When you mean Value!

Over the weekend, I visited the latest commercial addition in Bangalore, The Forum Value Mall at Whitefield (just a few minutes away from India’s silicon valley). Conceived over four years ago, the Value Mall was supposed to be Marathahalli (India’s largest Factory Outlet’s district) in a box! The Mall doesn’t have a common HVAC, which means that there is no air-conditioning, in the common areas, although every store is provided with individual facilities. The very thought that there wouldn’t be a common HVAC was a smart one, given the fact that the cost of electricity (and the running maintenance of equipments) forms the largest chunk of the Malls’ expenditure which in turn is passed on to the tenants as CAM (Common Area Maintenance). This was already tried by The Prestige Group who are the developers of this Mall, in their previous attempt - the EVA Mall on Brigade Road. So, it was possible to operate such a Mall in Bangalore where the weather is pleasant almost through out the year.

I remember (I used to be with Benetton those days) there was a big discussion among the Retailers’ community on the success of this model – whether shoppers would step in for such an experience. It was nice to see it live in action shoppers actually thronging this place, notwithstanding the impact of H1N1 flu (some extra-cautious ones were seen sporting masks too!). Although 80% of tenants have occupied and commenced business, some prominent ones are yet to.

The Mall is spread over 300,000 sft across four floors. MegaMart is the largest shopping anchor for the mall, while FAME Cinemas is the entertainment anchor. Tommy, Esprit*, Benetton, Nike, Reebok, Levis, Pepe, Lee, Neerus*, Bata*, Bulchee, Loot Mart, are among the other smaller outlets spread between 1,000 – 3,000 sqft. McD* (Ground Floor) and MTR* (First Floor), as F&B anchors, are expected to draw good crowds even during the weekdays. Cookieman, Daily Bread and Juice Booster, all F&B Brands again, operate on the ground floor – something that is usually unusual by Indian standards. The Transit food court with half-a-dozen operators including Subway, Pizza Corner, Mama-Mia Gelatos and other local delicacies, is already functional on the top-most floor. Two escalators next to each other in opposite directions are located at the fag end of the Mall on each level. Toilets are situated on all floors along with emergency stair cases. The most attractive element is the central Atrium spread over 10,000 sft and a sky roof – a tensile material that covers from the top such that rain water wouldn’t enter (hopefully) and would also provide natural daylight. The Atrium is also used for various promotions – temporary kiosks and as an inaugural attraction, there was some loud DJ music with other acts by artists – not surprising as this Mall is jointly operated by CapitaLand, which operates over a dozen Malls in Singapore where such things are common to see throughout the year. There is a specialty restaurant, Toscano (yes the same one at UB City) on the second floor, Sony Center, Onkyo Store, Access 2 Future (Computer peripherals and accessories), Whizz Photo Studio, Metro and Soles footwear, and even a saree and sherwani shop plus a Forex Money Changer! An entertainment zone for children is yet to open.
* The ones that are yet to be functional.

Ample parking is available (probably for over 300 cars) while the multi-level parking areas are two-ways, something that’s again uncommon in India. So drivers must be extra cautious especially when they take left-turns (that’s how the traffic is managed and a good thought again, given the fact that we are used to driving on the left). The most unexpected good thing however was “Free Parking” – probably coz the Mall is new and the Management is expecting to draw new crowds. Whichever way, it was pleasantly surprising to see that almost everything was so well organized. Great job done, once again and am sure they would keep up to their reputation – after all, the group manages the Best Mall in South India - The Forum.

Conspicuous missing includes an ATM/Bank, a Pizza Place and a Super Market. There is always a great round of debate on Super Markets at Malls – whether it would work – for the Retailer as well as for the Mall. Well, it must be remembered that the frequency of individuals and families visiting Supermarkets (in India) is about 4-6 times a month, which means that such an outlet would bring steady footfalls, even on weekdays. A Pizzeria (I mean the Dominos or Pizza Hut or the other new ones), although are present almost in every Mall are important crowd-pullers. A Bank would have also done wonders, probably facing roadside, given the fact that this is more or less a neighborhood Mall. An ATM with cheque drop boxes would have been useful for shoppers, especially the IT fraternity that spends more through plastic than paper. A 24/7 Gym would have brought in the health-conscious who reside in that area frequently to the mall! Who better knows that “Health is Wealth”.

