Observations, deductions and feelings fueled by tequila, tea and tobacco

organised retail – the shade of gray

In Ideas, V-A on May 23, 2007 at 01:12

everyone i hear talking about organised retail these days is either black or white – either organised retail will execute a complete takeover of the consumer’s wallet share, or it’ll be a total failure till <everyone has their own sets of conditions depending on where they come from>.

I’ve been following this space from a consumer behaviour angle for over an year now. And though I do not have the numbers to back it, my call on the way consumption patterns would evolve over the next few years atleast is based around 2 points:

1. All the planned, regular expenses (irrespective of low involvement or high involvement purchases) will move to organised retail. However, the unplanned purchases, the impulse buys, domestic stockouts, low involvement – low value – low priority items should still be primarily served by the neighbourhood shops.

2. While the standardised goods and core brands would be available at most organised retail and attract planned purchases for them, its the niche (and relatively high end) segments of the market that would move towards the standalone stores (both kiranas and independent high street stores)

[Incomplete… someone interrupted and I lost my train of thought]

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