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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I’ll start with a quote

“Collaborating with competitors involves yin and yang, two opposing and simultaneously complementary facets of a single phenomenon. This balance can create substantial value, particularly when the collaboration involves common processes that provide no competitive advantage.”  By Evan Rosen.

This was used, as recently as yesterday, by none other than the doyen of Modern Indian Retailing, Shri Kishore Biyani. He was concluding his key-note address at the Retail Summit : 2008.

Collaboration remained the agenda of his speech, which he admitted, was a very different strategy in today’s “New World Order”. In the same breath, he also admitted that his own speech, last year, was based on the ”Old World Order”.

It’s a pleasure. To find that our retail-gurus have finally removed their blinkers, in a hurry!

Hang on, hang on! Have they? What are the possible “collaborations” he’s touched upon?

Sourcing of merchandise, HR, Real-Estate & some other necessary services required by all organised retailers. Now, I’m not sure if ”these” could be called ”collaborations” in the real sense of the world or even by the quote above! This looks more like another word that starts with the alphabet C too: Cartelisation!

The Sales-Logistics-Marketing gurus attending the seminar would have definitely risen in unison when KB closed his address. To applaud. After all, terms like “collaboration” have this unavoidable connotations with others like “teamwork, networking, partnerships etc.”, all very “current”.

Our neighbouring country is keen to collaborate with us……on burning issues.

The august congregation inside the auditorium were, hopefully, sharp enough (sharpened by their enviable alma-maters, then their fast-track career demands & so on so forth), to read between KB’s bold lines. So, the applause must have been genuine!

Yes, we all love collaborations, as we all were born of at least one (notwithstanding Mamma Mia)!

Borrowing again from Rosen “yin and yang, two opposing and simultaneously complementary facets of a single phenomenon”, I’d have thought a different way to collaborate, for “real-success”.

Have the doyens considered collaborating with millions of mom-and-pop store across the country, ever?

That, can really turn out to be the latest definition of “collaboration”.

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Slowdown, share market crash, real state downturn is tuning the fortunes of kirana stores. Kirana stores have seen increase in sales by 25% in the present quarter. Kirana stores which were victim of organized retail and see a massive decline in their sales over a period of time are thankful to slowdown as consumers prefer them over organized retailers. Consumers are trying to be less extravagant and so are refraining from overspending in malls and organized super markets and convenience stores.

Generally when a consumer goes to a mall for his monthly grocery purchases, he ends up buying many products as an impulse purchase and not a necessity. But with this slowdown and salary cuts in picture, they are not willing to overspent and stick to their shopping list. So, we may see attracting offers in coming months as retailers will try to lure consumers to visit them.

- Rajeev Damani

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We here at Retail Dude strive hard to provide you up-to date retail information, and along with that we come across a lot of research papers, news items, and get to know different retail personalities. So keeping in mind all the “valuable” things we come across, we have decided to offer you a new “Downloads“ section, where we would maintain all the downloadable retail information, which can be used by you at a later stage.

To begin filling up this section, we have uploaded our recent interview with Mr. Madhav Maheshwari, of Ram Das Mohan Lal Maheshwari, which is an well established brand in ethic wear segment in Hapur. RDMLM has been featured on IndiaRetailing before, as the shop has been able carve out a niche for itself during such competitive times, so we decided to have a follow up with Mr. Maheshwari himself, and get his take on the most debatable topic: Traditional or Unorganized V/S Organized sector in India. Grab yourself a read

- Sarthak

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Well the time of the year for which every retailer (no matter big or small) awaits eagerly is finally here. And how!!! Amidst all the terror threats, protests from the small store owners et al unwelcomed circumstances the organized players still look ‘bullish on the festive sales’. I believe it’s not just the big retailers who are sanguine up for the festivities in the air. Even the traditional retailers would like to cash in as much as possible in the days to come. In order to take the modern players head on here are a few tips which might come handy for such stores

Ø The Visuals – Looks Can Kill – And of course, bring you back to life (that is if your store has been facing a hard time in attracting and retaining customers). Though it is not advisable to overspend on your store décor, but who said only expensive looks good. Simple things like improving the store lighting, keeping the aisles clear and unblocked, and arranging a merchandise in a manner in which it is convenient to locate, is sufficient. Another useful advice would be making your salesperson dress in a more presentable manner and if there is no particular uniform then probably carrying a tag which say “How can I help you?” or “Allow me to make shopping easier for you” would sufficient to make your customers leave your store with a smile.

Ø Innovative & festival-centric services – Customers are more tempted to shop at stores where they find services which suit the occasion. For instance, around the time of Diwali offering a box of chocolates on every purchase (depending on the amount spent by the customer) or any other sweet would ensure a good word-of-mouth publicity along with more sales. Also it would give out a signal to your competitors that you are prepared for the occasion.

Ø Coming up with a shopping theme for your store – It’s not as hard as it looks. In fact one of the simplest things that can differentiate you from the clutter. In case, you are not as innovative, you can bank upon the mythology of the reason for which the festival is being celebrated and it is sure to give you a bunch of ideas.

Ø The Music – Please don’t stop the music. But, at the same time ensure that it makes the customers spend more time at the store, which in direct proportion to how much spend. Loud music with a lot of beats is not advisable as it could lead to customers spending less time in retail outlets, which could prove detrimental to sale figures.

Ø Connect emotionally with your customers – Touch the emotional chord. And, who better could execute this other than the traditional retailers. With long history of implausible relations with the customers, it is the easiest thing to ensure that the customers spend more than they actually intended to. Simply having a donation box at the cash till or having customers donate their old goods for a strong cause (for instance flood victims) and in return providing discount on a new merchandise (which you were anyway planning to give) is sure to do the trick.

Still not convinced. Try them and you will know.

- Vivin

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It’s official now, The Indian government has imposed a ban on smoking in public places with effect from 2nd October, 2008. I am not a smoker, and the ban really didn’t make me think twice, although some of my friends were of course furious about all the fuss. This got me thinking, about all the small cigarette wallah’s you can find at every nook and corner of Indian streets, some of whom depend totally on tobacco sales, although I doubt whether this point was taken into account by the Indian tobacco major ITC, while filling up for a stay order, but this really is concerning for me. This is something I used to consider as the magic of Indian retailing, think of a cigarette, and its there, not the whole pack, but just the amount you want. This is something which could explain the deep penetration of Indian market, and along with the tobacco business came different options, you could always find normal grocery stuff at these touch points.

I doubt whether there business is going to go down, as I have always doubted the implementation policies of Indian Govt. Still, if in force, will it effect the unorganized retailing in India? Whats your take on it?

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- Sarthak

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