UnHate the campaign, atleast for the Consumer’s sake!

 

There is so much brouhaha about the most recent campaign of United Colors of Benetton, the marquee fashion brand from Europe’s fashion capital, Italy. Benetton’s in-house design agency Fabrica has created the recent campaign among many others over the years, particularly the one which showed a blood smeared baby still attached to its umbilical cord which was also a much talked about one. Benetton also had campaigns which showed a nun kissing a priest, three hearts declaring “white, yellow and black” and so on. Over the years, Fabrica has attracted global talent to work in its think tank and has been a darling of the creative minds. The recent Unhate website has this to say;

What does UNHATE mean? UN-hate. Stop hating, if you were hating. Unhate is a message that invites us to consider that hate and love are not as far away from each other as we think. Actually, the two opposing sentiments are often in a delicate and unstable balance. Our campaign promotes a shift in the balance: don’t hate, Unhate.

The UNHATE Foundation, desired and founded by the Benetton Group, seeks to contribute to the creation of a new culture of tolerance, to combat hatred, building on Benetton’s underpinning values. It is another important step in the group’s social responsibility strategy: not a cosmetic exercise, but a contribution that will have a real impact on the international community, especially through the vehicle of communication, which can reach social players in different areas.

The Foundation will organise initiatives involving different stakeholders, from the new generations to the institutions, international organisations and NGOs, through to civil society.

The Foundation also aims to be a think tank, attracting personalities and talents from the fields of culture, economy, law and politics, and people who have gone from simple citizens to leaders of movements, distinguishing themselves through their ideas and actions against the causes and effects of hatred.

UnHate Video campaign from benetton.com

The Media frenzy, as always makes it more sensational that it seems and there is enough outrage in the internet world and the real world about this. Industry leaders from the advertising world (in India) have commented on the afaqs! website, which is as follows;

************************************************************************

Piyush Pandey
Executive chairperson and national creative director, Ogilvy India

I think the entire campaign is sensational and unnecessary. It is certainly edgy, but being edgy does not mean that you cross limits. A lot of people will say that it is a fantastic way of doing things, but I feel there are other fantastic ways of doing things.

K V Sridhar
National creative director, Leo Burnett

The participants of Bigg Boss are supposed to behave in a certain way. Similarly, Benetton as a brand is supposed to behave in a particular way, too. If it does not behave in that manner, then it would be unique.

One other campaign of the brand showed a blood-smeared baby still attached to its umbilical cord. As a brand, it has done several such campaigns in the past. But, this time, I feel that it has done it intelligently. The message that nations/religions should not hate each other has been conveyed effectively through the best form of expression of adore - a kiss. Leaders are representatives of the masses. If they would have shown Barrack Obama hugging Hu Jintao, then it would not have been as interesting. But, this one works and is brilliantly executed.

Arun Iyer
National creative director, Lowe Lintas

It is a controversial ad. But, that is what it is supposed to do -- create controversy. Fifty per cent of the people will feel that it is in bad taste, while the other 50 per cent will find it interesting. However, despite the like or dislike, it will induce talk-ability. I think visually, it is supposed to be debatable, but at a thought level, it is not at all a debate.

The fact that this campaign has been successful in creating a debate is by itself a success of the brand and its objective. However, it is also trying to push too far.

************************************************************************

Well, the big question is, Does this campaign really solve the purpose of Love, or rather, Unhate? Oh, am not sure. Does this campaign appeal to the younger generation who is the intended customer base for "Brand Benetton”? Absolutely. Over the years, Benetton has seen stiff competition from Spanish fashion giant Zara (which apparently changes the design/range at its stores every few weeks) and several other brands such as Mango, Esprit and many other local brands in several markets (Benetton has over 6,000 stores across 120 countries and clocked over 2 Billion Euros in Sales in the year 2010). In India, the brand has done well in itself, thanks to its aggressive growth strategy and plans since its turnaround in 2005 under the new leadership led by its Indian division. The campaign has just gone viral and the company plans to spend over half of its less than advertising budget of 10 Million Euros  in digital media and the balance in traditional media. Like many I too wonder if this campaign will go public in the US, China, Korea and the Middle-east – the leaders of whose countries are mentioned in the said campaign. For obvious reasons, I am sure the campaign will not feature in India as well and they dare not even dream of having Indian Politicians (sic).

All said and done, it is indeed a wonderful attention-seeking opportunity for Benetton, although it is anybody’s guess if such (unwanted) publicity would necessarily translate into Sales!

Customer Service - by Trial & Error!

My only claim to understanding or appreciating an Apple product is my iPod Nano, which my buddy had gifted me 6 years ago. A 4 GB nano, I didn't know actually how to even switch it off when I first laid my hands on it. Since 2005, it has been one of my favourite companions, accompanying me in my life's journey. The voice clarity on the iPod was one of the best I've ever heard in my life - even the Nakamichi headphones that were kept for sampling CDs at Musicworld (where I started by professional career a decade ago) weren't as great in terms of audio quality and clarity as the original apple (white-colored) ear phones. Over the years, I have added so many other devices to my kitty for listening music but none like the iPod nano. So, when it stopped working abruptly, I was worried. I logged online and tried some trouble-shooting methods although none of them came in handy. And finally I heeded the advice of one such post - which was to visit the nearest Apple store! Which I did. Only to be disappointed by the approach of the staff out there! The discussion ended in less than two minutes - yes, just two minutes. The staff heard my problem, connected it in his Mac and came back to me and said that it was working perfectly well. And he glanced as though I should just move on with my old monumental piece for a new swanky one... Well, he didn't say it out loud, but I could make it.

iPod Nano

I walked off in disgust but came back to the store again, this time to propose an alternative - switch off and switch on in "Disk utility mode" which he attempted. And said that the scroller wasn't working and the only alternative would be to replace it which would cost about a hundred dollars! And again, he was referring indirectly that I give up! He also suggested to erase all the data, format the device and then I try at home, which wasn't the best route possible. But I agreed since I had all the music backed-up so I would be fine as long as the device was working well again. When I tried connecting the iPod later on my laptop, it wasn't working either. So, his "customer service" methods were just by trial and error. Try this. Oh, if that doesn't work, then try that. And so on. A day later, I installed some Microsoft updates on my system and... pronto... the iPod was working!! Strange as it may sound, the issue was not with the device at all - just that some new updates were required for it to work. And all this from a so called "Apple Support Team member". Ufff. Thank God, Steve is no more to see all this, I mumbled.

(Suggested Reading: Retail Staffing)

So, why this kind of an approach to "Customer Service"? I ain't an Apple basher nor am I a die-hard fan. I love electronic devices as they make our life easy. And they make it simpler to use them for the purposes they were intended and invented for. Unlike many other electronic products / brands, Apple doesn't have a designated service center. The Retail store also doubles up as a service center where users can bring their devices for any kind of trouble-shooting, including migration from MS to Mac.While the technically-abled are behind the scenes fiddling with the devices, the young boys ( and girls) who attend to customers are not as strong in their technical skills as are expected to be. I see this issue is common across various other retail formats too. 

