Importance Of Retail Distribution

INTRODUCTION TO RETAILING & SUPERMARKETS
A country’s economy mainly depends upon three aspects - production, distribution and consumption. The products or services produced in different parts of country are to be made to reach the ultimate consumer through proper distribution channel. The distribution centers are required to send the products to the wholesale market, which in turn sends products to the retailer. The retailer delivers the goods to the consumers for final consumption. Thus the retailer’s role in marketing is considered to be the most important one. The responsibilities of retailers are also very significant. Most Indian shopping takes place in open markets or millions of small, independent grocery and retail shops. Shoppers typically

In simple terms, it implies a first-hand transaction with the customer. Retailing involves direct interface with the customer and the coordination of business activities from end to end – right from the concept or design stage of a product or offering to its delivery and post delivery service to the customer.
Retailing is an activity copiously concerned with getting goods in the finished state into the hands of the customers who are prepared to pay for the pleasure of sumptuous eating, wearing or experiencing particular product items. Retailing is all about the distribution of goods and services because retailers play a key role in the journey that products make from a manufacturer, a grower or service-provider to the person who consumes. A retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items in small quantities to the general public or end-user customers at a margin of profit. Thus, retailers are at the end of the supply chain and retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. The retail trade sector comprises establishments engaged in retailing, merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The

Customers are first introduced to the product at the retail store. Retail stores in turn serve as communication hubs for customers. The role of retailing in the marketing mix is very significant. Retailing can be divided into two major sections, viz. organized and unorganized. Organized retailing is one in which there is a proper organized ownership, permanent employees, fixed place involving standardized business practices. Unorganized retailing is one which is not organized. Often, the family members take care of the business. The size of the business is very small and sometimes it forms part of the residence of the owner. There is no fixed place for shop and the business practices are not at all organized. In India, majority of the retail outlets come under the unorganized category. The organized sector is slowly entering the Indian