10 years in Madras - A recap

It was on this day 10 years back I returned to Madras (by then it was renamed Chennai) - where I have grown up all my life, after a long stay and various stints in Bangalore city since 2004. On 2 Aug. 2012 I joined Royal Enfield Motorcycles as General Manager – Business Development. Over the next 2 years, I would set up 160 dealerships across India for the niche motorcycle brand. I was also responsible for working closely with the Management and the Design Agency on-board to implement the new Retail identity of the brand, which included the new look and feel of the store interiors – from transforming the dealership as an automobile showroom to a lifestyle-led format. In those 24 months, I travelled extensively across India, as always Wed – Fri. every week, 40+ weeks a year, first flight out, last flight-in. I would have travelled more to Tier 2/3/4 towns, especially across Northern India where the brand had a brilliant parentage and was well received. Forget discounts on bikes, my first and second degree connections would just have one request – if deliveries can be shortened, from a usual 6-9 months to a little less than 3 months. Thanks to a supportive Sales Team, I guess we did manage to deliver a few such instances.

It was a revelation to see how the vehicle meant different things to different people. For a metro male, it was upgrading his lifestyle from a humble scooter or a motorcycle to a macho Royal Enfield; for a student who has just passed out his UG (or one in the making), it was a reward from his lovely family; for a groom-to be, it was a gift from his parents or in-laws to be; and in one such instance, the wife of a good friend of mine gave him a surprise on his 40^th birthday with a Thunderbird 350cc. Lovely memories that I carry from those times. 

We also set-up a first of its kind Royal Enfield showroom at the tony “Saket” locality in South Delhi at the Select Citywalk Mall. Technically, the store was located outside the mall precincts and there was a road dividing the two, so we got the best of both – passersby to the Mall as well as serious patrons of the brand.

For the record, Royal Enfield is the world’s oldest and continuous-in production automobile brand in the world, now over 120 years old. The brand, which was born in the UK found its home in India, at the erstwhile state of Madras in the late 1950s when a city based entrepreneur purchased the rights of the brand as well as to retail the machines – Made like a Gun – as its tagline goes, the bikes which were used in World War 1 & 2. Over time, the brand died a natural death with the advent of Japanese bikes as well as home-grown ones including Hero, Kinetic, Bajaj and TVS Motors. 

In the mid- to late 90s, the brand was on the verge of closure, which is when the new owner Eicher Motors acquired the cult brand to turn it around. They struggled for a few years, but eventually cracked the market and broke records. As per today’s report in the media, the company sold 55,555 bikes in July 2022 incl. exports while the domestic sales at the dealer level was 50,265 units. The company is expected to launch new models later this month. A decade back, the company would produce / bill to dealers around 11,000 units pm! The only thing that hasn’t changed then and now – the craze for the brand and it’s waiting period. 

My aunt, who bought me up since I was one-year old was diagnosed with a rare type of carcinoma in Nov. 2013 – Uterian, Ovarian cancer which is quite uncommon in India. Among women, it is the 7^th most common type of cancer worldwide and 8^th most common cause of death from cancer. Like millions, she too succumbed after fighting the disease for 4 years. Upon the discovery of her ailment, my fledgling retail career came to a standstill. There were days when I shuddered the thought of waking up the next day, wondering what to do without a proper job, a full time career, a sagging start-up I had adventured and piling debts and EMIs. Life moved on. And I survived all these years, to write this column today. 

Life moves on, will keep moving, just like the arms of a clock. But over these years, I have grown wiser, most probably, if anything. A proud Madrasi that I am, I am sure I will make my hometown proud.

Opening New Stores - a Rewind...

When I first joined the retail Industry in 1997, scooping ice-cream as a part-time job for Baskin Robbins in Chennai, little did I imagine I would be bestowed the privilege and opportunity to open hundreds of stores in the future. Not that I aspired to do just this in my formative years, but I was quite clear and sure that the “Great Indian Retail Store” was in the making. And that it would last for decades to come. Looking behind 24 years, I am happy that my views and predictions have remained on course. This blog was started a decade back, as a way to respond to queries from my B-School students as I may not find enough time to share my thoughts during the classes. Over time, this blog has remained an edifice of many of my predictions, which have come true. Even as I inaugurated yet another retail store for the company I work for, I couldn’t gloat my feelings about how positive and committed I remain to the Retail Industry in which I play a minuscule role.

