DIFM - Implications for Home Improvement retail

What does DIFM or DIY have to do with retail? Very simple - the model for a home improvement format has to duplicate the neighborhood hardware store in terms of having skilled workmen to do the job.

Given the clear mandate to the new government, expected economic recovery and hence an expectation of enormous amount of housing development, it is only a matter of time before this format attracts serious attention and players enter the same. There are a few stores in this format, but they are not majorly focused on the repair and maintenance part of home improvement.

Just like how supermarkets had to closely match the experiential differences offered by the Kirana to successfully attract customers, home improvement stores would need to offer services as the core value offering. Sales of the products would be almost by default as anyways the skilled workmen take a call on the majority of purchases.


Once customers experience the certainty and convenience of such a service offering, the dependence on the offering would drive loyalty to the store.


Alternatively, given the rentals in most cities, only a service centre can be there in most major neighbourhood catering to requirements. The store could be a warehouse type of format in the outskirts. Since such large purchases are usually once in a lifetime, a good range at very competitive prices and backed by the service offering would more than offset the trouble of going to a suburban store. And lastly, even that can be countered by the store offering pick up and drop facilities for large purchases.


Going forward, customer engagement and education programs might help in slowing ushering in a DIY culture. Mr. Ashwin Mahesh in his comment on the previous post about home improvement mentions about how painting the walls is a fairly simple job and he would do that himself. But, the reality in India is that such customers would be an exception to prove the rule and even if a small percentage of people started to do this, it would be a major step in that direction.