A brand is basically defined as a niche area earned by a product in the market for which it is known among the consumers. It is something with which a consumer is able to identify himself with. Usually, it takes decades for a particular company to get the status of a brand. This is because the market is highly consumer driven. For creating a specific niche area for oneself in the market, the economic and cultural factors play a very important role. The segmentation, targeting as well as the positioning of a brand, or in short – the STP, plays a very important role. Branding offers customer loyalty which is easy to retain than finding new customers that requires a lot of initial investments and costs.
Although when it comes to branding in retail, mom and pop stores are a brand in itself. Nothing can match the services provided by them, since they are the oldest of all other mediums of retail. The main reason behind this is the flexibility that is being offered by these stores. However, giants such as Reliance, the Aditya Birla Group etc. are already a big name in the country, which gives them easy access to venture in to a new domain.
Also, in India, the retail industry is the largest with an ocean of employment opportunities for the youth in the country ( it contributes to the country's GDP generating more than ten percent of it) And these brands are already well – known and are also offering good deals and discounts.
Branding is also important due to the stiff competition in the industry. With branding comes an identification in the form of a logo or a punch line. These logos or the punch lines define the company and what it stands for. For instance, the retail venture of the Aditya Birla group is known as More, hence giving an impression that the consumer will always get more by purchasing from here.
Online shopping, the latest trend among shoppers, is also a victim to the fad of brand recognition. However, the fact to be remembered here is that trust does not come easily when it concerns the internet. Hence, online branding is of utmost importance. With brand building comes trust and loyalty and the assurance that the a particular e – store could be trusted upon with our money in return to the commodities we purchase. It is easy for a customer to identify himself with a brand, even though it is on the net. For instance, Amazon.com, Ebay or RetailsDirect etc.