Paribartan! Retail revival in West Bengal?

My initial happiness started worrying me after sometime – after all who wouldn’t want to achieve their Sales targets! When I was told earlier in the day that the store would close by 4pm, I was a bit happy as I could go home early. But that day, I stayed on, for I wanted to see the people’s leader who would be walking down Park Street with her followers. Yet another protest; yet another reason to bunk work, thus grinned Mr. Bannerjee, my senior colleague in his typical Bengali accent- not that he was complaining, but he was more concerned about reaching home which was at suburban north Calcutta since most taxi drivers would take off from work and those plying would demand double charges. Along with Musicworld, where I was the Operations manager 10 years ago, most other retail stores & F&B outlets along the stretch downed their shutters early due to a protest march organized by a relatively lesser known regional party, The Trinamool Congress. “So where is their leader”, I asked my colleague Sandeep Mallick. “There you see, that short lady in hawai slippers, she’s the one” he replied. I was stunned that such a simple looking person could lead a party and a few thousand followers –for her party as well as her protest march that particular day. I was more familiar with an erstwhile woman Chief Minister of Tamil Nadu where I came from, who would adorn more jewelry than that of a model who poses for Jewelry brands would until she vowed never to wear any ornaments after the ruling DMK put her behind the bars citing various scams. After 10 years, she is back in power today and is expected to run the state in a few days, hopefully more efficiently than the decade that passed by.

Just a few months back (in 2001), the Communist Government had assumed power, this time with a new Chief Minister though, Mr. Buddhadeb Bhattacharya, after the octeganerian former CM Jyoti Basu relinquished the seat of power. Buddhadeb, over the next 10 years tried his best to bring reform and change the business landscape but the fundamentals of his party would not allow him to take brave steps too often. And the rest, as they say is History. Singur and Nandigram were bitter memories that the industry would like to forget. Prestigious projects moved out of the state due to government apathy and the worker’s lethargy. The overall mood in the Retail Industry which peaked all over the country in mid-2000s didn’t have much impact in the state, thanks to a workforce that quite didn’t enjoy working in the modern retail formats. Though money was good, many felt that the jobs were lowly and probably they deserved better. A typical middle class Bengali who reads atleast two newspapers every day, one in English and one in the local lingua, is quite updated with the latest within the Organized Retail set-up across the country. Recently, I was a speaker at the “East India Retail Forum”, organized by IMAGES Retail, India’s premier retail publication in Jan’11. There were over 100 retail honchos across the spectrum who attended the event and the mood was upbeat about the impending Retail transformation that’s on the anvil. Miracles are certain, they believed and I too did, given the slow but steady change in mindset that I had seen over the past year – on my first visit to Kolkata after 10 years since I moved in 2001, I wrote on my twitter (@shri611) “so much has changed, yet nothing much has actually changed here!” What I meant was while there were new high rises and a strong immigrant workforce that had moved in, the old-timers remain what they were, reluctant in some cases to change and a few even questioning why they should.

All that is about to change thanks to the latest verdict in the state elections where the Trinamool Congress has won a 4/5^th majority, ousting the Communist rule after 34 years. It was a shocker to see the outgoing Chief Minister, the Finance minister and many others losing their seats in their respective bastions. Just goes to show that the average Bengali was fed-up – and probably wants a change urgently. He deserves, that’s my belief too. I started my career in Kolkata, way back in June 2001 when I reached the Howrah station all alone, with four bags and loads of dreams, to build a successful professional career. Wasn’t sure if Retail was my cup of tea (or coffee, as I am responsible these days for increasing the café count for India’s largest coffee retailer) but I stayed on. I had just one friend, Hemanth Subramaniam, a former classmate at college who lived in Calcutta those days with his parents who came to pick me from the railway station. The city was over crowded by my Madrasi standards, I thought. And the city roads were congested and there wasn’t even a supermarket to buy toothpaste and shaving cream, I thought. But my first few days at Musicworld changed all my thoughts – that Retail was indeed where I would remain. My circle of friends and well wishes grew over time, so much so that I was hosted four farewell parties when I departed in just a year! 37 Chowringhee, a building that stands proudly, built during the British era was one of my favorite inspirations that housed the Corporate Office of ITC Ltd. at whose factory near Chennai my father toiled for over 30 years to build a family and careers of my sister and myself. I had a lot to give back to the city of joy, where the loner in me was treated every other weekend by someone or the other at Someplace Else or Flury’s, at Tantra or London Pub! During my recent visits and interactions with so many people including those from Government functions as well as those in private establishments, I see an urge, an immediate intention for embracing modern ideas, Organized Retail included.

