Organised and Unorganised Retailing

Organized Retailing

Organized retailing refers to running a business in an organized and scientific manner. Organized retailing has brought in a remarkable advantage for the consumers and has a huge potential for growth that leads to a higher GDP contribution to the country and generate employment.

On the other hand, organized retail is nothing but a retail place where all the items are segregated and brought under one roof, unlike the unorganized retail where different goods are sold in different shops. Organized retailing provides large numbers of brands available and different types of products at one place. Organized retail deals with multiple formats, which is typically a multi-owner chain of stores or distribution centres run by professional management. Today, organized retailing has become an experience characterized by comfort, style and speed. It is something that offers a customer more control, convenience and choice along with an experience.

Unorganized Retailing

Unorganized retailing includes units whose activity is not registered by any statute or legal provision, and/or those, which do not maintain regular accounts. This sector is characterized by small and scattered units which sell products or services out of a fixed or mobile location.

Markets and Pop-up shops are good examples of unorganized retailing.

Difference Between Organized And Unorganized Retailing

Differences between organized and unorganized retail can be specified on the basis of their ownership, logistics, supply chain facilities and structure of management. The details are as follows:

• In organized sector, the retail units are offer large variety of items through its retail outlets. However, in unorganized sector, very few items are offered for sale in the outlets.
• In organized sector, the quantity of the retail outlet is very large and stores layout and design are very attractive and comfortable to the customers. However, in unorganized sector, the quantity is very small and usually proper layout and design of the stores is not found.
• The number of the employees is very large in organized sector. However, in unorganized sector, the number of employees are considerably fewer in comparison with organized sector.
• In organized retailing, the capital requirement is very high and does not enjoy perpetual succession. In unorganized retailing, the capital requirement is very low, and the business enjoys perpetual succession.
• Organized sector covers those enterprises or places of work where the terms of employment are regular and people have assured work, whereas, the unorganized sector is characterized by small and scattered units which are largely outside the control of government.
• In organized sector, the business unit is run in corporate style. However, in unorganized sector, the business units are run as sole-trading or partnership units.
• In organized sector, the network of the retailer is vast and operates a number of branches at different places. However, in unorganized sector, the business is confined to a particular locality and carries the business in a single unit.