Why organised retailers in India have failed, in contrast, is as obvious. The profits they seek are not commensurate with the number of their consumers. The family store, Pantaloon, is an exception to do well in these bad times. So can others with the right approach. Consumers, for example, of durable goods crave for quality that local markets cannot provide.
Organised retailers can give quality but put too high a price on it.
Giles Marking of Fitch, a multinational design consultancy, thinks so. He also emphasises on volumes. He is not averse to toning down a glittery store exterior if it makes its essentially mid-segment consumers feel welcome, and wanted. Big organised retailers have to be soon dedicatingwhole floors to discounts. The present practise of standing discounted products amidst premium counters pulls attention to the first without enhancing sales of the second.