Retail Trainee Associate Class 9 PDF

Introduction to Retail Module Session 1: Overview of the Retail Industry Learning Objectives After this session, you will be able to: Outline the current scenario of the retailing sector in India. List the factors that leads to t...

Introduction to Retail Module Session 1: Overview of the Retail Industry Learning Objectives After this session, you will be able to: Outline the current scenario of the retailing sector in India. List the factors that leads to the growth of retailing sector in India. Compare traditional and modern retail sector in India. Discuss about supply chain management Illustrate different retail formats. 1.1 Overview of Retail Sector Retail refers to the sale of goods or services directly to consumers, typically in small quantities. It encompasses a wide range of businesses and establishments, including stores, shops, boutiques, online platforms, and marketplaces where consumers can purchase products or services for personal or household use. 1.1 Overview of Retail Sector Retailers acquire goods from manufacturers or wholesalers and sell them to the end-users, often marking up the prices to generate profits. The retail industry plays a crucial role in the economy, serving as a bridge between producers and consumers while providing employment opportunities and contributing to GDP growth. 1.1 Overview of Retail Sector The retail sector refers to the segment of the economy that involves the sale of goods or services directly to consumers. 1.1 Overview of Retail Sector It encompasses a vast array of businesses and establishments, including traditional brick-and- mortar stores, online retailers, supermarkets, department stores, specialty shops, convenience stores, and more. 1.1 Overview of Retail Sector The retail sector is an essential part of the economy, serving as a conduit between producers or wholesalers and end consumers. It plays a significant role in driving consumer spending, which is a crucial component of economic growth in many countries. 1.1 Overview of Retail Sector The retail sector also provides employment opportunities at various levels, from sales associates and cashiers to management positions. 1.1 Overview of Retail Sector The retail sector is influenced by various factors, including consumer preferences, economic conditions, technological advancements, and changes in demographics. 1.1 Overview of Retail Sector With the rise of e-commerce and digital technologies, the retail sector has undergone significant transformations in recent years, leading to changes in shopping habits, business models, and competitive dynamics. 1.1 Overview of Retail Sector Current Scenario of Retail Sector Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. 1.1 Overview of Retail Sector Current Scenario of Retail Sector It accounts for over 10% of the country’s gross domestic product (GDP) and around eight % of the employment. India is the world’s fifth-largest global destination in the retail space. 1.1 Overview of Retail Sector Current Scenario of Retail Sector India ranked 73 in the United Nations Conference on Trade and Development's Business-to- Consumer (B2C) E-commerce Index 2019. 1.1 Overview of Retail Sector Current Scenario of Retail Sector India is the world’s fifth-largest global destination in the retail space and ranked 63 in the World Bank’s Doing Business 2020. 1.1 Overview of Retail Sector 1.1 Overview of Retail Sector India’s retail sector was experiencing exponential growth with retail development taking place not just in major cities and metros, but also in small cities. Healthy economic growth, changing demographic profile, increasing disposable income, urbanisation, and changing consumer tastes and preferences have been some of the factors driving growth in the organised retail market in India. 1.1 Overview of Retail Sector Overall, India's retail sector presents immense opportunities for growth and development, driven by a conducive business environment and evolving consumer dynamics. 1.2 Growth of Retail Sector The retail sector stands as a vibrant and ever-evolving landscape, consistently shaped by dynamic market forces and shifting consumer behaviours. Over the years, this sector has experienced remarkable growth, propelled by an amalgamation of technological advancements, globalisation, and changing shopping patterns. 1.2 Growth of Retail Sector From the rise of e-commerce giants revolutionising online shopping experiences to the resurgence of experiential retail that transforms brick- and-mortar stores into immersive destinations, the retail industry continues to adapt and innovate in response to emerging trends. 1.2 Growth of Retail Sector This growth is not only evident in the expansion of traditional retail formats but also in the diversification of product offerings, with a growing emphasis on sustainability, personalisation, and wellness. 