Retailer Magazine

WHAT’S IN STORE FOR VICTORIA’S SECRET? RNI No. HARENG/2006/21707 – FBD/269/15-17

www.indianretailer.com | May 2022 | `300

MYNTRA’S NEW COMMERCE MANTRA

NEW FOOD : NEW COMMERCE

NANDITA SINHA

CEO of Myntra

BIG SCOOP

IS FUTURE (RETAIL) DOOMED?

CEO DEVENDRA CHAWL A

The Radical

GROCER

lBRINGING BACK JOY OF SHOPPING lKEEPING CUSTOMERS AT THE CENTER lTRANSFORMATIONAL INITIATIVES

E D I TO R - I N - C H I E F ’S N OT E

FOOD & GROCERY COMMERCE IS HEATING UP The war is on for customer acquisition and building loyalty

RITU MARYA editor@franchiseindia.com

U

nparalleled changes that are happening in the Food & Grocery industry are similar to 2005 when Modern Retail was gaining ground in India. The tectonic shifts in the F&G retail landscape on one hand are calling for Retail and E-commerce brands to strengthen their core and develop new capabilities in omnichannel, analytics, and personalization. Accordingly, the majority of Indian food retailers are increasing their technology spending or investing in technology upgrades in 2022 to keep up with the rapid pace of change in the industry as consumers increasingly shift their lives online or into the digital realm. Within e-commerce too, companies are trying to up the game with the advent of Quick Commerce and city-based fulfillment business models like Amazon Fresh. The future of Food and Grocery lies in integrating convenience and value into a single store in the omnichannel ecosystem.

However, there is a bigger monster in the room than the pandemic that could undo the new rulebook in the industry. India’s retail inflation surged to 6.95 percent in March 2022, the highest since October 2020. The spike in prices is being led by food items. Due to high input costs for manufacturing and rising prices of fuel on account of the Russia-Ukraine war, will impact the supply chain and delivery, there will surely be a revision in consumer wallets and purchasing power. Grocery retailers need differentiation tactics when it comes to value not just on price but helping shoppers reimagine how to stretch their food dollars.

Q-commerce is challenging all the norms of F&G retailers and e-commerce food and grocery retail. It is a sharp business model and targets a customer who buys on impulse. Based on delivery through densely populated dark stores, the sector has seen the entry of new firms as well existing players such as Zepto, Blinkit (erstwhile Grofers), Swiggy Instamart, and recently BBNow is ramping up quick deliveries. How sustainable is the Q-commerce model and will Kiranas up their game to beat the competition?

Gaming and entertainment brands, as well as some fashion labels, are paving the way for brands seeking to navigate the Metaverse. The Metaverse in Web 3.0 will determine how we use the internet to connect, communicate and transact, so it’s also important for brands to start applying it in a ‘test-and-learn’ mode and remain agile as they venture into this uncharted territory.

In this issue, we have discussed how brands are not waiting on the sidelines but going all out to build their play in the Metaverse.

May 2022 / Indianretailer.com / 3

Contents MAY 2022 Pg 22 Kiranas Giving Tough Competition to Quick Commerce Players In India, Kiranas have been the original quick-commerce solution for decades now which keep a larger number of SKUs, a wider product mix, and offer better prices to a shopper.

PG 14

COVER STORY SEAMLESS BY DESIGN

The first-ever hypermarket in India was launched by Spencer’s. The brand has come a long way and now offering seamless omnichannel experience to consumers.

Pg 28 Tackling the Challenge Of Reverse Logistics Food companies deal with supply chain challenges regarding managing bulk returns, handling expiry of products, and making sure that near expiry goods are not warded if being returned

Pg 82 Going D2C with Tea How Vahdam India is disrupting the supply chain, cut out all middlemen, source direct, and deliver direct.

4 / Indianretailer.com / May 2022

Pg 03

Pg 08

Re g u l a r

Fo o d a n d G r o c e r y

Editor’s Note

Data story

Letter from the Editor-in-chief

Letters to the Editor-in-Chief

Pg 46

New Commerce

FO O D & G RO C E RY

HOW CONSUMER DEMAND HAS BEEN CHANGING FOR THE FOOD & GROCERY SECTOR

1

FOCUS ON QUALITY AND VALUE

2

3

MOVING TO HEALTH AND ORGANIC FOODS

44%

consumers consider value to be a key factor in deciding where to buy groceries

70%

more consumers are determined to purchase groceries to sustain healthy and nutritious eating compared to previous year. Over half of these respondents intend to spend more on organic ingredients.

