A foray into the smaller towns is seen as a long-term investment, because if retailers don’t enter this market today, someone else will step in, tap the pulse of the consumer and take profits away.
Pricing Strategy
Open to Customization
While we see an exponential acceptance of branded fashion by the Tier II and Tier III piers, they still look out for ‘their kind of fashion’ being offered by the brands. Bijit Nair, President-Retail, AND, says, “We take it as an opportunity to understand the consumers’ tastes in these markets which might be slightly different, either in terms of fashion or silhouettes or the way we present our line in the market. Being agile to or open to changes and to learning, we are able to quickly make those necessary changes.”
Brand-Consumer Connection
Also, small town population looks for something they can relate to or something they can look up to and brands need to keep this in mind while expanding in these areas. Having known and loved celebrities as the face of the brand helps immensely here. “AND, for instance, has Kareena Kapoor as our brand ambassador and that itself is quite a big pull as she is a face which is very familiar with Tier II and Tier III markets,” says Bijit Nair.
Retail Experience and Customer Service
With time, people from smaller markets have grown hungry for a better retail experience and they are ready to pay for the kind of customer service that can satiate them. Navin Khanna from Zoe Concepts, agrees, “People in Tier II cities are also exploring foreign destinations where they are exposed to higher quality products and great service and therefore aspire to have them as part of their daily lives.”
Right Collaboration for Right Approach
Even as BoConcept, which offers a range of contemporary and modern furniture, is currently exploring opportunities and trying to decipher the ideal retail channels in Tier II and Tier III cities for its products, Navin Khanna believes that “it is important to have the right collaboration so that the right audience can be approached based on the positioning of the brand.”
Window to Global Trends
While we talk about smaller markets giving importance to branded fashion and lifestyle, what exactly has made this possible? As Neha Shah rightly says, “People in smaller towns are as aware of current trends and styles as people living in the metros. With technology advancements and rapid expansion, these factors together blur the lines in consumer psyche or behaviour in both metros and small towns.” And so, offering the latest global trends for the fashion-conscious populace is the right step forward.
Identifying Best Possible Markets
Even as brands are penetrating the Tier II and Tier III markets of the country, they need to identify the best markets for establishing their presence which would help them further the brand image rather than hampering the same. Bijit Nair asserts, “We take various points under consideration like what are the competing brands available in the market, how the market is going to develop in the years to come, the per capita income, etc. before we sign up.”
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