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In retail, innovation is the name of the game!

A prospective retail establishment must overcome multiple regulatory barriers. 

retail industry

Retail Industry


Retail is the process of selling consumer goods and 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.


A prospective retail establishment must overcome the following hurdles to achieve and maintain a foothold in an existing market:

Regulatory Barriers:

  • Restrictions on real estate purchases, especially as imposed by local governments and against "big-box" chain retailers;
  • Restrictions on foreign investment in retailers, regarding both absolute amount of financing provided and percentage share of voting stock (e.g., common stock) purchased;
  • Unfavorable taxation structures, especially those designed to penalize or keep out "big box" retailers; Absence of developed supply chain and integrated IT management;
  • High competitiveness among existing market participants and resulting low-profit margins, caused in part by:
  • Constant advances in product design resulting in continuous threat of product obsolescence and price declines for existing inventory; and
  • Lack of properly educated and the trained workforce, often including management, caused in part by the loss of Business.
  • Lack of educational infrastructure enabling prospective market entrants to respond to the above challenges.


Types of Products:

  • Food products — typically require cold storage facilities. 
  • Hard goods or durable goods — ("Hardline retailers") — automobiles, appliances, electronics, furniture, sporting goods, lumber, etc., and parts for them. Products that do not quickly wear out and provide utility over time.
  • Soft goods or consumables — clothing, other fabrics, footwear, cosmetics, medicines, and stationery. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them.
  • Arts — Contemporary art galleries, Bookstores, Handicrafts, Musical instruments, Gift shops, and supplies for them.


Types of Retailers by Marketing Strategy:


Department Store


Discount Store


Warehouse Store


Variety Store


Demographic


Mom-And-Pop


Specialty Store


Boutique


General Store


Convenience Store


Hypermarkets

Supermarket




Mall


Specialist


E-tailer


Vending Machine


Other Types of Retail Stores:

Automated Retail Stores 


Big-Box Stores 





Retailers can opt for a format as each provides a different retail mix to its customers based on their customer demographics, lifestyle, and purchase behavior. A suitable arrangement will lend a hand to display products well and entice the target customers to spawn sales.