When skill set takes over everything else!

If there is one activity that many urban men dread every month among others, it’s the thought of visiting his “personal groomer”. From a nonchalant corner shop that could seat not more than three people at a time to the more recent air-conditioned (sometimes unisex) salons, this business has come a long way. The Barbers are today better known as “Hair-stylists” and the profession is gaining acceptance as a popular vocation too and many youngsters are getting their hands “on” in this business. The recycled newspapers have been replaced with Filmfare, Femina, Vogue and even India Today! From waiting outside the shops to fixing prior appointments, from standing under scorching sun to comfy sofas, a lot has changed over the years, right in front of us!

While the beauty-care market in India is worth over Rs 5,000 Crores, growing at 25% pa, according to an L’Oreal study conducted in 2008, the services business accounts for 87% of this market. The estimated size of the men’s grooming market annually is over 1,500 Crores and has been growing at a CAGR of 12% over the past few years. But organised players command less than 5% of the pie. Every city or region in the country has a bunch of players, although many of them have aggressive plans to grow nationally in the years to come. YLG or You Look Good is the most recent entrant in this market, while Limelite promoted by Cavinkare is among the oldest. Other players like Bodycraft and Bounce operate with a limited reach within a particular geographical area.

The three most important things that men look for when they visit a Salon are Convenience to visit the Outlet including parking, Skillsets of the Staff and the Ambience of the place. While the order of priority may change from each person, the most important aspect to note here is the Skillset of the Staff. All things being great but a poor job done wouldn’t bring back the customer again. To ensure that the service delivery is consistent, many chains also have an in-house training academy. Before the staff starts attending customers (Go Live!), they are given an induction for 10-12 weeks. This largely includes training on using the right equipments, the SOPs to be followed (yes, afterall it is a complex activity), and observing some of the senior crew members performing the job.

It has been studied that over 70% of the customers prefer to be handled by the same stylist in their subsequent visits. This is because they believe that the staff already knows their preferences and thereby, the job could only get better over a period of time. According to a dip-stick survey conducted in a leading chain last year, atleast 9% of visitors walked away if their favourite staff was unavailable or busy (and were willing to wait for the same person if they had time).

The biggest drawback today is that there is not a single large chain in India that could boast of offering consistent service across a single city. And the reason is quite understandable – staff attrition. The stylists at the entry level are paid between Rs. 4,000 – Rs. 7,000 per month and earn and share tips worth Rs. 2,000 per person per month. Sooner than later, they tend to lose interest and start looking outside the window – either to hop on to another salon/chain or simply to pursue some other vocation. Unlike in the West, this is not a profession that many feel proud to be in.

Customers are charged between Rs. 50 and Rs. 500 per session that usually includes “Hair-cutting/trimming” followed by a wash. Certain Salons also offer package deals that include facials, massages, etc., and the staff are expected to “convince” their customers to take up one of them. Interestingly, if a staff speaks about a certain service to the customer for more than 4 minutes, the chances of him agreeing to experiment (if he is a first-timer) is over 90% according to survey in a popular salon. And once the customer is happy about this particular service, he would obviously frequent the place. Most chains however, do not sell branded personal grooming merchandise in a big way. Even if they do, the focus is minimal and its’ sales doesn’t contribute more than 10% to the total.

Two years ago, while we were still selecting operators for our Bengaluru International Airport, I had discussions with leading salon operators in Bangalore and in India. But no one was convinced that passengers would ask for such a service. Unsurprisingly, today the same people are willing to undertake this activity! While I feel happy that leading operators are looking up at the Travel Retail potential, it is sad that we don’t have a suitable space today at our Airport nor do I see such parlours coming up at other Airports in India in the short term. In this case, it is clearly convenience that a passenger looks for – trimming beard or a quick head massage or simply, a haircut and a wash and may even be willing to pay a handsome amount for the service! But necessarily, skillset would precede every other aspect – especially at the neighbourhood Outlets. This is one reason why many people keep shifting their salons regularly. After all, it’s an activity done once a month, but one has to sport the same look for the next four weeks!

National Coffee Day

The American National Coffee Association’s “National Coffee Drinking Trends” market research survey recently found that 82 percent of American adults drink coffee, and that those who drink coffee weekly are increasingly on the rise. The survey further reveals that the average coffee consumption in the U.S. is 3.1 cups of coffee per day. And yesterday, 29th September was celebrated as “National Coffee Day” across the US. Although it is not clear who started this and from where did this concept originate, the day is revered all over the country. Most coffee chains offer freebies on this day – the list is long, but let me give some snippets...

• At Starbucks, VIA instant coffee is introduced and the Tall cup is complimentary at select outlet
  
• At McDonalds, free cups of Newman’s Own Coffee at select outlets
  
• At Panera Bread stores, but 1 and get 1 for free
  
• At Dunn Bros, carry the published coupon and get a Coffee for free… And they also encourage you to forward the coupon as much as possible to family and friends and bring as many visitors as possible to the Cafe!

