VOL. 10|ISSUE1 MERCHANDISING November -December2018 From StoreDesign to Experience Design VISUAL

RNI REGN No.:MAHENG/2009/33219

CEO Message

Publisher : Kumar Rajagopalan [email protected] Facilitating growth Executive Editor : Shiv Joshi - [email protected] s Retailers Association of Contributing Editor : Vidya Hariharan (RAI) we’ve been meeting people [email protected] from various parts of the country, Contributors : Akshay Kale - [email protected] trying to bring them together onto Osaid Butt oneA platform to help them understand the Art Director : Deris Micheal - [email protected] various aspects of retail that are instrumental in achieving various levels of modernisation. RAI Advisory Team The one thing that is predominately coming out of all our initiatives Director-Retail Learning : Lawrence Fernandes around the country is that there is no dearth of demand for business. [email protected] However, there are definitely competitive challenges that need to Editorial Director : Dr Hitesh Bhatt be faced by retailers. Through our various platforms we facilitate a [email protected] common dialogue to help them address issues and move forward. Director - Finance : Gautam Jain Today, it is all about customer experience. Visual presentation & Advocacy [email protected] is one aspect of the experience that enhances the attractiveness STOrai Advertisement : Kiran Shetty - [email protected] index. With experience taking centre stage, Visual Merchandising as a function in retail is evolving to become a strategic partner that RAI National Council drives customer loyalty and hence, business. Retailers have to get into experiential marketing to survive and thrive in the competitive Avijit Mitra, Infiniti Retail Ltd. (Croma) market. Recognising this trend, we have themed the issue around B A Kodandarama Setty, Vivek Ltd. Visual Merchandising. B S Nagesh, Shoppers Stop Ltd. The issue also gives you an update on the various advocacy Bhaskar Bhat, Titan Industries Ltd. initiatives of RAI. A significant development among them is that Deepak Aswani, My Kingdom the National Retail Trade Policy is back in consideration and is J Suresh, Arvind Lifestyle Brands Ltd. gathering considerable momentum. We have been in dialogue with Jamshed Daboo, Trent Hypermarket Ltd. the government and other stakeholders towards making it happen. Kishore Biyani, Future Group However, it may take some time to become a reality due to the Krish Iyer, Walmart India General elections in 2019. Lalit Agarwal, V-Mart Retail Ltd. Neville Noronha, Avenue Supermarts Ltd. (D-Mart) We also have an insightful article by KPMG on the trends that are Noel Tata, Trent Ltd. likely to dominate Indian retail in 2019, which we hope will help you Pranab Barua, Aditya Birla Retail Ltd. stay ahead of the curve. Rafique Malik, Metro Shoes Ltd. Do stay connected with us for more updates on retail and write Rahul Mehta, CMAI to us on [email protected] with your feedback and views. Rakesh Biyani, Future Retail Ltd. Shashwat Goenka, Spencer’s Retail Ltd. Suhail Sattar, Hasbro Clothing (P) Ltd. Vasanth Kumar, Lifestyle International Pvt. Ltd. Kumar Rajagopalan, Vinay Nadkarni, Globus Stores Pvt. Ltd. Chief Executive Officer, RAI

Printed and published by Kumar Rajagopalan for Retailers Association of India 111/112, Ascot Centre, Near Hotel ITC Maratha, Sahar Road, Sahar, Andheri (E), - 400099. Tel + 91 22 28269527-28, Fax +91 22 2826 9536, Email: [email protected] Printed at Jyothi Process, 63, Shiv Shakti Industrial Estate, Andheri Kurla Road, Marol, Andheri (E) Mumbai - 400 059, India. Phone: +91 22 28514084 This publication is for the purpose of information only . The views expressed in this publication do not necessarily reflect the views of the Retailers Association of India and the opinions expressed in this publication do not necessarily reflect those of the editor, publishers or their agents and it should not be used in substitution for exercise of independent judgment. This report is based on the information obtained from various sources and sources believed to be reliable, however, no warranty, express or implied, are given for the accuracy or correctness of the same and it should not be construed as such. The report contained in the publication is also not intended as an offer or solicitation for the purchase and sale of any items. No matter contained in this publication may be reproduced or copied or forwarded without the prior written consent of the Retailers Association of India.

November - December 2018 | STOrai | 1 CONTENTS >>

04 INDUSTRY Update 34 reports Update from the Industry 34 Retail Summit 2018 40 India Retail Excellence Awards 09 Advocacy Update 2018 Policy, regulations & more 44 Retail Regulatory Summit 2018 10 Cover story 47 TradeConnect, Singapore 10 It’s about telling stories 50 Bengaluru Networking Meet 14 Vishal Kapoor, Chief Design 51 Shillong Retail 2018 Officer, Future Group on the Evolution of Design 16 The Raymond Perspective 18 The one VM Trend that matters the most 22 Business and VM heads on the 34 changing role of VM 26 Pop-up Innovation

40 10 30 Trends Retail Trends in 2019 44

2 | STOrai | November - December 2018 52 consumer insight 62 franchising Findings of RAI - Litmus Festive The secrets behind the success of Shopping Index Mini TRS

56 highlights International Home + Housewares 62 Show 2019

64 member profile The growth story of Enrich Salons 56 64

58 SME Inspirations Bipha: Building a Legacy

Cover credits Venue: fbb Picture Courtesy: Future Group 58

November - December 2018 | STOrai | 3 52 consumer insight 62 franchising Findings of RAI - Litmus Festive The secrets behind the success of Shopping Index Mini TRS

56 highlights International Home + Housewares 62 Show 2019

64 member profile The growth story of Enrich Salons 56 64

58 sme Inspirations Bipha: Building a Legacy

Cover credits Venue: fbb Picture Courtesy: Future Group 58

November - December 2018 | STOrai | 3 Industry Update

Crocs scores a 100 in India GST Rates Slashed n 22 December 2018, the GST Council of India announced reduced tax rates on 23 Ogoods and services, including movie tick- ets, TV/monitor screens, power banks, while fro- zen and preserved vegetables were exempted from taxes. Finance minister Shri Arun Jaitley hinted the s a part of its ambitious and aggressive ex- possibility of India going for a single slab GST rate pansion strategy in the Indian sub-conti- in the future saying, “A future road map could well nent, Crocs India opened its 100th store at be to work towards a single standard rate instead Chennai,A recently. Spread across 625 sq. ft. at the of two standard rates of 12% and 18%. It could be VR Mall, the new store is Crocs’ third in the city and a rate at some mid-point between the two.” Only fifth in the state of . It will be operated cement and auto parts are items of common use by Metro Shoes, the national franchise partner. which are still in the 28% bracket. The partnership with Metro Shoes began in 2014 Prime Minister Shri Narendra Modi recently which has helped the iconic footwear brand in ex- said that the Centre was working towards a posi- panding its reach to over 50 cities through its EBO tion where 99% things will fall under the sub-18% operations. GST slab.

Gold for at ICSC Kuala Lumpur, yet again ne of Mumbai’s reputed shopping centres, Viviana Mall, has bagged its 6th consecu- Otive trophy at the ICSC Asia Pacific Shop- ping Centre Awards 2018. The Gold award consid- ered as the Oscar of the retail world was presented at RECon Asia in Kuala Lumpur. Viviana Mall was recognised for its innovative and socially relevant campaign- #StopAcidSale against the sale of acid aimed at prevention of an ever prevalent social  Ms Rima Pradhan, Sr VP Marketing, Viviana Mall malaise of scarring caused by Acid Attacks. It saw receiving the prestigious gold award at the ICSC widespread participation and recognition across Asia Pacific Shopping Centre Awards 2018 the country and was well received by society and Agarwal, a seasoned professional from the Hos- media alike. Extensions of the program saw acid at- pitality and industry as its CEO. tack victims share their stories at forums and walk Agarwal, who has over 30 years of leadership ex- the ramp at a leading Fashion Week. perience, previously has had stints with L&T and Viviana Mall also brought on board Manoj K. Inorbit Malls.

4 | STOrai | November - December 2018

Industry Update

Instagram to Future Enterprises enable ‘buy’ in india acquires Livquik ollowing into the footsteps of parent com- ishore Biyani’s Future Enterprises has pany—Facebook, Instagram users in India acquired over 7.11 crore partially paid could shop for products within the app itself shares in Livquik Technology, a fin-tech Ffrom next year. Initially, tapping the “buy” button K startup, for a cash consideration of Rs 20 crore. next to an image will take the user to the mer- Once the call on acquired shares is made and chant’s web page to complete the purchase. Lat- payment is completed, Livquik will become a er, users will be able to make the purchase within subsidiary of Future Enterprises. Instagram itself. The deal is expected to be closed within an Instagram already has a feature to shop indicative timeline of 24 months. “The activities through the platform via Instagram Stories, carried out by Livquik are expected to add value where a user with a considerable following or to the business of the company,” Future Enter- a verified page can use the swipe-up feature to prises said. direct the consumer to the brand’s website. Ac- cording to estimates, India has the second-larg- Livquik is engaged in business of issuance of est Instagram user base outside the US. Though digital prepaid payment instrument, provision revenues are trivial, India has become one of the of payment gateway services and development biggest contributors to growth in the numbers of of specialised system software and application users for giants like Google and Facebook. software.

B2B platform BESPOCUT launched in India

he bespoke clothing Savile Row or Hong Kong. In the business in India had first year of its operations, Bespo- remained largely un- cut will be introduced in 30 cities Ttouched by technology. Things across India. It aims to acquire are set to change with Bespocut, 500+ style partners in the first a B2B techno-commercial busi- two years. The company is also ness enablement platform that planning to start lead generation allows designers in India to pro- activities so that its Style Partners vide world-class bespoke cloth- can benefit from new clients. ing services to their customers “It is an innovative idea about  Pradeep Kumar, CEO and across the world. creating a virtual studio without Founder, Bespocut Utilising Bespocut’s cloud having an industry or stock but platform, Customized Hub, In- only expertise. We have designed sonalise their clothing, which is dia will be able to match quality our cloud-based application or where Bespoke will help them,” and finesse of bespoke clothing, warehouse, as we call it. People said Pradeep Kumar, CEO and as customers normally find in don’t have time to go out and per- founder of Bespocut.

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Industry Update

ShazÉ bags prestigious News In Numbers award in UAE 1.8 million What is it? The number of jobs that may be eliminated due to AI by 2020. Why is it important? This shows the steady shift of all the industries towards an AI-based business model to which retail will be no exception.  Samrat Zaveri, Founder and MD, Shazé Tell me more receiving the award AI will create more jobs than it will eliminate with uxury brand Shazé has been awarded the an estimated 2.3 million job openings—half a ‘Best Premium Lifestyle brand in Décor and million more than the jobs lost. Destination Jewellery’ for the year 2018 by 18.5% LEconomic Times. The award ceremony held at Abu Dhabi was organised as a part of the on-go- What is it? ing efforts by the governments of India and UAE The retail industry’s share of average staff turnover among Indian companies by industries in the fiscal to identify key areas to boost investment flux be- year 2018. tween the two nations. The award was received by Samrat Zaveri, Founder and MD, Shazé. Why is it important? It is an indicator of the industry’s alarming attrition rate. It shows how employee stickiness is falling by V-Mart Appoints Govind the day—a call for action for retailers. Shrikhande as an Tell me more Independent Director Retail has the highest attrition rate amongst all industries in India. According to the same study, eading value retail department store chain Automotive has the least with 6.6% and insurance is V-Mart announced the appointment of Gov- the closest to retail with 18.3%. ind Shrikhande as an Independent Direc- Ltor, effective 2 November 2018. Known to the in- $1.1 trillion dustry for his glowing track record at Shoppers What is it? Stop, which he joined in 2001 and left as MD, Expected valuation of India’s physical retail market Shrikhande possesses rich cross-functional ex- by 2020. perience in textiles, apparel and retail. Prior to Why is it important? Shoppers Stop, he was associated with Mafatlal The figurehighlights the fact that even in a virtually- and Johnson & Johnson. He has the unique dis- driven ecosystem, shoppers will not forego brick tinction of being part of the team that launched and mortar stores. Arvind Denim & Arrow. He has also worked with Tell me more Bombay Dyeing. Organised retail is expected to grow at 20% per annum. Online retailing is expected to see an Primarily focusing on Tier II and III cities, exponential growth of 1200% by the year 2026 V-Mart has more than 190 stores with an average but physical retail figures will still dominate the store size of approximately 8,000 sq. ft. playing field.

