2014 may well have been the year of
e-tailers. But concerned about their eroding bottomline, offline
retailers have come up with personalized tactics to draw new and old
customers. With white good products also taking the online route, brick
and mortar firms have taken a heavy beating this year. “It’s never a
fight between online and offline. But the disruptive pricing strategy of
e-tailers is the most worrisome trend,” said B.A. Kothandaraman,
chairman and MD of southern retail giant Viveks Ltd. “When online folks
offer huge discounts below cost price, how can offline retailers
sustain,” he asked.
Though online is
only 10 per cent of the total $500 billion retail market in India, the
new stream has had a free run in 2014 and pegged to touch $16 billion by
2018. Unfazed by the onslaught, retailers are trying to encash their
biggest asset – human resource. “The biggest advantage and disadvantage
of e-commerce is its impersonal experience. We are trying encash this by
investing on sales force training and Big data,” said D. Sathish Babu,
MD of Univercell.
“We spend a
considerable amount in doing data analytics about the customer’s buying
preference so that when he walks in to the shop, the front office
salesman is able to suggest suitable products for him,” he added. In
fact, Retailers Association of India has launched free 4-6-week training
programmes to hone etiquette, communication and computer skills of shop
floor assistants.
Adopting the FMCG
retail strategy, as Spencers, Reliance Fresh and More, white good
retailers too are looking to garner a share of the market with own
labels. “We have launched flat panel televisions this year and hoping to
get into air conditioners next year. This way we want to hold a section
of customers who go for durability than brand name,” said B.A.
Srinivasa, CEO of Viveks Ltd. Further, retailers are also trying to
value-add services apart from offering products to engage with
customers. For example, while most apparel retailers already have their
customized tailoring services, retailer Viveks has come up with a plan
to offer servicing solution across all product brands.
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