RETAIL CHRONICLES Fortnightly Newsletter
Shopping Malls 02 defining new culture of Retail experience
| Volume 3 - Issue 10 |
1-15 january 2019
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RIL – The Retail
04 Goliath?
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Influence of 05 Government regulations on Retail sector Maintaining brand 06 loyalty in the new era Pg 08 ALL IN by Retail LAB
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10 Retail News Pg 11
Retail Lab SIMSR K J SIMSR, Mumbai Contact: +91 8896732500, +91 8449248227 retaillab@somaiya.edu
A A new year A fresh start Same dreams New challenges Feel the fear And do it anyway 365 New days 365 New chances
-RETAIL LAB
Shopping Malls defining new culture of Retail experience -Bharat gupta Massive malls and shopping complexes have become a distinct marker of our cosmopolitan cities, and the urban experience is hardly complete without them. With the boundaries between different countries and economies melting away at a rapid speed, global brands are now available at our doorstep. But modern malls are not just visiting the stores and purchasing goods. In India, malls are increasingly focusing to create a more experiential environment for customers. Prior to the mall culture, people used to visit the stores in order to buy things they need but the modern mall is much more than a place to purchase goods and services. It is, instead, a destination in itself- a gathering place, an arena of conversations, discoveries and new and exciting experiences. Newer malls are being built with the latest architectural innovations, and existing ones are simultaneously doing improvements in technology, retail mix and overhauls. From sprawling outlets of European clothing brands to the best of American burgers and shakes, the modern mall is equipped with everything that was aspirational many years ago for Indian consumers. The big brand names that were only seen in magazines have now become part of everyday life, thanks to the state-ofthe-art malls in India.
From a need driven activity to a leisure time entertainment of a consumer, malls have transformed shopping experience in India. There is a paradigm shift in the mall scenario, from just 3 malls in the year 2000; the country witnessed 308 malls in the year 2017. Real estate corporations like DLF and Unitech are coming forth with the plans to meet the ever increasing demand of shopping malls. The largest malls in Indian metropolitan cities enjoy 25,000 footfalls per day which hikes to an average of 40,000 on weekends. Even though the malls are spreading rapidly from metros and mini metros to tier III cities, the spread of malls is highly concentrated in India. Northern part of the country is having the peak attractiveness with 39 percent while South, East, and West Zone respectively holds 18 percent, 10 percent, 33 percent of total malls. Advanced amenities that were once novel, have now become things that customers are accustomed to looking forward to in the new avatar of malls.
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The modern mall has all the facilities, from interactive kiosks and digitally-advanced infrastructure, beautifully-appointed spas, fine dining restaurants, and even the gaming zones where children can spend their all day. The increased spending power of the middle class is allowing for more time spent in malls and mall owners are going all out to cater to their evolved lifestyle preferences. Earlier malls had a few attractive stores which shared space with other staid outlets with below-par food or outdated collections whereas the modern mall experience is all about perfection, trendiness and experiences that truly make one feel refreshed, pampered and like they have had their indulgence for the day.
Another way, in which the modern mall is a gamechanger, is its successful convergence of the physical world of the marketplace with the unbridled expanse of the Internet. Contrary to popular fears, online marketing is not the end of in-person shopping. Instead, both are highly complementary, as online shopping sites drive shoppers to their outlets, not away from them. Modern malls are able to create multi-channel marketing, where the vitality of civic life is captured and augmented by ecommerce. The future of malls in India lies in socializing and participating in community activities at the shopping centers where consumers access a remarkable and global range of products. With modern amenities like digitally savvy brands, zone divisions, convenience and ease of shopping and an array of indoor entertainment. The modern shopper is made to feel at home in a premium mall destination, which is more than just the traditional sum of its stores.
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RIL – The Retail Goliath? Name- Nimish Saxena With the advent of “Jio”, people seem to have forgotten Reliance’s presence in worlds other than the digital one. One might even think, that Mukesh Ambani has put his plans for its retail division on the back burner. But the contrary is true. In the past 11 months RIL has been on a Rs.11,000 crore shopping spree growing its retail division inorganically. Before we dive into why Reliance could become a Goliath from a giant in the universe of retail, let’s look into where it stands now. Reliance retail has yearly revenue of around Rs.690 Billion which it earns through selling consumer goods, consumer durables, travel services, energy, entertainment and leisure, health and well-being products, as well as educational products and services. Up till April 2018 it had a total of 3,837 stores all over India with an area of over 17.7 million square feet across 750 cities. Its subsidiaries include the likes of Reliance Fresh, Reliance Digital, Reliance Smart, Reliance LYF, Reliance Jewels, Reliance Trends, Market wholesale and AJIO (Reliance’s first shot at e-commerce). Okay! So, Reliance is already in every nook and corner of the retail sector, but what’s new? What’s about to change is that Mukesh Ambani plans to utilize Jio’s 5,100 touch points in over 5,000 towns as the last mile connection point for its e-commerce venture to reach consumers without internet access or who have never shopped online.