In India, to the best of my knowledge, there is no such thing (yet). It was the same with Valentine’s Day, Mother’s Day, Father’s etc. a decade ago. Also, I am unsure if we will follow something like this in future – I may be wrong. Traditionally, India has been a Tea consuming country, mostly in the North of India while Coffee has been an all time favourite in the South. This is largely because the North was always the tea growing belt (Assam and Darjeeling are world famous and even have a Geographic Indication) and coffee for South (from Chikmaglur & Coorg) – so for obvious reasons such as transportation, logistics and other factors, probably people were used to consuming a certain type of beverage (like how Rice is consumed more in the South and Wheat in the North). According to rough estimates, a family of four in Urban India consumes about 1.40 kg of coffee or tea every month – that’s two cups per person a day on weekdays with a higher frequency over the weekends. Ofcourse, we are talking about the traditional South Indian Filter Coffee or Tea that’s made using packaged tea powder, boiling water and milk. Indian Households usually do not consume Cappuccinos or Lattes or Espressos as these equipments are neither popular nor affordable in India for the time-being.

The Cafe culture started over a decade ago in India, in 1996 to be precise when a small coffee shop opened at the world famous Brigade Road in Bangalore. The outlet also had an internet centre - that’s around the time the Internet was launched in India and it used to cost over INR 60 for an hour of browsing compared to less than One Rupee an hour today (if you are in the best monthly plans). That was the beginning. Today, there are over 2,500 Cafes across the country and growing. The innovation of the Cafe culture was brought into India by Amalgamated Bean Coffee Trading Company Limited, headquartered in Chikmaglur, a nondescript yet beautiful locale on the foothills of the Western Ghats that grows most of the coffee in India, with its Head office in Bangalore. With the trade name “Cafe Coffee Day” and various other formats, the company today operates at over 810 locations and is expected to cross the 1,000 mark by next year as per media reports.

CCD as it is popularly known operates across the major Domestic and International Airports in India including “Bengaluru International Airport”, almost all the popular Malls in the country, various Offices and Establishments, IT Parks, Movie Halls and Multiplexes, Educational Institutions, Hospitals, Highways and High Streets and is also present in Pakistan and Austria. There are half-a-dozen national players in the market including Barista Lavazza, Cafe Mocha, Costa Coffee, Coffee Bean and Tea Leaf, Gloria Jeans, Illy, etc. and several regional/city-wise operators. The distinct feature among these outlets is that they provide the products and ambience of the Coffee Shops that are in Five Star Hotels but at reasonable prices with easy access. While many follow the service concept such as in Restaurants, some also follow the “take-away” model, both of which are equally popular and welcomed by consumers. The estimated market size of the Organized Coffee Outlets is approx. INR 800 Crores (USD 1 = INR 48) and has been growing at over 35% CAGR for the past few years. Starbucks, world’s largest coffee chain entered and exited India last year (due to FDI regulations) and is planning an entry soon. This makes India the fastest growing Coffee Retail market in the world.

While there are over 2,500 outlets across the country, we are talking about a country of a Billion people – so even if you assume 1% of this population (10,000,000) would be the most relevant target segment, assume they would each visit a cafe once a month (10,000,000 visits in a group of say, two people) and each outlet would service 500 customers every day on an average, we would still need over 10,000 Outlets across the country to meet the growing demand. Ofcourse, these are mathematical calculations and the reality maybe a little different, but still, the opportunity is HUGE. The whole world acknowledges that India is the youngest country on earth with over half of the country’s population under 35 years of age and this is the largest consuming class. With growing incomes and salaries, opening up of several industries, and early age of employment (Avg 22 years), coffee consumption at cafes is seeing unpredictable growth across the country. From pilgrim centres like Vaishnav Devi to exotic holiday destinations like Goa, Rajasthan and Kerala, from Kashmir to Kanyakumari (the northern and southern most cities), there are coffee shops coming up all over.

The focus segment however remains the Teens and Tweens. Tweens, as I call them are those in their Twenties – from beginning to work until they are 29, their lifestyle and habits are changing so much and faster by the day. The two segments contribute over 70% of the customer base at the Cafes. The reasons for this segment to visit the cafes are varied – from pursuing their college studies, to hang around with friends, the first “date”, and as they grow up, casual meetings and business meetings, and even serious discussions. After all, “A lot can happen over coffee!” In my case, a lot has happened. What about yours? If you are a teen or a tween or any one of those at heart, rush to the nearest cafe, and by popularity, most probably your choice would a Cafe Coffee Day. In India, we believe everyday is a coffee day. Cheers.

Thank you!

It's exactly six months since I started actively writing on this blog. I would like to thank each one of you who have constantly supported me and encouraged with various ideas, suggestions and thoughts in this endeavor. I have been able to implement a few and the others would follow.

Keep visiting my site as often as possible; to make it easier and simpler for you, I have included RSS Syndicate as well as commencing a new E-Group titled Retail Enthusiasts. The Group would act as a platform for all the group members to share best practices.

