A person who can communicate well, convince people easily, and sell something right off, fit well in the retailing business. By serving as the middleperson of producers and consumers, a retailer can earn money easily by selling food, apparel, home furnishings, appliances, automobile parts, and many other kinds of goods.
Retailing is selling goods directly to consumers. This entrepreneurial activity is based on the understanding that while a customer keeps buying and never lets up, there are actually certain factors that keep a retailer’s sales up. Consumables and other products with recurring sales value have to be placed ...view middle of the document...
Examples are Kamiseta and Bayo (clothes), Mendrez and Celine (shoes), and The Body Shop (skin care).
2. Online retailing In this type of retailing , retailers connect to individual consumers through the Internet. This makes shopping easier for consumers by allowing them to order products hassle-free through the computer. Some examples of online retailers are www.amazon.com, www.barnesandnoble.com, and www.8mcdo.com.
3. Nonstore retailing Call it a revolutionary way of retailing, it keeps up with the competition by reaching a wider base. Nonstore retailing includes catalog and direct-mail retailing, direct selling, television home shopping, and vending-machine retailing.
* Catalog and direct-mail retailing is a retail format that allows customers to choose products from catalog or brochures that are sent to them directly via mail.
* Direct selling is a retail format wherein the distributor (seller) contacts the customer directly at home or at work to offer products. It is a highly interactive form of retailing where face-to-face discussions between the buyer and the seller take place.
* Television home shopping is a retail format that uses television as a medium to demonstrate the features and benefits of a product and allows customers to place their order through the telephone.
* Vending-machine retailing is a nonstore format wherein products such as soft drinks, coffee, and chips are avalable to customers through the vending machine. Customers simply deposit cash into the machine to get their desired item. These machines are located in high-traffic locations such as schools, airports, and offices.
Types of Retailing by Ownership
1. Independent, single-store establishments
2. Corporate retail chains - A corporate retail chain is a company operating several retail units under a single owner or management. Decision making is centralized in this type of retailing. An example of this is SM, which has branches in key cities all over the Philippines. All of these stores are owned by Henry Sy.
3. Franchising - Franchising is a contractual management between a franchisor (one who grants a frachise) and a franchisee (one who buys a franchise) that allows the franchisee to buy the rights to use the parent company’s name and to sell its product or service in exchange for an up-front franchise fee (prices vary between industries) and ongoing royalties, usually 3-6 percent of sales. The franchisee also agrees to operate the store in accordance with the terms and conditions set by the franchisor. Examples of franchise are Ministop and Goldilocks.
a. Advantages of Franchises
1) An established brand – Franchises often sell products with regional, national, or even global recognition. A hungry traveler stops at Burger King because he or she knows what a Whooper tastes like. Such brand-name clout helps one’s business in two ways: It increases revenue by bringing in customers and decreases the amount of...