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PROJECT REPORT

(Submitted for the Degree of B.Com. Honours in Accounting & Finance under the University of

Calcutta

TITLE OF THE PROJECT

A comparative study of retailing

!u"mitted #y

 !ame of the Candidate" #an$eer Dutta

C.U %egistration %oll !o." '')')*

C.U %oll !o." '+)),-

 !ame of the College" City college Amherst st /ol,))))-.

College %oll !o." '+0'

!upervised #y

 !ame of the Su1ervisor" #r S2aru1 Saha

 !ame of the College" City college

$ont% & 'ear of !u"mission

Fe"ruary( )*+,

!-PER.I!OR CERTIFICATE

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3his is to certify that #r. $A/0EER 1-TTA a student of B.Com Honours in Accounting & Finance of

CIT' COLLE2E 3OL3ATA4*5 under the -/I.ER!IT' OF CALC-TTA has 2or/ed under my

su1ervision and guidance for his 2or/ 4ro5ect 6or/ and 1re1ared a 4ro5ect %e1ort 2ith the title A

CO$PARITI.E !T-1' O/ RETAILI/2. 6hich he is submitting is his genuine and original 2or/ to the

 best of my /no2ledge.

  Signature"

4lace" 7897A3A !ame" 4rof. S6A%U4 SAHA

Date" Designation" Faculty  !ame of the College" C:3; C899A<= A#H=%S3 S3%==3 789,))))-

!T-1E/T6! 1ECLARATIO/: hereby declare that the 4ro5ect 6or/ 2ith the title A CO$PARITI.E !T-1' O/ RETAILI/2 submitted

 by me for the 1artial fulfilment of the degree of B.Com Honours in Accounting & Finance under the

-/I.ER!IT' OF CALC-TTA is my original 2or/ and has not been submitted earlier to any other

University for the fulfilment of the re>uirement for any course of study.

: also declare that no cha1ter of this manuscri1t in 2hole or in 1art has been incor1orated in this re1ort from any

earlier 2or/ done by others or by me. Ho2ever e?tracts of any literature 2hich has been used for this re1ort has

 been duly ac/no2ledge 1roviding details of such literature in the references.

  Signature"

  !ame" #A!@==% DU33A  Address" *-A Debai 1u/ur road nandan/ananhindmotor

Hooghly,''**.

  %egistration !o." '')')*4lace" 7897A3A C.U %oll !o." '+)),-

Date" College %oll !o." '+0'

AC3/O7LE12E$E/T

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: 2ish to e?1ress my dee1 sense of gratitude to those 1eo1le 2ho have given their valuable

ideas suggestions guidance and their valuable time in the successful com1letion of my 1ro5ect.

: sincerely e?1ress my heartful than/s to -/I.ER!IT' OF CALC-TTA 2ho have allo2ed

us to do something different 2hich 2ould ta/e us to the 1ractical life and e?1lore it. : 2ould

also li/e to than/ CIT' COLLA2E 3OL3ATA48****52ho has given me the 1latform to

2or/ on this 1ro5ect.

: am than/ful to PROF !7AR-P !AHA for her valuable guidance 2hich hel1ed me to give a

satisfactory sha1e to the 1ro5ect.

Finally : 2ould than/ my family members and friends for their su11ort and encouragement.

.

CO/TE/T!

CHAPTER!

  PA2E /O

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CHAPTER I9 I/TRO1-CTIO/ ,48

.. Bac/ground +

.'. ustification of the Study +

.*. Brief %evie2 of 9iterature +

.. 8b5ective of the Study +.0. %esearch #ethodology +

.+. 9imitation of the Study +

.,. Cha1ter 4lanning ,

CHAPTER II9 CO/CEPT-AL FRA$E7OR3 )

'.. Definition of retailing '.'. 3y1es of retailing

'.*. Difference bet2een large and small scale retail -

'.. :m1act of large scale retailers on consumers -

'.0 :m1act of small scale retailers on consumers )

CHAPTER III9 !T-1' OF LITERAT-RE  )0

*. 9iterature research on retail )

a. ty1e of 1roducts )

 

 b.ty1es of mar/eting strategy )

c.1romoinent large scale organisations 0

 

CHAPTER I.9 FI/1I/2! A/1 OTHER A!PECT! +,4))

. #easures ta/en to 1rotect small retaillers +,

.' %etail 1ricing

.* %etail com1etition 1ercentage in different countries ')

. Staffing ')

.0 3ransfer mechanisms ')'

.+ Second hand retail '

., challenges faced by large and small scale retailers ')

. <overnment investment in retail ')'

CHAPTER .9 CO/CL-!IO/ A/1 RECO$$E/1ATIO/ ):

0. conclusion '*

0.' %ecommendation '*

CHAPTER .I #I#LIO2RAPH' );

 

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CHAPTER +

I/TRO1-CTIO/

  ++ #AC32RO-/13his 1ro5ect studies the scenario of the retail structure of various countries their method of distribution of

goods and services and 1ro1er1lanning and their dra2bac/s and benifits 2hich they receive out of their

 business.3he com1etition faced 2ith 1ossible com1etitors and so on. 

