Advent of Modern Organised Retail

Retailing in India has undergone major changes in the past decade or so. The proliferation of retail chains is not limited only to the metros; there have been inroads into the smaller cities. Most will consider modern organised retail as a boost to marketing. However, it is also true that retailing is now adding another level of complexity into the marketing domain. The format provides a multitude of choices and therefore the entire concept of brand loyalty is redefined due to the fickle nature of the consumers. A majority of consumers today suffer from attention deficiency syndrome, which makes it difficult for brands to create a strong customer-brand relationship.

The challenge in the multi-retail format is for brands to get the right product placement and visibility. Research suggests that 80% of the purchase decision in made on the floor. Therefore, marketers need to start investing a lot on retail activities. It also puts a lot of pressure on the margins as the manufacturers need to start squeezing them in order to be competitive. Also the entire structure creates a very fragmented consumer base, which haunts marketers when building a marketing strategy in an attempt to reach everyone. Hence it has become important for a company to be precise with the "Target Group" they want to connect to and engage with. Also because of the rising disposable incomes, consumers are more willing than ever to experiment with brands. Therefore, the concept of brand loyalty starts becoming insignificant.



On the plus side the multi-retail format gives every brand a fair opportunity to reach out to the consumer. It gives a push to the brands enabling them to fight tooth and nail in every segment, thereby benefiting the consumer.The advent of such formats has transformed a mere errand into a medium of entertainment and a family experience. To keep up with the organised retail format even traditional stores have started dishing out discounts and improving the shopping experience for their customers. Also, the availability of better technology allows a marketer to craft more impactful communication.

Although the organised retail is only 6% of the overall market (as per this report by ibef) it has been growing manifold. This promises huge potential gain for current and prospective players. However, it is imperative for brands to constantly innovate and evolve to crack the markets. The only way for brands to retain consumers is by scoring highly on the consumer satisfaction index. This will help the brand generate positive word of mouth associations. Another major factor that will help separate the men from the boys is the ability to 'anticipate'. A company such as Apple has been so successful as it has been able to anticipate what the consumers might need tomorrow. They are constantly reinventing themselves and making competition irrelevant even if it is for a short duration.

I believe that in today's generation a sharp media plan will help register the brand in the minds of the consumer. Marketing is more exciting and challenging now than ever before because consumers are spoiled for choice because of higher penetration of brands in the country.