Two major forces are seen to be responsible for shaping demand in the grocery retail space. One is the sheer knowledge to which the average Indian consumer has access which has transformed the household’s shopping behavior. The other epicenter of growth momentum is polarization between urban and rural areas in India - while the semiurban areas and emerging cities are expected to drive the next wave of value growth due to the rapid rate of urbanization, rural demand is likely to continue driving volume growth. The four key themes dictating consumer behavior are: focus on quality and value, moving to health and organic foods, online shopping and the ascendance of omnichannel.

5

4

ONLINE SHOPPING

THE ASCENDANCE OF OMNICHANNEL

60%

The top six or seven metros are expected to make up

consumers intend to continue to use online as an alternative to in-store shopping, in-grocery shopping and take-outs.

MODERN FOOD & GROCERY RETAIL

44%

7 % penetration of modern food and grocery retail is expected to reach

7%

of the market and mid-tohigh affluent households could form the bulk of the customer base.

by 2025, compared to 4.5 % in 2019.

Grocery shopping focus on healthy eating and nutrition in 2021 compared to 2020

Expected spending per food product category in 2021 compared to 2020

% of respondents

Net intent2 Above +1

69%

Do More

About the Same

% of respondents

28%

+35

+21

+41

+21

15

20

12

17

35

45

50

42

52

38

60

Low Sugar/ calories

High protein

Low fat

Naturally healthy

Do Less

About the Same

Do More

8 / Indianretailer.com / May 2022

Pg 54 Myntra’s New Commerce Mantra

9 31

36

Organic/Bio

3% Do Less

38

+51

* Source: McKinsey and other various reports.

Pg 06 Folio Page

HOW CONSUMER DEMAND HAS BEEN CHANGING FOR THE FOOD & GROCERY SECTOR

May 2022 / Indianretailer.com / 9

Pg 66

Pg 72

Bizops

Foodservice Pg 76 Taking A Bigger Bite

Revolution in the world of fashion by democratizing fashion

From launch to IPO, Burger King has reached far ahead of its peers in 8 years. What makes India such a delectable market and what has been the growth trajectory for Burger King?

Big Plans Iconic American brand Victoria’s Secret launched the D2C operations in India with a website

Pg 58 Honasa Consumer Attains 99.99%+ Order Fulfillment Rate

Pg 70 Building For Bharat Zivame is built on the understanding of Indian women in terms of their body profile and their requirements.

Pg 78 Malls Are Back In Action Riding on the wave of higher consumption and maturing dynamics on the supply side, the industry is expected to grow massively in next three years

May 2022 / Indianretailer.com / 5

CONSUMER SURVEY

Postal registration No FBD/269/15-17

NEW FOOD : NEW COMMERCE

Average spend per online shopper in India (includes B2C e-tail, online travel and classifieds)

500

EDITORIAL TEAM Editor in Chief: Ritu Marya Deputy Editor: Charu Lamba Deputy Features Editor: Nusra Features Writer: Navneel Alvarez Online Editorial: Rishabh Sharma Sr. Correspondent: Vaishnavi Gupta Sr. Social Media Executive: V Shiva Kumar CONTRIBUTORS: Manisha Bhatia Sakshi Singh DESIGN STUDIO Sr. Art Director: Manish Raghav PUBLISHER & PRESIDENT Sachin Marya

MARKETING & ALLIANCES Preetima Bhardwaj, CEO # +91 8588898248 bpreetima@franchiseindia.net 400

PORTFOLIO DIRECTOR Lokesh Arora Portfolio Director # +91 9999033612 lokesh@indianretailer.com

300

Ekta Roy Deputy General Manager-Sales # +91 9811635408 ekta@indianretailer.com Pawan S Kulkarni Assistant Vice President - Sales # +91 9343635408 pawan@indianretailer.com

FOUNDER & CHAIRMAN Gaurav Marya

CORPORATE OFFICE

405 B, The Pinnacle, Hotel Vivanta by Taj, Shooting Range Road, Faridabad - 121 001

CAGR 18% 200

100 2013

2015

2018

2020

*Source: Deloitte

Comments on IndianRetailer.com

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How Parcos is Integrating Tech to Enhance Consumer Experience Tech has disrupted luxury sector like all other businesses. It has redefined how we engage with our clients and has opened a channel for continuous interaction and end to end marketing, feedback.

