www.indiaretailing.com SEPTEMBER 2015 VOL.14 NO.9 `100 15-16 SEPTEMBER, 2015 RENAISSANCE HOTEL, MUMBAI Where Retail Meets the Technology of Possibilities Take the POS to the customer and influence sales Augmented reality will redefine the retail experience Leveraging social media to optimise sourcing to shelf processes Understanding customer behaviour with the help of retail analytics SE SE SE SE SE SE SE SE S SE S S PT PT T T T T T T T T PT T T T T T T PT T PT T T T T T T T T TEM EM EM EM EM EM EM EM EM M EM EM MBE BE BE BE B BE BE E E BE ER R R R R R R 20 20 20 20 20 20 20 20 20 20 0 20 20 20 20 20 0 20 20 20 0 2 15 15 15 15 15 15 15 15 15 15 5 15 1 15 5 5 VO VO V V V V V VO V V V V V V V L L. L. . . . . .14 14 1 14 14 NO NO NO O O NO N .9 9 e e P POS OS t t to o o s sto tome me er r an an an a d d d in in i fl flue u u u u u nc nc nc nc ce e e e sa sa sa a a sa al l le le l le l s nt nted ed r rea eali lity ty w w wil il l ll l re red de de d de efi fi fi fi fine ne n t the ret t tai ai i ail l l e ex ex xpe pe ri r r en en en en ence ce ce ce c ce GOING OMNICHANNEL ONE GAINS, ALL OTHERS BENEFIT!
Transcript
www.indiaretailing.com
SEPTEMBER 2015 VOL.14 NO.9 `100
15-16 SEPTEMBER, 2015RENAISSANCE HOTEL, MUMBAI
Where Retail Meets the Technology of Possibilities
Take the POS to the customer and influence sales
Augmented reality will redefine the retail experience
Leveraging social media to optimise sourcing to shelf processes
Understanding customer behaviour with the help of retail analytics
SESESESESESESESESSESS PTPTTTTTTTTTPTTTTTTTPTTPTTTTTTTTTTEMEMEMEMEMEMEMEMEMMEMEMMBEBEBEBEBBEBEEEBEERR R R RRR 2020202020202020202002020202020020202002 1515151515151515151551511555 VOVOVVVVVVOVVVVVVV LL.L......141411414 NONONOOONON .99
ee PPOSOS t tto oosstotomemeer r ananana d dd inini flflueuuuuu ncncncncceee e sasasaaasaalllelellel s
ntnteded r reaealilityty w wwilillll l rereddededdeefififififinenen t the retttaiaiiaill l eexexxpepep rirr enenenenencececececce
GOING OMNICHANNELONE GAINS, ALL OTHERS
BENEFIT!
Cover_IR_Sept_15.indd 1 9/11/2015 5:23:19 PM
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India Retail Forum: The epicentre of retail’s renaissanceLet me begin by extending my warm welcome to everyone for being a part of India Retail Forum (IRF) 2015, India’s biggest and one of- its-kind show dedicated to the retail, retail real estate and retail support industries.
India Retail Forum (IRF) delivers exceptional experiences to help your business craft incredible shopping journeys. IRF observes the year 2015 as the era of Retail Renaissance.
IRF is the epicentre of retail’s reinvention in India. This year we have also introduced, India Omnichannel Forum (IOF), which is a concurrent event with the IRF. India Omnichannel Forum (IOF 2015) is a tailored and one-of-its-kind technology forum for business owners, business leaders and technology teams to meet, engage and conceptualise the next-generation of consumer experiences.
The event will also have the much coveted Images Retail Awards (IRA) which recognises the achievements of India’s most successful retailers. This IRF will also witness the debut of IMAGES Retail Technology Awards (IRTA). IRTA will recognise excellence in concepts and formats leading the omni-channel revolution in India.
At IMAGES Group, our sincere efforts have always been to make you aware of the ground realities of today and to update you with the futuristic ideas for tomorrow, so that you always stay a step ahead of the competition. With this, we hope that you will fi nd the September 2015 issue of IMAGES Retail both useful and educative. For those who missed out on the IRF 2015, we will bring a detailed coverage of the event in our next issue.
