Cash and Carry has been in much of the talk these days. It is a new format in India, testing the retail market and trying to capitalize on the opportunities available in the country which is known for world's second largest population. Cash and Carry as you all know is a B2B format where the goods are sold in bulk at a wholesale price to the retailers.
Metro has already made their presence felt in India with their Cash and Carry store in Bangalore(2), Hyderabad(1), Mumbai(1) and Kolkata(1). Walmart has entered into India along with Bharti with their Wholesale Club named as Best Price. Carrefour and Tesco is planning to enter Indian market too.
But is Indian market really ready for Cash and Carry format? Is it really a profitable market? A recent article on Brand Equity(a weekly edition of Economic Times) has reported that the Cash and Carry formats in India is not getting much of the attention. Probably Cash and Carry retailers would have to keep their patience. Wait and watch is the word for them.
2 comments:
Its still early to comment on the success of these kind of stores. They are different in every aspect when compared to other store, their merchandise, services, facilities etc...
They are usually located in the suburban areas of the city. The customer has to drive all the way to get to these kind of stores. This point will be very vital when it comes to stores located in metros. But the customer can be still happy with the huge discounts he gets apart from the wholesale priced products.
As Peeyush said wait n watch is the word for them.
True Linson, however as the basic concept behind Cash and Carry is to cater the needs of the small retailers and not the individual consumers for their personal use, location should not be much of a basic reason until the store is located too far away.
Probably what is causing the trouble to cash and carry stores is the buying habits and psychology of the small retailers, especially unorganized retailers. Unorganized retailers are the ones who purchase items from wholesalers without the receipts where in the wholesaler saves money from tax and same with the small time retailers. Thus giving rise to black money. Now in case of Cash and Carry stores everything is organized and tax paid. This could be one of the reason but as it is said one cannot understand the buying behavior of a consumer completely.
It's like Bollywood movies, even the movies backed by superstars dies in box-office and less budgeted movies proves to be a success. At times no story movies also become a big hit.
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