Apple Imagine Store, UB City, Bangalore

While I agree that the staff attitude and behavior in this case may not be intended to be the way it was, it does send wrong signals to present and potential customers. And this was the second time with me. In an earlier instance, when we had walked into the same store, the staff failed to provide us a proper demo of the iPhone 4, which led us to change our mind to another store and eventually, Samsung (Galaxy S4) benefited, I would say! The staff were already profiling their customers (mentally) even before knowing the intended reason for their visit. Too bad. This is common across many other premium and luxury brands. For example, If a customer asks for the price of a product at an upmarket watch retail store, then the staff begin to think that he/she is merely there to appreciate the product and not necessarily buy them. At a premium apparel store in Bangalore which houses many brands such as Versace, Armani, Boss and so on, the sales manager doesn't walk up and greet customers whom she thinks may have come window-shopping. The higher the value of the product, the lower is the importance given to visitors and potential customers. 

(Suggested Reading: Luxury Retailing in India)

Retail Staff, who start their careers in the front-end at the beginning of their careers slowly make headway to higher roles and positions and during the course of this journey, forget the basics, at times. Retail Training Managers and the Business Management also fail to train their staff to keep them competent all the time. Unfortunately, Customer Service has become, as I mentioned earlier, by Trial and Error many times! And all this in the country which chants "Athithi Devo Bhava", a sanskrit slogan which means to say guests should be treated like god. Pity the Guests. Amen! 

(Suggested Reading: Customer Service)

Selling, Upselling and Unselling

Despite my request thrice, the staff of India’s first class airline forgot to sell me sandwiches and muffin, my first and most important meal of the day – Breakfast, while I was flying from Bangalore to Delhi (on work) last week. My first request was placed around 25 minutes after take-off, and I waved at her two times thereafter, but to my dismay and surprise, she seemed to have forgotten till the flight landed… And it was a 2.5 hour flight! Was it pure negligence or arrogance or forgetfulness – I don’t know, but for sure, a lost opportunity. What I may, if allowed can call “unselling”. In our (Retail) business, a lost consumption opportunity can never be recovered. After all, a breakfast meal (to the same person) cannot be served for lunch or dinner! On a quick calculation, I was stunned to note the business opportunity of selling on board – if, for example, an airline flies 100 flights a day, with an average of 100 pax per flight, and a 25% conversion @ Rs. 120 per person, it amounts to Rs. 3 lakhs per day or Rs. 100 crore per annum in topline! Well – that’s the potential opportunity and it all depends on how best the airline staff are able to sell. However, what the airline then needs are not air hosts and hostesses but air- salesmen and saleswomen! but why not? The airlines haven’t yet spotted this as an important opportunity (I Guess so, lest she would have sold my muffin!) and I am sure this is one market that F&B players cannot and shouldn’t miss. With minimum dwell time at airports (time spent between security checks and boarding), and with a healthy >25% conversion of pax at F&B outlets across Indian airport terminals, I wonder why this opportunity cannot be real. It is, indeed.

(Suggested Reading: Travel Retail and Luxury Retail at Airports)

Over the last weekend, India’s most consumed newspaper Times of India carried 20-30 page supplements across all major cities, most of which were advertisements by Retailers and Brands wooing shoppers to choose their respective locations and products while shopping this Diwali. Prominent advertisers included large retailers such as The Future Group (Pantaloons, Big Bazaar, Food Bazaar, Central Malls, EZone, Home Town), Shoppers Stop, Lifestyle, Croma, Reliance Retail, etc. What was interesting was most Retailers were promoting “bill value” based promotions – a clear tactic to entice shoppers to spend a little extra – what we popularly call as “Upselling”. This could be on and off the ground – while advertisements promote the idea, it is the sales’ staff who finally “close the sale’ and hence are the messengers by the Retailers to convince shoppers to spend more. Unsurprisingly, sales grew between 25% – 45% across various Retail stores. Electronics and Furniture took centre stage this time (specifically for promotions) while apparel and accessories including Jewellery, Watches, etc. were assumed to be sure-shot purchases for the festive season.

(Suggested Reading: Consumer Driven)

Upselling is an art, taught and trained to Retail staff right from the time they join in their roles and all through their career. It’s a bit like negotiation, pushing customers to buy more. While this is expected of every staff towards every customer who walks into the store, it is emphasized especially during festive times to increase the bill values – the amount spent by a customer on his / her shopping bill.

 

Gift Vouchers

While “gifts” of a certain perceived value are given away if the customer achieves a certain amount of bill, other tactics have also been used over time – gift vouchers being the most common one. The advantage with gift vouchers is that the shopper has to return back to the store once again and encash it or utilize the voucher for part-payment and that too, within a certain time frame. The average amount spent over and above the value of Gift Vouchers ranges between 20-35% and goes up to 70% in some cases. They are also transferable, and can hence be passed on to loved ones. This festive season, Reliance Trends is providing coupons worth Rs. 3,000 for a shopping value of the same amount.

(Suggested Reading: Gift Vouchers)

By-Products

This is a smart tactic used, especially in the Electronics business. While a battery charger and headphones are in-built with the original packaging (in most cases), the retailer or the brand could throw in an additional accessory, say a screen guard or a Bluetooth ™ headset along with a mobile phone! Instead of providing a cheap one, Samsung upsells with a Samsung Bluetooth™ headset for just Rs. 500 (MRP Rs. 899) at select retail stores including at Ezone and 50% off on other accessories for its Galaxy Tablet. Great way to engage shoppers to spend more!

Buy One Get One

An age-old tactic to upsell, this is the most common (yet boring) phenomenon one can find. Giordano offers another wrist watch when you buy one! Works well for couples who want a new one for themselves but the designs may be limited. However, it also works as a worthy gift. Last year, I bought an Esprit ladies watch as a gift and I got myself a fabric-strap sporty watch from Puma which I use while cycling. Needless to say, one can always find utilities how to use the free product.

Scratch and win!

Some Retailers offer a promotion scheme where every shopper who attains a certain bill value gets to scratch a card (or crush a fortune cookie) and wins a gift as mentioned in it. The gifts may range from gift vouchers to small home utensils to accessories or even a motor bike or a car or a house! The excitement in this case is pretty high, with each shopper hoping to win something big. Atleast, there is no disappointment that one didn’t get the big fish! SPAR, world’s largest F&B Retailer is offering a similar proposition to enable more shoppers to buy more!

(Suggested Reading: National Shopping Day!)

Shop and win!

Central Malls, India’s largest Mall chain is offering a Toyota Etios (car) and a Harley Davidson (Motorbike) to be won when you shop and participate in a lucky draw! By far, the most exciting, tried-and-tested promotion globally to attract shoppers. An average middle class shopper, irrespective of whether he / she owns a car or a bike (no matter how many) wouldn’t decline an offer to own one more, especially if it is free of cost. The only catch – the winner has to pay road taxes and insurance, which may cost a few thousands. However, this sort of promotion, a raffle to say is among the ones that excite shoppers the most. Airports worldwide, including Singapore, Dubai, Heathrow, Frankfurt etc., offer luxury and high-end cars to be won for a few bucks that is spent at their airport shops. No matter, what – people buy! And buy more, and in this case, upselling just works.

