Retail News You Can Use

Bata turns the corner
Issues first dividend in five years.

Forever in dire straits, Bata India finally seems to have turned the corner. The Company recorded a gross turnover of Rs 890cr in calendar 2007 – up by a substantial 12% from Rs 794cr a year earlier. The quarter ending Mar 08 showed an even higher growth (y-on-y) at 19.8%. Profits were up by 18% to Rs 47.44cr. The good cheer on the Bata's platinum jubilee (75 years inspired shareholders to confirm a 15% dividend – the first in five years.

Bata honchos credited their policy of modernization and retail restructuring started in 2004 for the turn around. Future plans would continue along these lines. Over 200 stores, located in new untouched areas, are being planned over the next year. This year alone, 60 new shops and 30 upgrades are expected. An expenditure of Rs 480cr is in the offing for this. The focus will shift from Bata's old strength, family outlets, to large format stores. These new concept stores will be spread between 3,000 to 10,000 sqft. Franchising these new behemoths would help Bata side-step the Rs 2cr required for interiors. Smaller shops will be financed through cash accruals. Bata already operates 1100 stores run almost entirely by Company staff.
In a sign of the time, Bata India has sold off its Hawai brand to Brazilian company Alpragatas for Rs 3.90cr. The Company blamed cheap duplicates in the unorganized sector.

Failed JV's leave Indian retailers unfazed
Pantaloon gets out of one and into another Still seen as a foreign concept, modernization of Indian retail resulted in a number of JV's between foreign and Indian corporates. Some of these have got unstuck. This has not shaken the appetite of Indian retailers for more.

Arvind Mills and Diesel BV of Italy finally called it quits for their JV (Diesel Fashion India Arvind) of just over a year (Apr 2007). Diesel had a 51% controlling stake. The official reason given was that both parties felt that the agreement would restrict their future expansion plans. More than likely, there was a conflict of interest on overlapping product groups: casual apparel for men and women, bags, women's lingerie, innerwear for men, watches, jewellery and shoes.

Pantaloon Retail did not hold back its punches when it blamed UK based Lee Cooper for pulling out of their JV (see Rakesh Biyani's statement in the box). The Future Group will, however, continue to sell Lee Cooper products in India under the licencing arrangement with the UK company. Currently there are 32 exclusive stores and the brand is also available in MBO's. The JV, set up in 2006, was an equal partnership between Lee Cooper and Indus League Clothing, a Future Group company.
The news of failed JV's hardly seem to faze Indian retailers who are seeking more tie-ups:
Pantaloon Retail formed an equal JV with French apparel firm, Celio. This would add one more brand in the retailer's arsenal. It is being positioned between mass and luxury.

Contributed by:Nithin Narayanan

Retail Finance

Written by: Nithin Narayanan.

 
One of the main tools of retail finance is the Financial Merchandise Plan. A financial merchandise planning specifies which products or services are purchased, when it is purchased and how many products are purchased as mentioned in the earlier article. Both rupee and unit controls are employed here.

 
Rupee control refers to the total inventory investment the at the retailer makes during a specified time. Unit controls relates to quantity of merchandise handled in the specified time. Rupee control precedes unit control as investment should made first to buy merchandise.

 
Financial Planning thus has many advantages.

It controls the amount and value of inventory in each store or department.

 It states how much of merchandise can be purchased with the budget in hand.

It allows the retailer to know the total inventory against planned and actual sales.

 
It can determine the space requirements that the retailer may need to stock as well as display.

 
It can classify the slow moving items.

 

Retail finance is a complex process. Retailer typically has different information needs. Retail assortments are larger; cost cannot be printed on cartons unless it is coded as customer might see it; sales are frequent and due to all these factors retailer needs monthly profit data and not quarterly. Daily Sales Report (D.S.R) is made to keep tab on all the activities of the store which culminates to monthly repots.

 

 

 

Retail News You Can Use

Report: Best Buy Plans to Double Sales in 5 Years
Minneapolis (June 26, 2008) Best Buy Co. expects to double its sales to $80 billion in the next five years, president and COO Brian Dunn said at the company's annual meeting on Wednesday, according to the Minneapolis / St. Paul Business Journal.