Thank you again and look forward to being in touch.

give me more.

With a little bias, I would like to call them the BIG Four of Indian Retail (like the ones in the Auditing world such as E&Y, PwC, KPMG and Deloitte) – The Future Group, Reliance, Tata and Birla. My very close friends and associates are working in very senior positions in other Retail Organizations, but going by history, these four are expected to lead the Great Indian Retail Story that is unfolding faster than the world believes. While the Future Group came into Bangalore over six years ago, the Tatas and Reliance came over the past years. And last week, Birlas opened their first and largest (yet) Hypermarket in Bangalore. Aptly named more. MEGASTORE, it is located on the Outer Ring Road, quite equidistant from Marathalli, KR Puram and Whitefield. Approximately, over 1 million people are expected to be living in a 10 sq. km area from here (based on various studies on the internet that advocates catchment analyses) and over 100,000 households that appear to be the most relevant target segment. Within the same area, there is a Big Bazaar on Old Madras Road and Whitefield, Total Hypermarket on Sarjapur Road, and a few more expected. With a dozen malls in various level of completion in this area, it is indeed going to be one of the most watched markets in Bangalore as far as Organized Retail is concerned.



I managed to spend some quality time at the new hyper – more from an academic and learning perspective than from the main motive – shopping. My first impression – Wow. State of the art, world class Hypers have arrived and it was nice to see consumers’ acceptance too. By the way, if there is one place where the entire family visits over the weekend to while away time, to buy things that are “perceived” to be cheaper, to catch up with other relatives or to buy some grocery and household articles, then it is the modern Hypers! Yes – it was a sight to see last Saturday when everyone in the family was there – to see the new Outlet, to check out the offers that were being popularized, and to “save” – the new mantra of the modern household families.



While it is a continuing debate on what is the ideal size of the Hypers, how many SKUs should they carry and whether specialty Hypers would work, I believe what we need is higher penetration – more outlets within a locality than fewer “Big Boxes”. We already have a dozen players at a regional, national and international level within the country that are focusing on these models, so it would be possible to have more than one operator/retailer in a specific locality. And Indian consumers need a variety and seek a change quite often, so they would end up visiting different outlets over a period of time – and hence I wonder if “Hyper Store Loyalty” is anything but a big wish for the Retailers.



When one looks at the Store front, it is very welcoming. The “Free Parking” signage is soothing and sends a positive message to shoppers. That there are no other commercial attractions or hangouts close by would mean that visitors come into the store only. As you enter, the Clubmore Loyalty desk is visible. Again, this communicates shoppers that if they are loyal, then they would be rewarded. Smart. Large trolleys are located at the entrance to ensure that most shoppers pick it up as early as possible (for obvious reasons). Just after this, the confusion begins. There are over 18 Cash counters and to enter the ground floor, one has to weed through the customers who are billing! Strange. Almost no one would do that. So, I approached the gentleman who was standing near the check-out, observing and ensuring a disciplined and smooth flow of operations and asked him how/where should I begin my journey. He showed me a travellator that’s near the window and asked me to go to the first floor before I come back to the Ground. I did. I was fumbled to see that the travellator arrives at a dead end – only to be greeted by the Security Guard who is standing there clueless. And just as I pass by, I see another travellator that takes you to the next floor. As always, one couldn’t find a store directory at any of these places. Usually, shoppers who haven’t especially come to shop would have gone up.

But the sincere me who was on an academic tour went into the first floor only to get caught into the crowd. Men’s formals mixed with casuals and then the women’s categories and well, a large “Saree” and other Indian ethnic wear followed and at the end of the floor was stainless steel, plastic and other household items! The travellator at the end of this floor takes you to the ground floor. But I wanted to see the next floor above. So, I came back to where I started and took the way upward. Again, this arrives in a “no-man’s land” – so, I turn left and get into the electronics area which leads to home appliances which leads to sports equipments and ends with bicycles! One walks back all the way to take the travellator down to the next floor and then to the ground floor. Phew. I guess the planners have probably somewhere forgotten why the travellators are created/placed. They are not for moving people from one floor to another (a simple elevator would do that); rather, they are placed such that shoppers walk across areas which they wouldn’t have otherwise and so to see some conversions. So, then I finally came to the ground floor. Strangely, Fruits and Vegetables along with Meat and Dairy products were at the fag end. The philosophy that they must be kept at the entrance is defeated – probably because we expect shoppers to finish buying everything until they reach this area. We expect.

Suddenly realized that I had to pick up some stuff which my aunt had reminded the same morning, so took the list out and bought them. With just three products on hand, I walked towards the cash counters – and voila! All the counters were busy, with atleast three of four trolleys in each of them. There was no “Express Counter” according to one of the staff around, so I politely handed over all the products in his hand to bid adieu. Only to see the signage “Express Counter” at the end! Now, we all agree that most of the shoppers do not visit a hyper to buy the top-ups or the smaller articles, but what happens to those who do so? There were only two express counters and both had atleast six customers and usually, one doesn’t wait for so long.