Vishakha Patil, Marketing Manger- Brands at Baccarose Perfumes & Beauty Product Pvt Ltd.

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Editor Ms. Ritu Marya CAUTION. ADVICE. RESEARCH.: Articles and advertisements in Retailer are purely for information purposes and represent neither endorsement nor recommendation of such companies by the Publisher, Editor and their agents.

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6 / Indianretailer.com / May 2022

Rivaah by Tanishq Unveils its ‘Romance of Polki’ Collection in Metaverse We are happy indeed to be India’s first Jewelry brand in this space. The team that worked on making this happen are elated with the response and the love received.

Shyamala Ramanan, Business Head - Mia by Tanishq, Titan Company Limited

How William Penn Continues To Be A Major Brand In The Category Luxury retail will do very well from here...the entire thought process towards life has changed due to covid....and when you have a very capable team out there, nothing can stop from achieving greater heights and doing wonders.

Manoj Bansal, CFO, Gainwell Engineering& Strategy, yellow.ai

FO O D & G RO C E RY

HOW CONSUMER DEMAND HAS BEEN CHANGING FOR THE FOOD & GROCERY SECTOR

1

FOCUS ON QUALITY AND VALUE

44%

consumers consider value to be a key factor in deciding where to buy groceries

2

MOVING TO HEALTH AND ORGANIC FOODS

70%

more consumers are determined to purchase groceries to sustain healthy and nutritious eating compared to previous year. Over half of these respondents intend to spend more on organic ingredients.

Two major forces are seen to be responsible for shaping demand in the grocery retail space. One is the sheer knowledge to which the average Indian consumer has access which has transformed the household’s shopping behavior. The other epicenter of growth momentum is polarization between urban and rural areas in India - while the semiurban areas and emerging cities are expected to drive the next wave of value growth due to the rapid rate of urbanization, rural demand is likely to continue driving volume growth. The four key themes dictating consumer behavior are: focus on quality and value, moving to health and organic foods, online shopping and the ascendance of omnichannel.

8 / Indianretailer.com / May 2022

60%

The top six or seven metros are expected to make up

consumers intend to continue to use online as an alternative to in-store shopping, in-grocery shopping and take-outs.

5

4

THE ASCENDANCE OF OMNICHANNEL

MODERN FOOD & GROCERY RETAIL

44%

7% penetration of modern food and grocery retail is expected to reach

7%

of the market and mid-tohigh affluent households could form the bulk of the customer base.

by 2025, compared to 4.5 % in 2019.

Grocery shopping focus on healthy eating and nutrition in 2021 compared to 2020

Expected spending per food product category in 2021 compared to 2020

% of respondents

Net intent2 Above +1

Do More

About the Same

28%

69%

% of respondents

+35

+21

+41

+21

+51

15

20

12

17

9

35

31 45

50

42

52

38

60

Organic/Bio

Low Sugar/ calories

High protein

Low fat

Naturally healthy

3% Do Less

38

36

Do Less

About the Same

Do More

May 2022 / Indianretailer.com / 9

* Source: McKinsey and other various reports.

3

ONLINE SHOPPING

E X P E RT TA L KS

I

t is no secret that today, there is a strong case for a shift to an ‘in-home experience’. Calling it an ‘in-home’ experience instead of digital or online seems apt, as one may purchase online, however, home is where the experience is delivered.

DIGITAL VS EXPERIENTIAL RETAIL EXPERIENCE

K. Venkataramani, MD and CEO, Health & Glow

DESPITE SEISMIC SHIFT TO DIGITAL, WILL CUSTOMERS STILL PREFER AN

EXPERIENTIAL RETAIL EXPERIENCE 10 / Indianretailer.com / May 2022

In reality, digital vs experiential retail is not an either/or question, it is an ‘AND’ situation. Both will exist and feed off each other. The keyword here is ‘Experiential’. For every case of ‘in-home experience’, there will be one for ‘experiential retail experience’ and vice versa.

The fact is, both will coexist.

So, the question is, which part will stay relevant in out-of-home spaces and which will move indoors?

Well, the less differentiated experiences will move in-home.

For example, packaged products that don’t need trial and where a consumer sticks to a set of brands, i.e. mostly FMCG brands.

But, the categories which cater to variety-seeking consumer behavior will see a continuation of people stepping out to browse, touch, or feel the product for seeking out the new. Consequently, wooing the consumers with ‘experiential delight’ will be important for such categories.

