Retail Chronicles - March 2022 by Retail Lab SIMSR

Retail

Chronicles

Monthly Newsletter | Volume 6 | Issue 14 | March 2022

CONTENTS 03

FOOD RETAILS IN SUMMER

WRITERS

Summer turns most of India into a working oven for the majority of the day. Summer delivers a bounty of natural riches, including easy access to seasonal fruits and vegetables

Aayush Ghildiyal | Harsh Gupta | Akshita Kulshreshtha | Raghav Khandelwal |

RETAIL IN SUMMERS:ELECTRONICS Sheds light on the current scenario of retailing in Electronics in the context of the summer season and various trends prevailing in the market and the strategies retailers use to tap into the market.

EDITOR Riya Shah

INDIAN APPAREL INDUSTRY IN SUMMERS India being a tropical country, is very hot in summers. The climate of any place can very well influence the fashion trends of that place

JUNIOR DESIGN TEAM

HOTEL INDUSTRY IN SUMMERS The hotel industry has faced numerous challenges in the previous years. In summers, Hotel Industries focuses more on casinos, spas, extended stay, bed & breakfast, hygiene, etc.

PODCASTS

TRIVIA QUIZ

FOOD RETAILS IN SUMMERS

Aayush Ghildiyal - MBA RM Retail Chronicles | Page 03

March, 2022

Summer turns most of India into a working oven for the majority of the day. To combat the oppressive heat, people are continuously drinking, washing their faces, and eating cold treats and snacks. On the other hand, summer delivers a bounty of natural riches, including easy access to seasonal fruits and vegetables such as watermelons, mangoes, and berries. Supermarket produce sections are bursting to the seams with all kinds of fresh food. And, if you choose organic options, you could be lucky enough to locate products that are free of additives or chemicals, mainly because most produce is seasonal. Seasons are an influential factor in consumer purchasing behavior and play a significant role in many aspects of the food retail sector decision-making. Some of the acute effects of seasons on retail sales:

Taking into account the high temperatures across the county in the summer conditions, the consumers prefer something cool and hydrating. Another parameter to be considered is that consumers now opt for a healthier choice, like going for a cold glass of juice instead of an ice lolly. During this season, the most demanded food and drink choices are iced coffee or tea, melons, mangoes, salads, and fresh juices. Eating seasonal food, which is sometimes perceived as local food, is advocated as a sustainable diet component. Still, the social, environmental, and economic benefits and constraints must be weighed against delivering year-round fresh produce. Seasonal food marketing is getting increasingly popular, yet food systems in the developed world are increasingly eliminating seasonality.

• Seasons can create weather conditions that are uncomfortable and may dissuade consumers from shopping. • Seasons induce psychological and physical effects that can change consumer habits. • The popularity and the desirability of specific product categories may be influenced by seasonal conditions. Retail Chronicles | Page 04

March, 2022

In the Indian food retail landscape, where most of the sector is unorganized, and the problem of cold storage persists, seasonal foods play a huge role. Maintianing the right amount of inventory is like walking the tightrope and has always been a big challenge for the retail food outlets. Accurate forecasting of the demand and adequate research on the seasonal food trends is necessary to maintain the proper inventory. A certain level of investment and planning is required when the summer season approaches, as the requirement of items like ice-creams and cold drinks shoots up, and as a result, retail stores need to increase the cold storage spaces available in their store. According to IGD's (Institute of Grocery Distribution) research, shoppers navigating the changes in routine that the summer season offers are flexible and willing to try new things. Over a third, (34%) of parents with children say they attempt to be more prepared about their meals and food shopping during the summer months but confess it's tough because their plans vary due to the weather

Retail Chronicles | Page 05

Indeed, over three out of ten (31%) buyers claim they spend more on food and goods for picnics during the summer season than at any other time of year, demonstrating the impact of the excellent climate on the food and grocery industry. It's critical that stores be adaptable and respond quickly to the adjustments that customers might make to their meal plans. The availability and visibility of major categories are essential in order to ensure that customers on a fast run to the store or out for an evening dinner can quickly discover what they need, preventing them from straying elsewhere. Consumer purchasing behavior is influenced by seasonal changes, both in terms of overall item sales and individual product categories and at different spatial scales. These variations in response to current weather conditions have ramifications across the firm, including supply chains, inventory management, and marketing techniques. Retailers can better navigate these elements and maintain a more sustainable business if they better understand the relationships between seasons and sales