SEPTEMBER 2015 • PAGES 152 • VOL. 14 NO. 9
ADVERTISING
PRIVILEGE MEMBERSHIP/CONSUMER CONNECT
DELHI : Vineet Chadha, Vice President (Retail Support Group & indiaretailing) Sachin Khanna, Sr. Manager
Editor in Chief .............................................Amitabh TanejaEditorial Director .........................................R S RoyPublisher ....................................................S P TanejaChief Operating Offi cer ................................Bhavesh H Pitroda
14 INTERNATIONAL ROUNDUPGlobal apparel majors are resorting to new methods to gain market share.
22 NATIONAL ROUNDUPApparel retailers in the country are going through a major transitional phase.
30 TRENDSE-commerce apps are fast emerging as the mobile shopper’s best friend.
36 EXPERT SPEAK At the store level, driving decentralized CRM can be a big one.
46 VISION India’s e-retail revolution is radically transforming the way consumers interact with brands.
56 PROPOSITION MPOS is a smartphone or a tablet with a similar system as a POS register used for customer assistance to complete the transaction and drive further sales.
60 INITIATIVE Justransact.com strives to bring in awareness among brick and mortar stores across the country on the advantages of automating POS counters.
62 DESIGN Juhi Santani, Director and Creative Head at Retale Solutions talks to Images Retail on the nuances of innovative approach in retail interiors. .
64 FUNDAMENTALLY Getting the ideal fl oor fi nish might not just depend on the
chosen coating, as every component in the fl oor’s build-up has to be right.
68 IN FOCUS Steep discounting is similar to a price-war to gain market share. However, many players view this as a strategy to create a differentiation in the highly competitive e-retail world.
96 RETAIL EXCELLENCE The Future Group-owned Indus League is known as the new generation fashion brands marketing company, operating multiple brands..
102 PROFILE Founded in 1978 by Dilip Kapur, Hidesign is a lifestyle group, which re-defi ned the vision of luxury in India.
106 ENTREPRENEUR Pondicherry based furniture design store, Home Trotters is expanding its reach to a national level by going online.
78Moving from organised to online, the need for the hour today is to have an omni-channel retail strategy. We take a closer look on what retailers across India are doing in this respect and how IRF (India Retail Forum) 2015 is going to spearhead the knowledge exchange of the strategy that needs to be adopted and changes needed.
IF IT’S RETAILIT’S GOT TO BE OMNI-CHANNEL
COVER STORY
03-Contents.indd 10 9/11/2015 6:46:58 PM
12 . IMAGES RETAIL . SEPTEMBER 2015
SEPTEMBER 2015 CONTENTS
108 CONCEPT Leshna Shah’s spectacular jewellery store - Aurelle in Bandra,
Mumbai is making heads turn for the design adopted for the store interiors.
110 INTERACTION Talking in detail about where the luxury market in India is heading,
Priya Sachdev, Creative Director, Rocknshop.com talks in detail about the futuristic trends that luxury retail industry will witness.
114 REGIONAL RETAILER European Catalogue, one of the most famous retail fashion outlet of western wear for women in Ahmedabad.
116 ONLINE GROCER Navneet Singh, Co-Founder of on-demand grocery delivery service PepperTap, speaks about his company’s plans to establish itself as the foremost player in the hyperlocal e-commerce space.
120 EXPANSION Ajay Dhar, Director, Needs Supermarket, talks about his chain’s unrivalled presence in Gurgaon and his plans to move to bigger format stores in NCR.
124 ONLINE EXCELLENCE American Swan, an online fashion and lifestyle brand, can be best described as youthful, urbane and casually chic.
130 INNOVATION The role of technology needs to be looked at from an entirely different perspective - companies will have to reshape their IT delivery method and leverage disruptive technologies.
134 SOCIAL MEDIA Social media has the potential to radically improve impact across
the entire retail value chain.
138 ANALYTICS Retailers must leverage information in new ways to gain competitive advantage and renew stability in these uncertain times.
140 AUGMENTATION Listening to customers plays a critical role in understanding what needs to be addressed.
144 EVENT The IHGF Delhi Fair-Autumn 2015, being organised by the Export Promotion Council for Handicrafts, at the plush well-appointed India Expo Centre & Mart.
146 STRATEGY As incomes rise, aspirations change and brand awareness
increases among non-metro consumers, an increasing number of international and Indian brands have started foraying into these largely untapped markets
148 INDEX
03-Contents.indd 12 9/11/2015 6:47:38 PM
30 . IMAGES RETAIL . SEPTEMBER 2015
TRENDS
E-commerce has been around for many years now, however being PC-bound meant that it was only accessible to a small section of society. In the past three years all that changed with the explosive growth of smartphones.
