Apple sells its products through Apple Store  — 372 such stores worldwide. These outlets sold $16 billion in merchandise worldwide. However, employees enjoyed little little of that wealth. Most of its workers are non-engineers and non-executives. They are a part of the service economy. Their package is $25000 a year. The training is minimal. Employees do leave after a few years. The average tenure is two and a half years. Though they are a part of the sales team, Apple does not use the word sales to describe them. They are called specialists.

Dhanajay Datar is the MD of Dubai-based Al Adil Group. The Group has a turnover of dirham 450 million. It proposes to set up 20 new supermarkets. Their existing supermarkets are of 4000, 5000, 8000 and 10,000 sq ft. They sell only Indian products  — be it food, personal care, appliances or utensils. They want to enter markets like Bahrain, Kuwait, qatar and Oman. They have a brand called Peacock under which they sell flour, pulses, spices and dry fruits. They have a factory. They supply products to restaurants and 5-Star hotels. They have opened stores at Abu Dhabi and Sharjah.

These are the days of e-commerce and e-tailing.These companies have to receive payment through the customers. There is facility of COD or cash on delivery. here the courier collects the amount in cash after delivering the ordered item and deposits the money in company account.Another method is to use the electronic payment through the card. This is managed by a payment gateway company. When a customer buys goods from the e-commerce site, the payment gateway company collects his basic details if he wants to pay from his bank account through netbanking.There is a netbanking transaction where the gateway engages the customer’s bank directly.The realised payment is passed on to the e-commecrce site.The payment gateway company keeps around 3.0 per cent as its own commission.Another route is when card payment is used.As in the previous case, the basic details are passed on and verification is handed over to the Big Banks who act as intermediary between the card issuing bank and customers and make the payments on behalf of the issuing bank. Big bank tie up their funds and so they charge 0.2 per cent of the billed amount.Big banks check with Visa/Master network.These networks charge 0.35 per cent of the bill transaction.After the card is verified, card issuing bank debits the customer and pays the payment either to the payment gateway company or the big bank. Issuing bank charges 1.25 per cent as commission.Payment gateway company passes on the proceeds to the e-commece site, retaing aroun 3.0 per cent as commission

The biggest bug bear is the failure rate which is the failure of the process after initiation by the customer, something or the other going wrong.When a transaction fails, the customer should not return to square one. Instead he should find himself at the payments page  with the particulars he had filled in.This reduces the customer’s frustration level, and increases his chances of second try.

Well-known payment gateways companies are CCA Venue, BillDesk and TechProcess.The new companies are Citrus, Zaakpay and PayU.

A customer has to pass through eight separate hops or fresh web pages before the transaction is completed. At each hop, there is a chance of failure.If you reduce the number of hops, it makes an immediate difference. Ideally, it should be one-click payment solution.

The global brands are eBay’s Paypal and Alibaba’s Alipay which is China-based.

McDonald is quintessentially American. According to Dileep Padgaonkar, former editor of the Times of India, it subliminally seeks to profit from the prestige attached to American power and influence and to American values as well. It makes some concessions in a global set up — it uses lamb instead of beef in India and in Muslim countries it uses only halal viands. Being an American symbol, it is targeted in many countries.Eric  Schlosser, an investigative journalist published in 2001 a critique of the fast food industry entitled Fast Food Nation. He reveals that until 1990 McDonald cooked its French fries in beef tallow. Since then the chain has switched to pure vegetable oil. He also pointed out that till 1997, hamburgers were made from the meat of barren cows who were fattened on livestock waste. He also revealed that the flavour, aromas and texture of the fast food had more to do  with chemical engineering than to culinary skills.

Though there are big opportunities for modern retail that combines competitively priced goods and pleasant ambiance, there are challenges which organised retailers face, making it a rocky route. The future retailing is a mix of the factory and the theatre elements a combination of robust structures and customer relationship with behind-the-scene operations. The big retailers tout the factory side and ensure that the store team is motivated to provide customer service. The store-owner manager operating locally in the neighbourhood provides theatre element through customer relationship and execution that gives quality goods at fair prices. Modern retail may take any route — consolidation, regionalization or localization. The big foreign retailers with a large market share operating here is an example of consolidation. In the US markets, some retailers have a regional domination. This model has applicability in India. The local retailers tradionally operating can continue to do business.

Merchandiser : A merchandiser is responsible for planning, selecting and buying the product range according to the customer demand and fashion trends. The existing inventory is reviewed, and new designs are sourced. A merchandiser facilitated product development to keep pace with the fashion trends. A fashion merchandiser has creative bent of mind, good analytical  ability and an awareness of  customers needs. He has to interact with the vendors, finalizes the order, decides about packaging. He has to forecast inventory and monitor performance results.

