Retailing in india

What is barter system : A barter system is an old method of exchange. Th is system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. ... The value of bartering items can be negotiated with the other party.

In trade, barter (derived from baretor^[1]) is a system of exchange where participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money.^[2]Economists distinguish barter from gift economies in many ways; barter, for example, features immediate reciprocal exchange, not delayed in time. Barter usually takes place on a bilateral basis, but may be multilateral (i.e., mediated through a trade exchange). In most developed countries, barter usually only exists parallel to monetary systems to a very limited extent. Market actors use barter as a replacement for money as the method of exchange in times of monetary crisis, such as when currencybecomes unstable (e.g., hyperinflationor a deflationary spiral) or simply unavailable for conducting commerce.

Economists since the times of Adam Smith (1723-1790), looking at non-specific pre-modern societies as examples, have used the inefficiency of barter to explain the emergence of money, of "the" economy, and hence of the discipline of economics itself.^[3]However, ethnographic studies have shown that no present or past society has used barter without any other medium of exchange or measurement, nor have anthropologists found evidence that money emerged from barter,

These stores used to Kirana stores and mom-and-pop  kirana stores

The origins of retailing in India can be traced back to the emergence ofstores. These stores used to Kirana stores and mom-and-pop  cater to the local people. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar’s, Raymonds, etc. Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing.

Retail outlets such as Foodworld in FMCG, Planet M and Musicworld in Music, Crossword in books entered the market before 1995. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the continuous improvement in the supply chain management, distribution channels, technology, back-end operations, etc. this would finally lead to more of consolidation, mergers and acquisitions and huge investments.

The strategic  retail analysis typically includes 

                      Following elements

Market analysis

Market size, stage of market, market competitiveness, market attractiveness, market trends

* Customer analysis

Market segmentation, demographic, geographic and psychographic profile, values and attitudes, shopping habits, brand preferences, analysis of needs and wants, media habits

* Internal analysis

Other capabilities e.g. human resource capability, technological capability, financial capability, ability to generate scale economiesor economies of scope, trade relations, reputation, positioning, past performance

* Competition analysis

Availability of substitutes, competitor's strengths and weaknesses, perceptual mapping, competitive trends

* Review of product mix

Sales per square foot, stock-turnover rates, profitability per product line

* Review of distribution channels

Lead-times between placing order and delivery, cost of distribution, cost efficiency of intermediaries