However, one cannot ignore the uncanny choice and placement of certain Brands – how can a “Value” Mall boast of a high-end boutique restaurant, an international QSR Chain, Ice-cream and Juices that’s cost over INR 60 for a portion (and that too in prime space). The argument that shoppers would come to shop their favorite brands at lower prices and would end up at the expensive food outlets is a myth – atleast as I feel. The Value and Brand conscious consumer who walks into this Mall to buy his favorite Tommy or Esprit is not the types who would spend INR 800 for a meal for two at the Boutique Restaurant or a similar sum at the Food Court for a family of four. Not that he/she doesn’t see value in it, ofcourse the food is awesome and of high quality but he’s probably not the best target. On the other hand, those who frequent such places may not be the ones to wear discounted stuff – two or three seasons old. Now, this is something I am personally waiting to watch – how consumers perceive this model. After all, Value for me is different than what it means for you. Let’s see.

One-Way High Streets and Mall Footfalls

The front page of Times of India (Bangalore edition) today proclaimed loudly, “MG Road will be one-way for a while”. What worse news than this for Retailers in and around this area! And Economic Times (Bangalore edition) which is also owned and published by the same Bennett Coleman and Co., created headlines, quite literally, how the upcoming Mantri Mall has remained “unscathed” by global retail slump. With due regards to those who write such news items, one would agree that good research is a “MUST” before writing such articles. For starters, Mantri Mall was conceived in the year 2004/05 and leasing started even before Indian Retail hit its peak in 07/08, before coming down to realistic levels a few months ago. Most of the Retailers have been signed quite well in advance and the Mall is ready to commence operations within a few weeks time. So, the Mall space was not signed like, six weeks back! And by the way, this would be the first and only Mall (for now) to have a direct connection from the Malleswaram Metro Rail station – what a way to bring customers to the Mall. Wow.

In Mall Management, Space leasing discussions (with Retailers and Leasing companies) start almost along with Mall design and construction. As the construction proceeds in phases, Key Anchor(s) are signed up, who occupy almost 50% of the total space that’s available. And then, the smaller ones are signed up, leaving it lastly to “fillers” or last moment concepts. This is historical and usually followed all over the world. Large Retailers in India such as The Future Group, Reliance Retail, Shoppers Stop, TRENT, etc. also play “consultants” to Mall developers in terms of space and adjacency planning, provision of utilities and facilities including Mall entrances/exits and even Car parking. This helps quite a bit as the Retailers have much better experience and exposure due to their large scale operations in India and abroad, while the Mall Developer could be a budding Real Estate Company. There are only two kinds of Malls – the successful ones & the others. The first category is usually because of the unstinted support & commitment from the key Retail partners & Leasing Companies. The second category is also largely due to the same reason (pun intended!!).

Coming back to my title – the first thing that consumers would get in their mind after reading the “MG Road one-way” article is to avoid visiting/passing through MG Road/ Brigade Road over the weekend. The proposed routes are not only long, but illogical (according to me, but I am not a town-planning expert, you see) and tiresome, wasting valuable shopper time and automobile fuel. Even if it was such an important issue, the news item could have been articulated better. As it is, footfalls on MG Road have seen a sharp decline over the past year and a half, thanks to construction of Metro Rail piers. Parking was always a key concern and Retailers in the area were battling this with utmost courage. And now, a one-way comes into place.

Dashera-Diwali shopping is expected to commence in two-week’s time and this area would usually see a surge in traffic – humans as well as vehicles. This is all set to drown this year. Retailers downtown have just started to recover from the slump and were expecting the “season-shopping” to boost Sales. Unfortunately, they have to wait for a few more months, probably just ahead until Christmas.

