Recently I have come across some unexpected up gradations in the ongoing retail boom in India. Talking about the planned and yet to be implemented changes in Indian retail I can only say that sooner or little later, Indian retail formats and layouts are subjected to be marked obsolete.

Or we can also say, that this might also lead to expose the short-sightedness of Indian marketer.
One more intriguing yet very interesting fact is this, that the big giants are planning things considering the major ups and downs in the ever changing and everyday improving like the economic boost, increasing number of foreign players, changing consumer preferences and statistics which varies in each sphere of India by various means including geographic changes, cultural preferences and then the consumer’s demographic & psychographic information, which itself makes the task of an Indian retailer as diversified as Indian sub-continent. One more area which is given utmost importance by the retailer is ‘Consumer Insight’ and hence they are taking there own sweet time even to start of operationally in our diverse nation.

Formats, Trends and catering to Product Offerings
The changing formats as per the varying trends, differences in terms of geographic set-up and the consumer preferences are one factor for the drastic changes.
Lets take an instance, most of the International Accessory stores are entering Indian markets largely by two means, either they enter through a JV with an existing Indian giant or they set up stores in the large format retail stores like Hypermarkets & Supermarkets. Some even prefer to have there sections/ counters in the Departmental stores and the MBO’s. Now there is a change in the trends and quite noticeable as well, consider this, recently I visited a large retail store in Mumbai and to my surprise few luxury defining brands which are considered to be catering to a high-class customer segment weren’t available. As they claim of their availability only at the exclusive outlets. We can also say that this offers the convenience like that of Telecom Service providers where a customer goes with a determined mindset for the purchase and also the retailer attends the customer with that of a assured sale. We can say it reduces a step in the Sales cycle as the suspect wont even enter your store, only the prospect with a desired product will enter and given the right offering, you get a customer and then the retention practices like loyalty programs and consumer promos start work to strengthen the bond. EBOs of TITAN Watches can be an example for the same. The TATA Group has always followed the similar trend, be it clothing, jewellery or other accessories. Now, we can say that it can be an easier and profitable step for this group as they have origins from within India and hence they have a better know-how and understanding about the market, be it from real state, markets analysis, consumers preferences or anything. However, it would have been a difficult task for a foreign player entering Indian markets.
The one explained above is an existing trend which is growing rapidly in the Indian market trying to highlight the merits of being in city of origin, this is the same thing for which emerging retail giant was put forth Wal-mart and we can say this is the same reason that Wal-mart and Bharti plan to start & grow together.

Now consider this, the current analysis and reports which are based on the present growth status of India retail, the future malls and retail stores are expected to be in a size of 1 billion sq ft and even more which is very unlikely to compete with the existing stores which vary between 300000sq ft.-350000sq. ft. This will not only lead to changes in the way a consumer shops but will also give enough challenge to the retailer to upgrade themselves to larger store formats. The chances of success cannot be measured and put across in figures as of now but the picture of Indian retail is ever improving and is definitely going to stay. The emergence of bigger & better markets will once again create immense opportunities for advertising, outdoor media and create more jobs not only at the higher and middle level but also the store staff as well.

There will be changes in the VM and Display of the stores, so with the competition being healthy the growth will become fast and more opportunities arise for various intermediaries involving agencies like ad, design, concept creations, color & print consultants, outdoor media and many more. This kind of major change in the size of Retail stores will create a need for change across all operational and functional areas of retail structures.
I wish India rocks but my question is, India Rocks is for Urban India or for Diverse India which isn’t very interesting and profitable but still contributes more to the society and to the nation. I know it’s a different scene altogether but very important and crucial for India 2020. Shall discuss more on this in next post. Till then keep reviewing.

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