1.2 Growth of Retail Sector India ranks among the best countries to invest in the retail space. Factors that make India so attractive include having the second largest population in the world, a rising middle- income class, increasing urbanisation, connected rural consumers, and increased discretionary spending amongst consumers. 1.2 Growth of Retail Sector The retail market in India has undergone a major transformation and has witnessed tremendous growth in the last 10 years. Indian retail market is expected to reach 82.5 lakh crore INR by 2027 and 50 lakh crore INR by 2032 growing at 25% CAGR India currently has the 4th Largest retail market in the world. 1.2 Growth of Retail Sector The retail sector has been experiencing significant growth over the years, driven by various factors such as technological advancements, changing consumer behaviour, and economic development. 1.2 Growth of Retail Sector Some key highlights of Indian Retail Industry are: India ranked No. 2 in Global Retail Development Index (GRDI) in 2021. The retail sector in India accounts for over 10% of the country’s GDP and around 8% of the workforce (3.5+ Crore). It is expected to create 2.5 Crore new jobs by 2030. 1.2 Growth of Retail Sector Some key highlights of Indian Retail Industry are: Food & Grocery, Apparel & footwear, and consumer electronics are the largest retail segments, constituting 63%, 9% and 7% respectively of the retail market. The E-Commerce market is projected to grow at 18% annually through 2025 and is expected to touch 26.25 lakh crore INR, in GMV by 2030. 1.2 Growth of Retail Sector Some key highlights of Indian Retail Industry are: Luxury retail market in India is valued at 2.25 lakh crore INR and is steadily growing owing to rising disposable income and increasing investment by foreign brands. India’s digital economy is expected to reach 75 lakh crore INR by 2030. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: E-commerce Boom: Online shopping has become increasingly popular, with more consumers opting for the convenience of shopping from their 1. homes or mobile devices. E-commerce giants like Amazon, Alibaba, and others have played a significant role in shaping this trend. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: Omnichannel Retailing: Retailers are adopting omnichannel strategies to provide a seamless shopping experience across multiple channels, including brick- 2. and-mortar stores, websites, mobile apps, and social media platforms. This approach allows retailers to reach customers wherever they are and cater to their preferences. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: Mobile Commerce: The proliferation of smartphones has fuelled the growth of mobile commerce (m-commerce), 3. enabling consumers to make purchases on-the-go. Retailers are investing in mobile-friendly websites and apps to capitalise on this trend. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: Personalisation: Retailers are leveraging data analytics and artificial intelligence to personalise the shopping experience for customers. By analysing 4. consumer preferences and behaviour, retailers can offer tailored product recommendations, promotions, and discounts, enhancing customer satisfaction and loyalty. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: Fast Fashion: The rise of fast-fashion retailers has disrupted the traditional retail landscape, offering trendy and affordable clothing at a rapid pace. Fast- 5. fashion brands quickly adapt to changing fashion trends and capitalise on social media to engage with their target audience. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: Health and Wellness: There's a growing demand for health and wellness products, including organic food, 6. supplements, and fitness equipment. Retailers are expanding their offerings in this category to cater to health-conscious consumers. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: Sustainability: Consumers are becoming more environmentally conscious, driving demand for sustainable and eco-friendly products. 7. Retailers are responding by incorporating sustainable practices into their operations, such as using recycled materials, reducing waste, and supporting ethical sourcing. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: Experiential Retail: Retailers are enhancing the in-store experience by incorporating elements of entertainment, 8. education, and social interaction. This includes interactive displays, pop-up shops, workshops, and events designed to engage and delight customers. 1.2 Growth of Retail Sector Here are some key trends contributing to the growth of the retail sector: Globalisation: The globalisation of retail has opened up new markets and opportunities for expansion. Retailers are 9. increasingly venturing into international markets to tap into the growing consumer base and diversify their revenue streams. 