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Sudhanshu Ranade

Chennai , Nov. 28

Ambitious plans are being rolled out for organised retailing across the length and breadth of India.

Retail chains of 500 or even 5,000 stores are being freely talked about. Not only in tier I cities, but in tier II and tier III cities as well.

But there are only 50 cities with a population of 5 lakh or more. And cities in the one to five lakh range, though more numerous, have an average of only 32,000 households.

To be on the safe side, it should be assumed that in such towns, which are not hubs of governmental, industrial, commercial, financial, or any other major activity, only about 20 per cent of households (i.e., 6,400) have more than a modest amount of disposable income.

Under these circumstances, walk before you run is a good idea. Those who have never participated in a walking race may not know the difference between running and walking.

It is simple. When you walk, you always have one foot solidly on the ground. That way even as your imagination carries you to the high heavens, you remain firmly rooted in the ground.

The accompanying table is therefore worth a careful look, keeping in mind that many, sometimes most, households, may be simply unable to afford the services on offer.

Besides, the `one size' model does not fit all. Big spenders, and even more so the upwardly mobile, are fussy about the company they keep.

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