Showing posts with label RPG Retail. Show all posts
Showing posts with label RPG Retail. Show all posts

25 June, 2025

Silver Jubilee Year celebrations begin!

I was almost in tears when I was informed that I have been posted in the Group’s HQ city as a Management Trainee for a year. 

I walked in to the office of Ms. Latha Nambisan, the General Manager of Human Resources at the time and was almost in tears that this had happened to me among the 2 dozen MBA students who had joined the company, for I have not crossed the city’s borders even for a vacation (sic). 

She gave me her warm, trademark smile as ever and said that this would be the best thing to happen to me in my career and that I wouldn’t regret. It was she, along with Mr. Dasharatharaman (Dash) and the late Retail legend Raghu Pillai, who recruited me after my MBA in Marketing from ITM Chennai.



She was right and her statements, true. I am deeply thankful to the Management at the eponymous RPG Group, which gave me this incredible opportunity so I could share my story one day. 


The only solace for me then, was I could listen to music all day – for the retail format I would work for, sold cassettes and CDs across languages and genres.


After 3-weeks of corporate induction at Spencers Plaza in Chennai where RPG Retail was head quartered, I was put on the 2nd class coach of an a/c compartment – a first in my life – on Coromandel Mail to Kolkata, where I would join Musicworld as Assistant Manager from this day –25th June 2001.



When I reached the Howrah city Railway station in the wee hours, all I could smell was fish and shrimp, coupled with the unique smell of river Ganges which joins the sea here, ending her journey which begins in the Himalayas.


I couldn’t miss the buzz of a city where the majority is hardworking (though a few are hardly working!), as I traversed in a taxi crossing the famed Howrah Bridge and snaked through the narrow roads and bylanes laid by the British 100 years ago.


Since I had reached a day earlier of my date of joining, I decided to take a stroll down “Park Street”, the eponymous shopping destination in downtown Calcutta at the time. There, I met my Area Manager, Dipra Jha who, to my surprise was working on a Sunday!



I introduced myself to him and he welcomed me warmly to the city of joy and wished me a wonderful career in retail. He then showed me the section which had music from “Southern India” and asked me to redo the entire collection in 2-weeks.


When I formally joined the next day, I was treated with so much of warmth by my first boss and Area Manager Sanjeev Rao and the HR Manager, Partha Bhattacharya, who treated me for lunch at the city’s most famed Peter Cat restaurant, followed by pastries at Flurys.


Over the next 5-days (and the months I spent there), my colleagues – all locals, gave me the desired comfort for an outsider and guided me to find a small dwelling. 


I chose to live independently at New Alipore. The country’s first Metro Rail ran in the city and the stations at my departure and arrival destinations where a 3-min walk. 



I didn’t even have a basic kitchenette in my room but had a stereo system with 2-large speakers and a centre unit with a 3-disc player and could play 2 cassettes!


All I had taken to Calcutta were my beloved music system, a few clothes and 2 pairs of shoes. What I brought back was unforgettable memories, a few relationships that I still cherish and the man I became personally and the Retailer I would later become professionally. Of course, I learned conversational Bengali too…


I would travel across River Ganges to Belur Math and Dakshineshwar temple, to Kalighat temple, Birla Mandir and the Alipore Zoo during my off-days and sometime walk back 7kms to my home, from Park Street. 



Every third day or so, the store would host music album releases and I had the opportunity to meet several celebrities during this period. Saurav Da was a frequent visitor. And so was our MD, Shri Sanjeev Goenka of the formerly unified RPG Group.


Food was an issue, being a vegetarian. But after sunset, I partied heavily at famed watering holes in town such as the London Pub,  Someplace Else, Trincas, etc. with friends and acquaintances. 


Since DJs would frequent my store to explore new music, I became their “beloved” guest at the Pub and would announce me on their hand mikes as an eligible and newest bachelor in town to the crowds at large, even as I would hide in embarrassment. 



Along with local friends, I danced all night to drumbeats seeing off Goddess Durga to the sea after Navarathri, watched the horror of 9/11 that fateful day at a friend’s place having dinner, attended so many parties across the clubs of town and even travelled overnight to Siliguri where the second Musicworld store came up. 