Finally, I stepped out into the open area where I started my tour. It had taken me about 40 minutes for a full visit from start to finish. I would expect that it would be double or more if one had to shop. Decent enough time to convert as many as possible and also to increase bill values. I am not even talking about the promotions/pricing as they seemed to be attractive enough for families to shop (more than what they would have wanted to). At the entrance (or exit however you call), I didn’t find the customary short-eats – Pop Corn, Sweet Corn, Chat items and some fast food. Although this is not a mainstay, it contributes quite much to the total sales of the Hyper at the end of the day. And it does bring in regular shoppers to have a quick bite. As I stood on the other side of the road, looking at this marvelous structure, I was wondering if all the hype has paid off and what a challenge it would be to sustain the operations. There are large hoardings all over the city placed at strategic locations (one near my house that’s 22 km away from the store), but after all the waiting for the past months and a whole lot of effort by various team members, it was sense of disappointment for me. Of course, an average shopper would think/ interpret/ blog as much as I do, but what they look for in such outlets is not what they get – convenience. After all, Hypermarkets are not about the hyper space alone, it’s also about Hyper convenience of shopping. more.- convenience, if you may allow me to say so.

Mohandas, Mont Blanc and the Mahatma!

An eye for eye will make this whole world blind, said Mahatma Gandhi. Kamal Hassan, ace actor/director of Tamil Cinema recently co-produced a movie titled “Unnai Pol Oruvan” which translated in English means “Someone like you”. The movie is a remake of the recent Hindi super hit movie “A Wednesday”. The protagonist plays a dark role throughout the movie, only to reveal in the end that he was just reacting like a “stupid common man” scared of his environment who demands the Commissioner of Police of the city to discharge four terrorists only to kill them himself through a bomb explosion triggered through a mobile phone from a remote location. Interestingly, one of the characters is named “Karamchand” who plays the role of an “arms dealer & smuggler”. Kamal Hassan, who holds the world record as a male actor having played maximum number of roles, ten to be precise in the 2008 super hit Dasavathaaram (meaning 10 roles) has conspicuously named this character so. Many would know that “Karamchand” is the middle name of the Mahatma, which goes like “Mohandas Karamchand Gandhi”. When I saw this aspect on the movie, I was happy that the movie released two weeks before the Mahatma’s birthday – Oct. 02nd as I thought it was an insult to use the name of the Mahatma for a smuggler and a supporter of terrorists (even though it’s just a movie!). Kamal, 56, who is celebrating 50 years in Indian cinema, always had a different take on the Mahatma’s approach – of non violence and abstinence. In his previous movie on a similar subject “Hey! Ram” (the last words uttered by the great soul after he was shot dead by a Hindu sympathizer who along with many others believed that the Mahatma was solely responsible for the partition of India and creating a new entity named Pakistan) the hero goes to actually kill Gandhi. But before that someone else shoots him. It’s a shame that the legendary actor took this approach in his recent film where he propagates that the answer to terrorism is counter-terrorism. As actors, what they say is what they feel and hence, it is obvious to assume that this is the actors’ personal belief too.



While the whole country is getting ready to celebrate the Mahatma’s birthday next week, an international brand has used (or rather abused) the Mahatma’s name once again. After all, Luxury and the Mahatma do not go hand-in-hand. Gandhi, popularly known as the “Father of the nation” was a Barrister-at-law, worked abroad, returned to India and fought for India’s Independence. He believed that “non-violence” was the only way to fight or protest; His “Quit India” movement against the British was the turning point in the 200 year history of India’s freedom struggle and successfully ensured the country attain Independence at the stroke of the midnight on Aug. 15th, 1947. In the last part of his life, he wore only handloom products – a dhoti (wrap around) and a towel made of cotton (a natural fabric) while he and his supporters used the famous charka to loom cotton at his ashram near Sabarmati in Gujarat. He believed in simple living and intellectual thinking. While he never restricted his followers or well wishers to wear or use expensive products, he himself never used any such thing in the better part of his life.



World’s leading maker of luxury writing instruments Mont Blanc has announced the launch of the “Gandhi Limited Edition” in two collections, one that has 241 pens and the other 3,000. 241 is the number of miles that the Mahatma walked during the “Dandi march” over 24 days – he was protesting the salt regulation by the British and undertook a padayatra or a walking march from his Sabarmati Ashram to Dandi. And the other collection has 3,000 pens, the number of followers who joined him in this march. In the 241 collection, the pens are made of White Gold with 18K Gold threading and an Opel stone on the clip, which costs INR 11,39,000 (USD 23,729). The Luxury Brand promises to donate INR 50,000 (USD 1,040) for every pen sold to The Red Cross Society. In the other collection, every pen is made of Sterling Silver, Ivory lacquer and a garnet stone on the clip. While the Roller Ball is priced at INR 1,47,000 (USD 3,063), the Fountain Pen is priced at INR 1,67,000 (USD 3,480) and even has an imagery of the Mahatma on its gold-plated nib! The Brand promises to share INR 10,000 (USD 208) for Child Literacy for every pen that is sold. While half the total production would be sold all over the world, the other half is available across leading Mont Blanc boutiques in India. During a press conference in the first week of October ‘09, the Luxury Pen would be officially launched by the Brand.





