Global retailers see the Indian retail industry as the most promising emerging market for investment.
Retail marketing by large chains aims at enhancing the customer experience and caters to changing consumer shopping habits. Indian Consumers are basically value focused and are constantly looking for discounts. They are unwilling to pay full price and have become accustomed to sales.
Small and medium enterprises in the retail sector are facing many operational challenges today. Thy have to deal with the advent of increased market competition from larger chains, low management skills, inability to invest in technological advances and poor staff training.
But SMEs should concentrate on the distinct opportunities and advantages:
-Small retailers usually possess a rapport with their customers. Paying attention to the individual customer particularity leads to immediate customer loyalty.
-There is one neighborhood store for every hundred customers. Their proximity of these stores allows them to offer flexibility of service and home delivery of small values.
-Small retailers are run by the owners themselves who have the expertise and knowledge of their products. Imparting this knowledge contributes to the credibility of the retailer.
-Informality of the retailer can build up goodwill and leads to relationship development with the customer.
-The retail outlets open early and serve till late in the evening making it very attractive to the busy customer.