Retail Marketing in India is in Recession

Posted in: Business Wednesday 15th, October 2008

Views(282) Comments(14)PrintForward
Bindu Rathore
CEOThe retail market in India is facing slowdown with the ongoing financial cris
is happening across the world markets. Since the markets always have internally
linked with each other, the impact of the crisis is generally shared among all.
The following circumstances are creating unwelcome interruptions to the Indian
retail industry. The industry hopes for the best alternations to overcome the ac
rimonious situations.
Markets in recession worldwide and India too:
The current meltdown in the world markets is shaking the globe today. Not even a
single country seems to be off the hook. The high level of inflation has been a
wet blanket for the global markets. The roots of the world markets are nearly p
ulled away with the heavy downfall of the American financial giants. Amongst man
y countries, India too not exempted from the impact of world financial crisis. A
ll this is leading to a temporary recess for the markets from a regular busy sch
edule. However, these fluctuations are not new for global market. For the decade
s long, markets, across the world, have been witnessing such ups and downs. But
the ultimately fact is that the market growth rate is always constantly high whe
n comparing to such downfalls.
Economic slowdown:
The Financial crisis is adding to the pressure on global economies. The Internat
ional Monetary Fund (IMF) now sees the world entering a major slowdown. The reco
very would depend on three key factors: commodity prices stabilizing, the crisis
in the US housing sector bottoming out, and emerging economies providing a sour
ce of resilience. But, if the current crisis were to last longer, the emerging e
conomies are more likely to be affected.
The impact on retail industry:
The inflation or the economic slowdown is adversely affecting the retail industr
y. With the suddenly disturbed economical status, consumers are gradually losing
interest on buying. And for the interested, the unbalanced income, followed by
the economic slowdown, is not meeting their buying requirements. This evolution
had soon disappointed the hopes of retail industry. Anyhow, it s all a short-term
crisis for the retail industry until the things turn around.
Low marketing and advertising budgets will work out:
To rectify the things, right solutions are always excavated. Whether the market
growth is slower or faster, its potential should not be left unused. Anyway, new
and innovative solutions must be invented to answer the current market slump. C
utting down the marketing and advertising budgets will reduce the financial burd
en on retailing industry. Marketing and advertising are the supreme factors for
the retail industry to penetrate more into retail market. Following innovative m
arketing and effective advertising at low prices will be a brilliant move for th
e present day market trends.
Challenge to get more customers at low cost:
In this current meltdown, driving the customers to the retail stores seems high
and dry. But, the markets always have the hidden potential despite the slump. To
day, the changing market trends demand the retail industry to expand its reach t
o the more customer touch points so as to drive them to the retail points. Low in
vestments and high returns is now made possible with the arrival of technology en
abled marketing services. The retail industry should realize that it would be at
a fair advantage of including technology enabled marketing services to unfold t
he immense retailing opportunities.
Present communication channel is ineffective and involves high costs:
The present channel for customer communication is apparently ineffective which t
he retail industry has been following for the decades. Moreover, it always invol
ves high costs too. The outdated communication channels should be modified accor
ding to the changing market trends. Now, an uninterrupted marketing channel, whi
ch will be continuously tied to the shoppers, is needed to boost up the retail i
ndustry. Going beyond the traditional marketing at low prices will cut down the
high costs and brings good returns.
Best alternative is Online branding and marketing through effective presence:
Now it is the time to find the right alternative for the retail industry to brin
g down the expenses and to move up in the market. With the lacks of online searc
hes, happening daily for the different products, online market is now creating e
normous opportunities in retail business. To reach the online shoppers, online r
etailing is the best alternative solution for the retail industry, through which
online branding can be achieved. Online branding and online marketing are the o
n going retail business trends.
Solution by MartJack for B2C success:
MartJack e-enabler platform is the ultimate result of the years long market rese
arch which can conjoin the online shoppers and the retail industry at technology
enabled online stores. Building web stores for retailers with individual local
online identity, MartJack allows retail industry to be open to the millions of o
nline shoppers with complete product information, exciting prices and tempting d
eal and offers. Today consumers need accurate information for making a purchase
decisions and low cost product availability at nearest region, to finish their
shopping. MartJack built web stores will be the final point of their online sear
ch and your physical store will be the end point of their shopping. This could b
e the most efficient way for B2C success.
For complete information, on how to enhance your branding and increase sales in
recession you can contact the consultant on the following mail to- bindu@ereason
ing.com

