A for Attrition

My father started and ended his career after 33 years at ITC Limited, the largest cigarette manufacturing company in India, which has now morphed itself in to a full-fledged Consumer Products Company. I always used to wonder how such traditional companies could retain their employees so long while new-age Retail Companies - established players as well as newer startups fail to do so. One of the biggest issues plaguing Organized Retail (Offline & Online) today is – not just lack of Investments or returning customers, rather staff attrition. Despite best efforts by the company, from monthly felicitations, cash rewards, mid-course promotions, and of course the house parties at startups that sometimes even have beer and snacks flowing, employees leave. At times, abruptly.

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Why Employees leave – Myths

Competition: Loyal employees, almost certainly never jump to competition. They leave their present organization on the premise that employee-friendliness is better at the Competitor’s place. And the job-hopping continues.

Higher Pay: Most employees never work just for money. They work for their passion towards Retail and serving customers whole-heartedly. Indeed, a good salary is important, but it is certainly not the only reason for them to leave.

Recognition & Rewards: While most Retail companies have a robust R&R mechanism, it generally fails to reward deserving candidates due to internal conflicts, nepotism and favoritism. Employees leave when they are not recognized for their hard work, especially at the front-end grass-root levels.

Distance to travel: Another big myth is employees feel the workplace is too far from their residence. Certainly not. Happy employees will travel any length to their workplace provided they are happy working for the Employer.

False promises: At times, Employers make tall promises about the job, work-life balance, promotion opportunities and incentives in addition to remuneration. When these are not kept up, employees feel cheated and walk away.

There is an old adage, which goes “Employees never leave an Organization, they leave their bosses”. This is so much true and relevant in current times when there are so many jobs that are getting mechanized from Retail Warehouses to Cashier checkout points. 

Offline Retail stores rely completely on human values and relationships between the front-end employees and their customers, so for these Retailers it is even more important to ensure the staff are kept happy.  At senior levels in the Organizations, the CXOs must ensure not just a happy working environment but must also measure these experiences from time to time and also keep improvising it. Top Retailers in the world have seen closure of their businesses and one of the key attributes to that is employee retention.

--> For most of us, A for Attrition is a bad word. But we must strive our best to ensure that this word loses significance in our business lives, slowly but steadily.

Chennai Shopping Festival

For the first time, Retailers in Chennai have come together to create a one of its kind Retail Promotion. Titled "Chennai Shopping Festival" (CSF), this is organised by the Retailers and for the Retailers of Chennai. My own start-up Smiling Baby, a baby store that caters to the needs of new born kids upto six years is a member of Retailers Association of India (RAI), an Industry body that represents our needs and requirements to the Government and other bodies. Under the auspices of RAI, members of the organisation have come forward to create a marketing property which is CSF. The idea was rolled over on our WhatsApp group by a member, seconded by a few of us and actioned by all of us in just a week's time from start to finish. We have built a simple website that provides information about the various participating stores and their offers. Take a look here.

http://www.chennaishoppingfestival.com/offers/28

Over 30 leading Retailers from Chennai spread over 300 stores in the city including Viveks, Odyssey, Basics Life to name a few have come forward to join in this promotion. The big highlight of this promotion is Uber has come forward to ferry passengers to select Retail Store locations by using the code CSF150 (One Free ride worth Rs. 150 for new users!).

We at Smiling Baby also have a few interesting offers.

Smiling Baby is located at E-135, 6th Avenue, Besant Nagar, Chennai. Ph. 044-43507015 / 9176300015. Open All days from 10am - 9pm. Over 100 brands are available at competitive prices across categories such as Baby Care, nursing & Feeding, Maternity, Cosmetics, Baby Gear, Toys & Games, Apparel and Accessories. The store is the ONLY Destination Store for Medala, world's best mother care brand and houses the entire range of Medela products such as Breast Pumps, Maternity Hygiene, Feeding bottles and so on. One can also find world's other leading brands such as Chicco, Pigeon, Fisher Price, Himalaya, Johnson & Johnson and many others.

Once cam also shop online at www.smilibaby.in where the products will be delivered the same day or the next day with a Cash on Delivery option other than paying by Credit / Debit Cards at the place of delivery using mobile EDC machines.

Do spread the word; visit the website and click the "Get Offer" button so you receive an SMS to your mobile. Happy Festivities. Happy Shopping.

