Importance of retail marketing cannot be denied for today’s manufacturers. Retail stores play an important role in high-level exposure of businesses and widespread distribution of products. In retail stores, retailers get opportunities to interact with customers (the ultimate consumers of your products).
In addition to this, you can promote products to them and also provide chances to them view and test products before making a purchase decision.
Table of Contents
The Importance of Retailing
1) Sales to Ultimate consumers of the products
In a retail transaction, the goods and services are sold to ultimate or final consumers. The products don’t get resold after this transaction. Goods and services sold at this point can be used for various purposes such as for domestic use, household use or for industrial use.
Hence, at this point manufacturer can interact with his consumers through retailer and know about their views.
2) A convenient form of selling quantity-wise
The meaning of word retail is to break down the goods in small pieces and reselling them. the goods are bought by the retailer in large quantities from the middleman or manufacturer and bulk is divided into small quantities and sold to consumers as per their requirements.
To do this, the retailer can repack goods in various quantities and shapes so that it is convenient for consumers to choose and carry them to their homes.
3) Convenient Place and Location
Retailer stores are generally set up at locations which are convenient for consumers to reach. A retail store can be of various forms such as it could be a small shop, small store, or a multiplex. Goods can be sold through internet and mobile apps as per the convenience of consumers.
Moreover, shopping online is becoming a new trend because of the advancement in technology and courier services. Therefore, more and more companies are taking their business online where customers can view products at the comfort of their home and buy them.
4) The lifestyle of the people are shaped by retailing
Retailing is an integral part of modern society. People highly depend on retail stores to lead a comfortable life. in the past time, goods and service were made available through the process of trading.
But in present times trading is replaced by buying and selling goods which makes retail stores an important part of the society.
5) Retail businesses contribute to the economy
In many countries, the retail business is one of the biggest contributors to the Gross Domestic Product (GDP) and its contribution has increased as compared to past and is also increasing by leap and bounds. Retailing is a driving force of the economy and its ambition is to encourage sustained growth.
6) Retail dominates the supply chain
In a supply chain, goods and services flow from the manufacturer or a service provider to final consumers and when there is a huge number of consumers and they are distributed worldwide then the role of retail stores become much more important. Retailers play the role of a connecting link between a manufacturer and final consumers.
Because of their crucial importance in the supply chain the structure of retail stores has improved gradually over the years. In modern times, retailing is categorized by large multiple chains and not by small scale independent retail stores. The increasing importance and formalization of retailing have made it a powerful part of the supply chain.
Moreover, the comparison of retailers is being made with manufacturers which shows the increasing dominance of retailers in the distribution channel. In addition to this, the annual turnover of a few retailers such as Wal-Mart is much more than the annual turnover of companies.
All these points show that retail is the most dominating part of the whole supply chain.
7) Retail is interdisciplinary
Retailing has developed from a number of interrelated disciplines such as economics, geography, management, economics, and marketing. Economics is useful to manage the finances of a store. the good knowledge of geography is important to make the right choice of location to open a store.
Management plays an important role in managing your staff and inventory and similarly, right marketing helps you to penetrate in the market.
8) Retailers provide maximum employment
At the present time, the retail world employs maximum people. As per an estimation, one in nine of the workforces is employed in the retail industry. Moreover, two third of the total workforce in the retail world is women and more than half employees in retailing are part-time employees, which provides flexibility to workers to adapt to the particular needs of any employer
In the past, the salaries paid to employees were very low. Therefore, people worked on a temporary basis in the retail sector. But as the work conditions and salaries paid in the retail sector are improving more and more people are considering retail jobs as a permanent career.
9) Retailing is an important subject area of study
Because of the importance of retailing more and more emphasis is being paid to the area of retailing. Retailing is a separate subject of studies like management and marketing. researches have been conducted and professionals being hired to make this sector flourish.
In addition to this, academic journals concentrating on retailing are being published worldwide.
10) Retailing offers scope for expansion in other countries
Retail provides a great opportunity to expand in international markets. A retailer who wants to extend their business by selling their goods in other countries opens stores in different countries to increase the number of consumers of their products.
However, it is not easy to expand your business as it requires a lot of paperwork and formalities to be done to be able to get clearance to take your business to other countries.
11) Retailers rule the channel of distribution
Retailers are becoming the rulers of a channel of distribution. In past times, the power was in the hand of suppliers because of a limited number of suppliers in the market. Retailers had no other option than getting goods from the supplier to sell in their stores. But in present times there are many suppliers for a single type of product.
Therefore, a retailer can make a decision for which brand to stock in their stores and consumers buys products stock provided by the retailers. Therefore, retailers play an important role in shaping the demands of consumers.
