Blue Ocean in Retail

We have been thrilled by the concept behind the Blue Ocean strategy wave that's hit the management circles , however on delving deeper into it one realises that this is an interesting tool one can use for -

• - understanding the market opportunities , from consumer need ,how do you work on taking the willingness to pay ( WTP ) up .


• -finding out who are ur NON consumers in a big way ( when was the last time that this happened ! ) by plunging into the market and see signs that open up non segments and not classical market research driven segments ( for eg : one big segment for Nintendo WII is old aged people which wud have never come out in a normal research )
• -drive differentiation up and cost down .
• -and in the process make competition irrelevant .
• Its about Winning Without Fighting !

With this in mind lets see whether we can use the blue ocean frame work for creating India's retail blue ocean player who for sometime can make competition irrelevant ( as said blue ocean strategy the advantage if driven ..can last for minimum 2 years to max of 7 years ie in case no competition wakes up :)

The assumption is that India might have still space in creating a clear differentiators in the premium segment , the Blue ocean retailer ( BOR) could have a market and profits that could be made .

Reduce :the Blue ocean retailer needs to reduce the follow the herd mentality of going to high traffic areas where other brands go ( thus save on rentals ) and currently

all the premium operators in retail in India have the same brands ,same look and feel inside , the differentiators degree is virtually 0 ,so create the difference .

The BOR has to create an aura around you could get the non consumers currently who don't want to go to the normal premium retailers .One could create a mass customisation process of say in the apparels section of tailored to stitch and deliver ,there are more thoughts ...

Create :Create a distinct service difference which could include say faster transaction closure , guaranteed parking , no questions asked returns for several categories of customers ,personalised attention to regular customers

Raise The level of delivery of service , give the customer something to expect when he or she returns .Raise the perception higher that the customer might not hesitate to spend more thus drive the WTP up.

Eliminate : wasteful electricity spends , reduce extra staff by automation , drive innovation in getting customers in and delivering service at a lower cost , say use the word of mouth medium only to drive traffic .Cost down should be the motto ,with an eye on removing unwanted non value adding processes .

Blue Ocean retail space exists in India , as mentioned earlier ,its about locating the space ,working at the format , and also getting the equation between WTP and cost right , as they say driving the wedge between these that would be the key !