Karnataka - Mangalore   

Mangalore opens up for corporate retail chain

SETTING TRENDS: The interior of an outlet of corporate retail chain at Bejai in Mangalore.

MANGALORE: Purchase the monthly groceries at one of the popular groceries stores on G.H.S. Road near City Market and ask for home delivery. The store manager grins at you and grumbles to indicate that you have made an unacceptable demand.

Compare this to what the just-opened outlet of a corporate retail chain, “More”, promises. “Call us and ask for coriander leaves. We will deliver it at your doorsteps, even if you are 5 km away,” says H.R. Prashanth, zonal manager of Aditya Birla group’s outlet. The city has eight of them already and one more will soon come up in Ullal. That clearly establishes that these corporate retail outlets have come with the strategies which make the customer feel that he is the “King”. Every outlet of thes corporate retail chains is getting around 450 customers a day, Mr. Prasahnth says.

Apart from the “More”, there are outlets of other retail chains such as Big Bazar, Adishwara Marketing, and Nilgiris in the city. Subhiksha and Reliance Fresh have made enquiries with Mangalore City Corporation officials or Commercial Tax department to set up their outlets here.

How will it affect the local economy? Mr. Prashanth does not see any impact. But a commercial tax official, on the condition of anonymity, said: “At least 50 traditional stores will close down around every outlet of these retail chains. People don’t realise it, because it all happens over a period of time and very slowly.”

“I will not be surprised if most of the small traders are wiped out in the long run,” says G.G. Mohandas Prabhu, who heads the Old Bundar Wholesale Kirana and Allied Merchants Association. “Unless they position themselves in the emerging market driven by brand-conscious consumers,” he adds. The small businessmen can bank on their rapport with some of their customers as they can offer small credits as against the cash and carry culture of corporate retail outlets, Mr. Mohandas Prabhu says.

G.V. Joshi, Head of the Department of Economics, Mangalore University, says: “Customers’ interests have to be met. The traditional sellers will have to imbibe innovative methods of marketing. This is the outcome of globalisation. Some of the adverse effects are direct and some indirect”.

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