Retail Dude

As per the report on the Impact of Organised Retail on Small Shop Owners, released in parliament by the Delhi-based Indian Council for Research on International Economic Relations (Icrier),  unorganised retail is expected to grow at about 10 percent per annum to reach $496 billion in 2011-12 despite the steady expansion of organised retailers.

The study made certain recommendations like facilitation of cash-and-carry outlets, like Metro, for selling farmers’ produce to unorganised retailers. It also urged for encouraging cooperatives and associations of unorganised retailers for direct procurement from suppliers and farmers. Also, simplification of the licensing and permit regime for organised retail and a move towards a nationwide uniform licensing regime in the states to facilitate modern retail have been recommended.

- Rajeev Damani

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Dear Readers,

Being committed to bring you the best of class information, here is just another very very useful read on Category Management. From being a very strong tool by retailers across the globe, category management has evovled and is now the mantra of the merchandising process in itself.

http://www.4shared.com/file/77534463/cecd9736/Category_Management.html

The slides have the basic knowhows of it. It has been shared by Mr Umesh Dhand who is a professional with over 12 years of work experience including 8 years of buying & merchandising experience in retail across lifestyle & value retailing across several categories. Currently he is the GM - Merchandising at Aditya Birla Retail Ltd, and has also worked as a Category Manager at Shoppers Stop in the past. A big thank you to him.

Happy Learning!

Sudip

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Shakespeare aside, we know that “what’s in a name” does matter when we talk of brand loyalists and switchers alike. Private labels have been in the recent past a force to reckon with when it comes to organized retailing. Till very recently, private labels where just another showcase in the apparels category mostly belonging to designer wear. But for now, you name it and they have it. Be it Food, Toiletries, Home Care or Electronics, retail houses have churned the shelf space to their very own brands to increase their bottom lines. Historically it came as a shocker when Pepsi’s Frito Lays had negotiation problems with Food Bazaar and thereby refused to supply welcoming the birth of Big Bazaars own brand Tasty Treats. For them, they say it has almost captured 16% of the markets.

Renowned retail chains have created brands which are sold from their own outlets along with the other national brands—but are up to 40% cheaper. They might not just cause envy but certainly saves precious cash from your wallets, and at the same time prove mighty beneficial to the retailers as well. “During financially tough times, people don’t mind picking up an in-house brand, particularly in the FMCG category,” says Harish Bijoor, CEO, Harish Bijoor Consults Inc., a private label consulting firm.

The retailers then take the necessary expertise of local manufacturers in some categories like food and grocery which has in fact given them a reason to smile. And since necessity is the mother of invention, local suppliers and manufacturers try out innovative products and ensure proper delivery of goods just to make sure they don’t loose a client. “In food, private labels are 25-40% cheaper than national brands, whereas in apparel, they are 15-20% cheaper,” says Atul Takle, head, corporate communication, Pantaloon, Future Group.

But doesn’t that necessarily mean that they are of inferior quality. Actually retailers are now offering guarantee and have after sales services to their brands as well, just to shake up that myth of quality. So if it’s more of product value and quality, in-house brands provide you with more choice and a lesser hit in the pocket. It also provides a strategic advantage to the retailer (unique products, pricing, demand control), since it can control movements and play with the cash available. The private labels are not advertised, which gives much more breathing space, which gives you an idea why are they cheaper. For instance, in apparels, a national brand spends up to 35% on manufacturing, about 7-20% on advertising, 6% on distribution and the remaining on sundry costs, besides retaining a margin of up to 15%.

The brands Stop from the department chain Shoppers’ Stop, and Fresh and Pure from Food Bazaar have become fairly strong labels. And by the same token, manufacturers might attempt to invade the retail space themselves as Raymond has in garments, or even set up their own channels for the consumer as Unilever did with Sangam, an online grocery service. So we never know that Private Labels can splinter up yet another revolution with the manufacturing firms themselves. Rest assured that the common man is again the gainer.

His insights into the private label way of retailing can be found in this presentation which was delivered in a PLME conference in Dubai last year. The presentation has great insights. Please find it here. http://www.4shared.com/file/77514158/e398cf6/PLME.html

The emergence of organized retailing has definitely made Private Labels a reality; however there are greater need to knowing the role and timing of these in-house labels. From across formats to the retailer push to promote them, there is a galaxy of things that can be done.

But certainly “What’s in the name” if we can save a few greens uncompromisingly.

Wish all our readers a Merry Christmas!

