Business Economy

Retail:-The selling of goods and services directly to consumers in small quantities.
Retailing:-The activities involved in selling goods directly to consumers.
ORGANISED RETAILERS:- Like department stores,speciality stores ,shopping complexes , malls , large scale multiple chains etc.
Organized retailing, in India, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the publicly traded supermarkets, corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local corner shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.[16]

Features of retailing:-
1.the interface between the retailer and customer is predominantly service oriented
2.retailers sell small amount of goods to consumers.
3.retailers try to provide customer service through convenience in terms of suitable location,payment facilites,range of merchandise,after sale services,etc.
4.retailers offer an assortment of merchandise to facilitate choice for selection of goods to consumers.
FUNCTIONS OF RETAILERS:-
1.Providing an assortment of products and services
2.breaking the bulk into smaller quantities
3.holding inventory stock
4.provide certain additional services
5.increase the value of products and services the various functions performed by the retailers will:
FROM THE CUSTOMER 'S PERSPECTIVE:-Retailer will help to ensure that the products required are available in the desired assortment ,at the right time and the right location
FROM THE BUSINESS PERSPECTIVE:-The retailer will provide the form ,time ,place,and ownership utilites to the final consumer as a marketing intermediary.

RETAIL FORMATS:-
1. Mom-and-pop Stores:-These are small family-owned businesses, which sell a small collection of goods to the customers. They are individually run and cater to small sections of the society. These stores are known for their high standards of customer services.

2.Department stores:-Department stores are general merchandisers. They offer to the customers mid- to high-quality products. Though they sell general goods, some department stores sell only a select line of products. Examples in India would include stores like "Westside" and "Lifestyle",pantaloon popular department stores

3.Category Killers:-Specialty stores are called category killers. Category killers are specialized in their fields and offer one category of products. Most popular examples of category killers include electronic stores like Best Buy and sports accessories stores like Sports Authority.

4.Supermarkets:-One of the other popular retail formats in India is the supermarkets. A supermarket is a grocery store that sells food and household goods. They are large, most often self-service and offer a huge variety of products. People head to supermarkets when they need to stock up on groceries and other items. They provide products for reasonable prices, and of mid to high quality.eg-m.kahmed(bengaluru)

5.Hypermarkets:-Similar to supermarkets, hypermarkets in India are a combination of supermarket and department store. These are large retailers that provide all kinds of groceries and general goods. Saravana Stores in Chennai, Big Bazaar and Reliance Fresh are hypermarkets that draw enormous crowds.

6.Kiosks:-Kiosks are box-like shops, which sell small and inexpensive items like cigarettes, toffees, newspapers and magazines, water packets and sometimes, tea and coffee. These are most commonly found on every street in a city, and cater primarily to local residents.

7Street vendors:-Street vendors, or hawkers who sell goods on the streets, are quite popular in India. Through shouting out their wares, they draw the attention of customers. Street vendors are found in almost every city in India, and the business capital of Mumbai has a number of shopping areas comprised solely of street vendors. These hawkers sell not just clothes and accessories, but also local food

8.MALLS:-Large ,enclosed shopping complex with stores,business,restaurants etc
9.ONLINE OR ELECTRONIC RETAILERS:-WHO SELLS GOODS VIA THE INTERNET.EG-AMAZON.COM,EBAY.COM ETC.