March, 2022

RETAIL IN SUMMERS: ELECTRONICS

Raghav Khandelwal - MBA RM Retail Chronicles | Page 06

March, 2022

Introduction: With summers around the corner, manufacturers of home appliances such as ACs, fans & coolers gear up to meet the huge demand of this season through different steps & tactics. Consumers are quite familiar with steps such as new product launches, high star efficiency ratings, and attractive offers. In this article, we will understand the current scenario of retailing in Electronics in the context of the summer season. We will look into various trends prevailing in the market and the strategies retailers use to tap into the market.

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Current Trends As COVID-19 pandemic entered into our lives, it changed how we purchase and consume goods and services. The epidemic spread in India, first in the summer season and this had a drastic impact on the sales of goods that are predominantly bought in the summer season like home appliances. The sales of these goods witnessed a surge in the festive season as people who were stuck at home are keen on buying larger TVs, home theatres, smartphones and other electronics to compensate for the loss of outdoor entertainment and travel. Computer sales increased by 87 percent from 2019 levels in 2021, while major appliances such as refrigerators, air conditioners, and washing machines increased by 10%, kitchen and small appliances increased by 13%, and overall mobile phone sales increased by 4%. Smartphone sales increased by 8%. March, 2022

Electronic goods and household appliance makers are scaling up production capacity in response to the rapid growth in demand from the Indian consumers with rising disposable income. The Indian customer has become very aware and conscious. Customers, for example, now want an air conditioner that not only cools effectively but also saves them money on their utility costs. LG India is relying on its air conditioners' five-star BEE (Bureau of Energy Efficiency) ratings. Brands are now being prompted to incorporate modern technology by the increasingly aware and demanding Indian consumer who is backed by purchasing power.

Flipkart has an upcoming sale called Big Saving Days from 25th-29th July with best deals on mobiles, electronics, TVs and other appliances. Offline retail chains like Croma and Vijay Sales also provide exciting discounts with the advantage of the touch and feel experience. Heavy discounts and addons like free and same day installations are offered to attract customers.

Current Strategies Due to early summer this season, companies like Panasonic and LG are anticipating higher demand for their products this summer. Panasonic air conditioner sales have increased by 25% in the last three to four months. The company has increased inventory and invested in displays and marketing campaigns across both retail and online platforms to boost its sales. Online retail giants like Amazon and Flipkart have dedicated summer sale. For example, Amazon Summer sale is from 4th-7th May with up to 50 percent off on Headphones, Camera and other electronic devices. Retail Chronicles | Page 08

Conclusion The Retail Industry in summers is gradually recovering after the COVID-19 pandemic. Brands strategically use promotional tactics to attract customers. Big companies like LG, Panasonic, Symphony, Philips, etc, have been using them and retailers can learn from them. Looking forward, we can say that these trends will continue in the future along with booming ecommerce trends. March, 2022

INDIAN APPAREL INDUSTRY IN SUMMERS

Akshita Kulshreshtha - MBA RM Retail Chronicles | Page 09

March, 2022

India is a tropical country, and hence the country remains warm. Summers in India can be really hot, depending on which part of the country you’re coming from. The climate of any place can very well influence the fashion trends of that place. Indians want to particularly stay at the top of their game when it comes to their fashion choices. And hence, the beginning of any season also marks the beginning of a new fashion trendsetting in the country. Hence, the hot summers also bring about some really hot trends in the fashion industry.

When talking about seasonal apparel, the fabric is the most important aspect to factor in. Since the season feels sticky and sweaty, selecting the right fabric for the apparel makers is very important. These are a few fabrics that the manufacturers and retailers give high priority to during the Indian summers: 1. Cotton Cotton is the top preferred fabric given its breathable nature. Indians for centuries have chosen cotton fabric to provide for their clothing needs. There are several innovations into the basic cotton fabric that the manufacturers bring about in order to keep providing Indian customers with newer styles. 2. Khadi This Gandhian fabric provides a great fashion choice in the summers for both men and women in India. The fabric came into eminence in the pre-independence era and since has been a top choice for Indians. Even the traditional clothes like Sarees and Kurtas can be comfortably worn if woven in Khadi for the Indians.

