Ration another angle to see retail-for India two even three.

A public distribution shop also known as Fair Price Shop (FPS), part of India's Public Distribution System established by Government of India, is a kind of shop in India which is used to distribute rations at a subsidized price to the poor. As of date there are about 4.99 lakh Fair Price Shops (FPS) across India.

Locally these are known as "ration shop" and chiefly sell wheat, rice, kerosene and sugar at a price lower than the market price. However, other essential commodities may also be sold. These are also called Fair Price Shops.For buying items from this shop one must have a ration card. These shops are operated throughout the country by joint assistance of central and state government. No doubt the item from these shops are much cheaper but are of poor quality. Ration shops are now present in most localities, villages towns and cities. India has 478,000 shops constituting the largest distribution network in the world.

The introduction of rationing in India dates back to the 1940s Bengal famine.this rationing system was revived in the wake of acute food shortage during the early 1960s, prior to the Green Revolution.

NEW GUIDELINES for FDI in retail trade of `single brand' products .

GUIDELINES for FDI in retail trade of `single brand' products are out from the Department of Industrial Policy & Promotion (DIPP), the Ministry of Commerce & Industry. Three conditions have been laid down. One, products to be sold should be of a `single brand' only. Two, products should be sold under the same brand internationally. And three, `single brand' product-retailing would cover only products which are branded during manufacturing. 

What is singularly visible is `single brand' right from the application stage, the starting point."The application would specifically indicate the product/product categories which are proposed to be sold under a `single brand'. Any addition to the product/ product categories to be sold under `single brand' would require a fresh approval of the Government". The latter clause introduces the much-dreaded `approval' system, while at the same time offering an apparent leeway to add more products as a sequel to `single brand'. 

But what is single brand retailing? Examples cited were of Sony and Nokia, when the Union Cabinet had given its nod to FDI in retail. Brands can be classified in many ways. Such as, product and service, single and multiple, best seller and unknown, foreign and local, and so forth. There are also the loved and unloved. Among the brands most `loved' by the visitors are Absolut, Apple, Coca-Cola, Audi etc.

"There are two main types of brand — manufacturer brands and own-label brands," "Manufacturer brands are created by producers and bear their chosen brand name. The producer is responsible for marketing the brand. The brand is owned by the producer." 

These are what the new FDI guidelines cover, when insisting that `single brand' product-retailing would cover only products which are branded during manufacturing. The other type, own-label brands, are created and owned by businesses that operate in the distribution channel — often referred to as `distributors'. Common examples are of departmental stores selling grocery under own labels, though the items might have been sourced from suppliers in bulk. 

With the emphasis of the new retail FDI regime on manufacturing, are own-labels out? The answer isn't yet clear, say experts, especially with regard to `store brands' or `private labels' branded during the manufacturing process. Presumably, the Government is averse to the idea of accommodating non-manufacturers in its new FDI policy. Which only means that any foreign investment flowing into retail may not directly benefit suppliers of locally-produced labeled goods. 

Let us not forget that global retail majors such as Wal-Mart, Gap, JC Penney, Ikea and Tesco source heavily from developing countries. 

"Wal-Mart's food exports from India could soon exceed those of its textiles procurement, which for the time being represent 65 per cent of the $1.5 billion worth of goods that the company sourced last year," informs the 4th edition of the PricewaterhouseCoopers From Beijing to Budapest: Winning Brands, Winning Formats 2005-2006. 

One learns that in China, Wal-Mart exports about $18 billion worth of goods a year, and the sourcing from the Dragon Land multiplied by five when it was permitted to set up retail operations in the country.

"The company sources 85 per cent of merchandise for its Chinese retail operations locally through domestic suppliers or global suppliers manufacturing locally. Metro also sources $1 billion worth of goods from China," informs PwC's report. 

Also remote is the possibility of a large format retailer turning into a manufacturer for all the items that are put on the shelves, because of diseconomies of smaller scale "International experience has shown that the entry of organised retailers who invest in the supply chain of developing economies has always paid off for the local population. When international retailers and wholesalers do come to India, their first job will be to determine which format they will employ," he said. Wonder if the new format that comes with a jingle called `single brand' will find audience among the global retail giants. 

Organised retail in India to triple by 2010: CRISIL

According to a study conducted by CRISIL Research and Information Services, the organised retail industry in India is expected to grow 25-30 per cent annually and would triple in size from Rs35,000 crore in 2004-05 to Rs109,000 crore ($24 billion) by 2010-11. However CRISIL has cautioned that organised retail sector will slow down to single digit growth after five or six years unless the industry brings in an innovative ''India specific'' approach through expansion of the network.

Narasimham, head of research at CRIS INFAC said for organised retail to grow to such proportions an investment of approximately Rs3,100 crore per year was required in the country. He said the food and grocery were the fastest-growing segments in the country, with revenues expected to grow by five times over the next five years.

The slow down in sales' volume after five years would result mainly from saturation of demand in major metros, currently witnessing an annual growth rate of 25-30 per cent due to surplus income of the young generation.

