There have been a couple of questions at LinkedIn on Brick and Mortar retailing Vs Internet retailing; so I thought of posting my thoughts on the same.
Both Internet Retailing and Brick and Mortar Retailing have their own sets of advantages. The advantages of Internet retailing are saves time, home delivery, depth and width of assortment, convenience, complete information of products,etc.
Whereas Brick and Mortar Retailing benefits are touch and feel, immediate gratification, cash payment, social experience, etc.
But the most important element which differentiates Internet retailing from Brick and Mortar retailing is overall experience, rather social experience. As, Paco Underhill, author of 'How We Shop', points out, “Stores are a social experience. I don't care how many chat rooms there are on a site, they will never provide what the experience of brick-and-mortar shopping provides for all five senses, if not six or seven.”
Shopping does not mean just buying products, we shop for numerous reasons such as feeling depressed/good, celebrating festival, need to be with family or friends, time pass, etc. We go shopping even if we don't have to shop; it may be your friend who would like to shop for himself/herself or for his/her family or friends.
Every purchase whether small or big has an experience associated with it. For example sometimes shopping for a colored pen or pencil makes me happy because I love colors. When I feel depressed, I go for color shopping. Also it doesn't cost your pocket. :-)
Big purchase could be shopping for furniture for your home or office, where again you would like to go and feel the furniture, sit on it before buying it. Or could be buying a car, which would require a test drive. Another example of big shopping could be marriage. Have you ever noticed a bride shopping for her wedding, she is so particular even for a saree pin she purchase!
I believe it is emotions which are connected to every purchase. For me shopping is a way out of my laptop, so I don't shop online, to me it seems too mechanical to shop online.
But surely there is both a market and potential for online retailers, the only point I'll like to make is that traditional brick and mortar stores have no threat from online retailers in Indian context.
Also feel free to describe your shopping behavior here.
Wednesday, September 3, 2008
Sunday, July 13, 2008
A Dhaba in Food Court of Malls
I believe a dhaba in food court of malls will do really well. When I am saying dhaba I don't mean "Pind Baluchi" or "Bauji Ka Dhaba". I mean a real dhaba where you get food at the price of a dhaba; or if not at the price of dhaba then may be 20 to 30% more than dhabba rates.
The target audience of such dhaba can also include the people working in malls. The people who work in malls away from their families, seriously face problem for their lunch. This dhabba could be a good option for them.
This dhaba may not invest in heavy fixtures like its counterparts in mall. And can do with the economical fixtures found in a Punjabi Dhaba. May be even a khat or two with excellent lassi served.
Also I feel there should be "Fresh Juice Kiosks" in the malls, offering fresh fruit and vegetable juices. A kiosk for juice at every floor of the mall.
However, I feel that these two models will do pretty well.
The target audience of such dhaba can also include the people working in malls. The people who work in malls away from their families, seriously face problem for their lunch. This dhabba could be a good option for them.
This dhaba may not invest in heavy fixtures like its counterparts in mall. And can do with the economical fixtures found in a Punjabi Dhaba. May be even a khat or two with excellent lassi served.
Also I feel there should be "Fresh Juice Kiosks" in the malls, offering fresh fruit and vegetable juices. A kiosk for juice at every floor of the mall.
However, I feel that these two models will do pretty well.
Saturday, June 7, 2008
Report on Rural Retail in India
Here I am posting a report on Rural Retail in India, which I have done as a part of my subject Retail Vertical at IILM, Gugaon. I will like to thanx my friends Priya and Deepak, who helped me to complete this report.
The report attempts to cover the rural scenario in India, Opportunities from changing demographics of Rural India, Enablers for growth in rural retail, Highlights of significant Players in India, Impediments and Recommendations.
Hope you would find it interesting.
(Click on the square on right hand side of the report for maximizing it)
The report attempts to cover the rural scenario in India, Opportunities from changing demographics of Rural India, Enablers for growth in rural retail, Highlights of significant Players in India, Impediments and Recommendations.
Hope you would find it interesting.
(Click on the square on right hand side of the report for maximizing it)
Sunday, May 18, 2008
Overview of Pharma Retail in India
Here I am posting a small presentation on pharma retailing in India.
