bonddonraj
Par 100 posts (V.I.P)
Retail India-Cause and Effect
As we all know brand management is planning and strategy to create a unique
identity of a generic product with the psychographic and mind-set of consumer.
Packaging, Quantity and concentration of ingredients are all consumer usability
and accessibility focused. There are about nine million small grocery shops in
India whose involvement with company is limited to selling and conveying the
offerings to the consumers. These family run shops cover nearly ninety-five
percentage of the market and handle the large part of distribution with
distributors, C&F and stockiest.
Retail will grow, clear evidence by TATA, working with Australian retailer
Woolworths to source consumer electronics products for its new business,
known as Infiniti Retail. Reliance Industries announced plans to invest $5bn
creating a chain of hypermarkets and back-end retail services across the country
and UK supermarket chain-Tesco joint venture talks with Indian conglomerate
Bharti further supported the fact.
Breaking the limitation of cash-and-carry and franchise or license operations of
foreign multiple-brand retailers in India, Bharti went on to strike a deal with U.S.
Wal-Mart Stores Inc.
The exponential expansion in retail market shows its cascading effect on various
industries. To cover various tier two and tier three cities and towns [across the
country], reaching out to prospective consumers in these cities is high on the
agenda of most retail companies as they consider market presence in these cities
and towns key to their growth and profitability. As such, many retail companies
are investing in technology that will help support their expansion into these new
markets. IT revenue from the retail segment, which totaled US$253 million in
2006, is expected to grow at a compound annual growth rate (CAGR) of 44
percent to reach US$1.07 billion by 2010.Following the trend retailers considered
supply chain management (SCM) and inventory management their top strategic
focus areas, thus fuelling the demand for enterprise resource planning (ERP)
systems.
Real estate is also making match with the pace of retail by tuning the life style of
consumers. Specialty Malls, a new retail buzzword which is likely to dominate
the Indian retail market now onwards. With a huge influx of sparkling malls
with finely tuned marketing strategies mushrooming in cyber cities like Gurgaon
and Noida, the mall mania has certainly gripped every shopping enthusiast.
Further the Wadia Group, one of the oldest companies of corporate India, has
plans to develop 8-10 luxury malls over the next 10 years in 50:50 joint venture
with Simon Global Ltd. These shopping centers would feature world class
brands, restaurants, and entertainment zones among others
With the competition growing fiercer in Indian retail sector, specialty malls are
resetting the trends and transforming the fundamental activity of shopping into
a lifestyle statement
On the other hand all financial companies are endorsing the buying capability of
consumers by providing loans. French bank Societe Generale is expanding its
Indian retail operations. The bank plans to lend billions of rupees in the next
couple of years to fund large consumer purchases like cars, and offer personal
loans. “FAMILY CREDIT” is the first move to play the whole game plan. The
aggression in the finance sector can be seen in the many global banks, including
HSBC, Standard Chartered Plc and Citigroup are expanding their lending
portfolio in India through domestic finance companies to overcome restrictions
on branches imposed by the RBI. India's surging economy has boosted spending
power, and the retail sector is worth an estimated $250bn (£140bn).
Let’s view it as a strategist, financer will give you money to but a car that has
positioned as a low cost, installment based product, how flexible buying they
have made. But if you see the actual cost to consumer it does include the interest
paid to financer. Now Just calculate the cost (including interest) if you are buying
a product / service in near future.
Even companies has veered the distribution strategy from distributors, stockiest
and shop keepers to retailer which is creating competition from a new dimension
. Easily seen effect of it is “Shelf space war” by big companies to get better and
highly visible space. The dependency of companies on retails for consumer
interaction will shift the brand benefits paradigm from consumers to retails.
Wal-Mart Stores Inc. the world's biggest retailer, has helped push its suppliers to
make those changes with initiatives aimed cutting energy usage and packaging --
and reducing both the retailer's and manufacturers' costs. Procter & Gamble is
one company taking a big step toward reducing its packaging this year with the
launch of concentrated laundry detergent, Procter & Gamble is one company
taking a big step toward reducing its packaging this year with the launch of
concentrated laundry detergent.
The reduction in package size is to place a brand in a lesser shelf space of retail
house which bring benefit to manufacturer and retailer but what about the
usability of consumers, what about the effect on consumers with the increase in
concentration of ingredients in detergent.
China's consumer spend will shift from goods to services while that in India will
be focused on goods, forecasts a report for the year 2015.These goods will
include products in the market, whose in future concentrated extensions-for
instance: Shampoos, detergents, face-wash might cause hazardous effect on
consumers.
Concentrated products means usability in small quantity which means again hit
on profit margins of company. What about those companies whose majority of
products are positioned on the usability factor (x times usage of brand a day will
give you quicker value). It will plant a negative tipping point in the consumers
mind. Again the packaging will be according to convenience of retails, what
about consumer. Companies are loosing there options for consumer brand
position.
In future, the brand position will be replaced by retail position as the increasing
loyalty base of retail consumers will make the companies more dependants on
retails stores for their brands.
