Factors Affecting Retail Efficiency in Bangladesh

The efficiency of retailing in Bangladesh is affected by numerous factors. Lack of sales promotional efforts by the retailers, absence of personal attention from the retailers, lack of price uniformity between different stores, time consuming process of obtaining supply, absence of training facilities for salesmen, absence of institutional credit facility for the seasonal capital shortage and deficiencies in the transportation system—all are affecting the retailing efficiency.

Let us elaborately discuss the major factors affecting the retailing efficiency in Bangladesh.

Factors Affecting Retail Efficiency

The factors that affect the retailing efficiency in Bangladesh are as follows :

1. Absence of Modern Retailing Technique: Prices are seldom displayed in the shops and hence the retailers have to spend more time for each customer telling about prices and other things. Customers also do not get enough personal attention and the most of the retailers do not like the customers visiting their shops without any purchase. If the situation is improved, the sales may increase. Price raging will also improve the performance of the retailer.

2. Price Variation : Price variation from shop to shop for the same commodity is affecting the retailing efficiency to a great extent. Due to such variation, many consumers take resort to bargaining even though they do not like it. If the price were uniform for particular commodity in all the shops, the time requirement for making a purchase could substantially be reduced and any reduction in the buying time of the consumer would constitute to the efficiency of the retailing systen.

3. Poor Quality of Bangladeshi Products : Consumers are far from satisfied with the products made in Bangladesh. This has surely affected the buying habits of the people. As a result, retailing efficiency has been badly affected by the poor quality of the home made goods.

4. Irregular Supply : Obtaining the timely supply is a major cause of worry for the retailers. Most of the retailers have to take the troubles of visiting the supplier for either obtaining the information or getting the supplies for their shops. This time consuming and expensive process of obtaining information and supply is affecting the marketing efficiency in Bangladesh.

5. Untrained Salesman: Good salesmaship is lacking in Bangladesh. Most of the retail stores owners have to impart training themselves to their salesmen. No institutional facility is available for training up the salesmen of the retail store. Thus, for efficient retailing there is a definite need for institutional training facilities for salesmen.

6. Seasonal Capital Shortage: Because of the small scale operation it is not possible for a majority of the retailers to obtain credit from the bank in time of difficulties. Most of the retailers think that their efficiency is affected by this shortage of capital.

7. Disproportionately large fixed capital requirement: Another notable characteristic of retailing in Bangladesh is the high proportion of fixed capital needed as compared to the circulating capital in some of the growing towns. This is because, in addition to the fixed investment in furniture and other things, a considerable amount has to be invested by the retailers for taking possesion of the premise which is known as “Salami”

8. Transport Problem: Transport problems that are affecting the retailing efficiency are more prominent in case of traders who are outside big towns like Dhaka or Chittagong. The risks and costs involved in transportation increase the ultimate price of a commodity. Thus the transport deficiencies also stand on the way of better retail performance.

9. Lack of Communication: Consumers of some products such as handloom products are not aware whether the products of their choice would be available. Advertisement could probably improve the situation.

10. Higgling: A significant proportion of the consumers of textile products consider this to be one of the major inconvenience in buying handloom products. This involves the loss of time and energy of both the consumers and the retailers, who otherwise could probably serve more customers within the given time.

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