+) J-!TIFICATIO/ OF THE !T-1'%etailing ta/es an im1ortant role to every country. :n 1resent time retailing is obligated to all of the com1any

involved in selling its goods to consumers. =ach com1any try to snatch out all of the 1rofit in their o2n gras1.

But it is remembered that the com1anies not only res1ects of its 1rofit. Beside this it should ta/e care that it can

satisfy the 2ants and needs of the consumers. 3he com1any needs to ta/e 1art the social 1ur1ose in order to

retain its re1utation e?ce1t of its economic accom1lishment.

:n 1resent time many com1anies constitute of their o2n franchisee sho1s and sell through big retail outlets. 2e

shall maintain the utilities of the 1roduct ade>uately as 1er the materials should utilise in 1ro1erlyand also

 1rovide feed bac/ to the com1any.3hrough retailing the com1any can see the demand for its 1roducts . So

retailing is mandatory to each com1any for their 1romotion.

+: #RIEF RE.IE7 OF LITERAT-REConsumer satisfaction and 1rofit are the main mantra of business.its leads to the success of the business.Besides

2e should remember that the small businessmen should not be su11ressed by big retailers .:n order to 1reserve

the interests of both the government has given the 1etty retailers certain benifits.

+;  O#JECTI.E! OF THE !T-1'  i to understand retailing defintition.

  ii 3o understand retailing 1olicies in different 2orldtheir mar/eting strategies.

  iii 3o understand the various ty1es of retailtheir differences and staffing in retail outlets and challenges

faced by retailers and their transfer mechanisms.

. iv 3o find out com1etition of retailers in different countries and the measures of the government.

 +< RE!EARCH $ETHO1OLO2'

: have ta/en the to1ic of retailing and : have given the definition of retailing along 2ith relavant data of the

retail structure and ty1es of retail in different countries in the 2orldand staffing in retail outlets and their

management and the measures of the government.3he retail 1ricing and other as1ects involving retail li/e

challenges and retailers dra2bac/s etc.

+,  LI$ITATIO/! OF !T-1'

. Ho2 far the government has succeeded in giving e>ual o1ourtinities to small and bg retailers.

'. 3he data may vary vastly 2ith actual figures.

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+8 CHAPTER PLA/I/2 CHA43=%" : have done in this cha1ter the 1ro5ect bac/ground 5ustification of study revie2

of literature ob5ective & limitation of the study.

CHA43=%'" : have given a conce1t about %etailingsmall and large scale retail the

characterstics of small and large scale retailingand their differences.

CHA43=%*" : have given data about mar/eting strategy of retail ty1es of 4roducts and

Stores and 2arehouses available in retailing.

CHA43=%" : have studied the measures the government has ta/en to 1rotect the interests of

small scale retailerschallanges faced by retailersstaffingin retail storesand retail 1ricingand

challanges faced by retailers and transfer mechanisimsetc.

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CHAPTER 2

Conceptual frame work

2.1Definition of retailling

Retail is the process of selling consumer goods and/or services to customers through multiple channels of

distribution to earn a profit. Demand is created through diverse target markets and promotional tactics, satisfying

consumers' wants and needs through a lean supply chain. In the 2000s, an increasing amount of retailing is

done online using electronic payment and delivery via a courier or postal mail. etailing includes subordinated

services, such as delivery. !he term

"retailer" is also applied where a service provider services the small orders of a large number of individuals, rather

than large orders of a small number of  wholesale, corporate or government clientele. #hops may be on residential

streets, streets with few or no houses, or in a shopping mall. #hopping streetsmay be for pedestrians only.

#ometimes a shopping street has a partial or full roof  to create a more comfortable shopping environment protecting

customers from various types of weather conditions such as e$treme temperatures, winds or precipitation. %nlineretailing, a type of electronic commerce used for business&to&consumer (2)* transactions and mail order , are forms

of non&shop retailing.

#hopping generally refers to the act of  buying products. #ometimes this is done to obtain final goods including

necessities such as food and clothing+ sometimes it is done as a recreational activity. ecreational shopping often

involves window shopping ust looking, not buying* and browsing and does not always result in a purchase

2.2!ypes of retailling

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Small-scale retailing

Features of Small – scale retailing

1. They normally run as a sole proprietorship (sole trader) or a partnership

2. The capital is usually small and it is raised from personal saving, borroed from friends or family or loan from ban!s

". Small retailers obtain a great variety of goods in small #uantities from holesaler

$. The sole proprietorship (sole trader) normally serves his customers ith the help of some assistants. Therefore, he

has the opportunity to get !no his regular customers ell

Reasons why Small retailers buy from the Wholesaler

1. Small %apital

 The small retailer has only a small capital and cannot afford to buy in bul! from the manufacturer therefore he can

only ma!e small orders at a particular time¬

2. &imited mar!et

 The small retailers has mainly a regular customers therefore the mar!ets is only limited to the people living in the

area near their shop¬

". Small turnover

 The total sales per month is small¬

Large Scale Retail Organisations

The retail trade is conducted now on a large scale. The mass production of goods

and the concentration of population in urban centres has necessitated the

establishment of large-scale retail trading houses. There are many advantages of

retailing on a large scale.

