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Organized retailers seek new strategies to improve sales
Jul '09
Global recession has forced the retailers to opt for cost cutting measures like shut downs, layoffs, and downsizing of stores. For an organized retailer, the cost structure is high, and the retailer has to make a compromise with the price without risking the business.

Organized retailing provides the innovative producer with a powerful channel to showcase and sell their products. But, in today's business environment, there is a mismatch between what the retailer is proposing as their value-proposition and what the customer perceives as value. Good buying environment alone does not motivate the consumer to buy the product.

Indian customer is value-conscious. They would not pay more money for a product just for the buying environment. Organized retailing enables the growth of brands and products that provide a different value proposition to the Indian consumer. It provides a powerful channel to showcase and sell their products.

Organized retailers should provide the consumers with more, and better and innovative products. Another proposition is low price. Lower price and higher purchasing power is a big advantage, organized retailing can give a consumer.

The final value proposition is good customer service. A better approach towards dealing with consumers will help the retailer to build his business. Retailers who understand this customer centric approach will be successful.

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Fibre2fashion News Desk - India

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