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Marketing Management | "Organized Retail - Where is it All Heading?"

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Organized Retail - Where is it All Heading?

- by Shekhar Arya *

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Page - 2

And the talk of FDI and Wal-Mart's entry into India (with a tie-up with Bharti Group) at least fail to worry Mukesh Ambani, who recently made a statement that the market is big enough for 6-8 large players to survive well.

The manufacturing to retail concept will simply have two entities taking part in a buying process - the Manufacturer (-cum-seller) and the consumer. No whole-saler, distributor or retailer. Thus, all their margins will stand eliminated! And the company can provide its customers with cheaper products.

In plain words, the kirana stores next-door stand to lose out, or even face closure.

What is Driving us to these Biggies?

But what is it really that is attracting the Indian consumers to these stores, other than of course low prices: -

  • The first thing that comes to mind is the kind of shopping experience provided by these stores. Each store has ample space to move and shop around.

  • Soothing music, clean air cooled environment and young trained employees to guide you.

  • Add to that the convenience of comparing a wide variety of products all of which come directly from the company (no fear of fake goods).

    And last, but not the least, is the fact that everything from clothes to crockery to FMCG goods is available under one roof. There is simply no need to go from one shop to another to buy different kinds of goods.

    Whats UP!!

    Well, to conclude, the Wal-Mart entry may have its hiccups, Mukesh Ambani and Kishore Biyani may have their worries on the next moves, the middlemen may not be too happy with the way things are shaping up - But there will be one winner all the way - CONSUMER!!!

    Concluded.

    * Contributed by: -
    Shekhar Arya,
    MBA 1st Year,
    Department of Management Studies, IIT Roorkee.

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