2.3Differences between large and small scale retail

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1 The large scale retailers have large capital while the small retailers have less capital.

2The large scale retailers have efficient management,which lacks among the small scale retailers.

3 The large scale retailers can purchase in bulk while the small scale retailers deals in small amounts and they

cannot give benefits and offers including seasonal and non seasonal .

4 The large scale retailers have proper insurance of their goods which the small scale retailers donot have.

The large scale retailers can avail credits easily from banks and other financial institutionswhich the small scall

retailers cannot.

2.4Impact of large scale retaillers on consumers

1 ready stock 

2. wide choice

3all under one roof 

4 education

2.5Impact of small scale retaillers on consumers

1!redit facility available

2accessible at any time due to good relation ship

)-! 1

1.3iterature research on retail

  marketplace is a location where goods and services are e$changed. !he traditional market s4uare is a city

s4uare where traders set up stalls and buyers browse the stores. !his kind of market is very old, and countless such

markets are still in operation around the whole world.

In some parts of the world, the retail business is still dominated by small family&run stores, but this market is

increasingly being taken over by large retail chains. 5ost of these stores are called high street stores. 6radually

high street stores are being re&grouped in condensed geographical areas along specific streets or districts such as

the 5agnificent 5ile in )hicago, Illinois or at single locations called malls. !hese are more defined and planned

spaces for retail stores and brands.

a.Types by proucts

etail is usually classified by type of products as follows7

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• 8ood products 9 typically re4uire cold storage facilities.

• -ard goods or durable goods "hardline retailers"*

:2; 9 automobiles, appliances, electronics, furniture, sporting goods, lumber , etc., and parts for them. 6oods that

do not 4uickly wear out and provide utility over time.

• #oft goods or consumables:1;:<; 9 clothing, other fabrics, footwear , cosmetics, medicines and stationery.

6oods that are consumed after one use or have a limited period typically under three years* in which you may

use them.

•  rts 9 )ontemporary art galleries, (ookstores, -andicrafts, 5usical instruments, 6ift shops, and supplies

for them.

b.Types by marketing strategy

!here are the following types of retailers by marketing strategy7

Discount department store )harters !owers, =orth >ueensland, ustralia

Department store

Department stores are very large stores offering a huge assortment of "soft" and "hard" goods which often bear a

resemblance to a collection of specialty stores. retailer of such store carries a variety of categories and has a

broad assortment of goods at average price. !hey offer considerable customer service.

Discount store

Discount stores tend to offer a wide array of products and services, but they compete mainly on price. !hey offer

e$tensive assortments of merchandise at affordable and cut&rate prices. In the past, retailers sold less fashion&

oriented brands. -owever, in more recent years companies such as !?@ )ompanies %wn !.?. 5a$$ and 5arshalls*

and oss #tores are discount store operations increasingly offering fashion oriented brands on a larger scale.

!are"ouse store

Aarehouses that offer low&cost, often high&4uantity goods piled on pallets or steel shelves+ warehouse clubs charge

a membership fee.

#ariety store

Bariety stores offer e$tremely low&cost goods, with limited selection.

Demograp"ic

etailers that aim at one particular segment e.g., high&end retailers focusing on wealthy individuals*.

$om%An%Pop

  small retail outlet owned and operated by an individual or family. 8ocuses on a relatively limited and selective set

of products.

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&pecialty store

  specialty (7 speciality* store has a narrow marketing focus 9 either specialiCing on specific merchandise, such

as toys, shoes, or clothing, or on a target audience, such as children, tourists, or plus&siCe women. :; #iCe of store

varies 9 some specialty stores might be retail giants such as !oys "" Es, 8oot 3ocker , and !he (ody #hop, while

others might be small, individual shops such as =utters of #avile ow.:; #uch stores, regardless of siCe, tend to

have a greater depth of the specialist stock than general stores, and generally offer specialist product knowledge

valued by the consumer. ricing is usually not the priority when consumers are deciding upon a specialty store+

factors such as branding image, selection choice, and purchasing assistance are seen as important. :; !hey differ

from department stores and supermarkets which carry a wide range of merchandise.:F;

'outi(ue

(outi4ue or concept stores are similar to specialty stores. )oncept stores are very small in siCe, and only ever stock

one brand. !hey are run by the brand that controls them. n e$ample of brand that distributes largely through their

own widely distributed concept stores is 3'%))I!= en rovence. !he limited siCe and offering of 3'%))I!='s

stores are too small to be considered a specialty store proper.

