Service
This refers not only to the commonly assumed parameter of “how many sales people are there to serve” or “if tea or a cola is served to customers” but to operational parameters such as “availability” of the promised merchandise at all times – in expected sizes, shapes, colors, assortment et al. Service can also refer to policies such as “returns” or “exchanges”, “warranties and guarantees”, availability of qualified personnel to assist customer queries or request for information.

Experience
This is a crucial intangible and can be a function of several factors e.g. overall store ambience; ease of shopping in terms of layout of merchandise, labeling, check-out convenience and speed, access to the store itself including parking, customer relationship effort from the store management etc.

Price
Finally, this is the fourth major variable for creating the USP. Low price itself can be the most important parameter in some instances, but more importantly, it can also imply the “appropriate price” as perceived by the consumer after subjectively assessing the impact of the other three variables mentioned above.
As far as India is concerned, there have been relatively few start-ups with a clearly defined USP. Most have, so far, tried to offer all of product, service, experience and price without realizing that compromises have to be made on one or more if the business itself has to be financially and operationally viable. From a consumer’s perspective, she would obviously like the maximum choice with exceptional service and a wonderful experience – all at the lowest price!
As per KSA projections, the evolution of organized retail in India should follow the trend indicated above (figure 2).

Consumer’s demand for new format shall be driving the growth for organized retailing. However, it must also be kept in mind that consumer expectations are also evolving and changing rapidly over time. Thus, for example, Department Stores per se were a novelty for the Indian consumer at the beginning of the 90’s. The ability to look at and shop for major national brands under one roof was a major USP and therefore Shopper’s Stop had an excellent run in its first 5-6 years of existence. However, as more and more retailers upgraded the space and size of their own outlets and more apparel companies opened exclusive outlets offering a larger width and depth of product, this USP seems to have lost its sheen. With the advent of Shopping Malls that offer multiple brand choices, department stores such as Shoppers Stop have to reinvent their USP or else they are likely to lose business to exclusive stores of the same brands operating in the same Malls (or others in the close vicinity).

Another example can be in the Durables sector. The opportunity is ripe for start-ups of national or large regional chains offering a wide range of consumer durables (white and brown goods, entertainment electronics, office / home computing and accessories, and small gadgets and home appliances). The USP can be built-up on the line indicated as under (figure 3).

Thus, to summarize, the emerging organized retail sector offers unparalleled opportunities to entrepreneurs and existing businesses seeking an entry in Retailing. The consumers are open to change, and several USP platforms can be occupied since at present, the “canvas” is more or less blank. However, the new entrants should carefully strike a balance between what the perceived need of the consumer is and what is financially prudent and operationally feasible from the business perspective. Having taken a decision for a particular format and its USP, the business managers must periodically review the external developments to assess if the original USP is still relevant and in case the external environment has changed, then reinvent the format and its USP so as to continue to have relevance in the Indian context.