The BTL Life: India

Showing posts with label India. Show all posts

Thursday, October 18, 2012

Seamless shopper experience is a must.

According to Google, 62% of shoppers used a smartphone in a store (in the US) to help with shopping research last year, indicating that retailers should aim to inform in-store purchase decisions with mobile apps or sites that are optimized for mobile.

Google says that, as far as online goes, video is becoming increasingly powerful in many categories, as far as discovery.

Mobile, is another big opportunity, not just because you can drive conversions, but so many people come to retailers through mobile. The key is not to have a disconnection between your mobile experience and your desktop web experience as a retailer. Consumers should get a familiar and seamless experience no matter what screen they’re on.

Price has historically been a major driver of purchases online, but having faith in the experience is becoming really important as well.

And for good reason – Google found that 13% of shoppers plan to watch online videos to help with shopping research, and 48% will use tablets to read product reviews before purchasing.

Monday, August 20, 2012

The changing profile of Indian retailers & AaramShop.

A typical Indian Neighborhood Grocer

Kamal Desai is the 2^nd generation grocery retailer based out of Andheri West, in Mumbai. He took over day-to-day management and operations of his family-owned grocery store about 9 years ago.

The 9 years of running his store 1^st hand and assisting his father since early childhood enables Kamal to reflect on changing trends in Indian retail and its opportunities and challenges over the last 4 decades with a level of expertise.

The changes have been happening over the years, but the last 7 to 8 years have been the most exciting and challenging. Based on what he saw around, he started off by doing minor modifications to the store layout since he took over – starting with creating self-service isles, better product displays and accessibility, in-store lighting and then going on to air-condition the store.

While the neighborhood that Kamal services has seen a steady population growth and income levels, it has also seen a change in consumers’ tastes – prompting Kamal to move away from commodities to brands. And while Kamal has a strong one on one relationship with a lot of consumers and almost a legendary service level efficiency for loyal consumers – he is facing an increasing challenge with the changing lifestyle of a number of his consumers and of course from the increasing competition from the modern trade outlets.

The modern trade vs The brands - the saga continues.

I read with a lot of interest the series of recent articles carried in Economic Times on the ongoing and perpetual battle between the brands at one end and the modern retailers on the other. It started a few days back with the news that Reckitt was keen on reduction of margins for the modern retail outlets (by about 2% or so).

It followed today with the news that Future Group is "cleaning out" Reckitt from it's outlets.

What made it particularly interesting for me was that about 2 years back (thats when modern trade was really modern in India), I had a longish meeting with the then brand custodian of one of the Reckitt brands who was spending majority of her marketing funds on "creating"a category for her product at the modern trade. We discussed issues around eventual private labeling, shrinking margins, cost charged towards display, lack of traditional trade focus etc. however, perceived higher and better quality of consumer engagement ensured that she stuck to her decision of pouring very serious monies in modern trade to create a category - irony was that the largest amount was on the Future Group.

While modern trade currently represents only 5% of the FMCG trade in India, the writing on the wall is very clear - the FMCG brands will need to take a good hard look at their own shopper marketing strategies and step back to embrace the traditional grocer / kirana store.

If the brands don't - they will be constantly on the receiving end - today Reckitt got taken off the shelves, yesterday it was Frito-Lay and Kellogg's. Tomorrow who knows.

Saturday, December 25, 2010

Little or No Mobile Strategy in Most Companies

Image via Wikipedia

The above quote is part of the Foster Research, and it is bang on from the experience which I have had with most organizations.

"57 per cent of organisations either do not have, or are in early stage development, of a mobile strategy; 10 per cent have had a fully operational mobile strategy for less than a year; a third of firms have had a mobile strategy for more than a year."

With India turning into the largest cellphone market in the world (or the 2nd largest if you take out the duplicates :-)), it is indeed sad that there have been hardly any significant mobile brand campaigns. The mobile strategy seems all outdated as the pic above.

The report offers a snapshot of where companies are in their mobile evolution. It notes that brands in media, travel, and financial services are the most likely to have the most mature mobile strategy. Mobile is seen as a way to increase customer engagement, satisfaction, and loyalty, not generate direct revenues: 52 per cent of firms see increasing customer engagement as their number one mobile goal.

Please read the full report here.