(Also Read: Central Realigns the City!)

Diwali is gone, but the offers are still on! Festivals would come and go buy upselling continues. Retailers must spend a lot of time encouraging their staff to upsell, rather to talk to potential customers, to begin with. These days, many shop assistants feel they are paid to stand (there are well-dressed mannequins already) and usually talk with each other but move to a corner when a shopper walks by. Store Managers would do well for themselves if they lead by example. I have done so, many years back encouraging shoppers to buy bread when they come to buy their morning milk, to try a new range of ketchup when they are looking for noodles at Foodworld.

It’s possible. Just needs a bit of push. By each of us! Happy Selling… errr… Upselling…

Airports, A/c and Retail Opportunities

 

I came across an article recently on Times of India according to which Airports Authority of India (AAI) plans to turn-off air-conditioning in certain parts of the airports to reduce its expenses. “Our model for low-cost airports is based on a good low-cost carrier where people will get good, cost-efficient services. AC is the single biggest cost factor in airports. We are examining models to cut down the need for air-conditioning in the tier III airports that will come up,” said a senior official of AAI. Hubli in Karnataka will prove to be the first test case for this new phenomenon. The AAI is building an airport in Hubli for which the terminal cost has been pegged at Rs 60 crore (USD 13 Million). “We are going to further reduce this cost by shunning the fancy and shining tiles used for flooring and are looking at more areas for economy without compromising the efficiency and comfort level for flyers,” said sources. There is an increasing clamour among airlines, many of whom are struggling to survive and unable to pay hefty fees that the fancy new airports levy. Their logic: have economic airports with low charges so that flying remains affordable as high charges for ‘Taj Mahal’ kind of airports would have to be recovered in the form of higher fares from passengers.

(Suggested Reading: Airline guidelines – a boon to Retailers)

Another recent article in The Economic Times illustrates the financial performance of GMR Airports, the company that has built and manages two of the top 6 airports in India at Delhi and Hyderabad. Incidentally, Hyderabad Airport is the Number 1 among its peers according to the latest ACI Survey which grades airports across the world on passenger amenities and services. And yes, GMR neither switches off nor plans to switch of A/c. Their opportunity – non-Aeronautical Revenues which includes Retail and F&B options at the airport premises. World over, non-Aeronautical revenues account 30-50% of an airport’s revenues. Of this, Retail/F&B contributes significantly, over 70% in some cases closely followed by “Car Parking Revenues”.

In India, the focus on Non-Aero income has hardly been given importance by AAI, the erstwhile operator of the top airports in India (located at Mumbai, Delhi, Bangalore and Hyderabad which are now privatised). In the year 2006, Airport privatisation was formally passed on a Private-Public Partnership model (PPP) and Delhi, Mumbai airports were handed over by AAI to two private parties, viz., GMR and GVK to modernize the respective airports. While Mumbai is half-done (not sure which half), Delhi has a swanky new terminal, more popularly known as T3, built at a cost of over USD 2.5 billion. Over 100,000 sft of space is dedicated to Retail, F&B and other commercial areas and also boasts the largest car parking facility in town! (while compared to any other Mall or Shopping Centre). Hyderabad and Bangalore had their own greenfield (built from scratch) airports led by GMR and Zurich airports’ consortium in the year 2008.

(Also read: Privatisation of airports)

Instead of switching off A/c or using inferior quality of flooring and other amenities, AAI should rather focus more on the commercial opportunities. AAI follows the “Competitive Tender” model where the bidder with the highest bid amount qualifies to operate the said commercial locations. Needless to say, most of the branded players shun from such tenders due to inconsistency of participation. For example, a branded pizza chain cannot sell beyond their range, so does a branded formal wear Retailer! Most of the spaces that are tendered out are between 8-20 sqm (about 90 – 220 sft) for a snack bar or even a specialised category apparel / accessories store or a book store! It’s not only a business challenge to run a retail establishment within such a small area – but it doesn’t provide a good retail experience as well. This is a fundamental philosophy-flaw of AAI that needs to change. Change NOW.

If done properly, AAI can expect to garner reasonably good revenues from Non-Aero revenues. Chennai and Kolkata Airports which are being modernised by the AAI themselves will be a litmus test for Retailers. These airports are as large or larger than Bangalore & Hyderabad and the customer (Read: Passenger) is the same who is spending time and money at Delhi, Mumbai and other International airports. So, the intent to spend / opportunity to serve is already huge. With the burgeoning spends in Organized Retail even in tier II and tier III cities growing by over 35% year on year, it is no surprise that passengers in smaller airports / cities would spend on good quality products and services. HMSHost, a leading player in the F&B space at airports worldwide is now the largest player across Indian airports with significant presence at Bangalore, Hyderabad, Mumbai and more recently at AAI managed airports at Chandigarh and Lucknow. Cafe Coffee Day, India’s largest cafe chain operates over 25 locations across various airports in India.

(Also Read: A lot happened over coffee!)

So now, its up to AAI how they would want to capture the wallet-spends of its passengers! As a regular user of airports, I wouldn’t mind lesser space at the terminals (as a passenger, my dwell time is no more than 45 minutes and I am not going to play football anyway), rather prefer a comfortable environment – reasonably well maintained terminals and hygienic toilets included.

Hope – the most important word in our lives. I hope things will change. Even with AAI. Let’s see.

Malls are also parking lots!

I recently came across an article which claims that Bangalore is the most painful place when it comes to commuting and parking of vehicles! My suggestion – is to build more Malls.

IBM Global Commuter Pain survey

A new IBM survey of the daily commute in a cross-section of some of the most economically important international cities reveals a startling dichotomy: while the commute has become a lot more bearable over the past year, drivers’ complaints are going through the roof. The annual global Commuter Pain Survey, which IBM released recently, reveals that in a number of cities more people are taking public transportation rather than driving, when compared with last year’s survey. In many cities, there were big jumps in the percentage of respondents who said that roadway traffic has improved either “somewhat” or “substantially” in the past three years.

To better understand consumer attitudes around traffic congestion as the issue continues to grow around the world, IBM conducted the 2011 Commuter Pain survey. The IBM Commuter Pain Index, illustrated in this speedometer graphic, ranks the emotional and economic toll of commuting in 20 international cities. From right to left, cities are plotted from least painful starting with Montreal and gradually increase to the most painful city, Mexico City. But that’s only part of the story. In many cities, the survey recorded significant increases, when compared with last year, in the number of respondents who said that roadway traffic has increased their levels of personal stress and anger and negatively affected their performance at work or school.  “Commuting doesn’t occur in a vacuum,” said Naveen Lamba, IBM’s global intelligent transportation expert. “A person’s emotional response to the daily commute is colored by many factors – pertaining both to traffic congestion as well as to other, unrelated, issues. This year’s Global Commuter Pain survey indicates that drivers in cities around the world are much more unsettled and anxious compared with 2010.” 