Best Buy doubled its revenue from $20 billion in fiscal 2003 to $40 billion in fiscal 2008. The company expanded from 679 stores to 1,314 during that time.

 

 Ralphs Unveils Lower-Price Policy
Los Angeles (June 26, 2008) Ralphs Grocery Co. is initiating a lower-price policy that involves reductions on goods that customers buy most often, according to the Los Angeles Times.

The 262-store chain in Southern California is planning to cut prices on thousands of popular goods.

 

 Rite Aid Posts 1Q Loss
Harrisburg, Pa. (June 26, 2008) Rite Aid Corp. said Thursday that it swung to a big loss in its first quarter as it continues to spend heavily to absorb more than 1,850 newly acquired stores and offered promotions on items such as food and toiletries that hurt profit margins, according to the Associated Press.

Rite Aid also said it has turned around the declining sales in the Brooks and Eckerd stores it acquired last year, and is a matter of several months away from full integration.

 

 Bed Bath & Beyond 1Q Profit Tumbles 27%
Union, N.J. (June 26, 2008) Bed Bath & Beyond Inc. said Wednesday its fiscal first-quarter profit tumbled 27%, as costs outweighed sales growth.

For the quarter ended May 31, Bed Bath & Beyond earned $76.8 million compared with $104.6 million for the same quarter in 2007.

 

 Report: Barack Obama Urges Tesco to Work With Unions
London (June 26, 2008) Presumptive Democratic presidential nominee Barack Obama has urged Tesco CEO Sir Terry Leahy to meet with the United Food & Commercial Workers Union (UFCW) over employment rights at its Fresh & Easy Neighborhood Market stores in the United States, according to the Daily Telegraph.

"I again urge you to reconsider your policy of non-engagement in the United States and advise your executives at Fresh & Easy to meet with the UFCW," Obama wrote in the letter, the report said.

 
J.C. Penney to Reduce Store Openings in 2009
Plano, Texas (June 25, 2008) J.C. Penney Co. will further slow the pace of new department store openings and cut capital spending next year because of the weak economy. The company said Wednesday it now plans 20 new or relocated stores next year, down from the 36 it expects to open in 2008.

Penney had once planned 50 new stores a year through 2011, but backed away from that goal in April, when it set the target of 36 new locations this year.

Contributed by:Nithin Narayanan

Overview of Retail Finance

Written by Nithin Narayanan

 
Retail finance can be defined as an overview of which products are purchased, in what quantity, and when these are purchased. Financial planning consists of methods of accounting, merchandise forecasting and budgeting, unit control system and financial inventory control.

 There are two accounting systems that the retailer can use. They are-

 
     Cost method

     Retail method of Valuation.

 
In the cost method the retailer has to maintain a careful record for each item which is purchased. This is necessary to calculate the value of ending inventory at cost. As far as the retail method is concerned, closing inventory value is calculated by the average relationship between the cost and the retail value of the merchandise. This kind of method will accurately reflect the market conditions, but it is more complex. For example in case of Inflation the merchandise would be priced higher as it might bear the added cost of raw materials, and cost of operations. This is also dependent on the scale of operations as the scale if bigger, would offset the inflationary rise in prices to a large extent.

 
Merchandise forecasting and budgeting is a control system consisting of various steps-

 
Designating Control units.

Sales forecasting

Inventory level Planning

Planning retail reduction

Planning purchases and

Profit margin Planning.

 
Control units are merchandise category for which data is gathered. They must be narrow enough to identify opportunities or problems. Inventory planning is the process through which the retailer sets the merchandise level during a particular period. Retail reduction means reduction due to markdowns, discounts, sales etc.

 
There are various ways of doing retail finance which will be covered in the subsequent articles.