I am neither a political analyst such as those who feature in “We the People” or “Breaking at 9” nor a mediocre journalist who screams on Tv or writes sensational headlines in newspapers to grab attention – just a Retailer at heart, by profession and choice. Apart from Musicworld & Spencers from the home grown RPG Group, The Ambuja Group and Forum have built several malls in the state while national retailers including Café Coffee Day, The Future Group (Big Bazaar, Food Bazaar, Home Town, Brand Factory), Shoppers Stop, Reliance Retail, PVR Cinemas, Pizza Hut, KFC and many others are all expanding rapidly across the state. A Central Mall is expected to open in Kolkata soon! What I look forward is just a better Retail scenario – one that the Bengali deserves and one which can change their lives and lifestyle quite well. Hoping for a “Paribartan” that would put Kolkata on top in the Indian Retail Map in times to come.

Show-stopper - Shoppers Stop!

There used to be a time during the late 80s and even early 90s when this part of Bangalore was the most preferred area to settle down for the older generation, mainly due to the lush greenery and minimal traffic. After all, why would any one pass through Koramangla – an erstwhile nondescript part of south Bangalore that connects the city towards Hosur, Chennai. Etc. However, all this changed, thanks to the IT revolution and what followed was concrete invasion. Large tracts of empty lands gave way to huge constructions – corporate offices, residential block and of course, Retail stores. In India, one thing is peculiar, if not common. It’s always the unorganized retailers who enter a locality sensing consumption opportunities. The Kirana stores that sell everything from tooth paste to grocery, the Hardware stores that sell all that one would need in their homes, from door handles to curtain rods and the ubiquitous furniture stores – large shell shops that stock cots and mattresses, dining tables and other loose furniture. After a few months, if not a few years of the area settling down with people, the Organized Retailers start swamping the localities. What’s natural is that when a locality is on the verge of getting popular (from a consumption perspective), most of the big players enter together, if not in shorter bursts, thus unsettling the small kiranas.

And the same happened to Koramangla as well. After a lull for many years, organized players started penetrating this area – RPG Foodworld (now Spencer’s), Monday to Sunday (from Jubilant Retail), Viveks – the Electronics store, MegaMart (from the house of Arvind) and most notably, Big Bazaar (BB), a Future Group concept. Interestingly, this was one of the earliest outlets for the now ubiquitous value-retailer in India, a mere 35,000 sft store that was supposed to be a Pantaloon Fashion Store! There was a last minute change in the concept and thus was born BB. The store is located in a building that also houses many corporate offices and hence parking for 2/4 wheelers weren’t too many. Anyway, value-retail stores were expected to bring their shoppers by Bus and thankfully, there was a Bus-stand just outside the store. Rest as they say, is history. This BB store attracts as many people driving their own fancy 4 wheelers as much as those coming by buses and autos and is supposedly the highest in terms of returns per sft, a key metric for Retailers.

