Indian Retail that had been rocking a year back is facing rocks today; some of it due to circumstances beyond control, but some definitely within control. Based on experience, discussions, talks over the past year……thought that some of these can be listed down….
- Size is becoming relevant – All those large sized expansion over the country; large stores need to be curtailed. Medium & small is the way forward.
- The older single & few location retailers should use the time & opportunity to organize themselves quickly – associations; cartels for purchasing, marketing. Use this opportunity to emerge as a strong force.
- Price Wars shall rule the roost with the big guys undercutting each other. Here everyone would incur losses to get in the famous footfalls!
- Loyalty programs initiated earlier have failed to deliver & shall continue failing miserably particularly those with points. Name of the game is instant gratification.
- Convenience offered by retailers with location shall reign for all daily needs like groceries, vegetables & fruit.
- Retailers will need to forget Advertising & get into POP, research & data shall rule the roost but more important from a catchment perspective.
- Retail brands shall gather momentum, whilst simply manufacturing brands shall continue loosing their sheen.
I am sure some of the major chains with deep pockets may disagree, but will have to tweak some of these for their business plan however robust it may be.
An ideal combination for India would be the hub & spoke retail – city wise; state wise & geographically.
I would love to hear comments on this!