Retail in Tashkent (part 4): situation and perspectives

Experience shows that any problems still not a treat being resolved before they become truly dangerous. The managers, whose emotional state is in a "comfort zone", often declare: "We have thousands of people come every day and they will continue to come no matter what".

Unfortunately, this short-sightedness cannot be excusable in a highly competitive business. One unsatisfied customer today - is the threat of losing market share tomorrow. No one can guarantee that tomorrow, "on the other side of the street" there will not be opened a competing mall with attractive terms to customers.

Therefore, only those players who now think about what will happen tomorrow - will keep their market share. It is important to realize less flexible and lazy players are doomed to failure exit. However it high time to think about achieving better coverage and market share growth.

The fact is that the target audience of Tashkent retailers is not significantly altered. It continues to grow until a certain height, which is associated primarily with the natural growth of the population and previously inaccessible geographical areas.

Sooner or later, all of the available audience with nominal income "above average" will be exhausted, which means that the moment will come when the size of the market at the existing proposals will be fully worked out.

Tashkent shopping centers, supermarkets and chain stores are going to meet changes. First of all there will be changes of assortment and format-price.

In other words, the whole solvent audience with conditional income "above average" is almost involved at its maximum, and the only way for the further development is to attract not yet occupied or weakly involved customers from other segments. These customers are the most economically-active ones in our market and they are a major opportunity for further expansion in the market and to increase its share.

Thus, in the near future, it is likely to see the emergence of entirely new market for our solutions. Such as chain stores, discount stores, where consumers will be offered a minimum of related services compared to traditional supermarkets, but at a significantly reduced price.

Tashkent future retail – is for the most flexible and open to change players who will use the opportunities faster than their competitors. And here we are talking about online and network retailers, as only large network can implement the most effective solutions for the expansion of the market. Also it is a network that can best diversify its product strategy, run shops and stores of new types and new principles for offering new services.

Certain non-chain shopping centers, no matter how large they may be, will remain strong competitors for retail chains only in their geographic locations. The other strong competitors among the retailers will be shops and shopping centers offering a deep, but narrow range of products.

At the moment, Tashkent retailers are still in the stage of stable growth and reach new territories. Once the stage of expansion and development of vacant areas will be finished – the next phase will begin: the development of new areas, brand new types of outlets and the introduction of services, in order to cover not involved yet customers and to provide them more interesting offers than the competitors do.

Artem Safarov is author of the section “People and Brands”. He is specialist in marketing and PR. He studied crisis management at World Technological University. He worked as manager and director of marketing and PR. He launched his first product in the market at his 20s.