The 2002 New Year “rave” party was one to remember all my life. Enough said, I say! 


Being a bachelor, I offered to my bosses that I can work on Sunday, so they could spend time with their families. This also meant, I could learn the retail business in detail, as most of the shopping would happen on a Sunday, especially post noon and the mostly in the evening.


Back in the day, Musicworld Park Street was the largest music store in Asia, spread over 7,000 sq ft in a single floor with a 18 ft ceiling, designed by globally renowned Fitch PLC and hosting listening pods on pillars by Japanese music giant Nakamishi.


The store would record monthly sales of INR 60 lakhs and above. We would sell 40,000 - 50,000 units of music cassettes and over 3,000 units of CDs a month, with an average selling price of INR 30 per cassette for Bengali and Hindi music, and INR 200 for CDs of Indian languages and INR 300 for western music. 


During the month of December 2001, we recorded a monthly revenue of INR 96 lakhs, the highest ever done by the store in its history. By 2010, the music industry had moved away completely from hardware to digital and the last few MW stores were shut down as well. 


But for this unplanned escapade to a town that I feared so much and the initial days of learning in grassroots retailing, I wouldn’t have been able to remain so firmly over the last 2.5 decades in the Industry. Dhonyobad Kolkata… 



Celebrating our 11th year, I had launched the new website for my Business Advisory Firm Miles2Go Consulting Services on 14th April 2025 www.MilesToGo.in with an ambitious vision to file for an IPO in 2030 and to become the first Business Advisory Firm India too do so. Let’s see. 

04 June, 2021

20 years in Retailing

We were 42 of us who arrived at Spencers Plaza at Chennai, one of the only few malls in India in 2001. Most of them had come outside of Chennai. We all had one common reason to come together, through all the diverse backgrounds that we had. We were the Retail Management Trainees to join RPG Group for a 3-week induction at the HQ located on the fourth floor of the same building. Imagine a career, where you have to work amongst shops selling grocery, beauty products, food and beverage and all within a full air-conditioned environment. Only that this luxury would be short lived until we moved back to our “regions” – our destinations to write our own destinies, all by ourselves. The day was 4th June 2001. One of the most memorable days in my professional career. 

I had unofficially joined the retail industry way back in 1997 when I would scoop ice-cream part time at a Baskin Robbins parlour, the first one in Chennai and second in India. Though I was pursuing software languages in the morning at NIIT and a graduation in Commerce in the evening at Ramkrishna Mission’s Vivekananda College in Chennai, retail and consumer business became my first love, instant love, right from the first scoop I sold. For an eternal introvert until then, I never knew I could sell something to someone for a consideration, an expensive one at that, let alone the ability to speak with my chin up. 

To my utter shock, I was posted to Musicworld Kolkata for my 1st year assignment. For the record, I hadn’t ever crossed Chennai city limits in my entire life, save for an annual vacation once in 3-4 years to Mumbai where my maternal grandparents lived or to my father’s hometown at Kumbakonam, where the entire extended family would congregate once in a while for a religious festival or a wedding. I dreaded travelling 1.5 days by train from Chennai to Calcutta. That it was 2nd class A/c was a silver lining. After all, I was going to be travelling in a/c for the first time, that far. The only other time was one of the first rides from Delhi to Lucknow when Rajdhani was launched in the late 80s. I wondered what would I do alone, in the train, all day. And then, all alone in an unknown city, unknown people, unknown language and an unknown destiny. I am glad I took that train, much to my own chagrin, lest I won’t be writing this Anniversary article today with a sense of fulfilment and happiness. 

The memories I have etched of the city of joy, is perhaps one of the greenest that I would carry to my ashes. I made some amazing friends in Calcutta, spoke Bengali in a few months, and most importantly learnt the fundamentals of retailing at Park Street. Mr. Sanjiv Goenka was based in town, so we were always alert for he may turn up anytime. Seeing consumers spend hours together to pick up a cassette worth Rs. 27 was truly amazing. With 80% of volume business coming from cassettes, 15% from CDs and 5% from VCDs and Games, the 8,000 sft store would do a monthly turnover of Rs. 65 lakhs. Yes. In 2001. And the business grew 30% more during Pujo period and during Christmas! Amazing days. 

