”Dinesh Singh, a graphic designer residing in Lajpat Nagar, is grateful that one doesn’t even need to visit the store to buy necessities. “I just call up the local kirana store and order the product. They come and deliver it at my home.

” The ones doing the talking here are apparently not switching loyalties all too soon.

Experts speak
According to India Retail Report 2007, organised retail presently comprises 4.7 per cent of the overall retail market, and was expected to grow by 34.8 per cent by 2006-07.

Even as more and more players enter the ‘organised’ business, it is perhaps a good time to pose this question: Can mom-and-pop stores or other old, independent retailers, should they organise themselves, be counted as part of the expected organised retail figure? The subject sounds strange, being unheard or less talked-about.

Will researchers or those analysing the organised retail scene validate the ones who will organise themselves in the coming years? If an ancient marketplace starts providing services and experiences better than a branded multi-brand outlet, will its participants be considered among the organised retailers?

While these queries will be answered in due course, some experts from various sects of retail, share ideas that can strengthen the model of small independent retailers.

Arvind Singhal, chairman, Technopak Advisors

My advice to the independent retailers (I would not call them unorganised or traditional anymore, since many of them are modernising and trying to reinvent themselves) is:

1. Be confident about their relevance (specialisation) and strengths (proximity to the customers, knowledge of customers) – in India’s context, independent retailers are going to stay for many decades to come, and will play a very important role in the overall retail ecosystem

2. Renovate their outlets to make them look fresher, cleaner, brighter, and, in general, more contemporary and less cluttered from inside, and appealing from outside (this can be done on low budget, too)

3. Wherever possible, invest in making customer-friendly shelving and displays so that customers can walk around, touch and feel the product, and wherever desired, can self-serve

4. Invest in basic electronic point-of-sale system, which can generate elementary retail business performance reports for them (to facilitate category management, brand/SKU management, etc.)

5. Further, strengthen customer contact/relationship by trying to learn and remember customer names and preferences (a computer-based system will help a lot), and stay in ‘communication’ with them, whether they are in the store or at their homes

Jayant Kochar, managing director, Go Fish Retail Solutions

1) Choose your playing field: You cannot compete against large-scale retailers on their terms, or against their strengths. At the same time, they can't compete with you on yours. Understand what it is that your customers want from you. This is not easy, because very often, the reasons they give for shopping at a particular store may be different from the actual reasons. But once you figure out what they really want, you will find it relatively easy to give it to them.

So, forget about asking for level-playing fields – find the one that suits you. Choosing the right playing field usually involves competing in an area where you have a unique competitive advantage – and it must be one that is relevant to your customers. Contrary to popular belief, in the case of small local retailers, it is not necessarily price.

2) Focus on the top-line: Most small retailers tend to focus too much on the bottom-line, and are obsessed with controlling costs. When I say they should focus on the top-line, it is not to say that it is not important to improve efficiencies and control costs. However, the fact is that their costs are probably going to remain within acceptable limits just by virtue of their close personal involvement and control. What they need to think about is out-of-the-box ways to increase sales, by grabbing every viable opportunity to satisfy the latent needs and wants of their customers.

One of our clients is a small pharmacy chain. Their strategy was to improve viability by cutting costs. We found that their costs were 7 per cent below other pharmacy chains – but their sales per square foot were 23 per cent lower! With some selective loosening of the purse strings, their sales are already up to competitive levels.

3) Surprise them: The aim is obviously to delight your customers so that they want to come back again and again. We have found that when retailers think of how to delight their customers, they usually end up going in for expensive promotions and gimmicks, which may be counter-productive; or they go in for the same things that all the stores around them are doing. Think, instead, of what you can do that will pleasantly surprise them – this is the best way to create real delight that will lead to more frequent visits and higher sales.

Jayant Kochar is managing director of Go Fish - India's leading retail consultancy, and he can be reached at jayant@gofishindia.com