Ajay Dwivedi CEO CRIS said metros and mini-metros offer maximum scope for growth with six times more in sales volume, as compared to tier-II cities, he said. Hence, it is not necessary to expand the hypermarket super mall to mini-metros and tier-II cities in the immediate future, he said.

Narsimhan said FDI in retail was necessary to sustain the investment-linked growth but felt that the approval of FDI from the authorities would come by the end of 2006 as in the meantime this would allow domestic players to improve their position in terms of business expansion and financial growth, he said.

Though food and grocery stores account for the largest share of retail spent by the consumer at about 76 per cent, and nearly 99 per cent of this market is in the unorganised sector. But according to him this may change in the next few years as it is estimated that food and grocery revenue in the organised retailing market would multiply five times, taking the organised shares of the market to 30 per cent.

The Retailing- Meaning & Defination Refreshed

Retailing consists of the sale of goods or merchandise for personal or household consumption either from a fixed location such as a department store or kiosk, or from a fixed location and related subordinated services. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells individual items or small quantities to the general public or end-user customers, usually in a shop, also called a store. Retailers are at the end of the supply chain. Marketers see retailing as part of their overall distribution strategy.

Shops may be on residential streets, or in shopping streets with few or no houses, or in a shopping center. Shopping streets may or may not be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, also known as e-commerce is the latest form of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Retail pricing

The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailers cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.

In Western countries, retail prices are often so-called psychological prices or odd prices: a little less than a round number, e.g. $6.95. In Chinese societies, prices are generally either a round number or sometimes a lucky number. This creates price points.

Often prices are fixed and displayed on signs or labels. Alternatively, there can be price discrimination for a variety of reasons. Unorganized retailer charges higher prices to some customers and lower prices to others. For example, a customer may have to pay more if the seller determines that he or she is willing to. The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Price discrimination can lead to a bargaining situation often called haggling — a negotiation about the price. 

Economists see this as determining how the transaction's total surplus will be divided into consumer and producer surplus. Neither party has a clear advantage, because the threat of no sale exists, whence the surplus vanishes for both.

Retailers who are overstocked, or need to raise cash to renew stocks may resort to "Sales", where prices are "marked down", often by advertised percentages - "50% off" for example."Sales" are often held at fixed times of the year, for example end-of-season sales.

Retail comes from the French word retaillier which refers to "cutting off , clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively) also refer to sale of small quantities or items.

Retail types

There are three major types of retailing. The first is the market, a physical location where buyers and sellers converge. Usually this is done on town squares, sidewalks or designated streets and may involve the construction of temporary structures (market stalls). The second form is shop or store trading. Some shops use counter-service, where goods are out of reach of buyers, and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. Self-service, where goods may be handled and examined prior to purchase, has become more common since the Twentieth Century. A third form of retail is virtual retail, where products are ordered via mail, telephone or online without having been examined physically but instead in a catalog, on television or on a website. Sometimes this kind of retailing replicates existing retail types such as online shops or virtual marketplaces such as eBay.

Buildings for retail have changed considerably over time. Market halls were constructed in the middle ages, which were essentially just covered marketplaces. The first shops in the modern sense used to deal with just one type of article, and usually adjoined the producer (baker, tailor, and cobbler). In the nineteenth century, in France, arcades were invented, which were a street of several different shops, roofed over. From this there soon developed, still in France, the notion of a large store of one ownership with many counters, each dealing with a different kind of article was invented; it was called a department store. One of the novelties of the department store was the introduction of fixed prices, making haggling unnecessary and browsing more enjoyable. This is commonly considered the birth of consumerism. In cities, these were multi-story buildings which pioneered the escalator.

In the 1920's the first supermarket opened in the United States, heralding in a new era of retail: self-service. Around the same time the first shopping mall was constructed which incorporated elements from both the arcade and the department store. A mall consists of several department stores linked by arcades (many of whose shops are owned by the same firm under different names). The design was perfected by the Austrian architect Victor Gruen. All the stores rent their space from the mall owner. By mid-century, most of these were being developed as single enclosed, climate-controlled, projects in suburban areas. The mall has had a considerable impact on the retail structure and urban development in the United States. 

In addition to the enclosed malls, there are also strip malls which are 'outside' malls (in Britain they are called retail parks. These are often connected to supermarkets or big box stores. Also, in high traffic areas, other businesses may lease space from the supermarket or big box store to sell their goods or services from. A recent development is a very large shop called a superstore. These are sometimes located as stand-alone outlets, but more commonly are part of a strip mall or retail park.

Local shops can be known as brick and mortar stores in the United States. Many shops are part of a chain: a number of similar shops with the same name selling the same products in different locations. The shops may be owned by one company, or there may be a franchising company that has franchising agreements with the shop owners.

Some shops sell second-hand goods. Often the public can also sell goods to such shops, sometimes called 'pawn' shops. In other cases, especially in the case of a nonprofit shop, the public donates goods to the shop to be sold. In give-away shops goods can be taken for free.

There are also 'consignment' shops, which is where a person can place an item in a store, and if it sells the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop give the item exposure to more potential buyers.

The term retailer is also applied where a service provider services the needs of a large number of individuals, such as with telephone or electric power.