Monday, May 5, 2008
Men Are Increasingly Investing Time In Shopping
Today I will like to share some interesting observation on how couples shop:
It is interesting to see that boys are now investing more time in shopping with their girlfriends and help them select the designs and sizes of the dresses. A male customer stood for about one and a half hour outside trial room helping her wife to select the garments. And I am not exaggerating the time, I have seen boys investing even more time helping their girlfriends to shop. Another thing which is interesting is to see how males hold the female purses; when the female goes to the trial room. There is something funny about men holding female bags.
Though men are investing more time in shopping but then there are still males who doesn't enjoy shopping as much as their female counterparts. Just to share one more incident where the couple behaved just opposite of the above. The female went to the trial room for trying a kurti and when she came out to show it to her husband; her husband was standing out of the store. Then she send a team member to call him in.
So though the customer behavior varies from individual to individual, but gen next males seem to be involved in shopping as much as their female counterparts. And they have a equal say in what suits them and what suits their counterparts better.
It is interesting to see that boys are now investing more time in shopping with their girlfriends and help them select the designs and sizes of the dresses. A male customer stood for about one and a half hour outside trial room helping her wife to select the garments. And I am not exaggerating the time, I have seen boys investing even more time helping their girlfriends to shop. Another thing which is interesting is to see how males hold the female purses; when the female goes to the trial room. There is something funny about men holding female bags.
Though men are investing more time in shopping but then there are still males who doesn't enjoy shopping as much as their female counterparts. Just to share one more incident where the couple behaved just opposite of the above. The female went to the trial room for trying a kurti and when she came out to show it to her husband; her husband was standing out of the store. Then she send a team member to call him in.
So though the customer behavior varies from individual to individual, but gen next males seem to be involved in shopping as much as their female counterparts. And they have a equal say in what suits them and what suits their counterparts better.
Wednesday, April 9, 2008
People Sensitivity For Physically Challenged People
Today at store we had a training on "People Sensitivity for physically challenged people" who visit our stores. The training was about how we should support such people. Note the word used is support and not help.
There was a role play where everyone attending the training had to sit on wheel chair and other person had to move the wheel chair. This made us realize the difficulties faced by physically challenged people. The space in the aisle of the section was not enough for the movement of wheelchair; because of the difference in eye level of person on a wheel chair and able person, the disabled person will not be able to read the signage, we also understood how a disabled person will like to touch and feel every product but what all will be the difficulties faced by him in reaching every product.
We learned the sign language and learnt the signs used for alphabets. And below are some key points which we should keep in mind while dealing with disabled customer:
There was a role play where everyone attending the training had to sit on wheel chair and other person had to move the wheel chair. This made us realize the difficulties faced by physically challenged people. The space in the aisle of the section was not enough for the movement of wheelchair; because of the difference in eye level of person on a wheel chair and able person, the disabled person will not be able to read the signage, we also understood how a disabled person will like to touch and feel every product but what all will be the difficulties faced by him in reaching every product.
We learned the sign language and learnt the signs used for alphabets. And below are some key points which we should keep in mind while dealing with disabled customer:
- If you are pulling the wheelchair, ask if the speed is fine
- Never pat on the back of the person
- Never try to help, only support
- Treat them as adult vs adult.
- Never be too friendly and don't ask personal questions such as "When did it happen?"
- Never try to play with the wheelchair or touch the wheelchair with your feet. For a disabled person it is their body part.
- The sign language learnt for helping the customers should not be used for your fun.
Monday, March 17, 2008
No Pharma Shops in a Mall
Till now I haven't seen any pharma retail shop in any Mall. To me it seems like a necessity in a mall. We have malls selling everything through there hypermarkets, department stores, food courts, speciality stores, cigarette kiosks, etc. But if a customer needs a crocine he is expected to go out, cross the road and take it from any nearby pharma shop, even if the customer is suffering from severe headache and outside the sun is shining too bright.
What? The basic medical facility is available at the Customer Service Desk of all the department stores and hypermarket. But how many customers know about that? The only thing they know is that there is no medicine shop available in the Mall.
Though Future Group has started with Tulsi (medicine shops) within their Big Bazaar store. But today I required citrizine which was neither available at the Customer Service Desk of my store, whereas Big Bazaar was not selling allopathy medicine today because of technical problems!!!
Monday, March 10, 2008
Dipstick Parameters
This is in continuation with the time to revise concepts.Today we will discuss formulae used to find how a particular store is performing.
The dipstick parameters can be used for finding the performance of four verticals that is customer transaction, stock, space and employees. The formulae are discussed as under.
