Retail & Supply Chain Professionals |
Supply Chain Management in FMCG |
Future of FDI in Retail
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Activity:
468 views;
last activity : 07 21 2010 11:52:01 +0000
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Right Brand/Category Mix- Location & Size
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Enhanced Value Delivery
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Proper customer services
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Great Product with Excellent Service is the key
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Lets remove our faults
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Reach out to Tier-II towns
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Treat them like "Guest"
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Availability of Core SKUs; Coupled with Innovative Promos
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By giving them the personal touch
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Retailing Is An Art
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Location, Merchandise, Pricing, Personnel, Customer mgmt, Media relations
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How to convert footfalls into real buyers in big retail outlets?
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To Connect an "Emotional Account"
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Keep the Right Product for the right customer in the right location of the store.
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Target the middle layer
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Think why customer is in your store? And you will find the solution.
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Merchandising Displays
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Print and electronic media
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I feel if the Mall is offering Balance Brand/ Category Mix then it is bound to get high conversion, You have live example of how your City Centre and Mega Malls ( Gurgaon)behave even when they are just situated around 1.5 km apart from each other. If the mall is made in right location with matching - Target catchment population, with balanced anchor and vanilla brands of all required categories and surely proactive mall management to organize some or other promotions from time to time and keep customers involve.
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The most important thing to remember is to make the offering based on the catchments pschycographic and demographics and design the tenanat and trademix accordingly.....Zoning must also be consistent with the above........
After getting the above right the Mall must have a good Mall management in place.........which will plan and execute effective promos and events.....making the right noises year around.......
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It is very important to prove customer that you are offering more and better value. If customers get at your store and find products which they can't get from other platforms in terms of quality, choice or price - he/she will be satisfied and will become a repeat customer and that is what I call value delivery. It will attract people and boost organized retail. Increase in consumption is already taking place but habits have not yet changed. We need to get consumers to change their shopping habits. Supermarkets and hypermarkets need to differentiate themselves by offering wider choice and good quality products at lower prices. Until this difference is clearly visible, consumers will not switch.
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Enhanced value delivery seems to be the most viable amonst the five options. Product assortment is available at all retail outlets. Almost all manufacturers now understand quality & service. Getting into tier-II towns is another option but Tier -I isn't completely exploited to its fullest. Furthermore, there should be a certain degree of acceptance and stability for the brand before it invests in tier-II. Ultimately it is the value for money that will draw a customer to your store.
I agree with you Devarajan lower prices for good quality and branded products is the sure shot way to boost retail. Stores still sell at the MRP or on meager discounts. Selling quality products at lower prices will boost sales: the telecom industry is proof that this strategy works. Low prices will drive larger volumes and retailers will make more money than they are at present.
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Specially in MBO's customer's are not focused well in comparison with EBO's.I believe enhancing the customer sevice may help in conversion of footfall..... |
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The question here is: how to get footfalls to convert into sales, it means that the first 2 factors are a given and have successfully bought the (qualified) prospect into the store,
Winning the customer's share of mind, will win a share of his wallet. And this is possible by exemplary customer service that creates a personal relationship with the customer; which in some cases is enough to bring in repeat purchases, even without the support of promotions.
Promotions and discounts cannot create sustainability since the customer switches loyalty only during promos. Furthermore price cuts can seriously erode the profitability and risk the business model. Also, these by themselves cannot create sustainable competitive advantages, as these are easily matched by competitors.
A retail company in Mumbai had identified 9 critical success factors and 8 factors in quality and customer service. Performance against these factors was continuously measured and reported.
Moving to tier 2 cities is not an option, sooner or later one may need to grapple with this question even in those places, perhaps more so, in those places.
Customer service always plays a unique and most important role in every business we carry out. In retail when a customer enters the store, providing proper service can improve the chances that he/she will land up buying something from your retail store. But bad customer service can lead to drop in real buyers...
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Customers now are more conscious about their right to excellent service, apart from the so called 'best value proposition' in the merchandise which is generally available. Delivering exemplary service is going to be the key driver in converting footfalls to sales. On the merchandise front as well one should focus on its cores & strive to offer a distinct differentiation than the competition. It appears evident, in the time to come when the product would virtually be free, it will only be the service that the consumers will be paying for. |
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The most basic fact about the employee of any Retail outlet is that they are not technically sound enough to deal with the category of customers. Results less conversion. Moreover, long shifts make them tired too. So just have a think about it. Fasih |
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Yes Mr.Ahmer if the employees of a retail outlet are trained well in the product they sell, then I think it can result in high conversion rate. Also long shifts can make them tired so the retailer should take in consideration this too if he want more conversions.
