24 May, 2009

We are One!

22.30 hrs. 24 May 2008.
I was walking from the Arrival Hall all the way upto the International Dep. area. The first flight was about to land anytime and in just a few minutes from then, precisely at 12.05 hrs, the first flight would Depart from our Airport. Adrenalin pumping all around with excitemet and enthusiasm on everyone's faces, that was one night which is among the most memorable ones in my life.
22.30 hrs. 25 May 2009.
Recalling those wonderful moments a year later. Can't beleive Time flies. Quite literally in this case.
The Anniversary or rather our "Happy Birthday" was celebrated with style, enthusiasm and compassion. On Saturday, 23 May 2009, BIAL organized a day's tour for a bunch of bubbly children who are part of Visthar, an NGO that's working towards the betterment of economically challenged. 75 children between the age group 06-14 were brought to our Airport and were later taken to the Apron (parking area for aircrafts). They just couldnt control the excitement they were upto even as they were queing up for a Security Check.
Then, they were ferried by one of the Coaches to - guess what, a Kingfisher Airbus A330- yes, the same Jumbo that flies Bangalore to London... There was a MC who played little games with them and the ever smiling Kingfisher crew served'em lunch onboard. Commendable it was, to see that they served their rare "Guests" in the same impeccable way in which they do otherwise. Wow. I was touched by all the hospitality the girls showed. My profound thanks to the entire team that made it a very memorabble day for these children.
The children wouldn't leave her away from their sight. They hugged her, kissed her, held her arms and spent over two hours together. Until they all reached the venue for the Painting competition that was organized by Odyssey.
All the children enthusiastically participated in the event, that was segregated for two age groups - for those under 9 years of age, it was a coloring contest and for those who were above 9 years of age, it was a painting contest. And the theme was "their day at the airport". The winning entries showed the memories the children have carried back.

17 May, 2009

BIA Shopping Festival

The past two weeks were the most exciting part of my decade long career – in the run-up towards the first ever shopping promotion at our Airport; something that I have been personally looking forward to for the past three years. At 00.01 hrs on 15 May 2009, we commenced the much awaited Bengaluru International Airport Shopping Festival – a month long extravaganza that entitles passengers and visitors to Shop and Win exciting prizes.

Before I get into the Promo details, let me explain how Airport Shopping Festivals worldwide usually work. Airports have moved ahead from being merely places of transit. Today, modern airports provide a host of offering, including many airside facilities (mostly technical ones such as piped fuelling into the aircraft even while passengers are embarking and disembarking, aero-bridges (for the convenience of passengers) for as many aircrafts, overnight aircraft parking, maintenance and overhaul and in-flight catering services – to ensure that your food on board (at 30,000 feet above sea level) is fresh and hot as well as world-class Shopping & Dining facilities, Ground transportation from and to- the city and hosting Exhibitions and Conventions. And most importantly, Airports promote Tourism – within their city, state and country. The moment you land at any International Airport, there are chances that you would find brochures and flyers (mostly free of cost) indicating the various options that one could get in that Country/City. Right from the moment one lands in foreign soil, there is information (overload sometimes) that is passed on to visitors promoting tourism.

Then, Airports promote and encourage a particular airline – the flag carrier as they call which is the largest in the country or could be the largest in that particular airport. Similarly, the airline reciprocates by promoting the particular airport, thereby bringing more connectivity to passengers (and visitors) to the Airport that directly impacts the Airport revenues.

Airports also promote hospitality and related businesses – to share information about hotels, resorts and other must visits in the city. This is important because visitors always tend to judge the country by their hospitality, especially the hotel operators. It is little wonder that we being among the most hospitable countries in the world have such a wide and vast network of hotels and resorts all over the country, which many visitors remember even after they return to their respective countries.

Lastly, the Airports and certain Brands come together - Brands that are closely associated with consumers in the country. From Banks to their service providers, luxury and mainline automobile manufactures/marketers, liquor/perfume/other FMCG companies, they are all there – as part of the Airport’s activities; to support their initiatives as well as to get the best possible benefits from such promotions.

We went ahead on similar lines, tying up with Karnataka Tourism to promote tourism in our state and with Jet Airways, one of India’s most respected and largest private Airlines. It was quite obvious that the Hospitality providers in India are not in their best of state at the moment, with visitor numbers (to India) coming down drastically and business travellers down-trading their requirements. We spoke to many other “Brands” but they all cited similar reasons owing to the global slowdown.