A parking complex was not just a requirement, but a necessity in this area. The City Corporation planned this (for once) very well in advance, and commissioned a Multi-storey parking lot close to Brigade Road. However, due to “various” reasons, this parking lot ended up becoming a Mall… - The Garuda Mall. So, today most consumers think they could drive into Garuda, park their vehicles and shop within and not step into MG Road/Brigade. For those who know the charm of these areas, they would know what it means to be seen on MG & Brigade. To Shoppers. And for even those who walk, simply.

Bangalore has two large Malls, Forum and Garuda and over a dozen smaller Malls (mostly neighborhood) and other Large-format Stores. For a city of 8 million people, assume 1% of them would be those who could shop at High-streets and Malls including premium and luxury products. That’s 80,000 people. If half of them were to be seen in the busiest shopping areas together, trust me, we don’t have enough walking space, forget car parking! And many shoppers visit their locality for most household needs and avoid the ever-crowded shopping hubs.

Need of the hour are new Malls – with lots of space. Mantri would fill the gap immediately. And then the upcoming Brigade Mall. And then the Shobha. And so on. In the next five years, over 2 million sqft of Retail areas would be made available for shopping, including parking facilities for over 50,000 vehicles. By then, (hopefully), the market would have grown. The demand-supply mismatch is expected to continue atleast for the next 5-7 years, by when things would have stabilized quite a bit.

One’s loss is another’s gain, they say. MG Road’s loss should be somebody else’s gain. Sadly, not to be. We don’t have so much of Retail Space in this city, for the city-dwellers to relax, unwind, congregate, consume. Not for the time-being. Instead, many would be glued to their television sets. And many more, reading the same newspapers on weekends, increasing their readership. Such is life.

Brand Ambassadors and Brand Endorsers

Oscar Award winner AR Rahman had to grow and maintain his long locks for five years during his association with Sony Music in the late 90’s. The boys, men and uncles of the Indian Cricket team must wear formal clothing only from Pantaloons during their official public engagements. Shah Rukh must wear only a Tag Heuer (even as a local tapori in the movie DON) and Abhishek must use only a Motorola mobile outside his home. No one knows if Big B Amitabh Bachhan actually drinks only Pepsi at home and munches Cadbury chocolates with his grand children and if Sachin drinks only Boost to build his energy levels. Superstar Rajnikanth has endorsed only one campaign – The Polio Immunization in the early 90’s and never supported any particular Brand ever. Apparently, he doesn’t use a mobile phone and a telecom operator’s connection in his own name because he doesn’t appreciate the fact that they may consider his usage as an endorsement!

According to a recent study by Sunday ET-Synovate, the most popular Brand Ambassador in India is the King of Bollywood, Shah Rukh Khan followed by ace cricketer – The Little Master, Sachin Tendulkar. While Khan earns over Eight Crores (USD Two Million) a year, Sachin earns about half of that; quite a lot of money by Indian standards. Not surprising for a movie and cricket crazy country like ours. A number of actors and sportspersons endorse products and services that are required for day-to-day living, many of which are discretionary purchases. The earliest acts were for “Lux” body soaps by erstwhile Bollywood actresses in the 80’s and that of the former cricketer Sunil Gavaskar who appeared for a TV Ad in the 90’s for “Dinesh” suitings. The soaps matched the complexion of the actresses and the formal attire matched the cricketer’s profile – a gentlemanly appearance but a terror on the field. By the late 90s, as many as 50 products were already being endorsed by as many or more personalities!

Actress Madhuri Dixit for Lux and Preity Zinta for Liril, the public noticed Aishwarya Rai, former Miss World, budding actress and future Bollywood queen Rani Mukherjee and the most versatile actor Amir Khan when they appeared together for a Cola Ad. Later on, Pepsi and Coke roped in over a dozen actors and sportspersons from time to time, so did Titan (watches) and many automobile manufacturers. So much so, that most actors are obliged to show (off) their brands even in their movies while sports persons are expected to carry the Brands in public.