Today there are far more mobile-based internet users than PC based internet users.
E-commerce players know this and from the middle of 2014 have been promoting and offering discounts on purchases made through their mobile apps. In order to get users hooked to the app, players are shutting their sites and transitioning users solely to their apps instead. Myntra was the fi rst to execute this in May 2015, and Flipkart has announced plans to follow suit in September 2015.
If 2014 was the year when E-commerce fi nally came into its own in India, 2015 promises to be the year of the mobile shopping app. The Indian shopper is increasingly embracing shopping on the go, spurred by widespread E-commerce campaigns and easy access to smartphones that have seen an explosive growth in penetration. Sale periods are in sync with festivals and public holidays, and along with aggressive app launches and promotions, they have reinforced the growing trend.
The number of smartphone users who use shopping apps has jumped to 54 per cent in May 15, from just 21 per cent a year back. In comparison, the growth in popularity of shopping websites has been moderate, increasing from 28 per cent to reach 45 per cent.
Consumer Trends & Insights In the early days of online commerce, a widespread belief was that women will adopt and drive mobile shopping. However, up until a few months ago, it was actually men who were driving the adoption and growth in mobile shopping. Data from real-time smartphone usage tracking provides insights on consumption patterns of smartphone users and reveals some unexpected facts about the reach of mobile shopping in India.This could be attributed to two key factors: the male appetite for technology and the fact that men are often the ones who make the payment.
The majority of E-commerce products viewed and bought are electronics items, a segment that young men drive. The other possibility is that even when women make a purchase decision, they ask men to compare costs or complete a transaction.
In the past 2 to 3 months however, we see that women have caught up and today they spend 16 mins a month more than men on mobile shopping apps.
By Dolly Jha, Kartikeya Varma, Prithvi Raj and Surbhi Bhardwaj
E-COMMERCE APPS ARE FAST EMERGING AS THE MOBILE SHOPPER’S BEST FRIEND
E-commerce has been around for many years now, however being PC-bound meant that it was only accessible to a small section of society. In the past three years all that changed with the explosive growth of smartphones. Today there are far more mobile-based internet users than PC based internet users.
Trends.indd 30 9/10/2015 10:50:54 PM
SEPTEMBER 2015 . IMAGES RETAIL . 31
Higher Engagement Of E-Commerce Apps In Non-Metros Our data also shows that users in non-metros are slightly more engaged on shopping apps than users in metros. The former has limited shopping alternatives, especially in the electronics and apparel category, although the latter has a higher spending power. The cash-on-delivery option is also a driver of small town adoption for shopper apps.
While time spent is similar across India, it’s not similar across all handset price bands. Specifi cally, users with more expensive handsets, those exceeding `15,000, spend 1.6x the time on shopping apps compared to those with cheaper phones. Higher time spends can be loosely correlated to higher spending power in mobile shopping.
Pecking Order Of Top E-Commerce Brands On Smartphones Flipkart leads in mobile shopping apps both in terms of penetration (35 per cent) and engagement (60 minutes per month). Snapdeal is a close second with a penetration (20 per cent) and a user engagement of 35 minutes a month. Amazon India Shopping, a recent launch from Amazon, has quickly climbed up the ladder to reach the 3rd spot with popularity of 17 per cent.
