technology         Cultural diversity in    India is complex, and with     increasing urbanisation,       there is a movem...
technology                                            hugely beneficial and can also serve      Traditional store clusteri...
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Of Dosas in Delhi and Parathas in Chennai

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Cultural diversity in India is complex, and with increasing urbanization, there is a movement of communities from their native locations to non-native urban centers. Retailers, with help from technology, can cash in on this opportunity by creating localized assortments catering to various cultures and food tastes.

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Transcript of "Of Dosas in Delhi and Parathas in Chennai"

  1. 1. technology Cultural diversity in India is complex, and with increasing urbanisation, there is a movement of communities from their native locations to non- native urban centres. Retailers, with help from technology, can cash in on this opportunity by creating localised assortments catering to various cultures and food tastes. By Shijo Sunny ThomasOf Dosas in Delhi andParanthas in Chennai:Localised multi-cultural store assortments To make this article palatable for The behaviour of people belonging of the non-native population inthought to the unfamiliar, Dosa is a to different cultures in a non-native many of the urban centres. Many ofpancake made of fermented rice batter environment can have a different these citizens shop extensively atand a staple dish in the south of India. tendency which is referred to as supermarkets, often finding it difficultSo what does an innocuous dish from the acculturation factor. Some are to find merchandise of their culturalthe southern part of India have to do highly un-acculturated, which means preferences.with retail and technology? A lot, it that the members live close to and Non-native consumers at anyseems. The dynamism of the Indian socialise only with members of level of acculturation often turn toeconomy has resulted in the creation their community. Some are partially exclusive community mom and popof many modern urban centres. acculturated, which implies that stores for their shopping needs. TheseIncreased rate of urbanisation that was they have partially adapted to the stores are often only limited buttraditionally the forte of tier one cities non-culture, but still maintain their exclusive assortments catering to theis now being actively witnessed in tier native roots when it comes to food needs of the specific community. Thetwo and three locations as well. The and lifestyle preferences. There freshness of merchandise, level ofrate of urbaniaation is fueled not just are also people who are highly pricing attractiveness and availabilityby intra-state inflow of citizens but also acculturated, which imply that of promotional offers will be missinginterstate movements. The end result is they have fully integrated with the from many of these communitythat, we now have many urban centres new culture and do not identify retail stores. Yet, consumers flock towith an appreciable degree of cultural themselves with their culture of these outlets due to the exclusivitydiversity of people originating from origin. Different cultures will have and convenience of merchandisenon-native locations. Diversity that is varied degrees of acculturation. The availability.further characterised by varied food, partially acculturated population For organised retailers, localisationentertainment and lifestyle preferences. comprises a significant percentage has mostly been about broadly sending102 . images retail . march 2013
  2. 2. technology hugely beneficial and can also serve Traditional store clustering tools that as ideal inputs into creating store provide limited parameters with basic demographic profiles. The census data demographic attributes will fall short is a gold mine for local demographic of expectations. Retailers need to be information and can be effectively sure that the attributes used to cluster leveraged directly or through data stores are able to support multiple aggregators. The demographic levels of demographic parameters profiles will be built as approximate including the store community percentages of predominant profiles. The store clustering solution communities of the total population in should be well integrated with the a defined geographic area. merchandise planning applications so as to effectively build assortments for each store profile clusters. The resultant merchandise matrix is a complex proposition and will need to be effectively percolated to all activities of retail execution. The localised merchandise matrix will be in addition to the standard assortments that are offered at the retail outlets throughout the country. The ratio of standard to localised assortments will depend on the store demographic profile. The localised assortment profile will need to be integrated well with purchasing, space planning, pricing and supply chain systems. These are to ensure that the assortment strategy flows down well into the execution stage. Another important aspect of implementing localised assortmentsmore of summer wear to one region Parallel to building the store is measuring the performance of theand winter wear to another. Creating demographic profile, the retailer assortments. Big data technologieslocalised multicultural assortments should also build assortment profiles provide the ability to create highlyrequires a high degree of granularity in which comprises of the merchandise optimised methods of storage ofmerchandise planning and execution. offering for each targeted community customer segments, assortmentOf course, it is also essential to nationally. These assortment profiles profiles, pricing and sales data. Thesemaintain a fine balance between are created by researching the food, data can be used to create productprohibitive supply chain execution lifestyle and shopping habits of the level models to be used by in memorycosts and maintaining merchandise communities being addressed by the analytics which can churn outavailability. This would obviously retailer. A significant amount of the decision enabling information independ on the size of the multicultural data related to the assortment profiles real time.population under consideration. can be derived from primary research Additionally, a high degree of In order to effectively retail to done by consumer goods companies. ingenuity is also required to bindculturally diverse consumer segments, The final store merchandise profile and harness multiple technologyorganised retailers need to focus will be based on a combinative applications to plan, devise, executeon comprehending and building decision based on store demographic and analyse the local assortmentdemographic profiles of their stores. profile percentages and the assortment strategy.These can be achieved in many ways profiles.such as qualitative research through Obviously, technology needs ABOUT THE AUTHORin house CRM data, store surveys, to be leveraged optimally to plan Shijo Sunny Thomas is theconsumer intercepts in stores, and build multicultural localised Industry Lead for Retail & CPGconsumer intercepts in locations of assortments. Robust merchandise at Fujitsu Consulting India. Hecommunity interests, insights from assortment planning and flexible has worked closely with retailersconsumer goods suppliers, etc. The store clustering applications will in India to conceptualise andcensus and population data which is need to be used to provide the inputs deliver technology solutionsavailable at a locality level in India is into store and assortment profiles. relevant to local needs. march 2013 . images retail . 103

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