abhishreshthaa
Abhijeet S
Departmental stores may be a comparatively recent phenomenon in India, with a specially created ambience making shopping an experimental affair. Indeed, we are even beginning to demand places where we can avail the luxuries of spending the whole day in one place, taking advantage of a bouquet of services in which shopping is only a part. So you can browse, window shop, make purchases, break off for a meal, take in some entertainment, and listen to music.
This concept of organized retail marketing, which has caught on like lightning, is really just the creation of a distribution network that cuts out various intermediary costs and creates a much smoother interface between manufacturer and customer.
This organized network which bridges the distance between the manufacturer and the consumer has seen many of the world's leading entrepreneurs successfully walk down a particularly profitable road. With total sales going up to $6.6 trillion, the industry today is the world's largest private industry and accounts for over 8 per cent of the GDP in western countries. And now, it's India's turn.
Today, we stand at the crossroads of a retail revolution. After 50 years of unorganized retailing and fragmented kirana stores with very basic offerings, fixed prices, zero usage of technology and little or no ambience the industry have finally begun to move towards modernization, systematization and consolidation.
Retailing has now become a key growth area. There has been an attitude change in the way the Indian consumer thinks about shopping. What, were and how they buy is now the big question. Over the last decade, there has been a significant evolution in his psyche, a change that has been carefully recorded and documented by behavioral pundits. Although it is most noticeable in large metros, its impact is also seen in small towns.
The change was kicked off by the economic liberalization of the 1900's and accelerated by the media (cable) boom following the Gulf War, when the radical explosion in media images exposed the Indian consumer to the lifestyle enjoyed in more affluent countries. And even within his own country. Earlier, it was the lack of consumer culture along with low incomes that prevented the development of such formats. But economic growth has now triggered off a spending spree, with India's middle and high-in-come population suddenly realizing that they have enough disposable income to go for the good times.
As the low-income base shrinks, there is an ever- increasing expansion of the higher income groups, with a corresponding demand for consumer goods that allows the deeper penetration of high quality and higher priced products. The early indicators of this revolution are the mushrooming of better quality retail outlets, a profusion of brands and various product options. The Indian consumer who can discern a clear value propositions and unbeatable ranges at unbeatable prices served to him on a platter.
The retail industry is now beginning to evolve. Traditionally, most retailers have very localized operations but this nature of the industry is fast changing with the awareness that sources must be developed and a proper merchandising system put in place. The pace of transformation has accelerated and today India has over 12 million retail outlets. As a phenomenon, retail marketing has a radical impact and can bring in new technologies, systems and mindsets. It can improve overall labour, productivity and employment, all in the name of providing the consumer with a better range of products at better prices in a better ambience.
Retail, India's largest industry, is driven by the markets' ability to provide better products in a comfortable ambience at affordable prices. The growth of large multi-brand apparel outlets is one result. These outlets are usually 20,000-50,000 sq ft in size, have their own parking space, and separate counters for perfumes, accessories, men's wear, women's clothing and children's clothing. Some stores also have toys, books, home wear, footwear and music. Some of these retailers have begun to develop a private label brand, to supplement their range and improve their margins.
These have become significant brands in their own right. Similar departmental stores/multi brand outlets are likely to develop into a significant format in the Indian market over the next decade. The players who can make organized retailing an integral part of India will be the ones who reap the benefits at the end of the change process.
The industry however will have to work in tandem with the government and manufactures to build a more positive environment for retail and cater to the demand for better products and retailing from India's first generation of demanding cash rich consumer.
This concept of organized retail marketing, which has caught on like lightning, is really just the creation of a distribution network that cuts out various intermediary costs and creates a much smoother interface between manufacturer and customer.
This organized network which bridges the distance between the manufacturer and the consumer has seen many of the world's leading entrepreneurs successfully walk down a particularly profitable road. With total sales going up to $6.6 trillion, the industry today is the world's largest private industry and accounts for over 8 per cent of the GDP in western countries. And now, it's India's turn.
Today, we stand at the crossroads of a retail revolution. After 50 years of unorganized retailing and fragmented kirana stores with very basic offerings, fixed prices, zero usage of technology and little or no ambience the industry have finally begun to move towards modernization, systematization and consolidation.
Retailing has now become a key growth area. There has been an attitude change in the way the Indian consumer thinks about shopping. What, were and how they buy is now the big question. Over the last decade, there has been a significant evolution in his psyche, a change that has been carefully recorded and documented by behavioral pundits. Although it is most noticeable in large metros, its impact is also seen in small towns.
The change was kicked off by the economic liberalization of the 1900's and accelerated by the media (cable) boom following the Gulf War, when the radical explosion in media images exposed the Indian consumer to the lifestyle enjoyed in more affluent countries. And even within his own country. Earlier, it was the lack of consumer culture along with low incomes that prevented the development of such formats. But economic growth has now triggered off a spending spree, with India's middle and high-in-come population suddenly realizing that they have enough disposable income to go for the good times.
As the low-income base shrinks, there is an ever- increasing expansion of the higher income groups, with a corresponding demand for consumer goods that allows the deeper penetration of high quality and higher priced products. The early indicators of this revolution are the mushrooming of better quality retail outlets, a profusion of brands and various product options. The Indian consumer who can discern a clear value propositions and unbeatable ranges at unbeatable prices served to him on a platter.
The retail industry is now beginning to evolve. Traditionally, most retailers have very localized operations but this nature of the industry is fast changing with the awareness that sources must be developed and a proper merchandising system put in place. The pace of transformation has accelerated and today India has over 12 million retail outlets. As a phenomenon, retail marketing has a radical impact and can bring in new technologies, systems and mindsets. It can improve overall labour, productivity and employment, all in the name of providing the consumer with a better range of products at better prices in a better ambience.
Retail, India's largest industry, is driven by the markets' ability to provide better products in a comfortable ambience at affordable prices. The growth of large multi-brand apparel outlets is one result. These outlets are usually 20,000-50,000 sq ft in size, have their own parking space, and separate counters for perfumes, accessories, men's wear, women's clothing and children's clothing. Some stores also have toys, books, home wear, footwear and music. Some of these retailers have begun to develop a private label brand, to supplement their range and improve their margins.
These have become significant brands in their own right. Similar departmental stores/multi brand outlets are likely to develop into a significant format in the Indian market over the next decade. The players who can make organized retailing an integral part of India will be the ones who reap the benefits at the end of the change process.
The industry however will have to work in tandem with the government and manufactures to build a more positive environment for retail and cater to the demand for better products and retailing from India's first generation of demanding cash rich consumer.