Consumer products could be any item for general public, generally final output by manufacturing companies for retail. The product specifications and design is largely depending on the perception of the needs and wants of the customer. Consumer goods and retail sale of tangible products are now available for purchase by customers. As such consumer goods are often referred to as final goods / finished goods. Some examples of consumer goods are watches, jewellery, cars, food items, bags, apparels and other accessories.

Consumer goods can be subdivided into three main sub-groups namely: durable consumer goods, consumer services and non- durable goods. Durable industry includes items that last over a significant time span and as such they often have a higher price point due to their long shelf life and process of production for these goods. Examples of some durable goods is furniture, clothing, cars, modular homes or large household appliances are all examples of possible durable consumer goods. The second type of non-durable goods are produced and subsequently purchased for the intended purpose of being used immediately or very soon in future. Non-durable goods have a longevity that ranges from mere minutes upto three years. Some examples of non-durable consumer goods include gasoline, food items, certain apparel items, and beverages. Examples of other Consumer services may include landscaping, hair salon services or a variety of repair services.

The later half of 20^th century in North America, Europe and Asia has seen the emergence of the supermarket as a dominant grocery retail form. The reason why supermarkets, malls and large & small retail formats have worked, is due to the search for convenience in food shopping and consumption coupled to the car ownership led to the birth of supermarket.

Due to rising incomes shoppers have been seeking both convenience and new taste of stimulation, supermarkets and retail formats were able to extend their products offered. For example, the invention of bar code allowed to manage and store thousands of items, and their prices to a “just in time” store replenishment and the ability to record tens and thousands of individual items.

On the global level, the changing customer base has led to the changing face of retail industry over the last decade. One of the top retail giants Wal-Mart was ranked the top retailer in the world and it still holds the same position. The global economy has changed and is always evolving, therefore consumer demands have also shifted and therefore retailer’s operating systems are infused with far more technology than it was six years ago.

Technology has been a real enabler for retail over the last 5-6 years. Supply chain innovations were particularly strong in the second half of 1990’s and have continued till today. With all emphasis on technology and cost-cutting the emphasis of retail industry still continues to be demand based, by finding new markets and through globalization efforts.

Current Consumer & Retail Industry Size

Saturated food markets, fierce competition and limiting legislation have relentlessly pushed major food retailers into the globalization mode. Since the mid 1990’s most of the governments have opened up their economies as well, to the free markets and foreign investment that has been a plus for many a retailer. However fluctuating global economic slowdown has made consumers price sensitive and conservative in their buying particularly in the more advanced economies. Retail is one of the largest industry exceeding US $ 9 trillion.

The top 200 retailers alone account for 30% of the worldwide demand. According to a report by Deloitte Touche Tohmatsu, retail sales being generally driven by people’s disposable income and willingness i.e. consumer confidence to buy compliments the fact that the money spent on household consumption worldwide has increased 68% since the 80’s. Forrester estimates that both US and European online retail (representing 17 Western European nations) will grow at a 10 percent compound annual growth rate from 2010 to 2015, reaching $279 billion and €134 billion, respectively, in 2015.About 40% of that is spending on discretionary products and services.

The Asian economies including Japan, are going more than 10% consistently till 2005. Positive forces at work in retail consumer markets today include high rates of personal expenditures, low interest rates, low unemployment and very low inflation. Negative factors that hold retail sales back involve weakening consumer confidence.

Total contribution of retail to world GDP is 27%. Organized retail in US accounts for 22% of the GDP. Indian retail is dominated by the unorganized sector. India is the third largest market in Asia and Oceania before Japan and China.

Source:Canadean

Major Players In Consumer & Retail Industry

US, European Unions and Japan constitute’s 80% of the world retail industry. Highly evolved US market HAS Wal-Mart taking 8% of the market share. UK market has Tesco with 13.4% market share and China still does not have a clear picture. The benefits of globalization, emphasis on technology, cost-cutting measures has resulted in the top retailers expanding their base in more and more countries.

The retail industry can be classified depending on the store format i.e. cash and carry, discount, hypermarket, supermarket, superstore, warehouse, convenience store, drug store, specialty store and department store.

The world’s 15 top retailers are Wal-Mart from US, Carrefour from France, Royal Ahold from Netherlands, Home Depot from US, Kroger from US, Metro AG from Germany, Target from US, Albertson’s from US, Kmart from US, Sears from US, Safeway from UK, Costco from US, Tesco from UK, JC Penny from US and Aldi Einkauf from Germany.