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Panel Discussion on Creating Channel Supremacy the Multichannel Way had experts from retail chains in South India brainstorming & discussing the trends on retail industry, especially in the context of multichannel retail.<\/p>\n

Panelists in this session were:<\/p>\n

Suraj Shantakumar, Director Business Strategy, Kirtilals<\/p>\n

Sunil Sanklecha, MD, Nuts & Spices<\/p>\n

M. Ramakrishnan, MD, Thulasi Pharmacy<\/p>\n

Zarook Shah, Director, The Grand Mall<\/p>\n

Moderator: Sastry Subrahmanya, Director, PWC<\/p>\n

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This is what the panelists had to say:<\/p>\n

Question: What is your view on multi-channel?<\/span><\/b><\/p>\n

Suraj Shantakumar, Director Business Strategy, Kirtilals<\/span><\/b><\/p>\n

“Multi channel maturity is a function of business maturity.”<\/span><\/i><\/b>
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\u2022Our business is about high value diamonds and gold.\u00a0 Our key value proposition is personalized service \u2013 which social media to an\u00a0 extent excludes.<\/p>\n

\u2022Our definition of multi channel includes : Direct to home for personalized\u00a0 shopping; roadshows and exhibitions for the store catchment.<\/p>\n

\u2022We\u2019ve developed\u00a0 Special design lounges –\u00a0 an IPAD app \u2013 which customers can use to BYOJ (Build Your Own Jewelry)<\/p>\n

\u2022This App \u2018aggregates\u2019 range across all stores \u2013 and creates an \u2018endless aisle\u2019 for customers.<\/p>\n

\u2022 We are present online and on social media but these are for \u2018display \u2018 purposes.<\/p>\n

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M. Ramakrishnan, MD, Thulasi Pharmacy<\/span><\/b><\/p>\n

“Multi Channel for us is events which increase customer engagement.<\/span><\/i><\/b>\u201d<\/span>\u00a0<\/b><\/p>\n

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\u2022We run a chain of 39 pharmacy stores all over Tamil Nadu.<\/p>\n

\u2022We use health camps as a way to engage with the catchment.\u00a0 Strategic PR exercises.<\/p>\n

\u2022We are present online \u2013 but to give information,\u00a0we do not have an e-commerce enabled website as yet.<\/p>\n

\u2022Since our Target Audience are usually above 60 our multi channel and technology choices reflect that.<\/p>\n

\u2022Home delivery \/ prescription reminder services \/ email marketing are our version of \u201cmulti channel\u201d<\/p>\n

\u2022Because we deal with health and because our target audience is older;\u00a0 customers have concerns on privacy and security of online transactions.<\/p>\n

\u2022We have found that loyalty programs based on purchase patterns have met with some resistance \u2013 but discount based programs have been successful.<\/p>\n

\u2022Social media is a good channel for the neutraceutical side of the business. In addition, touch-screens in-store help to educate about usage \/ side effects of drugs.<\/p>\n

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Question: How is the customer expectation influence retailers choice of channel?<\/span><\/b><\/p>\n

Zarook Shah, Director, The Grand Mall<\/span><\/b><\/p>\n

\u2022We run a mall in Chennai \u2013 we are a neighborhood mall, and are in the shadow of Phoenix Market City who are much larger than us.<\/p>\n

\u2022In addition, we also have an analytics \/ Ux company (Ux = User eXperience)<\/p>\n

\u2022Customers are jumping online at the first opportunity \u2013 so retailers have to think multichannel.<\/p>\n

\u2022Use interactive technology to present SKUs and range not available in store \u2013 using mobile technology.<\/p>\n

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Sunil Sanklecha, MD, Nuts & Spices\u00a0<\/span><\/b><\/p>\n

\u2022We are a chain of gourmet food stores.\u00a0 Our Retail stores are a channel for the family business of dry fruit.<\/p>\n

\u202223 stores in Tamil Nadu. Present online and on social media<\/p>\n

\u2022Created the online store to cater to customers who had moved outside the state.<\/p>\n

\u2022Most online retailers focus on price discounting as a way to drive traffic.\u00a0 The trade-off is price v\/s experience.\u00a0 Online channels cannot provide the same experiential feel.<\/p>\n

\u2022Depending on which markets and customer segment \u2013 most retailers need both. It\u2019s not an \u201ceither \/ or\u201d thought process.<\/p>\n

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Online channels appeal to the \u201cleft\u201d brain, brick and mortar to the \u201cright\u201d brain. One is quantitative and price based \u2013 the other is experiential. – Sastry Subrahmanya, Director, PWC<\/span><\/b> (Moderator)<\/span><\/b><\/b><\/p>\n

Zarook Shah, Director, The Grand Mall<\/span><\/b><\/p>\n

\u2022As a neighbourhood mall we have found social media far more useful than mainline print \/ media advertising.<\/p>\n

\u2022Email marketing and aggregating offers of all our tenant retailers\u00a0 has helped us personalize our offering to the catchment.<\/p>\n

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Audience Question: How much should you spend on online advertising ?\u00a0<\/span><\/b><\/p>\n

\u2022We spend 2 to 3% of turnover on advertising. Of that about 20% is for online advertising.\u00a0 (Sunil Sanklecha \u2013 Nuts \u2018n\u2019 Spices)<\/p>\n

\u2022We\u2019ve found that a combination of social media \/ flyers works better than a radio \/ print media mix (Zarook Shah \u2013 Grand Mall).<\/p>\n

\u2022Our industry is regulated. We use PR \u2013 not advertising. We run a \u2018handwriting\u2019 contest which covers 100,000 children and helps us connect with the community.\u00a0 Our advertising budget is miniscule – 0.2% of turnover.\u00a0 (M. Ramakrishnan, MD, Thulasi Pharmacy )<\/p>\n

\u2022Online advertising is nascent for jewelry industry, we use a traditional ad budget \u2013 mostly in print and hoardings. (Suraj Shantakumar, Director Business Strategy, Kirtilals)<\/p>\n

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Summary<\/span><\/b>:<\/p>\n

All brands need an online presence to be able relevant to the customer. \u00a0– Zarook Shah, Director, The Grand Mall<\/p>\n

When you go online is a function of investments and bandwidth – Sunil Sanklecha, MD, Nuts & Spices<\/p>\n

If you can\u2019t use technology \u2013 be prepared to go out of business – M. Ramakrishnan, MD, Thulasi Pharmacy<\/p>\n

Keeping customer experience consistent across channels is key. \u00a0– Suraj Shantakumar, Director Business Strategy, Kirtilals<\/p>\n