Retail Chronicles | Page 10

March, 2022

3. Linen Linen is a fabric that makes for flawless styles in high-class-looking apparel. Cool and summery shades in Linen make it a great choice for wearers in summers. The formal wear especially is made in Linen which allows Indians to dress fabulously for work even in this scorching heat. 4. Rayon Rayon is a fabric made out of cellulose, cotton, wood pulp, and other natural synthetics. It provides a great fabric for sportswear and summer dresses and is super cool wear for the hot summers. 5. Sheer Sheer is one of the most popular summer textiles right now. Sheer is an all-cotton fabric. This fabric, unlike other thick materials, does not stick to the skin throughout the summer. Its proximity to cotton is reason enough to make it a summer favorite. 6. Silk Silk is a fun summer fabric to wear. It possesses antimicrobial properties as well as a natural protein structure that allows for easy breathing. Because of its capacity to adjust the temperature, silk is sometimes referred to as a climate fabric. Qualities of Silk include absorbing moisture, allowing the human skin to breathe, making them suitable for all summer situations. 7. Denim/Chambray Denim pants for men and women of all age groups are likely to wear due to their comforts, durability, and also wearability. Heavier denim is used for jeans, trousers, jerkins, jackets, Bermuda’s, Capris-pants. Medium to lightweight denim fabrics predominantly used for Men and Women shirts, blouses, and even now as the fashionable wear of Teens Tops/Kurtis and corsetry. Retail Chronicles | Page 11

There are some brands that pack comfort in trendy styles just for their Indian customers to bear the scorching heat in style. A few brands that bring about exquisite choices for an average Indian wearer are: 1. AND This is a brand that is known for its chic, comfortable styles and flowing fabrics that provide exquisite style and comfort for Indian customers in the summers. 2. Global desi This is a brand that is particularly known for its bright-colored outfits and indo-western styles that suit the Indian wearers. 3. BIBA This is a brand that has a contemporary take on Indian outfits for women. It combines florals and bright colors that create a cheerful look for Indian women. 4. Good earth A brand with ideals involving sustainable fashion, the clothes provide a calming and soothing vibe that feels like a lazy summer afternoon for Indian women.

Other labels like Pankaj & Nidhi, Pranay Bahl, Sanya Gulati also provide comfortable, breathable fashion for Indian wearers in summers. And with these brands and fabrics, we look forward to having a trendy, fashionable, and cool summer in 2022. March, 2022

HOTEL INDUSTRY IN SUMMERS

Harsh Gupta - MBA IB Retail Chronicles | Page 12

March, 2022

The world has witnessed a significant change in many aspects like dietary habits, lifestyle, hygiene practices, business, preferences, and many more. Talking about industries, the hotel industry has faced numerous challenges in the previous years. The hotel industry is one of the subdivisions of the hospitality industry, which aims to provide visitors with lodging services. The hotels can be categorized based on size, cost, service, functions, etc. However, the consumers categorize the hotel based on the number of stars, where one star is the lowest rating and five stars are the highest rating. When it comes to function, some categories include business, casino, spa, extended stay, bed & breakfast, and more. The hotel industry is closely linked with the travel industry. The growth of the travel industry can indicate the growth of the hotel industry. Retail Chronicles | Page 13

Because of the pandemic, there has been a significant decline in tour travel, whether for a business, picnic, or else. The above graph indicates the monthly hotel revenue per available room worldwide. There is a sudden decline in February 2020 because of the obvious reasons. Now, in 2022 when the economy is reviving, the hotel industry is growing with the development of the tour and travel industry.

The growth of the hotel industry is relatively more in the summer season. However, during summer, the competition also increases. March, 2022

Thus the reach of these influencers can be used to market the hotel. The subscribers or the followers can trust the experience of the vloggers in the hotel and can give it a try without any hesitancy.

So in order to generate maximum revenue, there are some tactics used by the hotels. Let's discuss ways to market the hotel industries well in the coming summers to create the profit lost during the pandemic.