8 | STOrai | November - December 2018 Advocacy Update

365 days store opening Update on Minimum Wage hike permission in AI challenged the substantial hike in minimum n representation by RAI, the state government of wages by the Delhi Government in Delhi High Court West Bengal has allowed all retail shops in the Rbecause it was steep and unjustified. There were state to remain open 365 days a year, provided also procedural lapses in finalising the hiked rates. In Au- O gust 2018, the High Court declared that the Delhi Govt. they comply with conditions specified in the notification. This move will ensure consumer convenience, grant flex- order was unsustainable because of lapse in procedure. ibility to businessmen and create more employment. The state Govt. took the matter to the Supreme Court, which allowed operation of the March 2017 notification for FSSAI appreciates RAI’s efforts three months, the time given to the government for a fresh AI has been nominated as a key stakeholder in exercise. A bench headed by Chief Justice Ranjan Gogoi, the FSSAI’s Swasth Bharat Yatra, a key initiative however, made it clear that at this stage arrears were not under the ‘Eat Right India’ movement—launched required to be paid but current wages are to be paid as per R the March 2017 notification till the time a decision is made. to commemorate Mahatma Gandhi’s 150th birth anniver- sary. RAI received a letter of appreciation from the CEO of RAI has submitted a fresh representation to the Delhi FSSAI acknowledging RAI’s efforts in the initiative. Govt. contending that its members have at no point in time been averse to and/or against a reasonable increase Lease accounting standard, in minimum wages and the increase done by the state Ind-AS 116 issued Govt. is unreasonable and will severely impact the retail he Accounting Standard Board (ASB) of the Insti- business in the state. tute of Chartered Accountant of India (ICAI) has issued a lease accounting standard, Ind-AS 116, GST ADVOCACY UPDATE T Meeting with GST Council: The GST council had called effective 1st April 2019. This standard will fundamentally change the accounting for lease transactions for lessees. a meeting to discuss sales promotion strategies adopted It is likely to have significant business implications. The by retail companies such as freebies (one plus one free), RAI finance committee had started a discussion on the discounts, cash-backs through mobile/digital wallet, loy- topic to figure out a uniform practice among retailers as alty programme and vouchers/coupons redeemable at retail is one of the most heavily impacted industries. For a future date. An RAI delegation met the CBIC chairman, retailers with a significant portfolio of leases, recognition GST commissioner and GST council members and sub- of right-of-use assets and associated liabilities will pro- mitted a representation on the sales promotion schemes foundly change the balance sheet. This, in turn, might and their taxability under GST, valuation and eligibility/ affect loan covenants, credit ratings and other external availability of Input Tax Credit. measures of financial performance. Extension of the last date for filing GST annual re- turns: CBIC vide press release dated 07.12.2018, extend- National Retail Trade Policy update ed the due date for filing FORM GSTR-9 (annual return for AI has given its inputs to the Commerce Ministry on regular taxpayers), FORM GSTR-9A (annual return for the the draft National Retail Trade Policy. A delegation taxpayers registered under composition scheme) and from RAI, including RAI’s northern Regional Chair- FORM GSTR-9C (reconciliation statement and certifica- R tion) till 31 March 2019. RAI has requested the GST Coun- man Lalit Agarwal, had a fruitful meeting with the DIPP secretary for the same. RAI is in touch with all other indus- cil to extend the last date for filing of GST annual returns try bodies like CII to work together on the policy. Form 9 by three months to 31 March 2019.

November - December 2018 | STOrai | 9 Cover Story

It’s about the story

The only way to catch the attention of today’s connected consumers and hold it is to touch their hearts through appealing design narratives that go beyond mere window displays

By Surender Gnanaolivu

his world, as predicted to his or her emotions. There’s no you would be able to narrate. by futurists, is soon to better way to do this than through Why a story in a store? be run with algorithms telling a story. How often does a It’s a war of competing prices, driven by machine movie, book or TV show draw us into ‘endless’ aisles, marketing muscle learning that will use a world of imagination and into an ‘ulta’ logic to predict our preference emotional state where we are open and technology in the marketplace. T Consumers are being bombarded and enable our daily lives. Human to new possibilities. Try and recall science studies have proven that the the story and you will realise that it with an overload of ‘logical’ way to get a person’s attention is to is the plot, the emotional layer, and information. That is why, storytelling surpass the logical mind and appeal not the logical facts in the story that is being increasingly used to touch Photos: Surender Gnanaolivu

 Havaianas store design and visual merchandising tell the story of the brand in a fun and differentiated way

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their emotions and inspire them brand in a fun and differentiated for the brand’s core customers and to have personal and memorable brand proprietary concept. The is presented in collections that interactions with the brand. Retailers colour and form have been inspired represent different art stories like and brands are using different by trees, a sunny blue sky, a sandy classic, boho and modern. narratives to create this emotional beach and beach benches to emote The store design and visual bond with the consumer. the fun and enjoyment Brazilian merchandising uses the narratives of beaches are popular for. BRAZILIAN BEACH STORY: its customers’ sense of adventure and Havaianas, a 56 years old Brazilian CRATED LIFESTYLE STORY: individuality—what she wears and brand of flip-flop sandals, Anthrolpologie is a brand that how she lives—in arty vignettes that embodies Brazil’s fun, vibrant and curates assortment of clothing, tell stories through ‘art installations’ spontaneous way of life. It sells a jewellery, home furniture, décor and of the curated collections. staggering 200 million pairs every beauty by partnering with artists and NATURAL BEAUTY STORY: Lush, year! The store design and visual designers from around the world. meaning ‘fresh, green, and verdant’, merchandising tell the story of the The store is a ‘home of discovery’ produces cosmetics for the face,

 The store Anthrolpologie tells stories through ‘art installations’ of its curated collections

November - December 2018 | STOrai | 11 Cover Story

 Cosmetic brand Lush uses stunning displays of product groupings at its stores to tell its story with panache hair, and body using only vegetarian emotional realm or vegan recipes made in factories  Stories need to be UNIQUE (or ‘kitchens’ as they prefer to call to help create memorable them) around the world. The store experiences for customers experience uses sensorial design in a natural reclaimed palette pepped  Stories need to be BELIEVABLE up with vibrant colour, delightful for customers to trust the brand fragrances and stunning displays of Surender Gnanaolivu has an experi-  Stories need to be INCLUSIVE product groupings to tell its story ence of over two decades in the Indian of customers in the narrative to with great panache. retail industry in Retail Strategy, Store create a strong emotional bond Design, Planning & Development, Re- Story telling using design with them tail Marketing, Visual Merchandising, must evoke the customers’ Roll-out Management, Retail Audits, imagination and clearly deliver an  Stories need to be CONSISTENT Training, Teaching and Writing. His experience that they believe would in all the tenets of the design to career encompasses holding of sen- enhance their lives. Today, visual make the experience immersive ior positions such as Executive Vice merchandisers, store designers, With the future of shopping President & Head Marketing, Brand brand marketers and technology steadily heading towards becoming Experience, Store Design, Planning & developers are collaborating to more and more technology Development at leading retailers like create great concepts that are enabled, the art of storytelling will Shoppers Stop, Reliance Retail and differentiated and effective. become less of an option and more Mahindra Retail and as a senior retail They lead to 5 learnings… of a necessity to keep the connected consultant working with leading retail-  Stories need to be IMAGINATIVE consumer emotionally engaged and ers and brands in India. He is currently to transform customers into an loyal. a Sr Retail Experience Consultant.

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Cover Story

Evolution of Design Vishal Kapoor, Chief Design Officer, Future Group gives us an insider’s view on the tenets, trends and tactics of Experience Design—the evolved, more holistic form of Visual Merchandising

Interviewed by Shiv Joshi

etail is a sensory-driven industry and visuals have proven to work better for businesses than any other tool. RWith competition on the rise, brands use visuals to tell stories, differentiate themselves and get an edge. Visual Merchandising (VM) is no longer just a design element in an organisation’s structure but also an integral part in strategy making and is swiftly moving into the number realm too. Vishal Kapoor, Chief Design Officer, Future Group explains…  fbb stores are a fine example of Experience Design...All elements just How is VM evolving in India? flow like a well-crafted story, drawing consumers in VM today is beyond the word ‘visual’ aspects of experience like service hands and a balanced outcome of as it was traditionally perceived. A more well-rounded approach design, in-store environment design, form and function. While VM is bent would be to address it as Experience communication design, technical towards form, Experience Design is Design, a term which has a much services design and technology more holistic. each having its own breadth and larger and strategic connotation. No, because we cannot look at Since businesses are directly width of subsets to contribute. the working system in India and linking with their customers, this Are such professionals able try to replicate here what works in knowledge and technique is now to keep up with the change? developed markets. This is because becoming a partner in growth since Yes and no. Yes, because despite of the difference in academic ‘experience’ seems to be the key. less academic focus in this field all experience, industry maturity, Experience Design is all about outcome is a mix of self-learning vendor contributions and skills thinking design at tactical and and hands-on experience which and labour cost. Here, even the strategic levels and integrating shows the grit of the professionals. most basic in-store visual activity them vertically. It also involves a Experience Design as a profession is carried out by a third party unlike horizontal convergence of various is basically about thinking with the professional counterparts in

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Europe or US who are more hands- An example of the impact on with aligned skills and aptitude. of Experience Design on business? The second challenge we face is Experience Design is about the upgrade in mindset as one moves integrating experiences leading to up the career ladder. The challenge better customer happiness. This is both of contextualisation of skills includes products, environment and both technical and technological processes all integrated for the final and graduating from tactical to outcome. For example, one simple strategic design thinking. This insight in our retail stores turned into means constant learning...Not just a very big idea in creating a positive  Vishal Kapoor, Chief Design the skills but also management of customer experience. The case is Officer, Future Group the system and business. Only when about dissonance we saw at long the designers know the dynamics of waiting queues on our checkouts. refreshments served from our live business will they be able to provide Increasing counters didn’t seem to kitchen after a long in-store journey and articulate their creative value. be an ideal solution. while we service their checkout. This was integrated with service oriented Organisations of today need This last mile experience being staff, QMS system for questions both qualitative and quantitative critical for any retailer, we came up management and a soothing design. value adds and there cannot be a with the simple idea of creating a And it all came together to turn the better time when the USP of every seating area—a sit down billing— point of dissonance into a point of retailer has its basis in ‘experience’. where customers can relax with appreciation and happy memories. This was only feasible looking through a lens of Experience Design.

Will VM evolve into Experience Design in 2019? As mentioned earlier, VM will evolve as a more holistic value add at both tactical and strategic levels. The blurring lines between physical and digital will force VM professionals to rethink about their evolution and updating their skills. Multiple skill sets would merge.

As one moves up the hierarchy, specialisation will give way to generalisation of aptitude and one would need to be constantly updated and aware about new innovations  Simply adding seating near checkout counters has helped achieve three and their adoption in the consumer goals: Busting of queues, better customer experience and more business experience segment.

November - December 2018 | STOrai | 15 Cover Story

The Raymond perspective Shradha Kurup, Head - Visual Merchandising, Raymond Ltd. on her plans to craft memorable tales through the 900 retail doors she manages

he world of visual merchandising (VM) has transformed into a dynamic landscape of infinite possibilities. THowever, for VM professionals, being able to engage an impatient and informed customer is a major task at hand. The biggest question we are faced with today is, while consumers are bombarded with innumerable brand messaging and products,  The VM for Khadi by Raymond weaved an interesting story why should they shop with us? The answer to this question is what we them, be it in the form of a selfie VM/design professionals plan to or a memory. That is the level of unfold as our Visual Merchandising storytelling that we aim to achieve strategy for the year ahead. in the year ahead. The idea is to ensure that Dynamic, interactive, tech- we make our stores Interesting, embedded and suave are some of Engaging and Up to Date with the the directions we will be focussing product and the communication on, ensuring that we try something that is relevant to our times and the new every time. Creating a charter needs of our customers, thereby for 1,000 stores ensuring that themes building memorable interactions.  Shradha Kurup, Head - VM, and products are brought to life and Raymond Ltd. Focus forward come together as a seamless story At Raymond, we embarked on a online and offline. Setting up store journey at the start of 2018 to add Visual Merchandising has evolved windows and products that talk 300 additional doors to an existing from setting up store windows to and sell, thereby transforming VM network of 750 stores till March 2019. creating a store’s show stoppers from the silent sales facilitator to an Our plan for the year ahead is to be and fashion style guides. Research interactive sales catalyst. To be able able to provide an experience that is shows that humans can attach a to intrigue customers to experience seamless and consistent across all meaning to a visual in less than 0.15 and live our brand promise through channels and stores, making each seconds. It’s about creating a visual our products, thereby carving a interaction a memorable one. that consumers take back with niche in their minds forever.

