Whether it be the attacks on Reliance retail stores in UP and West Bengal or mom-n-pop stores shuddering at the thought of Wal-Marts dotting the India landscape, Davids have been fighting Goliaths for aeons.
Size usually wins the day but there have been exceptions in history, and folklore. But what if besides good and evil, the face-off was also one between the locals (represented by the small and unorganised entrepreneurs) and aliens (embodied by the big MNCs)?
The narrative then may also be read as the story of Ravana ( read the MNCs), who is out wiping out his closest competitors, the Devatas, off the shelves. Sura Inc thereafter bought peace by restricting itself to local markets and leaving the global markets to Asura products. The manav consumers had the Lankapati drooling. Like the middle-class market of today’s India, they promised dollops of profit. Narayana too eyed the manava market. He got a headstart on Lankapati by forging a joint venture in Ayodhya.
Though Asura Inc had made some inroads, it had been unable to dominate the new market. The manavas were finicky customers. Also, even the existing customer base was looking for alternatives. As happens with a monopoly, consumers had long ceased to be the focus of the company.
Not only were the products substandard, customer care too was appalling. The consumers, be they the rishis or the vanaras, had no choice and hence had to suffer high-priced, poor-quality goods and services silently. Then came along the new kid on the block. Groomed by Dasaratha as heir-apparent, a board dispute cost him his seat in Ayodhya Inc. But Ram did not let his training go waste. He and brother Lakshman had spent years exploring and understanding the bottom of the pyramid (BoP) market, and pioneered the BoP protocol:
Engage in deep listening and mutual dialogue with poor communities.l Co-discover and co-create new business opportunities and business models embedded in the local cultural infrastructure.
Co-design and launch BoP businesses that generate mutual value for all partners.The brothers had earlier thwarted Ravana’s forays in their neighbourhood. Greenhorns, Raghuvir and Lakhan had grounded to dust Dashanan’s ace managers like Marich, Subahu and Tadaka. With Bharat in charge of day-to-day operations, Ram decided to utilise his days out of office in probing virgin markets and testing his theories and skills.
Unlike the Lankan, the Prince of Ayodhya was short on cash and wasn’t the M&A type. Instead, he believed in building alliances through the franchisee model. He shared his technology and expertise with the local manufacturers, who retained independence and could use his brand name if they adopted Ayodhya Inc’s quality control and corporate governance rules. The products were adapted to local tastes.
Also, local talent was encouraged. Be it the hardworking manager Pavanputra or engineers Nal & Neel. Local capitalists like Sugreev not only bankrolled the operation but also worked for the company. Local participation ensured that competitors were fought and contained at regional levels.
Ravana committed the fatal error of ignoring his neighbourhood and concentrating on distant markets with big bucks. Plus, he forgot the basics and thought brand name was enough of a selling point. By the time he woke up to the emerging challenge it was too late. Disgruntled director Vibhishan had switched companies. He and old Asura foes, the Devatas, with their state-of-the-art tech helped Ram take over Asura Inc.
Small entrepreneurs, many of whom would have read this epic umpteen number of times, need to adopt it. They should realise that if they join forces, improve customer care and stop trying to make a fast buck, they can give biggies like Reliance & Wal-Mart a run for their money. The giants will succeed in abducting Sita (customers) by masquerading as well wishers (quality products at lower prices). The local traders will have to form a vanar sena on their own for the rescue act, for there will be no Ram this time around.
Local traders will have to control their urge to chase the swarna mriga (golden deer of short-term profits) and give the customers low-priced quality goods and better service. If Reliance retail can have India Inc making exclusive brands just because the companies feel that it will get them captive consumers, the local traders can have these companies doing a Vibhishan and dumping Big Retail for mom-n-pop stores if they can ensure more footfalls.
The profit margins may have to be pared, but then something is better than nothing. An advantage they have right now is access to the bottom of the pyramid, which the MNCs are trying hard to get.
Symbiotic relationship with the customer is the Rambaan for victory. Shabri, Sugriva and Vibhishan are the better-known names with whom Ram shared the fruits of labour. The small retailers must take heart from the conquests of Amul & Lijjat and get on with the job before its too late. Their move now will decide whether it’s Diwali (boom) or diwala (bust) for them
Source : http://economictimes.indiatimes.com/The_retail_Ramayana/articleshow/2391704.cms
Size usually wins the day but there have been exceptions in history, and folklore. But what if besides good and evil, the face-off was also one between the locals (represented by the small and unorganised entrepreneurs) and aliens (embodied by the big MNCs)?
