• Put the following words in order:
consumer, retailer, manufacturer, wholesaler
manufacturer→ wholesaler →reatailer → consumer
What do they represent?
The p_od_ct’s d_ _ _ _ib_t_on cha_ _el
DISTRIBUTION CHANNEL
Producer
Wholesaler/distributor
Agent
Retailer
Own
sales
force
Consumer
How do you shop for X? Why?
Online(Internet)
or telephone or
mail order sales
Retail and wholesale trade
Services provided by wholesaler
A - For the producers
B - For the retailers
1__ Advising them on current market trends
2__ Offering choice of products from many
producers
3__ Finishing goods by grading, packing and
branding
4__ Reducing transport costs
5__ Making mass production possible by
ordering in large quantities → reducing
production costs
6__ Supplying small quantities to suit their needs
Services provided by wholesaler
A - For the producers
B - For the retailers
1_A_ Advising them on current market trends
2_B_ Offering choice of products from many
producers
3_A_ Finishing goods by grading, packing and
branding
4_A_ Reducing transport costs
5_A_ Making mass production possible by
ordering in large quantities → reducing
production costs
6_B_ Supplying small quantities to suit their needs
Services provided by wholesaler
wholesaler
• For the producer:
– Reducing transport costs
– Advising producer on current market trends
– Finishing goods by grading, packing and branding
– Making mass production possible by ordering in
large quantities → reducing production costs
• For the retailer:
– Offering choice of products from many producers
– Supplying small quantities to suit retailers’ needs
SUPPLY THE RIGHT WORD:
• WHOLESALING
_______________ is the business of selling large
quantities of goods at low prices to other
businesses, rather than to the general public.
DISTRIBUTION CHANNEL
Producer
Wholesaler/distributor
Agent
Retailer
Own
sales
force
Consumer
Online(Internet)
or telephone or
mail order sales
Retailing
• FINISH THE LINE…
The retailer buys goods or products in large quantities
from…
manufacturers or importers, either directly or through a …
wholesaler, and then sells individual items or small
quantities to …
the general public or end users, usually in..
a shop.
Retailing
STORM CLOUDS OVER THE MALL
As consumer spending slows, rival strategies are
being put to the test
(RB, p 39)
• I Look at the title and subtitle – can you guess
what the article is about – ANTICIPATING
• II Read topic sentences to inform your
expectations – PREDICTING
• III Read paragraph by paragraph and underline
words and expressions you find interesting
After reading each paragraph correct the matching
sentence in Task III (p 40 )
– Eg. Pg 1 – Task III, sentence 1
STORM CLOUDS OVER THE MALL
(RB, p 39)
Pg 1
high street
the generic name (and frequently the official name) of the main
street of a town where many shops and businesses are.
Name the high street in Zagreb? How is business there?
... his British retailing institution... is?
Boots
brace for an awful Xmas
get ready for the pressure of Xmas
What do you think Zagreb shopkeepers are bracing for?
Correct the mistake in paragraph summary (Task III, 1):
Consumer spending rises in Europe, competition is intense
and some retail chains decide to merge with rival chains.
STORM CLOUDS OVER THE MALL
(RB, p 39)
Pg 1
high street
the generic name (and frequently the official name) of the main
street of a town where many shops and businesses are.
Name the high street in Zagreb? How is business there?
... his British retailing institution... is?
Boots
brace for an awful Xmas
get ready for the pressure of Xmas
What do you think Zagreb shopkeepers are bracing for?
Correct the mistake in paragraph summary:
Consumer spending declines in Europe, competition is intense
and some retail chains decide to merge with rival chains.
Pg 2
Shopkeepers are notorious Eeyores –
known for being pessimistic
(Winnie the Pooh’s donkey friend)
mire = swamp, bog
What is Germany’s economy like? Mired?
sinking, declining
gas guzzling
guzzle – drink to excess, greedily
QUESTION: Can you say beer guzzling?
Correct the mistake in paragraph summary:
While Britain’s and Germany’s GDP is falling, consumer
confidence is on the rise around the world.
Pg 2
Shopkeepers are notorious Eeyores –
known for being pessimistic
(Winnie the Pooh’s donkey friend)
mire = swamp, bog
What is Germany’s economy like? Mired?
sinking, declining
gas guzzling
guzzle – drink to excess, greedily
QUESTION: Can you say beer guzzling?