He wishes to use Jio’s existing distribution network which reaches these stores to deliver mobile phones, sim cads and accessories to assist its sale of sugar, biscuits, apparel and soaps. These stores will be supplemented by kiosks where consumer can place their orders which will be then fulfilled by these Jio touch points. With e-commerce business set to rise at a CAGR of 32% from 2017 to 2021 and rural India holding Rs.750 crore in potential, RIL aims to spread the reach of its e-commerce division in every city with a population of more than 10,000. It plans to so this by opening 500 jio stores every quarter till it reaches a total of 50,000 touch points. Reliance continues to play the game of forward backward integration that it started since its “polyester” days. Jio has already skyrocketed the reach and use of high-speed internet across India through its telecom initiative, enabling more people than ever to shop online. And Reliance retail looks all set to make the best out of this new opportunity
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Influence of Government regulations on Retail sector By- Shubham Thakur There have been requests from all corners in regards to encircling of guidelines to defend interests of the supposed little brokers. At the same time . financial experts have the accord that industrialization is basic for the development of the economy and remote speculation needs to assume an unavoidable job in it. Retail industry includes many different sub sectors With Lok Sabha races to come in 2019, the including groceries to clothing to furniture and Union government also appears somewhat beyond. Each of the faces its unique regulatory confounded in regards to choice to support challenges although all retailers are affected by who can give it a political edge. So in this nationwide labor impositions such as minimum wage investigation let us analyze the perspectives and overtime pay laws. As with all industries for and against advancement as is held by government regulation adds compliance cost and Indian Bureaucrats. possible legal liabilities to the retail sector. "India's administration is by all accounts on a slow yet unequivocal way toward permitting outside retailers into the country..." proposes the A.T. Kearney's Retail Development Index 2006. It is a typical information that the Union government needs to confront various obstacles both from it's adversaries and additionally it's partners previously it could report the last decision.
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Maintaining brand loyalty in the new era Building and maintaining loyalty has remained the topic of the main concern for marketers since last some of the years. As brands gain exclusive, positive, and prominent meaning in the minds of a large number of consumers, they become irresistible and irreplaceable and win the loyalty of the consumers. Whereas brand loyalty brings business, generates revenue and at least try to maintain the survival of a firm in the market. Marketers use many ways to improve and maintain brand loyalty. Nowadays they have come up with innovative ways such as digital media marketing, social media marketing and one to one marketing activities.
Social media marketing can be said as an important channel through which more and more companies are marketing their products and services. Obviously, it increases the brand awareness and provides the most cost-effective solutions to reach to the people in innovative ways. Social media campaigns are something which is most sought after any activity in the country. Hence it can be said that the social media campaigns provide significant effect in the positioning of the product into the market, rather, nowadays it defines the positive image of the brand in the minds of the customers.
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The impact of social media campaigns on brand loyalty in both positive and negative way has to be studied by marketers so as decide their own way further. Studies on this subject have shown that the most significant drivers of the brand loyalty are the campaigns on social media followed by the relevancy of the content and popularity of the content among the public. The companies which want to make the use of social media campaigns for the marketing purpose first take into the account the benefits, values, and advantages they offer to the consumers in the campaign.affected positively by these campaigns which suggest that nowadays consumers demands the creativity and variety in which the brand connects to them. Similarly, companies also create interesting applications and contents on social media keeping in mind the benefits of it.
Another important point for maintaining brand loyalty is the relevance of the content published. Publishers have to be continuously updated about what their customers are interested in, their activities, recent trends in the market and their changing preferences to live the life. These things also connect to the product development of the companies. As relevancy of content to the customers becoming important companies have to update their content on shorter intervals so that they do not lose out on their loyal customers.The word of mouth whose effect is also not negligible, especially in online environments. Nowadays, companies have started actually paying social media users to spread word of mouth among the other new users about their presence and services. They can also spot opinion leaders in their target markets and hire them on purpose to talk about their campaigns and pull people to engage with their brands 07 on social media.
ALL IN: The first flagship intra-college event of Retail Lab for the year 2018-19 concluded successfully on 19th December in KJ SIMSR. The event saw participation in huge numbers from across different programs. The event was divided into two rounds, online quiz and the final round. Fifteen teams who made it to the final round were given a timed quiz and everyone witnessed the top five team for the ultimate bidding quiz. The quiz was one of a kind and the race for the first rank was really thrilling. Our best wishes to Sidharth and Mayank who lifted the first prize. We would also like to thank our title sponsor BOMBAY BHUKKADS & styling partner CHRRISH for being with us through the entire journey of ALL IN.
ALL IN by
RETAIL
LAB 08
A snap with all the finalists
Winners
The team - Retail Lab
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Retail news at glance Mukesh Ambani may use his 5,100 Jio Point stores to kick off a retail revolution Sports Direct's Mike Ashley considers bid to buy Hamleys Flipkart rejigs leadership team, appoints Sriram Venkataraman as COO November retail inflation falls to 2.3 pc. Amazon in advance stage to buy stake in Future Retail
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Our Team Content Head
Raveena Gupta
Content Team Sagar Anam Piyush Sinha Shubham Thakur Bharat Gupta
Retail Chronicles is a bi-monthly newsletter of Retail Lab, the Retail committee of KJ Somaiya Institute of Management Studies & Research, Mumbai. Images used in Retail Chronicles are subject to copyright.
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