 

World's most competitive economies

The 20th annual World Competitiveness Yearbook, published by IMD business school in Lausanne, Switzerland, ranks 55 economies based on economic growth and how they manage their path to prosperity. The 12 of the world's most competitive economies with their ranks are as follows

1. U.S.
2. Singapore
3. Hong Kong
4. Switzerland
5. Luxembourg
6. Denmark
7. Australia
8. Canada
9. Sweden
10. Netherlands
11. Norway
12. Ireland

We will take each of these 12 most competitive economies of the world in detail in subsequent posts

 

- Contributed by Vaibhav Agarwal

Human Resource Management In Retail

Written by: Nithin Narayanan

 
A retail firm would want to structure and assign task, policies and resources in order to meet the ever-changing needs of the firms target market, employees and management. Now retail organizations have prioritized retention and growth of employees within the organization due to high attrition and demand for skilled work force. There are a few steps that form the core of HR Practice in retail.

 
Outline the specific tasks among channel members and customers.

 
Grouping the tasks into jobs.

 
Classifying the jobs.

 
Finally integrating the position in the organizational charts.

 
The Specific tasks mentioned above deals with a number of activities which a retail firm undertakes such as setting prices shipping merchandise, logistics, research, marketing, customer interaction, sales, follow up services .according to the needs these tasks may be outsourced or divided among the retailer, manufacturer middle men and so on.

 
After the retailer determines the tasks which it would perform, they are grouped into jobs such as sales persons, cashier, merchandisers, display personnel, store managers and marketing executives. Each organization has a different structure and culture hence the certain jobs could be clubbed as on. For example the merchandise department would deal with display as well as procurement.

 
Retail jobs can be categorized by function, product, geographic or a combination classification.

 
Human Resource Management in retailing is composed of several integrated factors such as recruitment, selection, training, compensation, and supervision

 
In the retail sector there could be some difference in HR practices due to long hours of work, pool of inexperienced workers, variation in customer demand, and location of the store.

 
One striking feature of personnel management in India is that the personnel are not given importance as this very sector is at the developing stage. Hence retailers give less importance to In-Store Executives and also their training which is imparted by the experienced staff is inadequate.

 
One must understand along with a good décor and environment, services are also important to make a mark in the customers mind. Hence Quality of the services and how these services are provided to the customer becomes significant in our present times.

 

India's top 10 pharma companies

The Indian pharmaceutical industry is the second-fastest growing industry sector in the country. It has shown a revenue growth of 27.32 per cent (as per the latest data available) to touch Rs 25,196.48 crore (Rs 251.96 billion) in 2006-07.

#1. Ranbaxy
Ranbaxy is India's largest pharmaceutical company with a 2007 turnover of Rs 4,198.96 crore (Rs 41.989 billion) by sales. The deal will create the 15th biggest drugmaker globally.

#2. Dr Reddy's Laboratories
Dr Reddy's Labs, with a 2007 turnover of Rs 4,162.25 crore (Rs 41.622 billion), is India's second largest drug firm by sales.

#3. Cipla
Pharma major Cipla is India's third largest pharmaceutical firm. Its 2007 revenues stood at Rs 3,763.72 crore (Rs 37.637 billion).

#4. Sun Pharma Industries
The Dilip Sanghvi-led Sun Pharma is the nation's 4th largest pharma company at a 2007 revenue Rs 2,463.59 crore (Rs 24.635 billion).

#5. Lupin Labs
Lupin Labs is India's 5th largest drugs firm. Its 2007 revenue was at Rs 2,215.52 crore (Rs 22.155 billion).

#6. Aurobindo Pharma
Aurobindo is India's 6th largest pharma firm by sales. Its 2007 revenues stood at Rs 2,080.19 crore (Rs 20.801 billion).

#7. GlaxoSmithKline Pharma
GSK is India's 7th largest drug company with a turnover of Rs 1,773.41 crore (Rs 17.734 billion) for 2007.

#8. Cadila Healthcare
Cadila's 2007 revenue was Rs 1,613.00 crore (Rs 16.13 billion), which makes it India's 8th largest pharma firm.

#9. Aventis Pharma
Aventis Pharma, with a 2007 revenue of Rs 983.80 crore (Rs 9.838 billion) is the 9th largest Indian drug company.

#10. Ipca Laboratories
At a revenue of Rs 980.44 crore (Rs 9.804 billion), Ipca is India's 10th largest pharma firm by sales.