According a report recently in Times of India, around 1,300 vehicles are fined everyday for illegal parking. And this is just the official number. I would assume for every ticket that is issued, atleast 5 are not! So, we can guess the number of illegal / wrong parking. Whose fault is it – to provide adequate parking spaces in a city like Bangalore, to ensure ample public transport is provided? And as users, as commuters, aren’t we as public responsible too? Well, there are no straight answers. In a growing urban metropolitan city like Bangalore, this is bound to happen. With the price of automobiles going down each year (and despite the rising petrol costs), more people are opting for personal transportation options, both for official as well as personal usage. And I wonder what relief a 3km Metro rail will bring in the short-term and even if a fifth of the city is connected, am not sure how useful it is going to be!

However, there is a simple solution through public-private partnership that can significantly reduce the pain-points – build more public car parking spaces which would also double up as Retail Destinations! Call them Malls, Shopping Centres, whatever. And we already have a great example in Garuda Mall. The land belongs to the city Corporation, the structure built by a private party which was expected to house over 2000 cars and two-wheelers. And also have some shops which would provide the revenues to maintain and manage the parking lot. And we know the result – a swanky mall with 100s of shops and restaurants including some big names such as Shoppers Stop, Westside, Louis Philippe, Benetton, etc. a full-blown food court and a six screen INOX Multiplex! Avid shoppers wait patiently outside just to just enter the mall over the weekends! Movie-goers reach the Mall 20-30 minutes before the cinema commences to ensure they watch the film from the beginning. A similar example is Mantri Mall at Malleswaram in South Bangalore

Bangalore, overall has only 10 notable Malls for a city that has a population of over 8 million people (as per the recent census). By any means, this is just not enough. World cities like New York, London, Paris, Tokyo, and even Shanghai and Beijing have a reasonably more number of Malls. And many other Retail destinations such as Hypermarkets, Neighbourhood Malls, etc. These locations, typically act as public parking spots for a particular locality during the day (since serious shoppers typically prefer late evenings or weekends). In a way, higher retail proliferation also means additional space on offer, which makes the market more competitive, such that builders and developers or Mall Management companies do not charge the Retailers exorbitantly, which in turn affects the number of stores a Retailer or a Brand operates in that market. This can be seen vividly in markets like China close by and in the US, needless to say. For example, every locality would have a Wal-Mart with hundreds of car parking lots – and it is not just for shoppers, but also for those who have work in the vicinity.  The expectation is that those who didn’t have any work in the mall may also just pop-in. And it happens many times. 

 

Infrastructure is one of the biggest challenges India is facing, and Retail Infrastructure is no better. Coupled to that, we as a society are averse to walking – which is very common to see in Japan, Singapore, Hong Kong, China, Europe and other countries. They say, that cafes and QSRs do not have parking lots (worldwide) because customers prefer to walk a bit. But not in India. Even a humble “darshini” restaurant which serves local fare would see a dozen two-wheelers parked outside its shop, mostly in a “No-Parking” area. Most of us, in the name of saving time prefer not to walk even a bit. And people also blame it on pollution, lack of pavements or walking tracks and so on.

Bangalore will see two new retail developments open its doors within the next six months. Each of them have a million square feet of Retail, F&B and Entertainment. And a couple of smaller developments are in various stages too. Together, at the moment around 5,000 cars and two-wheelers can be parked in our Malls but this expected to simply double with the new developments coming in. I assure, the next time I have to visit a place I will atleast attempt to look for a nearby mall. What about you?

Dasera – Diwali Dhamaka for Retailers

A former colleague of mine, a Swiss gentleman once quipped that everyday in India is a festival day! Well, he was right in a way, maybe not quite literally though. With so many religions and diverse cultures, indeed every day may have some form of festival in India…

This October month is one of those rare ones – that benefit Grocery Retailers, typically supermarket and hypermarket chains like Food Bazaar, Reliance, Spencer's, More, SPAR, EasyDay and others. Navaratri / Dasera, which commenced on 27th Sep continues into the first week of October and Diwali will be celebrated during the last week of the month. Typically, the monthly Grocery shopping happens once a month, usually in the last week of the month gone by or during the first week of the current month. But in this case, families would have to shop twice, and probably more quantities than usual – roughly 1.5 to 2 times the average quantities. Navaratri is celebrated in different forms and signify different things for people across the country. in Tamil Nadu, Andhra and Karnataka, families set-up dolls at home – popularly known as the “Kolu”. During this period, Goddesses Durga, Lakshmi and Saraswati are prayed and celebrated three days each. Every evening, women folk and children visit houses of neighbours and are fed with “sundal” – the nine grains, one each every day. Now – this category is shopped for extensively before the festival commences which may not be consumed so much otherwise through the year. Also, the visitors are gifted small household articles usually made of plastic and this category also sees an increase in sales during the period. Fruits, which are distributed benevolently, see a surge in price and hence consumers prefer shopping at Supermarkets and Hypermarkets for a better bargain.

In Gujarat and West Bengal, it is more a societal occasion. While Hindus celebrate it the most, people across all walks of life join into the celebrations. While “Dandiya” – an art form of dance is the most happening one in Gujarat, the Bengalis install huge “Pandals” which showcase Goddess Durga in different forms. People visit Pandals day and night and wear new clothes (in Bengal) while late evening Dandiya sessions are regular during the week. And obviously, new clothes are something that every one looks forward to! Even Western / Foreign brands (like Benetton seen below) join in the festivities by promoting themselves during this period.

Just around the corner is Diwali – the festival of lights and the biggest grosser for Retailers across categories. This festival is also celebrated in its unique way across the country. While families shop for Electronics and Gadgets, Home Furniture, Clothing and Accessories, sweets for distribution and consumption is a big hit too. Retailers and Brands have already started advertising for the ensuing Diwali as well and is expected to step up their promotions starting this weekend.

If there is one category that sees a low, it’s liquor and alcoholic beverages. People generally refrain from visiting bars / consuming such beverages due to the ensuing festivities but things are indeed changing. And hopefully, this category will support Retailers in November which is expected to be one of the lowest months  for business since there are not major festivals (duh) until the Christmas season commences. Anyway, wishing each one of you Seasons’ Greetings and of course, Happy Shopping!

Controversial Ads, Branding and Footfalls

There has been a lot of furore over the recent so called “indecent” advertisements in the mainline media by “Flying Machine” (FM), a popular denim wear brand in India for close to two decades now. The brand, which was one of the earliest entrants in the denim wear market competed with international ones such as Lee, Levis and Pepe since the late 90s and has hence maintained its position as an entry level fashion wear due to its affordable price tag and distribution reach – since it shares shelf space with other brands such as Arrow and Lee from the house of Arvind Mills. The debate is about how much indecent an ad can get and what the society would feel rather than its impact on sales! Well.

