The Importance Of Retailing In India

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Retailing is selling the products to the end users or consumers and it ensures that they derive maximum value from the buying process. Retailing is a distribution channel function where one organization either buys products from supplying firms or manufactures the product themselves, and then sells these directly to consumers. As the final link between consumers and manufacturers, retailers are a vital part of the business world. Retailers add value to products by making it easier for manufacturers to sell and consumers to buy. It would be very costly and time consuming for a person to locate, contact and make a purchase from the manufacturer every time he wants to buy a sweater or a chocolate. Similarly, it would be very costly for the manufacturers to…show more content…
By bringing large number of manufacturers and consumers together at a single point, retailers make it possible for products to be sold and consequently business to be done. It is also defined as the timely delivery of goods and services demanded by consumers at prices that are affordable and competitive. This involves adding a makeup amount to the wholesaler’s cost. Retailing can be done in either fixed locations like stores or markets or temporary retail methods like door-to-door selling or by drop shipping. The pricing technique used by most retailers is cost-plus pricing. (Sodhia et al 2011)
In the past few years retailing has emerged as one of the most important sectors of the Indian economy in terms of its contribution to the gross domestic product (GDP) and employment creation. Retailing as a whole contributes about 10% of India’s Gross Domestic Product (GDP) and
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