Indian Retail Scenario: Organized retailing has exponentially emerged to contribute to the growth of Indian retail sector. It constitutes 3% of the total retail market and expected to grow at a rate of 42% in 2008. According to estimates provided by Technopak, organized retail in India is expected to receive investments of $25 billion, taking the size of modern retail to $75 billion by 2011. These investments imply that share of organized retail will grow from the present 3 % to approximately 15-18 % by 2011-12.
With the onset of a globalize economy in India, the Indian consumer's psyche has changed. They are well versed with the concept of value for money, quality and service standards offered worldwide, in turn they are becoming more demanding. These demands are the visible impacts of the Indian organized retail sector. The evident increase in consumerist activity is colossal; it is replicated in money making recess for the Indian organized retail sector. Indian Retail is in the midst of a retail revolution, seen in sprawling number of malls developed from 50 operational malls in 2005 to 250 mall by 20083. Multiple formats have sprung up across different cities. City landscapes are dotted with malls and customers have problems of plenty as far as deciding shopping destinations is concerned.
Table of Contents
A. Indian Retail Scenario
B. Brand Building Process
C. Retail Branding
1. Merchandise Brand Assortment
2. Store Atmospherics
3. Experiential Retailing
D. Brand Building Initiatives of Indian Retailers
Café Coffee Day, Encashing on Lean Hours
Shoppers’ Stop, holistic approach to repositioning
Westside, brand building on Private Labels
Subhiksha, Branding on No Frills and Low Cost
E. Manufactures Building Brands Through Exclusive Brand Retail Outlets
F. Conclusion
Objectives and Topics
This paper examines the evolution of the Indian retail landscape, focusing on the transition of retail outlets from simple product sellers to established brands. It explores the necessity of adopting a multi-dimensional approach to brand building to navigate intensified competition, maintain customer loyalty, and create experiential delight.
- Analysis of the growth and transformation of the Indian organized retail sector.
- The theoretical process of brand building and its application in retail environments.
- Evaluation of key dimensions of retail brand building: merchandise assortment, store atmospherics, and experiential retailing.
- Case study examinations of major Indian retailers and their specific branding strategies.
- Strategies for manufacturers to leverage exclusive retail outlets for brand development.
Excerpt from the Book
Store Atmospherics
Store atmospherics are psychological triggers leading to pleasant shopping experience. These are special sensory qualities present in-store, designed to evoke consumers’ response. Intangible details ranging from lighting, music, visual messaging, air conditioning, crowd management together play an interconnected role in improving the shopping experience, building customer traffic and lifting sales. Baker et al. (2002) find that store environment factors, particularly physical design perceptions, significantly affect consumers’ perceptions of merchandise price & quality, and employee service quality.
Store atmosphere is emerging as social identity appeal; a pleasing atmosphere within the store influences perceptions of socially communicative products in the store, not so much intrinsically rewarding products. From branding perspective, an appealing in-store atmosphere offers much potential in terms of crafting a unique store image and establishing differentiation. Even if the products and brands stocked by a retailer are similar to others, the ability to create a strong in-store personality and rich experiences can play a crucial role in building retailer brand equity.
Summary of Chapters
A. Indian Retail Scenario: Summarizes the rapid growth and economic expansion of the organized retail sector in India, driven by changing consumer aspirations and demographics.
B. Brand Building Process: Outlines the strategic framework for brand development, emphasizing the importance of internal and external touch-points in shaping customer perception.
C. Retail Branding: Discusses the transition from traditional product selling to building retail brands that differentiate themselves through environmental and experiential factors.
1. Merchandise Brand Assortment: Explains how the depth and width of product offerings influence store image and customer convenience in a time-starved society.
2. Store Atmospherics: Details the role of psychological triggers and environmental design in enhancing the customer shopping experience and establishing store personality.
3. Experiential Retailing: Explores how retailers create "total consumption experiences" through themes and entertainment to foster repeat visits and emotional connection.
D. Brand Building Initiatives of Indian Retailers: Presents real-world strategies adopted by major Indian brands like Café Coffee Day, Shoppers’ Stop, Westside, and Subhiksha to revitalize their image.
E. Manufactures Building Brands Through Exclusive Brand Retail Outlets: Examines why manufacturers are increasingly opening their own retail outlets to control the brand image and customer experience.
F. Conclusion: Summarizes the necessity for retailers to integrate functional, emotional, and relationship benefits to establish a strong brand personality.
Keywords
Retail Branding, Indian Retail Sector, Brand Building, Store Atmospherics, Experiential Retailing, Customer Loyalty, Brand Equity, Organized Retail, Merchandise Assortment, Competitive Advantage, Retail Formats, Consumer Behavior, Brand Identity, Strategic Branding, Exclusive Brand Outlets
Frequently Asked Questions
What is the core subject of this publication?
The publication focuses on the strategic shift within the Indian retail sector, where retailers are moving beyond simple product sales to becoming comprehensive, branded experiences.
What are the central themes discussed in the paper?
The central themes include the changing Indian retail landscape, the multi-dimensional process of brand building, and the importance of tangible and intangible store elements in creating brand equity.
What is the primary objective of this research?
The goal is to provide a conceptual model for Indian retailers to understand and implement effective brand building strategies that resonate with modern, aspirational consumers.
Which methodology is employed in this study?
The paper utilizes a synthesis of interdisciplinary studies and analyzes existing academic marketing frameworks combined with case study assessments of prominent Indian retail businesses.
What topics are covered in the main section?
The main sections cover the retail environment, the components of the branding process, the dimensions of retail brand building, and specific industry case studies.
Which keywords best characterize this work?
The work is characterized by terms such as retail branding, store atmospherics, experiential retailing, brand equity, and competitive differentiation.
How does the author define 'Experiential Retailing'?
It is defined as a holistic approach that uses emotional and rational triggers, combining merchandising with service management and entertainment to create a 'total consumption experience'.
What distinguishes the approach of manufacturers opening their own retail outlets?
These manufacturers seek to control the entire functional environment, ensuring their brand image is not diluted or obscured by multi-brand retail settings.
How did major brands like Shoppers' Stop and Westside contribute to this research?
They serve as practical case studies illustrating how large-scale revamping exercises and strategic positioning on private labels can influence customer perception and brand recall.
- Quote paper
- Dr. Vibhuti Tripathi (Author), Anitabh Pandey (Author), 2008, Multi Dimensional Approach to Brand Building - A Conceptual Model for Indian Retailers, Munich, GRIN Verlag, https://www.grin.com/document/117137
