Indian Retail; data goldmine awaits....

12 or 14 million outlets in India is a large number and also largely based on approximation. This same approach also works for generating the secondary or Retail sales data for most product categories in India. Even after so much of advances in mobile devices and technology most of the sales data is based on a representative sample which is indicative at best.

There is a powerful data goldmine waiting to be tapped into and I have recently written an article for Business Line wherein this issue has been discussed including a possible solution. This might end up being a Win:Win for all parties concerned and the Kirana or stand alone shop keeper might be benefited the most.

Yet another idea to support these traditional shop keepers and a governmental agency might be a good starting point to take this forward.

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Indian Retail - Point & Counter Point: Can interesting formats like this be viable?

Soda or carbonated drinks have been around for a long, long time and is often consumed under medical pretext. People tend to drink a carbonated drink to relieve flatulence although the CO2 in the drink does not really do anything to actually help!

During an earlier stint with a leading soft drink brand, I have heard of some weird stories which include patients with fever being prescribed a orange carbonated drink which was very popular in the southern Tamil Nadu markets.

Suffice to say that carbonated drinks have been and will continue to be popular. Although increasingly one does not see the ubiquitous “Goli Soda” which has an interesting looking bottle with a round glass marble inside. This which would seal the bottle’s top due to internal pressure.

During a recent trip to Coimbatore I noticed this interesting outlet named “Planet Soda”. They have this very innovative soda making and dispensing machine as you can see in the picture.

Each cup is sold for Rs. 10,/- and my guess is that the cost of that would be a maximum of Rs. 5/- after including electricity costs. This would give an approximate margin of 50% which is not bad assuming enough volumes are there to convert this into a respectable rupee earning.

So, this is a great idea for an incremental offering for small stand alone shops as also larger stores, with some space to spare.  This might even be a great idea for malls and larger chain stores. Stores can have such machines just outside their billing areas. Any excess or unused space which is customer facing can be used for this and the real estate can be monetized.

When I checked up on the penetration of this idea I found that apart from Planet Soda, which operates in the Coimbatore belt, another company in Ahmedabad - Geleriya Products - is quite active in this space and have a similar offering. As the actual technology involved is relatively simple, it might be just a matter of time before this takes off in a big way, if marketed and promoted well.

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Events can become a game changer in Retail

A few days ago I had shared a post on my Facebook Page about shopper events and how they have a significant impact on customers. This thought and memories of some of the powerful events planned and executed by the teams I have worked with was triggered by a video about an airline which decided to convert a park bench into a memorable experience for those who sat there. Watch this video and remember to notice the range of positive emotions that plays across the faces of those who are experiencing this event.
 

 

In that context I would also like to share another video of a restaurant which had conducted an interesting event where they said that “beautiful women need not pay”, The best part of this story is that the event was so successful that their sales increased by 35% for that day.

 

 

On the topic of events I happened to read a note how Indian Retail is increasingly experiencing the positive sales impact of events and most of the chain stores have indicated increases in the range of 12% or so during events.

But, that is only the tip of the ice berg. The bigger story is about the everlasting emotional impact that good events create in a customer’s mind which results in positive memories and also great word of mouth or rather in today’s world great word of mouse.

My conviction about the emotional impact of events is validated by the memories of those who have experienced the many events conducted by my team. One of my most personal favorite “Cadbury Love Bites” which was conducted in the late 90’s would have even become an internet sensation if only digital camera and YouTube had been present then.

Indian Retail – Point & Counterpoint: Potential of Shop-in-Shop

During one of my regular forays to the various Retail outlets I came across this very well presented Shop-in-Shop (SiS) for a coffee brand. The whole presentation was very impressive, the promoter manning the SiS was helpful and the coffee aroma that was wafting around that place had its own impact.

 

The fundamental idea was quite simple. The customer chooses the preferred roasted coffee beans, which is weighed and then put into the small machine which grinds it into the powder ready for making filter coffee. The customer whom I saw was so involved in the process that the anticipation of going home and drinking the coffee was clearly etched on his face. Definitely, this was one of the best moments of customer engagement seen by me.

 

Such SiS seems to be a good option for brands that are keen to engage customers at a retail level as also have a high level of brand visibility. One can see similar examples for color cosmetics in the counters maintained by leading brands in health and beauty as also department stores. However, the key difference was the degree of customer engagement. While the cosmetic counters definitely are very good for brand visibility, it is yet another purchase point for a shopper. Some initiative to engage the customer might increase the impact of such counters.

 

Lastly, is the all important factor of cost Vs benefit. I think that such SiS score high on this count also as brands are always in a tug of war with regard to visibility with the chain stores. A minimum guarantee for the space being occupied with revenue share would work out well for all concerned. The minimum guarantee can be considered as a marketing expense as it does deliver high brand visibility.