While I have nothing against the Brand (I am myself a connoisseur of the Noblesse Oblige Roller Ball, an awesome Meisterstuck Visiting Card Holder and a Pencil and spectacle frame in the offing), I am surprised that the over-100 year old brand which is synonymous with “High Quality Writing” has taken this approach to make inroads into India. While I wouldn’t be surprised if this collection gets completely sold out in less than a year, I am yet to come to terms if this was the best approach for the Brand to reach out to the country at large. This blog is probably my first (and hopefully last) on Brand-Bashing, but I would never appreciate such an approach. While Corporate Social Responsibility is essential in today’s scenario, there could have been other themes than Gandhi to get popular. Many Organizations undertake CSR for the heck of it without meaning it really. Fine. But please, for nobility’s sake, spare Gandhi. Let him continue to show his smiling face on picture frames and postal stamps. And let's enjoy a public holiday every year on his birthday. My sincere apologies for this insult, dear Mahatma.

Hypermarkets, Austerity and the Cattle Class!

Aditya Birla Group, one of the biggest names in India Inc. which runs the “more.” chain of Retail Stores across the country is opening its first “more.” hypermarket today in Bangalore. This structure, on the Outer Ring Road between KR Puram and Marathalli has been in the making for quite some time and is now ready to open its doors to its esteemed customers. The frontage which is almost 15 meters or more in length and over 10 meters in height is enough to inform people that they are “opening shortly” with the trade name going up many weeks ago, indicating their arrival – a smart move of creating curiosity and at the same time, being straight-forward about the business foray; something that many Brands are reluctant to do. Wishing them good luck on this endeavor; after all, they are entering one of the most mature and fiercely competitive markets in India that already has The Future Group’s Big Bazaar, the Tata’s Star Bazaar, the Landmark Group’s Spar, etc. Will write a review on how the store looks like after visiting it over the weekend.

Coming to Cattle Class – well, enough has been talked about its origin, cause, effect, vision, reason, result, etc. over the past few days. As a marketing guy, I always believed that any publicity is good publicity and that’s what Twitter has got over the week. I can imagine how many people who didn’t know what it was would have “googled”… errr, I mean searched on the internet. So, we know who has benefitted the most. Twitter and Google. Having said that, why should our politicians stop their austerity drive with flying economy class on air? Wouldn’t it be a good idea for some of them to start shopping themselves (and get rid of their innumerous maids and helpers at home whom the Govt. pays with the taxpayers’ hard earned money). And they must shop at Hypermarkets. The new wave of Organized Retailing in India.

It’s over 9 years since the Future Group ventured into the Big Box wholesale-like retail model. Not many would know that it was Saravana Stores in T.Nagar, Chennai, which was the inspiration for Mr. Kishore Biyani, Founder & CEO of the USD 2.5 Billion Future Group to take Organized Retail in India to the next level. Saravana proved that everything from groceries to household utensils to jewelry to sarees and dress materials (and some food and beverage to manage hunger and thirst while shopping) could be sold under one-roof. Yes. All under one roof! That’s because we Indians love to shop that way, makes life easier. With congested roads and busier lifestyles, families prefer to shop together and for an occasion. Of course, I am referring to Gen X and behind. My favorite Gen Y and Gen Z, the Mall Rats, prefer to sit at Coffee Shops to spend some “quality” time with their friends. The teens and tweens are the future of India, so might as well let them to do so. After all, consumption always leads to growth.

So, Hypermarkets are the “in-thing” now. With global downturn having some impact in almost all our lives, however small or big, it seems to be quite fashionable today to talk about “savings” made on shopping. Even the party-poopers are talking about the discounts that are up for grabs at their favorite Fashion outlets that sell chic and trendy clothes and accessories. From CEOs to their housekeeping boys, it is but natural that consumers are now moving towards the Hypers and accepting them as a way of living. Someone said, “Money saved is money Earned…!!!???!!!...

So, the next step for our netas and abinetas (who are also netas) would be to shop at Hypers. No Cattle class here, atleast, no one would say that anymore. And give a comforting smile to the Aam aadmi. Hopefully, they will pull crowds to these stores, many of which are starving. If not to shop, crowds would gather atleast to have a glimpse of these famous personalities. Just that the security guards and the Operations Manager of the store would go mad. Managing the crowds, not inside but outside. Whichever way, we need more footfalls now. And I mean, Now.