Statistics and numbers about the Industry prospects is one. It is indeed a tedious process and takes hundreds of manhours to get these findings accurately and later, analyse them analytically and correlate with reality. Me, on the other side, have always been a “market-first” guy while indeed relying on stats and data too. I have had the unique advantage of feeling the aura of a location, a neighbourhood or a certain geography. This is an acquired skill coupled with instincts which many of us in RBD – retail business development, are endowed with. It’s certainly not a privilege, rather something we hone our skills on. 

For me, it all began in 2005. Mr. Luciano Benetton was in Bangalore and was undertaking store visits, whom I accompanied with our CEO, Mr. Sanjeev Mohanty. As we ended the day, Sanjeev told me it was Luciano’s wish which he too echoed, to have a store at 100 ft road, Indra Nagar. India’s largest store at that. I was baffled. There was a Limelite Salon, Vivek’s Consumer Durables and 2-3 apparel brands, nothing more. Why would such luminaries in Retail and Fashion want to open a flagship store in a nondescript (that’s how it was back then) locality of the city. But they were right. UCB was the first large store ( a house was brought down and 10,000 sft was built) in the neighborhood, which is today perhaps the most expensive retail location in the Garden City. 

Thereafter, I have been in the business expansion roles at Café Coffee Day and Royal Enfield where I set-up 140 cafes and 160 dealerships, respectively across the country. While data was the lead, it was mostly our instincts with which we finalised most locations. Well, there is and will never be a 100% success rate. But the majority of the locations are still rock stars. For Ex., I was responsible for choosing, designing, setting up and operationalising the largest Royal Enfield Dealership and Service Centre in the world at Chennai. It’s been 7 years now and every time, I pass through that location, I feel a sense of pride. The Coffee Day Square at the Terminal 3 at IGI Airport New Delhi is another example. One at Raipur Airport and so on. 

The same is the case with the outlet we inaugurated today (9 Sep. ’21) at RT Nagar in Bangalore. This is the third branch within the neighbourhood for Specsmakers, whereas the locality already has about 15 Optical showrooms. Assuming an average 100 pairs a month per store, that’s 1,500 users who buy specs per month, 18,000 pa. With an estimated population of 5 lakh people within a 3 sq. km radius, that’s a sizeable population to believe there is a large market potential. Specific to the store location, the stretch already has 3 optical stores, which means potential customers are already coming regularly. With the Brand promise Specsmakers offers, I am quite sure that we will be able to get our share of the business, which should possibly be incremental to the pie. Obviously, these are back of the head calculations and it’s finally the Customer who decides whether they should conduct business with a store or not, no matter how hard Brands do try.

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 4^th 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 1^st 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 2^nd 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!

Buying Cars Online is Passe

After coming back home from the Voting Booth, I was sipping my 3^rd cup of coffee watching breakfast news on Tv. I showed my kids and wife, meanwhile two AVs of Tata Safari, the one which was produced in the late 1990s and the one produced this year. They were pretty impressed than I thought, honesty. Then I showed a Youtube Review of the vehicle. Though the reviewer spoke in Hindi, which kids do not understand exactly, he showed the features of the vehicle one after the other and having spent all their life in a single 4-W model, that is our beloved XUV500, they were mighty impressed with the newness that the Safari bought to experience. And mind you, all this even as we were watching a review of the model on a SmartTv. 

One day in 2012, my wife and I went around looking for an upgrade to our Hyundai Verna. Having shifted to Chennai from Bangalore and with both our parents around here, we thought a slightly larger vehicle (read: 7 seater) would be useful for long drives. We saw a few models but took test drive of just one, which was for a distance of 4 kms. After we got back in to our Verna, my wife quipped – either we buy the XUV500 or just continue with the Verna. Nothing else. My second daughter was 9 months old then. A week later, we were on our maiden trip to our Family Temple in a brand new XUV. After 66 months, sold the manual model and bought an automatic – everything else inside the cabin remaining the same but for the gear shift. 