(Suggested reading: National Shopping Day)

Denim Market in India is highly unorganized – with less than 25% of all denim wear sold at Organized retail outlets such as Shoppers Stop, Lifestyle, Central Malls, MegaMart, Brand Factory, Fashion @ Big Bazaar and other exclusive brand stores. We have denim wear (bottoms) starting from as low as Rs. 200 (1 USD = Rs. 48 approx) on footpaths at Linking Road in Mumbai, Janpath in New Delhi, Commercial Street in Bangalore, etc. to over Rs. 10,000 across premium brands such as Tommy Hilfiger and Diesel and in the range of Rs. 20,000 – Rs. 40,000 across exclusive luxury brands such as Versace and Armani. Denim for long was not considered a comfortable dress to use in India due to various reasons;

• The texture/fabric was rather thick – and many thought it wasn't suitable to wear during hot and humid weather which is the case across the country for 6-9 months a year
• Washing the Denim wasn’t an easy affair since most households (in the urban areas) didn’t have Washing machines and maids would complain washing denim by hand due to its heaviness when soaked in water
• It wasn’t well accepted in the society – Colleges had banned them, Offices preferred formal attire and hence Denim was rather dedicated for a select few special occasions
• Women were not the main Target consumers, essentially because denim bottom wear couldn’t be well coordinated with other dresses in the wardrobe
• Blue and Black were the only colours mostly and the “fit” was standardised

Things have changed and how over the last decade!

The fabric has been well-treated to ensure it is light-weight and easy to wear. Also most reputed brands mix denim with cotton fabric, thus ensuring sweat is absorbed and hence making it a comfortable thing to wear all through the year. A fully automatic Washing Machine from a reputed brand that used to cost over Rs. 20,000 during the early part of the past decade is almost half the price now. Most urban households have moved away from the concept of house maids (especially for washing clothes) and now boast of semi-automatic or even fully-automatic washing machines which also dry the clothes after washing within an hour! Most colleges do not have such bans anymore, as long as the students wear decent clothing! More and more offices are moving towards smart work-wear and hence denim (especially on Fridays / Weekends) at most offices and all week across companies in the IT and ITES sectors, Ad agencies, etc. is an accepted norm. Denims are now available in various colours and women coordinate with traditional looking “Kurtis” or short-tops. To the benefit of consumers and retailers, the market has indeed evolved for good. The number of “fits” available today is exhaustive and one can really choose the best fit for oneself – mostly across brands.

(Suggested Reading: Customer Service)

So, do brands in this space still need controversial aspects to advertise, to divert attention? FM is not the only exception. During a Fashion Show last year, actor Akshay Kumar, the brand ambassador for Levi’s walked up to his wife and yester year actress Twinkle Khanna who was seated in the front row for her to open the button fly in full public view! The act was a trending video online and the photos would have been searched a zillion times! Bizarre, some quipped. What a great attention seeking tactic, many others said. “Seeking Cheap Publicity” – a few blasted. Well, no more than that.

Leading Business newspaper The Economic Times has carried an interesting article over the weekend that illustrates how internationally denim brands use controversial advertisements and other such acts especially in the print media to create attention. The big question though is “Has it increased Sales?”. the answer is a big NO. But what it does is create a flutter effect – people get talking about it and the word spreads faster these days than before, thanks to powerful social media tools such as Twitter and Facebook. For Retailers (and Brands), the most important outcome for any investment is a substantive increase in footfalls at its stores. Research has it that only 30% of men and 60% of women who enter a store undertake “product trials”, however over 80% of those who took a trial end up buying the product. And this applies all the more for Denim-wear because each fit is different and unique in its own sense. Now, do such Ads pull shoppers into the stores? No. And hence the question of “new trials” doesn’t arise. However, Ad agencies benefit enormously in the meanwhile. #justsaying

(Suggested Reading: The Levi’s way of collaboration)

I bet if such ads are a great way of brand-building, especially when the Brand is communicating to middle-class masses who neither understand nor appreciate such bold communication. It is a lot different when showcased at Fashion Weeks in London or Lisbon, Paris of New York. For now, the focus should be on creating Ads that have a pull-effect; one that attracts the eye of potential shoppers and drives them to the stores. If not anything, the Retailer’s names and contact numbers could have been a font bigger in the said Ad. If only someone is wanting more footfalls, that is.

Alcohol and Consumers

According to a recent report by World Health Organization, alcohol use results in the death of 2.5 million people annually. Nearly 4% of all deaths are related to alcohol. Most alcohol-related deaths are caused by injuries, cancer, cardiovascular diseases and liver cirrhosis. Globally, 6.2% of all male deaths are related to alcohol, compared to 1.1% of female deaths. Worldwide, 3.2 lakh young people aged 15-29 years die annually from alcohol-related causes, resulting in 9% of all deaths in that age group. Alcohol raises the risk of as many as 60 different diseases, according to a recent study in the medical journal `Lancet'. Nearly 62.5 million people in India drink alcohol with per capita consumption being around four litres per adult per year. For every six men, one woman drinks alcohol in India. Over 40% of road crashes occur in India during the night, with one-third of them being due to drunk driving. It observes that India saw a robust increase in recorded adult per capita consumption of alcohol. When it came to only drinkers, the average per capita consumption of pure alcohol of a 15-year-old and above in India between 2003-05 was 22.25 litres (23.93 litres among men and 10.35 litres among women). Nearly 62.5 million people in India drink alcohol with per capita consumption being around four litres per adult per year. For every six men, one woman drinks alcohol in India. Over 40% of road crashes occur in India during the night, with one-third of them being due to drunk driving.

Actor Imran Khan had recently announced to file a Public Interest Litigation (PIL) at the Bombay High Court challenging the State Government’s proposal to ban “alcohol consumption” under the age of 25 years according to a recent news article in Times of India. The co-petitioner is his brother-in-law Vedant Malik, 22, who wants to "espouse the cause on behalf of youth below the age of 25 years", says the PIL. The respondents are the Maharashtra government, the secretary of the department of social justice and state excise commissioner. The PIL states that the government "seeks to impinge on the right of equality and personal liberty" of the youth, who are otherwise vested with the right to vote, marry, serve in the military, drive vehicles and enter into legal contracts. The PIL informs that legal drinking ages worldwide are usually 18 to 21. Incidentally, Maharashtra's and Delhi's drinking age limit of 25 is among the highest in the world, except for Maharashtra's Wardha district, where it is 30. The PIL states that the petitioners were surprised to find that the 25 drinking age limit was actually in force since September 26, 2005, but was not being implemented. "The petitioners were therefore under the bonafide belief that the age limit to apply for a liquor permit was 21 years and not 25 years,'' the PIL says. The petitioners then read news articles saying that the Maharashtra cabinet on June 1, 2011 introduced a de-addiction policy that said the legal drinking age for hard liquor was 25 and mild beer 21. They decided to challenge the higher drinking age and asked the department of social justice and empowerment and excise commissioner for the policy. They learnt that the policy was "only at a nascent stage of discussion and yet to be implemented.

