New-age technology has made retail functions even more capable of fulfilling even the most detailed shopping need – be it the choice of selecting 1000 brands at the swipe of your fingertip, or getting your favorite accessory delivered to your doorstep through the click of a button.
As Abhishekh Ganguly, MD, Puma India notes, “Consumers have unlimited resources in discovering new products by the second, making decisions of what to buy, and then exploring the best avenue to source the product. More often than not, all of this happens through the virtual world. The internet as the premier source of information feeds consumers with every last detail they desire, and through this, they can make an informed purchase decision — not only on the kind of product that they must buy, but also whether to buy it online, or at a physical store! That’s the unhinged edge that consumers have these days when it comes to shopping.”
With the plethora of options available to consumers to fulfil their shopping desires, both online and offline, experts note that the key to keeping customer loyalty is by delivering a seamless retail experience.
Nihir Parikh, Chief Business Officer, Nykaa.com notes, “It’s about bringing the online experience offline, and vice-versa. For the physical store to be able to offer kind of scale of choice in products that the online world offers, And for the online store to be able to offer the kind of personalized shopping experience that the physical world does. That, I believe is the key to delivering a seamless experience”, as Harsh Shah adds, “And good content, timely education/advice (given to customers and genuineness in the kind of services and products offered are the 3 pegs to achieving this. Educate the consumer holistically, continually influence them via online means, and allow them the convenience of choice to purchase those very products online or offline.”
To this, the key importance of maintaining the sanctity of the customer’s personal space and choice comes into play, as Abheek Singhi, Senior Partner + Director, Boston Consulting Group notes, “The experience that retailers offer must be able to walk the fine line between advisory support and infringing on privacy. Retailers must be able to offer advisory support through smart predictions and various other such means using technology, yet be cautious enough to ensure that consumers feel free to choose and purchase the products they like, as observed in physical shopping.”
Keeping up with the customer in both online and offline worlds was conclusively agreed upon by experts as the key to delivering an optimal seamless experience. As Gaurav Mahajan, President, Apparel – Raymond Ltd highlights, “The consumer now-a-days moves from the online space to the offline space in less than a blink of the eye. All thanks to the smartphone revolution! The key for all of us here is to be able to traversing the physical and digital spaces in sync with the consumer. We must be able to reach and access the consumer across channels – digital and physical, and finally be able to transact with the consumer efficiently, irrespective of the platform. Once you are able to understand how the customer lives inside and outside the digital realm, it will give you clarity on how to align your online and offline stores to deliver the best shopping experience, and ensure that the customer chooses you over the competition, and comes back to shop with you!”
As Vikrant Yadav, Head of Business – India, Grey Orange concludes, “The secret to converting a single channel customer into a multi-channel customer is by allowing the customer to feel and believe that they are in complete control of the shopping process, and by affording them with the options and convenience, the best of both worlds in both worlds, be it online or offline.”
Based on the Retail Leadership Summit 2017 panel discussion ‘The Secret to delivering a Seamless Experience’. Moderator: Lee. S. Gill, Group VP, Global Retail Industry Strategy, JDA Software; Panelists: Abhishekh Ganguly, MD, Puma India; Abheek Singhi, Senior Partner + Director, Boston Consulting Group; Gaurav Mahajan, President, Apparel – Raymond Ltd; Harsh Shah, Co-Founder, Fynd; Nihir Parikh, Chief Business Officer, Nykaa.com; Vikrant Yadav, Head of Business – India, Grey Orange.
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Valuation, in it’s true sense, is the value that one sees in a brand or the kind of value that the brand creates for itself in the eyes of its customer, its supply partners and the company itself, i.e. employees, investors, shareholders etc.
