Revolutionizing the rural retailing in india
FEW EXCREPTS FROM THE BOOK “IT HAPPENED IN INDIA” BY KISHORE BIYANI
“The vision for us is to deliver everything and, everywhere, to everywhere, to every Indian customer in the most profitable manner”.
“Rural India accounts for 55% of the total private consumption and no retailer can offer to ignore the rural consumption market”.
PURPOSE OF THE PLAN
In order to cater for the semi urban and rural areas Kishore Biyaniji was mentioning about the kb’s wholesale market model. I have developed a model for such markets by observing various business models, needs, income levels, geographies of people in such regions over a period of time. Here I will try to explain my model by implementing it on one geographical area. I being a keen observer and a fervent window shopper helped me the most in developing this model. Though this model which I am presenting here acts as a prototype for other semi urban and rural areas all the aspects of this particular model may not be viable when applied to other areas. The model synchronizes with the tastes and interests of the people dwelling the particular geographical area.
FACTFILE OF THE PLACE UNDER STUDY
PLACE: ANANTAPUR
STATE: ANDHRA PRADESH
POPULATION: 5 LAKHS
NO OF VILLAGES AROUND ANANTAPUR: 866
LITERACY RATE: 69.5 %( HIGHER THAN THE NATIONAL AVERAGE OF 59.5%)
The second largest district in India after Ladhak (district in the state of Kashmir).
NO OF UG AND PG COLLEGES: 22
MAJOR FACTORIES: AROUND 15(INCLUDING INDIAS BIGGEST CAMPHOR FACTORY)
UPCOMING PROJECTS: A massive, state-of-the-art integrated ` Odyssey Science City' is proposed to be established in drought-prone Anantapur district with an investment of $ 25 billion (Rs. 1.1 lakh crores) over the next 10 years by a consortium of four Australia and Singapore-based companies
THE PLAN
Through the younger generations tend to prefer shopping malls and supermarkets for their shopping needs Most of the elder people in these areas prefer to shop at orthodox mandis or seth shops. The main reasons for this being relationship they have established with these shopkeepers corroborated by the cheaper prices being offered by these people when compared with the shops in their neighborhood .these people are willing to travel from places far away for mere discounts .
On the other hand these seths or the owners in mandis are slowly losing their customers. The reasons for this being ignorance and lack of innovation. The younger generation customers are not able to fulfill their requirements in these places. A few retailers in these places have improved their offerings by opening up supermarkets, but despite that they were not able to approach their customers with proper inventory.
1. Concept of old pickle in new bottle
It may sound crazy but it works this way. The first step involves a comprehensive study of the needs and lifestyles of the people.
Then the various retailers who satisfy their needs are found out. The best retailer among them is approached and he is asked to do business at our wholesale mart by creating a win- win situation. The well procured back end supply chain logistics would provide an advantage for us over other retailers. This way here the players are old. We are offering a new way for them to do the business. From the customer point of view we offer him all the products at one place through the person who he relies on at much lower prices than which he used to get before.
2. Creation of BEST STORES
The store comprises of one best retailer from the area in each domain. One retailer for clothing, one retailer for electronic goods, one for furniture…etc.,this way the conglomeration of best retailers leads to the creation of the best stores.
3 FLOOR SPACE for attracting people
It may sound vague but it’s amazing. A separate lecture hall has to be created in these places. A lecture hall to impart knowledge to the people about the current practices, technologies available. Let me explain this with an example.
Example 1:in these semi urban and rural areas agriculture is the primary occupation. These farmers are ignorant of the revolutionary changes and practices that are being implemented in developed nations. Finally they cultivate the routine crops like groundnut even during drought and finally end up with losses. They can be given guidance about the alternate crops. Proper marketing solutions for their crops can be provided. Most of the farmers in these get duplicate pesticides which are also responsible for crop failures. Original pesticides from reliable companies can be provided through these stores. Thus we can attract the rural community. Mobile vans to the nearby villages can be sent which study the farmer practices and educate them on new techniques. Thus we can gain the faith of rural community
Example2:most of the semi urban and rural women are eager to learn about things like internet, new technologies, spoken English, using various equipment like microwave ovens. Educational sessions can be conducted for them in those classes.
Example3: students can be given awareness classes about higher education.
4. ENTERTAINING THE LOT
Anantapur has got a good response for movies. The theatres are fully packed even for a small movie. But unfortunately there are no theaters with good infrastructure despite the ticket prices being parallel to the prices of theaters in cities like Hyderabad. A theatre similar to the central model can also be included depending on the city.
“The vision for us is to deliver everything and, everywhere, to everywhere, to every Indian customer in the most profitable manner”.
“Rural India accounts for 55% of the total private consumption and no retailer can offer to ignore the rural consumption market”.
PURPOSE OF THE PLAN
In order to cater for the semi urban and rural areas Kishore Biyaniji was mentioning about the kb’s wholesale market model. I have developed a model for such markets by observing various business models, needs, income levels, geographies of people in such regions over a period of time. Here I will try to explain my model by implementing it on one geographical area. I being a keen observer and a fervent window shopper helped me the most in developing this model. Though this model which I am presenting here acts as a prototype for other semi urban and rural areas all the aspects of this particular model may not be viable when applied to other areas. The model synchronizes with the tastes and interests of the people dwelling the particular geographical area.
FACTFILE OF THE PLACE UNDER STUDY
PLACE: ANANTAPUR
STATE: ANDHRA PRADESH
POPULATION: 5 LAKHS
NO OF VILLAGES AROUND ANANTAPUR: 866
LITERACY RATE: 69.5 %( HIGHER THAN THE NATIONAL AVERAGE OF 59.5%)
The second largest district in India after Ladhak (district in the state of Kashmir).
