Dell Retail Business

After having depended largely on direct online marketing since 1990s, Dell’s personal computers (PCs) are now on sale in Wal-Mart stores in the US and Puerto Rico.

The company is also expected to add retail channels for PC sales in India, China, Australia and Japan. A new report by research and advisory firm Gartner states that the success of Dell’s indirect marketing initiative in India may prompt the company to adopt the strategy in other emerging markets.

The move (on which Dell India says it has nothing specific to share at this point) will enable the company to increase its reach beyond major cities and allow it to carve a niche in India’s burgeoning IT market. This makes sense, states the report, because it has long been evident that Dell’s growth in the emerging markets had hit a plateau. India, in particular, has not been responsive to the direct approach because of different cultural and business practices.

Diptarup Chakraborti, principal analyst, global IT research and advisory firm Gartner, told Business Standard: “India is one market where the company has been doing well, but beyond a point you cannot do much through direct marketing. They have to start penetrating deeper into other segments. Besides, India is the only market where sequentially (quarter-on-quarter), the company has been in the fourth or fifth position. But in most other markets, they are within the top three players. Besides, the gap between Dell and the other players is huge in India.” (see box)

Several factors have inhibited Dell India’s growth. Dell in India is a $500-million entity with enterprise sector largely contributing to the revenues. The consumer segment, however, remains largely out of the reach of the company.

One of the reasons is the poor internet penetration in the country, thus making online ordering difficult. Besides, competitors, unlike Dell, sell at retail outlets in more than 200 cities, offering customers the chance to experience and use the products prior to purchasing.

Gartner expects that the expansion of Dell’s partner base will enable the company to make headway in this area.

The company has already roped in experienced professionals to strengthen its indirect marketing initiative. Krishna Kumar from HP has joined Dell’s marketing team, while Pallab Talukdar has been appointed as director enterprise business.

The company is likely to roll out the plan for its channel strategy in a phased manner, starting with large metropolitan areas followed by smaller cities.

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How to Start a Retail Business

Owning your own store is a dream shared by many. Be one of the few that makes it come true with help from this thorough guide.

Editor’s note: This article was excerpted from our Retail Business start-up guide, available from SmallBizBooks.com.

The retail industry provides an exciting way of life for the more than 24 million people who earn their livelihood in this sector of the U.S. economy. Retailers provide the goods and services that you and I need--from food, auto parts, apparel, home furnishings, appliances and electronics to advice, home improvement and skilled labor.

Retailing is one of the fastest-growing segments of the economy. As one of the nation's largest employers, the retail industry provides excellent business opportunities for you. At least one-third of the 500,000 or so new enterprises launched each year are retail operations. The entrepreneurs behind these ventures risk their capital, invest their time and make a living by offering consumers something they need or want.

Most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. The price charged for the goods or services covers the retailer's expenses and includes a profit. Each year, this vital sector of our economy accounts for about 38 percent of our gross national product--more than $3 trillion.

The National Retail Federation says more than 1 million retailing companies operate more than 1.4 million retail establishments in the United States. Most are store retailers, though there are other types of enterprises--such as e-commerce, mail order, automatic-merchandising (vending) machines, direct retailing (door-to-door and home party sales), and service providers.

Types of Retailers

To give you an overview of the competitive marketplace, we'll take a look at the various faces and configurations of selling to the consumer. Keep in mind that all these enterprises began as a simple concept and grew to various proportions through popularity and perseverance. At this point in your exploration, anything is possible for you, too.

• Store retailing. The retail scene in America is a dazzling array of independent shops, department stores, discount and off-price enterprises, convenience stores, membership warehouse clubs, national and regional chains, category-killer stores, conventional supermarkets, and other large-scale enterprises that seem to dominate the retail sector.

Store retailers operate fixed point-of-sale locations designed to attract a high volume of walk-in customers. In general, stores have extensive merchandise displays and use mass-media advertising to attract customers. They typically sell merchandise to the general public for personal or household consumption, but some also serve business and institutional clients. These include establishments such as office supply stores, computer and software stores, building materials dealers, and plumbing and electrical supply stores.

• Specialty retailing. While power retailers like Wal-Mart or Target tend to sell "needs," specialty retailers tend to sell "wants." They focus more on neighborhood convenience, the richness of the shopping experience, and inventory that meets the needs of their target customer on a personalized basis. Small stores show surprising strength and resilience in the face of competition from large-scale retailers and e-commerce outlets. They offer the consumer a warmer atmosphere, and perhaps a broader and deeper selection of merchandise.