REASONS FOR GROWTH OF RETAIL SECTOR IN INDIA

1. Growth of middle class consumers:
In India the number of middle class consumer is growing rapidly. With rising consumer demand and greater disposable income has given opportunity of retail industry to grow and prosper
2. Increase in the number of working women:
Today the urban women are literate and qualified. They have to maintain a balance between home and work. The purchasing habit of the working women is different from the home maker
3. Value for money:
Oganised retail deals in high volume and are able to enjoy economies of large scale production and distribution. They eliminate intermediaries in distribution channe
4. Emerging rural market:
Today the rural market in India is facing stiff competition in retail sector also. The rural market in India is fast emerging as the rural consumers are becoming quality conscious.
5. Entry of corporate sector:
Large business tycoons such as Tata’s, Birla’s, and Reliance etc. have entered the retail sector. They are in a position to provide quality products and entertainment
6. Entry of foreign retailers:
Indian retail sector is catching the interest of foreign retailers. Due to liberalisation multinationals have entered out country through joint ventures and franchising. This further is responsible for boosting organised retailing
7. Technological impact:
Technology is one of the dynamic factors responsible for the growth of organised retailing. Introduction of computerization, electronic media and marketing information system have changed the face of retailing. Organized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services.
8. Rise in income:
Increase in the literacy level has resulted into growth of income among the population. Such growth has taken place not only in the cities but also in towns and remote areas.India is the second largest growing economy in the world.
9. Media explosion:
There has been an explosion in media due to satellite television and internet. Indian consumers are exposed to the lifestyle of countries. Their expectations for quality products have risen and they are demanding more choice and money value services and conveniences.

SCOPE OF RETAIL IN INDIA
The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market.

The growth of scope in the Indian retail market is mainly due to the change in the consumers behavior. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable.

The scope of the Indian retail market have been seen by many retail giants and thats the reason that many new players are entering the India retail industry. The major Indian retailers are:

Pantaloons Retail India Ltd
Shoppers Stop
Bata India Ltd
Music World Entertainment Ltd
Judging the scope for growth in the India retail industry many global retail giants are also entering the Indian retail market. They are :

Tesco
Metro AG
Wal- Mart
The scope for growth in the Indian retail market is seen mainly in the following cities:

Mumbai
Delhi
Pune
Ahmedabad
Bangalore
Hyderabad
Kolkata
Chennai
The scope of the Indian retail market is very vast. And for it to reach its full potential the government and the Indian retailers will have to make a determined effort.

KEYWORDS:-
HAATS:-PERIODIC MARKETS POPULAR IN RURAL INDIA
UNORGANISED RETAILING:-Refers to the traditional formats of low-cost retailing such as handcart,pavement vendors etc.
ORGANISED RETAILING:-Refers to the operations of licensed retailers such as corporate retail formats,hypermarket etc.

Challenges Faced by the Retail Industry: International Standards:
Even though India has well over 5 million retail outlets of differentsizes and styles, it still has a long way to go before it can truly have a retail industry at par withInternational standards. This is where Indian companies and International brands have a hugerole to play.
Inefficient supply chain management
: Indian retailing is still dominated by the unorganizedsector and there is still a lack of efficient supply chain management. India must concentrate onimproving the supply chain management, which in turn would bring down inventory cost, whichcan then be passed on to the consumer in the form of low pricing.
Lack of Retail space
: Most of the retail outlets in India have outlets that are less than 500square feet in area. This is very small by International Standards.
Cultural Diversity
: India's huge size and socio economic and cultural diversity means there is noestablished model or consumption pattern throughout the country. Manufacturers and retailerswill have to devise strategies for different sectors and segments which by itself would bechallenging.
Real estate issues
: The enormous growth of the retail industry has created a huge demand forreal estate. Property developers are creating retail real estate at an aggressive pace. With over1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011, India will needadditional retail space of 700,000,000 sq ft (65,000,000 m
2
) as compared to today.
Human resource problems
: Trained manpower shortage is a challenge facing the organizedretail sector in India. The Indian retailers have difficultly in finding trained person and also haveto pay more in order to retain them. This again brings down the Indian retailers profit levels.

