Discuss about thr Retail Management for Organic and Online Groceries.
Hong Kong reflects increased autonomy in the People’s Republic of China. The region is significantly populated by people originating from China while people also originating from Indonesia and Filipino are also observed to constitute the Chinese society. Moreover, the existence of a free market economy in Hong Kong potentially attracts international business institutions pertaining to different sectors to set up their business presence in the region. During 2015, the GDP of Hong Kong estimated to around $414.6 billion (CIA, 2016).
Large numbers of shopping centres are available around different regions of Australia. Melbourne operates as the prime destination hosting around 20 different shopping centres located along different areas. An estimate carried during 2015 reflects that around 85 percent of the shopping population above 14 years amounting to around 16.5 million visited the shopping centres on an average monthly basis. The following illustration reflects the number of Australian shoppers that had visited the shopping centres on average monthly basis.
(Roy Morgan , 2015)
The following illustration also reflects the different factors like searching for label brands, discounts, large product assortments to make choices and the fashion mindedness that attracts large numbers of customers to the different shopping centres.
(Roy Morgan , 2015)
The supermarkets in Australia act as grocery retailers that focus on cutting down the prices of its merchandises to help the customers enjoy the benefits of low-priced shopping. Customers procure fresh and quality products at reduced prices from the supermarkets. The supermarkets focusing on selling cheaper products are observed to suffer from lack of differentiation owing to cutting down its product assortments and varieties (Peled, 2015). In recent times, the government authorities in Australia have decided to encourage the retailers in selling liquors and wines along the store aisles (Brook, 2015).
The convenience stores in Australia located throughout the Australian towns are observed to be increasingly attached to the different gas stations. Further, the prices of the merchandises sold at the Australian convenience stores are also evaluated to be quite expensive compared to the products sold at the Australian supermarkets. The prices of the products sold at different convenience stores also tend to differ from store to store and from one region to another. The convenience stores based in Australia tend to sell different types of products ranging from candies, drinks, ice creams, newspapers, detergents, toilet papers, toothpastes and other types of products needed for daily needs of the consumers (Suganuma, 2016).
Online retailing activity in Australia tends to value around $22.1 billion and is observed to generate a growth of around 7 percent on a year-to-year basis. Online retailers based in Australia are observed to sell different types of products ranging from grocery to fashion and also jewellery, toiletries and other types of cosmetic items. Further, books and magazines, liquor products, appliances and footwear are also observed to be retailed in an online fashion to consumers (Smart Company , 2015).
The shopping mall culture is largely prevalent in Hong Kong where the existence of large numbers of shopping malls and arcades tend to attract potential numbers of customers and tourists. The shopping centres based in Hong Kong reflect the retail heritage of the region. The shopping malls located in Hong Kong Island helps customers to meet their day-to-day needs, label and branded products and also premium fashion brands. The shopping centres based in Kowloon attract night customers and potential tourists. Shopping centres located in Outlying Islands attracts customers interested in buying international brands, jewellery, fashion and other skin-care and audio-visual products (Hong Kong Tourism Board, 2016).
The supermarkets based in Hong Kong are observed to sell different types of grocery merchandises and other fresh fruits and vegetables. The supermarkets also cater for the consumer demand regarding ready-to-eat products and also other types of organic products. Similarly, Hong Kong supermarkets also focus on selling live and wet products like fresh fish, meat and other types of sea foods to consumers (Batt, 2012). The supermarkets based in Hong Kong have not earned the license for selling of liquors. Only licensed retailers regulated by Food and Environmental Hygiene Department are allowed to sell liquors (Winn, 2015).
The convenience stores in Hong Kong are observed to be available in different accessible regions along the diverse cities. Customers tend to purchase their day-to-day food and other types of products and ingredients in a freshly picked fashion (Hong Kong Trade Development Council., 2016). The convenience stores based in Hong Kong offer needed convenience to customers on being available 24 hours each day. Apart from selling freshly picked and ready-to-eat food products, the convenience stores of Hong Kong also sell other products like toys, newspapers and magazines, alcoholic products and toiletries (Hong Kong Travel Guide, n.d.).
The online retailing activity is observed to gain needed impetus in Hong Kong. Customers tend to use different types of devices like computers, Smartphones and tablets for marketing along the online sphere. A Nielsen report reflects that around 85 percent of the consumers use computers for conducting electronic shopping followed by 41 and 27 percent consumers using Smartphones and tablets for conducting online purchases. The same is reflected in the following illustration.
(The Nielsen Company, 2016)
The report also reflects that 52 percent of the consumers have purchased clothing and fashion merchandises online followed by 41 and 39 percent of consumers using the e-commerce medium for making online reservations for airlines and hotel and booking of restaurant coupons in a respective fashion. The same is reflected in the below illustration.
(The Nielsen Company, 2016)
Conclusions
The above analysis essentially reflects some potential differences relating to the manner retailing activities are conducted in two different global regions like Australia and Hong Kong.
The emergence of intense competition with also the increased demand by customers for lowering the prices of the merchandises sold by the retail outlets have increasingly contributed to the development of new retail formats. The growth of intense competition has triggered the growth of mergers and acquisitions of retail institutions and also downsizing of retail units to form newer and smaller retail formats. The incorporation of the above strategies potentially helps the retail institutions in effectively penetrating a larger consumer market (Mincon, 2012). Retailers operating during the competitive periods increasingly focus on the incorporation of cost containment approach such that the same helps in the generation of needed value while designing retail stores and formats. The standardisation of the retail formats along with the store layouts and size and also the focus on the development of smaller store formats has contributed to the development of department and discount store formats (Mincon, 2012).