Visual Merchandiser : He develops the floor plans and the 3 D displays to maximise sales by highlighting product features and benefits. His job is to attract, engage and its self-selection. He facilitates location of merchandise and its self-selection. He uses elements, tools, technology and props in a creative manner. He is creative and innovative in his approach.

Store Operations : Store Operations Manager is the CEO of the store. He has an operations team. Customer service is assured by ensuring timely availability and delivery of goods, their appropriate pricing and packaging and by resolving customer complaints His job is to manage :

• cash
• control of expenditure
• preparation of budget
• adherence to the budget
• maintaining records
• schedules efficient operations.
• complies with the corporate policy and plans.

Retail Marketing : The store brand is promoted to ensure footfalls. The ad message is properly designed and executed.

Supply Chain Management : Its aim is to ensure a fast turn-around time; keep low inventory and do accurate inventory planning.They interact with the vendors about the supply conditions.

Retail HR : There is high attrition rate in retail. HR, therefore, is a challenging task. Every week, one has to find new replacements. There are manpower requirements to satisfy an expanding organisation across geographies. There are issues of retaining the staff and training them. A person must have good people skill.

E-tailing : Online retailing is an upcoming fast developing arm of retailing.

Speciality Formats : There are areas like electronics, automobile and pharma retail which offer large number of brands in one place. They must have good domain knowledge and retail expertise.

Organised retail has huge potential in India.One principal reason is the demographics of India.There is a huge urban population of 377 million (2013). These very people boost the retail sales. There are 100 million working women (2013) in India. Almost 2/3rd of Indian population consists of the youth that is below the age of 35 years. Quick Service Restaurants (QSR), multiplexes and thirst for new experiences are what will define the next generation of retail.

Frauds Related to Credit Cards

1. An employee has several credit cards. A customer makes purchases by cash. The employee pockets this cash, and swipes his own credit card.

2. There are few such transactions and he has a big pool of cash. He invests this cash over his credit card cycle to get returns.

3. The employer has to bear the cost of commission on the credit card payment.

Frauds Related to Discount Sales

1. An employee works at the cash counter. He has discretion to offer Rs 1000 discount on Rs 20000 purchase. Instead he offers just Rs 200 as discount.

2. He makes a bill of Rs 19800 in his hand under the pretext that the computer system is down. The carbon is adjusted in such a way that Rs 19800 does not appear on copies. Later the figure of Rs 1900 is entered on the copy.He pockets the remainder Rs 800.

Frauds Related to Friends

1. The employee works at the check out counter. His friend buys 30 packets of milk.

2. He scans just 20 packets and allows the remaining 10 packets unscanned and thus unbilled.

3. The customer pays for 20 packets though he receives 30 packets. The exit security is not able to detect such fraud.

 

Organised (modern) retail refers to large superstores that sell almost everything. Organised retail in developed countries accounts for 75 -80 per cent of the total retail. Unorganised retail refers to small grocery stores, street hawkers and vendors who dominate the retail business. Organised retail is represented by modern formats such as hypermarkets, superstores, supermarkets and convenience stores. Such formats have now spread to developing world but still the major portion of retail business is handled by family-run neighbourhood shops and open markets. The organised retail has arrived in developing countries in three waves.

First Wave : It is the period of early 1990s to mid-1990s. It covers countries such as South America, East Asia and South Africa.

Second Wave : It covers the period of mid-1990s to late 1990s. It spreads to countries such as Central America and South-East Asia.

Third Wave : This started in late 1990s and continued in early 2000s. The spread is in parts of Africa, China, India, Russia etc.

Size of India’s Retail Sector  $450 billion

Expected Investment in modern retail in India over the next five years  $35 billion

Investment expected from foreign retailers in India over the next five years  Rs 70,000 crore

Investment required in agricultural infrastructure over the next five years Rs 64,312 crore

Some of the negative shopping experiences or retailing pitfalls put off the customers.

• Trolley Troubles There are no trolleys available for the customer at the entry level. Or the trolleys are defective.
• Crowded Aisles The aisles are blocked by the merchandise waiting to be put on the shelves.
• Unclean Surroundings The floors may have waste littered. They may be dirty or stained.
• Music Loud music or FM is played. Music should be customised to customer profile.
• Poor Light Poorly lit stores are unwelcoming. There should be consideration for the senior shoppers and poor eye sight customers.
• Smell A store should give good olfactory experience. There should not be smell of the employees lunch boxes drifting across the stores.
• Signage The signs should not be hand-written.
• Check-out In order to save the manpower costs and energy overheads, there should not be long queues of the customers at the check out counters.