ASIA PACIFIC JOURNAL OF MARKETING AND MANAGEMENT REVIEWVol.1 Issue 1, SEPTEMBER 2012, ISSN 2319-2836

Frauds in Retail:
It is one of the primary challenges the companies would have to face. Frauds,including vendor frauds, thefts, shoplifting and inaccuracy in supervision and administration arethe challenges that are difficult to handle. This is so even after the use of security techniques,such as CCTVs and POS systems. As the size of the sector would increase, this would increasethe number of thefts, frauds and discrepancies in the system.
Challenges with Infrastructure and Logistics:
The lack of proper infrastructure and distributionchannels in the country results in inefficient processes. This is a major hindrance for retailers asa non-efficient distribution channel is very difficult to handle and can result in huge losses.Infrastructure does not have a strong base in India. Urbanization and globalization arecompelling companies to develop infrastructure facilities. Transportation, including railwaysystems, has to be more efficient. Highways have to meet global standards. Airport capacitiesand power supply have to be enhanced. Warehouse facilities and timely distribution are otherareas of challenge. To fully utilize India's potential in retail sector, these major obstacles have tobe removed
Retail formats in India: Hyper marts/supermarkets
: large self-servicing outlets offering products from a variety of categories.
Mom-and-pop stores
: they are family owned business catering to small sections; they areindividually handled retail outlets and have a personal touch.
Departmental stores
: are general retail merchandisers offering quality products and services.
Convenience stores
: are located in residential areas with slightly higher prices goods due to theconvenience offered.
Shopping malls
: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof.
E-trailers
: are retailers providing online buying and selling of products and services.
Discount stores
: these are factory outlets that give discount on the MRP.
Vending
: it is a relatively new entry, in the retail sector. Here beverages, snacks and other smallitems can be bought via vending machine.
Category killers: small specialty stores that offer a variety of categories. They are known as categorykillers as they focus on specific categories, such as electronics and sporting goods. This is also knownas Multi Brand Outlets or MBO's.
Specialty stores: are retail chains dealing in specific categories and provide deep assortment.Mumbai's Crossword Book Store and RPG's Music World are a couple of example
The top 10 opportunities for retail sector
1. Rising emerging market demand and rise of global middle class
The size of the global middle class is expected to triple between now and 2030. Yet 29% of retail sector respondents to our global survey reported that their efforts to enter these markets had yet to produce any positive results.

2. New marketing channels and social media
Across the world, the number of people with regular access to the internet has increased dramatically. The retailers we surveyed were relatively likely to report that their company had at least begun to engage with social media — 28% said so, and a further 28% said social media was actively being investigated.

3. Competitive differentiation via CSR and green branding
The global financial crisis, instead of shifting focus away from corporate social responsibility (CSR), seems to have made it more of a priority. Almost three in four companies in the retail sector consider CSR “as a must.”

4. Multichannel approach
The growth of e-commerce and m-commerce, and recent rapid shifts in consumer behavior, have increased the benefits for retailers that can stay in touch with consumers through multiple channels.

5. Demographic change
Demographic changes — aging and migration, for example — are leading to rapid growth in specific market segments. Individuals in developed countries are increasingly seeking to deny the aging process.

6. Private label
The recent recession has increased sales of private label goods, and many consumers report they will remain loyal to these brands. Retailers have embraced this opportunity by introducing tiered brands for different income brackets and shopper needs.

7. Launching new products and services
Consumer behavior is changing, and constant innovation of products and services from retailers is required as a result. Yet 23% of the retail executives in our survey mentioned that their organization has not been innovative enough.

8. Global urbanization
As one panelist said, “The world’s population is undergoing a historic shift from rural to urban.” Higher consumer incomes and increased customer concentration will present considerable opportunities for the retail sector.

9. Competitive differentiation via local branding
There are significant benefits to local sourcing of products; they are often healthier, fresher and more environmentally friendly. As one retail executive commented, “[T]here is a growing trend toward ‘solidarity’ with local regions that can provide brands with lots of consumer kudos.”