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Cover Story

What will rule in 2019 The dominant trend for visual merchandising in the year to come will be to not follow any trend but innovate and engage to highlight the brand proposition

By Jose Maria Bustos

ersonally, I have never been one to follow Visual Merchandising (VM) trends. The latest trends like magic mirrors or Pmannequins that don’t require bases are ones that, if followed, you can rest assured your closest competitors are following too. In today’s world of experiential retailing, the twin worlds of leisure and retailing collide to blend and form a powerful new element— retailers are using their bricks-and- mortar and flagship stores to focus more on creating a fully immersed brand experience. No longer does the majority of the population want to hoard goods, they want good service, they want more, richer experiences.  The Script store by Godrej in Mumbai features many new ideas Today’s most successful retailers don’t follow trends in VM, they Simply use the Amazon Go app to Lululemon provides gathering follow innovations and ideas based enter the store, take the products you spaces, areas of wellness that are on social trends and it is those want, and go! No lines, no checkout. deliberately planned as ‘quiet ‘ideas’ that make successful shops You get product information on your spaces’ with seating, tables with Instagram-able and distinctive. Here phone by scanning the price tag, bill power plugs and USB ports where are some examples… will be directly uploaded on to your women can come together to It’s about ideas phone without having to interact engage with one another or just ‘Ideas’ like Amazon’s newest brick- with a cashier. hang. They also offer healing and-mortar experiment called Lululemon’s idea is a sports-wear through yoga classes ‘in-store’. Amazon Go, cashier-less retail with concept intent on offering focal These are ground breaking ideas a ‘Walk Out Shopping’ experience. points for the local community. that capture one’s imagination.

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Photo Courtesy: Script

Photo: Surender Gnanaolivu

 Starbucks Roastery in Shanghai is targeted at Generation C

Starbucks Shanghai Roastery Toms flagship store in Venice, is another ‘idea’ spot targeted California provides an experience specifically at Generation C’s desire beyond just shopping for hip shoes. to connect digitally with retailers. It offers coffee and lattes, baked This large flagship store allows goods, plenty of seating and free Wi- customers to interact by pointing Fi to perpetuate its image as not just smartphones or tablets at the café’s a place to shop but a place to hang key features around the Roastery out and to see and be seen. to bring to life the Starbucks bean- In the Indian context to-cup story on their gadgets. Descriptions and graphic imagery Here in India, ‘Script’ by Godrej showing every aspect of the (at its flagship furniture store Starbucks’ bean-to-cup story is in Mumbai) features a number viewable. of new ideas to help create an immersive environment. Its ground floor functions as an exhibition/ training/education/performance space, where interesting events are planned throughout the year to engage customers and the local community.

Its three upper floors showcase living, dining and bedroom settings. Each room is beautifully planned and decorated with wall hangings,

Photo: Surender Gnanaolivu rugs and lifestyle elements to help  Today, it’s about ideas like the Amazon Go store set the correct mood.

November - December 2018 | STOrai | 19 Cover Story

Photo Courtesy: Script

Every aspect of Script has been unique in-house software. To planned down to the last detail to round out its offerings, Script also fully engage the Script customer. provides home related products Special large format magnetic such as bedding, rugs, lamps, china, lifestyle graphic panels are designed kitchenware, cutlery and more. to trigger aspirational thoughts. Script’s four floors of stairwell Educational and humorous product are handsomely decorated with information signs have been artistic felt wall hangings and brass planned to interact and engage with chain curtains. Tables are set with customers and to communicate beautifully detailed decorative about the brand. Even the product presentation props and sign holders settings to capture one’s eye and have been custom designed to tie imagination. On its rooftop, a café is Jose Maria Bustos is Creative Direc- back to the Script brand. being planned introducing a leisure tor at VMA Pte. Ltd., winner of the 1st component to the brand mix. All in Place Award for ‘Specialty Department Large digital screens function as all, its mission of allowing customers Store Design’ by the Institute of Store focal points on every floor providing to write their own ‘Script’ has been Planners/VMSD. He also has an MFA consumers with information about fully realised. (San Francisco Art Institute) and BFA Scripts designers, products and (SFAI) as well as being a Rockefeller So, if I were to conclude with services. Such services include the Fellow (museum studies and educa- ability to customise everything for a VM trend to follow in 2019, it tion). Jose Maria has over 35 years’ the home, from choosing your own would be this: Begin any project experience in Visual Merchandising fabrics for sofas sets to designing by engaging with a dreamer who is working with brands like Saks Fifth your own kitchen cabinetry able to provide ideas and vision that Avenue, Adidas, Harley Davidson and (colours, finishes, function) that can highlight your brand proposition Google S.E.A. He has written articles be instantly viewed using Scripts and then, innovate! for several leading publications.

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Cover Story

Window to VM Visual Merchandising (VM) heads, Design experts and industry leaders give us a peek into the evolution of VM

I believe in the power of the saying ‘Jo dikhta hai woh “Bikta hai’. and with the way retail is evolving, VM plays the vital role of not just engaging consumers on their first visit but also that of keeping them drawn to come back over and over again. It’s all about technology and immersive experiences.” - Samir Modi, MD and Founder, Colorbar

Today, VM carries a lot more responsibility “on it as a function to contribute positively towards business. With stiff competition in every segment, especially the value segment which we operate in, it is the job of VM to ensure footfall. When there are several competing stores in a place, consumers always walk in to a store that has more productive displays. The change in the role of VM is evident from the fact that from being a part of operations, the VM function is now combined with marketing. There is a cohesion across all marketing collaterals and in- store design elements.” - Eshwar Chandra Mithun, DGM, National Head – VM, Unlimited, Arvind Brands

VM will advance towards a stage in retail where “it will impact the store’s look and feel, design and business performance. It will be an important pillar for any retailer who is serious about his image and business alike.” - Pawan Nagarwal, Customer Care Associate and Head – Visual Merchandising, Shoppers Stop Ltd.

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The role of a visual merchandiser has evolved over a period of time. It’s no more about only great displays “and making the store look good. VM in Retail is much more experiential. Understanding what the consumer wants, determining what products will attract consumers and displaying a curated range, giving shoppers something to desire, will soon be the expectation from VM. This approach not only will help increase sales but also strengthen the brand and inspire consumer loyalty.” - Shwetal Basu, Head – Marketing, Metro Brands Ltd.

VM speaks the brand’s ethos. It is as important “ as social media today. Indian consumers are so well tuned with the global scenarios that they understand and appreciate the idea of window dressing, which is challenging Indian VM to raise the bar.” - Karan Berry, Creative Head, Being Human

If you don’t make a big deal out of your merchandise, “ why would your customers? A successful visual merchandiser taps into human emotions. Beyond making necessary purchases, customers may unconsciously buy depending on their current state of mind. Inside the store, customers need to experience pleasant music and fragrance too. In other words, today people might visit your store to enjoy a mood changing experience, something that will make them feel good. And it’s up to the VM to make it happen.” - Tejaswini S Nigam, Head – Visual Merchandising, Pepe Jeans India Ltd.

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VM will have to be nimble with a fast implementation strategy. No longer can you plan ahead with no “ flexibility to capture changes in the market. go for small interventions for top-of-mind recall. Make celebrations out of each occasion to increase visibility. Customers today are mobile- first. A signature across social, digital, online and in store is the need of the hour. Highlights have to be synchronous across platforms as it leads to higher conversion.” - Akash Kumar, VM Head, Lifestyle

VM is more critical today than ever before to drive “ traffic within the store; to communicate brand positioning and offers; to help up-sell & cross-sell merchandise.” - Prerna Mohan, VM & Design Head, Mohanlal Sons

In today’s phygital world, stimulating customer “ curiosity to create brand value remains paramount. Visual Merchandising not only engages the customer but goes beyond information disbursal to provide a three-dimensional multi-sensory in- store experience.” - Kranti Fernandes, Head VM, aLL, The Plus Size Store, Future Lifestyle Fashions Ltd.

With added technology and interactive options, “window and in-store VM displays have grown to the level that helps shoppers relate and engage with the brand stories. In-store displays should inspire and yet be commercial to drive easy shopping atmosphere and engage the customer.” - Marthy Bermejo, Deputy General Manager, Home Centre

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It’s all about selling an entire experience to the “ customer, which makes VM one of the core elements in the retail business today and tomorrow. Meaningful VM can help place you one step ahead of your competitors.

Domestic trends in VM are moving as per the international standards with proper fixtures, assortment displays and signages. Tomorrow’s VM would be more technology-driven with artificial intelligence, digitization, 3D realty playing a big role in it.” - Hemant Agarwal, CMD, V-Bazaar Retail Pvt. Ltd.

VM today plays a pivotal part in Retail Business. Right “ from attracting eyeballs to engaging them & thereby, encouraging consumers to buy more. Creative Facade & Show window helps in drawing them to the store, while interactive displays & signages helps in converting them. The overall Ambience plays a key role in giving great Customer experience which includes the Layout and Internal visibility. It helps in maximising the aesthetics of products with the intent of maximising the throughput.” - Snehal Shah, Sr. VP – Operations, V-Mart

Today, the true meaning of VM is evolving from “ being mere display props in the window to now offering deep knowledge on merchandise and engaging customers in making the right buying decisions.” - Amit Shanklya, Chief Visual Merchandiser, Globus Store Pvt. Ltd.

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Pop-up innovation Shop/Lab – A permanent pop-up space that’s not your average brick-and-mortar experience…

By Joe Baer & Jalpa Patel

he pop-up shop concept has become a key marketing strategy for retailers interested in growing their brand Tand promoting new products. Why? Because pop-up shops feel exclusive and customers don’t want to miss out on a new, exciting and temporarily existing opportunity.

Shop/Lab is an innovative space that combines visual merchandising, technology and data analytics to allow retailers to experiment and test their brand with a suite of services. Think of this little store like a pop-up shop and a laboratory combined in one. This unique store concept sits at Easton Town Center, an indoor and outdoor  Shop/Lab is a pop-up shop and laboratory combined as one shopping complex in north-east Columbus, Ohio, United States. experience they ultimately want to touchscreen allows customers to This 520 sq. ft. shopping provide. shop even when the store is closed laboratory provides a pop-up Interactive Digital Displays and drives awareness to the brand and generates sales 24/7. The store space for brands to create, test and A digital suite of technology interior consists of two interior experiment with fresh concepts embraces the store, starting with and new shopping experiences on a digital storefront sign, which is touchscreens where customers can a short-term lease. It is a learning seamlessly integrated into the store browse through a larger selection of laboratory equipped with modern façade giving it great flexibility products, learn more about a brand technology, retail analytics and with each new tenant that arrives and push purchases to their phone. flexible fixturing systems. It provides in the space, also when there is a A large format screen anchors the tenants all the tools they need to changeover period – the digital back wall allowing tenants to feature observe and learn more about their signage is used to promote the promotional content, social media customers and the type of shopping Shop/Lab brand. An exterior interaction or live footage. Digital

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and software companies partnered term tenants to quickly set up shop To create a “wow” moment, grid together to provide a seamless and transition from one exciting frames suspended above the main network allowing graphics, video brand and shopping experience to table provide a space for unique and online content to merge another, throughout the year. The installations and eye-captivating within the space giving customers fixture collection selected offered displays that attract attention and the options to shop, engage and the flexibility and ease to transition lure guests towards the space. Shop/ educate themselves. This creates quickly from one store concept and Lab has an open-door concept an omni-channel experience in one type of product to another. The with two open garage doors that space. collection allows merchandising serve as entrance and exit points allowing more foot traffic. These Intelligent and Flexible variations from featuring a fuller two glass garage doors rise to open Visual Merchandising inventory and maximum capacities, to a sleek showroom environment the shopping laboratory and form The space is equipped with multiple for featuring or launching a new modern awnings over the entrances sensors and cameras, which provide product. to the store. the tenant with custom data and analytics to help them learn more Tenants can also experiment Interactive Experience about their target customer and how with lighting options through their Guests are welcome to enter the the customer shops. Custom reports smartphones and can control it store from either direction, pulling can be generated while tenants track from wherever they are. This allows them into the space to interact with the experience in real time. During tenants to determine the best the products while taking maximum the design process, the main intent type of lighting for their products advantage of the corner location. was to create a space with ultimate and explore options with lighting They are encouraged to engage flexibility allowing a range of short- throughout the day and evening. with the products, screens and any interactive elements, provided by the tenant. Even the back wall surrounding the screen uses Visual Magnetics allowing the opportunity to create layers of graphics or movable elements to feature a brand or engage a guest in a tactile activity. Similar considerations were incorporated into a small fitting room, which allows guests to choose a variety of lighting options while trying on clothing. This private room has built-in controls where guests can adjust the lighting and charge their phone. This creates a more personable, memorable and enjoyable experience. If a tenant does not require a  The interiors allow flexibility to set up a store in short time fitting room, there is additional