Retail News You Can Use

ICRIER report supports growth of organized retail

It is reported that the Indian Council for Research on International Economic Relations (ICRIER) is in the process of submitting the final report on the effects of modern retail. The study was commissioned earlier in Feb post reservations that Sonia Gandhi and others expressed on the growth of large and financially powerful retailers, on small but far more numerous traders. The political fallout of rapid urban expansion of new formats has been devastating so far.
The ICRIER study polled 1000 small & traditional retailers and 2000 consumers. According to leaked reports in the media, the study supports the modernization of Indian retail through new formats including large ones. According to these reports, the study admits that small retailers in the vicinity of new modern outlets have been stung by sluggish or even declining sales. However, it adds that the negative impact of the organized sector will wear off with time. In fact, contrary to many expert forecasts, the study even suggests that the unorganized sector will retain as much as 84% market share in 2013. It finally recommends that the Government should streamline controls to encourage growth of organized retail.
The report is unlikely to ease the Governments political pressures. Further, in an election year, it is unlikely to make prudent but unpopular decisions.

 

Reliance: Petrol pumps to general stores?

Reliance Industries failed 1400 outlet petrol pump chain has prompted the corporate to consider alternative uses of the properties. One such possibility under scrutiny is to convert the properties to retail outlets, malls or multiplexes. While all the petrol pumps may not fit the requirements for retail, Reliance estimates that 800 would. As many as 500 petrol pumps in the chain are owned or run by Reliance and would be easy to convert. The others would have to be taken over. Reportedly, Reliance is offering between Rs 2-4cr per property for them. An estimated Rs 4-6cr will be required additionally for the conversion.

Bolder plans from Spencer Retail

The RPG Group, promoters of the Spence Retail chain, is churning out even bolder plans. The latest is a plan to make an investment of Rs 1500cr to open 250 outlets within a year. The Company hopes that this will take its stock of retail space to 2.25mil sqft by March 2009. In addition, the Company plans to sign off several international tie-ups. Hopefully, this would raise this fiscal turnover to Rs 1800cr.

Papa John to open 100 outlets

Promoted by the Middle East based master franchisee Jawad Group, JIP Fashion & Restaurant India Pvt Ltd plans to open over 100 Papa John pizza outlets in India. The company will invest Rs 250cr for this. With an outlet in Gurgaon already under their belt, the second one has come up in Vadodra and more are planned for Surat, Ahmedabad and Rajkot. The Indian pizza market is estimated to be all of Rs 300cr.

 

Indiabulls president joins DLF

DLF has grabbed, Munish Baldev, who was earlier President of Indiabulls Real Estate Ltd. He was also a CEO with the Ansal Group. At DLF, Baldev has been given the designation of VP, Marketing. He has had a meteoric presence in India's retail real estate development scene. This includes association with such projects as Metro City Walk and The Great India Place.

 

Parsvnath to develop mall near Connaught Place

Parsvnath has paid Rs 200cr to acquire a 5,735 sqyd plot close to Connaught Place at 27 Kasturba Gandhi Marg - in central New Delhi. The purchase was made through a subsidiary company, Primetime Realtors. The developer plans to construct a Rs 1lakh sqft luxury mall and high-end offices. The total investment is likely to be Rs 300cr and be ready in two years. The company is targeting average rentals of Rs 600-700 per sqft. Parsvnath currently has around 210 mil sqft of developable area, including seven special economic zones.

 

Home Depot scales down growth

he US second largest retailer, Home Depot is planning to scale down growth including opening of new stores. This will translate to a reduced 1.5% growth in sqft terms or 20-30 stores. Further, it will close 15 underperforming stores and abandon 50 store locations in its hands. This is just a third of previous year growth. This is a similar decision to that of Wal-Mart and Starbucks who have also bitten the bullet. The culprit is the economy which is in recession-like condition resulting in a slump in the home improvement market.

Contributed by:Nithin Narayanan

 

The Art Mall

Written by: Nithin Narayanan

Art is the most interesting commodity in the market today. Every one now is talking about Brazil, Russia, India, China which are all emerging art market these are giving competition to traditional art markets like New York and London.

