Retailing is a process that includes business activities that are involved in selling goods and services to the customers. It is the last step in the process of distribution. On the other hand, Branding is used to differentiate between the products, services, manufacturers etc. Now a days new term has been emerged to define new way of retailing because retailing today is not only about selling but also about surveying the market , offering choice and experience to consumers, competitive prices and retaining consumers as well. Since retail is highly competitive business, therefore branding can be especially important in the retailing industry to influence customer perceptions and drive store choice and loyalty.
So the concept of Retail Branding is not of retailers selling brands but branding the retail business itself, like the grocery supermarket chain or the fashion store. Chroma, a TATA enterprise is a way to differentiate itself from other players in both un-organized and organized players. It is India’s first national level retail chain for consumer durables.
A hypermarket or department store, may offer several well-known brands, but in today’s competitive world cannot afford to rest on its strategic product assortment and pricing initiatives to bring in the customers. The retailer must attempt to brand himself differently, especially when today’s product brands are being launched through their product brand’s own shops. In the same way Big Bazar differentiates itself from other stores and its philosophy is based on the strategy of Walmart i.e. EDLP (Every Day Low Prices). Retail pricing format is one of the way of retail branding.
Store Atmosphere is another method of retail branding. Spencers in India is providing typical Indian market atmosphere to consumers where stacks of cartons are piled up across the items. Vegetables and other fruit items are kept on wooden trolley as sold in streets and markets.
Another specific strategy followed by retailers is about Brand assortment. In last decade retailers have moved from using the brand image of manufacturers to building the brand image of their own. One such method is Cross-category assortment i.e. availability of every type of goods and services with in the retail store. Crosswords offer every type of books and of almost every author and every subject and that is the way it is the most respectable brand in the country.
Another way of retail branding is the use of Private labels. Most of the big players like fashion bazaar, More, Spencers etc. use private labels to increase their margins. But the method of private labels is very risky proposition as over all image of retail store comes in the way of success or failure of a product.
There are three dimensions of retail branding
First, Brand Value – develop, embody and transmit clear and consistent value to the customer.Second, Brand Strategy - develop retail brand or corporate brand; one product/one brand. Third, Brand Structure – marketing, human resources, distribution, logistics, administration and sales have to work a common brand value. Coffee retailing in India is one of the successful examples of Brand value to the customers as offered by CCD.
This area is still to be developed and studied further. Retail branding in India is still in nascent stage and it will grow in years to come as in when the products and services will be similar to each other.
