One fine day there appeared a recruitment advertisement for another yet-to-start chain and lo behold, the name of the proposed chain was big bazaar. The first half of that day was complete pandemonium with everyone trying to figure out how this could have happened and if our application for registration had been declined for any reason. After much huffing and puffing, it came to light that the matter had slipped between tables by someone, somewhere.
Saturday, June 27, 2009
What’s in a name!
One fine day there appeared a recruitment advertisement for another yet-to-start chain and lo behold, the name of the proposed chain was big bazaar. The first half of that day was complete pandemonium with everyone trying to figure out how this could have happened and if our application for registration had been declined for any reason. After much huffing and puffing, it came to light that the matter had slipped between tables by someone, somewhere.
Wednesday, June 24, 2009
Shopping in a nighty; The paradigm shift!
We once had a group of women who were invited to share their view of shopping, where they shopped and why. There were many interesting and even startling feedback points with regards to the modern air conditioned stores as compared to the tried and tested kirana.
One very interesting comment made by several ladies was that they need to dress up and look smart if they were to visit the modern stores, whereas they could walk across in even a nightie to the kirana store. Apparently, the uniformed staff who spoke in English, the modern ambiance, etc had created a self induced sense of very high standards with regards to purchasing from the modern format stores. This obviously did not help the stores as it was seen as slightly intimidating and definitely not “my store”.
One needs to understand that in the Indian context, dressing up means precisely that and starts with a smart saree or similar attire, hair to be groomed, etc. Imagine the consequence. Even the housewife staying next door to such a store would have to spend considerable time and effort just to get ready for shopping. Thereby making the whole expedition not a very convenient choice, unless one was going out as a family outing!
It was an interesting insight and one that became the starting point for lots of initiatives which were rolled out to make the customers feel at ease and not make the store so intimidating as to be almost unapproachable.
Cut to a few years later and we were launching the chain in a new city. The recent batch of management trainees had been dispatched to participate, experience and learn from the launch. At an informal get together the then head of RPG Foodworld was asking these youngsters about their experiences when one person quipped that the customers were so comfortable and accepting of the store that a lot of them were seen shopping in their nighty. That’s when the head made the remark of how yours truly was responsible in bringing women shoppers in their nighties to the store.
Needless to say, I spent that evening explaining away this comment while my colleagues would often ask me as to which consumer attire I was working on next!
Thursday, June 18, 2009
Service expectations while purchasing durables or electronics
I am sure most of you would have had this experience.
Later on when I was handling the marketing for a durables store, such similar experiences prompted the team to relook at the way the store staff interacted with customers and went on to become a key differentiator.
It might definitely help the durable retailers if they were cognizant of this dissonance being created by what is called company promoters as also internalize that the consumers are changing.
Typically the various brand manufacturers agree to place these salesmen or promoters as they are called. Hence, most are briefed and trained only with details of a particular brand. Of course there is a fair amount of churn within this group and it would not be uncommon to see a person be a salesman for Brand A and a few weeks or months later for Brand B. Although this and the fact that they all work together makes them all aware of the various brands, the tendency is to constantly steer the customer towards one’s brand. From a customer point of view, this is not only confusing but extremely annoying too.
Today the reality is that youngsters are emerging or rather have emerged as a significant consuming class, especially of Electronics. These consumers are well informed and usually have done some homework with regards to the products, brands, features, etc. In such a context having to face a virtual race amongst the salesmen is not the best thing that a store can do.
Secondly, there is a large group of educated consumers who are older and who typically indulge in high- end electronics and durables. Such consumers again do not appreciate pushy selling because they are looking for additional inputs, details and explanations with regards to the various features of a product.
And then you have the average consumer who is looking for functional benefits and is often technologically challenged. Yet again, not a good choice to practice hard sell. They look for some information and lots of reassurance!
So, essentially the purchasing pattern for this category of products is fast moving towards informed and knowledgeable decision making by the consumer instead of being hustled into a sale.