Making an entry into this dynamic field is not easy. For starters development on the net, emerging economies Art fairs and auction houses are some of the sources to scout for the next big thing. The globalized art market requires fairs. A fair is extremely convenient an it is a One- Stop- shop for collectors. Because of the need for the fairs, new places have come into the scene like Dubai, MexicoVienna. and

Also the internet has revolutionized the art world. Online forums for artists to display their collection are very popular these days. Websites like Artinfo.com are one of the prominent players. Buying art directly off the websites is dicey as it may not be in a good condition. It is only advisable if one is looking for something in the lower end of the market.

India is considered as the next big thing for art enthusiastics. A few years back only NRI or Indian expats were the only ones to buy work of Indian artists. Even here in New Delhi there is an Art Mall which caters to young artists to exhibit their work. This kind of place not only provides an impetus for budding artists but also a great place for art lovers.

Retail News You Can Use

HyperCity jettisons ExpressCity format
The K Raheja promoted HyperCity Retail has dropped a plan announced last year to launch ExpressCity. The latter was supposed to be a convenience store chain to rival Subhiksha, Reliance Fresh and Spencer. Reportedly, the inconvenient challenges were low margins in a high real estate cost environment. As a result HyperCity will continue its focus on the current big box, hypermarket format and attempt to increase the only outlet in Malad, Mumbai.

 

 
Reliance Retail & Citi in consumer finance JV Reliance Retail and Citi bank are close to finalizing a 50:50 JV for consumer finance. The new venture will be headed by Citi Sandeep Soni. The organisation will provide finance, include loans, credit cards, etc for Reliance Retail consumers. Reliance Retail claims to have 38 lakh customers in their loyalty program called "Reliance One".

 

Reliance to open 60 iStores by 2011
Reliance Retail is to open 60 iStores by 2011. Currently there are four stores located in Jaipur, Bangalore, Hyderabad and Mumbai. iStore is Apple iconic outlet that retails its entire product line.

 

Five Centrals' to be added by Dec
The Future Group plans to add five Central ˜seamless malls by Dec end. These will come up in Vashi, Bangalore, Ahmedabad and Nasik. This will take the chain count to twelve. Kishore Biyani, CEO Future Group, has faulted poor supply and high real estate costs for the previous slow growth.

 

 Select Citywalk Mall, Saket wins award
The Select Citywalk Mall at Saket has won the award for being the Most Admired Shopping Centre of the Year. This award was announced at the First India Shopping Centre Forum that took place in Mumbai. Pranay Sinha, the outgoing CEO, was declared the Shopping Centre Face of the Year at the congratulatory celebration organized at the mall.

Croma opens in Ghaziabad and Faridabad
The Tata Infinity promoted electronics chain has opened two more mega-specialty stores totaling 32,000 sqft. Two Croma stores have just opened in Ghaziabad and Faridabad in the NCR area.

Contributed By: Nithin Narayanan

 

 

Maintaining Store Image

Written by: Nithin Narayanan

 
Customer communications are necessary for the retailer to convey its philosophy of business, objective and strategy. Creating and maintaining the proper store image, the way the retailer is perceived by its customers; is an essential part of the retail strategy mix. Store image comprises both functional and emotional attributes and it requires a multi-step, ongoing process.

 
A retailer's image depends heavily on the atmosphere that the store projects. Atmosphere is defined as the physical attributes of the store utilized to develop an image and it is composed of the exterior, general interior, store layout and displays.

 
The exterior of the store is planned in terms of its storefront, marquee, entrance displays windows, building height and size, visibility, uniqueness, surrounding store and areas and parking and congestion.

 
The general interior of the store incorporates flooring, colours, lighting, scents, sound, fixtures, wall textures, width of the aisles, dressing facilities, personnel, vertical transportation, merchandise, price-display. The interior of an upscale retailer would be far different from that of the discounter. This is just a reflection of the image desired and the cost of doing business.

 
Interior – Point-of-Sale displays provide consumer with information, add to store atmosphere and have a promotional role. Interior display possibilities include assortment, theme, ensemble, racks and cases, cut cases, posters and wall decoration.