)eneral store

  general store is a rural store that supplies the main needs for the local community+

Con*enience store

  convenience store provides limited amount of merchandise at more than average prices with a speedy checkout.

!his store is ideal for emergency and immediate purchaseconsumables as it often works with e$tended hours,

stocking everyday+

Hypermarkets

rovides variety and huge volumes of e$clusive merchandise at low margins. !he operating cost is comparatively

less than other retail formats.

&upermarket

  supermarket is a self&service store consisting mainly of grocery and limited products on non food items. !hey may

adopt a -i&3o or an D3 strategy for pricing. !he supermarkets can be anywhere between 20,000 and <0,000

s4uare feet 1,G00 m2*. $ample7 # supermarket.

$all

  shopping mall has a range of retail shops at a single outlet. !hey can include products, food and entertainment

under one roof. 5alls provide GH of retail revenue in India, 0H in Bietnam, 2H in )hina, 2H in Indonesia, 1JH

in the hilippines, and <H in !hailand.:G;

+Category killer+ or specialist

(y supplying wide assortment in a single category for lower prices a category killer  retailer can "kill" that category for

other retailers. 8or few categories, such as electronics, the products are displayed at the centre of the store and

sales person will be available to address customer 4ueries and give suggestions when re4uired. %ther retail format

stores are forced to reduce the prices if a category specialist retail store is present in the vicinity.

E%tailer 

!he customer can shop and order through the internet and the merchandise is dropped at the customer's doorstep

or an e&tailer . -ere the retailers use drop shipping techni4ue. !hey accept the payment for the product but the

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customer receives the product directly from the manufacturer or a wholesaler. !his format is ideal for customers who

do not want to travel to retail stores and are interested in home shopping.

#ening mac"ine

  vending machine is an automated piece of e4uipment wherein customers can drop the money in the machine and

ac4uire the products. #ome stores take a no frills approach, while others are "mid&range" or "high end", depending

on what income level they target.

,t"er types:edit;

%ther types of retail store include7

•  utomated etail stores 9 self&service, robotic kiosks located in airports, malls and grocery stores. !he

stores accept credit cards and are usually open 2</G. $amples include Koom#hops and edbo$.

• (ig&bo$ stores 9 encompass larger department, discount, general merchandise, and warehouse stores.

etailers can opt for a format as each provides different retail mi$ to its customers based on their customer

demographics, lifestyle and purchase behaviour. good format will lend a hand to display products well and entice

the target customers to spawn sales.

"owever, in spite of the economies of large scale retailing, the small-scale units could not be eliminated because of 

the various special advantages possessed by them.

c.Some of the more prominent largescale retail organisations are as follows!

#epartmental $tores.

%ultiple $hops or !hain $tores.

mail &rder "ouses.

$uper %arkets.

!onsumer !o-&perative $tores.

"ire-'urchase Trading "ouses.

 (ending %achines.

&ne 'rice $hops.

Departmental Stores

 ) departmental store is a large-scale retail organisation having a number of departments under one roof. *ach

department speciali+es in one particular kind of trade. )ll these departments are centrally organi+ed and are under

one united management and control. ) departmental store is an organisation of several retail stores carried on in

one building and under united controlled management. The basic obective of a departmental store is to provide a

large variety or merchandise from a pin to an aero plane at one place.

"ultiple Shops or #hain Stores

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 ) multiple shop system is a network of branch shops, situated at different localities in the city or in different parts of

the country, under a centrali+ed management and dealing in similar lines of goods. $uch multiple shops are very

common and popular in the est and are known as !hain $tores. )ccording to ./. 0ri, !hain stores is a group of 

stores handling similar lines of merchandise with single ownership and centrali+ed /ocation.

The 0ederal Trade commission defined a chain store as an organisation owing a controlling interest in two or more

establishments which sell substantially similar merchandise at retail prices.

"ail Order Sale $ouses

mail order sale is a retail business where orders are placed by post or mail and goods are received either by

registered parcel or (.'.'. i.e., (alue 'ayable 'ost. nder such a type of selling, the seller advertises his products in

the leading dailies and maga+ines of the area and the intending buyers respond to such advertisements by reuesting

for catalogues and price lists from the seller. The buyers do not inspect the goods before purchasing but place orders

on the basis of the advertisements which they see in the newspapers and maga+ines. )fter orders are received from

customers, the goods are dispatched by (.'.'. or registered mail. The postman of the buyer5s locality delivers the

goods to him and takes the payment for the same. Thus the post office plays a vital role in such a type of sale, and it

is because of this type of sale is also sometimes referred to as $hopping by 'ost.