12) Provides Comfort and facilities for shopping
Shopping has become a pleasant experience because of all the facilities and comfort provided by chain stores, shopping malls, multiplexes, etc. people now don’t think shopping as work but they look forward to it and consider it as a stress releasing and family activity.
The giant retailers provide various facilities such as air conditioning, parking, entertainment, kids play section, lifts, trolleys to carry goods, and food facilities, etc. and retailing through mobile phones ensures doorstep delivery on all orders placed through the website or mobile apps.
13) Provide services to the manufacturer
The retailer is the end part of the supply chain and he is the one who interacts with the customers. therefore, he has the opportunity to know about the views of customers and their likings and disliking. Retailer gathers this information from his customers and shares it with the manufacturer.
This helps the manufacturer to make the required changes in the quality of the product and improve its services to satisfy their customers. Therefore, a retailer plays an important role in helping the manufacturer to increase his revenue generation.
14) Provision of warehousing and storage
Warehousing is a big problem for a manufacturer. A retailer buys goods in advance from the manufacturer and reduces the problems of warehousing and storage for the manufacturer.
In addition to this, the retailer helps in increasing the sales of goods by displaying them nicely in the retail store.
15) Advantage of an expert and specialist
Retailers are experts and have experience in selling products to customers. he has a better understanding of customers and their likes and dislikes because of this regular contact with them. He stores products as per the need of customers and sells them to customers in different sizes and shapes.
In addition to this, with their experience of selling and knowledge about the product they assist customers to choose the right product for them.
16) Creates utilities and value
Retailer increases the value of the product by creating a place, time, and utility in the distribution of goods. Retailers buy products in bulk and break them in small quantities and sell them in small packs. In this way, he creates form utilities.
Goods manufactured in one corner of the world are consumed in other parts of the world. he buys products from manufacturers and sells them in the local market thereby creating place utility.
The retailer buys products in advance and place them in his store and sell them to the consumers whenever the need arises. By creating these three utility value of goods is increased. The retailer makes sure the regular production and consumption of goods.
Retailers are the important link between manufacturers and customers. They are the final point of sales and are invaluable to the entire distribution channel. They, in fact, provide services to both the wholesalers and the consumers.What is the importance of retail management? ›
Retail management saves time and guarantees that customers can easily find their products in-store. A smooth process in place avoids chaos and keeps employees and customers satisfied.What are the most important values in retailing? ›
The four Ps - Product, Price, Place, Promotion - are the basic foundations of a successful retail business.What are the 3 most important things in retailing? ›
Ask anyone who is in retail what the three most important things are and they will invariably trot out the trite words, “position, position, and position”.What are important retailing features? ›
1. Sale to the final consumer – The most important characteristic of retailing is that it involves the sale of the product or service to the final consumer. 2. Various channels – In retailing the goods and services can be sold either in person, through mail, through telephone, through vending machines or the internet.How importance is retailing in our society? ›
Retail plays an important role in our society by providing goods and services to consumers. Retailers are able to offer a wide variety of products and services to their customers, which helps to meet the needs and wants of consumers. Retailers also provide employment opportunities for people in our society.What is the major importance of retail displays? ›
Retail displays are essential in any brick-and-mortar store. Not only do displays disseminate important information about specific brands and products, but they also direct foot traffic and create visual interest to enhance the overall shopping experience.What is most important for success in retail industry? ›
Businesses in the retail industry need to engage their customers on a personal level. There are many avenues available to market your products in a personalized manner. Another aspect of this personal approach to marketing is to persuade your existing customers to recommend your business to their peers.What are three benefits of retailing? ›
- Customer Rapport. Retailer benefits include customer rapport which benefits both you as a buyer and as a seller. ...
- Greater Inventory Options. ...
- Greater Sales Potential. ...
- Less Shipping Drama. ...
- Benefits for Consumers.
There are five keys to success in retail: location; marketing; store layout and appearance; service and assortment, and bundle selling. Let's take a look at how each of these can help you establish a successful retail operation.
A retail sale occurs when a business sells a product or service to an individual consumer for his or her own use. The transaction itself can occur through a number of different sales channels, such as online, in a brick-and-mortar storefront, through direct sales, or direct mail.What is the concept of retailing? ›
retailing, the selling of merchandise and certain services to consumers. It ordinarily involves the selling of individual units or small lots to large numbers of customers by a business set up for that specific purpose.What is retailing explain with example? ›
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit.What is the purpose of Retail design? ›
Benefits of retail design
Retail design can improve your customers' perception of your business and your brand. It should represent your customer base and the message you are trying to get across. For example, if a retail store sells luxury, high-end clothing, the store design should reflect the same message.
- Keep it short and simple. ...
- Be different. ...
- Consider your online presence. ...
- Get creative with your domain name. ...
- Be original. ...
- Find new inspiration.