 
Also the customer service that a retailer offers affects its image. When the firm outlines its customer services strategy, several decisions must be made.

 What services are primary and ancillary?

What level is necessary to compliment the store's image?

Customer service includes credit, delivery, alteration, packaging, returns, and so on.

 
Customers are apt to react favorably to retailers that show interest in their individual needs and help them as a community.

So Happy Retailing.

Category Management-Supplier's and Retailer's Perspective

Category management is a distributor/supplier process of managing categories as strategic business units, producing enhanced business results by focusing on delivery to the consumer. It has grown in importance since point-of-sale scanning allowed for accurate assessment of product movement.

 
For the category leader the benefits are enormous – they have the opportunity to control, influence and direct the category. It can be more difficult for a minor player unless they are able to demonstrate how the category as a whole can benefit from their move to a greater position of influence. In such circumstances clarifying the opportunity in strategic terms is the key to success.

 
To implement category management it is essential to have a consistent strategy and a standardized business process. The process consists of six steps:

 Category definition: decide what category your product fits into.

Assessment: identify sales, profit and return required.

Strategy: develop demand and supply-chain strategies for the category.

Tactics: determine the assortment, pricing, shelving and promotions required to achieve the plan targets.

Plan implementation: implement the category business plan and strategies through the store.

Category review: monitor category performance versus plans on an on-going basis, e.g. how have your product, your sales and, ultimately, your bottom line improved?

 

Category management should be viewed as a demand/supply chain process with a manufacturer/ retailer interface.

For the manufacturer there are product management functions, which should be organized into category. Similarly for the retailer there are customer management functions that need to be aligned to the category management functions for maximum impact.

 The strategy is the link between a company's overall mission and the role of category management.

Retailers and suppliers must answer a number of questions before starting the category management business process. They are:

  What is the company's overall mission?

  What is the basis of competitive positioning?

  What are the key corporate goals?

  Who are the target consumers?

  What are the key strategies relating to price, assortment, promotion,Customer

  Service and product supply?

 What is the present relationship between the retailer and the supplier?

The answers to these questions provide key strategic directions and a framework to build upon.

 
CONSUMER FOCUS

 Category management requires the target consumer to be the basis for the competitive strategy. It is essential to understand the target consumer and consumer behaviour that affects retail strategy and consumer purchases.

 

Three questions managers should ask themselves are:

  How do consumers choose stores for shopping?

  How do consumers choose products?

  How do in-store category tactics affect consumer choice?

It is important that space allocation, shelf presentation, assortment, pricing and promotion are dealt with carefully to get the right message across to the consumer.

Market research can help with this, but there are also four key points that should be kept in mind when choosing a retail outlet. They are:

  Location of the store.

  Product/brand variety.

  Price.

  Shopping environment – fast checkout, friendly staff and the atmosphere within the store.

Retailers can influence the consumer through merchandising tactics as part of their category management plan. These include:

  Space allocated to a category and to a brand within a category and the location of the brand, i.e. top shelf versus bottom shelf.

  The assortment offered – items added to or dropped from the category.

  The pricing decision – high/low or everyday pricing.

  The promotion decision – features, in-store displays, sampling.

 MANAGING THE RELATIONSHIP

 Collaborative relationships between trading partners are not always easy to achieve by the category management business process. Both distributors and suppliers need to develop databases that integrate their internal data with external market/competitive data.

To assist in avoiding problems, category management teams should ensure that:

 

Both parties are allowed to put across their perspective

  The category has a co-ordinated internal programme

  The category has a co-ordinated external programme

  It has the appropriate level of resource allocation.

 A substantial amount of work has to be carried out in terms of research and putting strategies in place to be able to implement category management and, subsequently, improve on business processes. To be successful, suppliers and retailers have to adopt a new way of working together.

