With increased competition, came the realization that customer is the most important asset for a business. This realization has driven many Indian retailers to embark on various Customer Relationship Management initiatives. The authors take a look at some of these initiatives.
Retailing
in India is, probably, as old as the Indus valley civilization. With a retail
density of 5.5 outlets for every 1000 people and a per capita retail space of
2 sq. ft. per person, India is, truly, a nation of shopkeepers. But organized
retailing, as a professional, service-oriented setup, to provide the consumer
with a whole new shopping experience, is a phenomenon of the 1990s.
The
traditional food and grocery segment has seen the emergence of supermarkets/grocery
chains (Food World, Nilgiris, Margin Free, Apna Bazaar), convenience stores (ConveniO,
HP Speedmart) and fast-food chains (McDonald's, Domino's). In the non-food segment,
the foray has been made into lifestyle/fashion segment (Shoppers' Stop, Globus,
Lifestyle, Ebony, Westside,Piramyd), apparels/accessories (Pantaloons, Reebok),
appliances/consumer durables (Viveks, Jainsons, Vasant, BPL Gallery, Videocon
Plaza) and drugs/pharmacy (Health & Glow, Lifespring). Also, many conventional
stores are upgrading themselves to modern retailing. Companies, triggered by competitive
environment, are entering the retail sector directly to ensure exclusive visibility
for their products.
According
to a study done by AT Kearney, organized retailing accounted for only Rs. 20,000
cr in a market size of Rs. 400, 000 cr in 2000. Organized retailing has challenges
galore—real estate is expensive, legal frameworks require multiple approvals,
building laws are unfavorable, restrictions on store timings, lack of industry
status etc.
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