In this essay we will discuss about Retail Trade. Find paragraphs, long and short essays on ‘Retail Trade’ especially written for school and college students.
Essay on Retail Trade
Essay Contents:
- Essay on the Meaning and Characteristics of Retail Trade
- Essay on the Essential Elements of a Successful Retail Trade
- Essay on the Different Types of Retailers
- Essay on the Functions of a Retailer
- Essay on the Services Rendered by Retailers
Essay # 1. Meaning and Characteristics of Retail Trade:
According to K.L. Govil, retail trade is viewed as one that cuts off small portions from larger lumps of goods. The retail trade is the opposite of wholesale trade. The word ‘retailer’ originates from the French word ‘re tailler’ which means ‘to cut’. The retailer is the last link in the chain of distribution commencing with the consumer.
The basic characteristics of a retail trade are:
(i) It consists of outlets as shops from whom the consumers ultimately buy;
(ii) It involves selling final consumer products to the households; and
(iii) It is the selling of goods in small quantities to the ultimate consumers.
A retail trade, being closely associated with the consumers, occupies a strategic position in the whole system of distribution. The services to the consumers in particular and to the society in general are the essence in a retail trade.
Essay # 2. Essential Elements of a Successful Retail Trade:
In order to succeed in the retail trade, a retailer of any type has to consider three basic elements such as:
(i) The number of customers or consumers a retailer can attract;
(ii) The quality of goods a retailer sells; and
(iii) The profit margin a retailer earns.
Apart from the above, a retail trader should look into the following aspects for achieving success in its business:
1. Selection of goods that are proper-in order to meet the requirements of the easterners whose habits and tastes change from time to time.
2. Adequate knowledge about the products in order to answer customers’ queries and satisfy them for promotion of sales.
3. Attractive display and arrangement of various goods in a way that would draw more and more number of customers.
4. Selection of suitable business places or locations where the customers can have easy access. Depending on the nature and kind of goods, business centers have to be selected. This is because more sophisticated and costly products can be sold in posh colonies of areas, inhabited by affluent people.
5. Providing a great deal of personal services like home delivery, credit facilities, after-sales service, exchange of goods, etc. to the consumers.
Essay # 3. Different Types of Retailers:
There are various forms of retail trade organisations. Such organisations or units range from hawkers and dealers (who have no permanent place of business) to well-settled shops like chain-stores, co-operative stores, etc.
On the basis of their place of business, retail trade businesses are of two categories:
(i) Mobile retail traders, and
(ii) Fixed shop retailers.
The following chart shows these two categories with their subdivisions:
Essay # 4. Functions of a Retailer:
In the field of marketing of products, the retailers perform the following, important functions:
1. Collection and assembling of products from different wholesalers.
2. Selling of products of different brands or models to the requirements of the consumers.
3. Upkeep of shops so as to provide ready availability of products of various qualities and of various manufacturers.
4. Estimation of the consumers demand for various products and market information feedback to the wholesalers.
5. Assumption of risk concerning price, loss by fire or theft or deterioration as long as the goods are not sold away.
6. Extension of short-period credits to the genuine consumers.
7. Standardisation, grading and processing of goods which have not been so done by the wholesalers.
Essay # 5. Services Rendered by the Retailers:
(1) Services to the consumers:
The following nature of services ones under this group:
(i) Keeping ready stock of different products needed for every-day use by the consumers. This relieves the consumers from holding stocks for themselves.
(ii) Keeping a good assortment of various qualities and varieties of products under different brands. This helps the consumers to make choices of their own.
(iii) Offering free advices about the merits and demerits of the various products to the consumers.
(iv) Providing a great deal of personal services like home delivery, credit facilities, after-sales service, exchange of goods, etc. to the consumers.
(v) Bringing to the knowledge of the consumers about new products/ varieties and new applications or uses of the products.
(2) Services to the wholesalers/manufacturers:
The retailers are the links between the wholesalers or manufacturers and the consumers. They collect the market information about the trends, fashions, tastes, etc. of the consumers and pass on these facts to the wholesalers or manufacturers.
Last but not the least, a retail trader should know the sources where from he should buy his goods so that he can satisfy his customers in the natter of quantity, quality and price of merchandise. He should address himself to the pertinent questions like what to buy, where to buy, from whom to buy, and at what price to buy.
This art of buying for better quality product at a competitive price should always be practiced by a retail trader. This would help him in meeting the consumers’ demand and satisfaction, in drawing the consumers’ attention constantly and in assuring the margin.