Designed to enrich spaces and lifestyles, EKA’s products are handcrafted from natural materials and sourced directly from traditional artisans, NGOs engaged in preserving Indian art forms or select manufacturers who custom craft products. Many of the products are exclusively featured – EKA features handcrafted furniture, carved icons, stylized sculpture, apparel, accessories, jewelry and incense. The target audience is the “Global Indian” segment as well the expatriate community in Bangalore.
Having spent 5 years in a ‘corporate communications’ role, Kimiko started EKA 14 years ago- a 1000 sq. feet store at Ulsoor in Bangalore. Since then, she has opened a larger (5000 sq. ft.) store at Jayanagar in Bangalore, and believes that the Bangalore market can absorb up to 6 such stores.
Sustainable Design
The Ulsoor store was redesigned to a ground floor property with an open floor plan. Store layout is designed to showcase product, the ‘star’ of the show. Kimiko’s objective was to create flow which showcases to Indian sensibilities, and invites customers to engage with the merchandise. Layout in the store is clean and functional, with multiple focal points.
Shelving is based on ‘slat-wall’ – this avoids a ‘hardware’ steel and chrome look, and is flexible for different sized product ranges. Materials used including paint, glass and the floor are eco-friendly, maximize the use of natural light, and have the added advantage of saving up to33% on power bills.
EKA has invested in design, and hired DFC (Design for Change) for the Ulsoor renovation.
The move paid off, and Eka was included among the 60 most exciting and successful small stores – handpicked from around the world. The store was featured in ‘Retail Spaces’ – published by the editors of Retail Design International– in 2012 and 2013.
The constraints of Exclusivity
EKA’s focus on one-of-a-kind product does create some constraints. It’s not always possible for the company to tap into the lucrative Corporate Gifting market. “Most corporates want ‘one-of-a-kind’ merchandise in bulk – but they usually wait till the last minute to place their orders. Since we deal in genuinely exclusive merchandise, lead times are long.”, says Kimiko. The company has not created a catalogue for the same reason.
Kimiko spends most of her time sourcing product. Her supply comes from traditional artisans, other designers as well as the surplus stock of international exporters. Customers expect stock to be exclusive and different. That means greater pressure to refresh and replenish design. As a consequence, she spends half her time travelling to fairs, exhibitions and meeting with NGO’s and artisans guilds to source product. Her experience has been variable – some of the NGO’s and guilds are unable to deliver steady quality, some are able to design to specification. Export surplus stock is another source of product – and she works with companies who are focused exclusively on overseas market. “EKA absorbs their surplus stock”, she says, “They know that they cannot hold surplus inventory, as the local market will copy design. By working with us, it creates a win-win – we get great quality product and they get a channel to dispose surplus stock”.
Finding good people has been a challenge. “It’s not easy to attract and groom good store managers”, she says. Store operations are lean – a senior manager / assistant manager and one or two sales staff. “We need people who are genuinely passionate about ‘ethnic’, design, and the concept of exclusivity. They need to be able to hold their own in conversations with our customer segment who are typically, up market, and cosmopolitan in their outlook”.
Business priorities
Current business priorities are around creating a multi-channel offering. “One-of-a-kind design means that I have to block inventory for the online channel”, says Kimiko. “We are also learning how to price for the online channel – unlike other e-tailers, we don’t discount. By definition, exclusivity means a price premium. In addition, our merchandise is not ‘delivery friendly’ and we don’t build inventory”. She believes it’s possible for a market like Bangalore to absorb an additional 4 stores and a few ‘satellite’ or mini branches.
Funding to build scale is a second priority. Kimiko does not intend to raise money from Angel / VC funding in the near future. “If I raise money now, I will have to dilute the brand at a valuation which is not yet attractive. We are keen to grow at our own pace, and build a brand based on our core value of exclusivity and product”, she says.
Building Brand India
Growing the brand beyond the city of Bangalore and becoming a national brand is Kimiko’s vision for EKA. “I see a future in which Eka could be the brand you equate with the values of ‘Ethnic’ and ‘Indian’. Our products are not mass produced or freely available, yet we represent Ethnic India. I want to grow our brand beyond Bangalore and be the top-of-mind brand, when people think about ‘Indianness’. Our passion is to work with designers who are ready to invest their skills into the magic that Eka creates”.
RLS saw the release of 7 Knowledge reports. Key insights are highlighted here – full details are available at http://rls.net.in/Knowledge_Zone.html
RAI – TCS: Retail Operations Benchmarking Excellence Survey (ROBES)
There has been an increased e-commerce adoption by consumers during 2013. Brick and Mortar retailers have begun to view multi-channel strategically, instead of considering their e-tailing counterparts as price predators. This report benchmarks the multi-channel practices of 40 Retail brands against e-tailers. Key insights which emerged:
For brick and mortar retailers, multi-channel is about “on-demand retailing” – about giving the consumer better access and deeper range. Unlike their ecommerce counterparts, it is not a ‘pricing’ game: most retailers have a uniform pricing policy across all channels.
