Multi-brand outlets (MBOs) are becoming increasingly popular in India, and for good reason. Here are some observations and opinions on the growing trend of MBOs in India:
- Environment: MBOs need to navigate these challenges to succeed in the Indian market. Increased Choice: MBOs offer a wide range of products from different brands, providing customers with more options to choose from. This is especially important in a diverse market like India, where customers have varying preferences and tastes.
- Better Bargains: MBOs often offer better deals and discounts than single-brand stores, making them an attractive option for price-conscious customers. This is because MBOs can leverage their bulk buying power to negotiate better prices with suppliers.
- Improved Store Experience: MBOs are investing in visual merchandising to create a unique store experience that sets them apart from single-brand stores. This includes creating a particular store image in consumers’ minds, using perceptual maps to position themselves in the market, and leveraging technology to enhance the overall shopping experience.
- Foreign Investment: The Indian government recently allowed 100% foreign direct investment (FDI) in single-brand retail and 51% FDI in multi-brand retail. This has led to the entry of international brands into the Indian market, which are partnering with local MBOs to expand their reach.
- Challenges Remain: Despite the growth of MBOs, challenges remain in the Indian retail market. These include the dominance of unorganized retail, the need to adapt to local preferences, and the complexity of the regulatory
With the emergence of Multi-brand outlets like Zudio, Yousta, Azorte, etc. the Indian customer can be seen drawn to it compared to the traditional retail stores.