Beauty and personal care is one such category. Trying out new shades and checking the sensorial feel becomes imperative for consumers to make their choice of product. The same applies to clothing for special occasions wherein a consumer wants to be sure of the fitting, the feel of fabric, its color, etc.

Experiential retail, therefore, becomes critical for recruiting new customers, aiding browsing, to drive trials and brand switches, or for seeding new categories. Consumers will seek this as part of their shopping process. It’d be interesting to see if online players can deliver this, with an in-home experience.

There is no doubt that in-home (online) and in-store (offline) experiences, both will coexist and serve different needs of the same customer. From a retailer and brand’s perspective, it would be best to ensure that they complement each other.

WHY DO CONSUMERS NEED AN IN-STORE EXPERIENCE FOR BEAUTY AND PERSONAL CARE PRODUCTS?

Beauty products are high involvement and high risk. These products are used on the face and skin.

So, consumers feel the need to scrutinize them with utmost care.

Their trial to check the effectiveness and sensorial deliveries are important aspects of testing the product, before making a purchase decision. Added inputs from beauty advisors or experts help further and the overall in-store experience delivery goes a long way in building trust and in new customer recruitment.

Certain aspects such as the fragrance of a product cannot be experienced online.

The experience of spraying the perfume from a tester cannot be replaced by any other medium.

The true shade of the product can only be tested at a store. There is nothing like trying the compact or lipstick in front of the mirror. At the store, you have the privilege to get your skin tested by an expert and then be recommended the best-suited product for your skin type.

In addition to all of this, a consumer can walk into a store and walk out with the products right away if they decide to buy them.

So it is necessary to deliver omnichannel experiences that integrate online and offline combining the desired experience with convenience

so the customers felt safe, yet satisfied.

THE COEXISTENCE OF IN-STORE AND IN-HOME SHOPPING EXPERIENCE

There is no doubt that in-home (online) and instore (offline) experiences, both will coexist and serve different needs of the same customer. From a retailer and brand’s perspective, it would be best to ensure that they complement each other.

manage to drive trials in commoditized and lowrisk categories.

Categories of products or services that lend themselves to delivering a relevant experience, will still draw people to their premise/ retail store. Some of the examples are - cinematic experiences, fast-food or dining experiences, and even salon services.

Though at times for one’s convenience, one would

78

50

of young consumers prefer to spend money on an experience or event and share these on social media.

of the surveyed customers said that they planned to move out for shopping once the COVID restrictions are lifted.

PERCENT

This is perhaps the key reason why online players and D2C brands started selling through retail stores after a while. If they do not set up a retail store, there is a high possibility that they won’t be able to recruit new customers on an ongoing basis.

For example, Amazon has started setting up ‘Amazon book stores’ and ‘Amazon 4 star’, in the US after putting several bookstores and chains out of business.

When it comes to trying new products, brands, and categories, retail stores offer an instant here-andnow discovery and/or trial experience. Online players do

PERCENT

watch a movie at home, get food delivered at the doorstep, and even call the salon staff at home, consumers agree that these services are best experienced at the theatre/ restaurant/salon itself.

THE IMPACT OF COVID-19 AND HOW IT DISRUPTED THE RETAIL INDUSTRY

At a very fundamental level, can you stay at home and enjoy everything forever? The post-Covid era has certainly proven that. Humans are social creatures and cannot be caged. Providing for the needs, shopping, and entertainment will always

entice people to move out of their homely existence. Being outdoors has been and will be seen as ‘exciting’.

THEREFORE, NOW THE ONUS IS ON THE RETAILERS TO MAKE IT EXCITING FOR THE CONSUMERS. THIS WOULD REQUIRE:

1. A strong and dynamic understanding of customer needs 2. Crafting and updating your proposition and experience to cater to these needs The pandemic forced many retail stores and businesses to close down, and it resulted in thousands of people losing their businesses and jobs.

This wave for the retail industry shook them to the core but also encouraged them to think innovatively and try to discover how technology could help them get back in the market.

As the restrictions due to the pandemic were gradually easing, businesses and stores started building themselves again to get back in the industry. Well, they returned with a much-developed version of their store, brand, and business.