Mistakes make you stronger

In what is considered as a head-turning market opportunity, I went about with plans to deliver Eco-Friendly clay Ganeshas to customers at their doorsteps. While a few people have already tried it in the past with limited success, this was perhaps the first time a Hyperlocal Ecommerce Marketplace (my startup Oyethere.com) was trying something very unique such as this. We had four different options – an idol of Clay Ganesha being common in all the four and the additions being different in each one of them. Icing on the cake was that we would pick up the Ganeshas back from customers houses after the five day ritual was over, thereby providing customers a great sense of relief from rushing towards water bodies for immersing the idols, as is the normal practice around the festival that is celebrated all over the world by Hindus with much fervor. Being a strategy guy, I planned meticulously on how this whole exercise should be executed. Firstly, met our product partner well in advance to brief them about the enormity of the opportunity and what gains it would bring to both of us. Later, I planned the marketing campaigns, mostly digital.Finally, I worked on the logistics and last mile delivery which is the key thing in Hyperlocal Ecommerce.  As always, plans on paper looked glossy. I had very few chances of faltering, I thought to myself and didn’t leave enough room for things that could go out of hands. And that nailed me in.

12 hours before we began the distribution and delivery of Ganeshas, I gave a notice to my product partner. While I was sure they were at work, I didn’t follow-up every few hours on what has been the ground scenario. The partner’s staff, being new to this kind of an operation, hadn’t kept check and balances which meant that there were unforeseen delays from their suppliers. We started deliveries 3 hours behind our scheduled time of commencement, thereby putting a lot of stress on our capabilities. While we had adequate manpower to deliver Ganeshas, the last minute pressure hit everyone on their heads, with all of us getting in to a tizzy. I was attending almost every call that was coming to our helpline and patiently explained to customers that the Ganeshas would be delivered on time, only to find myself fooled by my own randomness. We delivered and delighted a majority but had to suspend our operations at one stage, which not only put off the customers but also attracted a lot of negative criticism through calls, messages and social media. At 11.55pm, I put out an apology on our official Facebook Page, requesting customers to forgive us for the lapse. I went underground for a few days, with no interaction with the outside world, just so I could introspect the mistakes and come out stronger. Which I did eventually, doing a favour to myself and my ecosystem.

As always, my wife and a few friends stood by me. Many of them took the effort to call me, message me to keep my spirits high. They quoted examples of how very large companies have committed grave mistakes but came back stronger after correcting themselves. And so here I am, back in action with new plans and new resolves to improve ourselves and offer better services in times to come. Our plans are intact and we believe we will only perform better in times to come. 

Don’t write me off, yet. And watch this space.

EMIs to the rescue of Retailers

I have been receiving emailers from Bajaj Finance, one of the largest consumer finance companies in the country for a long time now, ever since I bought a couple of stuff using their services 5 years back. I still haven't unsubscribed to their mails, hoping that I get to gain a lot of insights into Consumer Behavior day in and day out. The one that I received today was a bit surprising... Even as I just finished my daily quota of early morning news releases, Bajaj Finance sends me an email that the newly launched iPhone6 can be bought using their services through EMIs, while Apple had announced earlier in the day that they have advised Retailers to discontinue the EMI Schemes specifically for the newly launched models due to overwhelming response and low stock quantity. Wonder where the communication channels failed between Apple, the Retailer and the Financing Company, clearly that there was an overlap of information to consumers which is misleading. Leading Retail chains such as Univercell, The Mobile store, EZone and a whole lot of smaller local resellers have been offering EMIs on the newly launched iPhone6 and 6 Plus.

Apple has been struggling in India, not because of a slowing market. Its quite the opposite. More and more people are embracing the Apple Ecosystem and this trend is clearly visible every time there is a new launch. For a country of over 1.2 billion with 300 million youth population, assuming a 0.1% population that would aspire to buy a new iPhone, Apple Inc has dispatched just 55,000 units of the newly launched model. This is quite amusing. Apple Sales have been scaling higher and higher in India over the last 2-3 years, yet the US Headquarters hasn't been giving the subsidiary and the market its due. In fact, it was the news recently that Apple India had to almost fight with HQ to advance the sales of the newly launched models ahead of Diwali to cash in on Festive sales. That the Sales would have been the same otherwise too, is another matter.

So why has Apple advised Retailers not to offer EMIs on the newly launched models? According to trade partners, the reason is three fold. To begin with, the company wants to create an atmosphere of desirability - EMI is the easiest way for youngsters to posess the product and Apple wants to keep it away from this lot of consumers. By not offering the EMI, only those who can really afford would end up buying the new models and it would command a premium in the market for a much longer time. Second, Apple and the Retailer would have to bear the interest costs partially since the EMI would be offered interest free to the consumer and it wants to minimise this cost at the moment. Third, Apple wants to clear the past inventory in the market; Models such as the iPhone 4 and 4S which were released over 3-4 years ago are still available to buy in the market and since there is no bigger market opportunity than India, Apple perhaps wants to clear the last lot of models asap.