As we all know brand management is planning and strategy to create a unique
identity of a generic product with the psychographic and mind-set of consumer.
Packaging, Quantity and concentration of ingredients are all consumer usability
and accessibility focused. There are about nine million small grocery shops in
India whose involvement with company is limited to selling and conveying the
offerings to the consumers. These family run shops cover nearly ninety-five
percentage of the market and handle the large part of distribution with
distributors, C&F and stockiest.
Retail will grow, clear evidence by TATA, working with Australian retailer
Woolworths to source consumer electronics products for its new business,
known as Infiniti Retail. Reliance Industries announced plans to invest $5bn
creating a chain of hypermarkets and back-end retail services across the country
and UK supermarket chain-Tesco joint venture talks with Indian conglomerate
Bharti further supported the fact.
Breaking the limitation of cash-and-carry and franchise or license operations of
foreign multiple-brand retailers in India, Bharti went on to strike a deal with U.S.
Wal-Mart Stores Inc.
The exponential expansion in retail market shows its cascading effect on various
industries. To cover various tier two and tier three cities and towns [across the
country], reaching out to prospective consumers in these cities is high on the
agenda of most retail companies as they consider market presence in these cities
and towns key to their growth and profitability. As such, many retail companies
are investing in technology that will help support their expansion into these new
markets. IT revenue from the retail segment, which totaled US$253 million in
2006, is expected to grow at a compound annual growth rate (CAGR) of 44
percent to reach US$1.07 billion by 2010.Following the trend retailers considered
supply chain management (SCM) and inventory management their top strategic
focus areas, thus fuelling the demand for enterprise resource planning (ERP)
systems.
Real estate is also making match with the pace of retail by tuning the life style of
consumers. Specialty Malls, a new retail buzzword which is likely to dominate
the Indian retail market now onwards. With a huge influx of sparkling malls
with finely tuned marketing strategies mushrooming in cyber cities like Gurgaon
and Noida, the mall mania has certainly gripped every shopping enthusiast.
Further the Wadia Group, one of the oldest companies of corporate India, has
plans to develop 8-10 luxury malls over the next 10 years in 50:50 joint venture
with Simon Global Ltd. These shopping centers would feature world class
brands, restaurants, and entertainment zones among others
With the competition growing fiercer in Indian retail sector, specialty malls are
resetting the trends and transforming the fundamental activity of shopping into
a lifestyle statement
On the other hand all financial companies are endorsing the buying capability of
consumers by providing loans. French bank Societe Generale is expanding its
Indian retail operations. The bank plans to lend billions of rupees in the next
couple of years to fund large consumer purchases like cars, and offer personal
loans. “FAMILY CREDIT” is the first move to play the whole game plan. The
aggression in the finance sector can be seen in the many global banks, including
HSBC, Standard Chartered Plc and Citigroup are expanding their lending
portfolio in India through domestic finance companies to overcome restrictions
on branches imposed by the RBI. India's surging economy has boosted spending
power, and the retail sector is worth an estimated $250bn (£140bn).
Let’s view it as a strategist, financer will give you money to but a car that has
positioned as a low cost, installment based product, how flexible buying they
have made. But if you see the actual cost to consumer it does include the interest
paid to financer. Now Just calculate the cost (including interest) if you are buying
a product / service in near future.
Even companies has veered the distribution strategy from distributors, stockiest
and shop keepers to retailer which is creating competition from a new dimension
. Easily seen effect of it is “Shelf space war” by big companies to get better and
highly visible space. The dependency of companies on retails for consumer
interaction will shift the brand benefits paradigm from consumers to retails.
Wal-Mart Stores Inc. the world's biggest retailer, has helped push its suppliers to
make those changes with initiatives aimed cutting energy usage and packaging --
and reducing both the retailer's and manufacturers' costs. Procter & Gamble is
one company taking a big step toward reducing its packaging this year with the
launch of concentrated laundry detergent, Procter & Gamble is one company
taking a big step toward reducing its packaging this year with the launch of
concentrated laundry detergent.
The reduction in package size is to place a brand in a lesser shelf space of retail
house which bring benefit to manufacturer and retailer but what about the
usability of consumers, what about the effect on consumers with the increase in
concentration of ingredients in detergent.
China's consumer spend will shift from goods to services while that in India will
be focused on goods, forecasts a report for the year 2015.These goods will
include products in the market, whose in future concentrated extensions-for
instance: Shampoos, detergents, face-wash might cause hazardous effect on
consumers.
Concentrated products means usability in small quantity which means again hit
on profit margins of company. What about those companies whose majority of
products are positioned on the usability factor (x times usage of brand a day will
give you quicker value). It will plant a negative tipping point in the consumers
mind. Again the packaging will be according to convenience of retails, what
about consumer. Companies are loosing there options for consumer brand
position.
In future, the brand position will be replaced by retail position as the increasing
loyalty base of retail consumers will make the companies more dependants on
retails stores for their brands.