1.2 Transactions Per Hour = (Number Of Transactions /Number of Hours)*100
1.3 Sales per Transaction or Ticket size = (Net Sales/ Number of Bills)
The dipstick parameters can be used for finding the performance of four verticals that is customer transaction, stock, space and employees. The formulae are discussed as under.
1. Customer Transaction:
1.1 Customer Conversion Ratio = (Number of Bills Made/Customer entry)*1001.2 Transactions Per Hour = (Number Of Transactions /Number of Hours)*100
1.3 Sales per Transaction or Ticket size = (Net Sales/ Number of Bills)
2. Stock
2.1 Average Selling Price = (Total Values of Good Sold/ Total Quantity Sold)
2.2 Stock Turnover or Inventory Turnover = (Net Sales/ Average Inventory)
OR
Stock Turnover or Inventory Turnover = (Cost of Goods Sold/ Average Inventory at Cost)
This depicts how many times the inventory rotates in a year.
2.3 Gross Margin Return on Inventory = (Gross Margin/ Average Inventory)
2.4 Shrinkage to net sales = (Actual inventory- Book Inventory/ Net Sales)* 100
2.5 Sales to Stock Ratio = (Net Sales/ Average Cost Inventory)
3. Space
3.1 Sales Per Square Feet = (Net Sales/ Square Feet of Selling Space)
3.2 Stocks Per Square Feet = (Net Stock/ Square Feet of Selling Space)
3.3 Percentage of Space for Department = (Space allocated to each department/ Total Selling Space)
*** See the sales per Square feet of the store and then calculate sales per square feet of each department. And Then compare how each department is performing relative to the store itself.
4. Employees
4.1 Net Sales Per Full Time Employee = (Net Sales/ Number of Full Time Employee)
4.2 Labour Productivity = (Total Labour Costs/ Net Sales)*100
Sunday, March 9, 2008
Time to Revise Concepts
I will try and post some very basic concepts which we have learnt during our Retail Management. The first thing a customer does after entering the store is he looks at the merchandise. So today lets start with color blocking that is how merchandise should be color blocked so that it is most appealing to the eyes of customer.
1. On a wall we follow VIBGYOR (Violet, Indigo, Blue, Green, Yellow, Orange, Red) from left to right. This is in the order of colors emitted by light when it pass through a prism. We follow this as the natural light is always soothing to the eyes.
2. From top to bottom we follow dark to light or light to dark depending on the season that is summer or winter. Though our teacher taught us that we always follow dark to light from top to bottom because dark colors attract the customers from a distance. So in summers you can experiment with both the concepts and follow what pleases your eyes.
3. While hanging on a straight arm, waterfall or step arm we follow light in the front and dark color at the back.
So in three simple steps you can give a pleasent look to your section.
1. On a wall we follow VIBGYOR (Violet, Indigo, Blue, Green, Yellow, Orange, Red) from left to right. This is in the order of colors emitted by light when it pass through a prism. We follow this as the natural light is always soothing to the eyes.
2. From top to bottom we follow dark to light or light to dark depending on the season that is summer or winter. Though our teacher taught us that we always follow dark to light from top to bottom because dark colors attract the customers from a distance. So in summers you can experiment with both the concepts and follow what pleases your eyes.
3. While hanging on a straight arm, waterfall or step arm we follow light in the front and dark color at the back.
So in three simple steps you can give a pleasent look to your section.
Friday, March 7, 2008
Checklist for Management Trainees of Hypermarket format
For the management trainees of hypermarket format the way to proceed will be bit different from the management trainees of Departmental stores. Hypermarket format much more SKUs compared to Departmental stores therefore trainees need to proceed merchandise category wise rather than brand wise.
The Checklist for the trainees of Hypermarket format is as under:
1. Printout of store layout.
2. Department wise area allocated.
3. Choose a department where you will like to start from.
4. Take a printout of all the merchandise category in that department.
5. Find out the price range offered in that category.
6. Find out the most sold price point in that category through team members of the department. Because in hypermarket format we work on price points rather than on brands.
7. Take the product knowlege.
8. Do an 80:20 analysis that is 20% of the merchandise category in the department will account for 80% of the sales for the section.
9. Look for the reasons why the rest 80% merchandise are not performing well. If that can be improved on.
10 Look for the contribution of the section in terms of sales, profits and area to the store. I believe this would give you the complete knowledge about that department.