However, in the history of Indian advertising, I believe there would be more examples of “ordinary people - aam admi” endorsing Brands than celebrities. Some of such Brands and products have more market share even today, than their competitors who pay hefty fees for their stars. For Ex., Raymond Suiting’s, more famous for its ad jingle than anyone else in its segment, has never used strong celebrities, when compared to Reid & Taylor (BIG B, Amitabh Bachan) and Belmonte (Shah Rukh Khan). Washing Powder Nirma and Surf used and continue to use home-makers and mothers to demonstrate the power of the detergents. So did Glucon-D and Crocin, both medications for daily use for general health care and common ailments respectively. Complan, a premium health drink showed young siblings proudly screaming “I am a Complan boy, I am a Complan girl”. Bajaj Scooters and Luna Mopeds were more popular because they were being shown as used by common people. Bajaj Electricals emphasized on the quality of their bulbs using common households.

The first Indian Retailer to use a celebrity for endorsing the business is The Future Group in the year 2008 when MS Dhoni, presently the captain of the Indian Cricket Team was roped in specifically as a face of “Big Bazaar Fashion” – a vertical that’s most popular among the fastest growing Indian middle-class.

But there is a reason that most Indian Brands and Retailers don’t need an ambassador, rather an endorser. Over 60% of India (largely rural) doesn’t have access to popular media such as TV & Radio while over 30% of India cannot read (newspapers or magazines). What works with this segment is word of mouth popularity and performance of the Brand/Product. Even in the urban areas, I wonder how many including me and you would buy certain Brands because they are endorsed by our favorite actors and sportsmen. For sure, I wouldn’t buy Tag Heuer because Shah Rukh sports one – I just don’t like the collections at the entry level which I can probably afford while the Korean cars that I have are not just because my favorite actor endorses them.

Brands and Retailers should rather focus on the promise for what the product stands for. It would be worth investing the monies on the buyers – the consumers, as they would automatically turn endorsers, vouching for the consistency of the quality of the products and over a period of time, would become Brand Ambassadors. For a nation of a billion people, a million ambassadors is all is needed – for every aspiring Brand to survive in the long run.

Coins and Consumption!

There is something very close to coins and consumption – the ubiquitous small round ones that could buy many things in this country. “Annas” moved away from the system before I was born, but I still remember seeing and using the aluminum 5 paise and 10 paise coins – have actually bought toffees outside my National English School in the erstwhile Madras! And then there were the 10, 25, 50 paise and Re. 1 coins. A lot could happen with this One Rupee Coin those days, and probably even now. In the ‘90s, telecom companies used this opportunity very well – to urge people to make calls from the PCOs – Re.1 for a three minute call... One could see the colorful “weighing machines” in public places – for a coin, a one rupee coin, you could check your weight and the weighing slip would have a nice message on its reverse! And then the Confectionary companies used them so well too – chocolates, toffees and bubble gums and more for just Re. 1. A lesser known South Indian company launched “Halo” Shampoo sachets, for just Re. 1. And then the world biggies in India followed suit. Rest is history, that sachets were part of mainline production for most Indian and International FMCG companies in India. A Rupee was almost the bare minimum, whether it was given to someone seeking alms or to the Almighty inside places of worship.

By the late ‘90s, this was slowly being replaced by the Two Rupee coins. Not for too long, as they were soon replaced with the new Rs. 5 coins in the new millennium. The economy was growing well, people were earning more than in the previous decade and there was basically more money in the system – more coins under circulation. Product manufacturers started to market their products around this price. The most memorable one was the famous Bollywood Khan endorsing a Cola and emphasizing on “Paanch” meaning, Five in Hindi. Needless to say, competition and complementary products followed suit. From confectionary to tooth paste sachets, from magazines to chips. Nestlé’s MAGGI, the most popular ready to cook noodle brand in India has been selling its smallest SKU for just Rs. 5, for many years now; only the quantity inside has been steadily reducing. Tea and Coffee at Fast food joints, including a plate of Idly or Vada Pav were following suit and so were telecom companies – this time around, placing ISD call rates at Rs.5 per minute!