Some common and uncommon jargon used in Retail

Average Inventory Cost

Average inventory cost is found by adding the beginning cost inventory for each month plus the ending cost inventory for the last month in the period. If calculating for a season, divide by 7. If calculating for a year, divide by 13.

Big Box Stores

Large stand-alone store with varying market niches.

Booking Program

A vendor booking program is the opportunity to view new products or samples now and to place an order for that merchandise to be delivered at a later date.

Break-Even Point

What is the break-even point? The point in business where the sales equal the expenses. There is no profit and no loss.

Brick and Mortar

Brick and mortar store refers to retail shops that are located in a building as opposed to an online shopping destination, door-to-door sales, kiosk or other similar site not housed within a structure.

Business Plan

A detailed document describing the past, present and future financial and operational objectives of a company.

Cash Discount

A percentage reduction in price for payment within a specified period of time.

Cash Flow

The movement of money in and out of a business and the resulting availability of cash.

Category Killer

A large retail chain store that is dominant in its product category. This type of store generally offers an extensive selection of merchandise at prices so low smaller stores cannot compete.

Chain Store

One of a number of retail stores under the same ownership and dealing in the same merchandise.

Cost of Goods Sold

The price paid for the product, plus any additional costs necessary to get the merchandise into inventory and ready for sale, including shipping and handling.

CRM - Customer Relationship Management

Customer Relationship Management (CRM) is a business strategy designed to reduce costs and increase profitability by strengthening customer loyalty.

FOB 

Shipping term used to indicate who is responsible for paying transportation charges.

Gross Margin Return On Investment

A measure of inventory productivity that expresses the relationship between your total sales, the gross profit margin you earn on those sales, and the number of dollars you invest in inventory.

Gross Margin

Gross margin is the difference between what an item cost and for what it sells.

Inventory Turnover

The number of times during a given period that the average inventory on hand is sold and replaced.

Keystone

Keystone pricing is a method of marking merchandise for resell to an amount that is double the wholesale price.

Layaway

Layaway is the act of taking a deposit to store merchandise for a customer to purchase at a later date.

Loss Leader

Merchandise sold below cost by a retailer in an effort to attract new customers or stimulate other profitable sales.

Loss Prevention

Loss prevention is the act of reducing the amount of theft and shrinkage within a business.

Margin

The amount of gross profit made when an item is sold.

Markdown

Planned reduction in the selling price of an item, usually to take effect either within a certain number of days after seasonal merchandise is received or at a specific date.

Marketing Calendar

A marketing calendar is a tool used by retailers to show what marketing events, media campaigns and merchandising efforts are happening when and where, as well as the results.

Markup

A percentage added to the cost to get the retail selling price.

Merchandise Mix

A merchandise mix is the breadth and depth of the products carried by retailers. Also known as product assortment.

Minimum Advertised Price

A suppliers pricing policy that does not permit its resellers to advertise prices below some specified amount. It can include the resellers retail price as well.

Odd-Even Pricing

A form of psychological pricing that suggests buyers are more sensitive to certain ending digits.

Open-to-Buy

Merchandise budgeted for purchase during a certain time period that has not yet been ordered.

Operating Expenses

The sum of all expenses associated with the normal course of running a business.

Planogram

Visual description, diagram or drawing of a store's layout to include placement of particular products and product categories.

POS

Point of Sale (POS) refers to the area of a store where customers can pay for their purchases. The term is normally used to describe systems that record financial transactions. This could be an electric cash register or an integrated computer system which records the data that comprises a business transaction for the sale of goods or services.

Private Label

Products which are generally manufactured or provided by one company under another company's brand.

Product Breadth

The product breadth is the variety of product lines offered by a retailer.

Product Depth

Product depth is the number of each item or particular style of a product on the shelves. Product depth is also known as product assortment or merchandise depth.

Product Life Cycle

The stages that a new product is belived to go through from the beginning to the end: Introduction, Growth, Maturity and Decline.

Profit Margin

A ratio of profitability calculated as earnings divided by revenues. It measures how much out of every dollar of sales a retail business actually keeps in earnings.

Purchase Order

A purchase order (PO)is a written sales contract between buyer and seller detailing the exact merchandise or services to be rendered from a single vendor.

Quantity Discount

A reduction in price based on the amount purchased. May be offered in addition to any trade discount.

Run of Paper

Run of paper is an advertising term by newspapers referring to an advertisement that may be placed anywhere within the paper.

Shoplifting

Shoplifting is the theft of property which is worth less than $500 and which occurs with the intent to deprive the owner of that piece of property. The crime of shoplifting is the taking of merchandise offered for sale without paying.

Shrinkage

Retail shrinkage is a reduction or loss in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud.

SKU

The Stock Keeping Unit (SKU) is a number assigned to a product by a retail store to identify the price, product options and manufacturer.

Trade Credit

An open account with suppliers of goods and services.

Trade Discount

A discount on the list price given by a manufacturer or wholesaler to a retailer.

Visual Merchandising

Visual merchandising is the art of implementing effective design ideas to increase store traffic and sales volume.