Modern Trends in Retailing
- 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.
- Lesser requirement of shop staff.
- More sales in given time.
- More sales due to impulse buying. More turnover.
- Attraction to the customers.
- Shopping can be done in free environment.
- Freedom of choice.
- Quicker shopping.
- Low price.
- More capital required (for space, shelves and variety).
- Shop lifting.
- Security expenses increases.
- Impersonalized way of sales.
- Impulse buying.
- 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.
- Products can be differentiated.
- Market share can be created.
- Adds value to the product.
- Assists in handling of products.
- Information about the product can be written.
- Attracts customers.
- Some packing can be reused.
- Advertisement can be done.
- Easy to handle. (Arrangement in self service retailing)
- Brand assures uniform quality.
- With packing awareness is created.
- Customer is well informed about the product by advertisement.
- Some wrappers can be reused.
- Shopping has become easier.
- Brands needs to be advertise and advertisement can be burden on resources.
- Sometimes branding increases competition and competition puts pressure on firms profit.
- Imitation brands reduce profit.
- Customers get confused as what brand to buy.
- Cost of packing an advertisement is added to the price of product.
- Customer may be misled by the advertisement of a certain brand.
- 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.
- Better image.
- More revenue with more sales.
- Spare parts are available.
- Capital requirement.
- Management problems.
- Parts repaired in warranty are a loss to the business.
- Warranty is added to the cost from customers.
- 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.
- Requires minimum space so rental cost is low.
- 24 hours sale.
- No sale staff required.
- Adds convenience.
- Available all the time.
- Self service. Less time required.
- Available only for the sale of limited range of products.
- High capital cost.
- Requires maintenance.
- Total loss of sales when out of order or out of stock.
- Machine can easily be broken and money inside can be stolen.
- Only limited range of products are available.
- Inconvenience if machine out or order.
- One multistory building, with many different shops, each belonging to different owners.
- Wide range of goods and services are available.
- Common platform for achieving common goal.
- Minimum expense on advertising.
- Labour is available.
- Other services like, ATM and post office are there.
- One stop shopping.
- Located in main commercial area.
- High rents.
- High competition.
- Low profit margin.
- Traffic, inconvenience.
- Not located close to homes.
- Accurate billing.
- Quick billing.
- Better business control.
- Integrated software can be used.
- Labour cost is saved through automatic billing.
- Security against shop lifting.
- Accuracy in bills. Not charged extra.
- Quick billing.
- High capital cost.
- Skilled labor required.
- Computer software can malfunction.
- Impersonalized shopping.
- Software malfunction.
- More variety.
- Benefit of arm chair shopping.
- Capital cost increases.
- Expenses of developing and operating websites.
- Danger of hacking.
- Dependence on skilled labor.
- Market is limited. (only computer literate people)
- Customers can check product only after it is delivered to them.
- Impersonalized way of buying.
- A successful business (franchiser) lets another business (franchisee) use its name under an agreement.
- All franchises are decorated in the same style.
- Name is spread without much investment.
- Gets franchising fee from the franchisee.
- Has right to control certain activities of franchisee.
- Training by the franchisor.
- Less advertisement is required.
- Convenience, easily located.
- Guarantee of quality.
- Any bad business practice of franchisee can damage franchisor’s image.
- Responsibilities of training and educating franchisee.
- Heavy amount is to be paid to franchisors as franchising fee.
- Loss of some business controls.
- Agreement is valid upto certain period.
- No separate identification of franchisee.
- Franchising is not determinant of success.
- Limited choice of product.
- A plastic card which can be charged by the customer only with one retailer.
- More sales.
- Brand loyalty.
- Customer profile can be maintained.
- Additional revenue through sales of cards.
- Extra value added facilities.
- Discounts and gifts are Burdon on profits.
- A whole system is required before issuing store cards.
- Have to purchase from those outlets which offer gifts and discounts.
- Some times customers are not interested by gifts.
Electronic Point of Sale (EPOS)
Electronic Funds Transfer System (EFTS)
EPOS or EFTS refers to the computer-based systems used to perform financial transactions electronically.
- Accuracy in billing.
- Minimum cash handling in case of EFTS.
- Increased sales in case of EFTS.
- Security of cash.
- Purchasing power increases.
- Minimum cash handling.
- Get itemized bill.
- More capital.
- Skilled labor required.
- In case of EFTS, retailer has to pay bank charges.
- Irrational buying.