So, if you are looking for a great deal on an older model of iPhone, now is the time. Rush to your nearest Retailer and negotiate a good deal, which I am sure they would be happy to offer. After all, an Apple product has a wonderful ecosystem and the older models too have a great experience to offer.

The iPhone Saga continues...

When I posted on my Facebook page at 11.35pm on the night of 16 Oct. 2014 that I was the first in the city of Chennai to receive a 64 GB Gold variant of the iPhone 6, someone sarcastically quipped "So?!?" Well. It was no big deal. Really. Anyone could have been the first one if they had put in the effort. And for me, it was pure fun. And a Retailer's delight too - to see how a Retailer delights his customers through completing a much anticipated and well hyped "transaction". In many parts of the country, the event was quite publicized and draw discerning customers to the Retail Stores - one retailer in Chennai had gone a step ahead to rope in leading actress Hansika Motwani to do the honours. India's largest mobile store chain, The Mobile Store took a full page Ad in national newspapers urging people to preorder and get the device in the midnight. Flipkart, India's largest ECommerce company along with rivals Snapdeal and Amazon was taking preorders promising one-day delivery. Crazy Apple Fans lined up the outsides of the Retail Stores, from UB City in Bangalore to Select City Walk in New Delhi's posh Saket area. I, however chose to skip the queues and chose to book with a low-key Retailer close to my workplace. I really took a chance with this Retail Shop, it is called Hello World located at Adyar, in South Chennai. They charged me Rs. 5,000 as booking charges 5 days before the original launch and assured to deliver the phone by midnight.

 On the day of release, I called then twice during the day to check if everything was as per plan, and they continued to assure that they were geared up for the event and I could come over after 11.30 in the night to collect the "piece". Yeah, ultimately its a piece, but a precious one though! I finished work, went home, had shower and dinner and drove back to the shop and reached around 11.15pm. There were 2-3 other customers who had turned up at that time. I was actually taking a chance, just in case they offered to sell the piece well before the time the invitation suggested. And in true Indian style, they did. They "sold" the first piece to me well in advance of the promised time but cautioned me not to activate the phone until 00.00 hours, lest I lose warranty.

I came back to my car, clicked a Selfie and shared on social media and whatsapp groups - small thrills, you see. And was greeted and responded by many people whom I knew and didn't. I really felt happy that the Retailer stood its purpose and kept us its word by delivering what was promised.

I came home and waited patiently, only to activate my new iPhone6 at 00.05 hrs. Its a delight to restart or swicth on an iDevice. And I love that experience absolutely. The finesse with which a product has been created and packaged - Hats off to Steve Jobs for this. I have been using Apple products for a decade now, with my first one being an iPod Nano 4GB. In the year 2004, it was a miracle to store over 10,000 songs on a single portable device that can be heard through headphones, on a car through an AUX Jack as well as played on a music system. And Apple has gradually grown its line-up. at the moment, I guess they have over 30 SKUs, some in sales in a few countries while some have been discontinued from production as well.

There have been a number of reviews about iPhone6 itself, so I am not going to get into the technicalities. Your favourite news websites are a better source than mine. So, I would urge you to read what you think suits you best. I am only going to share how it feels as a user, as a keen observer of consumerism, as a retailer and as a Retail Consultant who advises various businesses.

The iPhone6 is a tad bigger than the previously launched iPhone5S. The beauty of the earlier iPhones and iPods was that they could be managed using one hand, depending on what suits you. Not anymore with the new model. While a few can hold the device comfortably in one hand, most people, including a few women may find it difficult to use it on one hand. However, the flipside is the screen size looks much bigger. You get to see and read a lot more, especially on sites like twitter and facebook as well was webpages. While the default font size remains the same (it can be increased through manual settings though), one gets a feeling of using a non-Apple device. Maybe like an HTC or Sony. Samsung has launched various sizes appealing to various strata of people, just like how another Korean Automobile company Hyundai does. So, it depends on which other smartphone you compare it with. But interestingly the new model is lighter than the previous one, so the size is compensated with the pressure exerted by the palm.

Speed is immensely better in the iPhone6, but you would realise this only while using certain apps. And the likes of Facebook and Twitter have updated their own apps in line with the iOS8 Operating system, so the apps now open up and perform much better than in previous devices. Battery drains slower than before, although I haven't put the device to too much of use such as having a Facetime Call or watching a movie. Features like Near Field Communication (NFC) and ApplePay wouldn't be usable in India, for we dont have the relevant infrastructure here. Other than some basic cosmetic changes, there is nothing new in the device, although hardcore Apple Fans will tell you about the technicalities which I dont think will change the way we live! However, to each his own. 

At the moment, its been just about 36 hours since I have been using the phone and it seems to be working well and doing its job to its best. And my love for Apple keeps increasing by the day. As the saga continues...