AJIT JOHN
PANJIM: The retail scene in the State has been witnessing dramatic developments in the recent past. The inauguration of Mall de Goa in Porvorim now means the State has a proper full-fledged mall. With more malls expected in other towns in the State, the competition for the buck has certainly increased.
Now plans are afoot to inaugurate a hypermarket in Vasco which could be replicated in Margoa if deemed successful. This initiative is a collaboration between Fashid which will be bringing its Max brand of which it is a franchisee and Ashford St Roque of Oscar Junction, a Goan venture. Akhil Chadha of Fashid which has Max outlets in North India felt the time was right to bring in the brand to Goa. This new venture will see the light of day in August later this year. The Max brand is owned by the Dubai based group Landmark.
This destination, Akhil hopes will become a one stop shop for the residents of the surrounding areas. At Max one could shop for clothes, shoes, bags and accessories. At the hypermarket, diverse requirements for the house like grocery, home furnishing, toys and games, stationery, crockery, liquor etc. And to finally ensure that the hungry family’s hunger is satiated, they can go over to the food court for veg and non veg snacks. It also has a game zone and children’s play zone.
These offerings are part of a battle that is taking place all over the country. The Indian retail and logistics industry, organised and unorganised in combination, employs about 40 million Indians (3.3% of Indian population). The typical Indian retail shops are very small. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq ft in size. India has about 11 shop outlets for every 1000 people.
These outlets in Goa will be around 9000 sqft. Retail is one of the pillars of the Indian economy and accounts for about 22 percent of its GDP. The Indian retail market is estimated to be US $ 500 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
Like everything in India, the money spent has to be justified. 99% of the goods sold in Max will be under Rs 1000 and one percent under Rs 1500. Akhil says he is targeting the defence force staff staying in Vasco, employees at the Goa shipyard, and other similar organizations which has a dedicated cash flow.
He hopes to set up similar outlets in Belgaum and Kolhapur and may be more in Candolim in the north of Goa. If he is on one end of the spectrum then Brisco Lobo of Caricima Ent Pvt Ltd is on its other end.
Having set up operations in 2001 with 2 wholesale outlets it has now 5 retail outlets dealing in FMCG goods in the north of the state. Panjim he said was never their focus and having set up outlets in Mapusa, Caranzalem, Saligao, Calangute, Anjuna and Siolim. Brisco said his outlets had strong connections with the local community and people always purchased from this. Consumer loyalty is vital in retail. Point systems are de rigueur encouraging consumers to visit regularly and collect more points. A big fat discount lies at the end of that rainbow.
The State may be one the smaller ones in the country but the consumption patterns are rapidly evolving. It is the considered opinion of Brisco that in five years the presence of these malls and the entry of more will change consumption patterns. He said “salaries will increase leading to more spending which will mean more money in the economy. The shopping will have to be a experience.”
Retailers will define themselves by the customers they serve, rather than by the products they sell. Retailers will grow by positioning themselves as more than just purveyors of ―stuff; but also as one -stop purveyors of lifestyles or need states. Service offers will help bring the brand experience to life. The new one-stop shop will focus on customer segments with edited assortments, simplified choices and new combinations of goods and services. Do it for me service and solution offers will surge as retailers strive to capture a share of the growth in spending on services. Service offers will help buffer retailers from falling margins as products become more commoditized and price competitive. More retailers will leverage their brand license into the realm of services, making the next concept in their portfolio one that sells services, not products.
More retailers will emphasize end to end brand experiences encompassing pre purchase point of purchase and after purchase. They will target not only ease of shopping but also ease of use. This has already started happening in the bigger cities of India and it is just a matter of time before it is firmly established in Goa too.
