Does India need a unique retailing model?

BRITISH OWNED SPENCER&CO LTD BROUGHT IN ALL UNDER ONE ROOF CULTURE IN METROPOLITAN & SELECT  CITIES/TOWNS DURING THE LAST CENTURY AND PROVED VERY SUCCESSFUL.THE SIMPLE FACT IS ONLY  A SMALL % OF PEOPLE, EVEN TODAY, PREFER TO BUY FROM  MALLS AND SUCH HYPER STORES.ENTIRE CHENNAI TILL LATE NINETIES HAD ONLY ONE SPENCER DEPT STORE.WHEN THE SUPPLY FAR EXCEEDS THE DEMAND THERE WILL ONLY BE CLOSURES.

Thanks for invite Namrata,

Of course India needs own retail model.

What has come in is at best resource and ideas copied, in parts .

I say part copied because we prefer to choose only one's where it is advantage company and never think consumer centric especially if the regulator and consumer protection is weak.

The retail sector is very organized in the developed nations with various retail formats (mall, hypermart, supermarket, etc.). In India, a similar model is being evolved. However, the malls are not doing too well as it is a case of building too many malls too quickly before judging the local demand. As the overall demand is fixed and the malls will only be looking at taking a pie from the existing market, the mall owners need to do a detailed study to understand the local market and how the creation of the mall can lead to shifting of the demand from other retail formats to the mall format.

Malls are generally perceived to be expensive (even though variety of goods are available) and the Indian customer is generally price conscious. Additionally, other retail formats have been catering to the Indian consumer for a long time. Thus, a change in a specific retail format takes time and the malls need the capacity to withstand the time needed for the shift provided the malls are perceived as a utility format and a value for money proposition..... 

Ms. Narmata good topic. I agree with Mr Nattraja and Mr. Ramesh Kandani.

To make a mall successful One should study the following points;

1. Targetted customers. 2. Buying Habits 3. Spending Habits of the people in that area 4. Purchasing power.4. Existing competitors, their SWOT 5. Our SWOT.

Flexible ordering policy.

Products which move very fast in part of city may not move fast in the other part. Likewise in rural places buying habits differ.

Above points should be taken into consideration. Each stores should have different model  There may be common model for rural malls but there should be space to incorporate necessary points for that particular market.

When we open a outlet in the rural area the size of the mall also can be decided depending upon the place.

If u want to be successful rural areas ur packing size also should get reduced to One fourth Kg for Dal  etc., which u pack in 1kg  2kgand 5 kg packs in cities.

I think this is due to lack of proper study of the location where they want to start retailing or big mall. Suppose we select a particular location to start business and we should know the size of the market and share for the products. Assuming the size of the market is 100 lakh and which has contributed by some customer base in that particular segment. Now the new comer is trying to take the existing business with his activities. That means the existing business is divided and shared by all and therefore no growth.

Thanks for the referral Mr.Namrata Pathak.

Yes Namrata I agree with you but the organised retailing is growing at a fast pace then why are the Malls not doing well see today numberless malls are coming accross all over India and here the number of cars are 9 per thousand as compared to 960 per thousand in USA hence only those people who have a neighbourhood mall will walk in or the people with car. at the initial stages it was an euphoria now that is dying down hence the walk ins at malls have fallen and expected to fall further.

Point taken Mr. Vikram, then what is that you will call these kirana's and other stores. And I am just defining things here going by books and thats why I have suggested here that India needs a unique retailing model than which was followed till day.

I dont know if i want to say unique. What i would rather say is an informed model.

We in this country have a tendency to be influenced by the spending patterns of the west. The logic and the driving factors behind western spending are totally alien to our culture. So the retailing model needs to look at the value structure tiwards purchasing that is adopted by a large middle class consumer group.

In addition we tend to overdo things in this country. If one mall proves to be a success story, 200 malls will come up within 20km radius!!! Since those guys made money on this let me also make money is the simple logic used. So there is a lot of supply in terms of sqft mall space but not enough demand. Hence the malls with their atrocious tenancy rates have started being empty.