Super "ar%ets

The super market is a large-scale retail institution speciali+ing in necessaries and convenience goods. They have

huge premises and generally deal in food and non-food articles. 6n the words of %. %. 76%%*8%)9, ) super

market is a departmentali+ed retail establishment having four basic departments vi+, self-service grocery, meat

produce diary products plus other household departments, doing a ma:imum business. 6t may be entirely owner-

operated or have some of the departments leased out on a concession basis.

$uper markets came into e:istence in the $) during the ;reat #epression of the thirties. "owever, the original

super markets were established by independent merchants who dealt mainly in food products.

#onsumer #oOperati&e Stores

 ) consumer co-operative is a retail business which is owned by the consumers themselves. Their basic obective is to

eliminate middlemen. The consumer oin together and manage the business and the profit thus earned is retained

among themselves in the proportion of their contribution. The society purchases in bulk and avails the discounts and

sells in small lots to the members. $ome of the co-operative stores are run on a large-scale basis while others are

small in si+e and nature. This form of retailing originated in *ngland in the year 1<44 when a group of 2< weavers

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established the 8&!=#)/* '6&9**8$ *>6T)?/* $&!6*T@ with the purpose of establishing a store for the sale

of provisions, clothing etc.

$ire'urchase (rading $ouses

 )ccording to . $T*'"*9$&9, in his book, AThe principles and 'ractice of commerce5, the fire-purchase is a form

of trade in which credit is granted to the buyer on the security of a lien on the goods. )n agreement is made

 between the buyer and the seller that the former will take possession of the goods sold by the latter and shall make

payments in installments at regular intervals. The ownership lies with the seller until the last installment is paid by

the buyer, and in case the buyer fails to make the payment in full, the seller is free to take back the goods from the

 buyer.

nder the installment payment transaction, the ownership passes on to the buyer from the seller the moment the

former pays the first installment. 6f, however, the buyer does not make the subseuent payments, the seller can sue

him in a court of law for getting the payments, but cannot take the goods as such from the buyer.

 )ending "achines

$uch selling machines are e:tensively used in the est. The vending machine is operated by inserting a coin and the

 buyer can get the articles. (ending machines are usually acuired to sell articles like cigarettes, soft drinks

chocolates, candles etc. 8ailway platform and bus tickets are also sold by this method. The articles sold by a vending

machine are pre-packed and labeled and are usually of reputed brands. The goods should be uniform in si+e and

shape and less bulky in weight. The installation of such machines is an e:pensive affair and it needs regular

maintenance also. $uch machines are uite attractive in appearance and installed at busy shopping centres.

One'rice Shops

$uch shops usually sell small articles at the same price. The usual articles sold by such shops are pens, socks,

handkerchiefs, knives, etc., where each article is sold at a fi:ed price, and the price is usually very low, e.g., each pen

for one rupee. The origin of such a type of retail shop was in $) and is associated with the name of %r. oolworth.

6n 6ndia, the hawkers and peddlers usually sell cheap articles on wayside pavements

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CHAPTER ; FI/1I/2! A/1 OTHER A!PECT!

4.1

A branch of Philadelphia's Sovereign Bank, a major lender to small businesses.

With most of the world's business being conducted by small entrepreneurs, it makes good economic sense for

governments to implement policies that encourage small-business growth. The five ways in which government can

have the most positive effect are by making capital more accessible, facilitating business education, promoting

entrepreneurship, reducing regulatory burdens, and protecting intellectual property.Steve Strauss, a lawyer, author, television commentator, and USA Toda business columnist, is one of America's

leading experts on entrepreneurship and business development.

!n the late "#$%s, a commune in communist &hina as so broke, and the peasants ho ran the commune so hungr

and poor, that the decided to risk their lives and do the unthinkable( The peasants secretl privati)ed and divided up

the land. *ach farmer had his on plot ith hich to gro his on food, use it, and sell the e+tra, if an.

ithin a ear, that commune became one of the most prosperous in &hina and, not surprisingl, caught the ee of

communist officials. -et rather than condemn hat as a decidedl noncommunist idea, the government gave private

commune plots an official blessing. The rest, as the sa, is histor. &hina's capitalist turn became the greatest

antipovert program in the histor of the orld, freeing millions of people from povert in a fe short decades.

That government policies can have a huge impact on the groth and promotion of small business is a vast

understatement. !n a orld beset b too much hunger and need, small business is one thing ith a proven capacitnot onl to ease suffering, but also to create a solid middle class, generate a secure ta+ base, and foster social

stabilit. All in all, small business is good business.

hich raises the uestion( /or those countries ishing to promote small business, hat policies can be adopted to

encourage its groth0 ! suggest that there are five main areas here appropriate government policies can have a

huge impact on small1business groth.