NO OF UG AND PG COLLEGES: 22
MAJOR FACTORIES: AROUND 15(INCLUDING INDIAS BIGGEST CAMPHOR FACTORY)
UPCOMING PROJECTS: A massive, state-of-the-art integrated ` Odyssey Science City' is proposed to be established in drought-prone Anantapur district with an investment of $ 25 billion (Rs. 1.1 lakh crores) over the next 10 years by a consortium of four Australia and Singapore-based companies
THE PLAN
Through the younger generations tend to prefer shopping malls and supermarkets for their shopping needs Most of the elder people in these areas prefer to shop at orthodox mandis or seth shops. The main reasons for this being relationship they have established with these shopkeepers corroborated by the cheaper prices being offered by these people when compared with the shops in their neighborhood .these people are willing to travel from places far away for mere discounts .
On the other hand these seths or the owners in mandis are slowly losing their customers. The reasons for this being ignorance and lack of innovation. The younger generation customers are not able to fulfill their requirements in these places. A few retailers in these places have improved their offerings by opening up supermarkets, but despite that they were not able to approach their customers with proper inventory.
1. Concept of old pickle in new bottle
It may sound crazy but it works this way. The first step involves a comprehensive study of the needs and lifestyles of the people.
Then the various retailers who satisfy their needs are found out. The best retailer among them is approached and he is asked to do business at our wholesale mart by creating a win- win situation. The well procured back end supply chain logistics would provide an advantage for us over other retailers. This way here the players are old. We are offering a new way for them to do the business. From the customer point of view we offer him all the products at one place through the person who he relies on at much lower prices than which he used to get before.
2. Creation of BEST STORES
The store comprises of one best retailer from the area in each domain. One retailer for clothing, one retailer for electronic goods, one for furniture…etc.,this way the conglomeration of best retailers leads to the creation of the best stores.
3 FLOOR SPACE for attracting people
It may sound vague but it’s amazing. A separate lecture hall has to be created in these places. A lecture hall to impart knowledge to the people about the current practices, technologies available. Let me explain this with an example.
Example 1:in these semi urban and rural areas agriculture is the primary occupation. These farmers are ignorant of the revolutionary changes and practices that are being implemented in developed nations. Finally they cultivate the routine crops like groundnut even during drought and finally end up with losses. They can be given guidance about the alternate crops. Proper marketing solutions for their crops can be provided. Most of the farmers in these get duplicate pesticides which are also responsible for crop failures. Original pesticides from reliable companies can be provided through these stores. Thus we can attract the rural community. Mobile vans to the nearby villages can be sent which study the farmer practices and educate them on new techniques. Thus we can gain the faith of rural community
Example2:most of the semi urban and rural women are eager to learn about things like internet, new technologies, spoken English, using various equipment like microwave ovens. Educational sessions can be conducted for them in those classes.
Example3: students can be given awareness classes about higher education.
4. ENTERTAINING THE LOT
Anantapur has got a good response for movies. The theatres are fully packed even for a small movie. But unfortunately there are no theaters with good infrastructure despite the ticket prices being parallel to the prices of theaters in cities like Hyderabad. A theatre similar to the central model can also be included depending on the city.
attention should have been given to urbanisation.
but what's happening here is they are not being implemented in a proper way.IF YOU COULD implement them it would be a great thing in all ways.
And coming to the lack of proper implementation of those ideas is the granting of loans by the govt to the farmers through various banks.They are used to easy money as those loans will be canceled once the crop fails due to any reasons which often happens in anantapur.They think of that money even more than that crop,some of them even wish for the failure of the crop.
IT,s the attitude of the farmers has to be changed along with the polices specialy taken by the govt for the district well known for its drought and backwardness
Coming to the market the concept of finding the best retailer in each of the various departments is not that easy as they are the best in the town they might not agree as they are aleady established and they only come to u if they consider it to be more profitable that it was earler cosidering the local situations like location of the business and the management he has to work with etc
peple do not generally listen to the lectures of the businesss people unless they realy find it intresting may be this might not work as already mentioned the implementation is most important
Cinema theatres might just work as i know the situation of the theatres peple are realy looking at the better theatres ang again this might just bring the competetion in the businees of cinema theatres which is again good
You presented creative and innovative ideas
But i have a small suggestion to make man please try to start implementing them without expecting complete help from government side because its very difficult for the government to think about everyones ideas..
I hope you watched 'swadesh' movie so if you can please try to do somethng like that
I hope i didnt hurt your ideas :-)
n e way.. as others here r suggesting, things could have improves ur factfile. But it''s a commendable work..
Cheers.. Get going...
u shld have made a gud research i do know how anantapur looks like a nice plan to implement try this out in real...when u hav gut such real good thoughts jus implement them and help urself and ur place to develop...
awesome article copyright it:D
these ideas have to be properly implemented and with a proper supervision so give ur best to achive that
i will be lookin frwrd for such things in future
rock ritish
especially the statistics.. i never knew all d stuff abt atp..
regardin the plan.. the best one is providing the floor space.. its a very good example of the blending of marketing and welfare..
regardin the first one.. i doubt a person who is best, wud accept our offer to work at our malls as it'd be difficult to get the margins(his own) wen he works somewhr instead of being an entrepreneur...
regardin the theaters.. the basic threshold in these semiurban ares (B an C centers) is pricing, an i think this pricin level is very low(at max 20).. so even we provide some grt infrastructure at 40 Rs.. sustainin our business becomes difficult...
these ideas can still be maintained wid small changes ..
meetin quality here wid good margins is a challenging task.. thts wat preventin global heads not able overcome local brands in these areas.. though scenario is definitely changing..