The retail power boosting Indian economy
With the changes in the consumer behaviour and consumption patterns along with a large number of brands trying to grab the consumer's share of mind, retail has grown up to become an important part of the lives of its audience.
THE OVERWHELMING acceptance of modern retail, increasing expectations and changes in the consumption attitudes and behaviour of the Indian population has given way to the organised retail sector in India. With the entrance of several players into the retail space, the sector is growing to emerge as one of the fast paced and dynamic industries accounting for around 10 per cent of the country’s gross domestic product and around eight per cent of the employment opportunities at present.
The retail revolution which started with the objective of providing ease of shopping to the targeted consumer base has grown up to be a part and parcel of the lives of these consumers. With a five per cent share in the overall retail market, organised retail has become a competitive setup with various players following different strategies to woo the customers towards themselves.
While the growth of the retail sector in India is still at a nascent stage with the maximum penetration in the urban India, the highest growth is seen in the two sectors namely food and groceries and apparel having a share of 54 per cent and seven per cent respectively in the retail pie.
Organised retailing in the apparel industry includes the existence of hyper markets, shopping malls and own chain of retail outlets which attracts a customer base, primarily from amongst the youth which has changing brand preferences, however, the preference of branded over local products. Different players are following different routes to reach the audience with varying needs. While players like Big Bazaar follow the route of providing the services at the least possible price with their tagline being ‘Is se sasta aur accha kahin nahi!’, others like Shopper’s Stop are the store house of apparels available across various brands. Branding across own chain of retail outlets provides the accessibility towards the niche target audience specifically interested in your brand.
While retailing in the apparel industry still has a certain amount of loyalty involved owing to the involvement of brands and similar products available across retail stores, the food and groceries sector highly works on the basis of proximity and availability factors. This is meant to emphasise on the fact that in case of two retail groceries stores located in the proximity area, it is the availability factor which makes one retail store win over the other. Furthermore, local kirana stores still have a lead owing to the valuable trust factor and bond that has been built over years. However, the scenario is changing owing to the experience, variety and distribution provided by the organised sector, specifically in the urban and semi urban areas and soon spreading to other regions.
The growth potential and the increasing skew towards the sector emphasises on the importance of high level of branding and promotional activities to be carried out across the sphere of retail market. Brand promotions and point of purchase material are increasingly used by the retail players to communicate effectively with the target audience. Customer engagement and relationship building holds the key for customer retention. It is not just the brand that is brought by the consumer but an entire experience which includes the ambience, experience with the sales force, services etc which grabs the customers’ eye and expectations. Hence, below the line activities like contests, event promotions and canter activities on one hand, and point of purchase promotions on the other hand, are gaining grounds to establish a link with the consumers and reach them at all the possible places of interaction.
Thus the traditional retail giving way to the new modern format is all set to grab a greater market share with a growing lot of innovations in communicating and engaging with the audience and in providing a valuable experience to them along with the brand.
While the growth of the retail sector in India is still at a nascent stage with the maximum penetration in the urban India, the highest growth is seen in the two sectors namely food and groceries and apparel having a share of 54 per cent and seven per cent respectively in the retail pie.
Organised retailing in the apparel industry includes the existence of hyper markets, shopping malls and own chain of retail outlets which attracts a customer base, primarily from amongst the youth which has changing brand preferences, however, the preference of branded over local products. Different players are following different routes to reach the audience with varying needs. While players like Big Bazaar follow the route of providing the services at the least possible price with their tagline being ‘Is se sasta aur accha kahin nahi!’, others like Shopper’s Stop are the store house of apparels available across various brands. Branding across own chain of retail outlets provides the accessibility towards the niche target audience specifically interested in your brand.
While retailing in the apparel industry still has a certain amount of loyalty involved owing to the involvement of brands and similar products available across retail stores, the food and groceries sector highly works on the basis of proximity and availability factors. This is meant to emphasise on the fact that in case of two retail groceries stores located in the proximity area, it is the availability factor which makes one retail store win over the other. Furthermore, local kirana stores still have a lead owing to the valuable trust factor and bond that has been built over years. However, the scenario is changing owing to the experience, variety and distribution provided by the organised sector, specifically in the urban and semi urban areas and soon spreading to other regions.
The growth potential and the increasing skew towards the sector emphasises on the importance of high level of branding and promotional activities to be carried out across the sphere of retail market. Brand promotions and point of purchase material are increasingly used by the retail players to communicate effectively with the target audience. Customer engagement and relationship building holds the key for customer retention. It is not just the brand that is brought by the consumer but an entire experience which includes the ambience, experience with the sales force, services etc which grabs the customers’ eye and expectations. Hence, below the line activities like contests, event promotions and canter activities on one hand, and point of purchase promotions on the other hand, are gaining grounds to establish a link with the consumers and reach them at all the possible places of interaction.
Thus the traditional retail giving way to the new modern format is all set to grab a greater market share with a growing lot of innovations in communicating and engaging with the audience and in providing a valuable experience to them along with the brand.
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