November - December 2018 | STOrai | 27 Cover Story

storage built into a sidewall of the company, founded in 2011 and space designed for brands to learn cabinetry. Contemporary white headquartered in Orlando, Florida. more about their customers and gloss cabinets provide an area for Rock ‘Em Socks offers customers the ever-evolving shopping process. customer transactions, product hundreds of designs to choose This laboratory for brands and and personal employee storage. from, while primarily focusing on their consumers is a reflection on Consumer transactions can be sports and lifestyle themes. With today’s retail world and a reminder anchored in this niche with a Columbus, Ohio being home to that experimenting and continually traditional counter, however, the The Ohio State University (OSU), testing new experiences is a part Shop/Lab package also includes a Shop/Lab was a great location for of the process for today’s most wireless tablet allowing transactions Rock ‘Em Socks to promote their successful brands. to happen anywhere in the space. large variety of OSU gear while still Tenants are encouraged to remove allowing their customers to browse the traditional counter experience and shop their entire collection via allowing more one-on-one the interactive touchscreens. interactions and a more convenient New Age Retail check out process. Shop/Lab offers brands an The first tenant to test their brand opportunity to experiment and in the Shop/Lab space is Rock ‘Em explore new ways of connecting Joe Baer is the Co-Founder, CEO Socks, a specialty graphics sock with today’s shoppers. It’s a fun and Creative Director of ZenGenius, Inc., His career encompasses over 30 years of experience working with many of the top retailers. His pas- sion, drive and enthusiasm for visual merchandising and amazing retail ex- periences leads him to motivate and energize audiences around the world.

Jalpa Patel is the Interior Architect and Senior Visual Merchandiser for ZenGenius, Inc., and she was the lead designer of Shop/Lab. She has over 9 years of retail design experience and is extremely passionate about visual

Photos: Richard Cadan Photogtaphy merchandising, store design, window  Rock ‘EM Socks is the first tenant of Shop/Lab displays and environmental graphics.

28 | STOrai | November - December 2018

Trends

10 Trends for 2019

By Harsha Razdan, Subhajit Mazumder and Devang Shah

lobally, and in India, the retail industry is going through trans- formations impacted by multiple and di- Gverse forces that are changing the way consumers would like to en- gage and transact with brands and how brands would need to evolve their business models, formats and digital strategies.

Globally, while we see retailers investing in digital technologies to enable a seamless O2O (online to offline) experience for the consum- er, we have also seen several retail brands, consolidating and closing their stores under the pressures of store profitability. This often does blip in the celebrations, depend- than their investment in ‘knowing not indicate a slump in demand but ing on how the policies of the new the customer’. As a result, it impact- simply that consumers have shifted government pan out. Overall, con- ed their ability to truly deliver an their preference of brands / chan- sumers will take the power in their omni-channel experience, in spite nels and that their wallet share has hands and will drive consumption of straddling multiple channels. gone elsewhere. It is therefore pru- irrespective of the outcome. dent to not put any more good mon- On the other hand, direct-to-con- ey behind bad money. The top 10 trends likely to be sig- sumer brands, many of which start- nificant in Indian retail in 2019: In India, the optimism of consum- ed as e-tailers, have built a strong erism remains high. On the back of a 1. Rise of Direct to data foundation, the heart of all robust economy, a billion plus pop- consumer brands and omni Digital / Omni-channel experiences. ulation of aspiring consumers with channel retailers They, therefore, have more com- global exposure, the retail industry Indian retail was largely skewed to- prehensive and accurate consum- would see exciting times in 2019. wards physical retail until the emer- er insights to leverage. Many such The political continuity / changeo- gence of Digital. Retailers’ invest- brands are now going strong on ver expected in the upcoming elec- ment on physical infrastructure and the physical channel. This will see tions in 2019, may be a temporary store design have been far higher further prominence in 2019, as they

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scale up their retail presence and and 5G expected to be a reality in not only consider historical trends, business results. 2019 / 20, the power of Digital in the but also factor in individual custom- hands of the consumer is set to rise. er segment / personal preferences 10 Trends for 2019 2. Retail format innovation This will lead to higher volumes of to decide the range. For Indian consumers, physical Digital content consumption by the 5. Vernacular voice presence and the ability to ‘touch, average Indian. feel, and experience’ enhances a commerce One of the possibilities is smart brand's credibility. This tendency In a country like India, where con- tagging merchandise, as the con- will grow. However, we may not see sumers are more comfortable with tent is played in real time, leading to a widespread expansion of stores as stating their requirement, than typ- ‘Entertainment (E) Commerce’. large retailers, having more than 300 ing it, the digital technology would stores have found an inflection point 4. Data Driven merchandise truly break the divide between the in the range of 300 – 500. For them, Diversity in India is supreme, and a educated and sophisticated urban the marginal increase in revenue localised assortment strategy would shopper vs. the literate / marginally from an incremental store beyond always make the brand more rele- educated rural shopper, especially this point does not justify the in- vant across different preference seg- if it is possible in over 25 languages. crease in capex and operating costs. ments of consumers. This will lead to never-imagined With the advent of advanced 6. Hybrid operating models innovations in the form and format data science, AL / ML capabilities, The last few years witnessed many of retail with smart placement of Indian retailers are expected to fur- new operating models in the retail brands. This will see a surge in 2019 ther invest in ‘knowing the custom- and e-commerce space such as mar- as urban real estate peaks in terms er’ better through initiatives such as ketplace, managed marketplace, of price and space congestion. Customer 360 degree programmes, franchisee and company-owned CRM and loyalty programs. This in stores and hyper-local. Newer mod- 3. Enhanced connectivity turn would keep feeding insights to els, focused on serving consum- and internet speeds the upstream of the value chain at ers better, will continue to evolve. With access to high speed optical fi- the merchandise and assortment Models such as assisted commerce bre in the hinterlands of the country planning (MAP) stage. MAP would and omni-channel variants will ma- ture further to offer retailers greater room to monetise .

7. Competition-driven focus on micro-segments

A combination of growing compet- itive pressures as well as rising dis- posable incomes will lead retailers overwhelmed by the tsunami of brands and variants to target specif- ic niches in the market—catering to specialised needs of the segments that were previously considered too  The power of digital in the hands of consumers is set to rise small and unattractive.

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Harsha Razdan is Partner and Lead, Consumer Markets for KPMG in India. He has over 20 years experience in business consulting and consumer mar- kets across Asia-Pacific and Europe.  2019 will see a lot of automation in the supply chain

8. Evolving CRM 10. Supply Chain Automation As urban markets, particularly With the advent of robotic process points of sale in Tier 1 and Tier 2 automation (RPA), warehousing au- cities mature, retailers are likely to tomation, superior image recogni- work towards the evolution of their tion, drone technology and AI-driven CRM programs to focus on retention efficiency, back office processes will rather than acquisition. This will lead evolve beyond being cost centres Subhajit Mazumder is a Director, to innovation around loyalty pro- to being true competitive advan- Strategy & Operations (Customer & grams, subscription-based benefits tage drivers for retailers in the year Channels) practice, KPMG India, fo- cused on retail & consumer products. and cross incentivisation between ahead. Omni-channel commerce re- quires retailers to have the ability to He has 14 years of experience in con- non-competing brands catering to sulting, encompassing client relation- similar segments. AI and data ana- ship anything from anywhere to an- ships, delivery and leadership. lytics will play a huge part in this. ywhere within limited time frames. A solid technology backbone and 9. High Quality Private automating processes will allow re- Labelling tailers to compete with their online Retailers have been hiring top tal- counterparts. ent to manage their private labels. Overall, the sentiments for 2019 Across categories, private labels will remains positive. Industry players evolve beyond being cheaper alter- are looking forward to betting on natives to market leading brands. some of these trends. The potential Devang Shah is a director with the management consulting practice at Retailers will focus on driving value of the Indian market remains sig- KPMG India, specialising in Consum- to the customer with their product nificantly high and much of this is er Markets. He leads consulting pro- portfolios, focusing on high quality still untapped by organised retail. jects, helping retailers build business goods being made available at com- This gives enough opportunities for strategy, grow revenue and improve petitive prices to consumers. everyone to win in their own ways. efficiencies.

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CRS 2018

Success sutras

Right from the keynote to the brand presentations, this year’s edition of the Chennai Retail Summit was all about achieving success in retail despite all odds and the learnings along the way

ne of the fundamen- tals of business is to be present where the consumer is. Not only does this Oinfluence the choice of location of stores, but it also drives the choice of channels to be present on. The consumers of today shop as easily online as they do offline and often shift between the two seamlessly. Sometimes, they discover and re- view online and buy offline or they experience a product offline and purchase online, after taking feed-  K.R. Nagarajan, Founder & Chairman, Ramraj Group of Companies back about the product on social channels. Location and channels Day of Insights its due recognition. I did not wear therefore have emerged as two sig- dhoti to promote Ramraj brand, but The tone of the day was set by a nificant drivers of growth. to promote dhoti itself. Today, we powerful keynote delivered by K. have 125 showrooms with exclusive Going forward, retailers that are R. Nagarajan, Founder & Chairman, outlets for dhotis abroad. We have present at the right locations and Ramraj Group of Companies in the talent, strength and potential on the right channels with an iden- which he shared the story of how he to explore opportunities in other tical and seamless experience on brought prestige to not just his com- countries and grow like a Walmart. both will have a competitive ad- pany but the garment of dhoti. “I Ethics, quality and technology can vantage. Themed ‘Growth in Retail: was once refused entry into a hotel help change our game and increase Locations and Channels’, the Chen- because I was wearing a dhoti. I set export,” he said in his keynote. nai Retail Summit 2018 brought to- to change the perception through gether stakeholders of the industry a ‘Salute Ramraj’ ad campaign for Big Worth, an off-shoot of one of on a common platform to discuss which we roped in the actor Ja- ’s most prestigious busi- achieving growth through the right yaram and shot in the same hotel nesses- Butterfly Group, was the combination of location and chan- where I wasn’t allowed. It broke presenting partner for the Summit. nels. all stereotypes. Today, Dhoti has The summit started with a warm

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One-on-One Discussion  Kumar Rajagopalan, CEO,  L-R: T T Jagannathan, Chairman, TTK Group and Kumar Rajagopalan, Retailers Association of India CEO, Retailers Association of India

Brand Story One-on-One Discussion  Dilip Kapur, President, HiDesign  L-R: Balachandar R, Founder & CEO, Wassup Laundry and Bhavesh Shah, CEO, SPI Cinemas and inclusive Welcome Address by discussions and inclusion of more Suhail Sattar, MD, Hasbro Clothing brand stories, where head exec- Pvt. Ltd. & Chairman, Southern Re- utives and founding members of gional Committee-RAI. successful retail brands like Natu- The day progressed with panel rals, Max & Lifestyle, CaratLane, SPI discussions on relevant topics such Cinemas and HiDesign shared the as ‘Growth in Retail: Locations and behind-the-scene narratives of their Channels’ and ‘Future of Retail: challenges and achievements. This Brand Story Technology, Destinations and Con- helped the new players in the mar-  Raghu Rajagopalan, President sumers.’ Panellists focused on the ket to learn and get inspired. & COO, Max Retail Division critical components of success in (Lifestyle International Pvt. Ltd. ) This year’s crowd-stealer though addition to locations and channels. was the one-on-one conversation way and future of retail. More success stories between T. T. Jagannathan, Chair- Based on participant feedback man, TTK Group and Kumar Rajago- With focus on journeys of suc- from the earlier Summit, there was palan, CEO, Retailers Association of cessful retail brands, the CRS 2018 a sharp departure from the regu- India, where the legend enthralled served as a great learning ground lar format of the conference. This everyone with memories of building for retailers who want to take their involved reduced number of panel the brand, lessons learnt along the business to the next level.

