The retail business is the backbone of the Indian consumer market. We know that more than half of the population of India still lives in small cities & villages, making the retail business a main resource of their everyday goods. If you’re looking for business ideas that fulfil consumer demand and also make profits, Retail Businesses should be on your top list.
But which one should you choose? There are several kinds of retail business ideas you should know about. In this blog, we will discuss all the types of retail businesses and how you can start them.
Also Read: Retail vs Wholesale: Which Model Works Best for a Supermarket Business?
The Role & Significance of the Retail Business Industry:
Before everything, let’s discuss what Retail Business is.
Retail businesses are the last part of the supply chain. They contact vendors or wholesalers to buy products in large quantities. On the other hand, they sell it to consumers directly. Since they engage with the consumers, they are the ones who know the ground reality at best.
The Indian retail market has reached RS 82 Lakh Crore Indian rupees and this is estimated to grow to RS 190 Lakh Crore in 2034.
Retail businesses are the backbone of any economy and the last part of the supply chain. These businesses connect with the consumers directly without forcing any conditions on them. They are one of the main resources of everyday ready-to-use goods.
Why do consumers choose retail outlets? Here are some reasons.
- They are free to buy any amount of products from any category.
- No need to wait in long queues; retail businesses offer quick services.
- Retail outlets create custom offers, discounts, and other rebates for their consumers based on location, preferences, and loyalty.
They are the smallest building blocks in the business environment and maintain the business flow. And this is why no market change can impact the retail businesses ever!
Retail Business Categories You Must Know:
Here is a list of all the top categories for the retail business ideas you should know about:
1. Supermarket Franchise:
Supermarket deserves its name. You can find anything from everyday veggies to groceries to packaged FMCG goods under one roof. These stores keep a wide variety of product lines such as coffee, sweets, bakery, vegetables, fruits, home appliances, dishes, stationeries, toiletry, and many others. And what’s special for consumers? Discounts & Personalized Offers!
Also Read: Top 10 Trade Promotions for FMCG & CPG Brands
2. Department Stores:
These stores are big supermarket stores and offer multiple genre products such as clothing, FMCG, electronics, beauty products, stationeries, etc. They provide convenience, variety, and a one-stop shopping experience for customers.
3. Convenience Store:
Convenience stores are the tiny version of supermarkets. They keep a wide range of products from limited brands only. However, you can easily find 2-4 brands for each product. What’s special? Buyers don’t need to go to a supermarket & wait for hours. These stores are everywhere around the bush so they can buy quickly & easily.
4. Specialty Store:
These stores specialize in 1-2 categories of products only. Since these are special stores, they provide the best products that you may not find in the market easily. Here are some examples of specialty stores- Bookstores, Furniture Stores, Sporting Goods Stores, etc.
5. Discount Stores:
These stores offer heavy discounts to their customers and that’s their USP. They deal in heavy discounts because they directly buy products from manufacturers in large volumes for low costs.
6. E-Commerce Stores:
E-commerce stores are online websites where buyers can go and buy things online. You must have used Flipkart & Amazon. These are the big e-commerce giants. However, there are specific e-commerce websites selling specific products.
7. Warehouse/Wholesale Retailers:
These are large wholesale stores that offer bulk products at lower prices. Their primary targets are consumers who buy bulk products or small retailers who sell these products to consumers in retail.
8. Supermarket Franchise Retailers:
These are retail stores that work under a brand name. They get all the support in marketing, training, and supply chain. Notably, they only sell brands partnered with the franchise brand and offer premium-level products & services.
9. Direct Selling Businesses:
Direct selling businesses work on a Brand-to-Consumer model. They eliminate all the middle people like wholesalers and vendors. These are retail outlets where sales often depend on personal interaction and team leadership.
10. Pop-Up Shops:
This is interesting! They are temporary retail shops that sell products for only a short period. They create excitement, fun, engagement, and connections, offering consumers a unique shopping experience, but only for a limited time.
Retail Business Ideas to Consider:
1. Supermarket or Grocery Franchise Store:
You can easily start a supermarket store where you can sell a wide range of FMCG & grocery products to consumers.
2. Clothing & Fashion Boutique:
Clothing & Fashion boutique is a big industry. This industry often caters to the younger generation who wants to look & feel good. However, here is a tip- every demographic has some specific style and you must offer that to your consumers.
3. Health & Wellness Products Store:
These stores focus only on products that are good for health, fitness, and overall well-being. You need to have high-quality health & reputable products with a quick payment procedure.
4. Beauty & Personal Care Store:
Beauty & personal care stores offer cosmetics, skincare, and personal care products to diverse audiences.
5. Mobile Accessories & Electronics Shop:
You can start a special retail store offering customers mobile accessories and electronic shops. Make sure you have special products that are not available in the market.
6. Home Décor & Lifestyle Store:
The same goes for the Home Décor and Lifestyle Store. You need a place where you can display the products to your audiences. Make sure to have special products, unique & limited edition.
7. Franchise Retail Outlet:
This is one of the most common grocery franchise opportunities for people who want to start a business. You need to connect with a franchise brand and buy their supermarket franchise outlet.
How to Start a Retail Supermarket Business?
Want to start a retail supermarket business? Here’s a step-by-step guide to doing so.
First, understand your niche market whether it’s a supermarket grocery franchise, fashion boutique, or home décor. Understand all the pros, cons, and market potential of the business.
1. Connect with a supermarket franchise brand to open a business with a proven business model.
2. Conduct market research to find the best companies, local demand, competition, and people’s preferences.
3. Plan your finances through savings, loans, investors, or partnerships. Secure all your money channels properly.
4. Choose a high-traffic location where people visit every day. Don’t forget to negotiate a favourable lease.
5. Register your business and get all the necessary licenses.
6. Set your store layout, inventory, and equipment. If you’re buying a franchisee, the brand often gives you everything needed to set up the store.
7. Hire staff and implement training & support system.
8. Launch a marketing plan to attract customers.
9. Get feedback and improve your customer service for the best results.
Conclusion:
Retail businesses are the power blocks of the Indian economy. They empower the micro-business owners and also fulfil all the demands of the local consumers. If you’re looking for a big business opportunity, it would be to think about retail business ideas.
In this blog, we have discussed the types of retail businesses and how you can start them. Here’s a bonus guide- there are two kinds of retail business stores- franchisees and independent businesses.
Where you need to look for everything for your independent stores, the franchise model offers you support, training, products, and marketing for royalty.
Also Read: How to Launch a Successful Superstore Franchise in India