Bargaining In Apparel Retail Stores in India, Bargaining in Retail, Apparel Retail Bargaining

The Indian retail sector is characterized by a division between organized and unorganized retail. The industry's current value is approximately $411.28 billion, but only around five percent of the sales occur through organized retail stores. The organized retail sector is growing in size in India, leading to changes in shopping behavior and a reduction in bargaining, especially in apparel stores.

Bargaining has been a traditional practice in India, considered an art, and valued for the skill it demonstrates. Bargaining was prevalent among both the rich and the poor. Retailers in India were accustomed to haggling, and the concept of fixed prices was relatively rare in Indian apparel retail stores.

However, the scenario is evolving. In the present day, bargaining is mostly associated with the unorganized retail sector. Small, independent "mom and pop" shops and roadside vendors expect customers to negotiate prices, and they often start with higher prices, anticipating haggling. These types of shops fall under the unorganized category and encourage bargaining.

Conversely, organized retail stores, such as Pantaloons, Shoppers Stop, Reliance Trends, and Mahindra Retail, do not encourage price negotiation. They adhere to the prices displayed on the product tags and generally do not sell items for less, even if they face difficulty in selling the product. This fixed pricing policy in organized retail emerged as a result of the influence of foreign retail giants operating in India.

Traditionally, Indian retailers did not set fixed prices, relying on consumers to haggle for better deals. The shift toward fixed pricing gained momentum when foreign retail brands entered the Indian market in 2006. These foreign retail stores offered a different shopping experience and inspired Indian business groups to establish similar organized retail stores in various cities.

These high-profile retail stores may offer discounts and sales for various reasons, such as clearing old stock or during festive seasons. However, they do not typically allow for bargaining. Retail chains like Pantaloons, Shoppers Stop, Marks and Spencer, and Reliance India operate as fixed-price stores and maintain consistent pricing regardless of the quantity customers intend to purchase.

Anybody, who feels that negotiating prices are important and fun, cannot consider such posh retail stores for shopping. But India has a large unorganized retail sector. Small retail stores can be found all over the country that permits bargaining. They can visit such stores and fulfill their wish. Buying from small time retail stores is fruitful economically. But one also needs to horn up ones negotiating skills for the same.

Researches indicate that bargaining for prices take place all over the world. Most of the countries are welcome to the idea of negotiating prices before purchase. This is especially true for tourist destinations. Apparel retailers always have negotiation at the back of their mind while indulging in a transaction. Bargaining is rampant in developing nations. This is because it has a large market for unorganized retail.

But, this practice is lesser witnessed in developed countries like USA, UK, Canada, Australia, etc. 'Fixed price' and 'no bargaining' policies was firmly established in New York during the 1930s. Consumers started realizing that they were mostly dealing with employees who had little or no control over price tags. Besides, haggling could lead to insignificant gains, and also lead to wastage of time! Their efforts were not worth it.

It has been observed that consumers in the first world countries prefer to shop from fixed price stores as compared to the other. This is because there will always be a satisfaction of not getting cheated after making a purchase. In the other stores which encourage bargaining, there will always be an uncertainty if the best deal has been obtained. Consumers in developed countries prefer fairness over a good deal.

Ladies over men have the tendency of bargaining or haggling for prices. Besides, they have more chances of bagging a good deal as well, as compared to men. The trend is a bit different in USA, though. Men are more likely to negotiate prices on the sticker as compared to women. Almost 46 percent of women in America admitted to feeling awkward during the negotiation process. The case was not the same with Indian women.

It has been observed that shoppers from foreign countries, even first world countries, do not shy from bargaining in India. The large unorganized retail sector in the country offers a lot of scope for bargaining, even today. With the growing popularity of organized retail stores, this practice may witness a setback. But the chances are that it will never vanish completely from the country.

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