1.2 Growth of Retail Sector Overall, the retail sector is undergoing rapid transformation, driven by technological innovation and evolving consumer preferences. Retailers that embrace change, adapt to new trends, and prioritise customer experience are well-positioned to thrive in this dynamic environment. 1.3 Traditional vs. Modern Retail The distinction between traditional and modern retail reflects the evolving nature of consumer commerce and the strategies employed by retailers to meet shifting market demands. 1.3 Traditional vs. Modern Retail Traditional retail encompasses established formats such as brick-and- mortar stores, independent shops, and market stalls, which have long been the cornerstone of consumer shopping experiences. These formats typically rely on physical storefronts, face-to-face interactions, and conventional advertising methods to attract customers and drive sales. 1.3 Traditional vs. Modern Retail In contrast, modern retail refers to the innovative approaches and technological advancements that have reshaped the shopping landscape in recent years. This includes e-commerce platforms, mobile shopping apps, omnichannel strategies, and experiential retail concepts that seamlessly blend the online and offline shopping experience. 1.3 Traditional vs. Modern Retail Modern retailers leverage data analytics, artificial intelligence, and digital marketing techniques to personalise offerings, streamline operations, and enhance customer engagement. 1.3 Traditional vs. Modern Retail Difference Between Traditional Retail and Modern Retail Traditional retail and modern retail differ in various aspects, from their approaches to customer engagement and technology integration. 1.3 Traditional vs. Modern Retail Difference Between Traditional Retail and Modern Retail Let’s understand this by differentiating it on some common factors. Aspect Traditional Retail Modern Retail Sales Primarily brick-and- Online platforms, e- Channels mortar stores, market commerce websites, stalls, and kiosks mobile apps Customer Local or regional National or Reach international 1.3 Traditional vs. Modern Retail Difference Between Traditional Retail and Modern Retail Aspect Traditional Retail Modern Retail Operating Typically limited by store 24/7 availability Hours hours (online) Customer Relies on in-person Emphasises Experience interactions, physical convenience, displays personalisation, and digital tools 1.3 Traditional vs. Modern Retail Difference Between Traditional Retail and Modern Retail Aspect Traditional Retail Modern Retail Inventory Manual or basic systems Advanced inventory Management for inventory tracking management systems with real-time updates Marketing Traditional advertising Digital marketing methods (print, radio, TV) (social media, email, SEO, PPC) 1.3 Traditional vs. Modern Retail Difference Between Traditional Retail and Modern Retail Aspect Traditional Retail Modern Retail Payment Cash, credit/debit cards, Online payments, Methods checks mobile wallets, digital payment platforms Fulfilment In-store pickup, Same-day or next-day traditional shipping delivery, click-and- methods collect options 1.3 Traditional vs. Modern Retail Difference Between Traditional Retail and Modern Retail Aspect Traditional Retail Modern Retail Competition Local competitors, limited Global competitors, by geographical constant innovation boundaries and disruption 1.3 Traditional vs. Modern Retail Difference Between Traditional Retail and Modern Retail This table highlights some of the key differences between traditional and modern retail in terms of sales channels, customer reach, operating hours, customer experience, inventory management, marketing, payment methods, fulfilment, and competition. 1.4 Supply Chain Management A supply chain is a network of interconnected entities, organisations, people, activities, resources, and technologies involved in the creation and distribution of goods and services from the point of origin to the point of consumption. It encompasses all the processes and activities required to bring a product or service to market, including sourcing, procurement, production, logistics, and distribution. 1.4 Supply Chain Management Key components of a supply chain include: Suppliers: Companies or individuals who provide raw materials, components, or services necessary for the production of goods or services. 1.4 Supply Chain Management Key components of a supply chain include: Manufacturers: Entities responsible for transforming raw materials or components into finished products through manufacturing or assembly processes. 1.4 Supply Chain Management Key components of a supply chain include: Distributors: Organisations that handle the storage, transportation, and delivery of goods from manufacturers to retailers or end consumers. 1.4 Supply Chain Management Key components of a supply chain include: Retailers: Businesses that sell goods directly to consumers through physical stores, online platforms, or other distribution channels. 