Sharing how value creation forms the basis of any business growth, Rahul Singh, Founder & CEO, The Beer Café comments, “Value creation, in its wholesomeness, involves the brand in its entirety – the people that work for you, the people you work for, and other tangible and intangible aspects that add to the business being. According to me, investors play a huge role in the process of value creation. They’re the ones that add their faith into your vision for the brand. So if anyone were to ask me about the important aspects of building a brand, I’d say choose your investor wisely. Remember – It’s a Love-Hate relationship with your investors and shareholders when you’re working on creating a brand. You’ve got to respect their wishes and deliver true on their expectations, but you’ve also go to work towards the higher goal of creating the kind of brand that was originally intended (if not bigger and better!). So, yes, I guess value creation would also mean that the return on capital should supersede cost of capital.”
Manish Mandhana, Promoter, Mandhana Retail Ventures Ltd adds his thoughts to this as he shares, “According to me, valuation of a brand is based on the kind of product it delivers, and then of course, pure financials. To start off, robustness of business is primary – As an entrepreneur, you’ve got to work on business model that gives good cash flow. Your business should be able to generate cash by itself, and it is this sustainability which will fuel continual value creation. Secondly, having prolific board of directors and confident investors builds businesses and makes it valuable. These form your support system, and when your support system is strong, you’re able to withstand all challenges and keep moving forward without compromising on your brand value. Third, maintain transparency in your business — this makes life a whole lot easier and allows you to focus on building a business holistically. Lastly, pay heed to market forces that shape business trends — it’s best to be aware than to be blind-sighted and left staggered.”
Endorsing the role of the customer and the market at large in the process of valuating a brand, Bibek Agarwal CFO, Raymond asserts, “You’ve got to have a strong product – whether it’s an investor or a consumer – nobody is going to take a chance with a product that’s weak. Once you have that in place, the next step is keeping a check on what keeps your consumer associated with you, and responding to the market quickly in delivering what the consumer is looking for. Maintaining high consumer focus in your product delivery, and assertive use of immersive technology to influence the consumer in the right manner is the best way to grow your brand value (once you’re a brand that’s already out in the market!). It is only when consumers trust your brand and keep coming back to you that you can truly valuate your brand with some real meaning!”
On the other hand, Hemant Patel, CEO, Alder Capital emphasizes the investors’ point of view on the subject of value creation, as he comments, “From an investor’s point of view, I believe the opportunities landscapes that a business presents is what defines the nature of investment and also subsequently the process of building value of the business. First up, the business must have some vision; must be strong in its product, and must be exemplary for it to exude confidence from its investors. Secondly, when a brand is able to generate free cash without the need for continual investment, it goes a long way into ‘de-risking the business’, which is what every investor desires. In my opinion, these are the two key aspects in building a strong value for a brand.”
Summing up, Pankaj Jaju, Founder & CEO, Metta Capital Advisors LLP; shares, “True value for a brand is when an individual – be it investor or consumer – looks at your brand as something worth ‘giving it a shot’. Basically, it’s when they perceive the Fear of Missing Out to be far intense than the Joy Of Missing Out, will they continue to extend their support to your brand!”
Based on the Retail Leadership 2017 panel discussion ‘Value and Valuation in Retail’. Moderator: Pankaj Jaju, Founder & CEO, Metta Capital Advisors LLP; Manish Mandhana, Promoter, Mandhana Retail Ventures Ltd; Rahul Singh, Founder & CEO, The Beer Café; Bibek Agarwal, CFO, Raymond; Hemant Patel, CEO, Alder Capital
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The concept of Glocal involves delivering a globally accepted product or fashion or trend in an indigenized package that echoes with the sentiment of the local consumer. To deliver this though, it is essential to have thorough knowledge about the local market and the way things work there. As Mohit Khattar, CEO, Baskin Robbins emphasizes, “Let’s not forget that the customer today is aspirational and is globalized in terms of the information available. When it comes to global brands, customers know what they want, and it is for this reason that I believe that such brands must maintain their global ethos, but customize other aspects of the product to suit local customer preferences. In this way, you’re communicating to the local market that your brand is keen to work with the customer and for the customer, which is always a great way to grow the business and create brand resonance.”
