abhishreshthaa
Abhijeet S
Consumer’s demand for new format shall be driving the growth for organized retailing. However, it must also be kept in mind that consumer expectations are also evolving and changing rapidly over time. Thus, for example, Department Stores per se were a novelty for the Indian consumer at the beginning of the 90’s.
The ability to look at and shop for major national brands under one roof was a major USP and therefore Shopper’s Stop had an excellent run in its first 5-6 years of existence. However, as more and more retailers upgraded the space and size of their own outlets and more apparel companies opened exclusive outlets offering a larger width and depth of product, this USP seems to have lost its sheen.
With the advent of Shopping Malls that offer multiple brand choices, department stores such as Shoppers Stop have to reinvent their USP or else they are likely to lose business to exclusive stores of the same brands operating in the same Malls (or others in the close vicinity).
Another example can be in the Durables sector. The opportunity is ripe for start-ups of national or large regional chains offering a wide range of consumer durables (white and brown goods, entertainment electronics, office / home computing and accessories, and small gadgets and home appliances). The USP can be built-up on the line indicated as under.
Thus, to summarize, the emerging organized retail sector offers unparalleled opportunities to entrepreneurs and existing businesses seeking an entry in Retailing. The consumers are open to change, and several USP platforms can be occupied since at present, the “canvas” is more or less blank.
However, the new entrants should carefully strike a balance between what the perceived need of the consumer is and what is financially prudent and operationally feasible from the business perspective.
Having taken a decision for a particular format and its USP, the business managers must periodically review the external developments to assess if the original USP is still relevant and in case the external environment has changed, then reinvent the format and its USP so as to continue to have relevance in the Indian context.
The ability to look at and shop for major national brands under one roof was a major USP and therefore Shopper’s Stop had an excellent run in its first 5-6 years of existence. However, as more and more retailers upgraded the space and size of their own outlets and more apparel companies opened exclusive outlets offering a larger width and depth of product, this USP seems to have lost its sheen.
With the advent of Shopping Malls that offer multiple brand choices, department stores such as Shoppers Stop have to reinvent their USP or else they are likely to lose business to exclusive stores of the same brands operating in the same Malls (or others in the close vicinity).
Another example can be in the Durables sector. The opportunity is ripe for start-ups of national or large regional chains offering a wide range of consumer durables (white and brown goods, entertainment electronics, office / home computing and accessories, and small gadgets and home appliances). The USP can be built-up on the line indicated as under.
Thus, to summarize, the emerging organized retail sector offers unparalleled opportunities to entrepreneurs and existing businesses seeking an entry in Retailing. The consumers are open to change, and several USP platforms can be occupied since at present, the “canvas” is more or less blank.
However, the new entrants should carefully strike a balance between what the perceived need of the consumer is and what is financially prudent and operationally feasible from the business perspective.
Having taken a decision for a particular format and its USP, the business managers must periodically review the external developments to assess if the original USP is still relevant and in case the external environment has changed, then reinvent the format and its USP so as to continue to have relevance in the Indian context.