1.4 Supply Chain Management Key components of a supply chain include: Customers: Individuals or organisations that purchase and consume goods or services at the end of the supply chain. 1.4 Supply Chain Management Key components of a supply chain include: Logistics Providers: Companies that specialise in transportation, warehousing, and other logistics services to facilitate the movement of goods within the supply chain. 1.4 Supply Chain Management Key components of a supply chain include: Information Systems: Technologies and systems used to collect, analyse, and share data and information across the supply chain, enabling coordination and collaboration among stakeholders. 1.4 Supply Chain Management Overall, supply chains play a critical role in the global economy, enabling the efficient flow of goods and services from producers to consumers, and are essential for driving innovation, competitiveness, and economic growth. 1.4 Supply Chain Management Supply Chain Management Supply chain management (SCM) refers to the strategic coordination of all activities involved in the sourcing, procurement, production, and distribution of goods and services, from raw materials to the end consumer. 1.4 Supply Chain Management Supply Chain Management The goal of supply chain management is to optimise the efficiency and effectiveness of these processes while minimising costs and maximising customer satisfaction. 1.4 Supply Chain Management Supply Chain Management Effective supply chain management requires collaboration and coordination across multiple stakeholders, including suppliers, manufacturers, distributors, retailers, and customers. 1.4 Supply Chain Management Supply Chain Management Advances in technology, such as supply chain planning software, inventory management systems, and real-time tracking solutions, have enabled companies to improve visibility, traceability, and agility within their supply chains, helping them to respond quickly to changes in demand or supply disruptions. 1.4 Supply Chain Management Need of Supply Chain Management Supply chain management (SCM) is essential for businesses to effectively manage the flow of goods, information, and finances across the entire supply chain from the point of origin to the point of consumption. 1.4 Supply Chain Management Need of Supply Chain Management Here are some key reasons highlighting the need for supply chain management: 1. Improved Efficiency: SCM helps streamline processes, reduce redundancies, and eliminate inefficiencies within the supply chain, leading to cost savings and improved productivity. 1.4 Supply Chain Management Need of Supply Chain Management 2. Enhanced Customer Satisfaction: By ensuring the timely delivery of high-quality products and services, SCM helps meet customer demand and expectations, leading to increased satisfaction and loyalty. 3. Optimised Inventory Management: SCM enables better inventory visibility, demand forecasting, and planning, allowing businesses to maintain optimal inventory levels while minimising carrying costs and stockouts. 1.4 Supply Chain Management Need of Supply Chain Management 4. Reduced Costs: Effective supply chain management helps identify cost-saving opportunities, such as sourcing efficiencies, transportation optimisation, and inventory reduction, resulting in lower overall costs for the business. 5. Mitigated Risks: SCM allows businesses to identify and mitigate risks such as supply disruptions, quality issues, and compliance challenges, thereby enhancing resilience and continuity within the supply chain. 1.4 Supply Chain Management Need of Supply Chain Management 6. Enhanced Collaboration: SCM fosters collaboration and communication among supply chain partners, enabling better coordination, information sharing, and decision-making across the entire supply chain network. 1.4 Supply Chain Management Need of Supply Chain Management 7. Adaptability and Agility: In today's dynamic business environment, SCM helps businesses adapt to changing market conditions, customer preferences, and regulatory requirements, allowing them to quickly respond to disruptions and seize new opportunities. 1.4 Supply Chain Management Need of Supply Chain Management 8. Sustainable Practices: SCM facilitates the integration of sustainability principles into supply chain operations, such as reducing carbon emissions, minimising waste, and promoting ethical sourcing, aligning with the growing demand for corporate social responsibility. 1.4 Supply Chain Management Need of Supply Chain Management 9. Globalisation: With businesses operating in increasingly globalised markets, SCM helps manage the complexities of international trade, including cross-border logistics, customs compliance, and cultural differences. 