Retailers need to enhance their value proposition to suit their customer experience and convenience. With exclusive and multi brand models competing in the market, which format would be more beneficial for brands, and retailers?


Competition has become a double edged sword. The advent of globalization has made it essential for retailers to be on their toes; always. They have to design, and redesign their retail formats, and come up with creative customer shopping experiences. Retailers need to adapt innovative formats to meet customer preferences. Malls had, in the recent past defined the way of middle class shopping. But currently with the drastic change in trends, customer preferences, and their income level, single brand stores are gaining importance. Retailers must be customer centric and decide the right format.


Multi Brand Outlets: is it a preferred format for retailers?


Retailers more often prefer multi brand options because they get the freedom choose and decide. In exclusive formats, retailers lose their freedom as they will have to abide the vendor guidelines such as fixed set of promotions for a year. Apparels are more product driven, and less brand driven, and hence MBOs will prove more profitable. In case of apparels, consumption rates are seeing an increasing trend since; customers get a variety of apparels to choose from. EBOs need efficient and skillfully trained staff, as they are the face of the brand. MBOs are free from this.




Multi brand formats put the brand and its product right in the middle of its competitors. New offerings are showcased in a way, facilitating the consumers to compare and decide. The sheer volume of shoppers stepping in MBOs makes it essential; not to be ignored. Stores like Lifestyle, and Shoppers Stop etc are gaining more popularity with the consumers.


But this too, is not an unmixed blessing. Providing multiple choices might confuse the shopper. The retailer would also not be in a position to recommend any brand to his customer, as that would indirectly imply under selling the remaining brands. Multi brand retailers also get fewer benefits from the vendors. Exclusive brand retailers get territory protection from their vendors, while multi brand retailers will have to face fierce competition if another multi brand outlet is launched in the same area.