How can Small Retailers compete with Biggies? Launch a Chain?

Small retailers are losing out to the larger retail outlets (Reliance, More, Subhiksha etc) and TN govt. is working on an interesting project in the city of Madurai.

The Tamil Nadu Chamber of Commerce and Industry (TCCI) is working with 500 small retailers to build a loosely coupled chain that will:

  • Display common interiors and colors.
  • Have a common logo to 500 outlets
  • Have suggested these retailers to have products in neat shelves with names and price tags and computer billing,
  • In future, common procurement of products to keep prices down – source

Unorganized retail outlets/Mom-and-pop stores can be a real threat to the biggies, if they unite!, i.e. if at all this model succeeds.
The pie is increasing and as biggies spread their wings in tier-2 cities, small outlets will need to think ‘beyond the obvious’.

What’s your take? Can the same model be applied to other industries?

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