According to the latest Mckinsey report,organized retail in India will occupy 14-18% of the total retail sector by 2015.Currently it accounts for around 5% only.But the retail boom will sustain provided if retailers will bring in new & innovative formats suiting the Indian consumer.
The report also gives insight the nature of Indian Shopper
- least loyal to a single retailer,
- dislike for pre-packaged fresh foods,
- willingness to pay more for convenience and services but not a premium price for a brand
- demands ethnicity in apparel accessories.
- And, in the absence of quality control, information about the product and trust in retailers, brands serve as a proxy for all these factors.
It is evident that retailers should focus on creating value on a more functional basis than an emotional one.Even though the brand image of the retailer will help,I think it will be the Sales promos , good aisle space,great parking space will be the key factors.
Also note that Indian consumers are willing to shell out a couple of bucks extra for convenience and services,So its high time Big Bazaar to rethink its organized chaos strategy.Read Prof.Ray's view on this.
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