Correct the mistake in paragraph summary:
While Britain’s and Germany’s GDP is falling, consumer
confidence is on the rise around the world.
declining
•
Pg 3 fuel bills are cutting into customers’ spending?
Correct the SUMMARY:
Rising fuel costs and household debt affect customers’
spending which in turn has a positive effect on the sales
of weaker retail players.
•
Pg 4
Correct the SUMMARY:
British supermarket chains expand into more product areas,
and this affects negatively high-street chains and
department stores.
•
Pg 5
•
An upmarket version of WalMart
Which is it?
appealing or catering to high-income consumers; of high
quality
Target
Correct the SUMMARY:
Retailers’ survival strategy relies primarily on meeting a wide
array of customers' needs.
•
Pg 3 fuel bills are cutting into customers’ spending?
SUMMARY:
Rising fuel costs and household debt affect customers’
spending which in turn has a negative effect on the sales
of weaker retail players.
•
Pg 4
SUMMARY:
Giant supermarket chains expand into more product areas,
and this affects negatively high-street chains and
department stores.
•
Pg 5
•
An upmarket version of WalMart
Which is it?
appealing or catering to high-income consumers; of high
quality
Target
SUMMARY:
Retailers’ survival strategy relies primarily on meeting
customers' needs, and specialisation (niche market).
Pg 6
retailers can stumble in new markets
to proceed unsteadily, encounter difficulties
Throw in the towel (boxing?)
admit/concede defeat, give up
Swap stores for hypermarkets
exchange
Correct the SUMMARY:
Secondly, retailers should keep a foothold in
as many regions as possible to reach economies of
scale.
Pg 7
Have no global clout - advantage, influence
have no significant global influence
Correct the SUMMARY:
Many retail chains have global clout.
Pg 6
retailers can stumble in new markets
to proceed unsteadily, encounter difficulties
Throw in the towel (boxing?)
admit/concede defeat, give up
Swap stores for hypermarkets
exchange
SUMMARY:
Secondly, retailers should only expand to regions where
they are strong.
Pg 7
Have no global clout - advantage, influence
have no significant global influence
SUMMARY:
Only a few retail chains have global clout.
Pg 8
Give a retailer the benefit of the doubt
adopt a favourable opinion even when evidence is
uncertain
To source products globally
to obtain, to find a supplier
SUMMARY:
Thirdly, retailers need to win consumer confidence through
pricing, the biggest supermarkets own factories where
they manufacture own-branded products cheaply.
Pg 9
Replenish stocks Remember: Time is not replenishable...
To supply what is lacking
SUMMARY:
Fourthly, some wholesalers introduce changes in the
supply chain.
Pg 8
Give a retailer the benefit of the doubt
adopt a favourable opinion even when evidence is
uncertain
To source products globally
to obtain, to find a supplier
SUMMARY:
Thirdly, retailers need to win consumer confidence through
pricing or service. Many retailers source high-quality
products globally and brand them as their own.
Pg 9
Replenish stocks Remember: Time is not replenishable...
To supply what is lacking
SUMMARY:
Fourthly, some retailers introduce changes in the supply
chain.
Pg 10
Correct the SUMMARY:
Consumer spending declines because of the use of the
Internet.
Pg 11
A website can drive in-store sales
stimulate the sales in brick & mortar stores
Beef up a website
strengthen, reinforce
Correct the SUMMARY:
Sales in virtual stores (c_ _ _ k -and-mortar stores)
work against brick-and-mortar sales.
Pg 10
SUMMARY:
Consumer spending grows because of the use of
the Internet.
Pg 11
A website can drive in-store sales
stimulate the sales in brick & mortar stores
Beef up a website
strengthen, reinforce
SUMMARY:
Sales in virtual stores (click-and-mortar stores)
complement/add to brick-and-mortar sales.
HW: RB, pp 41-42
IV Survival advice to retailers.
Review the list and get ready to present, comment...
Which is the most important / future oriented do you
think?
What are some of the advantages of online
shopping over buying in bricks-and-mortar shops?
E-commerce, RB: pp 43-44
II Having read Storm clouds over the mall (2005),
do you think that by 2012 major retailers made
strong efforts to participate in e-commerce?
III Find the following retailers in the text and
explain why they are mentioned.
HW:
a) Read the text carefully and do exercises on p 44
b) Submit task VI
in excess
Mistified?
https://www.youtube.com/watch?v=26ELh7P2ZtA
London Calling
• https://www.youtube.com/watch?v=EfK-WX2pa8c