Retail Dude

Hello Readers,

- Retail Dude Team

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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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Following are the Mumbai Helpline numbers, please spread them around to help others in need:

Taj Hotel Helpline:  022-66574322, 022-66574372, 1800 111 825

Oberoi Hotel Helpline: +91-981095688, 011-23890606, 011-23890505

Trident Hotel Helpline: 022-23890606 20

J J Hospital Blood Bank: Contact Person : Dr.Ganesh , Dr.Nair — 022 - 23739400

Bombay Hospital: Contact Person : Ms.Purohit: 22067676 extn 216

Cama Hospital Blood Bank: 022-22611648

St. George Hospital Direct Blood Bank: Contact Person: Tarun: 022 – 22620344

US State Dept Call Center for Americans concerned about U.S. family/friends in Mumbai 1-888-407-4747

British Foreign Office help line in London: 0207 0080000

Air Ambulance helpline to help foreign tourists: http://www.free-press-release.com/news/200811/1227824362.html

List of Hostages Rescued from Oberoi Trident: http://ibnlive.in.com/news/list-of-hostages-rescued-from-oberoi-trident/79264-3.html

More info here, and you can follow twitter with keyword: #mumbai to stay upto date, in case you dont have direct access to television channels.

If you have more info, please post it in the comments section, Please spread the word around for more blood donations, Stay safe and God Bless all.

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How many of you would like to shop when someone else is paying for it ;) ? And yes my guess is true, ALL OF US! To enthrall you even more, this is no joke but an actual reality. Welcome to the concept of a Secret Shoppers aka Mystery Shoppers aka Spotters aka Virtual Customers.

Its a tool which stores and organizations such as The Gap, Walmart, Pizza Hut, Hooters and Bank One amongst many others use. They pay Secret Shoppers to shop in their establishments and report their experiences. On top of being paid for shopping you are also allowed to keep purchases for free. Although this concepts dates back to 1940’s but in todays scenario the perspectives may have changed. It is the practice of using shoppers who have been specially briefed to anonymously evaluate customer service, operations, merchandising, product quality, and in special cases, employee integrity. This tool is also commonly used by the research agencies looking for service quality, however a trained secret shopper is the one, who goes looking in for certain things and makes detailed observations as the experience unfolds.

This tool helps you understand what it is like to interact with your company from the customer perspective, if i were a retailer. Its also of importance to know whether we are doing enough to win our customers. Are the Sales Associates making it easier for customers to find what they’re looking for, and the right sales and closing techniques can help ring the register. Its not only retail shopping outlets but the tool is effectively used in Restaurant, Hotels, Financial Services, Automotive and even Call centres.

The Secret Shopper helps the retailer to churn out and evaluate almost all the points of initial contact, sometimes by phone, through the completed sale, and even the return of a purchase - all critical elements to future repeat business.

Mystery Shopping Providers Association is one of the largest Mystery Shopping Providers in the world. The MSPA is located in North America, Asia, Europe and South America representing one of the largest resources for businesses and shoppers in the industry. They also usually impart trainings to be one the secret shoppers. So you see, we also have a provider for it.

 So, you get to have fun, flexi hours, your opinion, try new things, spend time with family, you spend (someone else pays out), valuable work and after all this YOU GET PAID TO DO ALL THIS!

Dream Job eh……

Cheers!

- Sudip

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Hey Readers!

Time for some serious fun. Here is a Retail and Branding quiz for all you guys. The quiz has been prepared to let you know your RBQ. And thats your Retail and Branding quotient. Another First from Retail Dude Team.
Get the presentation here at

http://www.4shared.com/file/71772231/a7ca13c0/Retail_Quotient_Tracer-Quiz.html

Do let us know your feedback and we will be more committed towards bringing you the best and more interactive learnings.

Dude it up Guys!

- Sudip

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There are somethings money cant buy, for everything else there is the “Great Recession”.

After noticing tremendous spurt in retail rentals over the years, finally the recession period has brought a smile to the retailers. Retailers are going bullish over expansion plans, as they are getting prime coveted retail space at prices 35 per cent lesser than the last year. Infact a news headline todays says, Benetton will open a store every 3 days this month. Beat that…Phewwww.

Whatever the retailers are booking now, will be delivered a year down the line, and therefore will reduce their rental cost substantially. Despite the slowdown and high inflation, compainies remain attracted by the growth opportunity in organised retail. 

The much needed correction finally has happened to the retail rentals. For the record, lease rentals for a specialty/small store should be around 12-15 per cent of the revenue. However, retailers were paying over 20 per cent making their business. Grocery and Apparel retailers were paying 10 to 20 per cent of their sales as rent against an ideal payout of 6 to 12 per cent respectively. Meanwhile, even as they expand, retailers are also closing or shifting unviable stores. RPG group’s Spencer’s Retail has shifted 30 stores in the last year in West Bengal, Kerala and Karnataka to other locations due to high rentals and lower footfalls. Industry sources say initially most malls in the same micromarket had similar rental rates. But as they became operational, the rentals started to get aligned with revenues and footfalls. Further according to me, due to increased interest rates and fluctuations in the industry market has negated growth of demand for residential space. The realtor has definately been hit for sure. But nevertheless, its a green go for growth in retail.

Cheers!

Sudip

Excerpts from BS, ET and DNA

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Fireworks, Lights, Gifts and Sweets! It has been a lovely week here in India, and a new beginning across the globe, now we are back in action, and how! Well we have decided to step down from our levels of male chauvinism and have made way for our first female author, Roli Aggarwal, well who would understand retailing better then a female! So we have a new dudette on board now. Her profile is up in the authors section, and you can leave the welcome notes in the comments section. 

Secondly, keeping up with our promise of getting you quality content about retailing, we have been able to get our hands on a paper about FDI in retailing in India. This paper has been authored by Dr. Mandeep Singh and Mr. Amanpreet Singh Banga. A quality read, get your hands on it at the downloads section. 

- Sarthak

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I keep reading, here, there, everywhere, that most women hate snoring men! More so when they fall asleep on bed, just after a nice mating activity. Many a lady has voiced strong opinions against such predictable slumps, Viagra after-effects notwithstanding. Read somewhere, last week that a new drug will soon chalenge Viagra’s virility span, which I am told, irritatingly keeps it on it’s toes, long after the snoring commences! So, now men can safely turn sides too, without damaging vital organs, during their much hated post-coital slumber. Amazing!

Somehow, having said that, the world economy also seems to be in a similar stupor!

The assisted economic erections had a very long orgy indeed. Don’t ask me who bedded whom, but it seems that the “receivers” of such seedy whitewash far exceeds the donors, in number!

As a matter of fact, many actually enjoyed the incoming traffic. Blissfully unaware of the possible consequences.

Now that the big boys have turned over & are on the verge of snoring, many a receivers have snapped out of their trances, tried douching up their overly leveraged innards and have scrambled to search for the safest morning-after pill.

Now, just see how we have stumbled across a great marketing idea!

The new Viagra should be bundled with a morning-after-pill & the latest anti-snoring patch released by J&J.

Post-coitals will never be same again! Hopefully!  Hail the bounce-back ye mankind.

We shall again “over-come”.

- Arnab

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