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Panel Discussion–Growth in Retail: Locations and Channels

 L-R: Dr. Hitesh Bhatt, Director - Marketing & Communication, RAI; Avnish Kumar, Director, Neerus; BA Ramesh, Joint Managing Director, Thangamayil Jewellery Ltd.; B.A. Srinivasa, Jt. Managing Director & CEO, Vivek Pvt. Ltd.; Sumit Dhingra, Sr. VP and CEO - Arrow, Izod & Aéropostale (India), Arvind Fashions Limited; Sunil Sanklecha, Founder, Nuts & Spices and Suhail Sattar, MD, Hasbro Clothing Pvt. Ltd.

Panel Discussion–Future of Retail: Technology, Destinations and Consumers

 L-R: Balachandar R, Founder & CEO, Wassup Laundry; Ajay Kumar Jain, ED, Prisma Garments; Binod Homagai, Co - Founder & COO, Wow Momo; Gautam Sarogi, CEO, Go Colors (Go Fashion India Pvt. Ltd.); Pratik Shah, CEO, Specsmakers Opticians Pvt. Ltd.; Senthil Natarajan, Managing Partner, Kovai Pazhamudir Nilayam and Suresh Jain, MD, Kesar Gift Mart (P.) Ltd.

Brand Story Brand Story Presentation

 CK Kumaravel, Co-Founder,  Mithun Sacheti, Co-Founder &  Girish Mathrubootham, Founder Naturals MD, CaratLane and CEO, Freshworks

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Presentation Presentation Presentation

 Anil Patel, Founder and CEO,  Surendra Nayak, Head - Sales  Shyam Sunder K, Founder & HotWax Commerce & Marketing, Logic ERP Solutions Managing Director, 4dimensions Pvt. Ltd.

Presentation Presentation Presentation

 Anu Vittal, Global Business  Anupama Kadambi, Chief  Sathiyanarayanan Development, Wooqer Experience Officer, GoFrugal Vijayaraghavan, Ajiratech

Felicitation Ceremony of RAI’s Southern Regional Committee

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Partners at Chennai retail summit (CRS) 2018

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India Retail Excellence Awards

Lauding the best Supported by Retailers Association of India (RAI) and organised by RITZ Magazine, the India Retail Excellence Awards - Chennai 2018 recognised excellence in retail

ndia Retail Excellence Awards “Today’s big retail churn is not and gave due consideration to the (IREA) felicitated the best of just revolutionising Indian retail but many formats of retail such as Eth- the best in the retail industry also separating the winners and the nic Wear/Apparels, Family Store, at a gala ceremony in Chennai laggards. Brands that have their Food and Beverage, Services. There commemorating the Chennai fundamentals right and are focused were some special categories of Retail Summit 2018. Retail is at an on all the right things are emerging I awards that sought to appreciate interesting juncture in India with as trend-setters. RAI is pleased to those who influence retail and have new brands and formats entering support the India Retail Excellence been innovators, propagators and the market and the old ones rein- Awards that have been instituted to trend-setters. venting themselves. Consumption shine the spotlight on these stars of is on the rise, driven by aspirations retail who have shone bright despite The process all odds. We see it as a recognition and increase in per capita income. A jury panel comprising eminent of their efforts, focus and hard work, Technology is adding interesting personalities from the industry, and a salute to their indomitable twists by facilitating innovative busi- thoroughly evaluated the entries ness models, aiding efficiency and spirit to constantly stay relevant to short-listed by a reputed audit agen- redefining customer expectations the times, the customers and the cy to select the winners. as well as experiences. It’s only fair industry,” said Kumar Rajagopalan, to recognise the genius of all the RAI, CEO. The awards were given away at pathbreakers in this new-age retail With as many as 22 categories, a gala ceremony in the presence of movement which is what IREA set to the inaugural edition of India Retail the who’s who of the Indian retail in- accomplish. Excellence Awards was inclusive dustry in Chennai.

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And the winners are…

Best Retailer 2018 –Women’s Apparel: Naidu Hall Best Retailer 2018 –Electronics: Girias (South the Family Store (Promoters of the well-known India’s No.1 Consumer Durables Retailer with 65 store in Chennai with over seven decades of Mega Stores in South India) experience and a loyal customer base)

Best Retailer 2018 –Ethnic Men’s Wear: Ramraj Best Retailer 2018 –Ethnic Women’s Wear: Nalli Cotton (Tirpur based production and trading Silk Sarees (The leading name in the silk and house of Dhotis, engaged in the business of Kanchipuram Saree industry since its inception Indian Market) in 1928)

Best Retailer 2018 –Food and Beverage: Adyar Best Retailer 2018 –Family Store: Pothys (A Ananda Bhavan (Oldest Adyar, Chennai based house-hold name in the textile industry in Tamil chain of confectioners) Nade with an impeccable reputation)

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And the winners are…

Best Retailer 2018 –Grocery: Kovai Pazhamudir Best Retailer 2018 –Healthcare: Thulasi Nilayam (Coimbatore’s most famous fruits and Pharmacy (Started in 2001 by 2 leading vegetables reseller) distributors to provide world class pharmacy at the lowest possible price)

Best Retailer 2018 –Jewellery: GRT Jewellers Best Retailer 2018 –Mall: (A (Jeweller renowned for the purity of the shopping mall in Chennai promoted by Express ornaments, wide choice of designs and consistent Infrastructure, a division of Express Newspapers customer delight) Pvt. Ltd.)

Best Retailer 2018 –Services: Naturals Salon (A Best Retailer 2018 –Speciality Retail: Fipola trendsetter in the Salon industry of India with an Retail (The first modern retail company for fresh aim to bring international beauty trends to India) proteins)

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And the winners are…

Best Retailer 2018 –Store Design: LKS Gold Best Luxury Real Estate Destination 2018: Haven (Reputed goldsmith and jewellers in the Express Exclusive (Luxorious showpiece home- region) space provider in Chennai)

Best Family Entertainment Multiplex 2018: South India’s Most Influential Celebrity: Shruti (A 27 acres sprawling Family Hassan (Indian Film actress and singer who Entertainment Centre along the East Coast Road predominantly works in Tamil, Telugu and Hindi in Chennai) language films)

Comedy King: Yogi Babu (Famed comedy actor Evergreen Queen: Simran Rishi Bagga (Versatile from the Tamil Film Industry who rose to fame actress with experience in Tamil and Telugu due to his laudable performances in Maan Karate films) and Aandavan Kattalai)

November - December 2018 | STOrai | 43 RRS 2018 gearing up for tomorrow

RAI’s Retail Regulatory Summit 2018 focussed on the Evolving Role of the In-House Legal Counsel

oday’s business en- vironment is charac- terised by changing dynamics, volatility and a highly complex Tregulatory regime. To remain ahead of the competition, business hous- es have to frequently realign their business plans and re-strategize in the board room. As a result, the role of the in-house counsel — the com- pany’s legal team — has undergone a sea change. Gone are the days when the job of the in-house coun-  Felicitation Ceremony of RAI’s Advocacy Committee sel was limited to co-ordinating and In-house counsel are being looked briefing the external counsel on the ful dialogue on the topic. The panel at as people who weigh the pros various litigations the company was was moderated by Anshul Jain of and the cons of a decision, scan the involved in. PwC. The consensus was that the risks and its probable implications legal counsel have now moved from Today, legal heads are expect- and suitably advise management on the courtroom to the boardroom ed to be innovative, creative and every important decision that has and that the role is no longer reac- strategic in their thinking. Themed significant business impact,” said tive but proactive. ‘Evolving Role of the In-house Legal Kumar Rajagopalan, CEO, RAI in his Counsel’, the Retail Regulatory Sum- welcome address. The other highlight of the sum- mit (RRS) 2018 brought together the The address was followed by a mit was the session on Prevention retail heads and legal counsel on a stimulating panel discussion on the of Sexual Harassment of Women at common platform to deliberate on theme of the summit, ‘Evolving Role Workplace, Challenges and the Way the changing needs from the legal of the In-House Legal Counsel’. Pan- Forward. The topic had a high rele- team and how to meet them. ellists included legal counsels of top vance in today’s context where sev- “In the last decade, there has Indian companies such as APK Chet- eral instances of sexual harassment been a radical shift in the role of tiar, Infiniti Retail (Croma); Viswana- in reputed organisations are coming the in-house counsel. Today’s legal than Vasudevan, HUL; Gopal Naik, to light. heads are expected to provide valu- Aditya Birla Retail; Pankaj Patel, Fu- able inputs at the business strategy ture Retail; Raghu Pilaka, Reliance Other sessions of the day and decision-making stage and be Market; and Ramaprasad S, Land- included: an integral part of board meetings. mark Group engaging in meaning-  Interactive Session on Plastic

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Presentation Interactive Session Interactive Session  Goldie Dhama, PwC  Dr. D D Kale (Member of Expert  GR Srikkanth, Spencer’s Committee - Govt.) Retail

 Retail Legal Counsel of the Year (Large Format): Gopal Naik - Aditya Birla Retail Ltd.

Waste Management Rules and implementation by Dr. D D Kale, Member of Expert Committee - Maharashtra Government.

 Panel discussion on Key Regula- tions and Compliances in Retail

 Presentation on Insolvency by GR Srikkanth, Spencer Retail  Retail Legal Team of the Year (Large Format): Landmark Group

This year, the Summit recognised exceptional contribution to retail by legal teams as well as individuals through Retail Regulatory Awards.

For those interested in legal, compliance and regulatory aspects of retail, RRS 2018 proved to be the ideal platform to network, engage  Retail Legal Team of the Year (Small Format): Inorbit Malls (India) and learn. Private Limited

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Panel Discussion: Evolving Role of the In-House Legal Counsel

 L-R: APK Chettiar, Infiniti Retail (Croma); Viswanathan Vasudevan, Hindustan Unilever; Gopal Naik, Aditya Birla Retail; Anshul Jain, PWC; Pankaj Patel, Future Retail; GR Srikkanth, Spencer Retail; Raghu Pilaka, Reliance Mar- ket and Ramaprasad S, Landmark Group

Panel Discussion: Prevention of Sexual Harassment of Women at Work- place, Challenges and the Way Forward

 L-R: Dinesh Shetty, Titan; Prasad Tokekar, Reliance Retail; Ameet Naik, Naik Naik & Co.; Rajeev Chhabra, Shop- pers Stop; Jyothi VK, Aditya Birla Fashion and Retail; Arpita Mukherjee, FabIndia and Pulin Kumar, Adidas India

Panel Discussion: Retail Knowledge Forum (Key Regulations and Compliances)

 L-R: Jaffer Panjwani, Metro Brands; Manu Grover, Biba India; GR Srikkanth, Spencer Retail; Prashant Mehta, Legal Consultant; Sahil Gupta, PWC; Meenakshi Nayyar, Marks and Spencers and Monali Mahajan, Inorbit

46 | STOrai | November - December 2018 TradeConnect

SME GROWTH IN A CONNECTED WORLD TradeConnect – the first cross-border trade & learning meetup for SMEs launched in Singapore

ver a two-day event in Singapore on 13 & 14 November 2018, SME members of RAI GlobalLinker met with SMEs from Philip- pines, Singapore and others from India at TradeConnect—the first ever global SME Omeetup for cross-border trade and knowledge. Hosted at the Singapore Expo Centre, TradeConnect saw business owners discuss cross-border trade oppor- tunities and attend expert sessions on digitisation. Keep- ing in line with GlobalLinker’s vision to build the world’s largest network of SMEs and create a platform where ev-  Hon’ble Prime Minister of India, Narendra Modi ery SME can achieve its big business dream, TradeCon- referencing India ASEAN SME trade corridor in his nect brought to life the concept of SME-led cross-border address at Singapore FinTech Festival trade corridors. It will be a regular SME event held for lo- cal, national and global trade and knowledge. industry flew from India to Singapore for TradeConnect, As a part of RAI’s commitment towards growth of which was hosted on the sidelines of the Singapore Fin- SMEs, selected RAI GlobalLinker members from the retail Tech Festival, the world’s largest FinTech festival.

