Lessons from the Sam Walton of India

I am currently reading a book called “It Happened in India” by Indian entrepreneur

Kishore Biyani. Kishore started a company that later included Pantaloon, a clothing retailer, and Big Bazaar, a market-style hypermarket. I’ve only been to one Big Bazaar (pictured here in Trivandrum), but they are everywhere.

Here are a couple of things I have learned from this book:

• There is a viable consumer base in “third-tier” cities in India: The 1st tier are the big cities; Mumbai, Delhi, Bangalore, Chennai, Kolkata. The 2nd tier are up and comers like Nagpur, Surat, Vijaywada, and Indore. Kishore is referring here to small cities like Sangli, Panipat, and Ambala.
• Indian retailers have to respond to LOCAL requirements: India is a large country and local tastes vary dramatically. For a chain to survive, each store has to have a unique product mix. This also results in an organizational structure where decisions are driven down to the lowest level.
• Indian consumers have uniquely Indian ways of shopping: For example, Indian families shop together, so stores need to accommodate groups of people shopping, not individuals. Realizing that not all Indian families had made the transition to ready-to-wear garments, Pantaloons offered a pants kit that could be used to make pants at home.

Kishore is also keen to point out that he took a lot of inspiration from reading Sam Walton’s Made in America, but the Western retail model would not work in India. What he learned from Mr. Walton was how to re-invent retail to suit the current consumer.