Outlets for Store Brands?

Since my blog is my musings, I thought of taking the liberty to write top of the mind stuff....so while analyzing a case yesterday, I began to think of multi brand apparel retailers in india. Frankly, at the moment I can't think of many, except that most brands would have a full price format as well as an outlet format.


So, while India is constantly discussing multi brand retail and FDI etc., I am thinking is there a precedent of multiple formats for apparel by the same retailer and for similar merchandise. I mean you could have a separate format for plus size clothing etc. but would you not liquidate your out of season merchandise through different formats - especially the large format department stores? So what are the trade offs in this. My professor was discussing that the brand would be liquidated but I say if Nike can have a Nike discount store and all premium brands have outlets then why not store brands? Is India ready for store brands outlets or is it just a figment of my creativity?

Retail in India - Some Basic Concepts

I touch upon a conceptual issue in the understanding of retail in India. Everywhere I go to teach, there is a lack of clarity and some difference of opinion on concepts like

• Organised and Unorganised retail in India - the definition and distinction, 
• Modern and Traditional Reail
• Industry Status to Retail In India (" Retail is not an Industry ? No Ma'm. thats not possible...")

My thoughts - Like any other organised sector, if the firm owners pay taxes, they are a part of the organised space, and if not , then unorganised. Now , naturally, simplicity leads to disbelief (in my classes at least). But, being simplistic again I refer to Wikipedia which says...
"Organised retailing, in India, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the publicly traded supermarkets, corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses."


Modern and Traditional Retail are therefore easy to understand...I guess these terms came up a few years ago when organised retailers woke up to the fact that competition to them is not only from other organised players but also any player which sells in a modern environment (planned layouts and store presentations). So,there...the distinction...And as oft quoted, of all the retail sector, only 5% might be organised, but about 10-12 % would be modern.

And yes, Retail does not have an Industry Status in India.. Even in the current budget, there is a discussion on the same. Click here

So yeah, Retail in India has a long way to go , but so does conceptual understanding and awareness.

Perils of Underestimating Indian Consumers (In the past)

Legend has it that in 1930, Maharaja Bhupinder Singh felt slighted at the British Rolls Royce company’s refusal to accept an order from him for a new Rolls Royce car. Reacting to the refusal, the Maharaja put some of his old Rolls Royce cars (amongst the 24 he had at one point of time) to work hauling garbage, dung and filth in Patiala city to the chagrin of the all-powerful British ruling establishment who quickly prevailed upon the Rolls Royce Company to comply with the Maharaja’s wishes.

 My epistle on whether Indian consumers are as demanding and what if they were will follow soon. Also , a personal experience with Mercedes Benz India ....

Keep coming back and tell me what you think.