MAKE CAPITAL EASILY AVAILABLE

hen ! as a oung bo, m father oned several carpet stores. 2ne da, ! as given the assignment in school to

rite an essa about hat he did for a living. Because 3retail carpet store oner3 as hard for me to describe, ! asked

him hat he did. 3ell,3 he said, 3!'m an entrepreneur.3 A bit confused, ! asked him hat that as, and he replied,

3An entrepreneur is a person ho takes a risk ith mone to make mone.3

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That remains as good a description as ! have ever heard, although since then ! have learned that entrepreneurs

actuall like to take small, calculated risks. Therefore, if a government ants to promote small business, it must

advance policies that reduce the risk inherent in entrepreneurship. That a, people ill be more illing to leave the

comforts of their jobs and start ne businesses.

So the first polic necessar to promote small1business development is one that assists ould1be entrepreneurs find

the mone the need to get started.

!n the United States, e have a government agenc called the Small Business Administration 4SBA5, hose duties

include helping entrepreneurs get the mone the need to take the risks necessar to start small businesses.

!nterestingl, the SBA does not actuall make these loans, but it does guarantee them. Banks are more likel to loan

mone to risk ne businesses hen the kno that the SBA and the U.S. government ill guarantee repament,

even if the borroer defaults. The result is a vibrant U.S. econom in hich ## percent of all businesses are small

businesses.

So the first thing an government seeking to promote small business should do is to establish a pool of federall

guaranteed loans. *as access to capital creates the foundation for a livel small1business sector.

TEACH ENTREPRENEURSHIP

There are man things that go into creating a successful small1business econom, but surel a significant one is a

collection of entrepreneurs illing to start ne businesses. /or that to occur, citi)ens must be able to learn business

skills. There are several as in hich governments can assist them in doing this(

6 &reate 3business incubators.3 A business incubator is a facilit that offers start1up businesses a place to gro.

Tpicall, business incubators are associated ith universities, and professors and other e+perts donate their time and

e+pertise teaching ne entrepreneurs everthing from sales and marketing to la and ta+es. 2nce the ould1besmall1business oners conclude this crash course in business, the move on and start their businesses, and ne

entrepreneurs come in to take their place. 7overnments can offer universities financial incentives for creating on1

campus business incubators.

6 Use the !nternet. The SBA has online tutorials that teach business skills and ideas to anone ith !nternet access8

http(99sba.gov9training9coursestake.html. An government that ishes to promote small and medium1si)ed

enterprises should consider doing something similar.

:ire e+perts. ;ikeise, private1sector small1business e+perts can be hired to teach business skills online. ! rite a

eekl online column for the nespaper !A Today  that does this(.

&*;*B<AT* A=> /2ST*< S?A;; BUS!=*SS

=ot onl must ne entrepreneurs be taught the skills necessar to succeed, but e+isting entrepreneurs should be

promoted so as to encourage more people to start small businesses. !n &osta <ica and Urugua, small1business fairsand e+pos recogni)e small business and entrepreneurship. Urugua also has aards for small businesses that

contribute to societ. !ndeed, there is plent a government could do to promote small business. /or e+ample(

6 Sponsor an 3*ntrepreneur of the -ear3 aard. A earl aard, on both the local and national levels, if ell

publici)ed, could do much to create an entrepreneurial mind1set.

6 Tap the e+pertise of business leaders. A countr that ants to promote small business must ork to have its

population look up to entrepreneurs. 2ne a to do this is for the government to tap business leaders to help solve

various issues and problems. Blue1ribbon government panels should take advantage of the e+pertise of entrepreneurs

&<*AT* T:* P<2P*< TA@ A=> <*7U;AT2<- *=!<2=?*=T

A countr's ta+ code is one of the best tools it has for promoting small1business groth. !n the United States, for

instance, the ta+ code is changed often ith the idea that certain ta+ credits, deductions, or reductions can be used to

foster groth in one segment or another.:ere is another e+ample( =earl # percent of all &anadian businesses are small businesses. The &ertified

?anagement Accountants of &anada recentl recommended to the &anadian Parliament that the best a to foster

even more small1business groth is through changes in &anada's ta+ policies, such as(

6 reducing the corporate ta+ rateC

6 offering ta+ credits for investments in training and educationC

6 increasing the deductions for investments.

Aside from loering ta+es to encourage business formation, it is important to reduce and eventuall eliminate those

government regulations that stmie business groth. The simpler and more e+pedited the regulator process, the

greater the likelihood of small1business e+pansion.

P<2T*&T !=T*;;*&TUA; P<2P*<T-

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An government that ants to encourage small business needs to produce las that protect the innovations of

entrepreneurs.

-.2Retail pricing

!he pricing techni4ue used by most retailers is cost&plus pricing. !his involves adding a markup amount or

percentage* to the retailer's cost. nother common techni4ue issuggested retail pricing. !his simply involves

charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.

In Aestern countries, retail prices are often called psychological prices or odd prices. %ften prices are fi$ed and

displayed on signs or labels. lternatively, when prices are not clearly displayed, there can be price discrimination,where the sale price is dependent upon who the customer is. 8or e$ample, a customer may have to pay more if the

seller determines that he or she is willing and/or able to. nother e$ample would be the practice of discounting for

youths, students, or senior citiCens.

