Saturday, May 24, 2008

Indian Retail Reactive Vs Proactive Expansion

It was two years back when I had written how Subshiska, Foodworld and the local supermarket were jostling for space in an area in bangalore, with all these retailers were in less than 500 m distance from each other. Today when I was back in the same place I saw that another 2-3 new retailers have joined the fight. 'More' of Aditya Birla Group and Niligiris have opened there stores , so with not much increase in the foot fall....

And the same time two years back I went to a new area around 10-15 kms from this organized retail dominated area where there were only a few typical Mom-n-Pop stores serving the consumers who had shifted to that area. And after two years today the area is full of many small shops, be it grocery, clothes or anything which one would need, and all to emphasize all the shops are the small mom-n-pop stores.

This contrast - at one end all the organized retailers are converging to the same area in the city, maybe driven by the same analysis and facts that organized retailer have and the smaller mom-n-pop store entrepreneurs keeping their eyes and ear open to opportunity in a new emerging area ( observation many of the mon-n-pop stores which have opened in the new area are those shop keepers who have shops in other area of the city)....



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