Many stores can be owned and operated by one person with minimal assistance. Compared to manufacturing operations, specialty retail outfits are relatively easy to start both financially and operationally. However, a number of failures are due to undercapitalization, poor location and insufficient market analysis.

• Nonstore retailing. When you look at the array of business opportunities in retailing, be sure and include the $123 billion nonstore retailing sector. These businesses are primarily engaged in the retail sale of products through television, electronic shopping, paper and electronic catalogs, door-to-door solicitation, in-home demonstration, portable stalls, vending machines, and mail order. With the exception of vending, these businesses do not ordinarily maintain stock for sale on the premises.

There are many advantages to this type of retailing--one being that buying, maintenance and protection of a large inventory is not necessary as you contract with others to handle these matters. The U.S. Census Bureau says there are more than 44,000 non-store retailers in the United States.

• Mail order. From glossy wish books to basic brochures, catalogs are popular with those who live far from shopping areas, the elderly, those seeking the unusual or obscure, and those who simply hate to shop. With direct mail, sales materials can be sent to thousands of potential customers at one time to either make a sale or generate a sales lead.

Mail order enterprises include general merchandise businesses, companies that sell specialty goods of all kinds, novelty firms, various types of clubs (CDs, DVDs, books) and so on. In most cases, catalogs are sent to consumers in defined niches on a regular basis. You can work out of your home, a warehouse or a brick-and-mortar store. An up-to-date mailing list is the key to direct-mail profits with back-end fulfillment and relational database support. If you think this is the retail area for you, read our extensive how-to on mail orderfor more information.

• The internet. The internet has changed the retail landscape, connecting companies, markets and individual consumers. "The retailer who does not understand the impact of the internet on its store and catalog channels is likely to under invest in the Internet, missing opportunities to capture incremental sales in all channels," according to Ken Cassar, a senior analyst with Jupiter Communications.

Regardless of the type of retail business you want to start, you cannot ignore the Internet. Don't let it discourage you, either. Each type of retailing has strengths and weaknesses, so you decide which approaches you want to use in your business.

• Vending machines. Automatic merchandising--or vending machine retailing--has been a proven business concept for more than a century. Vending Times, the industry's trade magazine, reports that snacks and soda sales alone totaled more than $20 billion in 1999. As with any other sales venture, having the right product in the right place at the right time is key. This business is highly appealing because of the low startup cost, low working capital and low overhead. This is a cash business, with you collecting the money when you replenish supplies.Is retail the right opportunity for you? Weighing several factors will help you answer that question. Personality, motivations, your strengths and weaknesses, money, and experience should be at the top of your checklist.

• Making a good career decision involves both self-assessment and market research. Begin the self-assessment process by examining your skills and identifying what kinds of products or services you can offer. What skills do you most enjoy using? If you are artistic, merchandising a store and designing advertising may appeal to you. Or you may be mechanically inclined, enjoy solving puzzles or helping people. Therefore an auto parts store, business consulting practice or birthing coach business may be for you. By tying your skills to your market's wants and needs, you greatly increase the likelihood that your new business will be successful.

  Personality

  Many people successfully make the transition from being an employee to an employer, but many do not. Do you have what it takes to be in business for yourself? Even if you are suited to be a business owner, is a consumer-focused business for you? Are you better suited to be a wholesaler, distributor or manufacturer? Answer the following five questions honestly. Talk to your spouse, best friend or prospective partner about your answers as a reality check.

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Disney's Retail Business Booms

Bell

The International Licensing Expo is underway in New York City, providing a perfect backdrop for Disney to announce the impressive results from its consumer products division.

Retail sales of licensed Disney merchandise is expected to break records and top $30 billion in global retail sales, up from $27 billion last year, and up from $13 billion just five years before that.

The big source of that impressive growth -- The Disney Princess franchise, which brings together and revives the classic princess characters, and newer brands like blow-out hit High School Musical. And now Disney's expanding on the success of the Princess franchise with a new Fairies franchise, and continuing to grow Pixar brands like "Cars" and "Toy Story." These brands make Disney the world's top licensor, according to the International Licensing Industry Merchandiser's Association.

