Finally, what deters a discerning Indian consumer from purchasing a top-end Western brand in India is its abysmal quality. And, after margin stores, discount stores are the most popular place to buy them from. The organised sector has few discount stores, though. Subhishka, one of those rare chain stores, has an annual turnover of Rs 1 billion from 62 outlets and plans on 500 stores by 2002. Then there are company outlets around Mahipalpur on the highway to Gurgaon.
Sales are brisk at all times.
The notion that the people go to buy these products with is that if it is a Benetton shirt, a Lee jeans, Reebok runners or Givo, Van Heusen, Louis Philippe or Arrow shirts, they will have all the class and durability of the brand. A minor mis-stitch here or there does not matter if it brings the price substantially down. Plus, there is the puffery associated with wearing a Benetton or an Arrow brand. The discount store should, in fact, give FDI and corporate investors in retailing a clue to their Indian strategy. Why organised retailers in India have failed, in contrast, is as obvious.