World biz and more as seen from India

Wednesday, July 20, 2005

Standardized shoppping anyone?

Many of the major corporations in the US are chain stores. US corporations have perfected the art of creating a business model and repeating it over and over again. All of them work on one simple rule that we all have heard about – Economies of scales. So why have Indian companies been so lethargic in adopting this model. The apparel retailers in India have taken the lead and in the past couple of years Shopper’s stop and Pantaloon stores have started showing up here and there in Mumbai. So the apparel retail industry is caught on but What about other consumer items like electronics, food/restaurant outlets? Mars restaurant have tried to bring the chain restaurant concept to India but unfortunately the clientele for these restaurants are restricted to the “better off” crowd. Majority of the Students can’t afford to eat at these places twice a week. When do we see the rise of low cost, “value for money” quality food?

The Coffee café day chain has substantial eaten into barista’s market share by having a sensible pricing structure. I can’t imagine students shedding Rs 50+ for a coffee!!!! What were they thinking? Some might argue that they targeting a niche market.

Other avenue open is the appliances and electronics business. Typically, local businessmen who are authorized resellers in a particular locality have run this business. But they don’t have enough turnovers to go big. There has to be bigger reason than that. Keeping reading our blog, as I try research a bit on possible reasons why chain store culture isn’t present in India