Retail Dude

Slumdog not an Underdog.Well, not anymore. Jai Ho Slumdog ki. After all the film made it look like a cakewalk and bagged eight Oscars along with various other globally acclaimed awards. Well, through this post I would like to rather analyze or understand as to what about the film ensured that it lived up to the hype which was built around it. Was it because it was “realistic” or was it “the element of trepidation” which kept you at the edge of your seat or just maybe because it was “Indian” (after all the world’s closely watching the developments happening in this nation each day). Jai Ho.

Well, I’m not too sure of the reason myself but one reason, which I can think of, the movie managed to click with the global audience was because it reflected a common man’s life. An exquisite depiction of simple emotions like love, fear, jealousy, and even hatred was a great way to connect with any audience based anywhere. Jamal Malik was not extraordinary and neither was Latika, but it was the love which the two shared which was extraordinary. Everybody wants to be a ‘rockstar’ as they say, and Slumdog was a blunt illustration of events through the life of an underdog. At times, we are so busy worrying and complaining about our situation, we fail to identify how unusual and wacky our life can be. We do not appreciate the uniqueness of our lives and how a lot of people would be have dropped jaws if you wrote a book about yourself as well.

The one theme that movie revolves around is perceptions. Two brothers muddling through the same circumstances came out as different individuals by making different choices in similar situations. One choosing to give a 500$ note just to find out the whereabouts of the one he loves where as one chasing money till the end of his life (else who could have a wish to die in a pool of money as shown in the film).

Well, though the point which has been sidelined in all this hype is about the person who conceptualized the idea in his book Q & A, Mr. Vikas Swarup.

Being a marketer could not help but look at it from a marketer’s point of view and did explore some insightful learning for global marketers :-

Break the language barrier (the film was made both in Hindi and English so that it could reach out to more nations)

Exploit emotions. The best way you can connect with anyone is through creating positive emotions in that person. A recent article published in livemint explored the idea of advertisers are using crisis to get message across.

Make it realistic. Promise what you can deliver. If Slumdog would have had Rajnikanth the expectations (specially in south) would have been sky high. Which meant that the audience expect a lot from the movie. And, if the positioning of the brand does not go with the delivery, it can turn into a nightmare for any marketers.

Do not spend on charming faces, rather invest in enticing minds. Danny Boyle chose Anil Kapoor above Shahrukh Khan, who definitely might have attracted better business in India but might have not been a value-add for the global audience (because of the limited role in the film).

Whatever you do, there will always be some critics. Well, would not like to name any celebrity here, as I’m one of the lot as well. Though, I would not like to criticize the film but certainly AR Rehman can give better music. I mean “Chhaiya Chhaiya” was way cooler and much more hip than “Jai Ho”. But, all’s well that ends well.

It’s not just Sukhwinder Singh but also Longinus Fernandes (“Jai Ho” Choreographer) you might have missed out in the credits list but a true marketer like Danny did not. And, finally gave the credit for “Jai Ho” to Longinus at the Oscars. Long live Danny. Jai Ho!!!!

- Vivin

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With slowdown in growth and Real Estate slump, many of modern retailers are resorting to rent renegotiation as a measure to reduce and control cost (fixed). Rent contributes to a major portion of a Retailers Fixed cost. As supply in Real Estate is exceeding demand, retailers finding it a good opportunity to renegotiate and reduce rents, which in turn will again contribute to the Real Estate slump. Retail majors like Future Group, Reliance Retail and Aditya Birla Group are renegotiating rent and they think that it is a part of long overdue correction in Real Estate sector. They have purchased or leased properties in peak periods for much more price than worth. Renegotiating rent will help them to reduce their cost by 20-30%.

Retailers are negotiating rent between 10% - 35% and even 40% in some cases and have determined that if rents are not reduced, they may relocate. For Future Group, rent accounts to 6% of sales which it intends to reduce by a percentage. Whereas Vishal Retail has been able to renegotiate rent for 500000 sqft of property for past three months. They have renegotiated rent by 20-25% and are saving Rs. 30 lakh per month.

- Rajeev Damani

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PepsiCo dumped SRK a week ago with its decision of not to renew the decade old contract with him. The possible reason can be that it doesn’t find SRK in sync with its ‘Youngistan’ theme anymore, and they need a Brand Ambassador who is a kind of youth icon. But the company is simultaneously in talks to sponsor SRK-owned KKR (Kolkata Knight Riders) for which Coca Cola has already pitched for a two year contract. Pepsi has given a counter offer to KKR outbidding the one given by Coca Cola.

King Khan has already expressed his unhappiness regarding PepsiCo terminating his contract. Apart from King Khan, PepsiCo also kicked Saurav Ganguly of KKR though it has continued association with Ishant Sharma of KKR.

I just want to wait and watch that whether SRK considers PepsiCo’s offer as a business matter or rejects it as a personal matter. But the biggest question that comes in my mind after going through such news is that where is recession?

- Rajeev Damani

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In a move that takes inspiration from Apple and Sony, Microsoft recently announced that it’ll open its own retail stores “to create a better PC and Microsoft retail purchase experience for consumers worldwide.” The software giant looks very serious on this front, that’s why it has already appointed David Porter as corporate vice president of Retail Stores who is joining Microsoft from DreamWorks Animation SKG, where he was head of worldwide product distribution. No word on when the first store will be opened or what’s gonna be on the shelves, but looks like the main reason why MS is pushing so hard is “to create deeper engagement with consumers and continue to learn firsthand about what they want and how they buy.”

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We have seen worst in the last quarter and even during the beginning of this New Year. We were unable to properly welcome 2009 because of the global crisis and credit crunch. But what I am hearing form all around is the worst is still to come. What will be that worst even a blurred thought of that shivered me to the bottom. So instead of thinking of the worst, I tried to analyze things and tried to find out are there some facts that really backup the predictions people are making or it’s just a negative aura around people which forcing them to say like that. I can see in the last few months to cope with the economic crisis RBI and Govt. had taken lots of steps and so do the retailers and manufacturers. The Reserve Bank swiftly initiated a series of measures, which helped to assuage liquidity conditions, while reassuring the market that the Indian banking system continued to be safe and sound, well capitalized and well regulated. And because of some of the steps taken by govt. we saw an increase in consumption demand mainly reflecting rise in basic exemption limits and tax slabs, Sixth Pay Commission awards, debt waiver for farmers and pre-election expenditure. So there is still consumerism prevailing in the market, there can be different factors for that like the policies and measures taken by govt., reducing oil prices, bumper promotions given by retailers, reduction in inflation, decline in WPI driven by decline in prices of minerals oil, iron and steel, oilseeds, edible oils, oil cakes, raw cotton. Also retailers are controlling their inventories and manufactures are regulating their production, Manufactured products inflation, year-on-year, also moderated to 5.9 per cent on January 10, 2009 as compared with the peak of 11.9 per cent in mid-August 2008. So the policy measures are now in place and many other are in pipeline which resulting as a healing effect for the situation and I can see some stability in the economy. And as far as consumer behavior is concerned, Most of the consumer behavior we saw in 2008 will continue well into this year, Rosalind Wells, the National Retail Federation’s chief economist, predicts “Shoppers will be seeking value and trading down to discount and off-price retailers in order to stretch their purchasing power.” indicating shoppers will shop.

The GDP growth declined but it’s still positive and there is still GROWTH. I might sound too optimistic so using this open forum I will appreciate reader’s comments on this topic. I know in the back of everyone’s mind this is a question- “Are there any signs of recovery?”

- Prateek Katiyar

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