Organized Retail in India, not for the discerning buyer
I took my family to the Big Bazaar outlet in Chennai few days back. To our dismay nothing looked like a good deal. Apparently our neighborhood Latta stores gives better value for money is the consensus emerging from our home ministry. If I can get something cheaper nearer home, why the hell should I go to these big retail outlets?
If food and grocery retail was bad, eZone, the electronics retail of the Future Group was pathetic when I last visited. Either I did not find what I was looking for, or the item was grossly overpriced, and the store always suffered from lack of options.
I visited Tata’s Croma in T Nagar this evening. While this was much better than eZone, this still was not up to my expectation in terms of price and in variety. I went to the store looking for a laser printer, and all I saw was a grand total of four laser printers, with only one from Canon. All the speakers, headphones, and rechargeable batteries looked clearly overpriced, the only attractive thing being their cover. Croma’s website was, as usual, pathetic. I could find precious shelf space allocated for Croma ACs (it was brand ‘Koryo’ everywhere in Big Bazaar). When I came out to get my bike, I noticed the AC units which keep the showroom cool is by Voltas. And for some inexplicable reason, I do not remember finding a single Voltas AC displayed within the showroom, which by the way is another TATA product. Of course there was no BLUE STAR, OG either. I think Rathna Fan house can do a much better job than this.
My furniture exploration was not any different either. I was looking for a study table. After looking through NITTRA, Stylespa, JFA, Sathya, DAMRO in and around Royapettai, I got my study table done from a small time furniture maker who supplies to these biggies. The price difference was about 50%.
If anything, with their gigantic scale and supply chain, I feel all these corporates could have delivered a much better experience for the consumer. But alas, they have failed miserably till now. The only exceptional area where these folks are doing okay is in the garments business where be it West Side(Tata), or Pantaloons (Kishore Biyani), or the Lifestyle (Gulf based Landmark group), there is very little to complain though they still may not match the pull of regional players like Pothys.
Overall, its been a highly disappointing ride by the corporates in their newer retail ventures. They might learn from their mistakes and rework their strategies in due course, but for now, as a retail consumer, I’d stick with the neighborhood Annachi stores, personally known furniture supplier, and the familiar Narasinghapuram street folks over the Ambanis, Kishore Biyanis, Birlas and Tatas who adorn the covers of Business Magazines. There was protests by the unorganized retail traders against the entry of corporates in the retail segment. Looks like the small trader need not fear at all. If anything they look like saints now.
December 29th, 2009 at 1:51 am
PK, idhai thaan naanga appavae sonnom (I think in one of your earlier posts). But people like you seem to get carried away by all the glitter and hep associated with such big firms and thereby tend to think their service/products are better off. I am all for protecting the annachi kadai. They definitely provide good products and better service - that too with a personal touch. The Big Bazaar or Reliance could afford to do something else, not the annachi!
December 29th, 2009 at 2:54 am
Ravi,
I remember that post. And that was the reason I included the reference to the retail protests…I even wanted to link that post but was lazy:)…
As a consumer I go to places where I think I get value. I am all for protecting my interest…Let the business folks be it small or big protect theirs..let the better guy win…
Another five years down the line if at all these biggies deliver value I will not hesitate to go there again. All said and done, these guys are doing crap and will not make big inroads with the price conscious Indian consumer.