Those engaged in the sale of products using marketing methods which do not include a fixed physical location. Non-store based retailers enjoy many benefits. First, there is freedom from a physical retail presence. Second, the high fixed cost of running a retail outlet is eliminated.
Third, the width of customer coverage is wider in comparison of a fixed location store. Fourth, the warehousing cost is eliminated. Non-store based retailing provides a cheap and centralised location. On the other hand, the disadvantages include fear of credit card abuse and luxury items’ sale is a problem.
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Examples of non-store retailing include:
i. E-tailors:
These retailers provide online buying facility via internet. These provide a picture and description of the product. Due to the convenience and wide variety these stores are becoming very popular. Foreign direct investment in multibrand retail may have been relegated to the cold storage, but competition is still burgeoning for the neighbourhood store from a plethora of e-retail websites ranging from eBay to those run by popular brands. E-tail or is clearly coming of age in India. In India aviation tickets is the biggest e-tailing market.
Image Source: e-tailors.nl
ii. Catalogue Sales or Mail-Order Retailing:
Sale through catalogue eliminates the constraints of space and time, because, the business doesn’t require physical store locations with all the associated overhead expenses like rent, employee wages, utility bills, etc. It can all be done out of one big warehouse with minimal employees, vastly reducing overhead costs.
Some of the product available through catalogue sale include Fenner belt, Reader’s Digest, Tupperware, books, etc are sold through catalogue. Mail- Ordering format offers many advantages which include – first, it increases convenience, as shoppers can buy from the convenience of their own homes. Second, the firms make themselves available whenever the customers want to buy.
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Third, it garners increase in terms of customer in the world. Fourth, targeting is easy – for example using the
post code, targeted campaigns can be developed using geographical / demographical criteria. Fifth, personalization – large numbers of personalized mailings can be undertaken regularly. Sixth, Response rates can be high.
Seventh, there is Flexibility of creative scope. Eighth, the money may come in advance or at the time of delivery (if it is through value payable post – VPP), hence there is no need of any credit facility.
iii. In-Home Demonstrations:
A product demonstration (or”demo” for short) in-home is a promotion where a product is demonstrated to potential customers. Door-to-door, and by- appointment or without appointment salespeople demonstrate such products as Eureka Forbes water purifier, cleaning machine, Tupperware, encyclopedias, vacuums, and carpet stain removers.
iv. Vending Machines:
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A vending machine is card- or cash operated retail marketing format which dispenses the merchandise when a customer deposits money, validated by a money detector sufficient to purchase the desired item. It eliminates the use of sales personnel and allows 24-hour sales. Second, a vending machine can be place any where. If a particular place is not suitable, though a fixed store can’t be shifted, can be changed to any other place.
Operating a vending machine can be costly affair, but a vending machine avoids those expenses. On the other hand, high priced goods can’t be sold through vending machine, because it requires more and more coins, secondly, the consumers are even otherwise reluctant to buy high-priced items not displayed.
Third, there is always danger of theft and stock outs. Beverages, chocolates, milk, and cash withdrawals have become quite commonly sold items through vending machines. The oldest vending machine in India is the weighing machine on major railway stations. The most popular vending machine nowadays is Banks’ATMs, followed by Mother Dairy. In Japan many things including eggs are sold through vending machines.
v. Direct Response Television Advertising:
Direct Response Television, or DRTV for short, or Teleshopping includes any television advertising that asks consumers to respond directly to the company usually either by calling an 1800 number or by visiting a web site.
The product is demonstrated directly in the living rooms on TV. This is a form of direct response marketing. There are two types of direct response television, short form and long form. Short form is any DRTV commercial that is two minutes or less in length. Long form direct response is any television commercial longer than two minutes.
This was the accepted term for an infomercial from 1984 until “infomercial” came into vogue in 1988. The most common time period available for purchase as “long form” infomercial media is 28 minutes, 30 seconds in length.
Long form is used for products that need to educate the consumer and create awareness, and typically have a higher price. A relatively small amount or media time may be purchased in lengths less than 30 minutes but more than 2 minutes. Five minute is the most commonly available time of these lengths.
Teleshopping became operational in India in 1990s. Telebrands brought this concept first time to India. Other players include Asian Sky Shop, TVC, TSNM, and Star Warnaco. The products demonstrated or shown are disease curing teas, toys, kitchen and household equipments including food mixers and grinders, weight reduction and get into shape without exercising or dieting.
Though it is a successful growing channel, but it faces many problems as well. First, there is not yet complete education and awareness among people. Second, there is low rate of employment. Third, there is abundant supply of imitated products. Fourth in India still there is habit of occasional shopping habit. Last, but not the least, the prices charged for these products are higher than the normal prices.
vi. Multi-Level Marketing:
Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a down line of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include pyramid selling, network marketing, and referral marketing.
Some sources classify multi-level marketing as a form of direct selling rather than being direct selling. Multi Level Marketing in India is suitable for work from home mom students and part time professionals. If you would like to start your own business without investment and part time in India or any of the world then the best choice is listed here. Many people earn like anything. Start your own Multi Level Marketing in India as a part time business.
Amway India is the country’s leading direct selling FMCG-company which manufactures and sells world-class consumer products. All its products are covered by a 100 per cent Money Back Guarantee. If not completely satisfied with the product, the consumer can return it for a 100% refund. It has established a nation-wide presence of over 135 offices and 55 city warehouses and four regional mother warehouses.
The distribution and home delivery network set up with the support of independent logistics partners is spread across over 5500 locations. At present, Amway India offers over 130 products in five categories. They are Personal care category, Home Care category, Nutrition & Wellness category, Cosmetics and Great Value Products.
vii. Haat:
In India, weekly bazaars are organised on a regular basis in both urban and rural areas. Every day of a week, at one or the other place such bazaars are being held. In Jaipur every Friday, HATWARA is being held. In Delhi on different days the haats are known with the day of the week are being held. No. of consumer firms are visiting weekly rural haats, not to shop but to choose prospective rural customers. Number of haats in India stands at 43,384, according to 2001 Census.
U.P. tops with 10,380. Top sectors active in rural marketing are automobiles and allied sector, Mobile service providers, FMCG.
Haats are dying off as development happens in an area. Wherever Haryali Kisan Bazaar has gone, we have seen a decline in haat activity, says Nirmallya Roychaudhury, head, Brand & Marketing, HKB. However, we do not agree with the view.
A Nestle, or a Nokia may come to woo rural consumer. Nestle registered a 40% growth in rural sales last year. The Rs 5 kitkat, the Rs 1 Eclair, and the Chotu Munch are doing extremely well in rural areas. Carts: Carts or thelas are popular methods of retailing in India. Many Sikhs sell rice, Subjiwala sells vegetables, fruitwala sells fruits, and so on and so forth.
viii. Hawkers:
In India, hawkers or street vendors are quite popular. It is not uncommon to hear the voices of ‘Tala Theek Kara Lo’, Pressure Cooker/Gas Chulha Theek Kara Lo’, ‘Chhole Kulchewala’, ‘Dusutti Le Lo’, and so on in the street. Street vendors are found in almost every city in India. These hawkers sell not just clothes and accessories, but also local food.