10. Enhancing efficiency in the supply chain
The supply chain presents a significant opportunity for retailers to reduce inefficiencies and compete on cost, which is increasingly crucial as companies in low-growth consumer markets battle for market share.
FUTURE GROUP:-PANTALOON,BIG BAZAAR.CENTRAL ETC
TATA TRENT:-WESTSIDE,LANDMARK,STAR INDIA BAZAAR ETC
K.RAHEJA GROUP:-SHOPPER'S STOP,HYPERCITY,HOMESHOP ETC
BHARTI RETAIL:-EVERYDAY,EASY DAY,
RELIANCE RETAIL:-RELIANCE MART,RELIANCE VALUE,RELIANCE TRENDS,RELIANCE JEWELLERY,RELIANCE DIGITAL ETC

ECONOMICS:-It is the study of the production,consumption,and transfer of wealth in other words,economics refers to the study of the productions,consumption of goods and services and the analysis of the commercial activites of a society.
The basic terms which are related to economics include
1.economic activity
2.goods and services
3.value
4.producers of goods and services
5.consumers

ECONOMIC SYSTEM OR ECONOMY OR ECONOMIES:-An economy is the system according to which the money,industry,and trade of a country orregion are organised. the broad framework within which the economic activities are carried out,can be called the economic system
TYPES OF ECONOMIC SYSTEM:-
MARKET ECONOMY OR CAPITALISM:-Private ownership of means of production market economy is a economy in which the prices of goods and services are determined in a free price system
FEATURES:-
1.There is limited government intervention in the market economy
2.markets will bring buyers and sellers into contact
3.individuals have the right to make choice and decide on what to produce and consume
4.Private ownership
5.it aims to maximize profit

SOCIALIST ECONOMY:-In socialist economy government will take all the decisions related to the productions ,distribution and consumptions of goods.
FEATURES :-
1.government ownership
2.centralised economic decision making
3.it aims to achieve a better distribution of income and wealth
4.it aims to achieve social gain

MIXED ECONOMY:-Mixed economy is a combination of both market economy and socialist economy. It contains features of both market and socialist economies
The most common examples of mixed economies across the world are the developed nations such as the united States,Canada ,Australia,Japan,Germany,The United Kingdom,Italy etc.

INDIAN ECONOMY DURING THE PRE-BRITISH RULE PERIOD:-Prior to the advent of the British rule in india,the company was quite stable and similar to that in many parts of the world.
FEATURES OF INDIAN ECONOMY IN THE PRE-BRITISH PERIOD:-
1.Agriculture:-the agriculturists were divided into landowners and tenants.labour and capital were provided either by the producers themselves or borrowed at exortbitant rates of interest from the village money lender.the food produced in village was consumed within the village
2.INDUSTRY:-The raw materials produced from primary industries was the base for the handicrafts .india had a flourishing industry with products such as textiles,muslin,cotton,or silk .marble work ,stone carving,wood carving and jewellery having worldwide fame and demand.
3.ECONOMY:-Exchange of goods were done across the country and the towns dependence on villages were steps toward developments of markets and a large scale use of money and credit.finished goods were also exported which included spice,indigo and opium
IMPACT OF BRITISH RULE ON INDIAN ECONOMY:
The British Rule in India changed the political set-upon, transformed the structure of the traditional Indian society and developed fascination towards the Western Culture.
Both nature and structure of Indian economy underwent profound changes and it served the British economic interests at the cost of India. No doubt, development of transport and communication, those changes ruined Indian economy to a greater degree.
The British colonialism changed the nature and structure of the economy of India and gave a new shape to it. Traditional economic pattern was completely disrupted and its place was taken by a new one.
India was an agricultural country and more than eighty percent of its population lived in villages and adopted cultivation as the primary occupation. Indian economy was traditionally self-sufficient village economy.
Even trade and commerce of India was mainly depended upon agricultural products and its allied ones. Under this economic system, each village was functioning as an economic unit and was able to meet the basic needs of the villages. Usually people of different occupations or professions lived in the village and exchanged their product among themselves or with people of nearby villages.
The exchange of goods or products is called barter system. A cultivator had to exchange food crops to get other essentials of life and a weaver exchanged his products for food crops. In other words, sale of goods for money or cash was not a practice. Even labourers, carpenters, potters, blacksmiths were paid wages in kinds of their services. Sometimes the exchange process was multi angular involving more people.
For example, a cultivator needs the services of a carpenter to supply agricultural tools, the carpenter needs clothes, a weaver needs oil but the oilman requires the services of labourers and needs food grains. The net work of exchange completes when all of them court-operate to exchange their services among one another. The cultivator supplies food grain to labourers, the labourers serves the oilman, the oilman meets the need of the weaver, the weaver works for the carpenter and finally the carpenter meets the need of the cultivator.
This system would have continued under the British rule, if the British could have ruled India like all previous foreigners. Previously the political power changed from one person to other, but the economy continued as before. Neither the Afghans nor the Munhall intended to change the economic system of the country.
The pattern of economy continued as before and the peasants, the artisans and the traders contributed for continuance of the self sufficient village economy. They remained perpetual foreigners to India. They never accepted India as their home.
India was treated as a colony and Indian economy was subordinated to the economic interests of Britain. Through out the British Rule resources of India were exploited and surplus revenue was carried away from India in various forms. Ultimately Indian economy served the requirements of the British trade and industry

