Explain the different methods of retailing. Which method is popular in India?

0
147

Large Scale Retailers

In the modern era mass production has started. At present, large scale producers have started taking interest in large scale retail trade. Apart from this some vendors have also started doing retail business on a large scale. Under the large-scale retail business, departmental stores, majority shops, consumer cooperative stores, super markets, trade by post, home, purchase and sale and installment payment shops are included.

At present, retail trade is increasing on a large scale in almost all the countries of the world due to the following reasons:

(1) Centralization of population – As the population is centralized in big cities, large scale retail organizations have been established because retail business of large scale can be successful only when the number of buyers is more. Therefore, due to the centralization of population, departmental stores, chain shops, super markets etc. have been established in big cities.

(2) Large-scale production – Since the development of large-scale production institutions and companies, large-scale retail trade has been encouraged because the mass-producing organization sells its goods through chain shops. Can sell easily to the consumer and get the economy of distribution.

(3) Improvement in transport facilities: Due to the development of transport facilities, consumer centric stores are easily accessible and due to the development of these facilities, the producers are also able to access the consumers.

can establish contact with. This also encourages large-scale retail trade. (4) High standard of living – In the modern era, consumers have started demanding different types of goods to raise their standard of living and often prefer to buy goods at one place. For this reason, departmental stores and super markets are being established in big cities to meet the demands of the consumers.

(5) Increase in the varieties of goods- In the modern era there has been an increase in the varieties of goods. a small

The retailer is unable to stock all the varieties of the commodity. So because of this also big

Scale retailing business has flourished. (6) Best service at low price – By doing retail business on a large scale, the trader or organization gets many thrift, due to which they set the price of the commodity low. Therefore, on a large scale, sellers get more profits due to more sales and consumers also benefit because they get the goods they need at a lower price.

Main Forms of Large Scale Retailing

In the last century, many institutions have developed for large scale retail trade. Before their development, it was understood that retail business could not be done on a large scale, but the majority of departmental stores or chain shops, super markets established after 1900 have proved this notion wrong. In developed countries like America, England etc., after 1900, many large-scale retail trading organizations have been established. About 90% of the total retail business in these countries is in the hands of these large scale retail business entities. At present, we get to see the following forms of retail business on a large scale

(1) Departmental Store Departmental store means such a large store in which there are many departments and different items are sold in each department and the control and operation of these departments is usually at one place to satisfy the complete needs of the customers. Have to do In these departmental stores, items ranging from needles to motorcars are sold. These departmental stores were first established in France, America and European countries. White Way Ledla Ltd. in India. In Mumbai, Army & Navy Stores Ltd. In Chennai, Kamalalaya Stores Ltd. in Kolkata and in Kanpur. Yes. Thakur Das Dand Co. etc. are major departmental stores.

(2) Chained or Multiple Shops – Chained or multiple shops means such shops which are under the same ownership and many shops are established in different parts of a city or in different cities to sell different types of goods. are done.

Generally treated in homogeneous objects. Often such shops have the same decoration. The shops of Gandhi Ashram, Usha Company, Bata Shoe Company, Raymond, Gwalior Shooting etc. are clear examples of such shops in India.

(3) Trade by post – Trade by post means a business in which the customer sends his order by post and the seller sends the goods to the customer by post. This method is adopted when the buyers are scattered far and wide. The medium of transaction in such business remains the post office. The main objective of the development of this method is to eliminate unnecessary intermediaries between the producer and the consumer. Many organizations in India deal by post.

(4) Super market- Super market is a big retail shop in which different types of consumption items are sold. Food items and household items are the main among these items. Super markets are run without the help of vendors, that is, customers buy from them according to the principle of self-service. Customers get full opportunity to choose the item for themselves. After selecting the items he brings them to the outer door where a clerk sits who takes the price of the items from the customers. The main objective of the super market is to sell good goods to the customers at cheap prices. Super markets are prevalent in India but their number is very less.

(5) Consumer cooperative stores – Consumer cooperative stores are opened by consumer cooperative societies. These are voluntary organizations of consumers whose main objective is to provide goods to their members and other customers at affordable prices. They buy goods from manufacturers or wholesalers and sell them at reasonable prices. These have developed due to the exploitation of the consumers by the retailers. Co-operative stores are prevalent in India but their number is very less.

(6) Hire purchase and installment payment shops – These are shops which, while selling goods to customers, enter into an agreement with them, which is called hire purchase or installment payment contract. Under this contract, the goods are delivered to the buyer and the buyer pays the price in installments over a specified period of time. In this selling method cash sale price is charged from the customers. This higher value is charged as interest on installments. In this method both the buyer and seller are benefitted. The seller’s goods are sold and the buyer gets the facility to buy the goods on installments. In India, this method is prevalent in relation to some durable goods.

Progress of Large Scale Retailing in India

Large-scale retail trade has not developed much in India. As far as departmental stores are concerned – in answer it can be said that there are very few departmental stores in India which can be counted on fingers. Departmental stores have not become popular in India because most of the people here are poor and they live in villages and people living in cities have also become used to buying items from nearby retail shops, so these major in India Due to this reason, the departmental stores have not been developed. Super market and consumer cooperative stores are also not very prevalent in India because most of the super markets and consumer cooperative stores have been established in the cooperative sector with government inspiration, which have remained only as government shops. Trade by post is also not very prevalent in India because most of the people here are illiterate and unbelievers. As far as chained or majority shops are concerned, in answer it can be said that they are very popular in India. Many organizations like Bata Shoe Company, Usha Engineering Industries, Raymond, Gandhi Ashram, etc. are running the majority of shops successfully. Hire-purchase and installment payment systems have also developed a lot in India. In India, fans of Usha, sewing machines, televisions, refrigerators, etc. of many companies are sold on rent-purchase and installment payment method.

LEAVE A REPLY

Please enter your comment!
Please enter your name here