Get Set Go : Global Brands Reinvented

Planning a shopping holiday? So, where do you intend to go? Does Orchard Road, Singapore, attract your attention, or is the Hong Kong airport one of your favourites? Or, maybe, your loyalty lies with the branded outlets in Dubai? No matter what you need to pick up, be it branded clothes, accessories, electronics, these places offer a wide variety and a fabulous shopping experience, one where you tend to get hooked. Well, its about time you change your location; how about heading towards 'destination India'? What do we hear, a snort of disapproval or a ridiculing chuckle? Well, friends its time for a re-look. The shopping scenario in India is in for a change, and that too in a big way. So, the next time you are planning a shopping holiday, well, that's the place to be in. The roots of change Retailers in India have been working under various formats, majority of them being the mom and pop stores. Brands co-existed in retail outlets and the variety offered to consumers was enough to satiate their desires. Foreign brands co-existed with Indian brands, and the consumers had a wide palate to select from. More recently, the partial opening of FDI has given a green signal to international firms on setting up of exclusive brand outlets in India. Foreign retailers have already begun cashing in on it with well thought out strategies aimed at capitalising on the new revolution. This, obviously, spells a boon for the Indian consumers. With foreign brands available easily, and that too through exclusive outlets offering a world class shopping experience, the shopping scenario in the country is bound to undergo a much-awaited revolution. Foreign brands that existed in multi-brand outlets are now looking at establishing their own outlets. This would spell a world class experience and that too on home turf! The scenario so far Till recently, the Indian consumers had not really attracted the attention of international retailers. The consumer's spending behavior in the country was still evolving as there was lack of exposure. The spending power was limited and the focus was more on savings than spending for a better lifestyle. As a result, even though international brands tapped the little potential that was offered in the country, the need to 'go beyond' was not felt. While foreign brands did exist in India, but in most cases the retail outlets were quite small and the services offered were definitely not comparable to world standards. Products availability was also limited, and the latest and top end products were not introduced into these stores immediately. A number of products that were priced high did not get to see the Indian market at all. So, while the global consumer got a fabulous shopping experience at Orchard Road and the likes, the Indian consumer still had to make do with a 'not as great' treatment. A comparison of the two formats Like the age-old phrase 'every coin has two sides', so is the case with exclusive brand outlets and multiple brand outlets. In the case of a multiple brand outlet a consumer has a wide variety of products and brands to choose from. This facilitates comparison and offers a wide choice to the consumer. On the other hand, there are limitations due to the absence of a complete product range for each brand. The retailer too stresses on selling products that give him the maximum advantage and bring sound profits. In such a situation the retailer might ignore other brands displayed in the outlet. Simultaneously, while the retailer creates a brand identity for himself, the branding of the products is not given as much importance, affecting brand recall in the long run. On the other hand the wider variety definitely works to the advantage of the consumer. In the case of exclusive brand outlets, the brand owner can focus completely on creating and promoting the brand image, which works to the advantage of the brand as it creates a greater brand recall for the consumer. Even if the outlet were a franchised unit, the brand owner would be assured that the retailer would have an effective and aggressive marketing strategy to ensure maximum sales. From a consumer's perspective, an exclusive brand outlet offers the entire product range of a brand, and if a consumer patronises a particular brand he can be assured that all the products would be available under one roof. The consumer would, thus, be offered a world-class shopping experience that would make the entire expedition more worthwhile. What's coming up? Today a situation has been so created that the entire exercise of retailing requires a change. The Indian consumer has evolved, and is more discriminating and demanding. Largely, this can be attributed to a greater spending power, a change in perception and, at the same time, more exposure. With this change of mind-set, a retailer in order to truly satisfy a consumer, must ensure that the product is top-of-the-line, client-friendly ambience of the store, good service together with an excellent overall shopping experience. International retailers have observed the change over the years, and see the prevailing conditions today as the right time to capitalise on the increased spending power of the consumer. It is but obvious that this can be possible only if they offer a world-class shopping experience. Therefore, while most international brands co-existed with Indian brands in multi-brand outlets, a changeover is now imperative. International retailers seek to establish in India exclusive brand outlets that offer a high class shopping experience comparable to the best international retail outlets. The focus is on offering the best ambience, service, product and shopping experience to the Indian consumers. The coming of international players is being attributed to the fact that the consumers in the country have now matured and are satisfied with nothing less than the best. Price of products have ceased to act as a limiting factor due to larger disposable incomes. Foreign brands that already had an exclusive brand outlet in the country are now re-inventing themselves. They are setting up world-class stores that offer an international shopping experience to the consumers. Their stores are getting larger and swankier, with the latest products now available in line with the international launch timing. No matter what the price of the product, these retailers know that the Indian consumers are ready to spend on quality and brands. Time to gear up With this changeover in the retail strategy of international retailers, the Indian consumers would now have the best retailing experience at their doorstep. While this shift would work to the advantage of the international retailers and the Indian consumers, it would also affect the Indian retailer. Multi-brand outlets have existed in India for a long time now. The recent past has also seen certain exclusive brand outlets being set up by Indian retailers. Though these exclusive brand outlets do offer the entire product line of a particular brand along with a distinctive feel, they cannot be compared with the exclusive brand outlets set up by international retailers. With competition increasing and consumers getting a taste of the international shopping experience on their home turf, its time for Indian retailers to re-look at what they offer in terms of products as well as services. And with both national and international retailers now crowning the Indian consumer as a global consumer, it is a definite win-win situation for all shoppers!