The retail format is the store - Indian Institute of Management ...
The retail format is the store - Indian Institute of Management ...
The retail format is the store - Indian Institute of Management ...
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Figure 5: A Compar<strong>is</strong>on <strong>of</strong> E-tailing and O<strong>the</strong>r Formats<br />
MODEL COMPARISON FOR GROCERY<br />
Hypermarket Supermarket Kirana Online Call-in<br />
BENEFITS TO THE<br />
RETAILER<br />
Breakeven volumes High Medium Low Medium Medium<br />
Scalability High High Low High Medium<br />
Up front investment High Medium Low Medium Medium<br />
GM based on volumes High High Low Medium Medium<br />
End customer experience<br />
BENEFITS TO<br />
CUSTOMERS<br />
Medium High Low Medium Medium<br />
Pricing Low High High High High<br />
Services Low High Low High High<br />
Atmosphere Medium High Low Medium Medium<br />
Convenience Low Medium High High High<br />
Range High Medium Low High Low<br />
End customer experience Medium High Low Medium Medium<br />
Compar<strong>is</strong>on <strong>of</strong> Cost <strong>of</strong> Operation<br />
Sales/Sq.ft Rs. 500 Rs. 750 Rs. 1000 Rs. 1250<br />
Hypermkt 13.33% 10.23% 8.68% 7.75%<br />
Supermkt 19.96% 14.52% 11.81% 10.18%<br />
Kirana 7.60% 5.57% 4.55% 3.94%<br />
SuperKirana 16.85% 11.68% 9.10% 7.55%<br />
Sales/Location Rs. 14 Lac Rs. 18 Lac Rs. 26 Lac Rs. 38 Lac<br />
Online* 13.29% 9.62% 8.03% 7.16%<br />
Notes:<br />
1. Online cost does not include Marketing and Technology costs.<br />
2. Location <strong>is</strong> treated as mainly a large city when <strong>the</strong> <strong>store</strong>'s service centre <strong>is</strong> located.<br />
3. Lac = 1,00,000
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