After a year, I moved back to Chennai on “job rotation” model of RPG Group’s HR Policy to join Foodworld, where I was in charge of the first store of the group. It was here, between 2002-04 that I decided that I wish to spend the rest of my life in Retailing, selling something or the other to end users. Extended Family members around me laughed, wondering why would someone study MBA to work in a grocery shop after all. Neighbourhood was worried if I was qualified enough for an arranged marriage. 14 years later, I received my first professional award – “Top 50 Retail Professionals in India” decorated by Asia Retail Congress. And then, three more awards in Retail and F&B in the past 6 years. In between, speaking at 100s of forums on Consumer Business & Retail in India, Singapore, Malaysia and China!

Before and after my first “public recognition”, my work in retail spoke more than what I could imagine to write. Designing and establishing India’s first ever Travel Retail environment across any private airport in India in 2006 at Bangalore; setting up 140 cafes across India for Café Coffee Day; driving and doubling the dealer network of Royal Enfield from 140 to 300 in just 2 years; and growing the topline of Levista Instant Coffee by 79% during the pandemic year 2020-21; I still try my best to stay grounded and humble without taking up any of the honours on my head. 



Every time I begin my lecture at a B-School as Visiting Faculty teaching Retail Elective to 2nd year students spanning 20-30 hours for the last 16 years, I still feel it is my very first day in Retailing, my tone and throat trembling for the first few minutes in to the class. Completing 20 years in a single Industry feels like an achievement. 


But for me, as I always say – I have just begun and I have Miles to Go before I sleep. Miles2Go. And needless to say, I am a self-proclaimed “Retailer by Profession and Choice. Since 1997”. For a reason!

09 July, 2020

Is Kirana Retail dead? David vs. Goliath

For the first half of my life, I grew up in Tamil Nadu Housing Board Quarters in Chennai which had odd 800 tenements. Lloyds Colony at Royapettah, close to the Marina Beach came up in the 1960s when Late Shri. Bhaktavatsalam was the Home Minister of former Chief Minister K. Kamaraj's cabinet who’s primary motive was to provide affordable rented houses for the EWS, LIG & MIG of the state. The houses were owned by the Government of Tamil Nadu and houses were allotted to users on a rotational basis. Within the entire housing complex, there was a one commercial complex, a school, a community center for weddings & events, a park, a milk vending booth, a library, two playgrounds and about 400 trees. Yes, you read that right – 1970s. And the complex had a few shops allotted for various vocations such as carpentry, automotive, Public Distribution Scheme centers (for Ration products) and most memorably a Kirana Shop (Provisions Shop). That the shop owner was our immediate neighbour and a family well wisher was an advantage for me as I used to visit the shop as a child quite often to pick up some thing or the other and the Uncle would give me a toffee or two once in a while.

I remember vividly collecting newspaper copies of “The Hindu” which had a full page Advertisement in the early 90s when Pepsi launched in town and one could get a sample 100ml RGB against the paper clipping and we exchanged several of these at this particular shop which functioned in the name and style of “Murugan Stores”. Guess, the seeds of Retail and Consumer Business was sowed in my heart in an early age, unknowlingly. Or by design. And hence my nemonic, "Retailer by Profession and Choice".


So, when Subhiksha Retail stores started expanding in the late 90s along with a bunch of new age airconditioned super markets in the “Mecca of Retail” that is Chennai including my alma mater and first job at RPG run Foodworld, conches were blown that this was the death knell for small and marginal kirana shops. Around the new Millenium, larger corporates such as Tatas, Birlas, Rahejas among others entered in to business of Organised Retail and we saw formats such as Supermarkets at Neighbourhoods, standalone Hypermarkets as well as those in basements of Malls and so on, Big Bazaar being the most popular such chain across India over the past 15 years and is India's largest Hypermarket chain. Once again, naysayers blew the conch that this would be the death knell for Kiranas. 

Then came the likes of Big Basket followed by small dotcom companies such as PepperTap, Grofers (including Oyethere.com founded by Your’s truly in 2015 and made strides) where the conch was blown yet again against the Kirans. 