1.4 Supply Chain Management Need of Supply Chain Management 10.Competitive Advantage: Effective supply chain management can serve as a source of competitive advantage by enabling businesses to differentiate themselves through superior service, faster time-to-market, and lower costs compared to competitors. 1.4 Supply Chain Management Need of Supply Chain Management Overall, supply chain management is essential for businesses to optimise their operations, meet customer demands, mitigate risks, and maintain competitiveness in today's interconnected and fast- paced business environment. 1.5 Exploring Various Retail Formats The retail landscape is as diverse as the needs and preferences of consumers themselves, offering a myriad of formats to cater to varying shopping habits, lifestyles, and demands. 1.5 Exploring Various Retail Formats From the sprawling aisles of department stores showcasing a multitude of product categories under one roof to the convenience of neighbourhood convenience stores stocking everyday essentials, retail formats span a broad spectrum of offerings. 1.5 Exploring Various Retail Formats Whether it's the discounted treasures found in outlet stores, the specialised expertise of niche specialty stores, or the seamless convenience of e-commerce platforms, each retail format serves a distinct purpose in meeting the ever- evolving needs of today's shoppers. 1.5 Exploring Various Retail Formats These formats not only reflect the dynamic interplay between consumer preferences and market trends but also embody the ingenuity and adaptability of the retail industry in providing solutions for an array of shopping experiences. 1.5 Exploring Various Retail Formats Retail formats refer to the various types of establishments through which goods and services are sold to consumers. 1.5 Exploring Various Retail Formats Here are some different retail formats: Department Stores: Large retail establishments offering a wide range of product categories, often organised into 1. departments within the same store. Examples include Shoppers Stop, Lifestyle, Central. 1.5 Exploring Various Retail Formats Here are some different retail formats: Discount Stores: Retailers that offer products at discounted prices, often by selling merchandise at lower margins 2. and focusing on high sales volume. Examples include Big Bazaar, D-Mart, Reliance Smart 1.5 Exploring Various Retail Formats Here are some different retail formats: Supermarkets: Large self-service grocery stores offering a wide variety of food and household products organised 3. into departments such as produce, dairy, meat, and bakery. Examples include Reliance Fresh, Big Basket, Spencer's. 1.5 Exploring Various Retail Formats Here are some different retail formats: Convenience Stores: Small retail outlets that offer a limited selection of everyday items such as snacks, 4. beverages, and toiletries, typically with extended operating hours. Examples include 24Seven, Needs, More Megastore. 1.5 Exploring Various Retail Formats Here are some different retail formats: Specialty Stores: Retailers that focus on selling a specific category of products, catering to niche markets or 5. enthusiast communities. Examples include Croma (electronics), Fabindia (ethnic wear), Crossword (books). 1.5 Exploring Various Retail Formats Here are some different retail formats: E-commerce Retailers: Online platforms that enable consumers to purchase goods and services over the 6. internet, often with the convenience of home delivery. Examples include Amazon India, Flipkart, Myntra. 1.5 Exploring Various Retail Formats Here are some different retail formats: Outlet Stores: Retailers that sell discounted merchandise, often overstock or last-season items, from 7. popular brands and manufacturers. Examples include Brand Factory, Nike Factory Store, Levi's Outlet Store. 1.5 Exploring Various Retail Formats Here are some different retail formats: Hypermarkets: Large retail establishments that combine elements of supermarkets and department stores, offering a wide range of 8. products, including groceries, clothing, electronics, and household goods. Examples include Big Bazaar Hypermarket, Spencer's Hyper, Reliance Market. 1.5 Exploring Various Retail Formats Here are some different retail formats: Pop-up Shops: Temporary retail spaces that appear for a short period, typically to promote a specific product, launch a new collection, or capitalise 9. on seasonal demand. Examples include Flea markets, temporary stalls in malls or markets during festivals or special events. 1.5 Exploring Various Retail Formats Here are some different retail formats: Warehouse Clubs: Membership-based retail stores that offer bulk quantities of goods at discounted prices to 10. members. Examples include Metro Cash & Carry, Best Price (Walmart-owned). 1.5 Exploring Various Retail Formats These retail formats cater to different consumer needs, preferences, and shopping occasions, and each has its unique characteristics, advantages, and target markets.