However, we still have something very BIG to offer - The Mega Prize to be won is a Holiday trip for a family of four on The Golden Chariot – a luxury Train that goes to Heritage sites across Karnataka. Then there are weekly prizes – five couples win a trip each on The Golden Chariot and five couples win International tickets sponsored by Jet Airways. And then, we have Daily prizes – one lucky couple win a Holiday at one of the best resorts across Karnataka.


The Golden Chariot, which is managed and operated by KSTDC - Karnataka State Tourism Development Corporation (which is affiliated to the Dept. of Tourism, Karnataka) travels 7D8N across some of the most exciting heritage sites such as Srirangapatna, Mysore, Hampi, Patadakal, etc. in our state and finally ends at Goa. The fare which is USD 350 per night per person includes the cost of travel, F&B onboard, access to several other facilities such as a gym, internet, spa, etc. The service successfully completed its first year of operations in March 2009. Jet Airways (9W), is among the oldest and most respected private airlines in India. Owned and controlled by serial NRI entrepreneur Mr. Naresh Goyal, 9W is most popular for its efficient service, onboard and on ground. Connecting people across the length and breadth of the country, the airline commenced International services many years ago.

To win any of the above prizes is quite simple and easy. Passengers and visitors who pass by our Airport between 15 May - 14 June 2009 need to spend just Rs. 300 (USD 6) and above across any of the Retail/F&B Outlets at our Airport to participate in the Lucky Draw. For every Rs. 300 that is spent, the shopper gets a lucky draw coupon. So, for shopping in multiples of Rs. 300, the shopper gets multiple coupons, such as 10 coupons for Rs. 3,000 and 100 coupons for Rs. 30,000 spent, and so on. The more one spends, the more are their chances to win. And 9W passengers who fly during this period get double the chances to win - they get two coupons instead of one! So, for Rs. 3,000 spent, they would get 6 coupons...


And to bring flexibility and to add convenience to shoppers, we have a provision where passengers could club their purchases across outlets – which means one could spend Rs. 170 at an outlet and Rs. 130 at another and then collect a coupon for the total spend. This way, the shoppers could spend across the Outlets and finally accumulate all the bills to collect their coupons.

Visitors & Passengers could also pick up a brochure, courtesy the Tourism Dept. - one side indicating the location and special offers across various Outlets and the rear side would have the maps of Bangalore and Karnataka. To promote Culture and Folk Arts, there would be performances over the weekends, showcasing the various cultural facets and the rich heritage of our State. There is also a replica of the Golden Chariot- and the world famous Hampi stone Chariot on display. There are also small outlets that display and sell various handicraft products, so we effectively bundle and promote everything that we have from our state.




So, do drop by at our Airport with your family and friends when you find time over the next four weeks, to witness another exciting shopping and cultural season ahead.

Press Coverage:
Aviation India
Bangalore Mirror
Deccan Chronicle
Financial Channel
The Hindu
The Hindu Businessline
The Times of India

02 May, 2009

Van Heusen - From Power Dressing to Powerful communication

Madura Garments, the blue-eyed Retail business of the Aditya Birla Nuvo – among the most respected companies and a long-time Retailer in India, recently launched a powerful communication for its most revered Brand – Van Heusen, popularly known as VH. Calling it the “Master of Ceremonies” (probably pun unintended), the new line of Suits and other dress materials has woken up the upper segments of the apparel maket even during this so called “slowdown”. Typically focussed on the Middle and Senior Management of the working class, Van Heusen has many firsts to its credit. Those who are in the know would remember the olden days of classy exclusive Van Heusen boutiques in large and small cities all over India. Although the imported brand rights were licensed into India by the Birlas many years ago, most consumers thought it to be a really international piece, not just for its name but for its sustained styling and creations, needless to mention, an International ambience at its stores and well trained and groomed staff always around to assist customers.



Many would know that the Brand also associated with the main character of a recent Hindi blockbuster, Ghajini, and thereby bringing back the culture of waist-coats to Board Rooms. The weather conditions, however, in most Indian cities was a deterrent for this to become usable and popular. A few years back, another flagship brand of the company, Louis Phillippe associated itself with the powerful character played by the lead role in the Hindi movie DON. And many other Brands used and are continuing to use the Hindi filmdom, popularly known as Bollywood as well as other local language films to launch and showcase their collections.