Earlier this year, nearly 50 percent of the surveyed customers said that they planned to move out for shopping once the COVID restrictions are lifted. In this case, brands offering an in-store experience were ahead of those that focused only on e-commerce. Luxury brands are already capitalizing on personalization and localization. Experiential retail is here to stay, and the pandemic only accelerated the reinventing process for retail stores.

May 2022 / Indianretailer.com / 11

FO O D & G RO C E RY

2019 and October 2021.

In India, 84 percent growth was observed over the same period.

4

GROWTH OF MEAT SUBSTITUTES

The non-appeal of meat substitutes is much more prominent among meat-eaters aged 18-44 than vegetarians.

Over the last couple of years, India has seen over a dozen start-ups offering a range of second-generation plantbased meat alternatives such as vegan chicken, veggie burgers, keema, and kebabs which precisely mimic their animalbased counterparts.

NEW-AGE CONSUMERS’ PRODUCT BUYING BEHAVIOR The economic slowdown is changing the way consumers shop. Here are some of the consumer trends that the industry is witnessing in recent times.

1

AFFINITY TOWARDS TRADITION

39%

of people aged 35-44 expect brands to offer traditional ingredients in packaged formats.

25%

rise in high-protein claims in food and drink launches in India between November 2018 and October 2021.

12 / Indianretailer.com / May 2022

The pandemic led consumers across all age groups to lean towards traditions in foods, beauty regimes, and health and wellness. This is clear as 39 percent of people aged 35-44 expect brands to offer traditional ingredients in packaged formats. This creates an opportunity for brands to play up the health benefits of local ingredients like tulsi, ashwagandha, and ghee.

2

HIGH-PROTEIN IN DEMAND

There is a lack of confidence among consumers that they are getting enough protein, which is good news for food

and drink companies. While this sentiment resonates equally among vegetarians and meat-eaters, it chimes more among women than men. Opportunity exists for brands to introduce products, especially targeted at women that can fulfill their daily protein need conveniently and cost-effectively.

3

PLANT-BASED DIET ON THE RISE

High-protein claims in food and drink launches in India have grown by 25 percent between November 2018 and October 2021. Among highprotein launches globally, the plant-based claim has risen by 40 percent between November

HEALTHY SKIN MATTERS

As Covid-19 has raised the issue of both physical and mental health, consumers’ mindset towards skincare has undergone some significant changes. Consumers are demanding newer approaches to skincare because they recognize that beauty comes from the inside out.

Skin health claims such as strengthening the skin barrier and skin immunity will drive the beauty conversation rather than skin appearances.

6

VALUE-ADDED EXPERIENCES

Consumers are willing to go the extra mile for valueadded experiences. A key trigger for the purchase of premium products is the entire experience associated with them. 47 percent of Gen-Z and 52 percent of millennials say experiences are more important to them than material possessions.

Accentuating experiences associated with the consumers’ journey will play a major role in improving the experience.

*Source: Mintel

6 TRENDS DRIVING

5

C OV E R STO RY

DEVENDRA CHAWLA, CEO, SPENCER’S RETAIL & NATURE’S BASKET

14 / Indianretailer.com / May 2022

SEAMLESS

BY DESIGN

BY CHARU LAMBA

“EVERYTHING WE DO, WE KEEP OUR CUSTOMERS AT THE CENTER. CUSTOMER EXPERIENCE IS CORE TO US AND EVERY DECISION WE TAKE IS ALIGNED TO CREATE CONSISTENTLY ENJOYABLE EXPERIENCE FOR OUR CUSTOMERS,” DEVENDRA CHAWLA, CEO, SPENCER’S RETAIL & NATURE’S BASKET May 2022 / Indianretailer.com / 15

C OV E R STO RY

T

he first-ever hypermarket in India was launched by Spencer’s. It is a pioneer in its own way. It was one of the earliest players to get into the online grocery delivery.

Today, it boasts of more than a million trading area spread across the country. It acquired Nature’s Basket in 2019 to offer gourmet food and a truly global experience to its customers and successfully did the strategic turnaround of the acquired business. Within 1 year of acquisition, it became EBITDA

Spencer’s brand positioning – MAKES FINE LIVING AFFORDABLE.