Today, a five rupee coin is almost the same as a one rupee coin was 15 years ago! Almost everyone carries this around. While getting air filled for car tyres, people were shy of asking for return change and would thereby give a five rupees coin! I used to wonder, if this small boy who was filling air at the fuel stations was servicing 100 cars a day, that’s a lot of money!! To save and spend, of course.

Am sure many of you would have heard that there is a new Rs. 10 coin under circulation for some time now. I saw one today. Looks nice. Couldn’t dissect in detail; neither am I a metallurgist nor a numismatic. But was just wondering what the new Rs. 10 coin could do. Where would this lead to, say, five years from now. I would like to call this basic denomination as “easy currency” – something that doesn’t pinch while you spend, easy to carry and gets good value for the money spent. Let’s see what all this coin could do to Retailers – with the same examples as above.

Chocolates, could well go up the ladder in pricing, to the new “easy currency”. Keep more of the Dairy Milk and Kit-Kat near the cash tills and see them flying off the shelves. Chips and Wafers, that are already priced at this level, would see more throughput, especially nears schools and colleges – kids and adolescents would probably pick them up more than before. A host of other easy to consume products, from ice cream to jams, from tooth brushes to soaps, could be priced at this point. Easy Currency reigns.

The most famous and freshest natural beverage found in India, the Tender Coconut, will fit very well at this price point. Higher sales for this hawker; he gets to sell more than before and his family earns more than before. Milk, that’s currently priced between Rs. 6.50 and Rs. 8.00 per 500 ml would sooner than later move into this price point. And so would be the smallest SKUs of Cola companies. Ready to eat curd and tetra pack juices would see higher sales as people would see one coin per person. Intra-city transport companies (Buses and Metros) would have their fares in multiples of Five, thereby Rs. 10 being the average for city travel. Examples abound.

If making people consume more than before was so easy by introducing a new denomination, that too as a coin, then why didn’t the Government contemplate this much earlier – after all, the currency note in the same denominations has been there for years! My guess is as much as yours. Its common mentality, that the thicker one’s purse is, the more secure they feel. It’s quite common to see that most people around us change their wallets only when it starts to wear off – I mean, currencies start to spill out or coins fall off. Given the case, people carry small change always handy, and that’s where the “easy currency” plays the most important role. And most often, people hate carrying them, yet they must carry. And love to get rid of them as soon as possible. Only to carry some more. And the cycle continues.

The latest ‘easy currency” could get much more than what its predecessor could get and at a greater value for money. This is sure to succeed for some time to come now. Atleast in the Metros and larger cities. That the Re. 1 and Rs. 2 coins are still valuable in the rural and upcoming places is so true. They would take some more time, but will surely come to this pedestal soon. This blog came up when I saw the new coin this afternoon at office. Just seeing, was so tempting to use it as much. After all, coins increase consumption. And am looking forward to more of this; with me and those around. And see them spending. As always that I believe, consumprtion leads to growth.

Blame it on the Bell Boy!

It’s quite interesting for me to discuss two cases in the Service Business who are almost on the verge of going off the radar – one in a real sense and the other, almost gone. I am referring to Air India and Subhiksha – the former, India’s oldest airline and the other, India’s first Retailer to say so. Both were built by individuals and then handed over to the best brains in the country. Both were known for the inherent value that was promised, and to some extent offered to their customers. And something interesting and common to note in both the cases – Customer Service! Or probably the lack of it! If only the front-end staff took good care of their customers, would this situation have arisen? Especially the housekeeping boys – popularly known as the Bell boys – as in hotels. I guess they are the main reason for the collapse of these companies, which were also Institutions in some sense. The staff didn’t perform their jobs well and thereby the business collapsed. A common saying to be remembered: If you don’t take care of your customers, someone else will.

So, now that customers have shunned these companies and have gone to other alternatives, the bell boys and the front end staff must take the hit. Some must be sacked, some must forego salaries; and many others must agree to delayed payments. Good. Atleast now, they must realize how important customer service is in our business.

Well, having said that, should it really stop there? If a student fails in the exam, the school delays his promotion to the next class, and does not punish the teacher. Coz, the Teachers did their job so well, that they are not to be held responsible for the result of students. Sounds logical and is usual too, atleast in our country. I wonder how many in this society would accept the same with the student’s parents – they would be held responsible for the student’s failure. And if the student succeeds too, then they are praised. That too sounds logical. Naah. Both can’t be.

