Retailing is one of the largest sectors in the global economy which is going through a transition all over the world. For a long time, the neighborhood grocery store was the only choice for consumers, especially those lived in the urban areas. Today’s young generation prefers buying from supermarkets, grocery chains, convenience stores and fast-food chains because of its organized nature.
The majority of the retail markets, worldwide, especially in developing countries are dominated by unorganized markets.What are unorganized markets?
Let’s have a look into the two major types of retailing.
1. Organized Retailing:
Organized retailing refers to the one run by licensed retailers. It can be a retail outlet which is professionally managed with strategically organised products. They use different kind of tools, strategies and promotions for their product display. e.g. retail chains, corporate backed hypermarkets.
2. Unorganized Retailing:
The unorganized retail sector primarily comprises of the small-scale retail stores, with no standardization, selling goods and services to the local customers. It is any retail outlet which is run locally by the owner or the caretaker of the shop. Such outlets may lack strategical space planning and standardization. e.g. kirana stores in India, convenience stores, local street shops.
Why do unorganized markets need a planogram?
In today’s retail scenario small retailers face many challenges. Consumers’ tastes and needs started changing, demanding quality products, efficient customer interaction and better services. An organised store with trusted branding encourages customers to buy more by its strategically placed products popping up while they glance upon the shelves.
It is not an easy task to get a store organised manually. It requires a space planning tool to do all the arrangement of products in a way that favour sale. Space planning using a planogram tool would definitely transform the way a store operates, leading to more sales.
Get more out of your unorganized markets! Try Nexgen POG!