And while Disney's licensing might first bring to mind the likes of kid-friendly brands Mickey Mouse and Winnie the Pooh, Disney's "tween" businesses are taking off. High School Musical and Hannah Montana brought in some $400 million in 2007 but this year are expected to bring in $2.7 billion this year. With more tween franchises in the works -- the Jonas Brothers' big TV movie, "Camp Rock," launches on June 20 -- this pipeline seems poised for even more growth.

Impressive that even during an economic downturn, this division-- the smallest of Disney's four divisions-- is powering ahead. DIS stock is up today on this news--at the time of this posting.

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RETAIL MADNESS : Why is it here?

First, you need a place to vent or tout your triumphs. We've all been there. First and Third person. Maybe you were the customer that "got served". Maybe you were the sales person dealing with the latest Bigger-Better Idiot. Maybe everything was unexpectedly wonderful. In short tell me about your extreme customer service experiences, both good and bad. If you like the site, tell your friends. If you hear a story that would be appropriate, please refer the persons involved to www.retailmadness.com. Please limit your submissions to those incidents to which you were a witness or participant.

Second, I need data for my book about customer service. It's important that the information be accurate and verifyable to the extent possible. That means at least an approximate time, location, business(es) involved. All names will be changed to protect the guilty, so go ahead and say your piece. If you want to be anonymous, you will be by default. If, on the other hand, you want your name in print, just add something in your post along the lines of "It's okay to print my name and city."

Thanks for your time and contribution... Check back for more unbelievable stories of the good, the bad and the ugly in customer service interaction.

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Microsoft yanks Money off retail shelves

It had become a ritual for Microsoft's consumer unit. Every year it came out with a new version of Microsoft Money and sent new boxes to retail stores.

That tradition is now dead.

Microsoft, via a newsgroup posting from one of its enthusiasts, announced it will no longer update Money each year and, more importantly, it will stop selling the product at retail stores.

It's the latest indication that Microsoft is seeing a shift in the way people, particularly consumers and small businesses, buy their software.

"More and more retail consumers are going online to shop the endless rows of digital shelves," Microsoft said, according to the newsgroup posting, which was noted earlier Friday by ZDNet blogger Mary Jo Foley. "In response to our retail partners' needs, consumer behavior and business efficiencies, Microsoft is focusing distribution efforts for Microsoft Money Plus software online via download and discontinuing traditional box sales of the software at retail."

Money is not the first consumer title to see its fortunes change in recent years. Another perennial shelf space occupant, Microsoft Digital Image Suite, was discontinued altogether last year.

However, Microsoft added in the posting that it is not abandoning packaged software companywide.

"Microsoft does not see shrink wrapped software going away anytime soon and we are always talking to customers about different ways to price and package our software offerings," it said in the posting. "The company is evolving its strategy and product solutions to meet customer demand and optimize business efficiencies."

Indeed, the company has seen very strong sales of the latest version of Office and its OneCare security software is also sold heavily at retail stores. The company just introduced Equipt, which is a subscription service combining the two, but sold as a packaged product at retail.

The company has been eyeing this shift for some time and looking at options like subscriptions, online services, and even advertising-funded software on the PC. After years of weighing the issue, the company went ahead with Microsoft Works SE, an ad-supported free version of its consumer productivity package.

Intuit, another big name in consumer software, has already seen a huge shift to both online sales as well as selling its personal and small business finance programs as online services, rather than packaged software.

The company already gets more money from its TurboTax online service than it does for the packaged product, with more than 10 million people doing their taxes online. The company also has 128,000 small business customers using its online services, according to spokeswoman Heather McLellan.

It has also debuted niche products that are online-only such as a medical account expense manager product.

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Business RI retail market remains optimistic despite hard times

Business, Despite some optimism and efforts from governments worldwide to address the global downturn, the overall economic situation remains marked by uncertainties, as property investors maintain a *wait and see' attitude.

In these tough economic conditions, higher competition and limited fund availability will impact on retailer expansion and put pressure on rental rates.

Data from the first quarter of 2009 shows that the occupancy rate for the rental retail market in Jakarta is 85 percent, a 3 percent decrease from the last quarter. This is due to a number of new retail malls entering the market, with many tenants in various stages of fitting-out.

In strata title retail centers, the take up rate is continuing to fall, a trend since 2006. The occupancy rate for this sector during the first quarter 2009 is around 63 percent.

