Is the Retail Graveyard ever a possibility?
Did I read right? Retail graveyard?Sure Gujarati consumers may be shying away from a few organised retail stores. A few may be shutting down. Sure the ones that have shut down should surprise us. And sure, the Gujarati consumer may have a consumption pattern a tad different from the rest of us. But is that reason enough to write organised retail's obituary in India?
Far from that, organised retail will only grow and what you now witness is the 'pangs' of that growth. Stores that can't be efficient in their operations and therefore have to pass those inefficiencies to consumers as higher prices will shut down. In fact they must.
Ever heard of 'Survival of the fittest'? In Industry lingo, that's called consolidation.
Comments
i dont quite understand the significance of 'a gujrati consumer' in ur article. but , i know for a fact that gujratis can spend more money than the rest of the world perhaps, yet they are rational buyers. they will pay if they find they get the value for money. thats y its not always possible to woo gujratis into buying what marketers want us to buy. given a chance, a gujrati Bania may enter into ur store and teach you how to run it.:) gud day!