IMPACT OF FORMAT ON RETAILERS' BRAND: ITS THREATS AND OPPORTUNITIES A THEORETICAL ANALYSIS
Abstract: Historically, retailing
was carried out in traditional
store format, with
minor non- store
variation, like catalogue selling,
direct sailing and telemarketing till the last decade of twentieth century.
Even those non- store formats were restricted
among fringe players,
while big retail
houses concentrated more on
on-land business model.
The last decade witnessed a wide
metamorphosis in the retailing business. Propelled by growth in technological
innovation, mainly World Wide Web the retail industry is evolving to serve the
more convenience and value seeking shoppers. As a result, retailers are
venturing into multi-format structure to deliver higher value proposition to
the shoppers. But adoption of new formats brings with it opportunities, as well
as, threats. The fall-out can be distinguished into three heads: 1) When a
patron of the parent format switches occasionally or permanently to another
format, even of the same retail brand, he/she seeks an altogether different
value proposition. 2) While switching
of format, the shopper
carries to the new format the expectations, built on shopping experience and
perceived brand image. If expectation are disconfirmed, shoppers engage
in constructive processing
that can result
in revised brand
image 3) As a
consequence, retailer's success (or
failure) in synchronisation of
delivering and communicating retail
value proposition across
formats, results into reinforcement (or distortion) of retailer's brand
image. The present article attempts to bring out the nature and dimensions
of threats and
opportunities faced by the
retailers and its
consequence in the
light of the
above mentioned issues. It is hypothesised that a retailer with
multi-format system would need to define, design and deliver integrated values
across the formats and there by creating consistent brand image.
Author: Piyush Kumar Sinha,
Syahmardi Yacob
Journal Code: jpmanajemengg090009
