"Haggling, bargaining and fixed price policies",  The changing face of Indian retail: Presentation at the ESOMAR Retail 2007 conference, Valencia

Piyul Mukherjee & Damodar Mall

Abstract

While language, religions and consumer preferences may differ from one Indian region to the next, the ‘desire to milk the most out of the last rupee spent’ is one of the unifiers of this diverse nation cutting across income levels, cultures and genders.

India has over 12 million retail outlets : more than the rest of the world combined - for 200 million households. The Organized Retail sector is in its infancy – while consumers continue to throng the highly fragmented ‘traditional’ retailers and road side hawkers, in search of variety, customized service & rapport, and in haggling over the items individually purchased that is more for the pleasure of bargaining than the best price. The psychological satisfaction is in having got the better of the ‘other’ – the retailer, the neighbour who can be boasted to, about the bargain obtained; the mother-in-law, who is traditionally a rival to her son’s affections, the other consumers ahead and behind you.

In the West, Paco Underhill has spoken of the ‘Butt Brush Factor’ (shoppers are spooked by too-close quarters, and don’t like being brushed from behind), but Indians subconsciously gravitate towards the most crowded parts of a bazaar in the belief of the best bargain being available. With the spatial accommodation a billion Indians constantly participate in, the small joys are gained in the fiercely guarded ‘elbow room’ made for oneself, in day to day transactions.

 The route to success lies in a deep understanding of the Indian mindset, her aspirations, needs and her perceived place in the new emergent India. It is all about rebuilding traditionalism even while seemingly dissolving it. The paper will throw light on some of the successful ‘discount’ and ‘bargaining’ strategies adopted by organized retailing, that have aided in this gradual transformation of belief.

Presentation Ratings received from the respondents and other  comments:

1. SPEAKER EVALUATION

 

Overall value ranking: 1st position Speaker Mean Score Conference Mean Score
Content 4.1 3.6
Presen-tation 4.7 3.7
Originality 4.5 3.5
Overall value 4.2 3.6

Additional comments relating to speaker evaluation:

+       Excellent! x2

+       The best.

+       Nice presentation. Original!

+       Excellent presentation! Commensurate with the lessons presented she presented with great relevance using an accommodating style! The best so far.

+       Very insightful.

+       Wonderful and entertaining presentation. Real insight into Indian retail culture. Lots of interesting learnings.

+       What a fantastic introduction to retailing in India. I just want to find out more now!

+       Interesting and inspiring.

+       Interesting, stimulating. New culture that is becoming more important and we are not prepared.

+       Very entertaining and interesting.

+/-     Inspiring and funny. Not clear which are recos.

+/-     A lot of fun! Brilliant presentation, but what do I take with me which is relevant for my (Western) market?

+/-     Very engaging! Interesting, but not directly applicable for me.

+/-     Very interesting and well presented, but not relevant to me.  

2.  BEST PRESENTATION NOMINATION

% Total Nominations

11%
 

Additional comments explaining best presentation nomination:

·                A good insight view to Indian market and consumer behaviour.

·                Quality/interactivity of presentation. Turns many preconceptions on their head.

·                Interesting to see how different cultures believe in the market.

·                Very engaging, well thought out, good application to other thoughts.

·                Interesting and entertaining insight into a world you don't look at everyday.

·                Originality. Quality of presentation. Entertaining.

·                Interesting, open mind.

·                Fresh.

·                Fun and interesting information.