INDIAN ECONOMY POST INDEPENDANCE TILL 1990 when india got her independance in 1947,the indian economy had been in a bad shape.agriculture was the mainstay of the economy about 72 percent of the workforce.there were a few basic industries which continued to act as a catalysts for their parent companies in britain.some of the features affecting the economy were:
1.in 1950-51,the secondary sector contributed only 15 percent of the gdp.
2.in the absence of advanced scientific and technical know-how ,the productivity level was low
3.a major portion of the earning were spent on food consumption and hence the per capita income was very low
4.birth and death rates were very high due to deplorable health conditions

1. Goods are tangible but services are intangible.
2. The ownership rights of goods are transferable, but there is no ownership involved in services.
3. Once goods are produced, their quality remains uniform, but the qulality of service varies step to step (with the change in evironmental conditions)
4. Goods may be perishable or non-perishable, but they can be stored for a long time. Serivices cant be stored for a long time and they are only perishable.
5. Goods are produced using raw material, but services are not produced using raw material. They are automatically formed with the change in evironment.
6. Services have ultimate and strong impact on demand for goods. But services have not ultimate effect on demand for goods, and if there is an impact, it will be negligible
FEATURES
1.TANGIBILITY:-a goods is a tangible object.a service is a intangible
2.ownership:-the ownership of the product is transferable from the seller to the buyer.in service no ownership is involved
3.quality:-
4perishability what is service economy:-acc.to business,se can be said to be that portion of an economy devoted to service activities sich as financial services,education,sales,research and entertainment. constituents of the service sector:-
1.it
2.retailing
3.financial services
4.constructions
5.tourism

ECONOMIC ENVIRONMENT:- Economic Environment are the economic factors that have effects on the working of the business. It includes system, policies and nature of an economy, trade cycles, economic resources, level of income, distribution of income and wealth. It is very dynamic and complex in nature and does not remain the same

Types of Business Environment:
Types of Business Environment Types of Business Environment Internal Environment External Environment Man Machinery Management Material Money Macro Environment Micro Environment Economic Environment Non-Economic Environment

Economic Environment:
Economic Environment Those Economic factors which have their affect on the working of the business is known as economic environment. It includes system, policies and nature of an economy, trade cycles, economic resources, level of income, distribution of income and wealth etc. Economic environment is very dynamic and complex in nature. It does not remain the same. It keeps on changing from time to time with the changes in an economy like change in Govt. policies, political situations.