I would say this is indeed a noble move had it been done by any other person than the said actor who played the role of an urban youth in his recent movie “Delhi Belly”, which was produced by his uncle and ace actor Aamir Khan. In the film, the actor and crew have professed and performed some of the most vulgar acts (some really meant only within closed doors) which even couples in their 30s (without their children) couldn’t fathom watching at the cinema! The fraternity and junta laughed off the whole episode, claimed and hailed the actor-uncle duo to have taken Indian cinema to global echelons! Neither the saffron brigade nor any mullah condemned or took them to the roads or to the court; no women’s panel took notice of such derogatory remarks in the film. A song featuring “chaste Delhi / national abuse” was reformulated in the soundtrack which went on to become a Chartbuster. Indeed, there was some criticism, but Aamir Khan himself appeared on Tv to justify this and said it was just a song, just a movie! And Hyundai Motor Corp. whose brand ambassador happens to be Shah Rukh Khan (apparently the two Khans are considered arch rivals and do not see eye-to-eye ) announced that it would sue the movie-makers due to a dialogue spelled in the film, where a modified “Hyundai Santro” is abused with the choicest derogatory words which goes “this looks like the outcome if a donkey had f****d a rickshaw!” The film grossed over INR 20 Crores during the opening weekend and was declared a super-hit at the Box-Office, an important attribute to commercial success!

Look who’s talking about social causes! And in a recent interview in Times of India, the actor says he is supporting the freedom of choice! Well, we live in a democratic set-up and each one of us is free to propose our likings and wishes. But a youth icon such as Imran Khan standing up for a frivolous cause such as this is rather disappointing.

As consumers, we all have the right to choose what we want to buy and consume. In fact retailers like Spencer’s, Hypercity, SPAR, More, Total, star Bazaar and many more have separate sections within their stores that are dedicated to alcohol. At Airports, Duty Free Liquor and Tobacco is one of the fastest selling items. I remember way back in 2001, Spencer's stores in Chennai city would sell alcoholic beverages within a distant corner of the store, or rather abutting the main supermarket. Liquor was not part of monthly shopping baskets earlier, which has changed dramatically over the years. The typical 365 litre refrigerators have given way to larger capacity ones, thanks to the increasing consumption patterns of consumers. Today, there is a specific place allotted for wine, beer, soda and other beverages within the cooling equipment. Consumers have evolved and know what to drink and when to drink. most boutique Restaurants that have opened recently have liquor permits and serve alcohol (no one really checks the age). Even Pizza Hut started serving wine at some of its outlets which was later withdrawn due to poor response. While every one talks about “legal drinking age”, it is not implemented in its spirit.

The issue arises when unwanted propaganda such as this is promulgated. When the Government issued such a notice (in Maharashtra), not a single liquor company or a Retailer came forward with such a PIL. For obvious reasons. No one wants to be known supporting alcoholism. But the way the actor has done this doesn’t merit anyone other than him with some additional publicity which I am sure he could do without. Even if he had filed it as a “consumer”, his agency could have remained silent about it. (I am not even bringing his religion into the picture as this blog is not meant for discussing such purposes).

Consumers today are well aware of their rights with permissible laws (and outside). They are learned, educated and know what is really good for them and their families. Whether the PIL is granted or rejected or not, alcoholism is a peril that will continue to daunt the society unless managed well (by each one of us) with personal and social responsibility.

Cheers to Consumers.

Luxury Retailing in India

 

Last week was a fascinating one to the world of Travel Retail and Luxury Retail. One of the world’s most coveted luxury brands, Louis Vuitton from the house of Moet Hennessey Louis Vuitton (LVMH) finally debuted at Incheon Airport in Korea (which has also been ranked the number 1 airport in the world in passenger satisfaction by ACI International) amid much fanfare and excitement according to the first online update from The Moodie Report. Korea, which is famous for its “cheaper” alternatives in electronic products and automobiles (led by Hyundai) was the obvious choice for the cult brand since it is the most preferred transit destination between Mainland China, Japan and Korea and the rest of the world. Louis Vuitton was also ranked the number one luxury retail fashion brand (behind Hermes, Gucci, Chanel and Cartier) by the media house “My Retail Media” recently. LV, as it is popularly known, is most famous for its accessories & luggage (which ranges between USD 500 – 5,000) and is one of the last brands in the “Luxury” segment to enter the glamorous world of Travel Retail. Such is the potential of passengers travelling through airports!

(Suggested Reading: Travel Retail)

When LV entered the city of Bangalore in India (2008), it had installed a huge trunk outside the terminal building of Bangalore International Airport (BIAL), a first of its kind in the country but one which the brand does quite frequently across the world. Apart from this, LV operates at Delhi and Mumbai and is looking forward to expanding across other Indian cities in times to come. Hermes opened its first outlet in Pune this year, which was later followed by its flagship store at Mumbai. The beauty of this location is that it opened its store where the distance from / to Mumbai is ‘0’km (zero km)! Other luxury brands such as Gucci, Chanel, Cartier, Rolex, D&G, Armani, Hugo Boss, Omega, etc. have their standalone stores at Mumbai, Delhi and Bangalore. Although, the offtake is not as expected, according to market reports. There was even a recent article online in which the writer claims that the “Indian Luxury” market is a not as successful citing examples of how Nita Ambani (wife of Mukesh Ambani, one of the world’s top billionaires and the Chairman of Reliance Industries) shopped her porcelain from nearby Sri Lanka for their new billion dollar home! Indeed, Gucci, Prada and their ilk in Luxury Retail have not taken off the same way in India (estimated at less than USD 1 billion compared to that of USD 17 billion in China) but I wonder if that’s just the measure.

(Read: World’s cheapest car and its possible impact on Retailers)

The article also quotes the number of dollar millionaires – I guess, the methodology in itself is flawed. There is probably more “black money” in India than in white, hence it is not the best way to assess the wealth of native Indians. Mercedes Benz, the oldest German luxury automobile in India along with with its country counter parts Audi and BMW sold over 2,500 cars last year (at an average price of USD 100,000). Property Developers such as DLF, Prestige, Sobha and many more are developing high-end customised villas that range from INR 2 Crores to 5 Crores (USD 500,000 onwards). A typical Indian middle class family spends between USD 20,000 – 50,000 – something that’s unheard of in the Western world where Church weddings do not accommodate more than a 100 people while the big fat Indian weddings feed over a thousand people, twice a day, for 3-7 days! If western wear and accessories are any measure to say that Luxury Retail in India hasn’t take off, that’s right. But then, the Indian shopper doesn’t consider Western wear for day today use and hence their usability is restricted. The article claims that even an entry level secretary in Japan or China would sport a LV bag (it doesn’t mention if original) which is not the case in India. (But they do sport gold jewellery which is not considered…). High end electronic gadgets are favourites with the working middle class including the iPod, the iPhone the iPad and a wide range of mobile phones and related accessories.

