Thursday, January 17, 2008

Forward Integration In Retail in India

I have typically seen India manufacturers in apparels and even more so in Consumer Durables forward integrate to retail sales and/or service to cover all customer touch points. Lately, this trend has been extended to another industry of stationery and related categories.

We have seen 'Just Linc' exclusive brand outlet (EBO) chain which has an assortment as large as 100 SKUS in a good ambience, ease of shopping and 'try and buy' concept. Tthen in a similar format, there is Pidilite which is promoting 'Hobby Ideas' which is basically an assortment for art, craft and related hobbies.

I am sure, other manufacturers in the same category are also looking at increasing business channels and thereby exploring opportunities in either export or domestic retail. The space is still new and we will have many players to watch.

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