The year 2004 saw the opening up of Forum Mall, the most notable Retail landmark in Bangalore till date and rightly so, located adjacent to Prestige Acropolis, a residential dwelling that houses the crème de la crème of Bangalore. The Mall has such a unprecedented opening that the U-turn on this road had to be removed, thankfully! The first outlet for McDonalds in South India opened here and without exaggeration, there were queues waiting outside the store just to get in and have a grub. I was among the last to enjoy the frenzy, when I first entered the store almost three months after they opened. The Mall had many other firsts as well, the largest stores for Fashion Brands such as Benetton and Tommy Hillfiger, the first Apple store through its distributor aptly named “Imagine”, the largest (then) foodcourt in town with over a dozen different cuisines, and the first and among the largest cinemas in Bangalore operated by PVR. The retail chain from the house of Tatas, Westside was the anchor and Landmark Books & Leisure (which was also bought out by Tatas) was another anchor. There wasn’t a multi-brand Department store and thus all the Mono Brands present in the mall perform very well. There wasn’t anything that wasn’t amiss and the Mall ably run by a professional team from the Prestige Group went to win accolades for their achievements, in design, tenant mix, zoning and most importantly managing the multi-level car parking, among the largest & the first in the city.

The area started getting a lot of attention from construction companies as this was the closest locality for those who were working in Bangalore’s own Silicon Valley area – The Electronics City. Real estate prices of land holding soared so high that the area was and still among the most premium residential areas in the city. Almost every Retailer has a presence in this area and the only brand to have multiple locations due to its business model is Cafe Coffee Day – yes, there are five cafes within a three km radius and there are two more in the offing. Recent retail concepts such as E-Zone (also from the Future Group) and Star Bazaar (a hyper-store from Tatas) have found their own spaces and are serving their customers quite well. The one Retail concept that was conspicuously missing was Shoppers Stop (SS), India’s largest multi-brand Department Store chain. And that too was fulfilled recently. While operating three other locations in the city and one at the Bangalore International Airport, the retailer took over the same location earlier occupied by fellow retailer and similar business house “Globus”. There were many reasons why Globus wasn’t doing well; many experts felt it was the location that was the main one at fault apart from the depressing merchandising at the store level. In Retail, there are three main factors to consider before opening a store – Location, Location and Location. And that’s exactly what SS has tried to revisit. They have chosen one of the most complicated locations ever possible for a Retailer but I am sure the decision was conscious and would prove to work to their advantage. After all, who knows this business as well as they do. The store is located in one of the busiest stretches in Bangalore, just ahead of an important traffic signal where the waiting time could range from 10-30 minutes during peak hours to crawl through a 300 meter stretch. Entering and Exiting the store is not just difficult but would need sharp driving skills. The store, which is spread across 40,000 sft is self-sufficient to that catchment since most of the brands have their own stores independently or within the mall close by. The well-maintained and well-merchandised store has almost everything that a harried customer needs, but for a cafe which I guess should soon be there too.

But why one more Retail concept for a locality that already has a substantial penetration of retail formats? Well, one reason is that there is no Shoppers Stop! The unique shopping experience that the Retailer provides is not just consistent across the country but also amongst the most superior in its own form. Secondly, when an area has as many shopping formats, it becomes a natural destination for shoppers. It’s not just the Retailers who benefit due to the presence of a large number of consumers but also the shoppers – they benefit from the wider offering that they are offered and not to mention the innumerous promotions and special offers through the year. So, lets hope this outlet of Shoppers Stop is indeed going to become a show-stopper!

Pay online and gain rewards!

Many of us have been transacting online since the last few years and the size of this market has only been increasing. Most International and a few Domestic Banks provide Net-Banking facility at no additional cost to their customers and this means the customers can use their Debit/Credit cards to perform various transactions –to transfer funds to other accounts within and outside the customer’s own bank; to purchase financial products such as Fixed & Recurring Deposits, Insurance, Stocks, etc.; and of course, to shop! When I mean shop, one could buy almost anything that one desires – from groceries to stationery, cars to real estate properties. Needless to say, one needs to use his/her own prudence while shopping online – whether using a Debit or a Credit card as it is a natural tendency to spend as much as possible, given the various exciting promotions and offers that compel us to “consume” more. Internet payment security has been a great concern over the past years but that’s improving day by day with Banks and their payment gateway partners (third-parties who process the transactions on behalf of the bank’s customers) upgrading their back-end continuously, to ensure that the transactions are not spammed by malicious intentions.

