Will set up stores to match customer profiles, psychographics
KOLKATA: MyDollarStore, the US-headquartered discount retail chain that earlier decided on a multi-price point strategy in India, is now weighing plans for a cluster model approach.
According to a retail industry analyst, a cluster model in retail, by catering to local tastes, helps in better customer connect.
Soumitra Ghatak, CEO, MyDollarStore India, told DNA Money: "We will have stores to match customer profile and psychographics. For instance, breakfast cereals may sell well in Mumbai or Kolkata but not in, say, Ranchi."
He added: "At the same time, the merchandise stocked at a Ranchi store would perhaps be somewhat different from one in Kochi." The company's new business mantra in India is, 'Think global, act local'.
MyDollarStore, which stocks a variety of fixed-priced imported items, sources its merchandise from the US, Europe, Hong Kong and China.
The retail chain has been in the country for the last few years. It has experimented with various models in an effort to get its formula right in India.
It plans to go in for the franchise model once again, now that it is expanding rapidly in India. "In such a scenario (franchise model), resources get shared, decreasing the risk factors for any player to some extent," said the analyst.
MyDollarStore had tried the franchise model previously but without success. The chain re-evaluated its strategy in India when it noted that the franchising method followed in the US was not resulting in a proper brand communication with the consumer.
MyDollarStore is aiming at a more upmarket positioning in India and its dual pricing policy confirms this.
Its five stores (two each in Bangalore and Hyderabad and one in Mumbai) have products ranging from Rs 50-600 while its standalone stores offer a single Rs 99 price point.
m_madhumita@dnaindia.net