RAI-KPMG: Emerging Consumer Segments in India
This report identifies new segments of consumers including – the urban time starved consumer, the rural ‘windfall’ consumer, the “Value conscious” customer etc.
Key insights:
RAI-AIMIA India Millennial loyalty survey
Millennials are defined as those between the age of 19 and 29, and are expected to be the generation that will force brands to change the way they build sustainable customer loyalty.
AIMIA loyalty survey profiles the buying habits of this segment of customers. Key insights:
RAI –PWC: Total Retail: A change is underway
This quantitative survey of 1000 Indian online consumers profiles buying habits. Key insights:
RAI-GP2WW: Great Places to Work in Indian Retail
This ‘first of a kind’ report surveyed 50 retailers to answer the question “Which retailer is the best employer?”. The Great Places to work with uses a proprietary framework which includes employee surveys and interviews as well as representations from management.
Lifestyle International emerged as the top retailer in India, followed by Titan and Shoppers Stop.
RAI –JLL: Emerging trends in retail spaces
This report profiles cities which are emerging as retail destinations in Tier 2 India.
RAI – WWF: Sustainability in India Retail
This report profiles global practices by retailers in terms of creating sustainability in the supply chain and business practices. Key insights:
]]>
This gives rise to the obvious question “Why focus on sustainability?”
The word sustainability connotes a pollution free world. This can be achieved when energy consumption is minimized, carbon foot print reduced and employees have a healthy work environment. To achieve this, retailers need to mend the supply chain system, revamp stores and distribution centres and minimize waste generation.
The background
The Switch Programme developed by European Union helps retailers adopt sustainable supply chain practices. Switch stands for switching to sustainable consumption and production practices.
The objective is to create and understand change through the comparisons of ‘pre’ and ‘post’ metrics. Change is required in the upstream value chain, where a number of suppliers and vendors collaborate, to downstream of the value chain – where the consumer is impacted.
To implement change on this magnitude, the Switch Asia Programme, a regional programme, is running the Green Retail Project of four year duration in India. The Green Retail Project, funded by the European Union (EU), is spearheaded by CII along with the four partners, Retailers Association of India (RAI), Asia Society for Social Improvement and Sustainable Transformation (ASSIST), Austria Recycling (AREC) and Stenum ASIA.
Focus: Food & Beverages
Like other industries, retail has taken its share of the blame in impacting the environment. As the sector grows this impact becomes severe. For example: the Food & Beverage (F&B) sector, which accounts for 60% of retail business, is the most energy intensive industry in India.
Ms Seema Arora, Director of Green Retail Project, says, “In the F&B sector, 40% of products go to waste either in supply chain operations, retail outlets or consumer use phases. This is a huge number, indicative of inefficiencies in the system and has direct financial implications – cost, production output and sales. Even if we are able to address these two big sustainability impacts of the chain, it is not complete until we work with consumers and society in getting them to use more sustainable products towards improving their lifestyle. To achieve this, retailers have to provide products that are more sustainable than the norm in their manufacture, use and disposal – this requires close collaboration with supply chain members – and also generate awareness, communicate and educate consumers in going for a more sustainable option. Creating a shift in consumers’ mindset is a hard but extremely important task that the retail industry has to undertake.”
Future focus:
India has adopted National action Plan on Climate Change (NAPCC) in 2008 to implement integrated strategies for achieving key goals in the context of the climate change. The eighth National Mission is the core mission of NAPCC which is coordinated by the Mission on Solar Energy and Energy Efficiency. As an extension of the national plan, state level action plans have been drafted and deployed at various level of governance aligned with the eight National Missions. “India has announced a domestic goal of reducing the emission intensity of its GDP by 20-25 per cent of the 2005 level by 2020. This will be achieved through a multi-sector low carbon development strategy,” says Ms Arora.
Woodland’s concern for the planet
Religare Healthworld slashes the use of paper
Eco-friendly approach by Yum! Brands
The Body Shop way to sustainable causes
Sustainability gifts every 11th store “free” – to Mahindra Retail
Energy Efficiency helps save Rs 6.8cr per annum for Shoppers Stop
]]>
GLOBAL PRACTICES IN PROMOTING ENVIRONMENTAL SUSTAINABILITY
Purpose of Study
The purpose of this study is to enable a better understanding of environmental sustainability among Indian Retailers. In order to catalyze Indian retail towards innovative solutions, the study highlights a broad spectrum of tangible global examples, where sustainability practices have resulted in positive economic and environmental benefit.
Key Sustainability Initiatives by Global Retailers
Wal-mart earned $231 mn from diverting 80% of its waste from landfill. It sold the materials within its waste stream to earn profit that is typically achieved by its 50 superstores.
