After giving the individual project a lot of thought, I decided that I didn't want to do a project on a well established store but on a roadside vendor who would have varied insights on the market that he caters to.
I came across Mr. Krishna Nair, a local jewellery vendor and asked him for a few minutes of his time. He obliged and went on to tell me about his little business. Krishna is a moving jewellery salesman who has been all over the country with his cart of trinkets and bangles. He has spent time in Bangalore, Bombay and Puttaparthi. He left Puttaparthi last year after spiritual leader, Sri Sathya Sai Baba passed away because he found that the number of foreign tourists to the place reduced drastically as did his target customer base. He then came to Mahabalipuram and set up shop in October, last year. Krishna's main target segment are students of the nearby colleges and foreign tourists between the ages of 20 and 30 years, both of whom show a fascination for junk jewellery and handmade belts, bags, etc.
Krishna gets his merchandise from dealers in Chennai and Delhi. The goods are couriered to him and he usually picks them up from courier offices in Mahabalipuram. He pays his dealers by the kilogram, for instance, a kilogram of assorted earrings or metal bangles and then sells these at individual prices. The other handmade merchandise like handbags and belts are bought at fixed prices per piece. His prices are constant with a 25-30% profit margin. Most of these goods cost the same for all customers, foreigners and Indians alike, subject to a small hike for the more affluent looking. Apart from his profit margin, he also raises his prices by an additional 10-25% leaving room for bargain shoppers.
When I asked him which were his busiest months, he told me that his business was flourishing from October but the summer months are usually slow because of the sultry weather and fewer tourists. His busy months start with August and go on to February.
Krishna's main competition are local jewellery producers. They make their own jewellery and sell these by moving around from one busy part of Mahabalipuram to another. Because of the fact that they make the jewellery themselves, their prices are higher and they practice push marketing because they have to sell what they make. Krishna, on the other hand, offers his merchandise for lower prices and can usually be found at the same spot near the beach. This makes it easy for his regular customers to visit him again and also makes him accessible to beach-goers and tourists. He never raises his prices to exorbitant amounts either, thereby making customers feel that they have truly benefited. He orders his merchandise from his dealers based on what he finds is selling more, and the usual fast moving goods are the handmade belts and bags.
During the busy months like October and November, Krishna sometimes moves his cart to the bus stop near Arjuna's Penance. This is because his cart receives more visibility from the moving crowd of tourists getting on and off the buses. His USP is his merchandise, namely the handmade belts and bags which are hard to find in these parts.
I came across Mr. Krishna Nair, a local jewellery vendor and asked him for a few minutes of his time. He obliged and went on to tell me about his little business. Krishna is a moving jewellery salesman who has been all over the country with his cart of trinkets and bangles. He has spent time in Bangalore, Bombay and Puttaparthi. He left Puttaparthi last year after spiritual leader, Sri Sathya Sai Baba passed away because he found that the number of foreign tourists to the place reduced drastically as did his target customer base. He then came to Mahabalipuram and set up shop in October, last year. Krishna's main target segment are students of the nearby colleges and foreign tourists between the ages of 20 and 30 years, both of whom show a fascination for junk jewellery and handmade belts, bags, etc.
Krishna gets his merchandise from dealers in Chennai and Delhi. The goods are couriered to him and he usually picks them up from courier offices in Mahabalipuram. He pays his dealers by the kilogram, for instance, a kilogram of assorted earrings or metal bangles and then sells these at individual prices. The other handmade merchandise like handbags and belts are bought at fixed prices per piece. His prices are constant with a 25-30% profit margin. Most of these goods cost the same for all customers, foreigners and Indians alike, subject to a small hike for the more affluent looking. Apart from his profit margin, he also raises his prices by an additional 10-25% leaving room for bargain shoppers.
When I asked him which were his busiest months, he told me that his business was flourishing from October but the summer months are usually slow because of the sultry weather and fewer tourists. His busy months start with August and go on to February.
Krishna's main competition are local jewellery producers. They make their own jewellery and sell these by moving around from one busy part of Mahabalipuram to another. Because of the fact that they make the jewellery themselves, their prices are higher and they practice push marketing because they have to sell what they make. Krishna, on the other hand, offers his merchandise for lower prices and can usually be found at the same spot near the beach. This makes it easy for his regular customers to visit him again and also makes him accessible to beach-goers and tourists. He never raises his prices to exorbitant amounts either, thereby making customers feel that they have truly benefited. He orders his merchandise from his dealers based on what he finds is selling more, and the usual fast moving goods are the handmade belts and bags.
During the busy months like October and November, Krishna sometimes moves his cart to the bus stop near Arjuna's Penance. This is because his cart receives more visibility from the moving crowd of tourists getting on and off the buses. His USP is his merchandise, namely the handmade belts and bags which are hard to find in these parts.
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