Question

What are retailers? What role do they play in the marketplace? What are the different types of retailers? What disruptors are in this space? How are they transforming the retail experience? What are the pros and cons to this transformation?

Answer 1

Solution:

1.

Retailers are the final elements in the distribution channel of any businesses where they sell the products in small quantities for consumption to the consumers. Retailers are basically involved in B2C selling where they are directly in touch with end consumers.

2.

The role of retailers is to sell the products of the businesses to the end consumers. Retailers are spread out in the geography and help businesses to increase their reach to the end consumer. Retailers play the role of the contact point of the products of a business to the end consumers. Retailers are also the final point in the supply chain of the business where the products are directly sold to the consumers.

3.

There are two major types of retailers,

• Organized retailers:
  These are the big retailers who are organized stores like Walmart and have products of different brands available at a single space.
• Un-organized retailers:
  These retailers are small shops selling the product of a few of the major brands. The variety of products at there retail stores are lesser as compared to organized retailers.

4.

The disruptors in the business of retailers are the Organized retailers and online retailers who are often called as E-tailers. these e-tailers are selling the products online through their websites or mobile applications and bringing the model of retailers on the internet.

5.

These disruptors are transforming the retail business by allowing ease of shopping for the consumers and hence allowing them to save their time spent on shopping at offline stores and hence adding value to their lives by saving them a precious time which consumers can utilize at other valuable activities. The saving os cost of products is another way these e-tailers are adding value to the consumers.

6.

The pros and cons of this transformation are,

• Pros:
  - Ease of shopping
  - Discounted price
  - Virtually infinite choices and variety of brand options
  - Saving on valuable time
• Cons:
  - The absence of physical aesthetics check while buying
  - The product can be different in the perception of the consumer than what he gets on delivery
  - Consumers may find it difficult to find an accountable person in case of fraud or queries

These are the pros and cons of these disruptors.