Economic Systems:
Economic Systems An Economic System of a nation or a country may be defined as a framework of rules, goals and incentives that controls economic relations among people in a society. Capitalism Socialism Democratic Socialism Totalitarian Socialism Mixed Economy

Economic Policies:
Economic Policies Government frames economic policies. Economic Policies affects the different business units in different ways Monetary Policy Fiscal Policy Foreign Trade Policy Foreign Investment Policy Industrial Policy

Global Economic Environment:
Global Economic Environment The role of international economic environment is increasing day by day. If any business enterprise is involved in foreign trade, then it is influenced by not only its own country economic environment but also the economic environment of the country from/to which it is importing or exporting goods. There are various rules and guidelines for these trades which are issued by many organizations like World Bank, WTO, United Nations etc.

Economic Legislations:
Economic Legislations Besides the above policies, Governments of different countries frame various legislations which regulates and control the business.

Non-economic Environment:
Non-economic Environment Social Environment Political Environment Legal Environment Provisions of the Constitution Judicial Decisions Technological Environment Demographic Environment Natural Environment International Environment

Analysis Process:
Analysis Process Monitoring or identifying environmental factors, Scanning and selecting the relevant factors and grouping them, Defining variables for analysis, Using different methods, tools, and techniques for analysis, Analyzing environmental factors and forecasting, Designing profiles, and Strategic positioning and writing a report
NATURE OF THE ECONOMY
1.AS ON 2006-07 ,MORE than 50 percent of the population was depend on the agriculture sector
2.there is inequality in the distribution of income
3.the techinques of production used in the agriculture sector are not advanced
4.another typical nature of the indian economy is that it is a mixed economy

ECONOMICS POLICES AND CONDITIONS
1.INDUSTRIAL POLICY:-AN INDUSTRIAL policy is a government -sponsored economic policy programme in which the public and private sector co-ordinate their efforts to develop new technologies and industries
2.TRADE POLICY:- Laws related to the exchange of goods or services involved in international trade including taxes, subsidies, and import/export regulations. a government's policy controlling foreign trade

. 3.FISCAL POLICY:-fiscal policy involve the use of the taxation ,public expenditure and management of public debt in order to acieve certain specific objectives. the fiscal policy in india aspires to work towards:-
1.a system effort to simplify the tax structire and laws
2.create a stable and predictable tax policy environment
3.understanding the links between fiscal policy and monetary policies

4. MONETARY POLICY:- Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability
The monetary policy is a regulatory instrument in the hands of the RBI by which it maintain control over the money supply and demand for the realisation of economic goals

RETAIL LEGAL ENVIRONMENT
The external macro environment generally comprises of various elements such as demographic,legal,social,etc.which can affect an org.and its marketing efforts.since these variables are external ,they can also be referred to as uncontrollable forces in the retailer's macro env.
PURPOSE OF LEGISLATION
1.To prevent unfair competition among business
2.to protect consumer from unfair retail practices
MAJOR LEGAL AND REGULATORY ISSUES
1.FDI
2.PROPERTY RELARED REGULATIONS:Under PRR ,there are two concerns:
a.real estate
b.taxation issues
SOCIO-CULTURAL ENVIRONMENT:-Refers to the culture,beliefs,traditions,values and lifestyles of the people in a given society
CULTURE:-Is refers to the norms of behavioue,waya of life,beliefs,religionsof a society that are passed down from generation to generation
NORMS:-are the attitudes and rules for behaviours of memers of an org. or society
VALUES:-VALUES ARE RELATED TO THE NORMS OF A CULTURE AND HELP TO IDENTIFY WHAT SHOULD BE JUDGED AS GOOD OR EVIL
LIFESTYLE:-A manner of living that reflect the person's values and attitudes
BELIEFS:-The mental acceptance

SOCIO -CULTURAL FACTORS:-
1.population changes:-the changes in papulation demographic will have different consequences for the org..with changes occuring in the population ,there could also occur changes in the demand for product and services
2.RISING EDUCATION LEVEL:-RISING educatiopn levels can also have an impact on the org..
3.NORMS AND VALUES:-
4.SOCIAL RESPONSIBILITY