Jan
14
Feb
1427%
27%
13%
Jan
14
Feb
1427%27%
27%
13%
%%
TRENDED REACH OF SHOPPING CATEGORY
PENETRATION OF SHOPPING APPS (%)
HIGHER ENGAGEMENT OF E-COMMERCE APPS IN NON-METROS
14%16%
18%21%
27%29%
31%
37% 35%
40% 40% 39%41% 42%
45%
24%
29%29%
28%31% 32%
30%32%
38%37%
42% 46%45% 50%
54%
Mar
14
Apr 1
4
May
14
Jun
14
Jul 1
4
Aug
14
Sep
14
Oct 1
4
Nov 1
4
Dec 1
4
Jan
15
Feb
15
Mar
15
Apr 1
5
May
15
JAN’14 - MAY’15
MAY’15
APPSSITES
Sour
ce: N
ielse
n In
form
ate M
obile
Insig
hts -
Indi
a Sm
artp
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Use
rs Pa
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52% 55%
WOMEN SPEND MORE TIME ON SHOPPING APPS THAN MEN
Engagement(Time spent per month
among users); May’15
TIME SPENT BY USERS IN
METROS(> 10 LAC POPn)(MINS/MONTH);
MAY’15
TIME SPENT BY USERS IN NON-
METROS(< 10 LAC POPn)(MINS/MONTH);
MAY’15
TIME SPENT BY USERS WITH HANDSETS
PRICED > 15K(MINS/MONTH);
MAY’15
TIME SPENT BY USERS WITH HANDSETS
PRICED < 15K(MINS/MONTH);
MAY’15
Engagement(Time spent per month
among users);
109 116 113 71
Shopping apps are fast outgrowing website usage, and the gap has widened in the last one year
Men and women engage with mobile shopping for nearly 2 hrs every month
Higher engagement for mobile shopping in small town India
Trends.indd 31 9/10/2015 10:50:55 PM
IN FOCUS
68 . IMAGES RETAIL . SEPTEMBER 2015
Steep discounting is one of the harshest realities of e-retail world. Some call it for a differentiation strategy to stay in fray, while others see it as a glorifying attempt on investors’ funds. By Shipra Srivastava
Most of e-tailers these days depend on steep discounting not only to stay in competition but also to steal
the customer base from brick-and-mortar retailers. But the question is how viable is this strategy in the long run! Can this be their way to become profi table? Speaking on the same, Rashi Chaudhury, Co-founder and COO, LocalBanya says: “Everybody loves a great deal. It is not only about discounts but providing the right offers at the right time. Couple this
WINNING THE PRICE WAR!
with good quality products, good service and after-sales service and you have a strategy. We surely see great numbers on offer days but we have a balance of non-offer sales as well and our average cart size has been consistent for a while now.”
She also informed that apart from ‘discounts’, there are a lot of operational costs attached to each order. One needs to constantly adopt cost-effi cient measures to reduce operational costs and therefore a lower cost per acquisition. Once the CPA is lowered, we have the leverage of offering more discounts.
“Steep discounting is a practice adopted mainly by e-tailers, who reduce their product prices drastically in order to attract more customers. It is similar to a price-war between competitors to gain market share. Primarily, steep discounting or price wars happens in undifferentiated, commoditised markets in which the only decision-making factor for the customer is price (service being similar),” thinks Rishit Dalal, Co-Founder & CEO, Centralmart.in.
He also informs that in the Indian e-tail industry, large horizontal players and new entrants have adopted this practice to gain traction, build customer loyalty and maximise market share. This also refl ects on the price-sensitiveness of the Indian consumer – most online shoppers compare prices of one product on multiple e-tail portals and buy from the one offering the lowest price. The e-tailer hopes that once the customer fi nds the lowest prices on its portal and buys repeatedly, they will stop comparing prices and have much higher loyalty as well as brand recall. Sustained steep discounting also makes business unsustainable for competitors who do not have deep pockets, driving existing players out and creating a strong barrier to entry for new players. Consequently, only one or two large players would survive and prices will normalise.
However, steep discounting comes at the cost of investors’ funds. It is defi nitely not a viable business
In focus.indd 68 9/11/2015 3:14:35 PM
SEPTEMBER 2015 . IMAGES RETAIL . 69
model in the long term and also disrupts traditional, brick-and-mortar businesses who do not have the aptitude and wherewithal to operate in this manner.
Creating differentiation through ‘discounts’ It is one growing notion that steep discounting is the result of undue amount of funding that e-tailers are earning these days. However, many players view this as a strategy to create a differentiation in the highly competitive e-retail world. Quoting similar views, Latif Nathani, Managing Director, eBay India says: “It is not a strategy which can give you stability. It is a bubble which will burst someday or the other.”
“Yes, for sure. Investors’ money needs to be used to get new consumers in a creative fashion or bettering technology or hiring good talent. The current usage of investors’ money for discounting and hence an eroding bottom line is a sure shot way to doom,” feels Samir Saraiya, CEO, ThatsPersonal.com.
He further informs that in highly crowded categories, the need for differentiation is much pronounced. However, since the competition is so intense, he feels discounting is what is being resorted to extensively while the plans to differentiate and come up with unique ideas to stand out from the crowd are limited. Also, the amount of money with a lot of e-commerce players has allowed them to use steep discounting to get new consumers, which to a certain extent is also hampering creativity and the willingness to differentiate.
Moreover, the idea of grabbing the maximum market share and to be the fi rst to do so is also compelling e-tailers to follow the much maligned steep discounting route.
