abhishreshthaa
Abhijeet S
Thanks to a massive population and indications of better levels of disposable incomes side by side with awareness emerging, retail is being seen as a massive emerging opportunity in India. Naturally, since retail revolutions took place in the more developed markets much earlier, the feeling is that India can draw from their experiences.
Although, given India's own unique characteristics, expectations are that as the retail scenario evolves (surely rapidly now), the country will emerge with its own retail models as well.
Yet, consultants say that there are enough models out there in the developed part of the world that will find acceptance here, even though they may find some modifications to suit local needs better. The challenge, really, is in the re-invention.
There are certain formats these consultants feel can work in India:
Small stores, with complex but efficient supply chains
Small supermarkets that run on brand variety and tight inventory control
A mix of food and general merchandise stores
Out-of-town shoppatainment complexes
Mid-sized retail propositions within town limits
Small corner outlets with integrated home delivery
Effectively, then, leaving out hypermalls of the US kind, other retail models are possible in India, though a model cannot really be moved across borders piecemeal. What can come in piecemeal, however, is the supply chain management model attached to a broad model that is being transferred.
Again, consultants say that you have to build on what's already there -- you can't just wipe the slate clean and start afresh. And so the likes of catalogue or mail order buying will not necessarily lose significance. Make it more efficient and it can work. However, since in a lot of product categories, the consumer may prefer a touch-and-feel before taking a decision, display outlets sans on-premise stocking can support these kinds of formats.
Take your pick, order and get it all delivered at home. E retailing could also adopt something like this combination. There are no strict rules anywhere, anymore. And rural India? Maybe that's where a modified multi-product hypermart could work, is the opinion. And the best model? No, there are no ideal models - adopt/adapt/develop the best fit from what's out there in the West. And here in India. The bottom-line: there are basic commonalities in retail evolution in any market.
As incomes rise, value additions go up. As value adds go up, retail models gain significance. And then come shakeouts and consolidations. That's the ground reality. You just can't shake that.
Although, given India's own unique characteristics, expectations are that as the retail scenario evolves (surely rapidly now), the country will emerge with its own retail models as well.
Yet, consultants say that there are enough models out there in the developed part of the world that will find acceptance here, even though they may find some modifications to suit local needs better. The challenge, really, is in the re-invention.
There are certain formats these consultants feel can work in India:
Small stores, with complex but efficient supply chains
Small supermarkets that run on brand variety and tight inventory control
A mix of food and general merchandise stores
Out-of-town shoppatainment complexes
Mid-sized retail propositions within town limits
Small corner outlets with integrated home delivery
Effectively, then, leaving out hypermalls of the US kind, other retail models are possible in India, though a model cannot really be moved across borders piecemeal. What can come in piecemeal, however, is the supply chain management model attached to a broad model that is being transferred.
Again, consultants say that you have to build on what's already there -- you can't just wipe the slate clean and start afresh. And so the likes of catalogue or mail order buying will not necessarily lose significance. Make it more efficient and it can work. However, since in a lot of product categories, the consumer may prefer a touch-and-feel before taking a decision, display outlets sans on-premise stocking can support these kinds of formats.
Take your pick, order and get it all delivered at home. E retailing could also adopt something like this combination. There are no strict rules anywhere, anymore. And rural India? Maybe that's where a modified multi-product hypermart could work, is the opinion. And the best model? No, there are no ideal models - adopt/adapt/develop the best fit from what's out there in the West. And here in India. The bottom-line: there are basic commonalities in retail evolution in any market.
As incomes rise, value additions go up. As value adds go up, retail models gain significance. And then come shakeouts and consolidations. That's the ground reality. You just can't shake that.