Apparel September 2019 Apparel September 2019 issue | Page 52

FEATURE
THE FORMAT OF A STORE AND ITS
SIZE ARE AS IMPORTANT AS THE
PRICING AND PROMOTION.
focus on online stores means that there are
ways to sell without carrying excessive inventory
and expensive overheads. Thus more and
more companies are aspiring for their brands
to become lean and mean and cut all the extra
flab. This goes on to show how companies now
are experimenting with different formats for retail
that will offer them maximum returns on their
investment. As a report by Technopak, titled
46
I APPAREL I
September 2019
‘Fashion Retail Scenario in India: Trends and
Market Dynamics’, says, “Fashion consumers
today are smart enough to compare prices across
brands and retailers in various formats. They look
for detailed product features, compare fashion
items in terms of fiber content, design, wash
instructions, etc., and review product ratings and
opinions. Thus, retailers need to use advanced
analytics and ERP systems to scan the consumer
mindset and tailor retail formats, and pricing and
promotion strategy accordingly.”
Thus, the format of a store and its size are
as important as the pricing and promotion. In
the earlier times, it was indeed the size of the
store that mattered. Today, the rising online
competition, too, has been leading to pricing
pressure, in turn compelling brands to rethink
many logistical factors, one of them being the
sizing of their stores.
THE ADVANTAGE
The biggest advantage to mini stores is that the
retail brand can carry locally relevant products. It
need not stack entire ranges but only what would
be more popular in that particular area, as per the
needs of its target customers. In case something
else is required, the store can always source it.
In this way, a stronger brand presence is created
and the desired product is made available to
the consumer without necessitating excessive
investment in inventory. Catalogues and websites,
too, make for easier references.
Since apparel is a feel-and-buy story, the
presence of a compact, nearby store where