What sells
Trendy gizmos like MP3 players, digital devices and pen drives are virtually flying off the shelves of retail shops. One reason for this is that customers are willing to spend more on lifestyle devices. Vendors are also investing a large portion of their marketing spend in pushing these products.
Agarwal of Berlia Compu Systems shifted from distribution to retail business in 2005. And with the rise in sale of devices like MP3 players and even laptops, he is a happy man.
“Till 2004 we were only into large scale distribution business. In January 2005 we opened a showroom and since then we have grown manifold. I could foresee limited growth in the wholesaling business. Also margins have decreased drastically and competition has become higher. Therefore, this was the right time to diversify,” expressed Agarwal.
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| Debasish Biswas and Asif Khan, Technocrat, Kolkata |
PL Suhasaria, Director, Caltron,
Kolkata |
| TECHNOCRAT INFOTECH |
CALTRON |
Since inaugurating its multi-branded showroom a year ago, Technocrat Infotech has not looked back. The well-decorated and sprawling IT mall, situated in the heart of the IT bazaar of Kolkata, was opened with a purpose to give customers a feel of the latest products in the market. Showcasing a wide range of IT products, it provides end-users a live demo of all products on display.
USP: For Asif Khan and Debasish Biswas, the duo behind Technocrat, the biggest attraction of their showroom is the nature of service offered to customers. “This is a feedback which we have received directly from our customers. Apart from this, the touch and feel experience of products that they get in our showroom has helped us to get good word-of-mouth publicity and repeat sales,” stated Khan.
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With two retail
outlets-Caltron and Macromax-Caltron
Info Trade has got a good clientele to boast of. The
sprawling 3,500 sq ft premises at 65 GC Avenue christened 'Caltron
House' accommodates both the company corporate office as well as an
extensive display area with focus on branded PCs, laptops, mobile phone,
digicams and related accessories. This lavish 1,200 sq ft showroom has
helped
the company establish a strong retail base in Kolkata, which in turn has
increased both its topline and bottomline business.
USP: “We offer our customers the best possible price in the entire
market in all products we sell,” said Suhasaria, Director, Caltron. The
showroom displays entire range of products of all the brands that it deals
in. |
Hegde of Creative Infotech felt that retail sales are characterized by home and SOHO customer purchase. And these clients do not want
high-end products, which still remain the purview of the solution providers. They want something they can use on a daily basis and even flaunt. Which is why they go for gadgets and gizmos instead of just computing devices.
While these set of customers are willing to spend money to acquire IT products, they are very particular about the kind of post sales services they get from retailers. This is why most smaller retailers do not perceive big brand like Big Bazaar, Vijay Sales, e-Zone, Sony Mony, MobileNxt Teleservices, Plug In etc, as a threat. This is simply because their clientele is far limited than the biggies and therefore they can offer better service.
The big retail chains do not offer much personalized services and for any after-sale support, customers have to get in touch with the specific vendor. This does not happen with the smaller retailers, who need to engage their customers for life and therefore go out of their way to offer better service.
“As far as the big retail outlets are concerned they won't be able to offer much competition to players like us, because we provide personalized selling, which they lack. We can provide customers with what they want whereas they can provide customers what they have,” stated Walecha of PSPL.
Retail vs reselling
Now the big question that lies ahead is what is going to happen with reselling business? With partners taking keen interest in retail, will the reselling business get neglected?
According to some partners, the wholesale and reselling business models will gradually slow down and then fade out, leaving only manufacturers and retailers in the scene. Others think otherwise and believe that though retailing is doing well, the wholesale and reselling business will never get wiped out.
Sunil Bhukania, CEO
of Kanpur-based Bhukania
Computronic said, “Though retail has a great opportunity it will not be able to displace reselling. Indian customers have a mindset to adhere to a particular dealer on a personal basis and get back to him for any query. Retail business cannot turn India into US and hence the market behavior will remain the same.”
Other partners agree with him and feel that customers often develop a relationship with their dealers and ask for customized services, whereas in retail this is not possible so customers tend to move away from them.
“Apart from retailing we are continuing our reselling business within the same premises. This way our expenditure is controlled and customers can bond with us at a level they are comfortable at. They can pick up whatever service they want,” expressed Agarwal of Berlia Compu System. Page(s) 1 2 3 4
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