Targeting the aspirational value of the consumer and delivering products that fulfils these aspirations forms another integral aspect of being truly Glocal, as Dilip Kapur, MD, HiDesign mentions, “Everyone aspires for a better lifestyle, and therein lies the big advantage to being global. As a brand, if you’re successful globally, it presents you with the opportunity to represent a global lifestyle in the local market, and fulfil those global aspirations that local consumers have. That, in itself, is an extremely powerful tool that brands must be able to harness in the most positive sense of business.”
To this Kavindra Mishra, CEO & MD, Pepe Jeans India adds, “While it is extremely important to tap on the aspiration of the consumer, do remember that the customer today is extremely smart and extremely aware. The access of information through the internet is so vast and so quick, that you really cannot afford to be relaxed in your approach. Remember, consumers are extremely finicky with their demands, and from one source or the other, they will have these demands fulfilled. You’ve got to be able to deliver good products that uphold their global brand value (in terms of quality etc), while also ensuring that the local flavor (in terms of design etc) is maintained. That will help you connect with the consumer, and if they like your product for what it is, they’ll keep coming back to you. You’ve already got global brand value, so the idea is actually to create local market value!”
Vineet Gautam, Country Head, Bestseller India touches upon other key aspects of the retail mix as he mentions, “While you maintain global positioning – be it your ethos or any other aspect, you need to understand that pricing is another key factor determining brand loyalty. Segment your consumers right – you can’t be everything for everyone, so don’t even waste time in trying. On the retail part of it, i.e. purely in terms of operations, keep it local. On the product part of it, i.e. the look and feel etc, keep it global. That, I guess, is the perfect mix of being Glocal.”
Bhavik Zaveri, Director, Ambab Infotech sums it up by sharing, “At the end of the day, it’s all about delivering the right product to the customer. Brands that use technology to educate consumers and learn more about the consumers so that they can customize their products and solutions to deliver exactly what the market wants/desires, will be leaders in their domain. And that’s the honest truth!”
Based on the Retail Leadership Summit 2017 panel discussion Going Glocal: Wooing the local customer. Moderator: Rahul Mehta, President, Clothing Manufacturers Association of India & MD-Creative Garments Panelists: Kavindra Mishra, CEO & MD, Pepe Jeans India; Vineet Gautam, Country Head, Bestseller India; Mohit Khattar, CEO, Baskin Robbins; Dilip Kapur, President, HiDesign; Bhavik Zaveri, Director, Ambab Infotech
]]>The retail experience has evolved from one that was once synonymous with shopping only at neighborhood markets, to now progressing into an era that delivers unbound shopping avenues in the real world as well as the digital realm. Bijou Kurien, Independent Consultant and Member – Strategic Advisory Board, L Catterton Asia, highlighted this trait of the business as he reckoned, “Retail and shopping is now a ubiquitous experience.”
Sharing his view on the data accumulated from the shopping and retail culture in today’s world, Jamshed S. Daboo, MD, Trent Hypermarket Pvt Limited (Star Bazaar) said, “Everybody in the chain of the retail process will get ‘smarter’, and data gained from the process will play a vital role in business strategy. This ‘Big Data’ gives clues to key aspects of shopping patterns that helps you take real time key decisions and to deliver a better shopping experience for the consumer”.
Inciting how analytics provides a clear view of what customers want and the means to deliver it, Adnan Khan, MD, Accenture, stressed upon how essential it is for retailers to build on analytics to create better KPIs, thereby enhancing their overall business ecosystem. “Technology can give you on demand data and power to analyze it. The thing is, organizations have to adapt with speed, especially when it comes to technology and what it has to offer” he said, assuring that doing so will ensure that retailers are in step with the customer and the ever evolving market trends.
“Customer Experience deserves to be at the center of any retail strategy”, is what Vikram Garg, Principal, Blackstone, emphasized, as he provided a consolidated insight to dealing with the ever-evolving market landscape, with due consideration to government rules and regulations, effervescent competition horizon and various layers of the retail process.