 

All in all a Win-Win-Win opportunity for the brand, retailer and more importantly the customer.

 

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Sign of changing times!

Saw this sign about power cut at a diagnostic center recently, which has some relevant points which Retailer's should explore.

 

 

• Adapting to the operating environment - With power cuts being the norm in Tamil Nadu nowadays, this was a good gesture to keep customers informed. I have experienced the few seconds (Which actually feels like minutes) of black out before the generator kicks in in stores. Retailers can consider putting up similar signage where relevant.
• Flexibility in signage - I really appreciate the small slots where the time of the power cut can be changed depending on when it has been announced. Many stores are littered with irrelevant signage just because they don't have such a flexibility and the staff cannot remove the same. Retailers should always factor in such flexibility in any relevant signage.

 

CLICK here to join the discussion about signage on my page

Retail signage idea

Recently I saw a promotion signage put up by a small stand alone apparel store. The signage grabbed my attention and would like to share it as it can be easily replicated by other Retailers.

 

 

The rough and ready look and feel stands out amidst the digital printed signs one sees everywhere nowadays. My guess is that this store has used some old flex material and spray painted the message. It is a great idea as the urgency comes across very well. Especially when the "Hurry" seems to have been added on in a hurry (pun intended). 

 

A few suggestions to make this even more effective –

• Use red paint for some of the key words like shown in the edited picture below.
• Reduce the text. Use “3” and “1” instead of words.
• Make the font size of “conditions apply” smaller. I do not mean make it miniscule, just smaller!

Indian Retail - Point & Counterpoint: Great ideas are a waste of time without execution focus

A few days ago I woke up to see a half page advertisement of a national Retail chain which was trying something new and interesting. They had affixed a scratch card to the advertisement and I am guessing that they were hoping that this would trigger curiosity and drive walk ins.

Sadly, the scratch card had been already scratched out and the offer was visible which completely defeated the very purpose of a scratch card. The other evident lack of execution focus was that the scratch card had been affixed upside down as you can see in the picture. (Retailer’s name has been masked)

 

 

A good idea and this is in line with the basic Retail focus of generating customer footfalls and then focusing on conversion inside the store.

However this good idea did not factor in some basic ground realities. Namely, that a scratch card which has already been defaced will have absolutely no impact on any potential customer. The other reality is that anyone will be tempted to scratch and see what is in such a card, very similar to the universal fixation of breaking the bubbles of a bubble wrap sheet.

So, another great idea which sounded fabulous when being presented seems to have fallen by the way side.

How could this great idea become very effective?

Very simple, factor in the reality that news paper agents will have access to these and if they can insert pamphlets in a paper, they can definitely scratch and see what is hidden.

Just print a random number sequence on a card which is stuck on the advertisement. This card can be shown while billing and the offer pertaining to that random number can be accessed from a data table which is uploaded in the billing software. The curiosity value is retained and the idea becomes effective.

Lastly, there could be one more perspective. In Tamil Nadu there is a ban on lottery or what is called as game of chance. This is one reason why coupons always have a slogan and then gets defined as a game of skill and not chance. (A leading ice cream brand had to withdraw a national promotion only in TN, a few years ago due to this reason). Maybe, the scratch cards were defaced deliberately. In which case why spend so much of money in making these cards and getting them fixed onto the news paper advertisement.

A distinct lack of execution focus seems to be coming through and that is a big NO, NO in Retail.

CLICK HERE to join the discussion about “Execution Focus” on my page and share your perspectives and examples.

Indian Retail - Point & Counterpoint: What is Customer Orientation?

Change has always been an issue for any Retailer and this is about the change in terms of currency. As shoppers we all tend to hand over large denomination currency and expect the Retailer to give us change. Smaller, stand alone stores handle this by giving small toffees in lieu of change and if we do not want that, it is either give the exact change or live with it!

 

Larger stores especially the chain stores cannot afford the indulgence of handing out toffees or sweets instead of change. It is expected that they give the correct change to the customer. Therefore these chains try and get adequate amount of change from a variety of sources apart from the banks that even include the groups of beggars. Read more about this in my earlier post.

 

This is both a business need which is painful as also a sensitive point with regard to customers.

 

That is the context, when I saw the following poster in a shop and I was very impressed by this initiative and also astute step. In a single stroke this Retailer has combined his business need with a shopper issue and has managed to create value all around.

• Value to the customer because they will benefit for no significant extra effort.
• Value to the business because, for no incremental cost, the Retailer is resolving an issue without having to run around for it.

 

This is what I call as a true customer orientation: a solution to a business need that clearly benefits the customer directly or indirectly.

 

So, customer orientation is not a separate, independent activity or department’s responsibility. It is about ensuring that every business activity of the Retailer delivers an end customer benefit and conversely, that also helps the business.

 

CLICK HERE to join the discussion about “Customer Orientation” on my page and share your perspectives and examples.