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To gain that winning edge...
The McKinsey -CII report on retailing in India sees the opportunities in the Indian retail market as falling into three categories, requiring different approaches.These categories are defined by the level of sophistication of the supply chain and the degree to which change is required in consumer shopping behaviour. l `Ready-to-Go' sectors are those where the supply chain is reasonably sophisticated and there is little change required in consumer shopping behaviour. These sectors are primarily - dry grocery, electronics, men's apparel and malls. In order to create a large business in these markets, retailers will need to ensure that they can develop sufficient scale to earn real cost advantages, run extremely efficient back-end and store operations through investing in technology and infrastructure, and offer a truly distinctive consumer proposition.l `Shape-and-Adapt' sectors are those where at least one of these two parameters requires to be and can be restructured. these include women's apparel, DIY (do it yourself), fresh grocery and fast food. The challenges in these markets are very different by category. In women's apparel the price will go to retailers who can develop scale and sourcing while ensuring a high level of customisation of ethnic wear. In the DIY, management of a complex sourcing system will need to be complemented by a marketing effort to change the consumer's mindset towards purchase of such products. In fresh grocery, the winners will be those who can make requisite investments in the sourcing chain to reduce wastage and ensure high quality fresh products at competitive prices. l `Wait-and-Watch' sectors are those that are constrained by market intrinsics or regulatory barriers and include liquor, pharmacies and fuel. In these cases, retailers' ability to influence and manage regulation is key to entry. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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