Marketing Of The Hygiene Practices Via Influencers: After the pandemic, consumers are more inclined towards hygienic practices. The hotel industry must market the hygienic practices followed by them. They can use their website, other websites like MakeMyTrip, etc. Apart from that, one of the best ways to market the hotel is using travel vloggers. They can be invited to the hotel, where those vloggers or influencers can share the rooms' reviews, hygienic practices followed in the kitchen and other areas, etc. Retail Chronicles | Page 14

Marketing of Natural Views: During the holiday trips, the visitor appreciates the natural views he can experience during the rush life in town. The hotels can market the natural scenes experience via social media or vloggers. Most visitors appreciate the wind breeze, ocean tides, sunsets, sunrise, etc., with a cup of tea in their hands, on the room's balcony. Just imagine the day, you woke up with the sweet sunlight on your face,listening to some romantic song with a cool breeze, the snow-covered or green mountains, and trees with chattering of birds, hot coffee on the balcony with the rain outside, and hold on …. now imagine a room with four walls with a small grilled window, with traffic noise out. What do you prefer? Almost everyone likes natural experiences. These breathtaking natural experiences can be marketed. Food Vloggers: Everyone likes to try new dishes, the local food, the signature dishes of the hotel, etc.

March, 2022

What is the point of visiting Kashmir if you haven't tried Nadru, Sarson ka Saag with Makki ki Roti and Cold Lassi in Punjab, Sorpotel in Goa, etc.? A hotel can market the experience of these dishes, the experience of dinner, breakfast, etc. They can market the hygiene practices followed by them in the kitchen. There is a famous saying, "If you get to know the cooking practices in the kitchen, then maybe you will never be able to enjoy food from that kitchen again." The hotels can create products like vlogs, social media posts, etc. Thus, they can get the customers' trust, which is perhaps the most precious thing in this industry.

Retail Chronicles | Page 15

Summer Special Experiential Packages: The majority of the visitors prefer the experiential packages. The hotels can introduce the experience like moonlight dinner, pool party, DJ night, unique local activities, etc. Clients also appreciate the reduction in efforts during the holiday. So a hotel can also offer rental vehicle services, one-stop local activities ticket booking services, essential wearables rental service, etc., to make the trip of the visitor effortless. The two assets for the hotel industry are Client Trust and Experience. The hotels must aggressively focus on these two things, and one of the practical tools to do this is vloggers to maximize their reach.

March, 2022

PODCAST

FOOD RETAILS IN SUMMER

RETAIL IN SUMMERS: ELECTRONICS

-AAYUSH GHILDIYAL

-RAGHAV KHANDELWAL

INDIAN APPAREL INDUSTRY IN SUMMERS

HOTEL INDUSTRY IN SUMMERS

-AKSHITA KULSHRESHTHA

-HARSH GUPTA

Retail Chronicles | Page 16

March, 2022

TRIVIA

QUIZ

Retail Chronicles | Page 17

March, 2022

Q1. The most important assets for the hotel industry are:

Q5. Which factor can dissuade customers from shopping in summers?

a) b) c) d)

a) Social Effects b) Price Effects c) Loyalty Effects d) Physical Effects

Client Trust Client Experience All of the above None of the above

Q2. All of these can attract more visitors to the hotels except:

Q6. What percentage of buyers spend more on foods for picnic during summers?

a) Marketing of experience b) Experiential Packages c) One-stop facilities d) High-speed internet

a) b) c) d)

Q3. Which of these companies is known for its sustainable fashion? a) b) c) d)

Vero Moda Only Good earth AND

Q4. Which of these fabrics is not suitable for summers? a) b) c) d)

Crotia Cotton Rayon Khadi

Retail Chronicles | Page 18

25% 5% 31% 70%

Q7. This company owns the largest market share in the air conditioner retail market: a) b) c) d)

Voltas Hitachi LG Samsung

Q8. The first coupon was introduced by which of these companies? a) b) c) d)

Coca-Cola Thumps Up Samsung LG

March, 2022

REFERENCES https://www.statista.com/statistics/206844/hotel-revparby-region-worldwide/ https://www.statista.com/topics/1102/hotels/#dossierKeyfi gures https://explore.openaire.eu/search/publication? articleId=doajarticles::924428c0c6b70cdaa4b9d9a77559d9e9 https://www.forbes.com/sites/forbescoachescouncil/2018/0 8/02/yes-franchising-has-its-freedoms/?sh=70f192a23382

/retaillabsimsr @Retail_Lab @Retail_Lab