November - December 2018 | STOrai | 47 TradeConnect

TradeConnect Highlights

 Opening remarks by GlobalLinker Co-Founders, Summi Gambhir & Sameer Vakil

 L-R: John Januszczak (UnionBank of the Philip- Make business growth pines); Dr. Ajay Sahai (DG & CEO, FIEO); Serene Ho of SMEs globally, simpler, (Director, Networked Trade Platform, Singapore); “ Belson Coutinho (Sr. Vice President, Marketing, more profitable & eCommerce & Innovations, Jet Airways) enjoyable!” Co-Founders, GlobalLinker

 Ravi Menon, MD, Monetary Authority of Singapore announced Business Sans Borders in his opening  Akshay Kale, AGM - Advocacy, RAI with TradeCon- remarks, of which GlobalLinker is one of the found- nect delegates ing members

 Sameer Vakil, CEO & Co-Founder GlobalLinker describing SME benefits of Business Sans Borders along- side founding members of the initiative. (L-R) Representatives of MAS, IMDA, SAP, Mastercard, GlobalLinker, Yellow Pages and DBS Bank

48 | STOrai | November - December 2018 TradeConnect

SME Networking

 RAI- GlobalLinker attendees with speaker Belson Coutinho, Jet Airways and GlobalLinker Co-Founders Summi Gambhir & Sameer Vakil

RAI GlobalLinker delegates from India at  SMEs from India, Philippines and Singapore introducing themselves during the power networking TradeConnect session Vijaya Kumar Mittesh Ramasabhu Gaiwala Vegie Graments GreenLands Pvt. Ltd.

At TradeConnect, delegates from India, Philippines & Singapore experienced first hand the power of a united  GlobalLinker CXO  Delegates exchanging global SME community. In a matter of hours, a number of & Co-Founder, Summi business deals were initiated, leaving SMEs feeling em- product samples Gambhir with women powered & supported. While breaking the ice, they also entrepreneurs got to have fun at the photobooth & captured memories with fellow SMEs!

Events like these, where business owners from different countries & industries come together to collaborate, “ ideate, network, learn and to inspire and to be inspired, just don’t exist! TradeConnect has left me with a bigger vision for my business and shown me the transformative power of digitisation, while also helping me make new global friends.” Mittesh Gaiwala, RAI - GlobalLinker Member

Business Networking for business growth

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November - December 2018 | STOrai | 49 Members Networking Meet

Connecting for growth Retail hub Bengaluru gets a platform to exchange ideas and collaborate with businesses at the Bengaluru Networking Meet

etailers Association of India (RAI) organised a networking meet for its members at Roy- al Orchid, Bengaluru, Ron 6 December. RAI set out to em- power retailers from Bengaluru and strengthen the ties of the retail com- munity in the region. Kumar Rajagopalan, CEO, RAI wel- comed the member retailers from the start-up capital of India with a mem- orable address, where he focused on the need for harmony between retail- ers and how RAI has set out to enable the same. This was followed by the  One-on-One Discussion Between Hari Menon, Co-Founder & CEO, Big magnum opus of the event, a One- Basket and Kumar Rajagopalan, CEO, Retailers Association of India (RAI) on-One Discussion between Hari Me- non, Co-Founder & CEO, Big Basket and the RAI CEO. The Bigbasketeer spoke his heart out and shared the story of Big Basket’s inception and growth with the audience. He spoke about his struggles on his journey to becoming the first successful online grocery retailer in India. The event also saw Partner Speaks from Stylumia and FreshWorks along with a group discussion with all the members. Lawrence Fernandes, Di- rector - Retail Learning and Member- ship, RAI concluded the event with a Vote of Thanks. The Bengaluru Net- Presentation Presentation working Meet saw the participation  Surya Murali, Freshworks  Ganesh Subramanian, Founder of 175+ retail CEOs and proved to be & CEO, Stylumia a productive initiative.

50 | STOrai | November - December 2018 Shillong Retail Forum

Shillong Retail Forum 2018 sets a new precedent Retailers Association of India and CR Projects, Shillong brought together retailers in the region on a common platform for the first time

he inaugural Edition of Shillong Retail Forum 2018 hosted by Re- tailers Association of India and CR Projects, TShillong was themed ‘Collaboration and Customer Centricity: The Way Forward’. It set out to create an op- portunity for all retail stakeholders in the region for a common dialogue and find the right business partners.  L-R: Mariahom Kharkrang, IPS , SP , Special Branch , Shillong, Govt. of The idea was to facilitate mutual Meghalaya; Christopher Rani, CEO, CR Projects; Shri A.L .Hek Hon’ble learning and exploring collabora- Minister, Health & F.W., I.P.R., Arts & Culture, Govt. of Meghalaya; Kumar tion opportunities to take individual Rajagopalan, CEO, RAI business as well as retail in the re- gion to the next level. Christopher Rani, Founder & CEO, CR Projects rendered the wel- come speech which was followed by an engaging talk by Kumar Raja- gopalan, CEO, Retailers Association of India (RAI). The Chief Guest Shri A. L. Hek Hon’ble Minister, Health & F.W, I.P.R, Arts & Culture, Gov-  L-R: Kumar Rajagopalan, CEO, RAI; Suhail Sattar, Director, Hasbro ernment of Meghalaya delivered a Clothing Pvt. Ltd. and Lalit Agarwal, CMD, V-Mart keynote speech which was highly appreciated.  Presentation—CR Projects vote of thanks by Lawrence Fer- The key highlights of the evening A highlight of the evening was nandes, Director–Learning and include: a free-wheeling conversation be- Membership, RAI. The event was fol-  Panel Discussion— Collabora- tween the RAI CEO, Suhail Sattar, Di- lowed by a networking cocktail and tion and Customer Centricity: rector, Hasbro Clothing Pvt. Ltd. and dinner. The first edition of Shillong Lalit Agarwal, CMD, V-Mart. The Way Forward Retail forum has set a benchmark  Presentation— POS India The evening concluded with a for all of its forthcoming editions.

November - December 2018 | STOrai | 51 Consumer Insight

Shoppers stock RAI’s Festive Shopping Index 2018 reveals consumer preferences on several aspects of shopping

etailers Association of tive season (October – December). retailers will have to really hone-up India (RAI) in partner- “The Festive Shopping Index is an their skills to ensure that they give ship with LitmusWorld effective way of understanding what consumers the right product with has been engaging consumers want to do during the the right amount of information as with consumers since festive season. It provides important well as the right amount of experi- Rlast year to understand the key insight into what consumers want, ence, which is becoming increas- shopping criteria for consumers which retailers can use to formulate ingly important for consumers,” he during the festive season. their strategies for the season to be- added. come more consumer centric,” said This year too, RAI and Litmus Speaking about the Index, Kumar Rajagopalan, CEO, RAI. reached out to over 50,000 consum- Ramesh Natarajan, Co-founder/ ers to gauge their sentiments to- “Results from this year’s conver- COO, LitmusWorld said, “The con- wards shopping during the peak fes- sation with consumers indicate that sumer voice is out. Brands cannot

52 | STOrai | November - December 2018 Consumer Insight

November - December 2018 | STOrai | 53 Consumer Insight

afford to ignore the emotions of as 25% willing to spend from Rs Other findings their consumers. Customer Experi- 15,000 to Rs30,000 and 20% want- Like last year, this year as well ence (CX) is here to stay and will be ing to spend Rs30,000 to 1,00,000. clothes (66%) dominated the shop- the not-so-secret weapon for digital A significant 11% are willing to ping category. Electronics (45%) and transformation.” spend more than Rs1 lakh this fes- Mobiles (38%) were ranked second tive season. key Findings and third. One of the things that stood out Compared to last year, big chang-  Online (65%) was the most pre- es have been observed in the way this year in terms of factors influ- ferred channel followed by malls consumers want to buy electronics encing purchase decision is that (64%). and jewellery. The percentage of 60% consumers are clear that they consumers wanting to buy elec- want a discount. A whopping 64%  Credit card was the most pre- tronics has increased from 36% in felt that product features are im- ferred mode of payment (42%) 2017 to 45% this year. This is indi- portant to them, which is similar to with debit card being the sec- cates a significant change in shop- last year. However, there has been a ond preference (26%), followed ping preferences. Similarly, jewel- jump in the percentage of consum- by cash (19%). lery, that failed to gain significance ers putting a premium on consum-  The most influential advertising last year (19%) has experienced a er experience from just 26% last media was dominated by ads traction and has gone up by 4% to year to 41% this year. This indicates reach 23% this year. that consumers are becoming more seen on social media—Online and more uncompromising and do (69%). Ads seen on television The figures indicating the overall not necessarily want to a trade-off came second with a share of shopping budget of consumers are between price and consumer expe- 39%, followed by those in news- encouraging this year with as many rience. papers at 35%.

54 | STOrai | November - December 2018

Highlights

International Home + Housewares Show THE Innovation Showcase The International Home + Housewares Show is one of the best international sources of innovative ideas and products in the category

n addition to more than 2,200 ex- hibitors showcasing thousands of new products, the Internation- al Home + Housewares Show offers visitors education and an Iinsight into business practices and trends that are shaping the industry.

One key reason for international buyers to visit the Show is to find in- novative new products and brands to differentiate their product offering and concepts. In the U.S, kitchenware and houseware are driven by inno- vation and design, which is why the Show is the used as the platform to launch thousands of new products and ideas.

International buyers who used to visit the Show every two years now feel compelled to attend every year as Chicago has become THE place to find innovation. Supporting this, the International Housewares Associa- tion (IHA) organisers of the show keep the Inventors Corner brings the raw stores, branding experts and dis- receiving positive comments that the edge of creativity to the Show. The tributors worldwide, hoping to lock products showcased are colourful, Inventors Corner Pavilion features in deals with the featured inventors fashionable, fun—and most import- 60 booths showcasing new house- and introduce their new products to ant, functional. wares innovations and just-ready- the marketplace. Special programs highlighting in- for-market inventions. It has become Inventors Revue novation at the Show include: a major destination for the media, The Inventors Corner also features Inventors Corner shopping networks, manufacturers, the Inventors Revue, where startup Located in the Clean + Contain Expo, major retailers, catalogues, chain marketers present their creations to

56 | STOrai | November - December 2018 Highlights

a panel of experts and seasoned in- ventors offer presentations on how to succeed as an inventor. Each inventor is given the oppor- tunity to present their new product to a powerful panel comprising industry leaders. The panel gives objective feedback — good, bad or indifferent. Pitch to the Pros has proven to be a great benefit to the inventors. It’s great fun for the pan- ellists as well because they too often find products they are interested in.

IHA Global Innovation Awards (gia) for Product Design The IHA Global Innovation Awards (gia) for product design honour ex- hibitors’ latest creations and cut- IHA Student Design companies who select the winning ting-edge innovations. Competition projects from an international field Innovative products are judged Sponsored by IHA, design students of submissions. by a panel of experts that includes create concepts for housewares The Student Design Competi- designers, retailers and news media. tion’s challenge to students is to re- Product finalists (in 13 categories) products. This global competition design a current houseware product selected by the judges are featured is recognized by design profession- to meet the needs of the future or to in the Buyers Clubs at the Show and als for its contribution to education. create a concept for a new product. at the IHA Global Innovation Awards The competition is judged by de- Winning projects are selected for display in the Lakeside Center Lobby. signers and managers at houseware their innovation, understanding of production and marketing princi- ples, and quality of entry materials. The winners of the IHA Student Design Competition demonstrate their concepts in the exhibit in the Lakeside Center Lobby.