In the above business cases, all of us agree that Customer Service went for a toss. Projecting an imaginary “Maharaja” and promising a royal service and advertising worldwide was just not enough. And projecting a “Homemaker” and promising savings was also not enough. The promises must be kept up. And the promises must be kept up by those who made such promises - The Management and Investors who kept promising despite knowing that they wouldn’t come close to achieving it.

The need of the hour seems to be pulling up the business to reality, into action. And this can be won only by superior Customer Service. You would see that customers are not really missing these businesses – probably because they don’t remember them anymore. I have been a big fan of many authors and writers who propagate Customer Service. But I have my take on it. It’s not just enough to convert your customers as raving fans and the brand’s ambassadors. It is important to create a “love affair” between your Customer and your Business. Just the way customers love their spouse, their family, friends and pets. Customers must yearn to be associated with the Brand – to experience the service and to visit the store so often – probably because the staff is friendly and warm-hearted (no matter how old they are – pun intended).

Coming back to punishing – is it fair to punish those who just did what they were asked to do? Many in these two companies know inside stories and my blog is not a “chat-pata” filled Page 1 story ala the country’s largest gaspaper, err… newspaper. Is it correct to delay salaries of hundreds of innocent staff who acted upon the orders of the superiors? Some who were lackadaisical at work and handling passengers and some who did not order the right merchandise due to poor cash flow management. What about the decision makers? Foregoing a month’s salary or still being on LinkedIn with the previous company’s name in their headline is just not enough. Those who erred in these cases must be brought out in public. Hasty decisions that were taken in intoxicated mood must be revealed and tabled. And these persons must apologize publicly – to its shareholders, staff and most importantly, to its Customers.

Blame it on the Bell Boy was a classic comedy of Jerry Lewis – one of the best comedy artists the world has seen. Sounds nice for a movie, but not in real life. If the business succeeds, it’s because of the Team, its employees and mainly due to its Customers and if it fails, it’s because of a few individuals – those decision makers.

Long Live the Decision Makers. Let’s wish they take the right decisions. And for sure, not to blame anyone, but to apologize.

Welcome aboard…

Welcome aboard, dear children, Ladies and Gentlemen. This is your Railway Minister speaking. Firstly, we thank you for choosing to travel through Indian Railways, the largest rail network in the world. You have contributed to the growth of our country in a way today, as Indian Railways is the single largest employer in this country – yes, over 1 million people are directly and indirectly employed with us. The new Shatabdi Express that you are about to travel today has been modified a lot than its earlier avtars. This train will cover a distance of 380 km between x and y cities in a little less than three hours. For your comfort, this new Shatabdi coach has centralized air conditioning, unlimited free wifi, music and video for every seat, a delicious food menu from the best chefs across the country and a team of smiling staff at your service. Apart from this, there is a multi-cuisine Restaurant and Bar with live bands, a Pizza and Ice-Cream joint, abundant shopping options and recreation areas at various locations within this train. Feel free to ask for any other assistance and our crew would be happy to look into them. I have instructed my crew to take care of you as you would be if you were a guest in my home. I am sure you would enjoy the new Shatabdi experience. Should you have any suggestions or feedback, please send me an email to railwayminister@indianrailwayministry.rail and your query would be answered within 7 working days. You have a choice of various other modes of transport, but we appreciate your decision to travel with us today and look forward to welcoming you once again to experience our fascinating offerring. Thank you again and have a nice evening.

This is not a paragraph I have written during deep slumber nor it is a copy-paste from the luxury trains that are already running across various Indian states; just a wish which occurred to me while I was travelling on a Shatabdi train a few days ago. The most important part is the possibility of Dining and Shopping within the train. When Titanic could have it, A380 could boast, then why can’t our super long trains, that carry over 500 pax at any given time! Of course, it could. The consumption story is sure to continue and what better than within the Railway system that carries millions of people everyday from one part of the country to another!