By and large however, the retail market sector remains resilient, underpinned by Jakarta's huge population and consumer spending.

Whilst a large number of retail projects have been constructed in recent years, the potential for more is still there in particular for well-planned sub regional and community developments that cater to the everyday needs of the communities they serve, within the wider urban sprawl, offering many opportunities for savvy developers.

These developments must provide a hub, a meeting place for the community, provide the right products and services and suit the individual target market needs and aspirations, within a modern, bright, family friendly environment.

However, for any developer to succeed in this current market, they must be willing to meet the retailers' requirements for softer terms and negotiate packages to attract retailers to the development.

The downturn in consumer spending, the tight monetary policies on bank finance and lending is creating cash flow and liquidity issues contributing to effects on retailer expansion strategies. Therefore, a flexible approach to negotiating commercial terms is imperative to close deals.

There are several approaches to flexible terms that will maintain the capital value of the property, yet make it easier for retailers to commit to leasing space.

Despite the demand for softer terms, retailers are now clearer on the type of malls in which they will consider opening branches. More retailers are adopting a wait and see approach to opening new stores based on the success of the mall, its location, the quality of the tenant mix and the management team.

Supply is still expected to remain high for the next two years despite some delays anticipated in construction schedules of several projects, it is estimated that there will be around 290,000 m2 of retail space entering the market in 2009-2010.

However, as some retailers are closing unprofitable shops due to decreasing consumption patterns, and reviewing territories for expansion strategies, this will contribute to the slowdown in absorption.

Recent economic updates indicating positive sentiment, underpinned by a stronger rupiah, have created conducive economic conditions, driving a stronger retail consumption pattern that will support a return to growth by the end of 2010, so that Jakarta's retail property market will back on track.

Whilst retailers are generally wary of committing to any development, given the downturn in consumption, the government can also assist in strategies to improve retail spending within Indonesia and this can be done with tourism incentives, both domestic and international.

Jakarta is one of the best kept secrets in the retail market in Asia. The city has a wonderful array of amazing shopping venues and malls with many international brands offering a range of merchandise at much lower prices than other nearby countries within the region.

A "Shop Jakarta" brand should be developed and marketed internationally using this as a vehicle to promote tourism in other areas of Indonesia other than Bali.

Similar projects have been done in Hong Kong, Singapore and Kuala Lumpur respectively, with great success.

The international future retail trend is away from mega malls to one stop community shopping centers in suburban areas, where ease of shopping, parking, and community lifestyle options are paramount.

People are veering away from large impersonal malls looking for a friendly, green environment with an emphasis on outdoor food and beverage and lifestyle venues.

For Indonesia, especially Jakarta, the trend is still to develop large one stop shopping malls, however, the consumer is becoming more conscious of the lack of green space available in the city, and more pressured by the traffic congestion and pollution and their affect on health.

Savvy developers in the future will provide true green parkland and outdoor spaces within the mall environment to cater to the needs of young educated families, who want to combine shopping with an outdoor activity attraction suited to the whole family.

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Modern Trade

How do you define the term modern trade in the retail environment. supermarkets,hypermarkets do fall in this definition, the question is what are the defining characteristics to classify a shop as modern trade outlet.

In French 'la grande distribution' opposed to traditionnal small retail trade (I do not know if 'modern trade' has a specific meaning or not)

Usually the basic criteria is the size of the outlet:
- Hypermarkets are the biggest (over 2500 m2)
- Supermarkets come second
- Smaller shops come then, but are still part of 'grande distribution' (they might be called supérette in French, mini-markets)

But there is also another criteria, which is the organization of the shop:
- All these cited above are self service, and you pay at the cash counter at the exit of the outlet
- Other type of outlet is the department store, like Harrods in London or Le Printemps in Paris. There, you are attended by sales persons, and you pay in each department. This type of outlets were invented in the 19th century, and I guess they do not belong to 'modern trade'.

Finally, another criteria to classify outlets is the goods they sell. Hypermarkets usually sell everything (food and everything else), Supermarkets may be generalists or specialized (sports, books, etc...), and supérette are normally basically for food

The NEW OXFORD Dictionary
OF ENGLISH

hypermarket
noun chiefly Brit. a very large self-service store with a wide range of goods and a large car park, typically situated outside a town.
ORIGIN 1970s: translation of French hypermarché, from HYPER- beyond, exceeding+ marché ‘marke

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