Namrata Kothari, CEO & Co-Founder, Radiant Bay says: “If investors expect high growth in a short period of time, heavy discounting is one of the methods to achieve that and show high sale numbers. Investors are well aware of both organic and inorganic ways of growth, and this is an expectation that
they have to set with the management team. There are a lot of fast growth companies that are now highly valued but have not yet achieved break-even (Uber is an example).”
However, a leading e-tailer, Amazon, has a different take. As per a spokesperson from Amazon: “Prices for products on the Amazon.in marketplace are determined by the sellers. We work hard and continually innovate to offer services such as Fulfi lment by Amazon (FBA) and Easy Ship to sellers on our platform, which enables them to signifi cantly lower their cost of selling and reducing defects as they sell to a nationwide customer base. Sellers pass on these savings as lower prices on the platform. On occasions, to promote our platform, we run marketing promotions.”
“Yes, to a large extent I feel continued heavy discounting offered by e-tailers is non-appropriate use of investors’ money. Unfortunately, most
Steep discounting is similar to a price-war to gain market share. However, many players view this as a strategy to create a differentiation in the highly competitive e-retail world.
o ey o d scou t g a d e ce an etoT
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d s o g srs are well awainorganic ways an expectati
g a d e ce ais a sure shot way ir Saraiya, CEO,
to ac e e t at a dnumbers. Investorboth organic and igrowth, and this is
In focus.indd 69 9/11/2015 3:14:37 PM
COVER STORY
78 . IMAGES RETAIL . SEPTEMBER 2015
IF IT’S RETAILIT’S GOT TO BE OMNI-CHANNEL
Cover Story.indd 78 9/11/2015 4:36:03 PM
SEPTEMBER 2015 . IMAGES RETAIL . 79
So what really is omni-channel retail? To put it simply, omni channel-retail gives consumers a single, holistic view of the retail business through
different channels like – mobile, online and physical stores. But keeping this defi nition in mind, we often wonder if this is not what is happening any which way? Yes. Indeed it is. Any brand worth its salt today willingly or unwillingly has to be present across different formats and channels. If not on their own, then in a partnership or marketplace model, but it is imperative today to have an online and offl ine presence for any brand. The reason is not just to ensure that they do not miss on the constantly evolving and changing habits of their urban consumers but also not miss the opportunity of presenting themselves to consumers in semi-urban and rural locations, who otherwise would not be able to meet them at a physical store. Snapdeal hosts over 11 million products from 100,000 sellers across 500+ categories. Currently, it gets 75 per cent of the overall orders via mobile-based transactions. As much as 80 per cent of the orders for fashion categories come via this medium. With a physical store, would this have been possible? Of course, not!
The journey of organised retail in India is perhaps as old as the journey of the India Retail Forum (IRF). In 2003, when the fi rst ever edition of the India Retail Forum took place, the best of the retail minds from India came together to pave the way for the successful spread and acceptance of organised retail in India, which would co-exist with traditional retail, hand-holding them at each step to keep pace with the changing market dynamics. Twelve years since then, these evergreen minds from the world of Indian retail are now going to embark on another important retail journey in India. Moving from organised to online, the need for the hour today is to have an omni-channel retail strategy. We take a closer look on what retailers across India are doing in this respect and how IRF (India Retail Forum) 2015 is going to spearhead the knowledge exchange of the strategy that needs to be adopted and changes needed.By Zainab S Kazi
Omni-channel retailing allows the click-and-collect option for consumers and this is expected to be the driving force for omni-channel retail in India, which without any exaggeration is poised to take over all forms of retailing in our country.
Images Group taking the leadNeedless to say, at the Images Group, it has been a constant endeavour to ensure that retail in India is always a step ahead of what might come next. Keeping this in mind, at the 12th edition of the India Retail Forum (IRF) 2015, the group shall also have the inaugural edition of India Omnichannel Forum (IOF 2015), which will focus on Customer-Centric Commerce – Engage, Experience, Enable. IOF 2015 is a tailored and
one-of-its-kind technology forum for business owners, business leaders and technology teams to meet, engage and conceptualise the next-generation of consumer experiences. Enriching the quality and expanse of retail experiences across physical and digital worlds through intuitive consumer engagement and technology enablement is the vision of the IOF. Mirroring this vision, this inaugural year’s theme will be ‘Consumer-Centric Commerce’. What better could have accentuated this than the tag line for the event which reads – ‘Know Everything in Retail, Know Everyone in Retail’ – and what better way to boost the morale of the retailers who are technologically one step ahead and leading the way than to confer them with an award for the same.
