Modern Trends in Retailing

Topics: Retailing, Shopping mall, Online shopping Pages: 14 (3361 words) Published: January 13, 2013
Modern Trends in Retailing
Self Service
* Products are displayed on open shelves.
* Customers have to select them put them into trolley, take it to cash counter, make payment and arrange for their transportation. * Generally used in large scale retailing especially supermarkets. Advantages

To Retailers
1. Lesser requirement of shop staff.
2. More sales in given time.
3. More sales due to impulse buying. More turnover.
4. Attraction to the customers.
To Customers
1. Shopping can be done in free environment.
2. Freedom of choice.
3. Quicker shopping.
4. Low price.
To Retailers
1. More capital required (for space, shelves and variety). 2. Shop lifting.
3. Security expenses increases.
To Customers
1. Impersonalized way of sales.
2. Impulse buying.
3. No delivery is provided.
Branding and Packing
* Branding means the selling of goods under the trade mark or brand name of manufacturer. * Branding is done to differentiate products from competition. * Brand Name = Name and Brand Mark = Symbol.

* Packing is the wrapper of product done to provide convenience to customers. * Branding is only possible if packing is done.
To Retailers
1. Products can be differentiated.
2. Market share can be created.
3. Adds value to the product.
4. Assists in handling of products.
5. Information about the product can be written.
6. Attracts customers.
7. Some packing can be reused.
8. Advertisement can be done.
9. Easy to handle. (Arrangement in self service retailing) To Customers
1. Brand assures uniform quality.
2. With packing awareness is created.
3. Customer is well informed about the product by advertisement. 4. Some wrappers can be reused.
5. Shopping has become easier.
To Retailers
1. Brands needs to be advertise and advertisement can be burden on resources. 2. Sometimes branding increases competition and competition puts pressure on firms profit. 3. Imitation brands reduce profit.

To Customers
1. Customers get confused as what brand to buy.
2. Cost of packing an advertisement is added to the price of product. 3. Customer may be misled by the advertisement of a certain brand. 4. Imitation brands.
After Sale Service
* All the services provided by the retailer, manufacturer, or the agent to support customers after the sale has been made. * After sale services include: Installation, training, repairing and warranty. * Warranty is provided by the produced as a guarantee of quality of a product. * Warranty is valid within a specific period of usage or specific period after purchase. * In warranty items with faulty performance will be repaired or replaced free of charge within warranty period. Advantages

To Retailers
1. Better image.
2. More revenue with more sales.
To Customers
1. Support.
2. Spare parts are available.
3. Warranty.
To Retailers
1. Capital requirement.
2. Management problems.
3. Parts repaired in warranty are a loss to the business. To Customers
1. Warranty is added to the cost from customers.
2. Warranty is available only for limiter period.
Automatic Vending Machines (AUMs)
* These machines can sell cold bottled drinks, hot drinks, cigarettes and sweets. * Often placed at cinemas, parks and supermarkets.
* Customers enter the money into the machine, presses a button and desired item comes out. Advantages
To Retailers
1. Requires minimum space so rental cost is low.
2. 24 hours sale.
3. No sale staff required.
To Customers
1. Adds convenience.
2. Available all the time.
3. Self service. Less time required.
To Retailers
1. Available only for the sale of...
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