Clothing and Food industry are 2
businesses that will barely go out of business. Having said this, there are
trends that a retailer will have to watch out for in his market. The ability to
sense what people want and to be able to deliver it surely drives success to
greater heights.
One such retailer is a small clothes
merchant in the bustling area of Chennai city. About a decade ago, this guy's
shop called Cotton House was "just another clothes shop" in the very
active shopping area of a major junction. It was easy to miss shops like this
since they didn’t really have a specialty of their own.
Today, Cotton House is a big big hit
among the lower middle class and the lower class; sometimes even the upper
middle class. What has changed over the years is the interiors of the shop -
acquiring more and more area - it is easily one of the bigger clothes shops in
South Chennai. What hasn't changed over the years is the way this shop's
entrance is structured - a narrow and forever-crowded sort of appearance with too
many clothes hanging. This in my opinion has turned to the shop's advantage
because there is so much crowd - either just standing there for some shade, or
people walking in and out of the shop or waiting for the bus (the bus stand is
right beside the shop)...whatever. The very fact that there is a bunch of
people standing there or moving around the shop's entrance is enough to have
people guessing what the retailer has to offer. Once I get past this crowd, the
interiors are quite nice. The whole place is air conditioned (which is a big
relief to shoppers) and the variety of stuff offered –
1.
Men’s wear -
Shirts, Trousers, Jeans, T-shirts, Dhotis, Lungi, Inner wear, Casuals,
Unstitched shirt and trouser materials
2.
Women’s wear -
Blouse materials, Sarees (cotton, silk, silk-cotton, synthetic, fancy, etc),
Salwars (readymade and stitched), Western wear, Inner wear, Casuals
3.
Kids wear - name
it - the shop has it!
4.
General - Hand
Kerchiefs, Towels, Plastic items, Umbrellas, etc.
Although the name of the shop suggests
dealing with 'Cotton', there is a lot more that they have to offer.
Advantages that have worked really
well -
1.
Location - in the
heart of a bustling junction with a major bus stand right next to it. This bus
stop helps people from other parts of the city connect with the area and
considering most lower class and middle class travel in public transport, the
location has added a lot to its growth.
2.
Variety - This is
not a specialty shop - although the name suggests Cottons, the retailer has
envisaged that people want more than just cottons and has been able to cater to
a greater chunk of the masses by offering a variety of materials and for all
types of people.
3.
Staff - Forever
there seems to be a decent number of people in the shop. The staff wears a uniform,
which helps differentiate a customer from sales staff. I've had experiences of
approaching a fellow customer for details about a product!! :) Even the number
of people seems overwhelming since at least 8 out of 10 customers were
guaranteed of being assisted within 5-10 mins. The staff is warm and welcoming.
They ask you for what you want and guide you to the right place.
4.
Entrance - I
think the entrance to the shop and the fact that its size has remained as is
has played a major role in adding to a customer's perception. Always crowded,
one tends to think that it is all from the shop. It adds credibility because
common man is lead to think that a crowded shop would mean a good shop. Extra
signage making their boards more prominent has helped create a market for
itself among the many others who operate within few meters.
5.
Pricing – The
prices are quite reasonable, even for the common lower/middle class man. The
retailer is not in the strictest sense a retailer. I would call him somewhere
between a retailer and a wholesaler being inclined more towards a wholesaler.
Sales are moderately high on an average and I believe extra high during
seasons/festivities. The margin is not very high and the retailer makes his
profits on the number of products sold (quantity).
6.
Something for everybody – This is a store that
has a lot to offer for people of all ages and is hence able to keep minds
occupied. A husband, while waiting for his wife to finish shopping, takes a
look at what the men’s section has to offer. Pretty much each member of a
family can fulfill their shopping needs under one roof.
7.
Power Backup – With the entire State facing
power shortage, the store has a backup power option. This, in my opinion, is a
huge plus point to the shop because the customer’s shopping experience is not
hampered because of the power. Although power cut is not in the hands of the
store, they are effectively able to handle such power crisis – offering little
or no difficulty to the customer.
Disadvantages that hamper growth –
1.
Parking – There is absolutely no parking space
that the shop has. The location being a very busy junction that’s very lively,
parking is a very big problem for the whole area. Although there is very little
that Cotton House, per se, can do to solve parking problems, I think by
offering valet services or by identifying a small piece of vacant land for
parking can go a long way in adding value to a shopper’s experience. This paves
way to expand their market sector to include the upper middle class and tap
potential customers.
2.
Utilities – Basic shopping experiences like
drinking water and clean toilets are not given much importance. All efforts so
far have gone towards creating mass appeal (having people flock into the shop),
which they have succeeded in. Providing these basic shopping experiences,
although small, will go a long way in improving customer experience – thereby
adding value to the customer.
VAISHNAVI S RAO
FT 13484
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