Innovative Ways of Indian Retail
I went to a multiplex last week to watch a movie. Unlike any other movie, this one was special, not because it was a Shahrukh Khan movie, but I saw a new trend in the sale of snacks at movie halls. As soon as I entered the hall, I saw a couple of young men holding popcorn and pancake trays, held by a string which went round their neck. They were going seat to seat to sell the items. When I looked at one of them, as expected, he came towards me and walked past me to explore the chances of a sale. It should be noted that this multiplex is owned by a media company headed by one of the richest Indians.
When we look at the unorganized retail in India, the numerous shops in the street, the thela-walas shouting on the road, the numerous hawkers occupying the footpaths, poor homeless people, especially small kids on red light signals, hawkers at bus terminals and railway stations across the country, many of us tend to have an immediate reaction - how primitive is retail in India?
If the conventional Indian retail is so primitive, why do low cost airlines sell tea, coffee and sandwiches in the airline, exactly the way hawkers sell food in bus and trains? Why do the IRCTC contractors sell food in trains exactly the way individual hawkers sell food in train - seat to seat? Why did the multiplex start selling popcorn and pancakes inside the hall?
We, at Chaupaati, believe that the conventional Indian retail is not primitive. In India, you can buy 5 pieces of nails. There are many shops where you can buy goods worth 50 paise. This makes the Indian retail industry quite competitive in nature than any other retail network, leading to innovative ways of selling.
It will not be surprising if, some day, you see large brands selling their products on traffic signals. Ultimately, with proper legal approvals, it makes lot of sense to save your real estate and AC costs, reach to the customer instead of asking her to come to you, and reach to her when she has nothing else to do. The small kids selling flowers have already understood this.
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Shashi Tharoor says: India is not underdeveloped at all; it is a highly developed country in an advanced state of decay. :-)
The simmilar kind of thought was there in the case of Moser Baer, a company in Optical storage manufacturing. Ther turnover in a983 was Rs.50,000 and now it is Rs.495 Crores. You may get details in INDIA TODAY. DECEMBER 8,2008 ISSUE ON PAGE NO. 26,27.Keep it up, this would surely take you very high.
Amazing observation!!! Many things are pretty simple. Instead of owning the most convenient way of doing things, people tend to make things complicated and makes the foundations weak. And weak foundations are bound to bring things down, be it business or building ;-). Best of all simple ways of doing things tend to be recession proof :-)