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We have seen how politicians use slightly altered speeches and narratives depending upon whom they are addressing. For national audiences, they cover issues of national importance. At state levels, it is more about issues concerning the state in question. The same principle is applied when they address audiences at city or municipality levels. What they are broadly doing here is localisation. So, what is hyper-localisation in retail?

Retail hyper-localisation is the act of fine-tuning business strategies to suit the needs and expectations of a very specific local, neighbourhood base of customers. These adjustments or variations help foster a deep connection with customers that keeps the potential of sustaining and improving footfall and turnover. This blog showcases how hyper-localisation plays a role in sustaining and improving sales in retail.

High Customer Resonance

Every new retailer goes through a hard time attracting customers and generating footfall. New value oppositions are adapted and improvised by existing businesses to prevent losing market share making things more difficult for new retailers. Even if competition is minimal, it is not easy to change the buying behaviour of customers and divert them to a new store. Retail hyper-localisation with value propositions that cannot be easily replicated or adopted by competitors comes to the rescue here. Hyper-localisation helps retailers resonate more profoundly with customers in the local neighbourhood. Resonance is a term with broad scope and hence, there are numerous ways in which this resonance could be created. Customers prefer buying from businesses that they resonate with in one or more meaningful ways leading to increased footfall and the possibility of increased sales. For example, decorating a store reflecting the essence of any local festival immediately echoes a resonance. However, this effort should not look like a marketing gimmick but a genuine attempt at celebrating the spirit of a festival.

Precision in Merchandising

What is on the shelves of stores must have value to customers. Generic merchandising strategies and decisions are a safe approach to begin with but it is not sustainable for long. It reflects a lack in the understanding of consumer behaviour which is not a good sign if a retailer sees merchandising as a critical component of value proposition. Alternatively, hyper-localisation demands merchandising to be aligned with the needs and expectations of local customers. When this is achieved, it is natural for customers to turn to such businesses on a simple psychological premise that people go where they find what they want and possibly want.

More Effective Advertising and Promotions

The accuracy of targeting and effectiveness of advertising and promotional campaigns is always a challenge. It applies to digital marketing as well. This challenge compounds with the increasing size of the target audience and variations within it. For example, if a segment is defined as people who use a social media application for more than two hours every day in a given geography, the ads still end up on the feeds of thousands of users with no interest in the promoted product service. Both advertisers and platforms know that nothing much can be done about this. The targeting of advertisements cannot be done beyond a certain extent. However, things take a different turn with hyperlocal marketing. In hyperlocal marketing, the emphasis is on a small and specific base of customers. This makes it easier to define the target segment and improve the accuracy of advertising and promotional campaigns. A narrowed scope of study allows in-depth and extensive analysis of consumer behaviour within a short time. This improves the effectiveness of brand communication via advertisements and promotions leading to increased scope of retail sales.

More Effective Pricing

Retail pricing strategies have profound implications on sales. Retailers often flex their prices, sacrificing their margins to attract and retain customers. This is a common practice among local retailers. Now, when any retail business wants to open a store in a locality, their prices also must be competitive. This is nothing but the application of hyper-localised pricing strategies. It brings new retailers on the same level playing field as that of the existing retailers in a locality. With these price adjustments in place, brand distinction is no longer possible on the grounds of pricing. New retailers can also charge lower than the prevailing price levels as a part of a market penetration strategy. Hyper-localised pricing strategies pave the way for achieving higher sales by allowing retailers to price their products differently in different localities as per the applicable factors.

Better Personalisation

Personalisation is hard to succeed at. Even retail giants like Amazon or Reliance do not get it right most of the time. Personalisation in retail often ends up being vague. A dearth of sufficient and relevant data and flaws in predictive analysis are the two biggest causes for failing at personalisation. In hyper-localised retail, the extent of study is reduced to local neighbourhoods. Human judgement combined with the use of analytics allows retailers to formulate more accurate personalisation strategies and offerings. As the emphasis is on a micro base of customers, hyper-localisation creates the scope to carry out an in-depth analysis of consumer behaviour and other marketing parameters. An improved understanding of consumer behaviour lets create better personalised offerings leading to improved chances of sales.