Coming back to the MC Collection from VH, there is a great effort being taken by the Retailer this time. Similar to how international brands prefer taking appointments from their key clientele and make the brand feel superior, VH has taken a similar route this time around – to entice focussed walk-ins into the retail store. One needs to just call up a phone number and book an appointment for an exclusive “dekko” of the collections avaialble at the store. As is anyone’s guess, the conversion is almost certain, given the Brand’s equity in the market and the conviction of shoppers to posess this Brand. And most importantly, the pricing is not too high – ranges from INR 9,000 - 15,000 (USD 180 – 300). Freebies such as a matching Tie and a breast-pocket handkerchief, as always are packaged smartly along with the main offerring. This is being tested for two months in a row – May and June 2009 and in all probability, the Brand may retain such an exclusivity in future at certain stores in large cities.

Now, my point to make here is the attention given to the customer in today’s scenario. Losing regular shoppers to competition is usual, but losing shoppers due to an economic slowdown doesn’t happen frequently, not even in a few years’ cycle. This is the time Retailers must take care of the customers more than normal – pamper them as much as possible with innovative, yet simple ways to get them into the stores. As you would agree, atleast in most parts of India, many are holding back their spending – a typical phenomenon of sitting on the fence. Show them the value, and communicate with them in such a way, that they get down from the fence and walk into the stores, and that’s really half work done. And then, the Merchandising has to lead from there. Very few have realised this in today’s market condition. And they are sure to reap benefits. Like in Management, there are three types of Retailers – those who achieve success, those who watch, and then those who wonder! Clearly, our example here has always been the first – and it continues to strive excellence.

22 April, 2009

Luxury Retail at Airports

The so called economic slowdown has not dented the prospects of Luxury Brands and labels, atleast in India. According to recent reports, Luxury Brands across categories are actually opening more stores and are recording higher sales than before. One of the reasons stated was that these consumers would have normally bought these products at Singapore or Dubai or Hong Kong while they were travelling (on vacation or business) and now since they are not travelling too much, they are buying these products in their neighborhood... err., that’s within India!

Sounds logical, but personally am unsure how true it is without a sound research or backing. Another reason that is usually stated is that these consumers are price inelastic (or rather recession inelastic, if you may allow me to say!). And that’s why more people are interested to procure that coveted C-Class or 7 Series at 5% Interest or low EMIs. Sometimes, I get confused with what recession does to people.

Having said that, it’s always interesting to watch how people embrace luxury. The new age malls are creating a niche (if not already) for a select breed of people to meet in a defined environment. Whilst sipping that decade old wine, they also talk about how a European Airline treated them so badly, by not upgrading them to First Class from their Economy Class tickets, in spite of having enough air miles to their credit (and anyway the planes fly empty these days).

These are the same consumers who are the core audience for Luxury Brands at Airports. And these coveted Brands take up prime space at Airports mainly to be in touch with their audience - to launch a new line, to talk about new promotions and to keep pampering their regular shoppers with exciting offerings. Many wonder if these Brands actually do any business at all, and if yes, would that be enough to sustain the (perceived) high rentals at Airports. Contrarily, these Brands actually take space to showcase themselves for their markets. And then, of course over a period of time, they build reputation and connect with the frequent travelers. And thereby it becomes a strong reason for them to expand inland. This is one way of course.

However, many Brands prefer to do it the other way – to first open large stores inland and expand within the city/country and then to come to the Airports. It’s quite difficult to say which model works best, but keeping in mind high operating costs in the city and in the country, it may look more feasible to take shop-in-shops or run Specialty stores with the main Airport Retailers. One way or the other – it’s just another reason to be in touch with their consumers. In today’s market scenario, one would agree “out of sight is out of mind”, all the more reasons to be in touch.

21 April, 2009

An Odyssey from Adyar to Africa!

I was watching the second day’s cricket match of the second edition of the Indian Premier League on Sunday, 19 April 2009. What struck my eyes was the big branding of one of India’s leading Retailers, Odyssey. One could not miss this name on the back of the team’s jersey of each player of Deccan Chargers, one of the eight teams that's part of this new concept in playing the game in just 20 overs! Enough has been said and written about the format, so I save my readers of any more of that...