Online shopping has been in existence since late 90s – with many Airlines and Online Travel Agents (OTAs) notably starting the trend. For the sellers, it was mere savings in their operating costs – there is no need for precious real estate and manpower to conduct these transactions; for consumers, it was saving time and effort, and of course, a better deal at the touch of a button. In India, Air Deccan (which was later taken over by Kingfisher Airlines) was among the first to popularize this trend. Over the years, many Retailers such as Shoppers Stop, Crossword, The Future Group, PVR Cinemas, etc have been using this potential in their favour. Then there are generic websites such as eBay and Amazon who have been pioneering this concept since the past decade, where one can purchase almost everything under the sun. Having said that, the size of the Online Shopping/transacting market is not yet very big in India. There are various reasons that one could find that deter people from transacting online, security being a major one but most importantly, it is the “habit” or the lack of it. I know many of my friends who have been living in the US or Europe who shop online for as many products – from hand wash liquids to food items to shirts and ties. That’s because of previous experiences and yes, standardization of products (including Quality and Delivery). I remember when I was at my friends’ place in Hong Kong last year we called and ordered full-fledged meals for three days from a small time Indian Restaurant – order placed, payment done instantly online and food delivered in less than 30 minutes. So, if it can work well in HKG, so be it in BLR as well!

While retailers have been encouraging consumers to shop online more often, Banks and credit card issuers have been doing their bit too. One of the most popular ones in recent times is the initiative by Visa. Visa has its own website aptly named visabillpay.com and the Indian version called visabillpay.in. One can register and pay bills online instantly across various service providers such as Regional Electricity Boards, Mobile and Telephone service providers, Insurance companies, etc. using all Banks’ cards which are issued by Visa. Since the payment gateway is managed by Visa, security factors seem to be well in place. Apart from providing the bank login details, one needs to provide the authentication grid details as well – three out of the ten two-digit numbers that are behind every card issued (recently) must be keyed in to complete the process. Visa, on its part takes special initiatives from time to time. When I had registered two years ago, they had a simple yet effective and compulsive scheme – when a bill is paid through the website, the user gets a 5% cash back subject to a maximum of Rs. 50 per transaction. Recently, they have come up with more exciting offers and have been repeatedly announcing this through the Print Media (across various national publications). As a limited period offer, for every five bills that are paid through the website, the user receives a Gift Voucher from PVR Cinemas. And for every bill worth Rs. 800 or more that is paid through the website, the user receives a Gift voucher worth Rs. 150 from Pizza Hut.And there are some other exciting offers too... 

There have been many programs in the past to reward customer loyalty. But this is a bit different. Needless to say, this is among the brilliant campaigns that I have seen in the past few days when Retailers have tried every trick in the book to woo consumers. In this case, a very smart move by PVR and Pizza Hut! While it is bit more cumbersome in the case of the cinema, the pizza idea seems better. The consumption cycle is not just faster, but obviously the upside sales potential is higher. A family of four would order for atleast Rs. 300-400 during one purchase and the upside value is the hook. In case of PVR too, consumers would visit the cinema, redeem tickets against the voucher but buy food and beverage within the auditorium. That’s again a big opportunity.

In both the cases, chances that first-timers would get tempted are high. If someone has never tried paying online, then probably he would, with the comfort of paying bills online, from his desktop or PDA. In case the customer has never visited a PVR or has never ordered a pizza, then that’s again a great attempt to get them acclimatized to a new way of watching movie or dining.

Whichever way, the more you spend, the more you earn rewards. So, go pay! And get rewarded instantly.