Modern Trends in Retailing

 It is a retailing which sends goods or stuffs in an easy and the fastest way to the customers. Therefore it’ll help the customers to save time


 There are four types under the modern trends in retailing

1. Mail Order Business

2. Internet shopping

3. Vending Machines



Mail Order Business

(taken from
http://www.facebook.com/home.php?#!/profile.php?id=100001456197476)

 Mail Order companies do not have retail shops and they deal directly and sends consumers’ goods through the postal services.

 The goods ordered are mainly from

o Catalogues

o Newspapers advertisements

o Part -time agents

o Internet

 People can become mail order agents by either applying directly to the companies or filling a form

 Part – time agents will approach friends or workmates and ask them if they are interested in buying the goods or joining the company

 Then the customers will let the agents know the exact goods they want, style, size, colours and so on

 Payments are can be made by instalments, cash with order (C.W.O) or cash on delivery (C.O.D)

 The agent will be paid commission on the goods they ordered and the agent is responsible for checking the goods ordered so it’ll be correct and satisfactory

 Example of goods sold: bag, costume, t-shirt, jewellery, books, shoes, etc

Advantages

To the producer:-

1. The mail order business buys on very favourable terms because it buy in bulk directly from the manufacturer

2. The premises can be sited in the less expensive areas of the country or town where wages and rentals are lower

3. There is no need to employ qualified sales stuff. Only unskilled cheap labour is needed like housewives

4. The business can tap a wide market via advertising and agents


To the customers:-
1. Customers can buy on credit

2. Customers may return unwanted goods easily



Disadvantages

To the producer:-

1. The high cost of catalogues and advertising

2. There are high operational expenses in the form of commissions to agents and costs of packaging and postage

3. There is the need to hold large stocks with the risk of losses from changes in taste and fashion or from falling price

4. There is the risk of bad debts

5. Lack of personal contract



To the customers:-
1. Customers can’t examine the goods before payment if it is by C.O.D or C.W.O

2. Customers may be cheated by unethical operators

3. Goods may be bought cheaper direct from the shops

4. Sometimes, there may be a delay in the delivery of the goods




Internet shopping

 The customer can order the goods directly from the retailer whom may be in any part of the world through the used of an internet or email

 The retailers can develop their own websites to advertise their products to potential customers

 Payment can be made by the use of credit or debit card or cash transfer


Advantages
 
- The shop can be opened 24 hours a day to the customers all over the world


- It is not very expensive to set up. Only a personal computer and a modem are required

- It is convenient, time and cost saving because sending the order through email will cost the same to any part of the world - Customer can’t see or check the product

- It allow quick exchange of information and feedback from customers
- Small business can compete as effectively as the larger ones

- Since all information is processes electronically, therefore there will less room for mistakes


Disadvantages

- Customers may be cheated by unethical operators

- There is likely no after sales service

- Someone may have intercepting the credit card number


Vending Machines

 A vending machines is a machine set up to provide goods for the consumers and it’s operated for 24 hours per day

 Vending Machines are located at convenient place where many potential customers gather such as at the shops, office, hospitals, park and so on

 They can be used to sell a great variety of goods like chocolate, soft drinks, pre-paid cards and so on

Advantages

- The machines can be operated 24 hours a day


- Both the machines and product are relatively portable

- No limit to what is sold by vending machines

Disadvantages

- Cost of maintenance is high


- Risk of been stolen

- Vandalism