Organised & Unorganised Retailing:
- The retail industry consists of organised and unorganised retailing.
Unorganised Retailing:
- Typically run as small family businesses, such as kirana stores.
- Lacks adequate infrastructure.
- Does not utilize modern technology.
- Faces financial constraints due to lack of funding.
- Includes retail units not registered by any legal or statutory body.
- Does not maintain accounts on a regular basis.
- Small in size and mostly scattered.
- No fixed place for operations.
- Includes traditional units like haats, mandis, melas, kiranas, paanwalas.
- Other examples include fruit sellers, vegetable sellers, cobblers, etc.
Organised Retailing:
- Involves running a business systematically and scientifically.
- Provides remarkable benefits to consumers.
- Has potential for employment generation.
- Contributes to the overall growth of the country’s GDP.
- All items are kept under a single roof.
- Offers a large variety of brands and products in one place.
- Operates in multiple retail formats.
- Typically managed by professional management groups.
- Characterised by comfort, style, and speed.
- Enhances customer experience with more variety, convenience, and comfort.
Difference between Organised and Unorganised retailing:
- Variety of Items: Organised retail offers a large variety of items under one roof, whereas unorganised retail provides only a few items.
- Size of Retail Outlet: Organised retail outlets are very large, while unorganised retail outlets are very small.
- Size of Employees: Organised retail employs a very large workforce, whereas unorganised retail has very few employees.
- Capital Requirement: Organised retail requires very high capital investment, whereas unorganised retail operates with very low capital.
- Terms of Employment: Employment in organised retail is regular, assured, and controlled by the government, while unorganised retail employment lacks government control and security.
- Style: Organised retail follows a corporate structure, whereas unorganised retail consists of a scattered network of small retailers.
- Retail Sales: Organised retail has vast operations through multiple branches and deals in large quantities, while unorganised retail is confined to small, scattered local units and deals in smaller quantities.
Organised & Unorganised Retailing