During the lockdown period in 2020, I felt it made no sense to own the “White Elephant” anymore – a Ship is not built to be docked, after all. Thanks to a few good friends and fellow auto- enthusiasts, I refrained. Boy, I ain’t complaining. Have driven almost 18,000 kms in my XUV since Aug. 2020 when I kicked off my road trips, especially on the work front to meet my Colleagues, Distributors (of Levista Coffee) and to see first-hand the Retail Experience. Now that I am driving so much, I have a deep urge to move to another model, what with the same cabin, interiors and features in both models of XUV500 since 2012. 

I never imagined that a YouTube video would impress the secondary decision makers, rather – the Influencers – in the household while making a beloved purchase such as owning an automobile. Test Drives are an important touch-point in selling 4-W. In fact, one of the biggest reasons for success of Royal Enfield, where I worked from 2012 onwards and set-up 160 Dealerships pan-India was that the company allowed patrons and prospective customers to take the vehicle for a test ride. And alongside, offered experiential rides over weekends, special commemorative days, etc. This, worked well for the brand. When a user uses a product first hand – something that Apple first debuted in the Electronics space 2 decades back – the experience cannot be replaced by older means such as reading reviews or word of mouth from other users. 

Over the past few years, online shopping of Automobiles made some noise. In fact, I bought, rather booked my XUV500 in 2018 online for a token sum of Rs. 5,000 for which the Parent company gave me accessories worth the same value as a token of shopping online. Today, things have changed. It’s all about the experience. While family members may not give much heed to what’s beneath the hood, what matters most are the features, comfort and safety. My elder kid exclaimed when she noticed there were 6 USB ports in the new Tata Safari – something that’s perennially important for the Millennial Kids, perhaps. Wife was all excited about the Captain seats in the second row too, which gives great comfort, The very fact that a review (which is not at a showroom but in the living room) can entice potential customers, is in my humble opinion, a tip of the iceberg. The new “influencers” of buying behaviour want everything in their palmtops. Are companies listening? What’s the next big thing that could happen in this space? Virtual Reality, perhaps? Like driving inside the cockpit… Well, the day is not too far, I reckon. And of course, the charm of trials – can never be taken off ever.

Store Openings of a different kind

It’s been around a hundred days that I wrote a column on this blog, by far the longest gap I have ever taken since I started writing since 2008. As I grew in my professional life over the years, the number of posts have certainly come down, hopefully a clear indication that I am busier than before! And the last five months have been one of the fastest and most exciting, although I believe 2013 is when the action would lay. As mentioned earlier in one of my posts, I now work for Royal Enfield, the oldest surviving automobile brand in the world. With a fantastic British legacy, having participated in both the World Wars and some stunning innovations in the motor cycling arena, the Brand was bought out by an Indian company in the middle of the last century. After being almost shut down due to poor product innovation and therefore Sales, the Brand has survived a tumultuous past with an imminent takeover that didn’t go through (probably for good) at the last minute. The company is now ably managed as a unit of Eicher Motors which has a commendable past in the Indian Automobile history.

So what do I do – I am responsible for expansion of the retail foot print of Royal Enfield across the country and also to establish Royal Enfield stores in international markets. I look after Dealer Development (most of the Royal Enfield outlets are operated by Dealers), identification of suitable sites for the business, designing the store including layouts, fixtures, branding etc. and finally up to handing over the store to commence operations to the respective Dealer / Regional Teams. I am also responsible for converting the visual identity of existing stores with that of our new brand identity – a mammoth effort that covers over 200 outlets and is expected to span over 24 months starting early 2013.

To be honest, I have been pleasantly surprised with the outcome of what I am doing. My job compels me to travel 3-4 days a week, across the country and soon to a couple of international destinations. Just a few days ago, I was at a town called Motihari, about 140 kms from Patna which is the capital city of the state of Bihar, the most talked about state in terms of CAGR over the past decade. And met half a dozen prospective dealers – and all of them seem to be gung-ho about the impending opportunity to sell our bikes along with various other things that consumers are grabbing in. I was shown acres of land available for putting up a Royal Enfield store, spread over 4,000 sq ft. in what is now seemingly good agricultural land – a move that is happening across rural India.

Store Openings have never been like this for me – most exciting to say the least. The sheer opportunity to establish over 60 new outlets over the next year is appalling yet an adrenalin run for the Retailer in me. I have the chance to make a difference to the Retail experience of Brand Royal Enfield, a task that has been awarded to me by the Management & Board. I hope I will be able to atleast live up to their expectations, if not exceed… And also hope I would sincerely be able to find time to keep writing…