Why Is Good Display Important. It's great to attract lots of shoppers into your store, but if they don't convert into sales then all your effort is easily wasted. A well executed retail display can help maximise conversions so that browsers become customers.What is effective retailing? ›
Having the right product at the right place at the right time in the right quantity and at the right price is key for running a successful retail business. Process – A business is set of processes that should be carried out effectively to achieve the objectives of the business.How can we improve retailing? ›
- Find your store's peak hours. ...
- Schedule your top sales associates. ...
- Provide effective sales training. ...
- Promote your local brand. ...
- Make loyalty a key part of your retail sales strategy. ...
- Offer free shipping… to your store. ...
- Offer complimentary and paid services.
- Grow Your People Skills. Gain helpful and insightful experience while mastering your 'people skills'! ...
- Flexible Scheduling. ...
- Stay on Your Feet. ...
- A Great Start. ...
Increase revenue. The goal of retail marketing is to get new customers into your business, and retain them for the long run. Whether it's social media, SEO, partnerships, or paid advertising, they are all tactics to drive revenue for your business.
- Benefit #1: Increase Sales Tax Revenue. ...
- Benefit #2: Enhance Quality Of Life. ...
- Benefit #3: Support Local Businesses. ...
- Smart Communities Use Analytical Tools.
- (1) Buying and Assembling: ...
- (2) Warehousing or Storing: ...
- (3) Selling: ...
- (4) Credit Facilities: ...
- (5) Risk Bearing: ...
- (6) Grading and Packing: ...
- (7) Collection and Supply of Market Information: ...
- (8) Helps In Introducing New Products:
Pay Attention to Your Customers
This is extremely important in retail operations: always attend to every customer's needs and give them amazing customer service. Increasing your customer satisfaction even by a little bit can result in loyal customers that keep buying from you constantly.
Consumers benefit from retailing because merchants engage in marketing activities that allow them to explore a diverse selection of products and services. Retailing also plays a role in the formation of a sense of place, time, and ownership. The service given by a merchant also helps to improve the image of a product.What are the 5 always important values? ›
- Honesty. Honesty should be the bedrock of your foundation, as it will define who you are before you even allow others to know more about you. ...
- Fire. ...
- Hard Work. ...
- Confidence. ...
They have to solve problems sensibly from the earliest days of their careers. Obviously, there are many ways to sort and define the five cornerstone values: integrity, accountability, diligence, perseverance, and, discipline.What are the three most important value? ›
- Courage. Courage is about doing what you believe needs to be done — not in the absence of fear but in spite of it. ...
- Kindness. Kindness is about treating others the way you want to be treated. ...
- Patience. ...
- Integrity. ...
- Gratitude / Appreciation. ...
- Forgiveness. ...
- Love. ...
Values help us live with direction and purpose – like a guiding compass. Whatever is going on in our lives, our values can show us a path forward, and help us make better choices. Values are also intimately linked to our sense of self, and they're essential for our mental health.
Our values inform our thoughts, words, and actions.
Our values are important because they help us to grow and develop. They help us to create the future we want to experience. Every individual and every organization is involved in making hundreds of decisions every day.
Personal Values are “broad desirable goals that motivate people's actions and serve as guiding principles in their lives". Examples of personal values include donating to charity or spending time with family. Everyone has values, but each person has a different value set.Is success a value? ›
The Value of Success. Success is relative to the person who has succeeded. It may mean different things to different people, but the way we earn success all requires the same amount of hard work. Success happens when you have achieved what you set out to achieve.What is your value? ›
Your values are the things that you believe are important in the way you live and work. They (should) determine your priorities, and, deep down, they're probably the measures you use to tell if your life is turning out the way you want it to.How do you create value? ›
- They should guide and ground. ...
- They should represent who you are (or want to be) at your best. ...
- They should set you apart. ...
- They should be defined. ...
- They should advance equity, inclusion, and belonging.
- Take Initiative: Be proactive, challenge each other, take risks and adapt.
- Be Passionate: Care about your work and take pride in what you do.
- Have Fun: Create a positive work space and build strong relationships.
- Value Teamwork: Approach problems with a "we over me" mentality.
Simply put, Cultural Values (CVs) are preferences people have for how they navigate life. These values indicate how people prefer to interact, communicate, plan, and complete tasks.What is important to you in your life? ›
Family & Friendship. Our relationships are our foundation. They are truly the things that make our lives richer and more complete. We must prioritize time with friends, family and loved ones to foster our relationships.How do you find your most important value? ›
- Write down your values. Review the list of examples of core values above and write down every value that resonates with you. ...
- Consider the people you most admire. ...
- Consider your experiences. ...
- Categorize values into related groups. ...
- Identify the central theme. ...
- Choose your top core values.