Focused and Tailored Operations

Retail operations management also can affect sales in retail. When we say operations, it includes the entire gamut of business functions like purchase, inventory management, warehousing, logistics, HR, marketing, finance, technology, etc. Every store needs some localised adjustment in these functional strategies to align better with the local market conditions. For example, if certain products (of a store) are sold more in one locality, the functional strategies must also be adjusted (hyper-localised) accordingly. The storing requirements of such goods can be slightly different or it might take suppliers longer to replenish stock levels due to the store being located in a traffic-busy locality. The outcome of such retail hyper-localisation is that the store in the example here will be able to ensure that the required inventory levels are consistently maintained leading (aided by retail store SOPs) to no loss of sales (products in question) and reinforcing the prospects of increased sales of other goods as well.

Sustained Loyalty

Consistency is closely related to loyalty. Customers seek consistency in the value proposition offered and delivered to them. This value could be in the form of resonance in merchandising, in-store experience, home-delivery discounts, staffing, store layout planning, technology, local sourcing, etc. Done right and consistently followed in the long run, hyper-localised retail helps maintain consistency in the delivery of value propositions relevant to the local customer base. This consistency makes it easier for customers to decide if they should stick to a store or a brand. Thus, over longer periods, hyper-localisation helps sustain customer loyalty. This loyalty shows up in footfall and turnover.

Community Engagement

A strong community engagement by brands and businesses is often perceived as a positive gesture in societies. It helps retailers fulfil their social responsibilities at the local level pushing it into the confines of hyper-localisation. It gives an opportunity to foster customer loyalty and create positive word-of-mouth. Community engagement can take place in several ways. Partnering with prominent local dignitaries in their social work activities is one of them. Hosting or sponsoring local events shows the involvement in promoting social and cultural norms. Cause-related marketing like sharing portions of sale proceeds towards charity or any other social cause is also common. Retailers can also think of hiring local students as interns while adhering to the applicable laws.

All these engagements help customers see a brand or a business in a responsible shade. Positive implications of community engagement on business should be perceived only as its by-products and not objectives.


The hidden truth is that competition has become hyper-local. If it has not yet arrived, it will be there soon. It is already difficult for retailers to woo customers for so many reasons like increasing competition, changing needs, and online buying options. In the face of these challenges, hyper-localisation helps create and sustain the much-needed resonance with customers in the local neighbourhood. It not only helps hold market shares but also increase sales. For creating this resonance, it is critical to understand consumer behaviour at the local level without which stores end up shelving goods that do not reflect the current and potential needs of the local customer base. This ultimately hurts turnovers. Even with the right goods with the right price tags on the shelves, advertising and promotion must be on point. Hyper-localisation is helpful in this context as the emphasis is on a small base of customers allowing the scope of better analysis and better personalisation. When it comes to operations, hyper-localisation demands that local factors are taken into consideration to align the functional strategies that best serve the local market conditions. These alignments are critical to achieving consistency and improvements in footfall and sales. Sustained over time, hyper-localisation helps maintain consistency in value delivery that contributes to building brand trust, customer loyalty, and continued purchase. Community engagement further helps build a strong brand persona at the local level which has many indirect but positive business implications.

Hyper-localisation is the new line of distinction between good and poor sales performance.

For enquiries on retail business solutions or to speak to one of our expert retail consultants, please drop us a message and we will reach out to you.


What does hyper-localisation mean in retail?
Retail hyper-localisation or hyper-localised retail is a retail business strategy in which an individual store is aligned with the market environment of the locality or neighbourhood from where it operates or will operate. Hyper-localised retail involves customising offerings, experiences, other value chain elements and even functional business strategies to cater effectively to the needs and expectations of a highly specific, local customer base. It crosses the barriers of traditional localisation by emphasising localities and neighbourhoods.
Why is one of my stores not able to generate enough sales?

Both the long and short answer to it is hyper-localisation. Is your low-performing store aligned with the local market conditions and the needs and expectations of the local customer base? Here are some of the areas you should consider for hyper-localisation:

  •         Merchandising: Are you offering what your immediate customer base needs?
  •         Pricing: Are you pricing your products correctly?
  •         Quality: Are you maintaining the required quality standards?
  •         Advertising: Are you able to reach out effectively to your neighbourhood audience?
  •         Personalisation: What are your efforts at clustered personalisation?
  •         Operations: Are your operations aligned to meet the hyper-local requirements?
  •         Branding and Positioning: What efforts are you putting to get the required brand recognition and market positioning in the locality?

To find answers to these questions, in addition to business acumen, you will also need insights from market research and make use of data analytics.

Author Bio

Rupal Agarwal

Rupal Agarwal

Chief Strategy Officer

Dr. Rupal’s “Everything is possible” attitude helps achieve the impossible. Dr. Rupal Agarwal has worked with 300+ retail e-commerce brands and companies from various sectors, since 2012, to define their growth strategy, push their limits and improve performance efficiency. Rupal and her team have remarkable success stories of helping brands achieve 10X growth.

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    The idea of having Ecommerce Consultants on-board from the beginning itself points towards reducing the involvement of the promoters in daily operations. Ecommerce Businesses willing to be a brand reaping profits & sustaining the competition must ensure that most of their processes should be automated. The more the manual intervention, the more would be the errors.

    In Ecommerce business, you get only 1 chance to impress the customer & if you mess up there, you lose the customer for long.

    Process automation in respect to all the activities pertaining to customers from order receiving to order fulfilment is a must for a seamless experience for the customers.

    Task Management is another grey area where most deadlines fail as 90% of the tasks are assigned manually & are forgotten, unheard, misunderstood or mistaken.

    YRC Team of Ecommerce Management Consultants helps to make maximum of the processes system-driven to ensure minimalistic manual intervention.


    No matter how good your product is, the customer would know only if it looks good.

    Photography includes the following steps:

    • Cataloguing your products
    • Cataloguing your images
    • Backup your images (A few cloud storage solutions include Dropbox, Google Drive, Bitcasa, Apple’s Cloud Storage etc.)
    • Choose the right camera & lens (You may also outsource the photography to a third party agency)


    Digital Marketing includes SEO & SMM. SEO i.e. Search Engine Optimization includes activities like back-linking, meta tags, blog-writing etc. to ensure your website ranks on the 1st page on Google Search.

    Next comes SMM i.e. “Social Media Marketing” which as the name suggests including promoting your products on all the social media sites, email marketing, influencer marketing & several other BTL activities.

    These activities are going to be recurring & would decide the traffic on the website, the conversions, whether the right target market is tapped, the likes, the views, the orders, the reviews & much more. YRCs Ecommerce Consultants create a budget for digital marketing right from pre-launch to launch & for each month thereafter.

    Building digital marketing strategies in coordination with the agency, selecting them to signing them off would be the role of YRC.

    This ensures seamless coordination, detailed interactions & desired execution as it is always advisable to work with a single agency than multiple of them.


    Selection of the right software for smooth functioning of back-end operations right from production to webstore display would be suggested and integrated by YRC Team.

    YRC’s Team defines SOPs of Product Movement, maps it with the locations & people. They then create a blueprint of all the features required in the software & help in shortlisting & selection.

    IT Integration involves connecting your offline inventories with real-time online webstore so when a sale occurs, inventories get deducted real time across offline as well as online platforms.

    This helps in accurate inventory management, maintaining the MOQs, re-order levels & achieving the optimum inventory levels.

    Some popular software include unicommerce, viniculum for your front-end website management & Genisys for your entire back-end Purchase, Production, Accounting, Invoicing etc. management.


    • How many cities or countries you wish to sell in?
    • Where should your Warehouse be located?
    • Should you have one warehouse in each country or city?
    • Should you be having your own delivery team in your base city?
    • Would the 3rd party vendors be reliable? What happens when they lose or misplace your product during delivery?
    • How should I manage the logistics if my goods are coming from different countries?
    • How should the goods be stored and barcoded?
    • How much space do I require for warehouse?
    • I am sure several such questions must be haunting you while you think of starting your own fashion ecommerce brand.


    At YRC, our warehousing and logistics experts can help you devise a strategy for all of the above mentioned queries and much more.

    We design the layout of the Warehouse considering the inward, goods processing, software entry, barcoding, outward, goods return, scrap storage, goods stacking & much more.

    Logistics route plan is devised considering the manufacturer to your warehouse and from there to last mile delivery locations.


    This Step involves 03 distinct parts:

    Part 1: Choosing the right Platform:

    From several platforms available in the market right from Shopify to magento, woocommerce, prestoshop, wordpress etc. you must choose the one that fits best for your business

    Part 2: UX Designing:

    “UX” denotes User Experience, which if put in simple language is building the functional requirements of the website.

    UX Designing includes designing the features required in the website, customer journey map, website features, the browsing features, navigation features, ecommerce order management process flow, checkout cart features, catalogue management, ecommerce payment system, cross selling features & much more.

    “As per statistics, 68% of the customers abandon the carts before payment”

    An interesting UX ensures the customer sticks on to the website for a longer time.

    Part 3: UI Designing:

    UI stands for User Interface, which means designing the look and feel of the website. UI includes using the right colours, elements and the entire aesthetics of the website.

    A good User Interface ensures the user completes the task that he has come for. It navigates the user through the journey of the brand in the simplest but most effective way.

    The UX designer maps out the bare bones of the user journey; the UI designer then fills it in with visual and interactive elements.

    If User experience is the bare bone, user interface wraps it up with an attractive cape.

    At YRC, our team if experts can help you develop the entire User Journey to ensure it is engaging!


    This step follows the “Designing” Phase, whether you have an in-house design team, freelance designers or an outsourced design company. It is one of the most exciting phases, as here you see your designs turning into products & your ideas turning into reality.

    In most start-up cases, production is outsourced i.e. brands tie-up with the established manufacturers/ job-workers to get their products manufactured.

    Sampling involves multiple 04 Stages, Fit-Sample, Prototype Sample, Pre-Production Sample & the Production Sample.

    Prototype Sample is the first sample provided to the buyer. It can be in any fabric/ colour. This sample is just to understand whether the product design looks equally great in reality.

    Fit Sample, as the name suggests is prepared to check the fit of the garment i.e. the various sizes, length, width etc.

    Pre-production is made by the actual production line. Here the stitching quality and other aspects related to manufacturing are checked. This is the last stage where rejection can be accepted.

    Production Sample is made before the production which is the replica of what is going to be finally produced.

    Once you are through with all this, you are good to go ahead & get your goods manufactured.


    Product Designing or Sourcing is the heart of the Ecommerce Fashion Brand.

    Product Designing / Sourcing can be done in several ways, as follows:

    • In-house Design Team
    • Freelance Designers
    • Outsourced Design Team
    • Ready Product Sourcing (From Manufacturer or Wholesaler)

    At YRC, we evaluate your business strategy & business model to arrive at the decision, which of the above ways would be best-fit for your business. In certain cases, product sourcing may be a combination of the above.

    These are the people who are going to build your brand! Whether they are the designers or merchandiser, your brand look is going to be in their hands.

    If you are designing each garment from the scratch, the sourcing would play crucial role in developing design identity of your brand.

    Sourcing includes fabric, trims, lining & all the raw material required to build the garment.


    Branding is the “Look of the Brand”, right from logo to tagline, the colours used, the brand story, the brand communications on social media, the packaging & all the other aspects which speak directly or indirectly to the customers. Branding constitutes the look & feel of the brand & hence must be thoughtfully planned to match with the product that we are selling.

    Branding must appeal to our target audience. Example : A golden colour logo depicting finesse, art, richness, premium, however beautiful it may be individually cannot go with a brand selling affordable kids wear products. So, your logo must be in-line with your brand positioning, whether you are an expensive brand or a luxury brand or a value for money brand, it must be depicted from your “Branding”.

    It is an integral part to attract the target audience.


    Organogram is the “HR Blueprint” of the business which is created at the onset, to map out the team required across each function at various stages of the business. At the launch, only key people need to be got on board to ensure the project gets started & at this stage, all of them need to multi-task. Similarly, certain financial as well as operational goals are set for addition of the further team. Example, for the operations team, we hire 1 operations manager during the pre-launch phase & we add 1 more only when the business kicks-off & we reach a volume of selling more than 1000 pcs/ month or a turnover of more than 0.1 million USD.

    SOPs are Standard Operating Procedures, a bible to run the entire organization right from Sales, Purchase, HR, Order receiving to Order fulfilment, Inventory Management, Accounts, Warehouse, Logistics, Supply Chain, Production & all the other relevant functions for the business. Business must be organized from its first day of operations; only then the tasks can be delegated.

    At YRC, we design the organization structure, the processes, and approximate time taken to execute each process, job profile of every member within the organization, their KRAs, KPIs & the Reporting Structure.


    Critical Pathway Analysis (CPA), is a project management technique which cannot be overlooked while launching an ecommerce fashion brand. Brand launch process is cumbersome with multiple inter-dependent & time-bound tasks involved, which need to be tracked to ensure the project remains on track.

    CPA outlines key tasks across the project, their turnaround time (TAT) & the dependencies of tasks upon each other. It identifies the sequence of tasks, their interdependent steps from inception to completion, their criticalities, and their dates of onset, target dates of completion along with the key responsible person for the respective activities. Critical Pathway helps in understanding the unimportant & not urgent tasks which may jeopardize the execution of the project because of an unexpected snag! It also maps out the potential bottlenecks which might be posed because of the dependencies of tasks upon each other & cases where the next task cannot be commenced before the completion of the previous one.

    CPA detects the minimum & the maximum time involvement of a particular individual or team to execute the task, thereby arriving at the overall deadlines associated with the project.

    At Your Retail Coach, we design the Critical Pathway & review it periodically to ensure the project is on track & the progress is measurable.


    Business Strategy includes the vision, mission, goals, business model, business plan & strategy for all the functions within the organization.

    Business Strategy is a well-defined plan that outlines who, what, where, why, how & when for the company; for example, who would be the target market, how to attract the target audience, when to launch new products, where to operate from, how to handle competitors, what would be the USP, what would be long term goal of the organization & several other answers to the 5Ws of Strategy.

    Business Strategy aligns the organization towards a common goal. Business SWOT helps company to identify & overcome their weaknesses & focus to sharpen the strengths. Business strategy forecasts future risks and helps business in building skillsets to overcome the potential threats.

    YRC’s Business Plan focuses on creating a “Blueprint” of the business, thereby deriving the feasibility of the concept & gauge whether the opportunity is lucrative to invest time, energy & effort. Business Plan creates cash flow understanding i.e. building inflow & outflow cash projections from Week zero to week 60 i.e. 05 year projection. Business Plan calculates the capital investment, operating costs, one-time costs, recurring costs & all the other numbers relevant to obtain the breakeven sales, return on investment, return on capital, internal rate of return & several other ratios. Business Plan is also one of the important requirements if you are targeting the “Investor Route”. Fund raising becomes extremely transparent & channelized. With business plan panned out clearly, the business will know until what point must it be stretched & where to stop, which reduces the probability of unplanned investments.


    Starting the concept of Ecommerce Fashion brand with Market Research ensures we get detailed understanding of the industry & this research report also acts as a social confirmation for your concept. Market Research helps in understanding the target locations, their population, potential online buyers for your product, competitors for each category, and top selling products of the competitors, competitors’ price range, offers & their responses & much more. Market Research helps in thorough understanding of your brand position as compared to our competitors. It helps in identifying gaps in the market, in your category along with the scope of the said product in the desired market. This will help in validation of your concept & prevents you from making the same mistakes as your fellow brands, eventually saving your time, energy & efforts. This phase is also a make or a break phase, as the market research study may at-times come up with some eye-popping numbers & statistics which might compel you to re-think on your product or category that you are planning to sell or alter your entire concept itself!! Market Research Reports analyse the competitors’ webstore for their traffic, conversion & sales. This is extremely valuable information to derive our inventory budgets & projections, which takes us to our next phase.