The evolution of retail store formats like discount and department stores can also be effectively analysed based on the concept of ‘Wheel of Retailing’. The concept of ‘Wheel of Retailing’ reflects that new retail institutions focus on entering the marketplace based on the incorporation of innovative cost reduction measures. Subsequently however the retail institutions focus on incorporating newer products and expanding their market base thereby becoming expensive (Pride, 2008).
At present the discount formats of retail stores and other standalone discount retailers are limited in number. However, owing to the continual demand of the consumers for cheap and cost-effective merchandises the demand for discount formats reflects needed growth in the coming period. The above fact reflects that discount stores happen to belong to the growth stage of the retail life cycle (Berkhout, 2015). The Wheel of Retailing concept reflects that the discount stores emerged owing to the expensive nature of services generated by the department stores. The discount stores emerged as a novel concept generating greater services and quality merchandises at higher prices. They also enhanced their presence through expanding across different regions (Pride, 2008).
The department stores owe its origin to the department store developed by Harding, Howell and Company during 1796. The store was divided along four main departments. Selfridges earn prominence as a Department Store during the 20th Century that reflected to be an effective shopping destination for customers. The current department stores generate large number of options regarding different product categories to retail customers and counters threat from growth of online retailing and shopping malls (BBC Culture , 2015).
The retail life cycle analysis of the department stores based along the European countries like the different types of food and non-food retailers reflects that the department stores are in the maturity stage of the retail life cycle (SUN, 2002). Based on the concept of Wheel of Retailing, the case of Sears reflect that the department store initiated its business as a low-cost and high-volume retailer that competed with other smaller retail institutions and general traders (Pride, 2008).
Discount stores essentially operate like Specialty Stores and thereby focus on the generation of products relating to specific assortments like toys, furniture and home furnishings. Similarly, the discount stores also focus on the selling of jewellery, sports merchandises and apparels and appliances at reduced prices (Berkhout, 2015).
The department stores focus on retailing different types of merchandises ranging from clothing and apparels, fashion, general merchandise categories, books, footwear and also electronic appliances. Other product categories also include cosmetic and self care products and grocery and food items (Winn, 2015).
Discount stores like Aldi and Lidl are observed to incorporate different types of strategies like special deals and ‘unbeatable prices’ for appealing to larger number of customers (Berkhout, 2015).
The Department Stores focus on the generation of effective promotions and rebates for marketing the different merchandise categories to the customers (BBC Culture , 2015).
The future of retailing reflects on the development of applications like ‘Instant Purchasing’ that can be used by retailers for encouraging customers to procure merchandises just clicking on them while seeing a movie. Subscription enabled purchasing models also reflect future retail developments wherein customers can generate effective subscriptions and thereby procure different types of merchandises within a specified period without the need for generating additional amounts (Rienartz, 2016).
The discount stores reflect differences in that the stores essentially focus on the sales of speciality product categories like fashion items, furniture, jewellery and appliances at reduced costs (Pride, 2008).
The department stores earn its specialty in that the stores focus on selling diverse merchandises based along different departments. The generation of specific retail departments contributes in generating focused offers and price discounts and also planning for product merchandises in a differentiated fashion. It thus contributes in addressing the variegated needs of the customers (Winn, 2015).
Five different types of emerging retail formats are identified. Van retailing is emerging as an effective concept where the retail institutions focus on the use of vans for retailing products to a larger consumer market in a region. Venue retailing services can also be developed for retailing specific products like jewellery, cosmetics and other types of household items. It requires the retail firms to plan different types of events. Distant retailing is observed to be a specific type of retail service that is undertaken by retailers like Walmart through the use of different types of gadgets like mobile phones, pagers and telephones. Forecourt Retailing is also identified as a new retailing concept through which retailers tend to sell its products through development of outlets near offices, parking stations and petrol outlets. Finally, like Trade Fairs, Retail Fairs and also Retail Parks can also be constituted through which different retail firms can exhibit different categories and brands of retail products for being chosen by the customers. The same helps in generating increased exposure to the different retail firms in competing with their competitor firms in an effective fashion (Berg, 2013).
References
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Berg, B., 2013. Retail Branding and Store Loyalty: Analysis in the Context of Reciprocity, Store Accessibility, and Retail Formats. United Kingdom : Springer Science and Business Media.
Berkhout, C., 2015. Retail Marketing Strategy: Delivering Shopper Delight. United States : Kogan Page Publishers.
Brook, B., 2015. Government considering plans to allow supermarkets sell alcohol in the aisles. [Online] Available at: https://www.news.com.au/lifestyle/food/drink/government-considering-plans-to-allow-supermarkets-sell-alcohol-in-the-aisles/news-story/4ab25f6608726e9d6002aba14cad3357 [Accessed 1 December 2016].
CIA, 2016. Hong Kong. [Online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/hk.html [Accessed 1 December 2016].
Hong Kong Tourism Board, 2016. Malls and Department Stores. [Online] Available at: https://www.discoverhongkong.com/in/shop/where-to-shop/malls-and-department-stores/index.jsp [Accessed 1 December 2016].
Hong Kong Trade Development Council., 2016. Convenience Store Success. [Online] Available at: https://hkmb.hktdc.com/en/1X0A4FM5/inside-china/Convenience-Store-Success [Accessed 1 December 2016].
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Mincon, 2012. Cost Containment and Value-Driven of retailer. [Online] Available at: https://www.posright.com/new/Cost_Containment_Value_Driven_retailer [Accessed 1 December 2016].
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Pride, W., 2008. Marketing. United States : Cengage Learning.
Rienartz, W., 2016. In the Future of Retail, We’re Never Not Shopping. [Online] Available at: https://hbr.org/2016/03/in-the-future-of-retail-were-never-not-shopping [Accessed 1 December 2016].
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