Click to play videoMumbai: The Indian retail space has always been an unorganised, fragmented business with regional chains like Vijay Sales, Viveks and Kohinoor, operating in select cities.
However, now with corporate giants stepping in, the small retailers are getting their act together.
Already, the Tata Group has launched its Croma chain; and Reliance and Pantaloon have stores in all cities.
The fears of the small retailer are growing by the day and they have decided that the time has come to act to keep themselves in the retail game.
Says Senior Manager, Advisory Services, KPMG, Mazyar Kotwal, "Big players bring with them purchasing power. They have the ability to negotiate better prices with the manufacturers, they have more volume and therefore sell at the best price to the end consumer."
However, small retailers are coming together to combat the competitive threat and are joining hands to effectively form a countrywide network.
Says MD, Vijay Sales, Nilesh Gupta, "We have a three pronged strategy. We exchange ideas, buy together as a group from the vendors and have a common brand - an internal store brand which is common across the country."
And with the emergence of these brands, the consumers will soon get to see HAVs or Home Audio-Video branded toasters, irons and televisions all over India - something which is expected to emerge as a national brand soon.
In a business where retail margins are as low as 10 per cent, sourcing at a competitive price is crucial. Small retailers hope their collective bargaining will help to keep the big boys at bay.
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