<\/p>\n
A discount outlet store sells merchandise that is off-season \n (such as summer merchandise in winter or vice versa) or out-of-fashion \n (hence possibly two-three seasons old) or comprising of manufacturing \n over-runs. <\/p>\n
However, in India discounts are prolific even in the high \n street market. In clothing as an example, a large chunk (estimates \n vary from 40% to 70%) of ready-to-wear stock is sold under \n discount. Some of it is sold in factory outlets, but a significantly \n larger proportion is sold throughout the year in regular high \n street stores under offers that run throughout the year. <\/p>\n
There are also discount streets within the city (such as \n Fashion Street in Mumbai or Sarojini Nagar in Delhi) operating \n the year round. This reduces the benefit that a discount outlet \n specifically provides to the consumer. <\/p>\n
Second, discount stores typically are based \u201coff-locations\u201d \n away from regular customer traffic. In markets such as the \n US and the UK, an \u201coutlet village\u201d may be located \n 50-100 km from the nearest suburban or urban centre but quite \n close in terms of drive time. In India currently, due to poor \n road conditions, the stores have to be in higher cost locations. \n <\/p>\n
Most critically, a sustainable and sizeable discount outlet \n also needs a base of many brands that have built up high profile \n and that operate consistent price premium at full-price levels. \n The brands must have enough scale so a discounting outlet \n cannot damage its brand image. This enables not just standalone \n discount outlets, but entire \u201coutlet villages\u201d to \n be set up. These clusters can generate a much bigger and sustainable \n customer footfall, much like a shopping mall. That ecosystem \n of brands has been weak in the past in India but has recently \n accelerated, and we are likely to see critical mass emerging \n in future, which may allow the discount business to grow. \n <\/p>\n
In the coming years, expect more action, with clustering \n of stores and brands, specialist discount malls, and possibly \n even innovative and India-specific models to come up. How \n about air-conditioned haats with proprietary bus connectivity \n to town centres? <\/p>\n
Let the good, discounted, times roll.
\n
\n <\/p>\n
(c) Devangshu Dutta 2007<\/i> <\/p>\n
The author is Chief Executive of Third \n Eyesight<\/a>, a specialist consulting firm in the retail and \n consumer products sector. (More articles on www.thirdeyesight.in\/insights\/<\/a> \n )<\/i> <\/p>\n","protected":false},"excerpt":{"rendered":" By Devangshu Dutta (Column from The Financial Express- 16 October 2007) A discount outlet store sells merchandise that is off-season (such as summer merchandise in winter or vice versa) or out-of-fashion (hence possibly two-three seasons old) or comprising of manufacturing over-runs. However, in India discounts are prolific even in the high street market. In clothing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1264","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"\n