RETAILING STRATEGY AT LOCAL LEVEL: A STUDY OF KANPUR RETAIL MARKET
ANCHIT AGARWAL
RESEARCH ASSISTANT, DEPARTMENT OF HUMANITIES & SOCIAL SCIENCES, HBTI KANPUR
EMAIL: AAHBTI@REDIFFMAIL.COM
VINOD KUMAR YADAV
ASSISTANT PROFESSOR, DEPARTMENT OF HUMANITIES & SOCIAL SCIENCES, HBTI KANPUR
EMAIL: DR.VKYADAV@YAHOO.COM
ABSTRACT
The Indian Retail Industry is the fifth largest in the world comprising of organized and unorganized sectors. This industry is one of the fastest growing industries in India, undergoing a transformation from unorganized sector to organized sector. This transformation phase is observing the crucial role of IT in retail businesses leading to e-retailing. The emergence of e-retailing seems to have come up as an alternative to
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The city of Kanpur, formally known as the Manchester of the West, has always been a initiator in opening new vistas whether in battle field or businesses arena. The legacy is still prevailing with present businesses putting lines of benchmarks before multinationals in many businesses with newer and innovative practices. The business hub also started adapting innovative strategies to cope up with the e-retailing pressure and the stir created by the online retail giants like Flipkart, Snapdeal, Amazon etc. This city seems to regain its lost position in business arena through successful businesses like saddelry, jewellery, tannery, sweets etc. at national and international …show more content…
The sales personnel / shop owners told during the discussions that the e- retailing has definitely affected the market and the people have developed high negotiation skills over a decade after seeing the offers online regarding various electronic gadgets and electronic equipments. This increasing competition has also forced them to keep their stock update at all times to meet the needs of the consumers. Often there are situations when the product demanded is not available for sale at the counter but only at the online portals. This situation forces customer to wait for some days depending on delivery schedule. Some of leading e-retailers have also started taking preference delivery charges additional to cost. This has started embarrassment to customer. This situation is usually favorable to retailers. The Kanpur retailers are smarter in this situation and provide product to customer within few hours or day. The strong retailer nexus play a crucial strategy at local level to bind outgoing customer. The after sales service is also a key strategy in electronics retail business. When the service issue occurs in online purchase of electronics products, the retail counter is not able to help the customer and as a result the customer gives bad word of mouth publicity for the counter. In some cases, local distributors have
The consignment model and its robust logistics have set Flipkart apart from other e-commerce sites. Therefore other e-portals should focus on procurement based on demand and its logistics very well. The best things e-portals need to understand is that to be successful in India, they need to be the gods of distribution.
E-commerce/ Online industry is a maturing industry but fails to attract purchase of daily consumer durables due to higher prices and longer fulfillment times. Grocery stores fail to offer a viable substitution due to high prices.
Technology plays a big part of the e-retailing industry. It has many positive qualities that impact the industry. Technology simplifies the purchasing process. Since the industry is web based, it helps eliminate the nuisance of not having products when wanted by having the capabilities of placing orders 24/7 at any computer with web access. Technology will also standardize the purchasing process thus reducing processing costs associated with traditional processing.
Nations, like the people who inhabit them, are all different. Some, like the United States, are at the forefront of technology and development. Others exist as third world nations, where even the most basic necessities are hard to come by. And then there are those which are in the middle, such as India. In the past 20 years, India has grown in the eyes of the global community from a rural, developing nation to a burgeoning global marketing hub. While India had much guidance from the United States and other global powers, the country has still chosen to follow its own path of business and marketing development. This paper is designed to evaluate India's current marketing environment in comparison with the marketing environment here in the US, citing both nation's similarities and differences.
The fast changing macro and micro environment, consumer expectations, and competition has resulted in several changes in the retail sector. Today consumer has more sophisticated expectations of product, service; value and environment that what used to be 3-4 years back. In India the growth of urbanization, increasing youth market with high disposable income and economic liberalization has supported fast growth of organized retail and influencing changes in the retail market.
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
In the case of India, retail industry is witnessing unprecedented growth and transformation (Malini 161). Organized retailing is becoming a norm as opposed to unorganized retailing, which was dominant in the past. For a direct investor from United States of America, who is interested in investing in consumer goods retailing and e-retailing in India, it is important to understand the macro environmental factors which can have a serious impact on the success or failure of a venture. According to Musgrave (38) India is the fourth largest economy in the world and it is expected that by 2050 it will become the most populous country in the world. Since the initial relaxation of barriers and encouragement of foreign direct investment in 1991, retailers have started making inroads into the Indian markets.
It will provide entrepreneurs with a competitive edge that will prove invaluable in helping them seek the opportunity in this unexplored area of business. Through this research project one can study the opportunities and potential for Fast Food Restaurant Services in India. Since not too much of research is carried on in this area in India, there is a huge scope for this market and it could be useful for any budding entrepreneur who is interested in this industry.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
2. Organized Retail: The emergence of organized retail have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people won’t think much while buying and buy more.
As the author of the article concedes, the online shopping has flourished in the past years. Many customer have seen the advantages of e-commerce in the ways of time and money saving. Whit a simple click on the keyboard the goods are uploaded in a virtual cart and from there are delivered to the customer address. Also, the online stores have the opportunity to create a customer database and a customer profile. The customers receive periodic reminders of the new offers and sales via email or mobile phone messages. In the meantime, many classic stores have struggled to maintain the business keep up. According to the article, the brick and mortar stores will implement new features that conduct customers to an easy and pleasant shopping. For instance, the retailers will use the customer mobile phone as a concierge application. The customer will be informed about latest products and their availability. Furthermore, the customer will have the possibility to track needed items inside the store with the help of store mapping and products locations. If the customer will change the shopping list, the app will provide the route to the new item. Also, when a customer will passing a store the app will remind the last customer visit into the store and
Consequently, e-business and especially online shopping is crucial for retail stores. They should provide necessary infrastructure for selling their products online. By taking advantage of e-business not only they can get competitive advantage of online shopping, but the...
Do you remember a time where you overheard a family member or friend complain about receiving the wrong package or not getting one at all after purchasing an item on an online store? Well, I sure have and the process isn 't so easy-going. Some people enjoy the idea of shopping while others may hate the process of buying things. More than often, people try finding the easy route of having to go buy items they need with online shopping. Some may say that online shopping is convenient and less time consuming but they have never taken the time to try it out for themselves because they know the side effects of ordering online. Three main problems that people encounter with online shopping would be receiving the wrong item, dealing with
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.
In today’s era “INTERNET” is playing a significant role in our daily life. People can walk through the internet to one who is actually living on the different side of the planet, can send mails round the clock, search information & even buy things online. With this invention of internet there is a shift in traditional way of shopping. Now there is no need to open a physical store. One can be active at any time and place and purchase products and services. The number of users of internet is increasing day by day which means that online shopping is increasing. Various characteristics of online shopping is making it more convenient for the customers, as compared to traditional way of shopping such as the ability to view and purchase goods and