SUDIP 

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The Brand Gap is one of the most highly read books on branding, written by  Marty Neumeier. The book deals with the essentialities of branding. The book is a real good read, when you want to know and simplyfy the strategic decisions of branding to the actual work. The presentation deals with the issues discussed in the book. Its one of the most wonderful depiction of concepts through imagery. One of my favourites. This is just a remake of the original slide, but was worth enough to share it. Please find the presentation here https://cid-c651926f6a1fb45f.skydrive.live.com/self.aspx/Public/Brand%20Gap.ppt

Cheers!

- Sudip

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Hi

I wish to congratulate all my Team Members to help create this new job section at a time, when we are all looking down a barrel.

The news is thats the section is no more “Virgin” as one of my team mates had quoted earlier . New jobs have been posted, and would like all our readers to go visit the section and spread the word for Retail Dude for the same.

Thanks for all your cooperation. Keep Reading!

Cheers

Sudip

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And now, George Bush is the new proverbial ‘boot dodger’. The newfound proverb applies on a person who gives a last shot at saving his a** after making false promises and fake pretense. The surprising fact about ‘boot dodgers’ is that one can find them in all walks of life be it cricket, politics, business et al. Though, the concern for us, retail professionals, remains the increasing number who belong to this category.

Some of us might be able to relate this concept to the ‘Gap Model’ under retail marketing. For those unaware, the gap model constitutes four types of gaps viz

• Knowledge Gap
• Standards Gap
• Delivery Gap
• Communication Gap

All but the Communication Gap pertain to the internal loopholes within any organization. Communication gap more about the company’s positioning in the consumer’s mind. Simply put the communication gap means the gap between what the retailer advertises and what he offers. A boot dodger situation arises when the retailer makes big promises, about his service/quality et al, without having the sufficient resources to fulfill them. Though, he does manage to generate a few footfalls, but in the deal causes consumer’s disappointment, which can cost him plenty in the longer run. So in order to revive his sales the retailer gives a last shot at regaining the lost consumers with the age old trick – ‘discounts’. For some it does work, but for most it’s too late, as someone has already taken the retailer’s hot seat by then (pretty similar to what happened in the Bush case).

Moral of the story

For Retailers - Honesty is the best policy

For Consumer – Identify a ‘Boot Dodger’ well in time

- Vivin Wason

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Hey guys, for those who do not have a job, do you just want any job or have you given a thought what would be the best place to be in these times of recession. For those who have a job, are you still looking forward for the ‘Retail Boom’ to happen or you know where your job is taking you and where you can actually be. Here is a little weekend analysis from me on both these situations. Sit back and read, hope it gives all of us who get lost living by the day, some clarity on what we want.

For those looking forward to a job; alright there is no ‘Boom’ round the corner; but still Retail Sector is the answer. There is ample good news to look forward to, few are listed here and I’m sure all my readers would have one such news with them.

While most companies are trying to find strategies to beat the global slowdown, consumer goods companies have not only decided to increase manpower, but also to scale up their research and development (R&D) spends.

• LG Electronics plans to invest $50 million (around Rs 250 crore) to enhance its manpower and R&D in India by 2009.

• According to ITC’s sustainability report, ITC’s payroll expenses grew from Rs 541 crore in FY06 to Rs 630 crore in FY07 and Rs 733 crore in FY08 and the company remains bullish on hiring.

• Aditya Birla Retail (ABRL) has announced plans to open ten hypermarkets in India within the next two years under the ”More” banner. It also aims to have 1500 supermarkets and 100 hypermarkets by 2013. According to CEO Sumant Sinha, ABRL the company will invest a total of US$2.5bn on its expansion plans.

Those with a passion for retail just remember one thing, in the short term it might seem more important to get a job that gives the best compensation, but in the long-term, most employees are chronically dissatisfied until they get a job that provides the best personal fulfillment.

For those in Retail Industry, this is what we can look forward to, because this will be the solution to the ongoing slump.

Good with Consumer Psychology and creative at thought you can be a “Consumer Psychologist”. Consumer psychologists study people’s emotional, cognitive, and behavioral responses to a wide variety of stimuli including advertisements, packaging, marketing promotions, communications, products, services, and experiences. From these studies the consumer psychologist can help decision makers determine design and development changes that will produce an improved consumer response and produce an increase in sales. As the field gains credibility, consumer psychologists are being given high level management and policy level positions in marketing, advertising, and retail organizations. Your primary responsibilities as a consumer psychologist will be research, analysis and development.

You feel you have amazing selling capabilities, and you can sell almost anything you can be a “Personal Shopper”. Personal shoppers provide expert advice and give the highest level of customized service possible to individual shoppers. By giving personalized attention and providing advanced knowledge of products, services, and trends, personal shoppers become trusted consultants for shoppers who want an enhanced buying experience which is easy, inspiring and productive. You will be responsible for building a client base of loyal shoppers who make frequent purchases. The result of your efforts should be higher sales ticket averages and extreme customer satisfaction.