-.C,$PAR/0) THE C,$PET/T/,0 , RETA/ /0 D/ERE0TC,30TR/E&

Competition

etail stores may or may not have competitors close enough to affect their pricing, product availability, and other

operations. 200F survey found that only 1H of retail stores in India believed they faced more than slight

competition.:0; )ompetition also affected less than half of retail stores in LaCakhstan, (ulgaria, and Cerbaian. In all

countries the main competition was domestic, not foreign. :;

Country 4 of retail stores facing competition:;

India 1H

LaCakhstan <<H

(ulgaria <FH

 Cerbaian <H

ECbekistan H

 rmenia H

6eorgia JH

LyrgyCstan JH

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Country 4 of retail stores facing competition:;

ussia F2H

(elarus F<H

)roatia FH

omania FH

Ekraine G2H

!urkey G1H

#erbia G<H

!aikistan G<H

#lovenia GGH

3atvia GH

(osnia and -erCegovina GJH

5oldova GJH

)Cech epublic 0H

#lovakia 0H

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Country 4 of retail stores facing competition:;

oland 1H

-ungary GH

stonia H

3ithuania H

5acedonia H

 lbania JH

etail trade provides JH of all obs in India and <H of 6D.:0;

-.-&taffing

(ecause patronage at a retail outlet varies, fle$ibility in scheduling is desirable. mployee scheduling software is

sold, which, using known patterns of customer patronage, more or less reliably predicts the need for staffing for

various functions at times of the year, day of the month or week, and time of day. Esually needs vary widely.

)onforming staff utiliCation to staffing needs re4uires a fle$ible workforce which is available when needed but does

not have to be paid when they are not, part&time workers+ as of 202 G0H of retail workers in the Enited #tates were

part&time. !his may result in financial problems for the workers, who while they are re4uired to be available at all

times if their work hours are to be ma$imiCed, may not have sufficient income to meet their family and other

obligations.:2;

-.5Transfer mec"anisms

!here are several ways in which consumers can receive goods from a retailer7

• )ounter service, where goods are out of reach of buyers and must be obtained from the seller. !his type of

retail is common for small e$pensive items e.g. ewelry* and controlled items like medicine and li4uor. It wascommon before the J00s in the Enited #tates and is more common in certain countries like India. :which?;

• )lick and )ommute, where products are ordered online and are picked up via a drive through.

• #hip to #tore, where products are ordered online and can be picked up at the retailer's main store

• Delivery, where goods are shipped directly to consumer's homes or workplaces. 5ail order  from a printed

catalog was invented in G<< and was common in the late Jth and early 20th centuries. %rdering

by telephone was common in the 20th century, either from a catalog, newspaper, television advertisement or a

local restaurant menu, for immediate service especially for  piCCa delivery*, remaining in common use for food

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orders. Internet shopping 9 a form of delivery 9 has eclipsed phone&ordering, and, in several sectors 9 such

as books and music 9 all other forms of buying. !here is increasing competitor pressure to deliver consumer

goods& especially those offered online& in a more timely fashion. 3arge online retailers such as  maCon.com are

continually innovating and as of 20 offer one&hour delivery in certain areas. !hey are also working with drone

technology to provide consumers with more efficient delivery options. Direct marketing,

including telemarketing and television shopping channels, are also used to generate telephone orders. started

gaining significant market share in developed countries in the 2000s.

• Door&to&door  sales, where the salesperson sometimes travels with the goods for sale.

• #elf&service, where goods may be handled and e$amined prior to purchase.

• Digital delivery or  Download, where intangible goods, such as music, film, and electronic books and

subscriptions to magaCines, are delivered directly to the consumer in the form of information transmitted either

over wires or air&waves, and is reconstituted by a device which the consumer controls such as an 51 player + 

see digital rights management *. !he digital sale of models for 1D printing also fits here, as do the media leasing

types of services, such as streaming.

4.*Secondhand retail :

#ome shops sell second&hand goods. In the case of a nonprofit shop, the public donates goods to the shop to be

sold. In give&away shops goods can be taken for free.

 nother form is the pawnshop, in which goods are sold that were used as collateral for loans. !here are also

"consignment" shops, which are where a person can place an item in a store and if it sells, the person gives the

shop owner a percentage of the sale price. !he advantage of selling an item this way is that the established shop

gives the item e$posure to more potential buyers.&tailers like %3@,>uikr etc. also working on second hand goods

sales.