Nipping in the Bud

Most of us were watching closely the developments on the recent strike called for by the pilots of Jet Airways, India’s most respected and the oldest private airline which recently celebrated its 12th Anniversary. Over 600 pilots reported sick – various forms of disorders from mild headaches to nausea to even diarrhea on a Tuesday morning until the impasse was broken and a final accord reached the following Saturday. As per IATA guidelines, a sick pilot (If he/she claims to be) is unfit to fly and this method was adopted by the pilots to show their protest against the sacking of some of their colleagues. The issue why the pilots were sacked was forming “National Aviation Guild”, a body of pilots from the airline that would coordinate a number of activities for their members which would include liaising with the management on various issues, the Government bodies and other agencies and to provide support and relief in times of emergencies or need. Clearly, it was similar to a Union if one looks at it that way. At the face of it, it looks fine – after all, Unionism was a way of collective living!

Naah. That’s not the way the Airline Management looked at the issue. The company plans to raise funds very soon for sustaining and expanding their business and investors would be weary to put their money in a company that has a large Union voice. Apparently, there are other reasons why the Management didn’t want a union set-up which continue to remain confidential. What started as a face-off emerged into the darkest times for the company and its visionary Chairman, Mr. Naresh Goyal. He was always known for his surprise decisions, but were mostly in the interest of the company – be it buying out the erstwhile Sahara Airways or sacking and immediately reinstating the next day over 2,000 crew members who were on probation or forging a strategic alliance with rival Kingfisher Airlines or cutting over 60% of its regular flights into a new avtar, Jet Konnect, a low cost no-frill airline, that has helped the company save lots of money. While commenting on this issue, he even said that he doesn’t mind closing the airline but wouldn’t take such steps that are not in the best mutual interest for all concerned. Rightly said, I guess.



The result of this unsavory drama was a lot of time and money lost that cost the company Crores of rupees as operating losses (especially during the current times when the Indian aviation industry is already under serious pressure due to lack of adequate revenues). And to set things right, the airline took advertisements on major dailies to communicate to their key target segment that they are now back in action. Most of us around just wondered – would this do away the negative feelings associated with the once “most trusted” Indian airline brand? Would consumers (passengers) shy away from this airline due to this episode?

Probably, not in India. As a race, I believe we are a set of people who move on, and quite quickly in that. Be it personal or political or social or even international issues, we do not take it to our heart and mull over for too long. Let me share an example. There was once this small retail store in a nonchalant location called Mandaveli in South Madras, which sold many household products including grocery at cheaper prices. The pricing was similar to that of the Govt. owned PDS, but the products sold were of superior quality and a new shopping experience that Madrasis (like my family and I) were not used to. And then, the Retailer grew bigger and bigger, from one city to another and from one state to another. And then the IPO and some external funding. And suddenly, it was a behemoth – by size, as well as debt burdens. Unable to pay the vendors’ dues on time, employee’s salaries on time and the bank’s interest on time, and finally, one day, it had to shut shop. It was so closely associated with the burgeoning modern retail in India, but after six months of its closure, many consumers do not remember the retailer anymore. They had some of the best locations and are now taken over by fellow retailers or someone else for some other purposes.

The case in address is similar and interesting from a Retail perspective. Jet was fighting fire every time in the past with a small extinguisher rather than resolving the source of its problem. There were a multitude of reasons for its employees, mainly pilot’s resentment. Every time an issue came up, some key personnel from both sides would get into a room and resolve the same. And everything was normal the next morning. Until hell broke loose.

Many of my colleagues in the Indian Retail Industry today would agree that it’s the same across many retail organizations. There was a possible formation of a Union backed by a regional heavyweight in Western India a few years back. The promoter whose direct political lineage is almost nil, somehow managed this well. But this could emerge once again, sooner than later, if not in the same city, elsewhere. With Retailers demanding an Industry status and already employing a sizeable number of the population, which is expected to cover over 15% of India’s population over the next seven years, this is only set to become a bigger virus sooner than later. Once again, I am not averse or against the formation of a Union or a Body – as long as it helps to achieves superior Customer Service. I have always advocated that highest standards of customer service can be/ and would be achieved only by taking care of the employees, especially those at the front-end. Many would agree, “If we don’t take care of our employees, someone else will’.

The recent Jet saga is a great anecdote for us. For something that should never happen again in India. Imagine any one of India’s leading Retailer shutting shop for a few days when its employees go on strike! No customer would ever return, as they would not want to be shopping in an environment that’s not conducive. We, the Retailers must be thanking M/s X, Y, Z, A, B and whoever lead the pilots to strike work (for their ulterior motives). Something that must be nipped in the bud by Retailers – you would only agree with me that no amount of advertising would help, and by the way, the banks wouldn’t be lending to take such advertisements anyway.

Old wine in a new Box...

