As a child when i started reading about the British " The sun never set on the British Empire" expanding their empire where the sun never set.I felt myself that how great they are in expanding and developing their empire. In my retail market research the history books in my childhood helped me a lot. The way the bristish came not only to India but many other nations i.e common world countries where they first started their business as brand East India co., then divided and ruled the entire world. Hence I thought the best way to develop business in retail is first to do brand building expanding the busienss by appointment of franchisee or DSA's where the cost of capturing the market is very low and expanding easy. The classic examples of this model business in Independent India is by ITC where 70% of their Cigar sales is done by stick by stick through the PAN walas and the Buddy walas on the street and expanding their brand of cigars through out the country. The same strategy was impelemented by ICICI Bank in early 2000 to expand their retail business and reach the mass through their DSA's and Agents, but after some time when they got their establishments and customers in place they forgot their DSA's and Agents and made business built on their own.
I agree this is true business model for the Indian public to expand the business but the retail revolution that came in 2005 where the Indain business man started the American model of retail malls where huge capital is required and huge man power is used to expand the business.This model had got huge risk's and also required a lot of maturited customers, which is only suitable for urban India but not the rural India, further the mind set of the indian is different from that of the western where people will calicullate minute things before buying any goods and services. Out of 70% people visting the malls will end up buying the item in shop next to their house or in the wholesale market near their place, this is Indian mentality to change this mentality it requires the activity mangement which i disscussed in my earlier article where sentement plays a major role in Indian sales. So Indian people belive in the personal touch rather than the publicity or big malls.
Hence forth I belive that the British and American model of retail sales the success rate is more to the British model in India as it proved in Indian market. But the American model is a testing model in India where the sucess only comes when the sales is planned on the minds of Indian's rather building big malls and colour full environment.
