The stream of goods can be described as follows: A manufacturer is someone who sells the product to the wholesaler, that is, from the producer to the buyer. Wholesale sells big quantities to retail sale, that is, from buyer to buyer. Retail sale sells goods to the consumer, that is, from buyer to customer.
The retailer sells the goods that were procured in large quantities from a wholesaler or from a manufacturer, to the consumer in small quantities. By buying the product from the manufacturer, preparing and selling them to customer, the retailer fulfils certain needs of all these three factors in business.
10.2.1 Functions within a Retailing Company
There are many functions in a retailing company: storing the goods, shaping the range of goods, opening up new markets, distributing the goods, improving goods, advising customers and providing customer service.
The manufacturer can first deliver the goods to retailers and wholesalers after production. The retailer also takes the risk of the sale instead of the producer. At the same time, the retailer assumes responsibility for storing its customers’ supplies. Also, it keeps the store filled with the goods according to its customers' demand.
For example: although honey and jam production is only possible at certain times, the products can be found on the market all the time, since the consumption is more or less constant throughout the year.
The retailer selects from a wide range of manufacturers and products. This selection builds up to form the retailer’s range and this gives the manufacturer clues about the customers’ needs. The retailer targets the range according to the customers’ needs. The orders and sales transactions inform the manufacturer about which products have market demand. Based on this the manufacturer is able to focus its production on these products.
The retailer also presents new products to the customer and explains how and where to use them, if necessary. The retailer takes on the job of distributing the products to households by buying them in large quantities and selling them in household-sized quantities. This enables the manufacturer to produce and deliver products in large quantities. The retailer enables the manufacturer to sell its goods even if there are great distances between the manufacturer and the customer. The manufacturer does not have to advise the end user. He only has to provide the retailer with information and material. The customer receives information about the type, quality and materials of the product through the retailers. The customer receives additional services like delivery, installation services, or repairs. On the side of the manufacturer, this boosts the sales of a product. With all the functions it fulfils, retail becomes a backbone both for the customers and the producers by providing them with certain advantages.
Think: How is your own consumer behavior changed in the past ten years?
10.2.2 Career available in Retail business?
First of all, you need to step into the sector believing in yourself and your capabilities. This is a sector which grows at an enormous speed. Retail is one of the sectors where you can climb the career steps really fast. Once you start working as a cashier or sales person, you gain experience and learn about the sector. You can become a section or department supervisor, and eventually a store manager, stores coordinator, and a store director. Becoming a senior manager or even a CEO or entrepreneur is not impossible in retail. According to some recent research, it shows that retail employees are satisfied and believe that jobs in the retail business positively influence their skills and traits in their professional career. In this sector, success is not a matter of chance. Retail offers opportunities for upward mobility and provides flexibility for the employees.