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Showing posts with label Retail. Show all posts
Showing posts with label Retail. Show all posts

Sunday, April 13, 2014

It's for you and your Mom... From Mahindra Retail


Clado: Who's 'me' here?
...
Clado: Of course, a kid.
...
Clado: So the kid is saying, 'this is for Mommy and me'.
Ana: They have good stuff. I thought it was a children's store. But they have stuff for women of all ages.
Clado: Same here. Always thought it was a children's store.
...
Clado: May be they think it's easier to get women to walk in on the pretext of checking out kids' stuff, and then as a surprise, buy for themselves too since the stuff is good, as you point out.
Ana: Yeah, I was surprised.
Clado: But then, if what I say holds, only women with really small kids would walk in. A woman without kids, what would she sense? She doesn't get the idea instantly, I'm sure.
...
Clado: Anyway, is the retail store a rugged one?
Ana: What! Rugged?!?!

Friday, May 16, 2008

Reliance Fresh: Brand Names, Extensions and Troubles

Here's against mindless extensions.

Organized Retail - of all kinds - is booming in India. And all kinds of companies/ individuals have ventured/ have plans to venture into the sector. Notably the big conglomerates like Tata, Reliance, Aditya Birla, etc. Not that they've restricted themselves to one kind of format. They are exploring all sorts of formats and in different product categories.

Is the above paragraph a little vague. How could it have been any clearer; it's just a reflection of the way things are happening? And the initiatives taken by some big conglomerates haven't been without their share of troubles.

Reliance Group named its grocery retailing (dry and wet) chain Reliance Fresh. Just at the same time Aditya Birla Group also opened its grocery retailing chain under the name More. There's another chain of grocery retail stores - Spinach - which opened within the same time-frame. And of course, Subhiksha was already there. There must be other chains too but not so well-known.

All these chains of stores are doing the same thing. Giving a bigger and better shopping experience for your daily needs while charging almost the same (in certain product categories even less) as unorganized retailers/vendors. In effect, replacing the latter or taking a substantial chunk of their business. No wonder, they (More, Reliance Fresh, Spinach, etc.) would face resistance from the affected community. But it wasn't 'they', it was just Reliance which was at (or got sucked into) center of the storm. And one of the reasons is the name 'Reliance'.

What about it? Reliance has gone about branding each of its business areas as 'Reliance _______'. Until the point the company got into sectors (with the name 'Reliance') which were new, niche or additional to the economy, everyone smiled. The moment it sought to replace (under the brand name Reliance) an existing business community, it faced resistance. Obvious isn't it? A threat to your subsistence would make you sit up and react, won't it? Unorganized retailers/vendors did the same. Natural! More so when it is India, where people try so hard to live a simple life.

Reliance is perceived to be massive. All know what it is. They might not be aware of the numbers but they know its might. You might not know how heavy an elephant is, but you know its might when you see it. Indeed, when it got into grocery retail, small vendors would've shuddered thinking about the loss of business. They know the power of 'Reliance'. Here's where extension of the brand Reliance creates problems.

What if the chain was called 'Morning Fresh'? What if the brand 'Reliance' were simply kept away from the chain store brand. Perhaps, it wouldn't have stirred the imagination of small vendors/retailers so violently. They would've known the adverse impact but would've just considered it like 'More' or 'Spinach'. The moment one hears Reliance, it only conjures up an image of elephant - huge, massive, dominating. When it gets mad, it is trampling! Not just that, Reliance name has become all pervasive. Wherever you go, you find something that is Reliance. Is it a God? Is it trying to play God? We don't know but people might think so; they'll react in the same spirit - in the way they best know. Medium is the massage. When all the places are painted with Reliance and all the places you buy from become Reliance, I'm sure you're gonna lose it one way or the other.