Coming back to Odyssey – Dictionary.com defines this word as “a long series of wanderings or adventures, esp. when filled with notable experiences, hardships, etc.”

A very apt name christened by its Founder and Promoter. For all the struggles they have seen over the past decade to be where they are today. I have been seeing this brand since their inception in the year 1995 – at a nondescript location at Adyar in South Chennai, the capital city of Tamil Nadu, India. It was among those first stores to be “Organized” for the categories they were offering – mainly Books and stationery, Music and other leisure products. They were quite popular among students and youth in the city, especially in that area – given the affluence of people who resided in and around along with a number of schools.


Among the first initiatives of expansion of the business by the promoters was to step into a prominent Luxury Hotel in the city in 1999. This made them be seen, by the literati and the glitterati, and Brand recognition started to increase. In a couple of months, expansion was seen across various cities in South India. Even before they were acquired by Deccan Chronicle Holdings in 2005, they launched a co-branded Credit Card with ICICI Bank, one of the largest banks in India. This was a great initiative at that time. There are not too many Retailers who have ventured into this path and Odyssey is among the few who have got it right. However, a lot more could be done by Retailers through such partnerships – to be regularly in touch with their customers, to begin with. After signing up over two dozen stores in the same year, the brand started seeing more stores being rolled out – this time all over the country.


The year 2008 saw maximum store openings including another first to its credit – the first Leisure Retailer in India to enter Travel Retail when it opened its outlets at the Bengaluru International Airport on 23 May 2008. This was followed by other Airports such as Hyderabad and Delhi Airports and I am told that they are aggressively pursuing this subset of the larger Industry quite well. Also on the cards – a long list of Metro Rail stations at Delhi. As on date, although largely present in South India, they have 40 stores across 13 Indian cities. With one of the largest network of Leisure and Book Retail Stores in India, the Brand’s main USP, as I believe, is its simplicity. Most stores have a universal appeal with its furniture and decor only varying to suit the needs of the particular markets. Although Books are still the mainstay even today, they have ventured across various categories including Toys and Electronics, which needless to say are quite popular among its core audience. They also hold Book Reading sessions with prominent authors and writers at their Outlets – a unique but a sure way of getting more walk-ins into their outlets.


Coming back to where I started – advertising through IPL. Many of you would know that the promoters bought the Franchise of the Deccan Chargers Team in the year 2008 at a whopping USD 107 million! The sheer coincidence or rather the advantage of having such a sound backing from its parent and a pan-India presence would have obviously prompted the Retailer to take pole position as against the choice of its sister concern, Deccan Chronicle, a daily newspaper that’s present only in three cities in the country. This is also a first in our Industry – I am yet to see Retailers advertise through such media for obvious reasons of exorbitant advertising costs, although sports goods / FMCG manufacturers and marketers are exceptions. What a sensible way of utilizing space of its promoters’ assets and mainline communication to its potential and present target segments! Wow. And an opportunity to retail the Team Jerseys and other accessories at their Outlets - a clever, yet simple way of getting more shoppers walking into their Stores! This brand, from Adyar to Africa, has come a long way and probably there would be a day when they own a team as well. Hopefully. And I would be cheering for their team, as much as their success. For sure.

17 April, 2009

Driving Retail sales using ATMs!!

Its public knowledge that effective 01 April 2009, the Reserve Bank of India has mandated that cash withdrawals from an ATM, regardless of which bank one has his/her account with, are free of any additional charges. This means, if an individual has a Debit Card from Bank A, and wishes to withdraw her money using the ATM of Bank B, then she wouldn’t be charged Rs. 15 or Rs. 20 (1USD = INR 50) which she was being charged earlier. That’s great news. Especially for those who have their accounts with smaller Banks – those Banks who have smaller ATM networks. All the more in Tier II towns. And ofcourse, my favourites – the villages and rural areas.

So, what?

