Jan 29, 2003 09:57 PM
6565 Views
(Updated Jan 29, 2003 10:09 PM)
Hey guys, now this review must be comprehended from a business point of view and not just shopping!.. strategy being one of my subject's in my course gives fire to interesting debates regarding the successes and faliures of business models , in every area.
the concept of leisure shopping is not very old in india, but also is borrowed from west.
infact the idea behind that is everything from multi brand household, art,to fashion products should be available in one roof. great! amazing idea, we can see food World etc doing really well coz they operate on lower margins and retail food items of good quality and a lower price often..but the buzz line '' shopping is not just shopping but an experience '' does not apply to indian consumer psyche. the consumer wants to shop everything obviously under pleasant surroundings with as much ease possible..As far as shopper's stop is considered they have amazingly large bulky investment into their stores covering all the major brands under on roof especially clothing ,but the recent statistics show that there profit margins are declining day by day. I mean the margins on which they operate are really low...and unfortunately the business model does not expect the customer to pay for the expensive lightning and heavy air conditioning,and show tiled bathrooms..how will they cover the cost ,trust me guys I have been a regular visitor to shoppers stop in bombay and pune, and I myself stood for several hours to check out their billing ,,,although 37% of which is credit payment! but the overall billing figure was really really shameful for such a mega store ...the mega store concept is not to provide elevators and music , but to provide something better( a better price)..for example amazon.com has chucked out barnes and nobles out of their busniness...online shopping is now becoming easier and above that cash on delivery!!! knock knock,,,then what's the use of such a bulky investment when covering the cost becomes a tic tac toe game. personally I love going to shoppers stop myself to check out babes, and do window shopping for hours and hours and ultimatley having a cheap coffeee. I mean we guys the consumers can make out good fun, but the corporate behind it! is not making money ...Ansal plaza (shopper's stop plus other malls) what a competition ...''In the west the shopping malls are so big so good '' and so we want to replicate something like that in indian market (shoppers stop) ,but do we have any idea that the cost of power in the West is amazingly lower than what it is here. Same is with movie multiplexes , same is with Xtra chick coffee houses .the question is who pays for the huge investement. then they say that stores like shoppers stop are not doing well coz there are too many mega stores in competition, or the Mega movie multiplexes are not doing well coz the competition is increasing and too many are coming up ,,so its difficult to survive in such a competitive market...answer-- in a city like Delhi , Bombay- there are say four to five multiplexes , and a 40- 50 odd cinema halls , now as we can see the number game competition is more in case of low scale operators ! aren't they always full are,nt they surviving . and I bet that a kirana small scale shopping store ,knows and understands the logistics and supply chain management better than Shoppers stop ,,and he doesnt even know that he knows(pun intended)...so small stores like branded stores are doing pretty when we compare the bottom line and top line figures..its obviously harder to break even for Mega stores.
i mean everything is very good, glitzy, cool schemes, excellent brand collection , crowd also appears sometimes , but generally if you go there my advise is plz take someone along , other wise you might feel lonely :-)
( this review should be considered from a buzz point of view)