Challenges Of RetailChallenges Of Retail

 

THE INDIAN JEWELLERY INDUSTRY IS OFF LATE WITNESSING SOME SIGNIFACNT CHANGES IN THE INDUSTRY.

THE INDUSTRY WHICH WAS HUGELY DOMINATED NY UNORGANISED SECTOR, IS NOW DYNAMICALLY TILTING TOWARDS ORGANISED RETAILERS. RETAILERS WITH MULTI CHAIN PRESENCE ARE GAINING WIDE ACCEPTANCE AMONGST CONSUMERS. CONSUMERS ARE NOW BECOMING MORE AND MORE AWARE AND INFORMED WHILE MAKING JEWELLERY PURCHASES , THAN EVER BEFORE. THE CONCEPT OF BRANDED JEWELLERY IS PICKING UP WELL AND RETAILERS ARE PUTTING THEIR BEST TO CREATE A HEALTHY BRAND IMAGE IN THE MINDS OF CONSUMER.

 

APART FROM BRANDING, VARIOUS OTHER ASPECTS LIKE INVENTORY MANAGEMENT, CUSTOMER SERVICE, PRODUCT INNOVATION, PROVIDING VALUE FOR MONEY PRODUCTS, BEING COST COMPETITIVE ETC . ARE BECOMING THE NEED OF THE HOUR.

 

BUT AS COMPETITION IS GROWING FIERCE WITH EVERY PASSING DAY , RETAILERS ARE CONSTANTLY FACING THE FOLLOWING PROBLEMS

 

  1. FEELING PINCH IN THEIR MARGINS AND BOTTOM LINE.

  2. UNABLE TO DIFFERENTIATE THEIR PRODUCTS FROM COMPETITORS AND OFFER SOMETHING EXCLUSIVE

  3. UNABLE TO INNOVATE PRODUCTS QUICKLY AS PER CUSTOMER’S NEEDS AND PREFERENCES

  4. PROVIDING PRODUCTS AT COMPETITIVE PRICES AND STILL MAINTAIN PROFITABILITY

 

SO HOW TO OUTSMART THE COMPETITON?

 

ONE OF THE MOST EFFECTIVE STRATEGIES TO BEAT COMPETITION IS BY CHANGING THE WAY RETAILERS BUY PRODUCTS. THE TRADITIONAL DISTRIBUTION CHANNEL OF

MANUFACTURER- DISTRIBUTOR/DEALER- WHOLESALER/ SEMI-WHOLESALER- RETAILER

NEEDS TO BE REPLACED BY

MANUFACTURER-RETAILER

THIS STRATEGY HAS THE FOLLOWING ADVANTAGES

  1. HELPS IN SOURCING AT VERY COMPETITIVE PRICE AS NO MIDDLEMEN ARE INVOLVED, THUS BEING COST EFFECTIVE.


 

  1. HELPS IN BUYING PRODUCTS OF BETTER QUALITY, WORKMANSHIP AND FINISH AT THE SAME OR LESSER PRICE AT WHICH COMPETITORS’S ARE BUYING INFERIOR QUALITY THROUGH THE TRADITIONAL CHANNEL.


 

  1. HELPS MAINTAIN EXCLUSITIVITY OF PRODUCTS AS THE MANUFACTURER CAN HAVE DIRECT CONTROL OVER DISTRIBUTION IN THE RETAILERS PARTICULAR REGION. THIS MEANS VERY FEW AND SELECTED RETAILERS GETS ACCESS TO A PARTICULAR PRODUCT/BRAND IN THAT PARTICULAR CITY. THIS IN TURN, HELP ATTRACT NEW CUSTTOMERS AND RETAIN OLDER ONES.


 

  1. JEWELLERY IS ALL ABOUT TASTE AND CUSTOMISATION. BY PURCHASING DIRECTLY FROM A MANUFACTURER, A RETAILER CAN EASILY ORDER PRODUCTS ACCORDING TO CUSTOMER’S SPECIFIC DEMANDS.


 

TO SUM UP, ALWAYS REMEMBER THAT THE 4C’S OF JEWELLERY WE HAVE ALL KNOWN OF (CUT, CLARITY, CARAT, COLOUR) HAS NOW BEEN REPLACED BY


 

. CUSTOMISATION

. CRAFTSMANSHIP

. CREATIVITY

. CREDIBLITY