I wonder why “Luxury Retail” in India is always connected with western apparel and accessories. Women do not sport western wear to work everyday! And the reason is simple – an average Indian (women) is more comfortable in her Indian clothing. The climatic condition is more conducive for comfortable dressing and hence their preference. Would this change in the next 20 years, yes. Would it match the world markets? No. I can assure that this market will never be the same in size as what it is in Japan or China, forget Europe or the US. Indian women and the society at large are indeed embracing western wear in a big way, especially for formal occasions at workplace. Even for holidays and other occasions. However, the appreciation for high-end Luxury remains lukewarm since the reasons to wear (other clothing) is far more. Cufflinks are famous all over the world to match blazers, jackets or suits. But a majority of people in the working class do not wear a full-sleeve shirt to work, forget other accessories! And the reason is that the Indian weather conditions do not permit wearing a heavy suit all day at work. Two thirds of the working class still commute in public transport (Metros / A/c buses) and two-wheelers and hence prefer an easy attire than the complicated ones. This is one reason why “wrinkle-free” shirts and trousers are a big draw in the country.

(Also Read: Luxury Retail at Airports)

But no one bothers to compare the gold consumption in India – the most coveted precious metal with the rest of the world. Some one from the Jewellery industry told me recently that if all the gold in Indian houses is collected and offered in the world market, the price of it would be cheaper than that of copper! Really. That’s the amount of gold that is collected and retained in India. For Indians, gold (Swarna, as in Goddess Lakshmi) is bought for various reasons – as traditional jewellery, as savings for future, as a means to display wealth and so on. A former minister from the state of Karnataka who was recently arrested and jailed apparently had a gold-plated chair and even cutlery / crockery for dining at his home according to press reports when the CBI raided his house!

I am sure that the Luxury Market as opined by experts will indeed grow - Coupled with better Retail Infrastructure and Government taxation norms. Soon, one can expect an LV at an Indian airport too. You never know. It’s just a matter of time.

Moving on… a lot happened over coffee! (Also my 100th column!)

I complete two years next month in my current role at Cafe Coffee Day, the largest cafe chain in India, third largest in Asia and fifth largest in the world. As General Manager – Business Development, I have been responsible for scaling up the cafe strength among Key Accounts spread across the country within various verticals such as Transit Hubs (Airports, Metros, Railways, etc.), Retail establishments (Department Stores, Hypermarkets, Book stores, etc.), Premium Institutions (Hotels, Hospitals, Educational Institutions, etc.) and Corporate locations (Offices, IT Parks, SEZs, etc.). With an able team working along with me coupled with excellent support from my Seniors, Peers and co-workers, we have managed to sign-up a number of cafes during this period. For me it’s a proud personal accomplishment that I have been part of some of the most exciting moments for the company and for the Indian Retail Industry which I shall cherish all my life.

Indeed, a lot happened over coffee!

With a heavy heart and after a careful thought process, I have decided to move on. The two year stint at CCD would possibly be the fastest period in my professional career – travelling three days a week, thrice a month across the country! Red-eye flights, multi city travel in a single day by air and road, delayed and missed flights; lounge vouchers, et al. Have enjoyed every moment during my tenure and as our famous slogan goes rightly – truly “savoury moments”. From Wagah border (in Punjab – the Indo-Pak border) to Kanyakumari (in Tamil Nadu, the tip of the country’s geography with rich history – the Peninsula), I’ve had the privilege to travel across the country and see its vastness, while also strategizing the impending business development prospects and opportunities.

These were happy times which I shall miss a lot.

Also, this is my 100th column! Wow. It’s been a special journey, “My Retail Journey” over the last ten years in the Indian Retail Industry and close to three years in the “Retail Blogosphere”. My blog has been viewed over 25,000 times during this period sans any advertising! Feel honoured and also humbled. Appreciate the encouragement and support shown by the readers and your continued patronage encourages me to post meaningful columns with retail insights that can be points of discussions! I was pleasantly surprised when someone recognised me at an “airport bus” – while ferrying from the aircraft to the terminal building; he said that he had read my various blogs which were crucial in clearing his job interview at a marquee Retail company in India! Was truly flattered and assured to myself that each and every blog that I write should add some bit of value to its readers. While many do not post comments below, these are discussed during my regular interactions with them in person or otherwise.

Thanks a lot, folks and I assure to keep writing nothing but the best in times to come.

Is Online Sales all about Discounts?

Early this week, I received a mailer on my inbox – that screamed a 51% Discount – just that I was confused if it was at their physical stores or on their website. While Shoppers Stop’s online avatar has been around for over three years now, all of a sudden there seems to be a high decibel discounts’ driven campaign. Not just this retailer which is India’s largest with over 40 stores across 20 cities and attracts over 5 million customers every year, but a quick look at most of the online e-tailers confirms that they have all been offering rather steep discounts of 30-70% on their  offering. Rather, the assumption is that higher discounts would attract more shoppers. In my opinion, this is a rather disastrous move. And here are my observations;

Pricing and Discounts

Most of the online retailers (or mere web companies) do not have the background of traditional retailers. If predatory pricing was the best way to attract shoppers, then the whole world would only have Discount Retailers selling everything on discounts all through the year! But this is not the case. Discounts  are a way of getting rid of older stocks and also a way to attract new shoppers into the stores (or websites). While this “P” can be played with once in a while, it is dangerous to keep it as a hook all the time. There should be a stronger reason for shoppers to shop online, than just discounts and price-offs. 

Image Courtesy: shopperstop.com

Merchandise offering

It’s myth that online retailers and their ilk propose a wider range of products (Read: Depth of categories and the number of SKUs) than physical stores – this is more a proposition than reality. By showcasing a wider range, the e-tailers are committing to the fact that they have a wider range, which more often than not is not the reality. I was looking for a famous auto-bio of a Retail business leader a few days ago for gifting my classmate. Since there wasn’t a “Crossword” or a “Odyssey” book store close to where I stay, I preferred to shop online. Tough luck. One e-tailer didn’t have the stock; another had it but would take 7-10 days to deliver; and yet another showed a “http syntax error!”. I gave up on my search and proceeded to the closest store to buy it. A famous fashion e-tailer who sends exciting emailers everyday had a bigger surprise in store. Most of the products they had advertised was out of stock! Insult to injury is that no one (internally) had even bothered to remove the images or those products temporarily (if stocks were awaited) or permanently if the stock wouldn’t return. On the section which boasts “Luxury Lounge”, there is a sleek note which says that the sales would return and the user would be informed. Bizarre!

Image Courtesy: fashionandyou.com

In my humble opinion, Online shopping is, and should be an experience. Let’s not forget that India has over 12 million retailers – across various formats and sizes, though mostly unorganized while the Organized Retailers contribute for less than 10% of the estimated business size of INR 200,000 Crores. Online Retail is a single-digit contribution to this, but is expected to reach a significant number over the next five years. If a potential consumer has to shop online, here are a few points why they would;

Convenience

First and foremost, its the convenience of shopping online from a preferred device – it could be a desktop, laptop, tablet, mobile phone, etc. The entire process should be quick and efficient. Although most e-tailers insist on the customer to create a user log-in, the transaction time and check-out should be faster, ideally lesser than the 2-3 minutes it takes at a physical store. Also, the web-pages should have limited graphics and high-end visuals – while the idea could be to present the site in a glamorous way, let’s not forget the dismal internet speed (could be worse if its on GPRS or even 3G) unless the user is using high bandwidth Broadband services. Therefore, simple JPEGs could be a better idea.