The narrative then may also be read as the story of Ravana ( read the MNCs), who is out wiping out his closest competitors, the Devatas, off the shelves. Sura Inc thereafter bought peace by restricting itself to local markets and leaving the global markets to Asura products. The manav consumers had the Lankapati drooling. Like the middle-class market of today’s India, they promised dollops of profit. Narayana too eyed the manava market. He got a headstart on Lankapati by forging a joint venture in Ayodhya.
Though Asura Inc had made some inroads, it had been unable to dominate the new market. The manavas were finicky customers. Also, even the existing customer base was looking for alternatives. As happens with a monopoly, consumers had long ceased to be the focus of the company.
Not only were the products substandard, customer care too was appalling. The consumers, be they the rishis or the vanaras, had no choice and hence had to suffer high-priced, poor-quality goods and services silently. Then came along the new kid on the block. Groomed by Dasaratha as heir-apparent, a board dispute cost him his seat in Ayodhya Inc. But Ram did not let his training go waste. He and brother Lakshman had spent years exploring and understanding the bottom of the pyramid (BoP) market, and pioneered the BoP protocol:
Engage in deep listening and mutual dialogue with poor communities.l Co-discover and co-create new business opportunities and business models embedded in the local cultural infrastructure.
Co-design and launch BoP businesses that generate mutual value for all partners.The brothers had earlier thwarted Ravana’s forays in their neighbourhood. Greenhorns, Raghuvir and Lakhan had grounded to dust Dashanan’s ace managers like Marich, Subahu and Tadaka. With Bharat in charge of day-to-day operations, Ram decided to utilise his days out of office in probing virgin markets and testing his theories and skills.
Unlike the Lankan, the Prince of Ayodhya was short on cash and wasn’t the M&A type. Instead, he believed in building alliances through the franchisee model. He shared his technology and expertise with the local manufacturers, who retained independence and could use his brand name if they adopted Ayodhya Inc’s quality control and corporate governance rules. The products were adapted to local tastes.
Also, local talent was encouraged. Be it the hardworking manager Pavanputra or engineers Nal & Neel. Local capitalists like Sugreev not only bankrolled the operation but also worked for the company. Local participation ensured that competitors were fought and contained at regional levels.
Ravana committed the fatal error of ignoring his neighbourhood and concentrating on distant markets with big bucks. Plus, he forgot the basics and thought brand name was enough of a selling point. By the time he woke up to the emerging challenge it was too late. Disgruntled director Vibhishan had switched companies. He and old Asura foes, the Devatas, with their state-of-the-art tech helped Ram take over Asura Inc.
Small entrepreneurs, many of whom would have read this epic umpteen number of times, need to adopt it. They should realise that if they join forces, improve customer care and stop trying to make a fast buck, they can give biggies like Reliance & Wal-Mart a run for their money. The giants will succeed in abducting Sita (customers) by masquerading as well wishers (quality products at lower prices). The local traders will have to form a vanar sena on their own for the rescue act, for there will be no Ram this time around.
Local traders will have to control their urge to chase the swarna mriga (golden deer of short-term profits) and give the customers low-priced quality goods and better service. If Reliance retail can have India Inc making exclusive brands just because the companies feel that it will get them captive consumers, the local traders can have these companies doing a Vibhishan and dumping Big Retail for mom-n-pop stores if they can ensure more footfalls.
The profit margins may have to be pared, but then something is better than nothing. An advantage they have right now is access to the bottom of the pyramid, which the MNCs are trying hard to get.
Symbiotic relationship with the customer is the Rambaan for victory. Shabri, Sugriva and Vibhishan are the better-known names with whom Ram shared the fruits of labour. The small retailers must take heart from the conquests of Amul & Lijjat and get on with the job before its too late. Their move now will decide whether it’s Diwali (boom) or diwala (bust) for them
Source : http://economictimes.indiatimes.com/The_retail_Ramayana/articleshow/2391704.cms