Monday, November 06, 2006

Retail wars - let the games begin

Even as Reliance retail opens its doors to its first launch in Hyderabad, Subhiksha launches its newspaper in Bangalore. Yes, you heard that right.

As they say in an old saying, "Saam, Daam, Dand, Bhed" the retail wars will span all three. The newsletter is just one of the many missiles that will be used.

The newsletter explains very well why Subhiksha stores are always away from high streets (rentals), are not airconditioned (who pays for it), is sparsely staffed (who pays for those people?). It also talks about how Subhiksha offers consistent discounts and not bundled products and nor are their discounts promotional - it promises to offer a 10% off on all MRPs.

All of these are intended at Big Bazaar (and perhaps Reliance) among others and big stores that are airconditioned, have a lot of "smiling staff doing nothing" and are located on prime property. The Subhiksha model is a low operating cost model which passes on the benefits to customers model and by locating themselves closer to their clients, they are pretty much top of mind recall for any grocery. We have seen that happen in our area where Subhiksha is doing pretty well and offers consistent discounts and overall it is a decent experience.

Aside, so who pays for this newsletter?

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