The International Home + Housewares Show will be held in Chicago from March 2 to March 5. To know more, visit https://www. housewares.org/show/

November - December 2018 | STOrai | 57 SME Inspirations

Building a Legacy Third generation entrepreneur Ajay George Varghese has taken Bipha Laboratories, the business his grandfather started 90 years ago, to markets beyond India

here is a lot to be said for a brand that has stood the test of time for nine decades and continues to reinvent Titself, while being true to its found- ing principles. Bipha Drug Laborato- ries Pvt. Ltd. is one such Ayurvedic legacy brand that was founded in 1929 by Pappy Vaidyar. Pappy was an accomplished Ayurvedic phy- sician with a divine gift to heal. His sole motive behind starting this business was to help alleviate suffer- ing. Taking this rich legacy forward in the 21st century is third generation entrepreneur Ajay George Varghese. Under his leadership, Bipha has not only increased its product portfolio but has also expanded its global footprint. Ajay’s strength has been his abil- ity to re-imagine Ayurveda so that it is more accessible to the modern urban population. He shares his are special formulations. At Bipha, Retail Foray business journey, dreams and aspi- we are proud to have several pro- The growth of the company has prietary products that are extremely rations… been phenomenal. In the 1960s, we popular and efficacious. We have The beginning laid the foundation for a modern a wide range of products under enterprise. In the 1970s, we were the Bipha was founded in 1929 in Ochi- the segments of Aroma, Ayurvedic first Ayurvedic company in ra, Kerala. We are one of the first Formulations, Food and Nutrition, Ayurvedic companies from Kerala. Personal Care and Wellness Supple- to manufacture ayurvedic formu- In Ayurveda, there are two types ments. Our focus has always been lations in convenient forms such of products – classical products on providing genuine products that as tablets without compromising and proprietary products, which customers can rely on. on their efficacy. Around the same

58 | STOrai | November - December 2018 SME Inspirations

 Bipha was recognised as the Best Brand of 2017 by the Kerala State Small Industries Association

we have over 340 products across seven categories.

Our first international store is coming up in Kuwait followed by Romania.

Business USP We are the only Ayurvedic retailer from Kerala with nine decades of experience. We have mastered the process of creating genuine ayurve- time, we started exporting to oth- Ayurveda) to combat lifestyle dis- dic products. We still follow a lot of er countries. (Today, we export to orders. We felt this was a large, al- the original practices such as use of more than 15 countries.) In 2010, we beit unorganised market and there woodfire, copper vessels and gran- got into retail in a big way. Our first was an opportunity to deliver our ite pestle & mortar. The system is retail store started at the Cochin In- products through retail channels. At semi-automated now, but the pro- ternational Airport. present, we have 12 stores. In addi- cesses are still original. It’s the ideal tion, we sell on various online plat- We primarily got into retail be- convergence of the old and the new. forms as well as our own website. cause of the rise in lifestyle diseases. We are an extremely custom- The urban mobile population was We have come a long way…We er-centric organisation. Every deci- not really going to their roots (of started with two products and now sion is taken keeping the customer

November - December 2018 | STOrai | 59 SME Inspirations

in mind. Our company is built on a our target is to have 100 stores. single value called ‘trust’. Trust is Our vision is to have an even what we stand for, trust is what we  Ajay George Varghese, CEO & stronger multinational presence. sell. This trust is based on value, leg- Managing Director, Bipha We already have a presence in Eu- acy, history, principles and relation- rope, Middle East, Maldives and ships. Seychelles. to network with fellow entrepre- Challenges We want to make Ayurveda ac- neurs. Getting trained manpower is the cessible and popular. We are in the Message to aspiring entre- biggest challenge for any compa- process of establishing high-end ex- preneurs ny that is looking to grow. Finding perience centres in different coun- Entrepreneurship is a great avenue good, committed and qualified tries. Besides products, these cen- for any individual to opt for. India people is difficult, everything else is tres will offer services. manageable. has a population of 1.3 billion. We We also want to create online re- have dynamic talent and a large Awareness about Ayurveda is tail digital centres. pool of resources. To provide peo- lacking. Even though it’s part of ple productive employment is the our heritage, few have a real under- On Retailers Association of biggest opportunity and challenge standing of Ayurveda. People look India (RAI) for entrepreneurs. at it as an alternative rather than a We have a great relationship with holistic and significant wellness sys- RAI. Retail is an exciting business Having said that, entrepreneur- tem. Ironically, it is a system that is to be in and every day is a learning ship is not easy. It requires commit- being recognised and appreciated opportunity. RAI has enabled us to ment, persistence, hard work and in countries other than India. interact with other retailers in Ker- passion. It’s a challenging process ala and India; sharing of information My big business dream but equally exciting and rewarding. and experiences. The learning has We aim to have more than 20 retail An entrepreneur should always been tremendous. stores by the end of the year (2018). remember: Profit is a by-product, it We would like to grow our presence On RAI - GlobalLinker is the ‘people’ element that is the in tier 1 & 2 cities in India. By 2021, RAI - GlobalLinker is a great platform most important.

60 | STOrai | November - December 2018

Franchising

Mini TRS - The Raymond Shop double century Mohit Dhanjal, Director – Retail, Raymond on launching over 200 Mini TRS outlets across emerging towns of India in just 19 months and the merits of this novel franchising model

ince nine decades Ray- mond has maintained its position as one of the country’s leading retailers of men’s ward- Srobe solutions. Over the years, it has been constantly reinventing itself with the introduction of new prod- uct categories, processes and even formats. One such novel introduction is a format called the Mini TRS – The Ray- mond Shop (Mini TRS). Launched in 2017, Mini TRS is a different franchis- ing model that will help Raymond tap the growth opportunity present beyond Tier, I, II and III towns. It is from the first store in Bihta, near Pat- ness model itself that paved the way an asset-lite model that requires na in March 2017 to 100 stores was for the brand to enter these emerg- an investment less than 1/3rd of a covered in just 12 months; while the ing towns of India, which hitherto regular TRS. The low cost helps in 200th outlet milestone was reached were inaccessible. in another seven months. Launch- making the business profitable in Second, the new business model ing 200 stores in just 19 months was the emerging markets of tier IV and was then brought alive by associat- tier V. The design is agile with mod- quite a feat—it is the fastest retail ing with like-minded franchisees in ular interiors. This means the stores store roll out in the Men’s Fashion these potential towns by leveraging can be set up within 15 days instead & Lifestyle category. With these new their market knowledge, hands on of the usual 45. Taking into account additions, Raymond is now present operations and adherence to the the challenge in availability of retail in over 500 towns — again, a first for business framework. inventory in these towns, the store an apparel brand in the country. size has been optimised to 600-1200 Has the new model increased Mohit Dhanjal, Director – Retail sq.ft. vis-à-vis the average 2500 sq.ft. revenues? on what helped make it possible... Once the model was tested and These stores continue to add incre- launched, the retail team took the 200 stores in such short mental revenue and income to the challenge of opening 300 stores in time. What’s the formula? company since they have opened in two years against the past average The success formula has been 2-fold. completely new markets and towns. of 25 stores per year. The journey First, the new agile & asset-lite busi- Over 90% of the stores opened have

62 | STOrai | November - December 2018 Franchising

We have crafted a whole new business “model with our Mini TRS stores. This model paved the way to profitably address the opportunity in Tier IV and V towns and service the latent demand of the aspiring customers who love Raymond by bringing the brand into their town” - Mohit Dhanjal, Director - Retail, Raymond Limited

exceeded our expectations in reve- sis of performance across five levels passion towards Retail Business. Our nue generation. such as total value contribution, team works along with our franchise driving the growth agenda, custom- partners on a detailed profitability What criteria does a er satisfaction levels at the store, en- model with store P&Ls / business tar- franchisee have to meet to gagement through its Raymond re- gets which are monitored on a con- qualify for the Mini TRS? ward program (CRM) and initiatives tinuous basis by our area managers. More than transactional relation- taken in bringing alive the brand in ship the company strongly believes The catchment plans are then their catchment markets through in an ethic based relationship with worked out to drive footfalls through the LSM platform. its franchisees. It abides by its 5 cul- sustained calendar activations for tural pillars. The fourth pillar is personal the stores. The team trains the fran- accountability—each employee is chisee and store team on retailing The first pillar is transparency in empowered to take decisions which principles, emerging trends, product dealing and interacting with people are in the interest of customers and training and visual merchandising internally and externally. The brand the organisation. Commitments keeping it relevant for franchisee and has a transparent policy framework made are honoured and if there is customers. with standard and unbiased terms a delay in action, the team will keep of trade for each channel type. What turnover is the retail the stakeholders informed of such division aiming for in the The second pillar is delays. years to come? collaboration, which is epitomised And, the fifth pillar isbias for In retail, we have a mantra for growth through ‘I am with you in this’. The action. If something is not right, that we internally refer to as 5Gs of franchise model is built in such a quick action is taken on it or it is re- growth. These are Competitive manner that the brand par-takes in ported to the right team so that they Growth (faster than the competi- the setup investment. This ensures may set it right. Opportunities are tion); Profitable Growth (+ve EBIT); that both the franchisee and the grasped and gaps are addressed. Sustainable Growth (continuous franchiser have common interests year-on-year); Inclusive Growth in making the business relationship How do you help franchise (Company and Franchise partners) & work. partners achieve break-even Experiential Growth (enhancing cus- The third pillar is meritocracy, for their investments? tomer experience). This 5G growth which involves rewarding and rec- The essence of the partnership is leads to exponential growth for Ray- ognising the franchisees on the ba- an entrepreneurial mind set and mond.

November - December 2018 | STOrai | 63 Member Profile

A journey of enrichment By setting new benchmarks in quality, services and employee engagement, salon chain Enrich has added value to not just its customers and employees but also the salon industry By Shiv Joshi

ometimes, helping a friend in need can change your life, literally. That’s what happened in the case Sof Vikram Bhatt and Rohit Dedhia. Their gesture of helping their friend Parul Mehta become financially independent after she lost her father, took them down a path they had never imagined. Since Parul had some knowledge about the beauty business, together, they opened Enrich, a 300 sq. ft. salon in Mumbai’s suburb with an was of utmost importance, which we initial investment of Rs6 lakh. It was Pioneers from the start a small cosy place with five chairs Enrich was the first unisex salon in brought into the salon business— for hair services, two beauty cabins, the suburbs when the trend was to unheard of for a salon at that time,” reception and waiting areas. The have ladies only beauty parlours. he added. staff consisted of two hair stylists “Being from a different domain, Another first was to have a and two beauty therapists. there were no pre-conceived Salon Management Team with “At the time, neither Rohit nor I was notions, so everything was trained managers overseeing the remotely connected to the beauty questioned and nothing was taken operations. Enrich also was the space. We took the entrepreneurial for granted. For instance, when first to use disposables to achieve a plunge just to help our friend,” said we started off, the industry was high-level of hygiene. Vikram Bhatt, Co-Founder and quite unorganised and run with Not just this, the salon chain Director of Enrich Salons. few processes or systems. We were pioneered loyalty programmes in the Yet, they managed to break new from industries where Standard salon space and introduced mono- ground from the get go by doing things Operating Procedures (SOPs) and dose packages in collaboration with that were unheard of at the time. a systematised manner of working its product vendors for its services.

64 | STOrai | November - December 2018 Member Profile

All of these factors acted as in those days. Our gamble paid off strong differentiators catapulting though,” he shared. Today, Vile Parle Enrich ahead of the competition in is one of Enrich’s highest revenue- this saturated category. generating salons. Encouraged by its success, sampling is an initiative Snipping the Challenges the salon chain follows for most of Erich, like every business that has its new salon launches even today. been built from scratch, faced Apart from that, one of the a number of challenges along biggest challenges they faced was the way. “There were of course a talent retention. After all, some number of challenges, but these customers form a relationship with very challenges gave us the tools to the technician who makes them differentiate ourselves and grow in  Vikram Bhatt, Co-Founder, look good and feel good. But it’s a the right manner,” said Vikram. Enrich Salons challenge that the entire industry One such hurdle they faced was faces. Towards this, Enrich invested the business was growing at a good when they first opened a salon in heavily in training, counselling, pace with a new salon being steadily Vile Parle back in 2001. The issue career path clarity, best practices added every year to the portfolio they were facing was of low footfall. in people connect and inclusive between 1997 and 2012. In 2010, “We were faced with the decision growth. This has helped it achieve Enrich ventured out of Mumbai to of having to close the salon, which the lowest attrition rate amongst the open in Pune and Bengaluru. we of course did not want to do. We players in the industry. In 2016, Enrich acquired Belita to decided to take a bold step – to give The turning point venture into home salon services. our services for free, as a sampling Having done so many things right, Through it, Enrich takes salon exercise. This was unheard of back services to a customer’s home, office or any other venue of choice. “It seemed natural to combine its home-services expertise with the customer experience delivery of Enrich Salons. The current contribution of Belita is about 2% overall, and growing at more than 50% Year-on-Year,” informed Vikram.

