With growing retail penetration and the sudden influx of major new entrants like Reliance, soon to arrive Bharthi - WalMart, and existing chains like Niligiris, Trinethra, Subhiksha, FoodWorld, Spencers, and Future Group, the other element in the Value Chain to be squeezed is the Suppliers. More than other retailers or competition feeling the pinch of organized retail, the immidiate tremors are first felt with the distributors who are backed and developed by the manufacturers / brands or directly by the brands themselves. Suppliers like HLL in grocery retailing have been long trying to manage such key accounts.
HLL's latest response is to roll out its recent strategy of giving a makeover to existing mom & pop corner stores with a brand facelift and rebranding them as HLL Super Value Stores. This has been in place for over 2 years now and the company plans to extend this further. This will develop a stronger connect to customers to go back to thier old stores in a new retail environment which offers the advantage of the local kirana, friendly and known faces, with the advantages of organized retail and customer service. HLL has already seen some visible growth its current Super Value Stores.
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