Retail Plus
Hyderabad
Price, no longer the key differentiator
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Despite all this growth and success what gives me immense satisfaction is our ability to maintain a strong customer relationship mechanism in place - Devanand
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CONVENTIONAL Marketing always adheres to the theory that advocates the significance of Price as the key differentiator. Well, not any more.
The radically altering market dynamics especially in the apparel retail segment have a different story to say. “Price is the least influential factor in the new age business model. Pricing strategy of course has a role to play. But that’s by and far limited to the initial stages where target segment identification is done. Later it all comes down to factors like visual merchandising, ambience, customer relationship, service and variety in product range” says Mr. Devanand, the man behind the iconic New Meena Bazaar.
The store itself is a classic case of success brooked by constant reinvention. New Meena Bazaar which started off way back in 1971 in a dingy 330 sq.ft. area is now spread across two massive stores showcasing the best in men’s wear.
Brand power is yet another critical success factor of the store considered a landmark destination for classy men’s wear. Suitings, shirtings, readymades and accessories comprise the store’s core product line. “We showcase some of the best brands when it comes to men’s wear, be it ready to stitch or ready to wear. A host of international and domestic brands vie for the customer’s attention. Of course, the affordable price tags only add to the appeal” quips Mr. Devanand.
Elaborating about evolving customer preferences, he says that trends and tastes are two things which drive the whole business model yet they also act as inherent risk factors. “We need to constantly reinvent ourselves and that includes frequent stock overhauls as consumers do not like static inventory in the showcase. At New Meena Bazaar, we change the stock every 6 months in order to keep pace with changing trends and tastes” avers Mr. Devanand.
Talking about the fast changing market dynamics, he says “Every player knows the significance of displaying range, variety and easy price tags and they have all become staple offerings across the spectrum. But what sets the bigger players apart is their ability to define intangible success drivers. Merchandizing for example was never given due importance. Likewise customer relationship used to start with a transaction and end with it. But we always were a mile ahead leveraging path-breaking processes.
The fact that 90% of our clientele are regular, repeat clientele says a lot. Identifying and addressing changing needs is yet another crucial area. Our in-house brands are a good case in point. Though we showcase some of the best brands in men’s wear, I still felt that there was a vacuum somewhere as there were constant demands for customized stuff. That acted as a catalyst behind our in-house brands as they are designed to cater to customized preferences.”
New Meena Bazaar has a landmark presence in Hyderabad’s apparel retail sector and its loyal clientele who have stood rock solid with it over the years have made it what it is.
Reminiscing about the store’s gradual evolution, Mr. Devanand says “Despite all this growth and success what gives me immense satisfaction is our ability to maintain a strong customer relationship mechanism in place. In fact most of our customers have been with us for generations together. We have families whose fourth generation is still with us.
Once a customer, always a customer is our mantra. Some of our customers who have left India and migrated to foreign countries still keep visiting us and shopping with us.”
If success had a yardstick then this tale would have taken a real long one to measure it.
C P RAJ
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Retail Plus
Hyderabad
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