Human ReTails - What do Industry Owners Think?

Organised retail in India needs a quick-grow tonic it still accounts for just 6 per cent of the entire retail sector. We asked industry veterans for simple, single-dose prescriptions that can reinvigorate the sector.

B S Nagesh Managing Director, Shoppers Stop Women in retail will be the key differentiator in the future. More and more women will be able to get flexi-job options in the retail sector, not only at the front end but even in jobs at the back office.

If the sector is able to attract many more women, it will also get stability as attrition among women is lower than among men.

They are also found to be more caring and show better empathy to customers and are, therefore, very well suited to the retail industry.

Kishore Biyani Managing Director, Pantaloon Retail and CEO, Future Group Retailers must reach out to tier-II towns. They must also address the second layer of Indian consumers with newer and innovative formats; the existing formats largely address the affluent classes.

Making finance available more easily at retail outlets, on easy terms, will also encourage consumption.

The industry will also benefit by encouraging part-time employment for women, who otherwise have become �housebound� for different reasons. Lastly, a strong focus on delivering better value at all times is required.

R Subramanian Managing Director, Subhiksha Trading Services Prove to the customer that you are offering more and better value. If customers get at your store what they can�t get from a platform on Linking Road � whether in terms of quality, choice or price � that is value delivered.

It will attract people and boost organised retail. Increase in consumption is already taking place but habits have not yet changed. We need to get consumers to change their shopping habits.

Supermarkets and hypermarkets need to differentiate themselves by offering wider choice and good quality products at lower prices. Until this difference is clearly visible, consumers will not switch.

Andrew Levermore CEO, Hypercity From the consumer perspective, we are seeing a growing awareness of hygiene as a factor in their choice of shopping destination. There is far less tolerance, particularly amongst the higher spending consuming class, for dirty stores.

When it comes to food and grocery retailing, the health and safety of customers is too often taken for granted by retailers in India. For instance, it is very rare to find simple hygiene standards such as hair nets being worn by employees working with fresh food.

The preparation of perishable foodstuffs in refrigerated cold rooms is almost unheard of. Retailers placing products with clearly printed �keep refrigerated� instructions on a dry shelf is common. Elsewhere on sales floors it is common to find dirt and grime build-up under fixtures and fittings.

All of this is a potential hazard to the health of the consumer. Focus on hygiene would truly make an important difference to customers. From the retailer�s perspective we will learn that our consumer will not believe that poor hygiene denotes low prices for much longer.

Gibson Vedamani CEO, Retailers Association of India Free access and visual merchandising to customers is the most significant change that I believe will jumpstart retail. Retailers must not stock products: they must display them such that they appeal to consumers.

Todays consumers dont walk into the stores with lists and budgets. Research has shown that about 30-40 per cent of the products they buy are of no immediate need to them: they are either deferred needs or impulse buys.

Hence if products are presented well, consumers will buy them. Also, strong visual displays and themes will make the store more interesting and encourage consumers to linger. Good signage that directs consumers to the right racks is also critical.

Arvind Singhal Chairman, Technopak Advisors Lower prices for good quality and branded products is the sureshot way to boost retail. The world over, retail outlets sell their products below MRP. In the UK, thanks to organised retailing you can get eight pairs of branded socks for �2 and a pair of jeans for �3. But this has not happened in India.

Stores still sell at the MRP or on meagre discounts. Selling quality products at lower prices will boost sales: the telecom industry is proof that this strategy works. Low prices will drive larger volumes and retailers will make more money than they are at present.

Neeraj Chandra Vice president, sales, marketing and innovation, Britannia Industries Finding more uses for existing channels will help drive sales. By understanding the channels better, manufactures can customise their products. For instance, a small-scale manufacturer of garments may find it difficult to enter large-format retail stores, but many malls have smaller shop-in-shop counters and the manufacturer can probably fit in there.

Further, understanding customer behaviour and reacting to it will help boost sales, like themes and activities around festivals help boost sales. Similarly, most working mothers seek tiffin-box snacks for their children; a section or aisle that caters to this segment will attract customers.

Also, streamlining the logistics and supply chain systems will help save sales that are at present lost due to unavailability, wastage and so on. This will benefit both the retailer and the manufacturer.

Anupam Bansal Director, Liberty Shoes Indian retail stores must start following fashions trends. Globally, this is a common phenomenon: in a particular month, for instance, all stores sell pink or red or corduroy or stripes, making that the fashion statement or must-have for the month.

All brands and retail outlets come together to push a trend. This makes consumers change or buy products often to remain in fashion. In contrast, brands and shops in India follow their own trends and are, hence, not as compelling or tempting.

Sanjiv Kakkar Executive Director, sales and customer development, Hindustan Unilever Converting footfalls into high value purchases in order to maximise bill value will be dependent on the retailer and manufacturer�s ability to drive offtake through relevant point of sale activation and pricing.

In addition, these have to be complemented by basic hygiene factors that enable a great shopping experience, including ease of access in terms of location and infrastructure facilities such as parking. Store ambience, ease of navigation and availability of brands and range, are key to ensure offtake.

The most crucial factor for the growth of retail in India is their ability to generate footfalls and convert these footfalls into high-value purchases. This will be dependent on how well they drive consumers into buying bulk consumption categories such as basic staples, vegetables, fruits, oils and tea through retail.

Pinaki Mishra Partner, retail, Ernst & Young The large chunk of customers in the lower middle class has been completely ignored by organised and large-format retailers. A concentrated effort to tap this segment will surely help boost consumption.

Companies can look at small initiatives like distributing pamphlets or offering a bus service to attract these consumers. Sales traffic during weekdays, especially in the morning and afternoon, is known to be low.

Retailers can look to drive in traffic from the lower middle class by, say, picking up customers from Dharavi in a bus, and dropping them back after their shopping. [Courtesy - Business Standard] ~~ Corporate Study Team, IMERT, Pune