After attending my marketing class, I was curious to visit and observe how the new brand retail stores and the local retailer in neighbourhoods are doing. Though, many of us have observed such things earlier as well, but this time with something at the back of mind, I wanted to really observe how the two things are working in India. With that in mind, I just happened to drop in the Reliance Retail store, which recently got inagurated close to my neighbourhood in Delhi. Surprisingly, Reliance chose a village on the National Highway called Mahipalpur to open this store. The first one in this part of area, as far as my information goes. This village is known for seconds showrooms of leading brands in India and as a warehouse for all the major courier companies ,as it is very close to the airport. The store is not big in size, much smaller then the departmental stores we find in malls . Reliance has tried to package it quiet well and I think it has a well laid out interiors and shelves, which gives good exposure of the kind of products available to the consumers. The staff is quite young and most of them try their level best to speak in English, albeit for many its first time in their lives! As far as the shoppers are concerned, I found two types of consumers. The first variety is the middle class and upper middle class office goers who stop enroute to their office or home to get their supplies! Such people are always in hurry and they come in and go out as soon as they are done! I found high level of awarness among this bunch of people, because they know where they would find things that they are looking for . They seem to be sort of regulars here.
The other bunch comes from the village.They form the majority here. The villagers here have good amount of cash with them, but for them this store is sort of disney land! I observed many come and move around the store, pick up things, ask the price and go back! This bunch's behaviour makes one amused! I found one elderly villager talking to the store keeper, about why the apples here are costly and what if he takes apple without the packing that is available in the store. He was surprised that he could not bargain as he could do with the vendor on the street! He probably thought, that the packaging is responsible for the higher price or the apples look clean and polished that is reason for the premium. There was another group of ladies who were just moving from one shelf to another and in the end ended up buying nothing! This reminded me of an article, I read on retail in India. It simply talked that Indian consumer is still confused and really does not know, what he wants, when he visits such type of retail stores! He is still evolving. Considering the fact the majority of Indian consumers are like the villagers I saw and enjoyed, I can agree with that statement. Retail such as this are new pheonmeonea and one finds many interesting people trying to come to terms with what is the "new shopping experience".For one , Indians are used to shopping everyday, that is why the neighbourhood retailers sells so well! He is always a call away and home delivery is always free ,moreover he gives goods for credit. Talking about the neighbourhood retailer or the bania, I was surprised to know that my neighbourhood chap knows that I am at studying at Indore and he knows when I am visiting and when I am not! Every evening, I find many people sitting and talking to him just to pass time and this fellow is trying to entertain all. The buyers and "time passers" ! One lady came back and returned a packet of rice saying that she does not find it good, the chap simply took it back and offered her many other varieties. No wonder, such things are impossible at the retail store such as the Reliance's. He also asked her ,about her inlaws health and when her niece is coming back from abroad. I believe this is his USP! The community feeling that this chap is offering is unsurpassable and I can now understand what my prof at IIM said that no matter what happens ,the neighbourhood bania and the retail stores both have great future in India!
Tuesday, April 15, 2008
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