Along with the general development of society, trade activities in recent years have developed prominently, especially retail activities. For business people in this field, the term Retail is not too strange, but not everyone understands it well. So what is Retail? How important is it? All the above questions will be answered by VSM for customers in the article below.
Retail is a very familiar business term of today’s businesses and entrepreneurs. So what is Retail?
Retail is understood as a retail activity, which is the sale of sales staff working at large-scale distribution agents such as trade centers, agents, department stores, etc. to bring products to people. consumption.
|What is Retail?|
This term originates from the French word “tailler” which means to cut, trim, and subdivide objects and finished products in the 1365s. By 1433, the first time was in 1433. it is used in the field of trade, buying and selling, specifically selling goods in small quantities.
Retailing is a trade that provides goods and services directly to consumers. This activity usually occurs at retail stores, agents, and commercial centers. But this can also be done through vending machines, door-to-door sales or through e-commerce channels.
Retail activities now appear in all forms and areas of life such as culture, education, health, tourism, insurance, transportation, …. Thus we can see that retail appears. It has been around for a long time and it has been holding an important part in people’s lives as well as holding a balance of economic development in any country, not just Vietnam.
Benefits of Retail
As a popular and important term in trading activities, Retail has been asserting its own role and benefits. So how does Retail benefit people’s lives as well as the economy?
|The important role of Retail|
Before learning the importance of Retail, VSM and customers will understand the main function of a retailer. The very function of this retailer is also the function and role of Retail:
- Can provide goods and services to customers anytime, anywhere according to anyone’s needs.
- Retailers provide finished goods and services in the form of preserved packaging that customers can use immediately, not raw materials for customers to spend time and effort processing.
- Retailer is a place that supplies and distributes a variety of products from many other wholesalers. As a result, customers can obtain a wide range of quality products at a single retail location at any end. From this we can see that Retail is both a buyer and a seller.
So besides the concept of what Retail is, customers also have more knowledge about the practical benefits it brings. Therefore, we can confirm that Retail has been making an important contribution to the overall development of the world economy.
How Retail Supply Chain Works
Retail is a retail supply chain. So what components are there in this supply chain?
|How it works in retail chains|
- Manufacturer: is the place where raw materials are processed and produced for finished products. This is the place where human resources, machinery and materials are concentrated as a premise for the production of goods and services.
- Intermediate distributor: this will be the place to carry out activities of buying and selling goods and products from manufacturers in large quantities to resell to retailers at a higher cost.</li >
- Retailer: this is retail, which directly supplies goods to consumers at a higher price than when buying from an intermediary distributor in small quantities
- Ultimately, consumers will be the place to buy goods from retailers and use them directly.
What are Retail related business terms?
As mentioned above, Retail is the retailing of a variety of products, goods and services. Learn about it, customers not only have to learn about what Retail is, what are the benefits of Retail, but customers also have to learn the terms surrounding Retail. Let’s explore the terms and functions of terms related to Retail with VSM.
|Important terms in Retail|
This is a closely related term and is often used in common when we refer to Retail. This term is referring to people who have the function of managing, in charge as well as operating all activities taking place at a store or retail center. These people ensure the process of providing quality products and services to consumers without any problems or interruptions.
Retail price index
This term is also known as the Consumer Price Index (CPI). Any kind of business wants to get results as well as learn about customer consumption metrics. This term is understood as the Consumer Price Index.
This indicator is statistic to calculate percentage. This result is used to measure and calculate the price volatility of consumer groups, namely households. From there, you will know which groups of products and services are used the most.
Distribution – What is distribution in retail?
If customers are looking for a term used to refer to distribution in Retail, it is Distribution. This term is used to refer to the transportation of goods, products and services from the place of production to the consumer through a certain channel. This channel can be a retail store, a reseller or a sales bot, an online purchase channel, ..
And if you are looking for a term to use to pay in Retail, it is Retail banking. This is a term used to refer to banking services for retail activities. The diversity and abundance of financial services make it easier for consumers to pay. It includes: credit loans, installments, deposits, mortgages on property, housing or individual consumer pensions.
What is Retail audit in retail?
So what is the term Retail audit used in retail? This is a term used to research and measure the retail market, helping sellers to collect and analyze product information available at the store. The data that the seller receives in return can be sales, trends in consumables, the amount of inventory left in the warehouse, etc. Controlling that quantity helps the seller to be more proactive in his business. .
LS – Retail
Another term also used in Retail that VSM wants to share with customers in this article is LS – Retail. So what is LS- Retail?
This is a software whose main function is to provide add-on solutions to meet the needs of retail operations on the Microsoft Dynamics online sales platform. The solutions that LS-Retail can provide to you are business management software and POS system with many intelligent functions to help you manage all sales processes most professionally.
Besides the terms that VSM shared above to better understand what Retail is, customers can also learn more supporting terms such as Consumerism, Customer Satisfaction, etc.
Thus, in the above article, VSM has shared with customers the most important information to answer what Retail is. Hopefully, the sharing in the article has helped customers better understand one of the important trading activities that promote the development of the economy.