Harish Jakhar, a technician from IKEA, made the IKEA’s popular lamp TEXTUR 34% cheaper than the original one. He eliminated 24 out of 33 components from the lamp, which reduced the weight of the lamp by almost 50%. He also reduced the packaging weight by 28% and changed its fabric covering. The new lamp ‘VIDJA’ was not only cost-efficient, but also sustainable.
Marks & Spencer has over 40 Lower Energy Stores based on LED technology. Use of LEDs in stores has improved the total energy effi ciency across its stores, offi ces and warehouses by 28 per cent to 41.5 kWh/sq.ft. (2006/07: 57.4 kWh/sq.ft.)
Key Sustainability Initiatives by Global Retailers
Tesco saves over 270 mn pounds a year on energy costs by using energy efficiency measures that it has taken across the group since 2006
Carrefour spends over half a billion Euros per year on its stores’ energy needs. To increase the efficiency and to reduce this expenditure, Carrefour implemented an energy efficiency programme across stores due to which the Group’s energy requirement dropped by 22% (compared to 2004 levels) in 2011. This helped Carrefour save almost 110 million Euros per year. The cost of this programme was some 30 million Euros a year.
Caring offer distinctive benefits that respond to people’s needs, show concern in times of crisis
Key takeaways for improved environmental sustainability
Key takeaways for improved sustainability in Retail
]]>
From L to R: Surender Gnanaolivu, Executive Vice President and Head – Marketing,
Brand Experience and Store Development, Mahindra Retail Pvt Ltd; Siddharth Bindra, MD, BiBa; Sudhir Soundalgekar, CCA & Head Lifestyle & Specialty Projects, Shoppers Stop Ltd
Opening Remarks
Moderator: Ravi Singh, CEO & Secretary General WWF
• The world is today consuming 1.5 planets worth of resources annually.
• Demand for certain commodities such as palm oil, milk and beef (buffalo meat) is threatening India’s biodiversity.
• Owing to its direct contact with consumers, the retail industry is in a position to drive change towards sustainability.
• Experience with mature markets shows that the ‘tipping point’ towards structural sustainability is when consumers adopt and are willing to pay for sustainable products.
What are your initiatives towards sustainability?
• Our sustainability initiatives are driven by decisions that make business sense.
• Three objectives for sustainability initiatives:
1. Reduce Energy: overall energy spends down by 15% by using LEDs lights
2. Reduce Emissions: changing air conditioning filters regularly; reducing carry bag usage; reduce travel by using video conferencing.
3. Reduce Resources: reusing and resizing building fixtures, saved 18% maintenance costs.
• This disciplined approach to sustainability has ensured cost savings every 11th store free.
Surender Gnanaolivu, EVP, Mahindra Retail
M&M sustainability ethos at a group level runs deep. The challenge was to adapt to Retail.
What are your initiatives towards sustainability?
• Typically manufacturing processes such as printing release a lot of effluents. So we try to maintain a control on that.
• Textile plant use chemicals which are environmentally friendly because they also cater to the European market. Have had these extended to India.
• Progressive standards in manufacturing, are being applied by default, to the Indian market.
Siddharth Bindra, Owner, BIBA
We are launching a range of organic cotton to gauge customer willingness to adopt and pay a premium.
What are your initiatives towards sustainability?
• Sustainability was driven top-down, by business requirements.
• Reduce: Lighting / Air conditioning. As power tariffs increased, there was pressure to reduce usage.
• Reuse: Rainwater harvesting / Storm water drainage based reuse of water resources for air conditioners.
• Recycle: Focus on recycling paper
• Results: 60 lakhs units of power saved by Shoppers Stop Ltd. = to Rs 6.8 crores per annum. Equal to one store “free” given to management per annum.
• Saved 84 mio pages to date through initiatives to recycle paper.
• Carbon footprint – saved 10 metric tons of carbon footprint.
• Carbon footprint benchmarks:
• Comparable with international retailers such as M&S and Walmart.
Sudhir Soundalgekar, Projects Head, Shoppers Stop
If there is a policy – driven top down – then sustainability is easy to implement within a company
How can the entire retail supply chain be made sustainable?
“There are no government
regulations in this regard as yet.
So the industry must take the lead in educating customers to make environment-friendly choices.”
– Surender Gnanaolivu, Executive Vice President and Head Marketing, Brand Experience and Store Development, Mahindra Retail Pvt Ltd
“We need to partners with vendors. The industry needs to explain the cause of sustainability to the people we source from and encourage them to observe our policies.”
– Siddharth Bindra, MD, BiBa
“Firstly, consumers need to be motivated to believe in the cause of sustainability. Secondly, the retail industry needs to incentivise and evangelise intelligent methods of resource consumption.”
– Sudhir Soundalgekar, CCA & Head Lifestyle & Specialty Projects,
Shoppers Stop Ltd
]]>