Small & Medium Retailers, Brace Yourself For The FDI Impact
IRM is the combination of both organised and unorganised retail market. Unorganised retail market has deep roots in rural India and Tier 2 -3 cities.
IRM is the combination of both organised and unorganised retail market. Unorganised retail market has deep roots in rural India and Tier 2 -3 cities. Unorganised retail market generally includes small retail shops in which sales are made over the counter and buyers do not get an opportunity to enter the shop or experience the look and feel of the products. Sometimes these small low-cost retail shop supplies products to neighbourhood buyers on credit basis. FDI in IRM is not an immediate threat to these small retail traders. But looking from the consumer’s point of view, increase in disposable income and entertainment quotient has empowered the consumers to buy goods from supermarkets or hypermarkets.
Countermeasures for unorganised retailers
In the long run, retail FDI is definitely going to impact unorganised retailers. Small retailers have to prepare themselves to remain in the business. Here are few tips for small retailers to be prepared against the impact of FDI in retail and utilise it to their advantage.
Provide easy shopping experience:
Shopping is one of the easiest stress busters nowadays, provided that the ambience of the store is suitable to uplift the mood of the customers. Products should be placed in such a manner that attracts maximum eyeballs.
Trust of quality:
If a customer trusts you once then he/she will trust you again, sooner or later. So consistency in quality is key for any business.
Discounts and offer coupons:
Generally, small discounts pay more to the seller. By giving early bird discounts or giving coupons which can be redeemed on next purchase actually buys the loyalty of the customer.
Door to door delivery:
Delivery of goods at doorstep is now a common phenomenon, which saves a lot of time, energy & money of customers. By ensuring timely delivery of required products, small retailers can earn brownie points.
A blend of technology:
Good trading practices with the right mix of technology always pay premium. Small retailers can have tie-ups with e-commerce grocery aggregators to supply goods in the nearby locality. One can also use IT tools to identify customer buying behaviour so that demand for any given product can be predicted more accurately.
Small retailers are largely dependent on wholesalers or stockists for the regular supplies of goods. In this case, small retailers must ensure uninterrupted supplies of products.
A right mix of merchandise:
A right mix of merchandise can address shopping requirement of larger number of customers.
Business without expansion is like static water with a foul smell. Various financial assistance schemes of central and state governments are available to promote small and medium-sized businesses. One can take benefit from these schemes and expand their business.