 
Contributed by:Nithin Narayanan

 

More business quiz questions

21. Name the inventor of world's first safety elevator, whose name is synonymous with that category?
 Answer : Elisha Graves Otis
 
22. Which Indian pharmaceutical giant owned the Fortis Healthcare Limited?
 Answer : Ranbaxy Ltd
 
23. Made in China. Which company's corporate culture is known as "Colourful Life, Excellent Products"?
 Answer: Konka
 
24. Name the internationally acclaimed brand founded by Lionel Martin and Robert Banford in a small west London workshop? (Hint: Bond connection)
 Answer: Aston Martin
 
25. Big Blue is IBM. Which corporate is referred as 'Big Black' ?
 Answer: UPS

- Contributed by Vaibhav Agarwal

Exclusivity-Catch 22 Situation

Written by: Nithin Narayanan

 
Due to advancement of technology and rising disposable income, people are traveling far and wide.  It is but natural that tourists shop while visiting places. Therefore in the globalised retail economy and with the internet, it is practically easy to get hold of what one wants, whether it is a Gucci or a Gap. There are no items that are not available across categories in the shopping malls or online.

 
While this has created comfort for the shopper, it has also created a sense of herd mentality and the want for something rare or Out of the Box items is increasing among people. In other words the Era of Me Too product is slowly coming to an end. This kind of trend created a sense of balance and equality that say a Gap trouser sold in US can be purchased here in India too or a Mac Burger tastes identical in New York and New Delhi. But all this created a reverse trend.

 
For Example, the Japanese brand Plus –Minus- Zero has one shop in Tokyo. Some of its 

Fast selling items like calculator and a torch can be brought in select stores across the world. But for the entire range one has to come to the store in Tokyo.

 
One would argue that it is due to small scale of operations or difficulty in logistics and cost and not  a creative Marketing strategy of the firm, but at the end of the day these products have received increased attention whatever the case maybe.

 
All stores do not have this kind of brand perception but still they want the customer to feel that they are owners of something rare. Adverts stating rare preparations or age –old customs make us feel nostalgic about the brand.

The idea behind this is that Exclusivity generates buzz. Exclusivity can attract customers. It is based on the basic human need to own what is hard to get. Bulgari for instance tried something on these lines with the Bulgari Carbon Gold Watch with White, Yellow and Pink gold Dials. These variations were sold in different cities.

 
Global going local will pave way to more localized or individualized products which cater to a particular section or community as people do not want to get associated with the world as a whole but do want to be with  people with similar interests.

 

 

 

Customer Relationship Management-C.R.M

Written by: Nithin Narayanan

Retail as many other sectors depends upon how well the customers are with the products and services offered. In other words customer satisfaction is paramount in retail. It is here that customer relationship management comes into play. As retail grows in size and sophistication managing customers can become increasingly difficult.

There are many ways to build relationship with you customers-

Be proactive in meeting customers and take interest in what is happening in the stores.

Create measures or events where there is an interaction between customers and retailers such as Promotions.

If there are any problems with the products or services, take keen interest to solve the problem and work to create to a positive shopping experience for the customers.

 As far as problems are concerned, it should not be allowed to fester and should be dealt quickly and honestly by the retailer. Never allow the problem to escalate.

 
Try to understand the root cause of the problem.

Come up with a solution and ensure that customer is happy with it.

Take the solution  forward and implement it.

 
The thumb rule here is not to hide the problem. If one does hide it, the customer would remember that.  Hence Honesty is the best policy here.

 
One aspect that helps a retailer to position itself in the customer's mind is Exclusivity. Exclusivity of the product depends on what the customer has offered you – at the end of the day you are trying to sell a product to them. There is often very little benefit to exclusivity and competition from other products is healthy and, in the long run, can be beneficial by encouraging you to develop.

Remember you should always be aiming to keep control of the elements which will give you future growth potential for the business.

 
 In short managing the customer is a constant and evolving process and always try to make the relationship a success as success breeds success.

 
1. Be determined, persistent and innovative.

2. Plan your approach; use contacts and known sources.

3. Find the win-wins in the relationship

4. Build the relationship on honesty and trust.

5. Solve problems head-on, quickly and openly.

6. Develop the relationship to develop your business.

7. Keep you customer informed, be a useful source of information to them.

8. Never become complacent about your relationship with the customer. You must believe in your product and sell that belief to the customer.