In terms of online and offline retail experience, Govind Shrikhande, MD, Shoppers Stop Ltd. noted the prowess of the online medium’s ability to reach several micromarkets in a far more effective manner, which has enabled businesses to better understand consumer shopping trends. He also noted that physical location and other such geographical factors play a huge aspect in determining the shopping mindset of the consumer. “The cumulate of such varied and diverse data sets will allow you to understand the mindset of the consumer, and afford you the power to reinvent your strategy in sync with the various ways in which your consumers evolve”, he asserted, sharing that one’s business strategy must involve a precise mix of Discipline, Direction, and knowledge of when to ‘Accelerate’ and when to ‘Decelerate’. And championing the cause of ‘One view of customer – One View of inventory – One view of order’, he further said, “If you’re Chitragupta – someone who knows almost all of their customers’ preferences, and deciphers the true meaning of that data – only then will you be able to develop optimum means to use these preferences and deliver a truly wholesome retail experience to the customer.”
Conclusively, the best way for retailers to deliver an optimum customer experience promoting a highly personalized and convenient shopping experience is by consolidating and synergizing the online and physical realms.
The above article is based on Based on the panel discussion ‘2020: Great Indian Retail Journey’ at the Retail Leadership Summit 2017. Moderated by Bijou Kurien, Independent Consultant and Member – Strategic Advisory Board, L Catterton Asia (a part of the LVMH Group), the panel saw participation from: Adnan Khan, MD, Accenture; Govind Shrikhande, MD, Shoppers Stop Ltd; Jamshed S. Daboo, MD, Trent Hypermarket Pvt Limited (Star Bazaar); Vikram Garg, Principal, Blackstone.
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Andre Tiwari, COO, PinMeTo
Chitti Babu, CEO, Wirecard
Mayank Mohan, Director, Mohanlal Sons
Raghu Lakkapragada, COO, Voonik.com
Rajiv Nair, CEO, Kaya Ltd.
Rahul Chadha, CEO & Director, RWL Healthworld Ltd.
Sandeep Kulhalli, Sr. Vice President – Retail and Marketing-Jewelry Divison, Titan Company Ltd.
Saurabh Vidyadhar Gadgil, Chairman & Managing Director, PNG Jewellers
Customer satisfaction begets loyalty… Loyalty shapes brand evangelists
“Getting your customers to say that your product is exactly what they need is the best kind of marketing any brand could ask for. And the key to achieving this is ensuring your products deliver total satisfaction value so that the customer stays loyal to your brand.”, explains Andre Tiwari, as he noted the role that customers play in building a brand’s image and value within the market.
As market dynamics evolve and diversify with time, the need for brands to form a strong bond with their consumers becomes even more imperative. Understanding what the consumer wants and being able to deliver a little more than expected forms the key to creating the kind of positive impression that will stay with the consumer for a long time; as Saurabh Vidyadhar Gadgil elaborates “Amalgamating the product and/or service with an experience is what creates brand recall. The most efficient way to go about this is by creating new touch points that would resonate with consumers’ purchase needs, both impulse and intent.”
Ravi Nair speaks about the importance of being innovative in the services that brands offer to the consumers, as he comments “You need offer consumers something unique. There’s a whole big section of the market out there that desire personalized services and products, and brands that fulfill this need are able to deliver the kind of exceptional customer retail experience that creates loyal customers”. Personalized approach forms the crux of the ideal customer retail experience, with several brands adopting a consultative approach in offering their products and services, wherein new age interactive technology plays a key role in encouraging product choice and delivering efficacy in outcome. This has proven to increase the ‘value fetch’ per person with an overall increase in the lifetime value of consumer’s association with the brand.
Paying close attention to qualitative customer life cycle management is one of the key aspects of improving customer experience, and one of the means to do this is to qualitatively listen to the customer’s voice on social media about their experiences and respond it at the earliest. “Using social media to your advantage to leverage your brand’s presence and value is one of the quickest path to growth. Positive engagement of customers, especially online, is key!” asserts Raghu Lakkapragada.
In conclusion, the aspect of qualitative demand fulfilment is what will drive affirmative customer engagement and positive retail experience, all of which will prompt the consumer to act as the brand’s most vital marketing tool.
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