4.+#hallenges faced b, large scale and small scaleretaillers

!o achieve and maintain a foothold in an e$isting market, a prospective retail establishment must overcome the

following hurdles7

• egulatory barriers including

• estrictions on real estate purchases, especially as imposed by local governments and against "big&

bo$" chain retailers+

• estrictions on foreign investment in retailers, in terms of both absolute amount of financing

provided and percentage share of voting stock e.g., common stock* purchased+

• Enfavorable ta$ation structures, especially those designed to penaliCe or keep out "big bo$" retailers see

"egulatory" above*+

•  bsence of developed supply chain and integrated I! management+

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• -igh competitiveness among e$isting market participants and resulting low profit margins, caused in part by

• )onstant advances in product design resulting in constant threat of product obsolescence and price

declines for e$isting inventory+ and

• 3ack of properly educated and/or trained work force, often including educational infrastructure.

4.8Initiatives taken by Indian Government toInvestment in Retail Sector

 

 The Government of India has been trying very hard to make the Indian retail sector highly attractive for

foreign investors such as Person of Indian Origin PIOs! and "on Resident Indians "RIs!. #ere are some of

the key initiatives taken by the Indian government in order to encourage foreign investors to invest in the

Indian retail sector $

Indian Government has introduced an im%ortant economic reform under &hich '() *+I &ill be

allo&ed in Multi Brand Retail Trading (MBRT) and (,,) *+I &ill be %ermitted in Single Brand Retail

Trading.

 The +IPP has considered rela-ing some sourcing norms for foreign retailers to set u% their retail

stores in India as some retail giants such as I/0 has been constantly asking for rela-ation on mandatory

conditions.

 The 1nion 2inistry of *inance in India has also granted a relief of 1S3 billion to soft&are industry

by introducing single T+S on the %lace of multi5level structure of T+S. "o& on&ards6 the T+S &ould be

deducted by 7rst distributor6 one &ho has bought %ackaged soft&are from a develo%er.

Previously6 foreign chains had to source at least ,) of their %roducts at local level. 1nder the ne&

reform6 government has retained the ,) sourcing reuirement but it can be met over the %eriod of '

years initially and after that it has to be met on yearly basis.

Global chains &ill need to invest only ',) of the initial com%ulsory investment out of 3(,, million

in establishing the &arehouses and cold storages in India. 0%art from this6 half of the overall investment

done by foreign retail %layers in India has to be in develo%ing back end infrastructure.

 The ne& %olicy also %ermitted global retailers to acuire from small and medium businesses &hich

have initial investment in %lant 9 machinery of not more than 3: million u% from the earlier limit of 3(

million in order to make sure that small Indian organi;ations &ill bene7t from the arrival of foreign 7rms.

0%art from this6 all these organi;ations can continue to su%%ly even if they cross the investment

ca% of 3: million during later stages. This &ill hel% foreign retailers to maintain stable su%%ly chain in India.

 The Government of India has also %ermitted Indian states &hich have decided to encourage *+I in

retail sector by making decision on &here they &ish to %ermit foreign retailers to establish their sho%.

0ccording to earlier guidelines6 foreign chains could only o%en retail stores in cities &hich have %o%ulation

of over ( million.

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D.# 72*<=?*=TS:A<* 2/ !=*ST?*=T != <*TA!; ?A<E*T

Interpretation

In this chart &e 7nd that the government share in total market has increased considerablybut inas%ect of food and grocery &e 7nd that the %ercentage has increased drastically.The gro&th ismarkable in clothing and accessories6the lo&est gro&th is in beauty and &ellness.

In organi;ed retail market &e 7nd that there also clothing andaccessories sho& a markable gro&th follo&ed by food and grocery and the lo&est is in beautyand &ellness.

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CHAPTER 5CONCLSION<+ CO/CL-!IO/94

:n 1resent times %=3A99:!< is im1ortant to each com1any. =ach com1any tries to earn 1rofit but it is not

necessary to earn 1rofit but to s2ay on. :n 1resent time 3he com1anies in order to sell their 1roducts has to loo/

at consumers 2ants and choices . :n our country there are many business men 2ho are involved in retail

 business and also there are many com1anies giving franchisees to businessmen for selling their 1roducts.3he

different countries have different retail stores retail 1ricing and other staffs involved in retailing .3here are

various de1artmental stores coo1erative societ1etty sho1sor big malls in different countriesetc involved in

retailing but still due to certain 1roblems everyone has their dra2bac/s.Finally : conclude that the government

of every country gives financial benefits and nonfinancial benefits to various retail business for their

develo1ment in future.

<) RECO$$E/1ATIO/94

%etailing ta/es a great 1osition in the success of business.So : 2ould recommend that government of each

county should loo/ u1on the retail business.3hey should em1loy government officials 2ho 2ould chec/ that

the financial and non financial incentives that the government of each country is 1roviding to give e>ual

o11urtunities to all is being true or not.it should be 1ut into action and the 1eo1le 2ho are loo/ing for their self

interests should be 1ennalised.

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CHAPTER !BIBLIO"RAPH# %=F=%=!C=S"sites. 222.google.com

'. 222.businessa2esome.com

*. 222.eho2.com

Boo/s "

( isc commerce volume (:. %rinci%les of retailing O<*OR+ 1"I= PR/SS!

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