Introduction to the World of Retailing

1. Introduction to the World of Retailing Successful Retailers eBay (USA) Starbucks (Seattle) Hennes & Mauritz (Sweden)

2. 1 EBay (USA)2 Hennes & Mauritz (Sweden) 3 Matalan (UK)4 Bed Bath & Beyond (USA)5 Carpetright (UK)6 Beate Uhse (Germany)7 HK Pharmaceutical (Hong Kong)8 Ted Baker (UK)9 Fast Retailing (Japan)10 Woolworths (Australia) 11 DFS Furniture (UK)12 99 Cents Only Stores (USA) 13 Walgreen (USA)14 CDW Computer Centers (USA)15 Duty Free Shops (Greece)16 A-B Vassilopoulos (Greece)17 Christopher & Banks (USA)18 Home Depot (USA)19 Kohl's (USA)20 Seven-Eleven (Japan)21 Next (UK)22 Miller's Retail (Australia) 23 Hamleys (UK)24 Family Dollar Stores (USA)25 Hot Topic (USA) Top 25 Retailers by Value Creation (A study by Oxford University’s templeton college)

3. World's largest trading community where millions of people buy and sell millions of items every day US-Based internet retailer (E-tailing) About 86 million buyers and sellers use the service worldwide. Categories of things available on E-BAY : Antiques | Art Automotive (eBay Motors) Books Business & Industrial Clothing, Shoes & Accessories Coins | Collectibles Computers Consumer Electronics Dolls & Bears eBay Giving Works (Charity) eBay Live Auctions The World’s Internet MarketplaceInternet retailer eBay can claim to be the world’s most successful retailer according to league tables produced by the Retail Value Creation research project. Entertainment Home Jewelry & Watches Musical Instruments Pottery & Glass Real Estate Specialty Services Sports | Stamps Tickets | Travel Toys & Hobbies Everything Else (There’s even a bid on Elle Macpherson’s leg hair on a sticky tape!)

4. Howworks? • Most of the selling on eBay occurs in an auction or Buy It Now format. It all begins when the seller posts the item on eBay for a specified duration of time (3, 5, 7 or 10 days) • Potential buyers search for items and place bids on those they are interested in purchasing • The person who chooses to Buy It Now, or the person who placed the highest bid at the close of an auction is the winner! At this point, the buyer and seller make arrangements for payment and shipping • After payment is made and the item is delivered, the buyer and seller leave feedback on each other in eBay's Feedback Forum Extracted from the e-bay University

5. Safe environment? • Fraud protection covers the first US$200 of the purchase, minus a US$25 deductible • SafeHarbour investigates questionable business practices • SquareTrade provides mediation services for buyers and sellers to help resolve any issues that arise

6. Recent News • Spanish savings bank Caja Madrid's division Caja Madrid eBusiness will sell its products via its internet portal Salaretiro.com, which will be available on eBay Espana, the Spanish division of internet auction operator eBay. • New York state has been quietly selling surplus items for more than a year through the highly successful online auction house eBay. OGS (office of general service) sales on eBay have already earned the state almost $300,000 on hundreds of items • New York is one of at least 14 states that are making use of the online auction service to sell surplus property, unclaimed assets and the like. • eBay has single-handedly kept the average performance of the Internet retailing sector artificially high

7. Starbucks Coffee Company • Came out in 1971 • Marketing Campaign • No real advertising • Through ‘Word-of-Mouth’ • Free Samples • Consistency • Maintaining the same quality with regards to coffee, quality and store layout • Customer-orientated • Warm • Friendly • Sophisticated • Expansion of product varieties • Frappuccino • Macchiato

8. Starbucks Coffee Company • Affordability • Comparable pricing to non-chained coffee houses • Able to overprice • Consumer Acceptability • Ideal store locations & campaigns • Populated • Highest Probability • Maximizing of market share • Brand Extension • Ice-cream • Bottled Frappuccino • Social Responsibility • Identify social needs for profitable activities • Better-motivated employees • More Supportive Communities

9. HENNES & MAURITZ • established in Västerås, Sweden in 1947 by Erling Persson • International apparel and cosmetics retailer • More than 950 stores in 18 different countries • Fashion and quality at the best price • H&M sells around 500 million items a year and new goods are delivered to our stores every day. • In Sweden, Norway, Denmark and Finland H&M sells fashion via the Internet. • In Scandinavia H&M sells fashion by mail order. • Famous for its print advertising • Campaigns are shot by high profile photographers; featuring some of the fashion industry's top models

10. Vision and Mission • Fashion & quality at the best price • Secure & raise the quality of our goods • Carry out careful and effective quality control • No usage of environmentally hazardous chemicals or harmful substances • Ensure that our customers get a good deal • Shopping with easy & pleasant experience • Great importance is attached to the layout of the stores & the way in which the garments are presented • The principle of best business locations applies whenever opening new stores.

11. Why is retail competition increasing? Identify the major reasons or causes for this increase. • Competitions in the high street, with high levels of discounting • Especially for smaller and independent stores come from large chain stores • Constant upgrading of technologies --- competitions from electronic and non store based retailing • Landlords amalgamating (mix/unite) shop units into 1 new, large floor plate; results in fewer shops in town centre & growing threat to smaller chain stores and single-unit independent stores • Up & coming retailers bringing in new ideas/concepts/merchandise post a threat to the “Veterans” in retail industry • “Globalization” in the retail industry • Carrefour (Based in France) set up business in Singapore for the first time • strong competitor for local based supermarkets like NTUC

12. Methods being used by retailers to avoid or lesson the effects of greater competition • One stop stores: Merging with other stores/services to form a One Stop Store. E.g.: Blood Brothers (Café) + (Apparel), Morgan (Apparel) + Hair Salon • Setting up stores in out-of-town sites • Constantly coming up with new ideas/concept/target consumers/merchandise • Reducing turnover rates

13. Means of differentiating Retailers from their competitors • Brand building: Rare basics which specializes in visual displays for retail, believe that in the current retail environment, it is essential to stand out from the competition with a strong visualidentity -differentiate their products and stamp their own strong identities on the market. • Diversity: Many store-based retailer diversify by going for a share of the non-store based retailing like direct mail retailing, internet retailing, television home shopping etc… • E.g.: American Hip Hop Apparel Label-Babyphat withwww.babyphat.com

14. End Of PresentationThank You