All the above wishes will come true, even if we make a start today. WE includes us, all of us. Quality is best achieved when it is demanded the most. We see that in every Industry today, from automobiles to hotels, electronics to household. For example, in the Aviation industry – Airlines and Airports are not people-carriers and places of transit anymore. They are examples of impeccable service and modern architecture providing various facilities on air and on ground. This, has largely been achieved not just because of the efforts of the staff in these sectors, organizations and work groups. It’s because their customers wanted nothing less – for what they pay, they better be treated like The King’s best friend, if not like The King himself. Today’s “best in quality businesses” are mainly because of their customers who have made them achieve.

We need more of such “customers” ala “rail passengers”. Time has come that we demand quality. While there is hue and cry for the airport taxes that are collected in hundreds of dollars worldwide, look at the way the Airports are well-maintained. There may be some exceptions – places that have over 100,000 people passing and using the services everyday. Debatable. But still, they try their best. Money spent is atleast put to use. Good use. Using the various commercial opportunities, Airports earn non-aero revenues and then try to subsidise the cost of operations to the airlines, who in turn pass on the savings to their fliers. And they increase the base and bring more pax. who pay a small price for the upkeep of the place. And spend loads of tonnes of money on shopping and dining at airports. BTW, the estimated size of the Travel Retail Industry worldwide is over USD 37 Billion.

And look at what we do at the Railway stations. The entry fee is Three Rupees. You don’t get a good 100 ml Tea for that price in most places in this country anymore. And for the three rupees, the visitor who comes to see-off or receive passengers wants to use a host of services, including high quality dining and MRP shopping. We must be kidding. Or over-expecting. The infrastructure crunch is so much so in our railway stations today, that many of us prefer to kiss and hug at the entrance itself, rather than wait till the train chugs. We complain of the stink coming from the tracks, but no one respects the fact not to use the loo when the train is stationery (nor when it is not – someone MUST fix it the way it is done mid-air!). People dodge paying that rupee while using the public toilets and even after, complain the odour and mis-management of these places.

You must be thinking that this guy is telling us not to complain and grin. Naah. I am saying we must complain. And demand. And be prepared to pay for it. (Remember, some one said “No Free Lunch” - In life, I guess it applies to almost everything). And one of the easiest ways to raise money is by commercializing these places. It’s high time that the Railway station management is handed over to the private guys – let the Railways Dept. focus on their core competence, managing the tracks. My Grandfathers (paternal and maternal) used to work for the Indian Railways between 1930-70. They would be shocked with my thoughts if they were alive today. But times have changed.

While Airports world over could work that way, why cannot Indian Railways? You may already know that Singapore and Hong Kong Metro are not only privately managed but are also public-listed companies! The money raised from such commercial activites should be put to use, good use. To manage the facilities at the Rail stations. Whilst most of us complain that the educated urban Indian public abhores using public transport, it’s because they are so difficult to use. We need multi-modal transport hubs all around, inter- and intra-city. And during the “Dwell Time”, use it for commercial activities. Pay and park your Car safely. Have a meal, get your clothes ironed or dry-cleaned, shop for your daily needs, grocery, vegetables and all that stuff. Meet your friends. Have a Coffee, crack a business deal, Celebrate with some champagne or even with tender coconut water. Whatever.

Let’s get the basics right Didi. It’s all nice to say that the Railways will work for public benefit rather than commercial gains, but public sympathy cannot buy a single tea, let alone voting again. The way the food is cooked and transported into trains is best avoided to be seen. Because, if you see it, you would never eat it. Sorry for exaggerating, but see the picture below. This was 15 minutes before the train commenced its journey. If this is how food is transported in front of your eyes, then imagine the other logistics patterns. Sad. Apart from some magazines and novels, there is nothing much to shop. And that’s the next wave of Travel Retail waiting to flow. Just a matter of time. We have been promised of “adarsh” or “model” stations, (a few in Bangalore to watch out too). They must include these facilities.