Most modern durables chains are aware of this shift in consumer behavior and they have the store staff to offer nonpartisan inputs and help in the purchase. However, the larger universe of small operators still relies on the company promoter route, simply because it helps defray the man power costs. What they seem to be missing out is that if the customers dry up, there would be no store and no costs left to defray!
Monday, June 15, 2009
Every successful person has their own formula
There are no universal success formulas, but every successful person has their own formula. Similarly, a one size fits all approach to retail will not work, especially in India. Walmart, one of the poster boys of Retail has reportedly opened a 3,200 sq. Ft. Convenience format store in China. The chain whose stores are big, bigger and biggest is experimenting to find its success formula in a new country. Similarly there are several stories from India about Innovation and Success. For example, “Heart Mart” is an interesting Retail innovation in rural and semi urban markets of Gujarat.
Please do read the article at this URL and I hope you enjoy the same.
Saturday, June 13, 2009
How consumers think about retail pricing
- Price would be per kilo. The pack size price can be mentioned if required. But the per kilo price is more important.
- Savings can still be basis the pack size, but should be mentioned clearly that this is for a 20 kg bag.
- In groceries, fruits and vegetables the consumer does not think of MRP. The prices are dynamic and basis the market price. So, it might be a good idea to mention market price, then MRP (Only if required) and lastly Our price. If the pricing has been managed well, there should be a difference between market price and MRP itself, further reinforcing the price-value image.
- Lastly, the savings if mentioned as a difference between Market Price and Our price would be even more powerful, if point 3 has been done.
Tuesday, June 9, 2009
Another innovative idea - A floating supermarket
Consumerfed has launched a floating superstore in Kuttanad – a novel concept – to sell essential commodities to those living in isolated and inaccessible areas of the backwater region. The story, picture and a video report can be seen on these URLs -
http://www.thehindubusinessline.com/2009/06/09/stories/2009060951481700.htm
http://www.deccanherald.com/content/7042/floating-supermarket-below-sea-level.html
Video from http://newsx.com/.
This is an interesting innovation to help create a differentiated format. Hope to see many more such ideas in the Indian Retail Landscape.
Monday, June 8, 2009
Facing Fallout From The Downturn
What about the fallout from this downturn and how will it affect employers, employees and the overall economy in the coming years?
Catch some views of mine about this @ http://tickledbylife.com/index.php/counting-losses/
Sunday, June 7, 2009
Guest Post by Mr. Arun Vishwanath, Head – Training at RAYMOND Retail
- Every staff including the housekeeping staff and the doorman carries a mobile phone these days
- SMS is unobtrusive and gives you the flexibility of accessing the message at a time when you are comfortable (the absence of urgency factor!)
- You can reach anyone across the country without too many hassles
- And of course, this is a cost effective tool, with charges of less than 20 paise per SMS!
We use a service provider for Bulk SMS and program the messages to be sent on a weekly basis. We have a weekly theme and cover a range of topics in a "question and answer" format, which include:
- Product knowledge
- Selling Skills
- Customer Service
- Company updates
- Safety
- Visual Merchandising
- Personal hygiene and grooming
One message is sent everyday at 9.30 am, just before the store opens. This way, this knowledge can be used and shared during the regular store meetings and briefings. SMS training complements our other regular training efforts and is not a substitute.
The success of any training module or tool depends on its effectiveness. To ensure that there is regular interaction and to check how effective the training was, we have a "weekly test" which is conducted every Sunday, on the topic / theme covered the previous week. Respondents are required to reply with the correct answers to a standard mobile number at regular SMS charges. One lucky winner who gets a gift voucher worth Rs. 500/- which can be redeemed in any of "The Raymond Shops".
The popularity and success of this initiative can be gauged by the responses we get every week. The most encouraging aspect of this aspect is that it is extremely cost effective and helps in reinforcing learning. Currently this program is available in English and we are exploring options of extending this initiative in other Indian languages as also management related.
Overall, the "SMS Training" initiative has been received very well by both the staff and the management. In fact, most of the staff look forward to receiving the "learning message" every day.
Happy innovating and learning!