Ambience

The good-old grid layout is so boring! Almost all e-tailers are using this format because the most recent entrant used it. If physical stores could have various shapes and sizes, colours and backgrounds, then why not online? In fact online e-tailers could do even better since they have the opportunity to change as often as possible, usually at minimal or no cost. While the usual moments of truth that a customer experiences at the physical store cannot be provided online, what can be offered is the simplicity in approach. There are different ways of doing it, and it’s up to the company to decide depending on their user base.

Depth Vs. Width

A raging debate, even for offline Retailers, its quite tricky which is better. To have, say for example – 50 brands of shirts with fewer stock options or just 5 brands but will all options (including colour and size). Again, there is no correct way – just that the retailer need to position itself accordingly to attract relevant audience and footfalls (should we say fingerfalls!). Similar to various kinds of “offline shoppers”, online shoppers too would choose their preferred retailers accordingly.

Image Courtesy: shopping.indiatimes.com

Customer Service

This point is, in my opinion more important online than anything else. Reason: In physical retail, the customer sees a person, interacts with him or her and there is a “touch and feel” during the entire transaction. In this case, there is none. Even after the payments are done, there is no assurance that the product would be delivered safely and on time as was promised. Most importantly, in case of a query, there should be someone whom the Customer should be able to reach out to. This is of utmost importance. If the “web” doesn’t have day or night, if the “internet” world never sleeps, then how can a Call Centre (of the online Retailer) work selectively?

On-time Delivery

This is one major area that most e-tailers are focussing on, apparently. And quite obviously. Unlike a physical retail store where the customer not just gets to see the product while buying, but also gets to carry it themselves, in this case, there is a wait time – from 1 working day leading up to a week or maybe more. And when the product arrives at the doorstep, it’s all about packaging and safe-delivery. It would be better to have a reasonable shipping time, rather than delay the delivery time. But having said that, it is important to stick to timelines and be reasonable about it. To take a week to ship a Book is not done! However, it’s better to “Under Promise, Over Deliver”.

Payment & Security

I was reading recently that most shoppers are more comfortable to shop when there is a trusted gateway. Indeed. Frauds can happen more often offline than on the Net – we have recently come across cases where ATM Debit cards have been masked in Mumbai, waiters photo copying Credit cards and CVV number to use them later on, etc. So, the risk element exists and this is a reality. Online Retailers should have comforting information about online security policies and may even want to have an Insurance Company to be roped in – after all, what a better product to sell online!

At the end of it, “Price” is not just the one factor that the shopper is looking forward to, while shopping online. It’s a wholesome experience. From a transactional activity to an experiential activity, it’s going to take some effort and time for e-tailers to entice shoppers to be active online. But I am sure, this would happen sooner than later. Watch this space.

Music Launches and footfalls!

Photo courtesy: krishmall.blogspot.com

One of the biggest blockbusters in tamil cinema, “Mankatha” featuring Ajith Kumar and Trisha Krishnan is expected to release shortly. The movie which is the 50th film of the ace actor and a landmark accomplishment has been under production for over a year now, and is expected to be no less a thriller with the actor playing a dark role (something that's unusual in commercial cinema). The same actors previous movie “Asal” (which was basking under the glory of the previous super hit release “Billa”) was a damp squib despite the hype that was generated before the film’s release. However, the crew has done an excellent job this time around and has kept the curiosity high over the past few months. It was the first time that a “single” – one song in the film’s soundtrack (which also happens to be the title track) was released three months ago. Something that’s not a done thing otherwise. The CD was priced at Rs. 55 (a little over 1 USD), comprised of a personally autographed poster by the actor and also included other hits of the same music Director Yuvan Shankar Raja, son of Music Maestro Illayaraja. A few days ago, the latest CD including 6 songs and a remix version of the title track was released for a magic price of Rs. 99/- Needless to say, the album has been dominating the list of Chartbusters for the past 2 weeks. And just now, another version of the CD priced at Rs. 149/- is out on the stands – the CD includes a sticker of the game based on which the film is named. Once the film release, the sales of audio CDs is expected to surge once again. The official trailer was released a few days back and needless to say, it looks “chic” to say the least.

Mankatha–Official Trailer, courtesy youtube.com

The first project that I undertook as a Management Trainee after joining Musicworld at Kolkata a decade ago was to measure the impact of Airplay, if any. While the results were indeed exciting, what was more intriguing me was the expectation of sales staff of an upcoming Sales surge. And the reason – Amitabh Bacchhan, Shah Rukh Khan multi-starrer “Kabhi kushi Kabhie gham” was about to be released shortly. So? I wondered. The staff who had been working in the business for a few years before I joined explained how the launch of the music album would increase footfalls by two-three fold and hence, purchases across other categories would increase. You must be kidding, I felt. But they were right. After all, the love of Bengalis to the Big B, also endeared collectively as the regions’ son-in-law is extremely touching. On the first day of the music launch, the store sold over 300 cassettes and 100 CDs while the footfalls simply doubled – in my opinion, that was a miracle! SONY Music had timed it well, just around the weekend which ensured the store achieved its target by by more than 100%. And many new shoppers walked into the store for the first time, and a few were even imagining it to a notional store like how it would be in London, Paris or New York. But the good thing was many of them repeated their visits over the ensuing months. And spent more money thereafter. Upgraded from Cassettes to CDs. Even today, this particular store attracts one of the most number of footfalls as a standalone music store anywhere in India! Proud to have been part of this iconic store. To my surprise, I personally experienced the illustration above. And when I walked out of the Musicworld store – this time on MG Road, Kochi after buying the “Mankatha” audio CD, I was smiling – thinking about the power of such launches. And how they drive footfalls and how such footfalls spend more than what they walked into the store for! Four times, in my case.

Photo Courtesy: Cinebuzz.in

With digital music all over the place, do physical CDs have any shelf space worthiness at Retail stores? Of course, they do. The penetration of smart devices such as iPods and other similar personal music players, music on mobile phones and tablets etc. is still very low when compared to the spread of Music players (at home). Also, the enjoyment of hearing music on a personal headphone or earphone cannot be comparable to the one while hearing on a Home Theatre system or even in a Car stereo. Needless to say, consumers are already listening to their favourite music across various gadgets, but that doesn’t mean the end of physical audio. When FM Radio was opened up a decade ago in India, the Music Industry feared severe sales arbitrage. Yes, it did some damage. But the industry didn’t get wiped out, as was expected. This market is huge, and its all about how the consumer is served, across various avenues. The good old LP Player and the iconic Sony Walkman™ took many decades to get discontinued. Audio Music Cassettes still have a market opportunity and so do Music CDs. I fear no wipe-out of these media – just that they would become far cheaper in cost, thanks to technology involved in production as well as alternative options for consumers. So, shoppers would keep coming to the stores to buy their favourite music off the shelves for a long time to come.

For now, am back to listening my favourite sound track these days. Waiting to play the game – Mankatha! In real life too, soon. More in my next.