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Thursday, July 29, 2010

Bargaining ,Retailing and India

My friend asked me this evening with that sweet look in her eyes and i somehow knew the question that was about to be popped up next “Can we go shopping today?”. I had to decline her not because i did not want to go but because i have become kind of a big spender these days and now my ATM card growls at the idea of going into that machine once again :P ....being a bit free these days we always find reasons of going out and inevitably find ourselves buying something or the other...

But just the mention of shopping made me go back to the times when me and my mom used to go out for shopping ..we saw and saw and saw all the products available in the shop till the time mom was totally and totally satisfied ...and then followed the most interesting procedure of all “BARGAINING”....when mom used to “negotiate” with the shopkeeper about reduction in price....right from the price of vegetables to the silk saree she bought herself she would bargain regarding everything...she firmly believed and always said “Being a buyer gives you tremendous authority," he says. "Salespeople know that if you don't spend your money in their store, you will spend it somewhere else."

Going out shopping was always such an experience for me ....i used to just sit and watch the negotiations....sometimes d shopkeeper won, sometimes mom did but most of the times it ended up in a sentence “neither yours nor mine .lets settle at this”. This bargaining, negotiations ,haggling or whatever you call it form an integral part of the purchasing behaviour of all consumers and Indian housewives define shopping pleasure by how much they were able to negotiate. Being consumers Indians realise that the best point of bargaining is that they have nothing to loose.

But now with the emergence of the retail stores, speciality stores and big brands flooding the markets ..the joy, the practice of bargaining is slightly evaporating but the Indian consumer is missing the pride of have coming victorious after a battle with the shopkeeper...even the heavy discounts at the discount stores cant give that feeling of satisfaction of your will prevailing over the shopkeeper’s price. The idea of bargaining is not practiced nor is considered appropriate in the high level retail chains.....buy the thing at the stated price or leave it ....there are others waiting in the queue....

But cant we in a country like India where the customers feel proud of being able to win the negotiations...start a trend where retail, organised retail goes hand in hand with bargaining???? Can’t we start what we can term as “BARGAINING RETAILING IN INDIA”??? You step into the mall filled with all the facilities u require and expect from a mall ....all the products are the same....u choose the one that best suits your need and pocket both ;) and after finalising when you go onto the counter u can start doing what we Indians love doing and we are definitely good at “NEGOTIATE”

Like the discount store model which was a revolution in the marketing scenario of India...can we give the Indians the pleasure of shopping the best in what they would call reasonable prices????Retail for us has meant no negotiations while the Kiranas wala were about bargaining....when its the same prices that are levied inside and outside the outlet why not offer the last and the most convincing pleasures to your consumers....

The idea of bargain retailing could really prove beneficial in the rural areas of India where people are still not used to the idea of one-price shops...they are getting brand conscious but still their brand knowledge is limited to the knowledge of the near by shop....the Indian consumers feel the big brands to be overpriced.....but a chance to bargain on them probably could benefit both the sides included....the minimal price that is set by the retail store is set after lots of negotiations and whatever is set by negotiations should be open to negotiations. The retail prices set by some humans which can be questioned by some other humans....

Just the thought of going into a retail store, choosing the things of your choice and coming out with a price that suits your pocket and does not cut the company’s pocket too much either is a dream come true for any consumer....as an Indian customer i can say i would love the idea....what do u say???

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