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I feel Retailers must reach out to tier-II towns and also must address the second layer of Indian consumers with newer and innovative formats because the existing formats largely address the affluent classes. Making finance available more easily at retail outlets, on easy terms, will also encourage consumption. Lastly, as already mentioned strong focus on delivering better value at all times is required.
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Treat the customer like a guest when a customer enters your store, approach plays a important role, the way you greet, your attire, your presentation, then the store speaks the rest, if the customers purchase the product or goes empty handed doesnt matter but he will always recalls the hospitality given to him, my message to everyone is relationship building, so here's a beautiful quote: "A customer never buys because he gets the product from the retailer.He buys because he has a relationship with the retailer" |
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Play on your strength. Convert your footfalls by being innovative in promoting your core SKUs with your strength area. 80% of the business is driven by 20% of the merchandise in any given category;
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Big Retailers have almost replaced all the small retailers( Kirana ). But the problem with these big retailers is that they are not able to give the personal touch that the small retailers ysed to give. The small retailers used to remember the birthdays, anniversaries and even the smaller things about their customers. They knew the preferences of their customers, the customers don't have to rememeber the brand names even, it was the duty of the retailers. Now if these retailers have to convert these footfalls into real buyers or loyal customers they have to keep this thing in their mind. |
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Like every business, retail too involves all the intricate functionalities & dynamics of business & trade but in my view it also requires a bit of arts of psychology & behavioral science as you are directly connected to the people who are your valued customers. I’d compare it with serving dishes to a set of people (your target audience) on a table, every store can do that but the art lies in distributing each of them those dishes further, in a polite & understanding manner, as per their exact requirements & thus nurturing in them, a sense of sweet satisfaction. This definitely will reward you, your perfect remuneration in the end.
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REAL buyers are yet to do even the window shopping of big retail outlets. Close to accurate geographical positioning, Near to perfect demographically matching SKU's/merchandise, Value for money pricing, You-are-everything-but not-always-right kind of customer service, Managers and Executives who can literally make many of customers to do a repeat purchase from they are working, Right Ambience and mix of silence and soothening sound engineering, all pervading media mgmt- a few factors which would atleast bring customers to our doorsteps... |
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The best way to retain and increase the footfall is to make the customer a regular shoppers in your store, that means by creating an "emotional account" , I mean to say by offering them the right service through proper ambience, good value for product merchandise, nice and creative visual merchandising, good hospitality and finally building up a relationship with the customer by selling him our trust and faith.
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I strongly feel that the store should keep itself abrest with the real requirement of the market & trends.The customers should be offered a wide range of choices in products in various price points.This will make the customer comfortable making the choice and hence there will be a sure convertion.
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Customers walking in the stores and not purchasing are mostly those who are not able to find the required products at affordable prices, so there is need to convert those window shoppers into ur customers by providing various products of Good(Not very High) quality products at slightly lesser prices.
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The most important factor of converting footfalls into serious customers is to understand there senses, intelligence, surprises and never get this offer again attitude. One has to create a serious urge of purchase in the minds of the customers that he should feel confortable, informative and detailed information about the products and services attached to a purchase. Please note every customer you are seeing roaming around is a serious cusomer and is a regular purchaser. If we are unable to convert him the problem lies with us. AND FOR THAT WE HAVE TO FIND A SOLUTION BETWEEN PURCHASE AND THE SALE PRICE.
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Deal Listing Sites operate in the retail space exclusively and hence they have associations with other media in the retail sector. Associations with newspapers, magazines etc are common and provide further reach through multiple media vehicles, normally at the same cost. In conclusion deal listings sites, apart form the cost, reach, footfalls and other associated benefits, bring in a longer term visibility to your brand which adds tremendous value in future as online grows bigger. In fact retailers benefit as much as consumers in this highly effective medium. |
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Please elaborate more on the subject Mr. Badrish. |
I agree with srinivas... It should be privatized... |
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