After a long time, I had the opportunity to visit the Garuda Mall last week. I had a three hour layover between two meetings and I thought it was most apt for me to spend time there and I also had a lot of reasons to visit (I am not an avid shopper though, rather an ever-curious retail student who prefers to watch people buy!). It was quite easy to reach Garuda – I was coming from Marathalli so, after some twists and turns, finally reached the place. Parking was smooth – found a good spot in Basement 2. Bright Red Advertising from Airtel welcomed while claiming proudly that there were full signals and network there – I didn’t test as I use a Vodafone, but it was a strong communication and reaffirmation of their service, I thought.

Whenever I visit a mall, I usually start from the main entrance – and that’s what I did. Something’s never change – I wondered where these fence sitters come from. I was part of the clan a few years ago and now I am not. It was our favorite spot to sit, smoke, chat, take crucial business decisions, et al. And I found similar instances even now. Bustling of people entering and exiting the mall, continuous but moving traffic on the roads (that have a traffic flow that only the creators would understand) and a light drizzle – a great environment to get parked! But I wasn’t there for that, of course.

Entered the Atrium – again as crowded as ever. There were simultaneous promotions happening – a couple of MCs engaging the crowd with various activities. Walked all along the floors – Marks & Spencer’s announcing their “Final Reductions” and the new Esprit Store attracting a few good shoppers. Westside and Body Shop tucked in their corners and the Swatch island replaced with some popular brand that sells Jewelry and Watches. Nothing much was different in the first and second floors – except some changes in the Brands that occupied earlier who chose to move out – Benetton and Bossini among them. Then walked back to the Ground Floor to enter Shoppers Stop – it was the last day of their “End of Season Sale (upto 51%)” and as always, last minute shopping by busy-bees who had no time to shop earlier.

There is something that this Retailer has done – which probably no one else has in that way. They attract the highest number of footfalls into the Store. The most relevant, the least relevant, the irrelevant, Jack, Jill, Tom, Dick, Harry and Me. Notably, the conversions increase during the Sale, as many shoppers love to take advantage of the season. Am not sure how many hold back their purchases like before – after all EOSS was only twice a year. But this has changed now. With Factory Outlets springing up all over the city and specific shopping districts getting created, the essence of Discount shopping seems to have lost its relevance anymore. So what if one doesn’t shop during the Sale, the Discount Store is a (fun) drive away anyway. I guess EOSS would slowly but surely lose its sheen significantly. Something that’s not so good for Brands, as a tenth of shoppers who visit the stores during the Sale come back to buy merchandise later on. All the three floors were so crowded and as usual, air conditioning not at its best, suffocation was sure in sometime. After visiting almost all corners, I exited back into the second floor.

And noticed there was a near-stampede in one of the shops. Curious enough, when I went close by, I was told that a new Brand was being launched and a mini catwalk being organized inside the 50 sqm store! Wow. No wonder, there were more people outside the store than inside. The event promoters who were standing outside hosting chocolates, snacks and some tit-bits proudly offered and claimed the Brand was doing all this for seeking attention. Fake Customers – I remembered I have read this before. I believe some brands, especially high end fashion brands and some jewelry stores actually bring in fake customers to crowd the outlet, thereby increasing the visual appeal of the Outlet from outside. They don’t buy anything buy generally hang around till such time crowd picks-up. I hope what I read this somewhere was untrue.

Later moved on to the Food court – named Pit Stop. There was nothing sporty or F1 related there but for a rare poster of some racing car or driver. Many of the initial occupants have moved out and some who came later have also moved out. The ones who still continue are either making money marginally or are forced to stay on for other reasons – mere presence being one. Subway and Shiv Sagar (who sells the local snacks) were attracting the highest footfalls – one which offers consistent high quality food and the other, that’s easy on the wallet. The erstwhile fine-dine restaurant has been replaced by another – don’t know if it makes any difference to mall hoppers – after all, the Mall Restaurants are rarely destinations.

And the floor above, INOX Cinemas, was the biggest surprise. Most of the movies on the menu screen were showing green – indicating that seats were still available for the upcoming shows, even for the latest hits across all languages – Kannada, Hindi and Tamil. Wonder, if people are shunning the cinema halls mainly because of the content or other fears such as H1N1 or if the “recession effect” had still not reduced. Whichever way, the "once-busy long queue" sight of the Box Office (the ticket counter) looked deserted – with very few aspirational ones standing for tickets.

Overall, the Mall looked an old wine in a new box… errr, bottle. Lot’s more needs to be done – to attract shoppers to this place; to begin with, better maintenance of rest rooms and orderly car parking at reasonable rates. Remember, a new one is in the making, giving final touches at Malleswaram.

Selamat Datang in Malaysia

I had been to Kuala Lumpur, Malaysia last week to speak at a Conference. This was my second visit to KL, although my previous visit lasted only a few hours – my former colleague and I had gone to attend a business meeting and returned the same day. There is something so special and magical at KL – it’s traditional yet modern; slow-paced (compared to many other cities in SE Asia) but fast in its own way. What I loved the most about the city was its infrastructure – right from the Airport – the gateway to any city or country to the skyscrapers – I could just say Wow all over. I was told that the Government has allotted an area admeasuring 10*10 sqkm for the Airport which handles over 25 million pax a year and is rated No. 1 among its peers in the segment. There is a High Speed Rail from KL International Airport to the City Centre; a distance of about 60 kms covered in just 28 minutes. And the best part is the rear side if the ticket thanks the user for helping reduce the Carbon footprint (compared to, if one had traveled by road which would take between 60-90 minutes!). And the train ride takes just about MYR 35 – that’s about INR 420 or USD 9. Superb. And Efficient. Something similar to this has been underway in Bangalore too and we hope to see this soon.