Yet, amidst all this hullaboo, the Kiranas are standing rock solid with their determination, continued efforts to modernize & upgrade and of course, sustain their business with changing times by adapting to the new normal. 

Covid-19 is yet another opportunity for the Kiranas who form the backbone of India’s FMCG retail industry. With over 13 million Kirana shops across India, the Industry employs over 50 million people directly and indirectly including shop management, logistics such as first mile (from factory), middle mile (to Distributor points) and last mile (delivery of goods to Retailers / Consumers). Other than this, the Organised Retail Industry is estimated to employ a million or so staff members. The Share of Kiranas in Grocery & Household / FMCG Retail is approx. 90% which over the past 100+ days during Lockdown has increased to, perhaps say 98% since most Organised Retail stores were shut and E-Comm players remained non-operational or marginally. 


I have been saying this for over 15 years – in this battle, Kiranas are the Goliath. 

It’s almost impossible to get them off this equation – not because they outnumber organized retailers on a ratio of 9:1, rather because of the proximity that they enjoy with the end Consumers and the longstanding relationship they've meticulously built. 

According to a recent study by E&Y, over 40% of Kiranas have imbibed the Digital route including collecting online payments through Google Pay or PayTM as well as delivering through e-comm apps. Agility and Adaptability are the two main traits that these small business owners display, which is also the bane of larger companies and corporates who's employees work for a salary while the small entrepreneurs work for a living and especially to earn for the next meal. Makes a lot of difference in their approach, isn’t it.

09 April, 2017

G for Grocery Retail – Then Vs. Now

From shopping grocery at Kirana stores to Government Ration Shops to one of the first organized retail shops in India to the supermarkets and hypermarkets and finally now with my own mobile Apps for Grocery, I would say I have been lucky to see them all. My tryst with Grocery shopping is cut to the early 90s when I would accompany my father to the state-run TUCS shops and PDS shops and bring, rice, dal & kerosene kept on the back of our bicycles. During the late 90s, a retail shop named Subiksha opened in the heart of South Chennai – a store similar to a PDS but a bit modern with staff in uniform who assisted customers with their shopping needs and a computerized bill to support the transaction. I remember cycling 5 kms to buy 3 kgs of sugar, which would save us 10-12% than buying from the neighborhood Kirana shop. I used to be amazed at how shopping was revolutionized in the late 90s with the advent of “Shop n Stop” a modern retail store close to my house in Royapettah that encouraged self-service, which was not just a fancy thing but also a very convenient one.



I was fortunate in the early 2000s to join and work with RPG Retail’s Foodworld Supermarkets, which was one of the earliest organized retail stores in India. From consumer offers to world class shopping experiences, the company paved the way for future entrants with this format of retailing. When I joined the Future Group, I witnessed how a humble 1,500 sft of a supermarket had morphed itself into a hypermarket with Food Bazaar spread over 10,000 sft at its largest outlet then in 2004 and that too on the fourth floor of India’s first seamless Mall, Bangalore Central. Till date, our family has shopped only at Food Bazaar in over 95% of cases. That’s some loyalty, rather just the convenience of shopping the entire household I would say. Late 2000s was the challenging periods for Retail, although not as worse as what we’ve been witnessing for the past 24 months. Hypermarkets reduced their sizes and have found the 4,000 sft model as their sweetspots and are still tweaking their models.


Since the turn of the decade in 2010, we have seen online retailers come and go and behemoths like Big Basket stay on with a supposedly proven model. I would like to cite the example of IBuyFresh.com which was the online effort of Kovai Pazhamudir Nilayam, a Coimbatore based Retail store that started with fresh Fruits & vegetables and later moved on to the Grocery & Household segments. The e-commerce start-up, which was serving over 800 orders a day in just 6 months of commencing shut down abruptly one day due to viability issues. Others like Peppertap and Local Banya raised millions of dollars to eventually shut down their ventures leaving smaller players like my own Hyperlocal start-up Oyethere.com in jeopardy, what with Investors sitting on the fence not wanting to experiment on new models any further.


Much has been spoken about Amazon’s self-service, self-check-out store in America which is a dubbed as a smart-store where customers pick products off the shelves which get billed while picking-up and the check-out is super quick with just a tap of their credit cards or mobile phones (NFC payments). Grocery shopping worldwide and in India has been seeing a lot of new opportunities, of course with challenges but perhaps, remains the most interesting retail format.

