A CASE STUDY ON SAKTHAN TAMPURAN MARKET, THRISSUR, KERALA

Submitted by: RAHUL M U, 11125044

INTRODUCTION
Sakthan Thampuran market is one of the biggest markets in Kerala and is located at the centre of Thrissur, one of the 14 districts of the state. The history of the Sakthan Thampuran market (here onwards will be referred to as S.T market in this report) dates back to 1800s when then maharaja of Cochin, Raja Rama Varma (popularly known as Sakthan Thampuran) implemented many reforms in Thrissur. The market is named after the same ruler. The centre of the market is an open ground which then extends along the sides of a road to another big circular road. Shops are located along the perimeter of the circular road, in the open ground and along many branch roads. The market is located very close to the main bus stand of the city and the ring road mentioned is one of the busiest roads in the city. Hence the market enjoys great benefits of the location.

S T MARKET- AN EXAMPLE OF UNORGANISED RETAIL SYSTEM

The S T market is basically a traditional market square or city square where traders set up stalls, mostly temporary and without roofs. Over the years the market has witnessed many changes like new buildings and malls have come up near to the market. The city administration has cleared some parts of the market for development works and moved those shops into other buildings etc. Many shops that were once part of the market have thus moved to other areas. Even though this is an unorganised type of market, the market is roughly divided into anghadis or sub markets. Like there is rice anghadi, vegetable anghadi, fruit anghadi, etc which as the names suggest specializes in the selling of rice, vegetables, fruits, etc respectively. The market houses both retail and wholesale stores. The products sold in the shops include food related like food grains, vegetables, fruits, meat, fish, cereals, spices etc. Unbranded clothes, accessories, footwear, electronics items, plastic products etc The market is visited by all kinds of customers. Vegetables vendors claim that their customers include people of all income groups, but the case is different for a shop selling unbranded footwear. Two main features derived by observing the products the S T market sells are : 1. Majority of the products sold can be categorised as convenience products or more specifically staples. Some products can be considered as shopping products. But speciality or luxury products are very few, limited to some gold jewelleries. 2. Almost all products are sold are unbranded. Branded products are limited to some basic staple ones and local brands without any real promotion or marketing.

ORGANISED RETAIL NETWORKS

The organised retail includes everything from mall, super markets, speciality stores, department stores etc. The fast growing e-commerce also falls into this category. Even though mom and pop stores still has a significant share in this category, malls, super markets and speciality stores , which can be called as modern retail outlets are growing at a high rate in India. Compared to markets like S T market, these modern retail outlets offer an entirely different value proposition. They charge higher prices but in return provide the customer something more than the product in terms of added benefits or experiences. These retail outlets not only sell branded products but also staple convenience products like vegetables, meat etc.

VALUE PROPOSITION Modern retail outlets

S T market

In the case of S T market the main benefits to the customers are low price and convenience. Most of the products come directly from manufacturer or producer with minimum level of intermediately level. And there is no money spent on promotion, advertising etc. The expenditure on infrastructure and staff is minimal. Hence these shops are able to sell products at very low cost. And also the market is located in very convenient area for the customers. DOWNSIDE: The problems faced by the customers include lack of proper parking facilities, toilets etc. There is no option to pay by credit/debit cards. Some stores operate only at specific days and timings. As most of the market area is without roof and due to lack of hygiene, the shopping experience is not that pleasing to everyone. Assurance of quality is low.

The shop owners also face problems in addition to the ever increasing competition from other organised retail outlets. As they dont have any proper storage facilities, they are sometimes forced to sell perishable product like vegetables & fruits at a lower cost and hence bear losses. In addition to the lack of storage facilities, the supply of vegetables are directly dependant farmers or producers and third parties like trucks delivering them, hence these constantly face fluctuations in supply; it leads to price fluctuations too.

In the case of modern retail outlets like malls, supermarkets and speciality stores, the prices charged from customers are very high, but in return they offer variety of brands, quality assurance, better packing, better customer service, after sales service, product exchange, blend of shopping and entertainment, ambience, convenient timings, home delivery, promotional offers, acceptance of credit/debit cards, customer loyalty cards, parking facilities, rest rooms etc. And also the presence of proper storage facilities and well-oiled supply chains ensure chains ensure that there is minimum fluctuations in the supply of goods. DOWNSIDE: Price remains the main factor that keeps some people away from these modern retail outlets. This is due to the cost incurred in promotion and marketing, due to many levels between the manufacture and customer, the cost of infrastructure, front end staff and other staffs, etc. Other challenges include the cut throat competition within the segment. The customers also have a certain degree of misconception about these outlets that prevent them from shopping from these.

WHAT FUTURE HOLDS

FOT S T MARKET
Even though it seems that modern retail chains offer more benefits to the customers than markets like S T, these markets will survive for many more years to come. The success of these unorganised retail markets differ from market to market and product to product. For example in the case of the S T market the shops selling vegetables, fruits, meat , food grains etc are still the preferred option to buy the respective goods for the customer. Even with the presence of many supermarkets like reliance fresh that sells vegetables, it had minimum impact in the sales in the S T market. In fact one of the 3 reliance fresh stores in the city has been closed due to lack of sales. The primary reason for this trend is customers are not ready to pay significantly high prices for same vegetables and fruits. And in the case of product like footwear, clothing and others, even though they are not branded and are of lower quality, it still has customers, this is due to the fact that our economy still comprises of lower middle class and low income people who are price conscious and less brand conscious. And also due to the delay in billing at super markets, people will prefer these stores if they want to buy say just one or two products. And there are many exclusive local products that are available only in this market. Another important reason why these formats of retailing will survive in the years to come is that people are used to shopping from these markets. Even with all the odds some people like to shop from a crowded street market that has an ambience of its own.

FOR MODERN RETAIL OUTLETS

The Indian consumer is changing; there is a significant change in his income as a result of which he demands higher quality shopping environment and stronger brands. The influence of media has left him more brand conscious. These factors aid the growth of modern retail outlets. India has emerged as one of the most attractive countries for both domestic and international retailers. As explained in the previous section, these modern retail outlets offer many benefits to the customers and many customers are willing to pay for these benefits. Unorganised retail channels like S T market and organised retail outlets cater to different needs of different people. Retail outlets are the final or interface end of a product reaching a customer, all the formats of retailing will continue to play an important role to efficiently sell the products, even though there will be a change in the share of their contribution in years to come.

Both S T market and modern retail outlets will continue to be important formats of retailing

S T market and modern retail outlets cater to different needs of different people. S T market offers low price and convenience, targets price conscious cutomer modern retail outlets offer benifits at a higher price, targets the changing Indian customer with high brand awareness

S T market unorganised form of retail both retail and wholesale offers low price and convenience sells unbranded products, product quality is low lower middle class and lower income groups constitute primary customers modern retail outlets fast growing format charges higher prices offer benifits like-quality,service,offers, exchange, experience,convenient timings, delivery, pay by card,loyalty cards,parking home

changing Indian customer demands better shopping experience & stronger brands