16 / Indianretailer.com / May 2022

positive in FY21 for the first time ever. It expanded Nature’s Basket from 3 cities to 5 cities and opened stores in South Point, DLF Saket, Punjabi Bagh in Delhi NCR, and Forum Mall and Park Street in Kolkata. The brand has also created a unique platform for the gifting needs of customers - ‘The Gift Studio‘ (TGS). The beauty of the TGS brand is that it offers the choice of building your own hamper from scratch, so one can create gifts as unique as their loved ones. “We at Spencer’s make sure that our customers get everything they need at prices they like, at whatever time they wish, and wherever our stores are operational. We have a large bouquet of categories to serve our customers: • Unique Fresh Section:

The first-ever hypermarket in India was launched by Spencer’s in Hyderabad in 2000.

Spencer’s offers unique fish and meat, fruits and vegetables– giving the customers more reasons to come to our stores for their daily shopping needs.

• Great Assortment of Goods: We offer food and non-food items to our customers. Food and FMCG category includes household needs, health & beauty, frozen dairy, processed foods, staples, and beverages, among others. The non-food category includes apparel, cleaning aid, disposable items, health & hygiene, linen, luggage, plasticware, metalware, and other general merchandise and electrical goods.

• Differentiated and Unique Range of Products: We offer a product basket you are highly unlikely to find in other places because we have gone

the extra mile sourcing them.

Not just that, we delight our customers with a wide range of quality products. We have several private brands, such as 2Bme, Smart Choice, Healthy Alternatives, Hands-on, and Inscapes,” stated Devendra Chawla, CEO, Spencer’s Retail and CEO, Nature’s Basket.

The customer value proposition of the brand is clearly communicated through its vision statement ‘Makes Fine Living Affordable’. These words reflect the very purpose of the brand, and how it is dedicated to providing better shopping experiences by being more accessible to its customers.

“We create value for our customers through products and services. We are a multichannel and multi-format

Spencer’s (including Nature’s Basket) runs 189 stores with a total trading area of 14.50 lakh sq. ft. in 41 cities in India.

C OV E R STO RY

retailer that serves multiple shopping missions of the customers. Our assortment offerings are aligned to serve these multiple shopping missions of our customers through a unique, wide, and differentiated assortment. Our ‘Out-of-Store’ transformational initiatives are in line with our mission to be partner in multiple shopping missions of the customers,” he asserted.

“We create a lasting impact by bringing ‘Joy of Shopping’ to customers. We invest heavily in technology to serve customers in a personalized way,” he further added.

OP TION S GALO RE Apart from offering other brands, private brands as a segment is core to Spencer’s and through this, it comes up with new products at the right price points that bring a unique value proposition to customers.

As a business, private brands contribute a substantial part of business and are liked by its

customers.

“Spencer’s has been traditionally a very strong brand in the food category.

Over the years of our legacy of being the oldest hypermarket in the country, we have deep insights into our customers what they want, and how their preference changes. This helps us in expanding our assortment basis the expectations of our customers. We don’t stick ourselves with the lenses of food or non-food, we keep the consumer at the center and work on categories that make our consumers a winner.

For us, being a companion of customers across their multiple shopping mission and basket needs is a central theme,” Chawla said. Recently, Spencer’s has worked extensively to bring new products into the organic space and has also onboarded products of several new-age startup brands. All these actions are aligned with consumer preferences.

“Pandemic has forced all of

us to stop and think in a more meaningful way of what we are eating and what impacts it may have on us in a longer-term perspective. This is very much evident from the changing customer preferences and thus the changing shopping habits. The back of the pack has become more important and is the ‘New Front’. People do tend to go through the content of the products to know more about the products they are eating,” he asserted.

Spencer’s has seen significant traction in the health and hygiene category. Several new players have also entered this category and customers are also becoming more

We create value for our customers through products and services. We are a multi-channel and multi-format retailer that serves multiple shopping missions of the customers.”

Devendra Chawla, CEO, Spencer’s Retail & Nature’s Basket

18 / Indianretailer.com / May 2022

conscious about health and hygiene. The quest for organic products, hydroponics, and natural products is becoming mainstream. DIY categories in several segments especially personal grooming has seen significant adoption among consumers.

J OY OF SHOPPIN G As a multi-channel and multiformat retailer, Spencer’s brings a unique proposition to its customers through a wide assortment including products in fresh, bakery, and gourmet foods to serve the overall basket needs of the customers. It is a neighborhood brand and it always strives to be present in the multiple shopping missions of its customers. It strongly believes that customer experience is the unique combination of product and service. It invests heavily in relationship building with customers through personal connections and also building backend technology to take

C OV E R STO RY

personalization at scale.

