We have already seen the diversity and the extremity of the Indian Retail Market. We would like to discuss some of the factors that will help in opening or launching nationwide chain of stores. You should first read and understand the consumer spending habit across the most lucrative Indian states on Food and Non-Food items and how they rank against each other. Again, just because UP ranks number 1 in the rank, you can’t go ahead due to the wide geography making it little lesser lucrative market. [Not to forget the local politics ;-)]
However, we have other deciding factors that will help you in your rollout strategy,
Store Format – Store formats, layouts, positioning and other relevant aspects should be in line with the identified target market and customer segments.
Location & Selection – Locations (state, district and center) with a well-defined
catchment area and the sales potential of the identified region. Finally, Ease to serve – the total cost [minimized] and effort required to serve the catchment area.
Logistics & Reach – An optimal network with intermediate storage points, warehouse rationalization, ideal inventory levels at each node and an appropriate transportation mix needs to be designed.
Product Mix – should be in line with customer expectations, needs and aspirations, which vary significantly across segments.
Promotions & Advertising – The design of promotions, offers, events and loyalty
programs to increase awareness on the store, its products and benefits to customers in the catchment area is important. Try to use the channel with which you can major the effectiveness of the Ad campaign.
Value Added Services – Additional services at stores will drive significant
customer footfalls in rural areas. As such, it is useful to identify and set up additional value-added services such as clinics, play areas, banks, restaurants etc.
Your objective must be to have a structured approach that addresses each of these dimensions. Got more to add ?
Related Reading:
Elements that determine the consumer shopping experience.