Question

2. What factors contributed to the growth of power of the Retailers in the channel of distribution? Explain how the reactions of the retailers to the business environment as well as the strategies/actions of the manufacturers contributed to the growth in power of the retailers.

Answer 1

factors contributed to the growth of Retailers & nic Retail business today is one of the quickly growing channels and playing an important role in Emerging Economic growth of country. In recent tones customers are getting more & more attracted towards retail markets. change in encome structure customer tastes and preference, demographic & geographic profile are some of the Key factors that are driving towards growth in retail Business. factors responsible for growth in retail industry are Growth of consumers & growth Now a days, there is a in number of customers, tremendous the middle class. working population - In recent of working population has seen in urban as well as rural times a step areas the graph increase thus

Coro changing their spending habits & income structure It becomes very difficult for working people to spend enough time is shopping at different location Value are for money & Big & organised retail outlets basically deal in volumes & can offer a good range of products at reasonable price thus attrading customers at a very large scale Corporate sector :- corporate sectors have also entered in to the retail business to cater the customers Idemand & provide them better quality products at reasonable price. race to foreign Retailers & Rapid Expansion and the cater the demand of every customes is Catching the interest of foreign retailers Enter the market & provide good quality & services through joint ventures to products oy franchising

Retailers to the business Environment - for servival and growth of a business, the analysis of its Environment (both internal and External) is essential. Business Envieonment consist of business organization itself and a lot of other internal and external factors. These factors are completely integrated with the organization. 1 Retailers and companies respond to a particular situation will determine their tate in the long on they should capitalize en the opportunities and Eliminate or minimize the threats and sisks. Use Also retailers and companies al aware of their strengths. They use these strengths to convent Ever threats into opportunities. Instead they exploit the weakness of Environment & tum threatening situations to their advantage