For all those good at Retail Numbers, business, analysis and strategies, you can be a “Retail Competitive Intelligence Analyst”. As a Competitive Intelligence Analyst, you will be keeping an eye on the strategies and pricing of your employer’s competitors, and making recommendations for marketing, promotions and strategic initiatives based on the data you collect and analyze.

All these Job Profiles will not come without the required skills. Its possible only if we indentify our passion and work towards it. For complete details on these Job Profiles like the skill set required, the compensation etc. please visit http://retailindustry.about.com/od/retailjobsprofiles/Retail_Jobs_&_Your_Retail_Career_Path.htm

-Roli

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When we started off with Retail Dude, we had intended it to be a small blog for people of similar interest, to be cunning and straight. Then, we realised that if we agree with most of our own theories that we develop here, we need to grow! just like any other venture we throw sarcasm at, we need to provide you with more reasons to be happy, more reasons to do something

So, here is another attempt to do the same! Retail Dude Jobs, which can be found at the URL: http://jobs.retaildude.com (Bookmark it) where we intend to make it an open platform for recruiters to look for some quality retail workforce within India, keeping it free, and transparent.

Its a virgin start, no jobs yet

- Team RetailDude

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Ever thought about spending a penny to save a Rupee.  

Sounds a great proposition, especially when recession is on upward swing & markets are hitting rock bottom.  So as our oldies said, money saved is money earned holds particularly true in today’s scenario, when cost cutting is the new mantra. 

So, to untangle one from the clutches of recession, a new service is launched, moneysaver, brainchild of 2 young entrepreneurs, Kunal Bahl & Rohit Bansal, who aspired to make every brand affordable for everyone by offering hundreds of discount coupons & buy  one get one free coupons on branded apparels, fine dining, casual dining, movies, entertainment etc.  

Moneysaver is a service that comes in handy to consumers as its affordable (Just Rs 100 monthly), accessible (Just a sms away), Available (More than 200 outlets where one can buy moneysaver recharge card.) & every month, subscribers are kept abreast with the latest offers through monthly catalogue. 

The entire model is based on the simple fact that everyone loves to strike a deal, to make a bargain and avail a discount. The research which their focus group discussions revealed was that Indian customers are not price sensitive, they are value sensitive. The perceive value not on the basis of whether they are getting the product cheap but if they are getting it cheaper. Money Saver stretches the concept to make it a win-win for all by feeding on ’dependencies’. Aiming to reach a target group of 15 million potential booklet buyers comprising young professionals, college students and housewives they know that this is exactly the same group that the expanding pool of retailers is trying to reach across the country. There website called www.moneysaver.in is full of such great offers.

Not only Moneysaver, but other companies are also trying to utilize SMS, Bluetooth, mobile websites, to cost effectively reach customers.  Bluetooth companies such as Telebrahma and CellMagix have been promoting offers and content to consumers inside malls, by sending information directly to Bluetooth activated phones.

(Guest Post)

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We just “love” acronyms! ASSOCHAM, FICCI, IIT, NatGeo, SET et-ce-te-ra.

Oops! Forgot MBA completely ;-P  Oh My God, the title above can also be called MBA. Just joking!

There was this article on Mint, yesterday (read at http://epaper.livemint.com/Default.aspx?selpg=883&selDt=12/15/2008&BMode=100 ). Many other news-media have been reporting similar analysis, of the “Organised Retail” scenario, one after another.

Factually, retail takes 3rd place after economy & terror, on print media!

At the same time I find bold expansion plans or entry plans of new corporations, into this same hot-spot! What’s up guys? Agreed that organised retail has a very long way to go, from the measly 5% share. Also agreed that retail real-estate prices/rentals have “corrected” by at least 20%. And I do agree that FMCG consumption is likely to remain bouyant too.

Even then, how does it make sense to sink fresh investment in retail, at this juncture? Specially by the “unititiated”? If you read the Mint article carefully, you’ll find definite insecurities (about the industry), expressed in very subtle terms. Example: “If the organised retailers get on to the right model, it can grow by 20-25%”. Key words here - If, right model, can. All very “iffy”.

Big bosses like KB & others are all doing some “cutting-shutting” (remember that ad featuring two kids?) Which is very appropriate. Surgery is almost always the 1st resort. Chemo comes closer towards the end.

This scenario is very dicey! Who has so much surplus funds, to let them earn returns on such a long-tail cycle? If they do, why aren’t they investing the same in much safer (in the short term at least) ventures? Is there a grey area here?

India cannot afford to lose more money chasing bad. The effects will be catastrophic! I really hope we are not turning into a country run by Blind managers, following in the footsteps of our blinkered politicians.

Belt up, we are perilously close……

- Arnab

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