“Whenever one thinks to shop at Spencer’s, one visualizes and relates not just with unique, wide and differentiated quality products, but also with a ‘Joy of Shopping’ which is so essential in the overall customer’s journey. We create a lasting impact through our focus on personalized connect with customers and making Spencer’s a great place to shop for customers,” Apart from this, the brand has also been recognized as a Great Place to Work three times in a row.

OMNICH A N N EL: THE WA Y F O RW ARD Spencer’s believes that being true omnichannel is a way forward. In the catchments it is present in, it sees itself as a companion to customers in all their shopping missions and their basket needs.

“Omnichannel for us is not just about a digital channel but we have built a unique ‘Out of Store’ channel which enables customers to place an order through the app, webpage, Whatsapp, or even 20 / Indianretailer.com / May 2022

a telephone. Omnichannel for us is about engaging with customers in multiple ways they want to do. We have traveled a long journey in building ‘Phone par Delivery’ model for our customers but it has long miles to travel,” he explained.

“Pre-pandemic, ‘Out of Store’ contribution in business used to be in early single digit and during lockdowns it touched almost 30 percent.

Even now when we are getting

back to normal and footfalls are coming back to stores, Out of Store business is at 5-6 times the pre-pandemic level. We are more omnichannel than prepandemic,” he further added.

FUT URE PLAN S Spencer’s is optimistic about the demand in the market and believes that this will only get stronger in the coming times. It has been experiencing a strong rebound in footfalls across markets. Categories like apparel

and travel needs are bouncing back strongly with the opening of offices, markets, schools, and travel. “We have recently opened multiple new stores and customers have been loving us for our service and product.

We have a strong pipeline for new stores in different markets for this year and we are also ramping up our ‘Out Of Store’ channels in these catchments,” he concluded.

TECHNOLOGY THE GAMECHANGER Technology is an essential lever to drive the success story of a truly omnichannel service. For technology to make it happen there are two fundamental elements that Spencer’s has addressed: • Single View of Data (SVOD) • Single View of Customers (SVOC) Explaining it further, Chawla said, “With scale, there also comes complexity, and therefore, it becomes important to align the entire value chain to provide

a seamless experience to customers. This requires not only visibility of systems within systems but also a unified connected system that enables us to get a Single View of Data. SVOD enables real-time data-driven decision-making.

Use of AI, ML, and Big Data brings superior intelligence and make us an agile and flexible organization.”

“Seamless customer journey is the heart of customer experience economics. Therefore, the concept of SVOC is critical for businesses to explore

and pursue. It’s a continuous learning journey where we integrate customers’ behavior across our platforms to get real-time 360-degree view of customers. SVOC enables you to personalize the communication, content, recommendations, and even offerings at scale,” he further added.

Technology for Spencer’s is the driver of the business and it touches every person and function in the organization.

FO O D & G RO C E RY

KIRANAS GIVING TOUGH COMPETITION TO QUICK COMMERCE PLAYERS

In India, Kiranas have been the original quick-commerce solution for decades now.

Whether you need a sachet of shampoo or a packet of sliced bread, the friendly neighborhood store has been a dependable resort. Kirana stores keep a larger number of SKUs, a wider product mix, and offer better prices to a shopper.

BY VA I S H N AV I G U P TA

A

ccording to a survey by Snapbizz, smart Kirana stores are the best proposition for the shopper not just in terms of order fulfillment but also in terms of prices.

Online orders and home delivery are standard retail terms for Kiranas and e-commerce. Kirana, on the other hand, have been doing it for a long time when it comes to financing and receiving payments over time. Many have multigenerational and lifelong relationships with their customers and that level of stickiness is difficult to imitate. Q-commerce offers 500-2,000 key SKUs but may struggle to enhance unit economics with small orders, and centralized stocking makes changing the product mix difficult. Additionally, they require high-density regions to thrive.

Kiranas perform successfully even in low-density locations due to their small order baskets and inexpensive overheads.

“Smart Kiranas are new-age entities that offer speed, efficiency, and efficacy of using digital solutions while offering the traditional advantages of a quick delivery, personalization, financing, and speedy response to customers.

Q-commerce will find that Kiranas are no pushovers, and instead of competing with them, they could leverage modernized Kirana stores for last-mile delivery,” Prem Kumar, Founder & CEO, Snapbizz said.

