Small Cities, Big Opportunities

Retailers are now looking beyond metros to tap a new breed of customers who are willing to shell out money on experiential retail. A foray into the smaller towns is seen as a long-term investment, because if retailers don’t enter this market today, someone else will and take the hold of this market. The cost of getting this share back will become an expansive affair for retailers. So, what exactly works for a brand in Tier II and Tier III towns? Tanya Krishna finds out

- Tanya Krishna

Pricing Strategy

Though Tier II and Tier III population has opened themselves to the branded fashion and lifestyle products, they do look for products that offer proper value for their money. Neha Shah, Head–Marketing, Pepe Jeans, says, “Pricing and value are the most important factors when it comes to targeting these markets. They are two very important components in the product mix.”

Open to Customization

While we see an exponential acceptance of branded fashion by the Tier II and Tier III piers, they still look out for ‘their kind of fashion’ being offered by the brands. Bijit Nair, President-Retail, AND, says, “We take it as an opportunity to understand the consumers’ tastes in these markets which might be slightly different, either in terms of fashion or silhouettes or the way we present our line in the market. Being agile to or open to changes and to learning, we are able to quickly make those necessary changes.”