News: Malls flash foreign tag, save shelf space for imports
(TNN 24/05/2006) New Delhi - The ‘Imported’ tag still rules the Indian psyche. The friendly neighbourhood retailer, who supplies the monthly quota of Malaysia-manufactured deodorants, Indonesian chocolates and made-in-China shampoos, has known this for long.
Now, the fact has been factored in by new-age retail shelves. Retail chains, both in fixed budget and niche high-end categories, are reserving more shelf space for specifically ‘not-made-in-India’ merchandise. In most cases, the brand barely matters.
“As long as it is genuinely imported, it’s okay,” says a merchandiser of an agency that picks up imported brands for small retail chains based in New Delhi and Punjab.
“There is a huge craze for imported products, especially in Tier II towns, where access to such products is a problem and buying options are limited. The brand does not really matter, because the general psychology is that the foreign products are superior to the domestic products,” says Vikas Gulaty, director and CEO, Mallz 99.
The retail chain is planning to expand to about 100 outlets in the next three years, has all its merchandise, from dog food to mascara, sourced from all over the world, but India.
“We have buying houses in Turkey, Europe, Japan, China, Indonesia and the US. We have 3,000 products in the portfolio and brands keep on changing. Sometimes, a particular brand does not make it back to our shelves. It depends on the global availability of the products,” he says.
The India-based franchise of One-Dollar stores US DollarStore, has everything shipped via Florida (though it is sourced from all over the world). “About 95% of the products in the stores are imported. The only brand which is made in India is Pepsi,” says Gautam Sahni, director, Nanson Overseas.
The craze for imported products is complimented by a high degree of brand recall, even for the lower-end brands. “It’s astonishing that people are aware of a lot of brands that are available in our stores, even though they have never been advertised here.
And the brand awareness is not just about expensive products. Even lower-end things like Pringle chips and Jack’s cleaner are identified and that creates more demand,” says Mr Sahni.
Similarly, the high-end Dr Morpene’s ‘Tango’ chain of stores and Ebony Retail, have both tied with luxury brands like Mineral Care and Southern Islands for their beauty sections.
“There is a demand for some of the products that our customers have tried during their sojourns abroad and have enough disposable income to try out others, especially in Punjab,” says an official from Ebony.
Now, the fact has been factored in by new-age retail shelves. Retail chains, both in fixed budget and niche high-end categories, are reserving more shelf space for specifically ‘not-made-in-India’ merchandise. In most cases, the brand barely matters.
“As long as it is genuinely imported, it’s okay,” says a merchandiser of an agency that picks up imported brands for small retail chains based in New Delhi and Punjab.
“There is a huge craze for imported products, especially in Tier II towns, where access to such products is a problem and buying options are limited. The brand does not really matter, because the general psychology is that the foreign products are superior to the domestic products,” says Vikas Gulaty, director and CEO, Mallz 99.
The retail chain is planning to expand to about 100 outlets in the next three years, has all its merchandise, from dog food to mascara, sourced from all over the world, but India.
“We have buying houses in Turkey, Europe, Japan, China, Indonesia and the US. We have 3,000 products in the portfolio and brands keep on changing. Sometimes, a particular brand does not make it back to our shelves. It depends on the global availability of the products,” he says.
The India-based franchise of One-Dollar stores US DollarStore, has everything shipped via Florida (though it is sourced from all over the world). “About 95% of the products in the stores are imported. The only brand which is made in India is Pepsi,” says Gautam Sahni, director, Nanson Overseas.
The craze for imported products is complimented by a high degree of brand recall, even for the lower-end brands. “It’s astonishing that people are aware of a lot of brands that are available in our stores, even though they have never been advertised here.
And the brand awareness is not just about expensive products. Even lower-end things like Pringle chips and Jack’s cleaner are identified and that creates more demand,” says Mr Sahni.
Similarly, the high-end Dr Morpene’s ‘Tango’ chain of stores and Ebony Retail, have both tied with luxury brands like Mineral Care and Southern Islands for their beauty sections.
“There is a demand for some of the products that our customers have tried during their sojourns abroad and have enough disposable income to try out others, especially in Punjab,” says an official from Ebony.
posted by InCar Group Press Room at 13:15
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