11.Spend a day at cashering
12. Spend a day at Customer Service Desk.
13. One Day each with VM, HR and Marketing.
14. Then some days at Supply Chain Mangement: Here learn all the inward outward processes and all the commands on S.A.P. to do so. Learn the various commands on systems and how to generate Purchase order, Stock Transfer Order, etc.
15. Spend one day with IT/ Admin.
16. After this you can proceed with other departments of the store or whatever your project requires.
All The Best!!!!
The Checklist for the trainees of Hypermarket format is as under:
1. Printout of store layout.
2. Department wise area allocated.
3. Choose a department where you will like to start from.
4. Take a printout of all the merchandise category in that department.
5. Find out the price range offered in that category.
6. Find out the most sold price point in that category through team members of the department. Because in hypermarket format we work on price points rather than on brands.
7. Take the product knowlege.
8. Do an 80:20 analysis that is 20% of the merchandise category in the department will account for 80% of the sales for the section.
9. Look for the reasons why the rest 80% merchandise are not performing well. If that can be improved on.
10 Look for the contribution of the section in terms of sales, profits and area to the store. I believe this would give you the complete knowledge about that department.
11.Spend a day at cashering
12. Spend a day at Customer Service Desk.
13. One Day each with VM, HR and Marketing.
14. Then some days at Supply Chain Mangement: Here learn all the inward outward processes and all the commands on S.A.P. to do so. Learn the various commands on systems and how to generate Purchase order, Stock Transfer Order, etc.
15. Spend one day with IT/ Admin.
16. After this you can proceed with other departments of the store or whatever your project requires.
All The Best!!!!
This post is to reply to a comment on last post which said
"can you shed some light on :- why we need to take a print out of the store layout ?and what is brand matrix?"
We need to take out a print out of store layout because it will tell you which department is exactly located where in the store and in how much square feet, how wide are your aisles, etc.
For Brand Matrix let me post here brand matrix of a brand in Pantaloon say John Miller which is a private label.
Brand: John Miller
Target Age Group: 21 to 35 years
Median age: 27 years
Gender: Male
Current Brand Status: Power Brand
Perception: Value
Influences: Alto to Zen, travels by train to work
Character: Aspirational formal officewear/ officewear casuals at value
Central meme: Stepping Stone to Success
this brand matrix is defined by the company itself.
"can you shed some light on :- why we need to take a print out of the store layout ?and what is brand matrix?"
We need to take out a print out of store layout because it will tell you which department is exactly located where in the store and in how much square feet, how wide are your aisles, etc.
For Brand Matrix let me post here brand matrix of a brand in Pantaloon say John Miller which is a private label.
Brand: John Miller
Target Age Group: 21 to 35 years
Median age: 27 years
Gender: Male
Current Brand Status: Power Brand
Perception: Value
Influences: Alto to Zen, travels by train to work
Character: Aspirational formal officewear/ officewear casuals at value
Central meme: Stepping Stone to Success
this brand matrix is defined by the company itself.
Thursday, March 6, 2008
Checklist for Management trainees of Retail World
This post is for management trainees of the retail sector who go for their training in a store and find themselves lost, as their mentor or anyone is too busy to attend them.
This time I have been lucky enough to do my training under the guidance of a mentor who is always ready to help and to listen to anyone in the store.
So for the management trainees who enter in a department store, I am posting a checklist which they can follow to get themselves acquainted with the store and the operations of the store. this checklist is done with the help of my present mentor Mr. Rohit Singh, who has helped me to device a plan for my training.
1. Print out of Store Layout
2. Brandwise area allocated
3. Brand Matrix
4. Name of all Brands
5. Price Points of Each Brand (the price band)
6. Most selling Price Point in each brand
7. Top to bottom ratio for each brand: This is the topwear and bottomwear of a brand
8. Fixture capacity of brands
9. Contribution of brands to their departements and to the store.
10. Fabric awareness
11. Spend a day at cashering
12. Spend a day at Customer Service Desk.
13. One Day each with VM, HR and Marketing.
14. Then some days at Supply Chain Mangement: Here learn all the inward outward processes and all the commands on S.A.P. to do so. Learn the various commands on systems and how to generate Purchase order, Stock Transfer Order, etc.
15. spend one day with IT/ Admin.
16. And then on your Project, which you would have half covered by going through the above checklist.
I hope it would help you.....
All The Best!!!