 

More business general knowledge questions

Previous business general knowledge questions

16. Name the company founded by Acharya P.C. Ray and Rajshekar basu in the early 1920's?
Ans: Bengal Chemicals

17. Hindustan Motors' Ambassador adopted its model from Which British car model?
Ans: Morris Oxford

18. From the following lines identify the Corporate. "Since 1935, We have given millions of apples to countless daily visitors to the agency worldwide".
Ans: Leo Burnett

19. With which brand of healthcare house would Dr.Mukesh Batra associated?
Ans: Positive Health Foundation - First Corporate Homeopathic Clinic in India and the First ISO 9002 certified homeopathic clinic worldwide

20. Initially it was started as 'Brahmanara Coffee Club' in 1924 and changed the name in 1951 to the present one. In 1976, during emergency, it started instant foods business due to the price controls imposed by the Indira Gandhi Government. Identify this successful desi company/brand?
Ans: MTR - Mavalli Tiffin Rooms

- Contributed by Vaibhav Agarwal

Credit Information Bureau India ( Cibil ) tracking your credit card record

Few borrowers, including credit card holders, know that their repayment track record is passed on by their bank to a centralised credit information bureau India (Cibil). This data, positive or negative, plays a major role in determining whether a borrower's future loan application gets accepted or rejected.
Unfortunately, unlike in the US or UK, Indian borrowers cannot access this information to verify its authenticity. The status quo may hopefully change soon. A senior banker suggests that Cibil must provide written intimation about a borrower's credit history, or publish it on a website, which an individual could access by paying a token fee.

- Contributed by Vaibhav Agarwal

More business general knowledge questions

Previous business general knowledge questions

11. This famous business personality earn money by repairing toy trains when he was at 13. His father escaped from the British Police in 1920 and landed in USA with $20 in his pocket and later married an American school teacher and settled in Philadelphia. His corporate headquarters is known as "The Mountain". Identify him.
Ans: Dr.Amar Bose

12. Which famous corporate was founded in 1894 in Zlin and made its presence in India in 1931 and commenced the manufacturing of shoes at Batanagar plant in 1936?
Ans: BATA

13. Name the world's largest fully integrated Live Entertainment company?
Ans: SFX (Spectacular Fun eXcitement)

14. What is the name of Belgium's National Airlines?
Ans: SABENA - Societe anonyme Belge dExploitation de la Navigation Aeriene

15. What is the commercial Tradename of Monosodium Glutamate?
Ans: Ajinomotto

- Contributed by Vaibhav Agarwal

More business general knowledge questions

Previous business general knowledge questions

6. Which NRI businessman owns the Caparo Group?
Ans: Lord Swaraj Paul
 
7. Cannaught Plaza Restaurants and Hardcastle Restaurants have had the responsibility for the entry of Which MNC to India ?
Ans: McDonalds
 
8. N.Thanu got a double first class in BA from Loyola College, Madras. He worked as an illustrator in Ananda Vikatan and later with The Indian Express and Swarajya. Which famous organisation was founded by him?
Ans: Brilliant Tutorials

9. Which indian industrialist owned Tail Winds limited?
Ans: Naresh Goyal of Jet Airways
 
10. What were bulit under the project 178 ?
Ans: FIAT cars Siena, Siena Weekend and Palio

 

- Contributed by Vaibhav Agarwal

 

More business general knowledge questions

Previous general knowledge questions

1. What was founded by Herb Kelleher in 1973 in Dallas, Texas, USA?

Ans: South West Airlines
 
2. The former chairman of Proctor & Gamble, Edwin L.Artzt got a nickname for his demanding and harsh treatment of his subordinates. How he nick-named?

Ans: Wrecking Ball
 
3. Shasi Chimala sold his IT startup Indigo Technologies to Chennai based SSi technologies before eyeing into his new venture which is totally unrelated to his previous field. Name it?

Ans: Qwikys Coffee
 
4. Who endorsed the shaving product 'Erasmic', a brand owned by Hindustan Lever Limited, in 1970s? 
Ans: Tony Creig
 
5. In business context what is claimed to the fame of Ahus, a town in Sweden? 
Ans: Manufacturing base of Absolut Vodka

 

- Contributed by Vaibhav Agarwal