stores are huge stores selling several product lines serving as department stores. It has a high service level, but the items are mostly non-edible and range from 5,000 to 40,000 sq. ft.
- Hypermarkets are a combination of supermarkets and departmental store, these stores provide different food and non-food items and are normally sold at discounted prices. The range of store size ranges from 40,000 to 1,00,000 sq. ft.
- Specialty Stores concentrate on one particular brand or category with a restrcited lines, but good amount of product depth.
- Factory Outlets sold with retailers by products sold with the stores normally sell the parent company, so usually products are normally at sold at lower price than the other outlets
Non-Store Based Retailing
There are numerous types of non-store retailing:
- Direct Selling retailers make personal contact. Commodities often sold are cosmetics, accessories, food, nutritional, educations format and require training
- Televison Shopping offers specifications, products and jewelery on TV that can be delivered
- Automated Vending Machines are accessible and offer convenience with items like chocolates, soft drinks, tea, and cigarettes
- E-tailing also know as "click and mortar" are when products are offered via internet, depending on delivery and product range.
Policy Frameworks in Indian Retail
- Foreign Direct Investment (FDI) is regulated by the Department for Promotion of Industry and Internal Trade (DPIIT) and the objective is to attract FDI to bolster domestic capital, technology, and skills
- FDI refers to the non-resident entities or persons outside India
- The FDI policy delineates two entry routes: automatic and through the Government of India through the Foreign Investment Promotion Board (FIPB)
- There is a history to FDI and it allows for some forms of self-certification
Draft Policy on E-Commerce
The National e-Commerce policy aims to foster growth in the e-commerce sector while safeguarding consumer interests and supporting with domestic small manufacturers. It addresses infrastructure, regulatory, and ecosystem issues to create a facilitative environment
- E-commerce websites/apps must ensure all product India's shipment go through the Customs, RBI and India Post systems
- They prevent distortion effects like price,inventory, or vendor contro,l , ensuring fair competition among all participants; this includes Maximum detail information for sales (max retail price)
- India's retail sector has evolved and transitioned from post-colonial to becoming the world's third-largest economy
- It entails and reflects from lifestyles and change for retail sales
E-Commerce - Introduction
- E-commerce entails for trade and services done over the internet
- More informally it pertains to using a computeised service online through credits and debit card etc
E-Commerce – Categories
E-Commerce can be split into 8 different categories
- Business to Customer (B2C) - example, Amazon.com
- Business to Business (B2B) - example, Alibaba.com
- Customer to Customer (C2C) - example, e bay
- Customer to Business (C2B) - example, food Blogger sharing food with restaurants
- Business to Goverment: points to the usage of intwrnew for for the license process and other government-related processes
- Governemtn to Bsuiness: exapmle, governenmt for the for the govermemt extends an to bussiness such with bussnes and service
- Goverment to customner: exapmle In 226 for the govermebnt carrie 8 Customer to Government : transacts between the customer/ indiviudals and Goverment
E-Commerce - Types
A. Pure click model B. Brick and Click Model, that manages the online store along the physical
E-Commerce - Examples
- Largest eCommerce Company: Amazon
- Chinese eCommerce Company : Jingding
- eCommerce Dragon: Alibaba Multinational eCommerce Enterprise, and it's business by multi billion dollar business
- It has been utilizes The internet markeplace for and 32 different countries
M-Commerce
- Also known as Mobile Commerce entales the usage of business through business smart gadgets tablets They enacble individuals for products and service by using the phones and devices
M-Commerce – Introduction
M commerce transaction involved banking
- Mobile banking 2 Infotrmation service 3 Tranfer 4 location based 5 electricy passs
M-Commerce -Examples
Walmart This has been a It provide an in shopping experience that provide easy to scan the mobile order It allow users the
-
Multi -channel retailing
-
Walmart It will store online easy
-
It provides by mobile for the more with is.
Types
Multi channel
This has the and the channel easy for them with the the products
Example - ikea
- In the 2021 ikea online sales has 2 billion dollars by for total sales
- Zara is douvbligg in the digital to
- 70% of there sales are for the for that it to
- The the e are for 2
- I billion has to set to improve sale
Multichannel Distribution System Examples
Multi-Channel Retailing - Trends and Benefits
- This helps for the better
- for the easy
- It is also for the the easy for the help in more
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Description
Analysis of the retail sector's growth, technological impacts, and key statistics in India. Includes market size projections, employment contributions, and comparisons with other global markets. Examines Nestle India's expansion and distribution strategies within this context.