In my next post I will try and post a checklist for the people doing their training in Hypermarket format.
This time I have been lucky enough to do my training under the guidance of a mentor who is always ready to help and to listen to anyone in the store.
So for the management trainees who enter in a department store, I am posting a checklist which they can follow to get themselves acquainted with the store and the operations of the store. this checklist is done with the help of my present mentor Mr. Rohit Singh, who has helped me to device a plan for my training.
1. Print out of Store Layout
2. Brandwise area allocated
3. Brand Matrix
4. Name of all Brands
5. Price Points of Each Brand (the price band)
6. Most selling Price Point in each brand
7. Top to bottom ratio for each brand: This is the topwear and bottomwear of a brand
8. Fixture capacity of brands
9. Contribution of brands to their departements and to the store.
10. Fabric awareness
11. Spend a day at cashering
12. Spend a day at Customer Service Desk.
13. One Day each with VM, HR and Marketing.
14. Then some days at Supply Chain Mangement: Here learn all the inward outward processes and all the commands on S.A.P. to do so. Learn the various commands on systems and how to generate Purchase order, Stock Transfer Order, etc.
15. spend one day with IT/ Admin.
16. And then on your Project, which you would have half covered by going through the above checklist.
I hope it would help you.....
All The Best!!!
In my next post I will try and post a checklist for the people doing their training in Hypermarket format.
Wednesday, March 5, 2008
Pharma Retail in India
Hi Friends,
I was recently reading about pharma retail scenario in India and was shocked to find out that out of 8,00,000 pharma shops in India, only one-third are present in rural India. This not only depicts a huge opportunity for retailers to capture but also the poor condition of rural India.Presently all the retail chains are focussing on urban areas, though Apollo pharmacies has tied up wid Godrej to set pharma retail shop, but still there is a long way to go.
I was recently reading about pharma retail scenario in India and was shocked to find out that out of 8,00,000 pharma shops in India, only one-third are present in rural India. This not only depicts a huge opportunity for retailers to capture but also the poor condition of rural India.Presently all the retail chains are focussing on urban areas, though Apollo pharmacies has tied up wid Godrej to set pharma retail shop, but still there is a long way to go.
Monday, March 3, 2008
Rural Retailing in India
I will like to start with my core area of interest that is rural retailing
Rural India accounts for roughly 70% of the population. Almost 6, 27,000 villages are home to 790 million Indians today.
At present 85% of the organized retailing takes place in India’s urban areas. But the good thing is that the retail focus has already shifted to the rural areas. The Indian rural market with its vast size and demand base offers great opportunities to marketers. Two-thirds of country’s consumers live in rural areas and almost half of the national income is generated here.
15% of rural population lives in 20,000 large “non urban” areas with population more than 5,000 people. 63% of rural population lives in villages of 1000 to 5000 people. Remaining 3, 90,000 villages have fewer than 1000 people accounting for 22% of the population.
For a retailer it is essential to see in which segment it is catering in the above division of villages. For example Shakti caters to villages with a population of 500 or above. Where in Eveready considers even the remotest of village as its target customer. It operates through more than thousand company-owned vans and has over 4,000 distributors to directly providing service to 6,00,000 retail outlets.
Rural India accounts for roughly 70% of the population. Almost 6, 27,000 villages are home to 790 million Indians today.
At present 85% of the organized retailing takes place in India’s urban areas. But the good thing is that the retail focus has already shifted to the rural areas. The Indian rural market with its vast size and demand base offers great opportunities to marketers. Two-thirds of country’s consumers live in rural areas and almost half of the national income is generated here.
15% of rural population lives in 20,000 large “non urban” areas with population more than 5,000 people. 63% of rural population lives in villages of 1000 to 5000 people. Remaining 3, 90,000 villages have fewer than 1000 people accounting for 22% of the population.
For a retailer it is essential to see in which segment it is catering in the above division of villages. For example Shakti caters to villages with a population of 500 or above. Where in Eveready considers even the remotest of village as its target customer. It operates through more than thousand company-owned vans and has over 4,000 distributors to directly providing service to 6,00,000 retail outlets.
Objective of the blog........................
Hi Everyone,
I have started this blog wth a desire to share knowlege. As my mentor Ms. Garima Dhamija once said "Don't keep any knowledge to yourself, share whatever knowledge you have". So keeping this in mind at this platform I will try to share whatever little or more knowledge I have.
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