The retailing community has accepted and realized the fact that the consumers want to choose between the variety of brand and value for money is their topmost priority. The big retailers have to deliver a consistent branded experience. Crossroads in Mumbai is an endeavor to achieve the same, though its target segments the upper and upper middle class. Technology has made a difference in retailing also. E-tailing (through internet) is considered to be eroding the store retailing slowly. Is it the real picture? With the concept of B2C (Business to Consumer Transactions over internet) coming up at a fast pace, an intimate two-way access is emerging between the retailer and the customers. Customized products are offered to the customers. For instance while one buys a book through Amazon.com, a synopsis of the book, its reviews, its prominent readers and other books of the same author are some of the information provided to the customers. Within minutes of placing an order, one gets a confirmation thus saving time and satisfying the customer. The penetration level of the internet is increasing at a pace that the reach would be equivalent to what television took about 40 years and that cable about 15 years.
In online services and the web, the retailers seek out the customers unlike the traditional model where the customer goes to the store and locates the product. The busy life-style of the consumers in this hectic era, tilts the preference needle towards the online retail model. However, B2C success depends on the behavioral and attitudinal changes in customers. First, the customers have to be familiar with Internet and have to be informed about buying on the net. Then, the customers have to build the mentality to trust the e-sellers and be convinced on the products quality. The KSA customer 2000 study showed that only 1% have ever used net shopping though 40% are aware of it. But 10% of the representatives do not trust the quality in net shopping. This shows e-tailing (stand alone) has a long way to go in India. The major advantage of the retailers in India is that, most of the products operate on the push factor than pull factor. In order to popularize their products the manufacturers have to attract the customers to feel the products, physical existence and this is enabled by the retailers. Instead of viewing e-commerce as a threat for retailing the big retailers can embrace technology and provide value added and personalized services to the customers. In the recent times, companies like ARCHIES have used technology to their advertisement and increased their sales. By promoting, Fathers day, mothers, sisters, friendship, valentines, and even egg and Love at first sight days, Archies has been successful in pulling crowd in their galleries all over India.
The big retailers can learn the lesson from Archies. A recent KSA Technopark survey finding showed that Apparels and Consumer durables occupy the top slot in priority for shopping in India. Apparels and Consumer durables and for that matter even footwear are those products which gives satisfaction when you feel it. How can the big retailers use technology in this? Technology is so flexible that it can coexist with business anywhere. The big retailers have to have their websites to combat the competition from e-tailing. For instance for clothing, the big retailers can show the variety and design offered by them through the net. A virtual experience can be provided and the customer can have n option whether to visit the shop or shop from home. If the virtual round through the shop is irresistible, the customer will definitely come to the shop for an experience at least. Thus, in this era of Information Technology store and retailers have to become technology savvy to satisfy customer preferences. The consumer mercantile activities grouped into three phases, pre-purchase preparation, purchase consummation and post-purchase interaction have to be properly incorporated with technology.
2 Comments