Convenience of catalogue shopping

Overall size of the retail sector in India is expected to touch $427 billion (approximately Rs 1,708 billion) by 2010 and $637 billion (approximately Rs 1,758 billion) by 2015. Rising off the present four per cent, the organised segment’s share will be around 22 per cent by 2010. Through various routes such as joint ventures, tie-ups and franchise agreements, international-companies including Home Retail Group, Wal-Mart, Spar International, Star Bucks and Marks & Spencer have already marked their presence in India. Competition in Indian market is increasing owing to global players’ interest in the country. It’s high time that retailers endeavour to upgrade their existing retail distribution systems by exploring and adopting new marketing and promotional strategies. The emergence of ‘catalogue shopping’ in its renewed form empowers retailers for they can, adopting this channel, strengthen their distribution systems and influence consumers more effectively.

Catalogue shopping: distinctive concept

 In the past, mail-order retailing system was used to capture the minds of consumers by offering wide variety of merchandise in catalogues. Companies publish catalogues, brochures and pamphlets and distribute these along with newspapers or magazines. Or, they distribute these by mail. The consumer used to order products by mail order system, which was often included in the items distributed.  With liberalisation and advancement of tech, traditional mail order system has got more tech-oriented and more organized and has new makeover. Presently, retailers find a new marketing tool in catalogue shopping and they are using it to boost sales and gain profits. Understanding consumers’ needs in the present scenario, retailers make it a point to provide an opportunity of convenient shopping. Catalogue shopping enables consumers, sitting at their places with comfort, buy products of their choice. All they need to do is just going through the contents; select product of their choice; order by phone and the product is delivered at their doorsteps. Catalogue retailing is all about providing a hassle-free shopping experience. Catalogues are available in print forms, which display information about the different categories of products with images, features and price tags, which help consumers in making their choices. Thanks to the advancement of tech: consumers can also browse online catalogs on the website of companies.

Recently, Hypercity Retail India Limited and Shoppers' Stop entered into a franchise agreement with, UK-based Home Retail Group to offer, for the first time, a concept of exclusive multi-channel shopping experience under the brand name of Hypercity Argos. With this format, consumers can shop in three easy and convenient ways such as shopping through catalogue by just sitting at home, visiting stores, or browsing the wide category of products online and place orders by phone. In online shopping, payment is usually made through credit cards. So, consumers can call, click or visit and enjoy shopping while sitting at their comfort places. Mr Andrew Levermore, CEO, Hypercity Retail India Limited, says, "There are over 4,000 products across furniture, home furnishings, kitchen, home maintenance, home entertainment, technology, sports and leisure, personal care, toys and nursery. All the products are available through the convenience of a catalogue or computer in your own home." Last year, Croma Retail, a 100 per cent subsidiary of Tata Sons, introduced the concept of catalogue retailing during a festival season. As part of a promotional strategy, the company distributed free catalogues along with the copy of Times of India. Future Bazaar, India's online shopping site partnered with Big Bazaar, came up with the concept of online catalogue shopping to reach out to areas of limited access with its stores.

Catalogue shopping: a marketing tool

In today's retail scenario, competition is becoming really tough. To beat increasing competition in the market, retailers are investing huge capital in promotional and marketing strategies for attracting consumers, expanding business and generate maximum profits. Targeting individual consumers via both print and electronic channels, retailers are increasingly adopting multi-channel distribution strategies. To attract consumers towards their stores, retailers are adopting new marketing tool of catalogue shopping. If retailers want to survive this competitive environment, they will have to upgrade catalogues with new information about the products and services. Good pricing strategy and eye-catching catalogues stimulate interest amongst buyers and trigger action among consumers.  In USA and Europe, the concept of catalogue shopping has already seen a tremendous growth. However, in India, major players like Hypercity Retail India limited, Future Group (online portal), Future Bazaar and Infiniti Retail, a 100 percent subsidiary of Tata Sons have just ventured into a new initiative of catalogue and online shopping. Mr Ajit Joshi, CEO and MD, Infinity Retail, says, "We used catalogue retailing more as marketing tool than as a retailing tool. We feel that our outputs increased nearly by 20 to 25 per cent, which is quite huge." Retailers are using the catalogue-retailing format more as a promotional method to generate profits in businesses. Mr Sankarson Banerjee, CEO, Future Bazaar, says, "Indians have shown good inclination to be early and widespread adopters of technology and concepts if the value proposition is right. I think we have to rethink our own catalogue formats and distribution mechanisms, rather than adopting a model that has worked in the past in the West." Despite the fact that catalogue shopping is a costly affair for retailers, it generates sales and provides convenient shopping experience. Retailers foresee it as a favourable marketing option.

In India, the concept of catalogue retailing is still in a nascent stage. Indian consumers are keen to go out for shopping for they want to have the touch-and-feel experience of the product by walking from shop to shop. Mr Joshi, says, "Worldwide, there are companies that use catalogue shopping as a retailing tool. But, I don't think that India is, at present, mature in catalogue shopping. In today's competitive environment, retailers should focus more on upgrading the distribution channels by making use of the latest technology and provide an integrated shopping experience to customers. Catalogue shopping, as a marketing and promotional tool, will help boost sales in the longer run.”

Scope of catalogue shopping

In India, the concept of catalogue retailing is quite promising. These days, people find it difficult to spare time out of their busy schedules and go shopping in malls or stores. In a country like India where heavy traffic jams strains the mind, people would prefer avoiding travelling from one place to another. Emerging concept of catalogue shopping is, if not a boon, a good opportunity to consumers for they can now enjoy, sitting at home, unique shopping experience. The most popular shopping channels offer various opportunities to consumers: visiting stores, browsing the catalogue and shopping online. In developed economies of the world, the concept of catalogue shopping has already achieved huge success. According to recent market survey, the US market is estimated at $180 billion (approximately Rs 720 billion) while the European market is pegged at around Euro 50-billion (approximately Rs 3,100 billion). However, Mr Levermore believes, "India is in an extremely dynamic phase of change. Our consumer habits are changing more rapidly than ever before. Catalogue along with Internet shopping is certainly going to be part of the future. We are just getting there first." On other hand, Mr Chitranjan Dar, Chief Divisional executive, ITC Limited, says, "The consumer in India likes comparative shopping and wants to be ' sure' of the look and feel. It will therefore take a while for the concept to catch on. However, it does offer to retailers an alternative format and I am sure a niche segment is ready for it. But, one has to be careful about categories. Low investment home improvement products for instance should find it as an attractive channel." Increasing penetration of organised retailing is influencing retailers toward upgrading retail distribution systems in order to provide hassle-free shopping experience. Retailers should endeavour to focus on upgrading the technology and provide end-to-end shopping experience to retain existing consumers. They will have to come up with well-built promotional strategies to overcome challenges in the competitive environment. According to industry experts, the concept of catalogue retailing has already gained success in overseas country. As far as India is concerned, we should presently go for ‘wait and watch’ situation.