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Reader's comments(14)
1:nice post and overview, thanks
Posted by: Avijit Dey - 17th Oct 2009
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2:In my opinion, current economic slowdown in US would not be having much impact
on indian companies with no or low foren investment. Just they have to re-inven
t their business process and have to cut down on being extravagant.
Posted by: anirudh kumar - 27th Dec 2008
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3:Friends
We have been hearing 'Recession' every now and then with people worried on the d
eepness of its impact. We have observed that recession or slowdown has definitel
y affected certain industries. Many others are just using these fears in cutting
their costs. They may not have been affected by slowdown yet but fear that they
would be very soon and hence preparing now.
Money has not gone out of the system. The circulation has just gone down as peop
le are worried on investing and are prefering to sit on cash. Same with banks. T
hey cannot keep the cash idle for long and the funds have to someday flow into t
he system. They are all just waiting for the confidence to be rebuilt and we bel
ieve that will happen very soon.
We, an online retail www.hindglobal.in, in fact have done better than our busine
ss plan in these harsh period. We could not see any affect of recession yet and
hence believe it is more of a hype created by the media.
Regards
Vivek
Bringing a sea change in online retail
www.hindglobal.in

Posted by: Rinks Retail - 26th Dec 2008

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4:Its impossible to say there is recession on retail industry in India. As every
person requires to consumes their dialy products hence they purchase those prod
uct for their use. However the consumer now only think about which products give
more benifit and then select the product. Hence Indian retailer shoud focus mor
e on those extra benefit and make their USP.
Posted by: Hemant Katole - 05th Dec 2008
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5:Rajesh I resist your point of approach towards retail marketing, I agree that
retail has grown over years and found a new solace in the Indian Industry but th
e global crisis has hit every industry today. And we can notice that sales of FM
CG and Consumer Durables & etc. have gone down par below 40 % of the expected li
nes during this Diwali and has been considered as the worst year of this decade.
Therefore I think retail marketing should take a co-operative and pragmatic app
roach in working towards the uplift of the industry.
Posted by: Maruthi Kumar - 01st Nov 2008
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6:I totally disagree that retail marketing has slowed down, on the contrary the
industry has witness growth over last year. The Global crisis has not yet hit th
e retail industry in India.
Yes but I do agree that Marketer have to work towards cost effective media s & opt
imize their spends. In a competitive market place & with high operating cost, th
ere is a need for retail marketer to be focused & develop tools for measuring ma
rketing spends.
Posted by: Rajesh Mohile - 01st Nov 2008
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7:According to consensus, Marketing is the ultimate universal approach to reach
the target audience for any industry; and it is irrational that you are contrast
ing retail marketing with the basis of direct marketing concept. And we have to
analyze that marketing is a function and a set of processes for creating, commun
icating and delivering needs to customers in any industry, so there is no questi
on of comparing retail marketing and making an illusion of it.
Posted by: Maruthi Kumar - 21st Oct 2008
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8:i m really surprisd that how the people are thinking for retail mktg rather th
an direct marketing concept from the beginning i was against retail because it w
ill affect not only Retail industry but also banking , telecom ,insurance. Alok
Sharan
Posted by: alok sharan - 19th Oct 2008
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9:I think the impact created by the global economic agitation can be dealt throu
gh innovative approach of technology and mindset; today Internet technology has
touched every aspect of life and provides a scope of channel to come out of the
illusion that business has not come to a standstill position. So keeping intact
about the cut down in marketing and advertising budgets among the businesses we
can assume that online branding and marketing can be an elegant way to reach out
to the consumers.
Posted by: Maruthi Kumar - 18th Oct 2008
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10:I believe that the companies who are really focused to make a high in the mar
ket will definitely escape the current unfavorable market events by connecting t
hemselves to the online marketing trend.
Posted by: tanya khan - 17th Oct 2008
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11:Online marketing seems to be a happening trend in India, making the things ea
sy for both retailers and customers. The impact of the recession will be simply
escaped by online marketing, because customers will enjoy B2C services. Things a
re available for them at reduced prices. Retailers also can enjoy the increasing
customer base.
Posted by: Srinivas Sajjanapu - 17th Oct 2008
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12:Regardless of intimidation caused by a recession, successful entrepreneurs ar
e those who take this as an opportunity to rebrand and reposition their company
even in recession.
Posted by: sireesha gogula - 17th Oct 2008
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13:I am Hardworking, Focused, Optimistic, Responsible, Ambitious and Honest, alw
ays egger to learn new things.
Posted by: Hemant shirke - 17th Oct 2008
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14:I would like to add that not only Retail but Banking, Tourism, Airlines, and
several other industries Like Automobiles and durables are also hit because of t
he current meltdown in the world markets.
Posted by: amanmit singh - 17th Oct 2008
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