What do you think Orgnaised retailers need to learn from Mom-n-Pop stores ( Lessons to learn from norgansied sector)

Even when the value of delivery is just Rs. 200

Our old store people have this knack of identifying the target customer. Once any customer walks in in the first few mins itself they manage to identify if this customer is going to buy or not. once they have decided, they will ensure that the customer goew out buying some thing or the other. For a good customer, they dont mind loosing some money and offer good discounts to retain him.

At the same time they will also maintain one on one relationship wiht all the good customers to ensure that they get the much required loyalty from their customers.

This comes from the ownership that they feel about their store. and they will do all things to get the customer. I think if our sales people also feel the same way in treating customers we will also find a lot of loyal customers visiting our stores.

-Kiran

I think this is where most of the organized retail players miss out on as there are so many customers there on the store it would be practically impossible to take care of their customers and here is where the Kirana stores do good...where they know each of their customers as they are all near by to their shops with this they build relationship with them which makes the customers go for the near by kirana shop than waiting in a long queue in the retail outlet where one doesn't get that service apart from getting everything under one roof, it is that human element that is there in these kiranan shops that attract the customers and they remain loyal to them most of the time..

When you go to any Kirana shop you will not see any tax like vat etc.. being lavied on top of MRP. I think thats why we are seeing a surge in the sales of neighbourhood kirana stores in this recession period you will get all products atleast 4% less than what you can get from any organised retailer. If we are by chance going to a whole saler kind of a retailer then we can expect good discount on top of it.

Our Organised retailers  have to pay all the taxes, there is no escape. But if we can try not to charge it to the customer by using better sources to procure the products. We obviously have the benefit of purchasing bulk products. If we can use some strategies and get better bargains from our vendors, and transfer those benefts to our dear customer by absorbing those taxes that will do a great help tp customers and they will be  very happy to come back to us time and again.

Most of the Kirana stores, generally offer credit to their customers. i think this is some thing that our organised retailer need to seriuosly look into to gain some loyal customers. But care should be taken before giving this credit facility, proper ground work should be done for setting policy matters. I am not very sure on how this is going to work, but this is one area where they have an edge over the orgainsed retailers.   

Typically kirana stores have lesse space, they employ only a few helpers and operate with less inventories. Thus their operational expenses will also be typically low.

in contrast Organsied retailers have huge stores , employing a fleet of slaesmen, and opertaing wiht huge amoutns of inventories.

I dont know how, but if you can reduce on all these counts I think we will succeed in all times to come.

Some time back I heard Vishal was trying to tema up with   Kirana stores in franchise model for expansion. I felt that was a great idea. i dont knwo what happend to that. Even Future grop had plans to start neighbourhood kirana stores in small stores. But I think these kind of intiatives need to be implemented.