The real growth for Enrich started after funding. “Our first round of funding (2011) helped boost our growth—in the next two years, we opened 50 salons. In addition, we worked a lot on efficiency and cost management—two focus points which have helped us be ready for our next spurt of growth. Thanks to

November - December 2018 | STOrai | 65 Member Profile

Investing in its people Enrich employs about 1700 people across levels, including tech- nicians, salon management, corporate and support team. “Planet Enrich is our expression of the strength of the collective. It has over half a dozen initiatives for our team members,” said Bhupesh Dinger, Director – Operations. Here are a few of them:  EAP (Employee Assistance Program): Professional coun- selling service delivered in complete confidence on phone/ chat/email and in person by a third party.  Bhupesh Dinger, Director -  Emergency Medical Assistance: Need-based fund two Operations, Enrich Salons thirds of which comes from employee contributions and one- third from the company. In addition to retaining the  Stay Interviews: Focusing also on the reasons why people ownership of the experience, there stay in the company (while most do only Exit Interviews) are several things that Enrich does  iCare: Tie up with a third party provider, which facilitates to ensure a high quality customer the purchase of consumer goods and white goods on interest experience. One of them is to free EMIs, specifically for Enrich employees. have a centralised POS (Point of  Townhalls: Various business parameters are presented, Sale) system/MIS (Management right from an organisation level to individual salon level. Also, Information System), which enables every activity and future initiatives are communicated to all. gathering information about each of its customers and their history of  Scorecard: Every technician gets a scorecard in which s/he visits with Enrich. gets his or her rating on 11 business parameters. This gives the technician the chance to understand their strengths and “Through this, we can customise points of improvement. offers, build a client profile, make  Transparent growth path: Clear communication of Key notes, track feedback, check Result Areas (KRAs) to be achieved by every employee to be past purchases, perform service eligible for growth. consultations, and much more, across all salons,” he informed. Enrich’s best practices in People Connect has earned it multiple When a customer visits a salon, the HR awards over the years. experience is customised to each guest based on his or her profile and preferences mentioned in the CRM. our second round of funding, our all its 60+ outlets are company Every customer is given the choice aim is now to reach 200 salons by owned. “We believe this give us the of selecting a particular technician 2022,” informed Vikram. best control over systems, processes who they might be comfortable and people, which translates into a with, or selecting the gender of the Highlight on experience better and more consistent customer technician they want to do their Despite the increase in pace of experience across geographies,” service. expansion, Enrich chose not to go explained Bhupesh Dinger, Director the franchise route and even today – Operations, Enrich. In addition, regular quality and

66 | STOrai | November - December 2018 Member Profile

customer experience audits are product development, keeping in business. We work in the customers’ conducted across all salons, every mind the requirements of hygiene, personal space 100% of the time, month. Each of the salons is marked effectiveness and cost. and are in actual physical contact on a set of criteria, and an action with them. Hence, it is critical that It also tracks and responds to plan is developed in each of the we maintain that level of trust at all all the feedback received across areas of improvement. The salon times with the client,” said Bhupesh. channels (via social media, chain works closely with product customer care, post-billing) and That is why all technicians partners to ensure authenticity of incorporate those learnings. undergo 240 hours of training every products, giving regular feedback year, including technical training, for product improvement and new “Our business is a high contact up-skilling, personal growth and soft skills, which educate them on the The Technology Angle behavioural aspects of their work.

Despite having limited scope for technology in the business, En- Future focus rich has deployed it in many ways to enhance efficiency: With strong foundation in terms 1. The POS/MIS makes it easy to follow processes, enabling a of systems and processes and a much more consistent customer experience. steadfast focus on customers, Enrich continues to grow from strength 2. Tableau for analytics and business intelligence. to strength. “Our focus has always 3. App to make bookings, check repertoire, accessing customer been on sustainable and profitable profiles, and more. growth. Rather than explosive and cash-incinerating growth, our 4. eHRMS (Electronic human resource management systems) model has been to get established for employee attendance, documentation, access to tax forms and then identify the right places to and payslips, annual appraisals and biometric logins. expand into. Our plan is to continue 5. Separate apps for technicians and managers through which in the same manner, and focus on they can check their appointments and target sales. our current geographies for the foreseeable future,” said Vikram, the accidental entrepreneur.

November - December 2018 | STOrai | 67 WHY JOIN RAI Advocacy Support RAI makes representations to Central and State Governments and local authorities on critical issues. RAI liaises with the Government, in identified areas for the development of the retail community. As a member, you would have access to the ‘Member's Only’ section of the website – and be able to participate in collaborative efforts within the community to shape policy.

Guidelines and Standards RAI disseminates on common guidelines and policies for the sector which would be accessible to Members. These include the National Occupation Standards – developed by RASCI (Retailers Association's Skill Council of India). Other guidelines help in the creation of infrastructure and facilities to improve the retail environment in India.

Networking Meets: As a member you would be invited to participate in Networking Meets held at Mumbai, Delhi, Chennai, Bengaluru, Kolkata, Coimbatore, and other cities.

You can also: Ø Be part of and steer industry committees on aspects such as Supply Chain, Finance, Advocacy, HR, and Technology. Ø Attend events, seminars and training programs organised by RAI at member rates. Get access to RAI infrastructure facilities in Mumbai for training activities. Ø Receive complimentary copies of STOrai and RAI's daily newsletter – Replenish – which aggregates news, insights and jobs relevant to Indian retail. Ø Purchase RAI publications at member rates. Ø Receive survey findings, trade information and legislation updates.

Most importantly, you commit to helping create a robust retail industry in India. Join RAI as

Core Member: Core Membership of RAI is applicable to retailers across sectors. To join as a Core member, a retailer must fulfil the following conditions: a) Issue a tax invoice for every transaction. b) Be registered under Goods and Services Tax (GST). c) Not employ child labour. d) Earn over 50% of the organization's business or INR 100 Crore whichever is less from retail activities. Turnover Annual Fee w ith 18% GST Upto Rs 5 crore Rs 2,500/- Rs 2,950/- Rs 5 - 10 crore Rs 5,000/- Rs 5,900/- Rs 10 - 20 core Rs 10,000/- Rs 11,800/- Rs 20 - 50 crore Rs 15,000/- Rs 17,700/- Rs 50 - 300 crore Rs 25,000/- Rs 29,500/- Rs 300 - 500 crore Rs 35,000/- Rs 41,300/- Rs 500 - 1,000 crore Rs 1,00,000/- Rs 1,18,000/- Rs 1,000 - 5,000 crore Rs 2,00,000/- Rs 2,36,000/- Above Rs 5,000 crore Rs 5,00,000/- Rs 5,90,000/-

Associate Member: Associate Members are companies that support retail industry. These include retail consultancies, retail hardware and software suppliers (design companies, retail fixture and furniture companies, POS hardware, software, security systems). T o be eligible a service provider should: a) Be registered as a company or firm in India. b) Be a supplier, vendor, developer or service provider to retail. c) Be registered under Goods and Services Tax (GST). Membership fee structure based on the turnover of the company is as follows : Turnover One time Joining fee Annual Fee with 18% GST Less than Rs 20 crore Rs 1 lakh Rs 10,000/- Rs 1,29,800/- More than Rs 20 crore Rs 2 lakh Rs 25,000/- Rs 2,65,500/-

Real Estate Member: Real estate members are companies that develop/manage retail destinations such as malls and shopping centres. To be eligible a company should: a) Be registered as a company or firm in India. b) Be a supplier, vendor, developer or service provider to retail.

Turnover One time Joining fee Annual Fee with 18% GST Less than Rs 20 crore Rs 1 lakh Rs 25,000/- Rs 1,47,500/- More than Rs 20 crore Rs 2 lakh Rs 1,00,000/- Rs 3,54,000/- Join RAI as

Affiliate Member: Affiliate associations are associations/industry bodies that partner with RAI towards promoting exchange of information and pursuing common interests. For instance: NASSCOM, The Federation of Chambers of Commerce & Industry (FICCI), Confederation of Indian Industry (CII), Clothing Manufacturers Association of India (CMAI), Gems & Jewellery Association of India (GJAI), National Restaurant Association of India (NRAI) and All India Footwear Manufacturers & Retailers Association (AIFMRA) are affiliate members of RAI.

One-time membership fee* Rs 25,000 + Annual Fee* Rs 10,000 (*18% GST) Total Amount Rs 41,300/-

Academic Member: Academic members are organisations that help fulfil the education, academic research and training needs of the industry.

To be eligible an institution should: a) Be registered as an educational institution or an educational trust in India. b) Offer one or more courses in Management/Retail/Design/Visual Merchandising, as part of the curriculum. O ne-time membership fee* Rs 50,000 + Annual Fee* Rs 5,000 (*18% GST) Total amount is Rs 64,900/-

To know more about RAI membership contact

Deepa Nair, Manager – Membership, +91 9819426961, [email protected] Venkataraman.D, Manager - Southern Region, +91 9884875875, [email protected] (Chennai Chapter) Nivethitha Ravi, Executive - Business Development, +91 9944481533, [email protected] (Coimbatore Chapter) Vishnu Gopinathan, Manager - Southern Region, +91 9995823537, [email protected] (Kerala Chapter) Alok Raman, Manager - Membership, +91 9811281889, [email protected] (Delhi Chapter) Rekha Dey, Manager - Eastern Region, +91 9007842345, [email protected] (Kolkata Chapter)

Email: [email protected] | Call: 022 - 28269527 - 29 | Website: www.rai.netin NEW MEMBERS CORE MEMBERS Ÿ A. A. Helmets, Mumbai (Nykaa), Mumbai Ÿ Sebastian Lyngdoh, Shillong Ÿ Agripro Industries, Tirupur Ÿ G D Hardwares, Shillong Ÿ Shravnik Corporation, Chennai Ÿ Akya Retail Pvt. Ltd., Ÿ Grok Overseas Enterprise, Delhi Ÿ Sky Vision, Guwahati Ÿ Amith Hardware, Chennai Ÿ Hi Tech Ceramics & Co, Chennai Ÿ Sohum Shoppe Ltd., Guwahati Ÿ Amsam Group, Hyderabad Ÿ In Touch, Guwahati Ÿ Sparkle, Coimbatore Ÿ Angi Clothing, Chennai Ÿ Just Marketing, Guwahati Ÿ Sree Varadharaj Silks, Trichy Ÿ Aswins Home Special, Chennai Ÿ Laxmivas Enterprises, Mumbai Ÿ Sri Krishna Pharmacy, Chennai Ÿ B P Marketing, Guwahati Ÿ M2H Solutions, Coimbatore Ÿ Sri Mahalakshmi Dairy (Aroma Ÿ Bamena Enterprises, Shillong Ÿ Manimekalai Prasuram, Chennai Bakery), Coimbatore Ÿ Chakra Chains Jewellery Pvt. Ltd., Ÿ Metro Soaps, Chennai Ÿ Sri Vasavi Thangamaaligai, Chennai Ÿ Minu Sarswat, Shillong Dindigul Ÿ CR Projects, Shillong Ÿ Mobile Zone, Chennai Ÿ SSR Creations, Chennai Ÿ Crown Enterprises, Guwahati Ÿ Moksha Wellness Pvt. Ltd., Delhi Ÿ Sundar Electricals & Electronics, Ÿ Dab Fab Pvt. Ltd. Jaipur Ÿ New India Sales Corporation, Chennai Ÿ Deshwal Enterprises, Delhi Chennai Ÿ Suriya Resources, Salem Ÿ Dhanwantary Medicare & Ÿ Orbit Systems, Chennai Ÿ T.K. Venkateshwarran, Chennai Research Centre Pvt. Ltd., Kolkata Ÿ Prime Biz, Mumbai Ÿ Tapan Sarkar, Shillong Ÿ Fame Super Store, Surat Ÿ Royal Apparels, Chennai Ÿ Vasantham Enterprises, Chennai Ÿ Farid Mukhim, Shillong Ÿ Saini Hardware, Shillong Ÿ Vimala Paper Company, Chennai Ÿ Fire n Grill, Chandigarh Ÿ Salasar Sales, Guwahati Ÿ Vummidi Bangaru Prakruthi, Ÿ FnB Needs Foods Pvt. Ltd., Ÿ Sam Traders, Mumbai Chennai Chennai Ÿ Saravan Mart, Coimbatore Ÿ Zimson Times Pvt. Ltd., Chennai Ÿ FSN Brands Marketing Pvt. Ltd.

ASSOCIATE MEMBER Ÿ Loyalty Juggernaut India Pvt. Ltd., Hyderabad