There has been a good penetration of Retail in this city – from mainline bargain retail to premium Department stores to High – End boutiques! The city offers so much as one can take to the city's residents as well as the millions of tourists who throng the place every year. One such latest addition to the city is the Pavilion Mall. A magnificent piece of architecture hosting some of the classiest brands spread across seven floors with massive parking lots. The most brilliant element is the layout itself. And for the first time, I saw that the Brands on the ground level had access from the roadside as well as from inside the Mall; something that’s uncommon in India as the Mall developers here believe that shoppers would in that case, avoid visiting other outlets than the ones that they originally planned to.



Look at the view from the main entrance – an attractive line-up of Shops across levels and the Atrium put to its best use! There was a promotion related to Hennessy XO and was inviting curious onlookers to have a glance of what the special beverage is all about. And the colorful row of outlets across all floors which is visible from every nook and corner of the mall makes it quite an interesting view. The walkways do not have corners or ends – they gradually swirl and that makes it smooth while shoppers are walking. The top most floor – is aptly named Seventh Heaven; it features some of the best in class personal therapies.



And the best part is the basement floor. I have never seen such an eclectic mix of F&B Brands across various malls in South Asia. Food Republic, a chain of food courts in this part of the world operates the larger portion of this floor which boasts of street food from almost every popular Asian city – perfect in taste (apparently) and easy on the wallet. In fact, this is the only floor that had the maximum number of people than anywhere else in the Mall… Apart from this, there is a full floor dedicated to gourmet cuisine – from Japanese to Indian to other favorite Asian and International varieties.

The only thing I never understood quite well was that the Mall was one for everyone –From the Tangs Department Store mainly targeted at budget consumers to the marquee ones such as an Omega/Rolex Mono Brand Outlets, Gucci/Prada Boutiques and so on, the Mall has everything for the discerning shoppers. But the Question is whether such a model will work? I am not sure about the way people shop in Malaysia but in India, I doubt if it would. I don’t buy the logic that budget shoppers would get enticed into the Brand Boutiques or Gourmet Restaurants. As I write this article, there are not too many such malls (atleast that I know of). But I know of something that’s coming up. Will do my research and share my thoughts again. For now, Selamat Datang in Malaysia, ie., Welcome to Malaysia! One of the most tourist-friendly locations and one, that’s very Asian, as their campaign goes!

OMEGA - The End...

Many of you would have been noticing something unique on the masthead of the Times of India newspaper all through July & Aug. Swiss watchmaker Omega has been showing two small pictures of its models – Seamaster, Speedmaster, Constellation, DeVille, etc. While advertising on the masthead is not unusual, a brand such as Omega taking this approach in India is quite surprising. In India, the sale of premium and luxury watches picks up from Aug. onwards, especially with the upcoming wedding and festival seasons. Most Brands take either a first page solus or near the business pages, targeting the right set of customers. These ads actually set the mood – I doubt how much of purchase influence do they hold on a prospective buyer. And even more, when the ambassadors endorsing their watches are featured. For example, would someone buy a Tag because King Khan sports it? Are consumers so emotionally attached with the Brands such that their reasoning is impractical and loyal to their stars? Well, that’s a long debate one could have for hours or even days together. For sure, this would create excitement and lead consumers to the Retail Stores. It’s good to have footfalls coming in, isn’t it?

Coming back to Omega – in 1848, Louis Brandt set-up an assembly workshop to assemble precision pocket watches. In 1937, waterproof watches were launched and in 1943, automatic watches. Since 1969, it is the first and the only watch to land in the moon! From Cindy Crawford to Michael Schumacher, George Clooney to Abhishek Bachan, even James Bond uses this time-machine, in reel and real life. Such is the glamour of this particular watch that it is usually identified with its bracelet – with its unique and outstanding design. The Seamaster – a deep diving watch has a second crown (at 10 ‘o’ clock) which is a helium reverse valve, to allow helium out of the watch after diving at great depths. While the blue one has been around for some time, the black one is new in the market.



They say OMEGA means “The End” (the last and the 24th letter in the Greek Alphabet). I am not sure why this Swiss watchmaker named this Brand so. For me, it’s the beginning. My new Omega Seamaster that I got a few days ago and my resignation! Yes, I have resigned from my services today from BIAL after over three years in the Travel Retail Business. My next assignment is back in mainline Retail – shall write about that soon. For now, I am treasuring my new steel toy - when awake and while asleep!

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…”