While my eyes are closing and am yawning for the 46th time over the last 30 minutes, I am off to sleep now. But my dream would continue. To hear the voice-over.
“Welcome aboard, dear children, Ladies and Gentlemen. This is your Railway Minister speaking…”

Best Friend, Worst Enemy!

Brand Equity (supplement to The Economic Times newspaper) dated 17 June 2009, listed India’s MTB – Most Trusted Brands. While the most trusted one at the top is Nokia, the Finnish mobile handset maker, followed by Colgate, Lux, Lifebuoy, Dettol, Horlicks, TATA Salt, Pepsodent, Brittania and Reliance Mobile. The list largely includes “Brands” - while some are also Stock Keeping Units at the consumer level such as Lifebuoy and Dettol, others such as Tata and Reliance are literally household names. Its little wonder that there is not a single Retailer that features among the Top 10. Not yet. The first on the list is Bata at No. 35 and Big Bazaar at No. 97. Does that mean consumers don’t trust any of the Retailers so much that no one else figures on the Top 100? Well, the MTB is based on a survey that is conducted by Nielsen (which claimes to be the largest of its kind) with a sample size of 8,160 consumers. Yes, you read it right, Eight Thousand One hundred and Sixty Consumers only. At some level, this sample looks a bit small (within the relevant universe), although the mix is apparently quite good with the way the survey is undertaken.

That Bata and Big Bazaar are among the Top 100 goes to show the importance consumers are placing on Organized Retailers. Bata, among India’s oldest Retailers has been popular over the years for their core strength – Footwear. There was a time in the 80s and early 90s when school shoes were from Bata, mostly from Bata and only from Bata (many of you who went to school during those years can relate well). Sales surged by 30-40% during the months of June & July when schools would begin and once again in Dec. and Jan. when the monsoons are over. Bata slowly increased their range to include many other products that would complement, such as socks, shoe polish cream, school bags, etc. And then came one of their branded shoes “Power”. The positioning was such that the white canvas and leather shoes were to be worn everyday where as the new brand was meant for sports and other leisure activities. As sales grew, so was popularity and over a period of time, other branded shoes were launched within the store. And the Brand was so big that at some point in time, it was a big effort to even stand inside the stores. Customer Service sufferred as buyers received lesser attention than they expected. This was the beginning of the end. And in just 10 years, urban consumers had shifted loyalties – to lesser known Indian brands and more popular international ones. At some stage, Bata was almost invisible in India until 2004-05 when they made a comeback. A great case study in Indian Retail to decipher for years to come.

BIG Bazaar, a relatively new Retail chain that’s celebrating its 8th anniverisary now is already among the top 100 list. Not surprising, given the way the company has grown. I used to work for this chain (owned by The Future Group) five years ago and it was a famous saying then, which I am sure is the same today too – every working day in the Group is equivalent to two working days elsewhere. That’s the pace at which the Company operates. Needless to say, they are the largest Retail Group in the country today and International Retailers are somewhat adapting their India strategy taking lessons from the way this group operates.

So, do consumers buy these trusted brands or do they prefer buying them at certain Retail stores? We don’t have a survey done on this, but surely that wouldn’t be the case atleast at the moment. Household shopping is divided largely into Monthly Baskets and Weekly top-ups. One may drive a bit far for the former, but for the latter purchases, it’s always the nearest Retail store. Time, is of essence here and proximity and availability are the two most important factors. And most Retail chains lose out on the second point for various reasons. It could be due to financial reasons or simply, bad merchandise planning. Whichever way, if the stock is not on the shelf more than thrice as consumers visit, its likely that they wouldn’t return the fourth time.

The way to win Trust is to offer what consumers want – something that very few Retailers practice, as in most other cases, its “take it or leave it”. And Customer Service – the way the front-end manages the store and its users will make all that difference. There are umpteen global examples where shoppers visit faraway located outlets mainly because they enjoy the place. That’s Trust. One must remember that Consumers could be either your Best Friends or Worst Enemies. Yes, enemies, because they propel the retailer’s downfall. By not visiting. And that odd boards at the end of the store which reas “Thank You, visit again” becomes redundant.