I just came across a very powerful insight on retailing Fresh Vegetables by Prasenjit Ray in Economic Times, Pune today.
http://economictimes.indiatimes.com/News/News_By_Industry/Services/Retailing/Selling_vegetables_is_a_different_ball_game/articleshow/msid-2316273,curpg-2.cms
I am glad that Mr.Ray has been able to bring about a different perspective since retailing fresh vegetables is now becoming the lead for every Food & Grocery retailer in India and this is becoming a key footfall driver for all such retailers after the launch of Reliance Fresh across the country. Mr.Ray has given very useful hints on customer expectations while buying Fresh Vegetables and if some of these are taken seriously it can lead to a new era of shopping experience for Indian Consumers.
Now since enough of retailing models are operational some consumer oriented thinking on part of retailers and researchers will be help us to bring about required changes to suite Indian consumer needs and expectations. At this moment all retailers are more focused towards rolling out new stores since consumers are welcoming new outlets for their own convinience. Once the same consumer starts facing multiple choices, this factor of shopping experience will becomme critical for stickiness.
I have spoken to many regular shoppers in a particular catchment in Pune, Reliance, Spencer's, True Mart & More within 500 mts of each other, and they have been switching between these brands looking for better offers and more convinience. It is generally experienced that though these stores are very conviniently located but a composite package of price, freshness and experience is still lacking.
Tuesday, August 28, 2007
Friday, August 17, 2007
IN-STORE ADVERTISING
I came across a feature called Off the Shelf by Ashley Coutinho in the Brand Equity issue of 8 August 2007. It indicated that in-store advertising is now becoming an important component of the Indian Modern Retail industry. Though I know this to be true, unfortunately this article only speaks of how retailers can use the media of in-store advertising to create additional revenue opportunities. What is missing is the important message that this media can and should be used by retailers to improve their in-store sales revenues.
Keep your customer’s shopping time and attention focused on your products and services:
Shoppers visit stores with a list of products or brands to be bought. If you set up an effective media of communication inside your store, you will be showing them attractive options and also helping them to add more items to the list.
Shoppers also allocate limited time to the process of shopping and naturally would like to get the best value of time and money spent.
When retailers rent advertising space in Gandolas and in-store TV displays, they are creating advertising hoardings in their stores, but these hoardings usually would advertise merchandise not sold in their stores. By doing this, you may add a fractional amount to your top line, but you are losing much more by diverting your in-store consumer’s attention towards some third party merchandise and services and taking away their shopping time. This directly affects the shopping basket of the consumer since you have interrupted the consumer from shopping focus to other products and services offered in your store.
Your core business is retailing, not advertising!
Remember you are in the retailing business and not advertising. A consumer visiting your store is a big opportunity for you and you must make the best of it by selling more. Don’t waste their in-store time in showing them advertisements of third-party products. Your long-term relationship with this consumer will depend on how you can keep giving them higher value of their time and money spent with you.
Advertise your own promotions, schemes, and special production information:
I have a range of reports from global researchers which show the importance of using every possible in-store media to communicate with in-store consumers to enhance their shopping lists.
Very often, even regular customers are not aware of the on-going promotions and schemes in their favorite store and they often miss the opportunity to make the best of them. You can use in-store digital kiosks very effectively to remind your consumers of various promotions, schemes and offers to make some supplementary shopping decisions and this will lead to an enhanced shopping basket and higher retailing revenues from the same number of shoppers. This practice has been implemented very successfully by all customer-friendly retailers globally.
Motivate your own staff with in-store displays:
You can also make use of this media for a daily update and training inputs to your store staff for new items on the shelves, new prices, new promotions and schemes, and new processes and systems. This will keep your store staff on their toes and updated while serving their consumers.
Thoughts endorsed in the Brand Equity feature by various leading retailers are not in line with global practices. What is represented in the feature is a mini-phenomenon which has arisen from a need to feel that one is earning without investing. However, this approach will only lead to short-term gains.
Retailers who invest in their own in-store digital media infrastructure rather than renting their store space to advertisers will always have an upper hand. They can use this infrastructure to communicate effectively with their customers and store staff, and bring them the long-term multiple benefits of a more focused shopping environment, higher basket value, customer loyalty and lower attrition.
Keep your customer’s shopping time and attention focused on your products and services:
Shoppers visit stores with a list of products or brands to be bought. If you set up an effective media of communication inside your store, you will be showing them attractive options and also helping them to add more items to the list.
Shoppers also allocate limited time to the process of shopping and naturally would like to get the best value of time and money spent.
When retailers rent advertising space in Gandolas and in-store TV displays, they are creating advertising hoardings in their stores, but these hoardings usually would advertise merchandise not sold in their stores. By doing this, you may add a fractional amount to your top line, but you are losing much more by diverting your in-store consumer’s attention towards some third party merchandise and services and taking away their shopping time. This directly affects the shopping basket of the consumer since you have interrupted the consumer from shopping focus to other products and services offered in your store.
Your core business is retailing, not advertising!
Remember you are in the retailing business and not advertising. A consumer visiting your store is a big opportunity for you and you must make the best of it by selling more. Don’t waste their in-store time in showing them advertisements of third-party products. Your long-term relationship with this consumer will depend on how you can keep giving them higher value of their time and money spent with you.
Advertise your own promotions, schemes, and special production information:
I have a range of reports from global researchers which show the importance of using every possible in-store media to communicate with in-store consumers to enhance their shopping lists.
Very often, even regular customers are not aware of the on-going promotions and schemes in their favorite store and they often miss the opportunity to make the best of them. You can use in-store digital kiosks very effectively to remind your consumers of various promotions, schemes and offers to make some supplementary shopping decisions and this will lead to an enhanced shopping basket and higher retailing revenues from the same number of shoppers. This practice has been implemented very successfully by all customer-friendly retailers globally.
Motivate your own staff with in-store displays:
You can also make use of this media for a daily update and training inputs to your store staff for new items on the shelves, new prices, new promotions and schemes, and new processes and systems. This will keep your store staff on their toes and updated while serving their consumers.
Thoughts endorsed in the Brand Equity feature by various leading retailers are not in line with global practices. What is represented in the feature is a mini-phenomenon which has arisen from a need to feel that one is earning without investing. However, this approach will only lead to short-term gains.
Retailers who invest in their own in-store digital media infrastructure rather than renting their store space to advertisers will always have an upper hand. They can use this infrastructure to communicate effectively with their customers and store staff, and bring them the long-term multiple benefits of a more focused shopping environment, higher basket value, customer loyalty and lower attrition.
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