Wednesday, August 8, 2007

Chaos works best for Indian retailers from WSJ for subscribers.
India, like nowhere else in the world, proves itself noticeably different when it comes to retailing as well.

Kishore Biyani has built a family fortune by ensuring that the chaos middle class customers are used to finding when shopping can be found in his large retail spaces.

Instead of long clean aisles with swept floors, Food Bazaar has adopted a cluster approach using bins-customers are used to looking down and rummaging, over the tidy stacks we Westerners are accustomed to.

The super retailer Wal-Mart approach is here to stay in India, thanks to the time factor-working mothers don't have time to go to a dozen small shopfronts to do the family shopping. And Biyani has learned to appeal to the 55 million mid-level servants which most mid to upper class families employ, who are responsible for the shopping decisions.

He has even replicated the gray concrete floors of most Indian rail stations and insists that aisles should not be swept too clean or look too orderly.

As the average Indian also likes to haggle, hires triple the amount of workers who roam through the aisles and add to the cacophony of Indian music and announcements of specials, and otherwise interact with his customers.

This is an approach that Western companies-like Wal-mart who is partnering with Bharti, as India regulates against multiple brand retailing direct to consumers. French retailer Carrefour and UK's Tesco are also studying India closely.

OF course, France already has Tati - cheap clothing clustered in bins-geared to the lower classes and immigrants but also considered chic in the 6th and the 16th, who are known to fill carts with cheap underwear and the like.

As so many things Indian, will this trend export to America?

No comments: