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July 26, 2004

DVDs influencing grocery market ?

At least in the Indian community out here in the South Bay. After doing rounds of nosy questioning I found the real reason why people are switching their pet grocery store every now and then. Trick is the incentive model of these new stores, which are methodically meant to steal customers from the existing grocery stores. Perfectly legitimate business tactic. So what's the catch ?

Answer lies in DVD rentals and a good collection of Indian language movies! It's interesting to observe the important role DVDs play in deciding where to shop and how much to shop. With free rentals thrown in at a certain level of shopping and also flexible return policy to match our laziness, it's turning out to be a decent business development strategy resulting in profitability.

I wonder what other businesses can exploit this weakness for Bollywood movies and free DVD rentals ! NRI market is a big market in terms of purchasing power.

July 26, 2004 in Silicon Valley | Permalink


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