Well. I see this as a huge opportunity for Retailers. It’s already quite common to see ATMs in non-banking locations such as Petrol Bunks, Airports, Railway Stations, Malls and Supermarkets. These ATMs which are today much more sleek and compact than their older cousins (including in-built CCTV cameras that are as small as shirt buttons), could easily be fit into smaller areas. Till now, many retail formats haven’t sensed the usability and importance of these ATMs. To begin with, its additional rent to the lessor or landlord.

If buying bread-milk-eggs could bring customers regularly into supermarkets, then why not ATMs! Look at a scenario – In India, on an average, we withdraw enough cash to last for a week or so. According to latest estimates, about 40-45% of its Sales transactions in Organized Retail are made using Debit and Credit Cards. Which means, there is a huge opportunity to attract those who use cash – from buying convenience products to luxury goods. A strong reason why ATMs must be encouraged across various Retail formats – most importantly at Hypermarkets and Supermarkets.

In today’s economic slowdown, the biggest hit format happens to be Supermarkets. With most categories seeing less than 60% “fill-rates” due to various reasons, many SKUs being unavailable (partially) through the year and hardly any major difference among the various “brands” of grocery retailers, those who have an ATM will certainly see more walk-ins. Needless to say, there would be something or the other that they may want to pick-up and there you see – higher conversions! And yes, users visit ATMs not just to withdraw cash – today, banks offer many other services, such Cheque-Drop Boxes, Tele-banking, internet banking, details about new and existing products and services such as personal loans, home loans, insurance, etc. Many reasons why users keep visiting ATMs.

Other areas where I see advantages for Retailers – since most ATMs prefer to have a Security Guard posted 24/7/365, the Retailer and the Bank could share the cost. The ATM Booths could have fliers of Offers and Promotions at the Retail Store, thereby informing ATM users about what’s the latest in the store. Retailers could use the banks’ existing database and send them mailers (by post/email). In return, the Retailer could pick on a random basis, an ATM user over the past month and gift a voucher! Consumers who use a particular banks’ ATM/Debit cards could get special offers – Savings (Read: discounts) on products that they shop. Wow. And many more.

When most Retail formats have seen a 20-30% dip in their footfalls today, this could be a great way to bring more people even near or outside the Retail Stores. And yes, as I always believe in, its consumption that drives growth. Always.  

11 April, 2009

Fore-court Retailing

Many of us would have seen Fuel stations abroad, especially in the West, where they extend other facilities - such as ATMs, Convenience Stores, Garages, and even Food Courts/QSRs, etc. While I was filling Fuel this morning at a Petrol "pump" near my house, I was wondering, what else I could do around the same time - I had to pick up some vegetables, ice-cream, bread (for Sunday breakfast) and some Magazines. The nearest outlet, where I could get all the above (either in one store or in different ones), was atleast another 10 minutes’ drive, but how I wish I could get some more under the same roof! Although it’s quite common to see some Oil Marketing Companies in India already in the fray for some time now, there is no great headway as such. While Vishal Retail has tied up with Hindustan Petroleum to start forecourt retailing at the HPCL outlets, Indian Oil has inked a deal with Future Group. Bharat Petroleum has tied up with Cinemata to set up cinema halls at its 300 fuel outlets on highways across the country by 2010.



To begin with, as I see, the main issue is ownership. Whilst most Outlets are franchised, the franchisee pays the lease rentals (if not owned by them, which is rare). The Franchisee makes about a Rupee or less for every litre of fuel that’s sold. No wonder, the franchisees spend a lot of time these days at the Outlets, to ensure quick and efficient service (with a smile) and thereby getting back these customers. Apparently, the Loyalty factor is among the lowest in this business, I am told. Some of us are quite particular about where we fill the fuel – but that’s just some! Many of them do not really plan their usage and hence drive into the ones that are closer, when they finish the tanks.

So, if there were (Organized) Retail formats here, then there is again an ownership issue – most of the Convenience (format) Retailers do not prefer the Franchise model and this could be a stumbling block. In Bangalore, there were some F&B operators who tried this – they are not popular coz’ they aren’t successful, possibly due the slow or nil growth. Larger Organizations wouldn’t be averse to this model, but I am particularly not sure what’s stopping them. In today’s times, where every square feet of space is expected to fetch returns, it’s not a bad idea to sub-lease a part of the premises for various other activities.

Just a matter of time, I keep saying (to myself), the eternal optimist that I am. Hopefully, my optimism will not be a dream. Let’s see.

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