12 June, 2014

Online Grocery Shopping

Big Basket

There has been enough spoken and written about the Flipkart-Myntra deal. Online Commerce is no more a hype at the moment and there is no money to be made – that’s the response most subject matter experts are saying although they don’t want to be quoted since they are in various advisory capacities for many such companies. With a healthy two-digit margin, if offline Retailers are not able to succeed (read: profitable), then how would these companies survive- they ask. Having said that, there is not a single ECommerce company (in India) that has tasted profits yet. While many promoters have made millions of dollars collectively, the companies in question still remain unprofitable. I would presume that a very few of them would even be making unit level margins. Such is the discount structure and focus on Topline that these companies are almost forgetting that the main intention of a business is to create value through profitability and not just a valuation (to subsequent investors). Amongst the online frenzy across categories, the most dreaded and the most challenging category is grocery & daily needs including fruits and vegetables. Bangalore based BigBasket.com already has some headway while WeStaple.com from Noida and a few others who are regional players are taking the lead to establish their positions. Big Basket even has a Mobile app for Android and iOS from Apple. Take a look below at what their customers have to say;

https://www.facebook.com/Bigbasketcom 

http://venkysundaram.wordpress.com/2013/05/29/why-i-stopped-using-bigbasket-com/

https://www.facebook.com/WEstaple

Ganesh Bigbasket

K Ganesh and his wife Meena Ganesh are an entrepreneur and angel investor-duo. BigBasket, which is run on a daily basis by the founders of e-tailer Fabmart, on the other hand, is one of India’s only online grocery stores. Online grocery stores have been seeing big traction around the world, as recurring orders prop up the profitability of the niche e-commerce category. “The Series B funding for BigBasket, which should close in the next three-to-four months, will be around $40- $50 million. We believe it has huge potential, with gross margins of nearly 20 per cent. Every order is profitable for us on BigBasket,” Mr. Ganesh told The Hindu.

Bigbasket founder Hari Menon, a successful entrepreneur who sold his brick-and-mortar retail chain Fabmall and Trinetra to Aditya Birla Group, is bullish. “It’s a huge, underserved market. Convenience is a major factor in our metros. We are finding that at least 85% of our customers return after the second order.” Menon said that revenue is increasing 20% each month. Bigbasket delivers 4,000 orders daily. In Mumbai, where the average size of an order is Rs1800, it does 800 deliveries each day. The site has served 200,000 customers so far and is expanding to Delhi and its suburbs. Menon said the company did Rs85 crore ($14.3 million) in revenue in 2013-14 and was on course to do Rs200 crore ($33.7 million)  in sales this fiscal year.

While the category is exciting, most customers seem to expect the savings (on real estate) to be passed on to them, which in reality is not. If the Real Estate savings are about 10-12% on Sales, the promotions and marketing costs are much larger than that, especially the first-time acquisition cost of customers. While most players do not offer much of discounts for every item, there are chances of combined savings when you buy more quantities or multiple brands from the same company.

However, the overall sentiment seems to be simple- customers would buy products online only if they value their time more than the time spent in shopping offline at Retail Stores such as Spencers, Foodworld, Nilgiris, Big Bazaar, etc. India has a huge density of Kirana Stores while Organized Retailers in the big cities are already quite popular for more than a decade now. Fruits and Vegetables are still preferred to be bought from the vendors who sell fresh quality items, most of them directly sourced from the Markets. Retail FDI in multi-brand retailing is a contentious issue and even the new Modi-led Government is not actively pursuing this at the moment, for the benefit of the trader community who form a big chunk of vote bank.

Online Grocery, at the moment is restricted only to those who work in odd-times, say BPO Employees and many others who would find it difficult to shop at a nearby store especially those who live in far off suburbs. Having said that, the Kiranas are much more active these days, offering various facilities such as door delivery to credit facilities to their customers. While Online Grocery has a great future, time will be a real reckoner.

Silver Jubilee Year celebrations begin!

I was almost in tears when I was informed that I have been posted in the Group’s HQ city as a Management Trainee for a year.  I walked in t...