So, it would have been more appropriate, for various reasons, for Reliance to use a different brand name, especially when it seeks to so conspicuously replace the existing businesses and small businessmen. Telecom was new (new in people's lives), something additional. Naming it Reliance brought in kudos for the company. Context matters. Understanding the context matters as much.

Monday, April 7, 2008

What's the aura around Orra!

Yesterday evening, I visited the Hiranandani Galleria - Powai. The market has quite a few jewellery shops, one of them being en exclusive Orra outlet. As you can see in the picture, Orra says it is THE DIAMOND DESTINATION.

Firstly, it 's a rather weak differentiator (in fact, it is no differentiator at all). Aren't there plenty of shops around dedicated to making and selling diamonds and diamond jewellery? If they are satisfying the consumers well, who needs an Orra? At best, Orra will do only as well as other diamond stores are doing or perhaps a tad better since it spends a hell lot of money into mass-marketing (though I have my doubts how effective mass marketing turns out to be in jewellery).

Now specific to my visit yesterday, I noticed that the Orra outlet was running a 25% discount on all the products! 25%! Imagine. Where buyers in India are so accustomed to calculating the worth of their jewellery by calculating the weight of the metal and precious stones used (because they are actually precious!), here there's a brand which offers 25% discount on nothing less than pure diamonds. In which case, what is the consumer likely to think? That Orra was charging unreasonably high to begin with? Or, that the quality of metal and diamonds is rather dubious?

If these are thoughts that arise in mind, a jewellery brand is doomed. A local jewellery shop runs on a lot of trust. How many times have you seen your local jewellery shop run a discount scheme? Not very often. If it starts running discounts to the tune of 25%, will you trust it in the same manner as you earlier did? Perhaps not.

Orra's aura doesn't seem so blemishless.

Monday, December 31, 2007

A tale of two bookstores - Crossword and Landmark

When I started as a serious 'serious book reader', I had only one resort - Crossword - to satiate my appetite for reading. I was young and I was relatively less knowledgeable about many things/subjects in life. The two things I had were curiosity and a past full of collecting magazines and story books. Wayne W. Dyer's "The Erroneous Zones", which I picked up from a second-hand roadside book reseller, got me initiated and from then I was regular at Crossword.

Starting with typical self-help-cum-psychology books I drifted towards reading more cross-disciplinary books. The more I read, the more I found Crossword inadequate for my tastes but I somehow managed to stay loyal until the time I went to Bangalore for some official work. I landed in Landmark for the first time and it definitely seemed to have more titles than Crossword. However, Landmark wasn't present in our town and that led me to look for books online. That's when I became a customer of fabmall.com (now called indiaplaza.in). And they've got some darn good business from me.

Tired of shopping (not really shopping, it's the waiting period) books online, I started visiting Crossword again. On a couple of occasions when I again didn't find the desired titles, I visited Landmark and bingo! I got the titles I was looking for. Yesterday again, I visited Landmark and got all the stationery and titles that I wanted but couldn't find in the local stores or Crossword.

Landmark is a category killer in books, stationery, music, toys and movies and certain gifting items. Crossword, though just a bookstore (at some stores stocks toys too) doesn't have the depth in its inventory. Looking at the store evolve all these years, it seems that Crossword just stocks the popular or run-of-the-mill bestsellers. Crossword is bent on increasing the number of its stores (it has a total of 45 stores nationwide) instead of the number of titles at its stores. Landmark on the other hand, has been relatively slow - it has only 9 stores nationwide - but stocks a great number of titles which makes it a great bookstore destination.

If the two bookstore brands keep to their strategies, Landmark will evolve to become the category-killer in books while Crossword will go on to be perceived as a corner bookstore with a collection of popular books. Who'll win? Landmark's depth in inventory will definitely appeal to amateurs (aspiring to build an image of serious reader) as well as bibliophiles (serious readers and book collecters). Any doubts? I don't have any.

Online Indian bookstores might outdo both. Search for the right book on amazon.com, then visit indiaplaza.in and order for the book; you'll get it cheaper.