The notion of retailing and shopping has undergone a huge change in the recent past with the advent of modern retailing in the form of shopping malls or Exclusive Stores or Multi Brand Outlets. The large young working population, the changing consumer buying behaviour, growth in organized retailing and its consumption by Indian population are the key drivers for growth in this sector and is attracting more and more businesses in the market.
The Indian retail industry is the largest among all the industries accounting for 22 per cent of the country's GDP. India's retail market is expected to grow at 7 per cent over the next 10 years, reaching a size of US$ 850 billion by 2020. In India, it has come forth as one of the most dynamic and fast paced industries with several players entering the market. Making a shift from the vendor's perspective we have here perspective of the Retailers and Resellers and the retailing form which they think is the best.
Ajaya Kumar, CMD, Park Network Private limited from Noida opines that growing consumerism in India and huge demand from customer is the inertia behind starting a retail format.
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Vinod Mulchandani
Director-Sale ,
Aarvee Computers | Anil Kumar Chaudhury
MD,Maple Computer &
Communication Pvt.Ltd. |
Best Retailing option for Start-Ups
Though the profitability of each format of Retail and its ROl depends on its own relative merits and customer value proposition, for a brand with products suited to different needs and price segments, Retailers need to be involved with multiple activities to maximize its ROI and customer experience. The Exclusive Brand Stores tend to offer the optimal environment to showcase technology while LFRs are growing rapidly and have high penetration in metros.
Vinod Mulchandani, Director-Sales, Aarvee Computers from Mumbai who started his Retail Showroom in 1996 says that Exclusive retailing is the best model because you actually become a domain expert in what you are offering. Also, a customer prefers to buy high end products from flagship store and will not prefer to go to a LFR. He further states, "The most important thing one should take care of while starting a retail format is the ROI, if the ROI is not taken care of the retail venture would die down very soon."
However, Anil Kumar Choudhury, Managing Director, Maple Computer & Communication Private Limited from Odisha opines that for start up ventures it is best to start with a multi-brand outlet where there are products from various brands. Also to establish a retail venture, one needs to do a lot of promotional activities to attract the customers. He further says, "Every year we do four to five road shows, and we do sell around 400 laptops and desktops."
Multi Brand outlets and Exclusive Stores have their own advantages. Multi Brand Outlets gives the customers an experience of all the brands for a single or few product. However, such outlets might not have the entire range from a single brand. The product selling experience is also very different in an exclusive store v/s a multi-brand outlet. Now it is for the customer to decide whether, it makes more sense to prefer an exclusive store where they can experience all the products of a particular brand or a Multi brand outlet.
Top Considerations for a Successful Retail Format
The IT retail industry is changing to capitalize on the central role that technology plays in peoples' lives. Obviously the location plays a very important role when starting a retail Showroom. The location should have maximum footfalls. The brand which is being sold should be among top the three product category. The ambiance of the showroom should be comfortable and attractive. The store should have maximum products on display and the sales person should be trained to provide the best experience and demonstration of the products to the consumers.
Finally...
Different formats of Retailing are preferred by retailers from different zones and with different means. The emergence of new retail formats are being driven by the growth in consumer's income and evolution in lifestyles. Convenience plays a big role in the growth of organized retail, thus, several players are combining old concepts with new formats.