22 / Indianretailer.com / May 2022

Q-COMMERCE V/S KIRANAS

According to current estimates, the quick commerce industry is projected to grow 10-15x over the next five years. Today’s customers are digital-savvy and like the convenience and having more options at their fingertips - at the same time, neighborhood store owners offer an extra degree of trust that no amount of digitization can replace.

The neighborhood Kirana stores and vegetable and fruit vendors have been a vital component of Indian retail for millennia, serving about 90 percent of India's 1.3 billion population. Apart from delivering the monthly grocery list, they are also the last-minute and last-mile suppliers for Indian households. None of this has changed, despite the fact that deep-pocketed e-commerce businesses are focusing on last-minute deliveries.

Previously, e-commerce had the advantage of presenting a wider range of products. However, Covid-led shifts in consumer purchasing behavior have led to Kiranas adopting digital solutions, making them more competitive and integrated with other ecosystem stakeholders.

“Kirana stores are the veterans in this game. Instead of replicating small retail, new-age Q-commerce may be better served by collaborating with the already enormous infrastructure of Kirana stores, where one can profit from the other. While Q-commerce brands have a larger reach and more budgets, Kirana boutiques have stronger selling skills and a more personal touch. They may work together to access underdeveloped locations and become true one-stop

shops for Indian buyers,” Kumar noted.

Like e-commerce, quick commerce shall have limited success (primarily, among Tier-I and-II towns and amongst millennials and Gen-Z users). “They have to find alternate revenue sources in order to stay afloat. Leveraging data to drive sales of high-margin deals can’t be ruled out. When the market matures, dark stores of quick commerce players can be replaced by large Kirana, a move Jio Mart is already undertaking,” Ashutosh Verma, CEO, and Founder, ANVI asserted.

Kiranas & vegetable-fruit vendors serve

90% of India's population

EMPOWERING KIRANAS

Kirana stores are the concierge of the household rather than suppliers of groceries. Q-commerce claims to be fast, but Kiranas, especially smart digitized stores, are fast, have more SKUs, a better product mix, and a better value proposition. Various platforms are facilitating Kirana stores to digitize their operations.

For instance, udaan has built robust capabilities across the retail value chain — supply chain, sourcing, lending, and

technology — to solve the problems faced by small retailers across the country who cater to over 90 percent of India’s retail consumption.

“Over the last five years, we have invested and built huge capabilities — daily delivery to over 1,200 towns and cities, delivering over 7,000-8,000 tons of products daily on our network, offering the best quality and a huge variety of products to Kiranas across Bharat, offering trade credit and enhancing the experience of retailers

with deep customer insights,” udaan spokesperson stated.

Similarly, ANVI is empowering Kiranas by equipping them with an easyto-download neo bank account along with a plastic card that can be directly loaded with cash along with smartphonebased payment acquiring capabilities.

“For Kiranas, this eliminates the need to open a bank account, take an expensive merchant discount led Point of Sale Device or bank account linked UPI QR. It’s everything a Kirana store needs to do business and avail cheap credit in one easy-to-use app,” Verma said.

The company provides easy and cheap credit to stock up inventory using its Artificial Intelligence backed 3-1-0 platform (3 minutes for a Video Interview conducted by an AI synthesized loan officer, 1 second for AI engines to disburse the approved loan on the provided ANVI card, and 0 paperwork).

May 2022 / Indianretailer.com / 23

FO O D & G RO C E RY

Q-commerce will find that Kiranas are no pushovers, and instead of competing with them, they could leverage modernized Kirana stores for last-mile delivery.

Prem Kumar, Founder & CEO, Snapbizz

Q-commerce players have to find alternate revenue sources in order to stay afloat. Leveraging data to drive sales of high-margin deals can not be ruled out.

Ashutosh Verma, CEO and Founder, ANVI

TOP FEATURES OF Q-COMMERCE

1

Deliver goods (typically essentials like groceries) in under an hour or as quickly as in 10 minutes

2

Allows for real-time tracking of a product

3

Combines the benefits of traditional e-commerce with superior last-mile delivery

4

Operates with local 'dark stores' that facilitate faster deliveries

5

Heavily relies on technology and online service to fulfill customer's daily needs

Kirana stores were able to supply

100%

of the items while Q-commerce stores could only do

20-26%

24 / Indianretailer.com / May 2022

To achieve significant financial inclusion, Snapbizz, too, delivers embedded, relevant, and holistic financial solutions not only to small merchants but also to their ecosystem partners on both the demand and supply sides.

Using customized digital solutions from Snapbizz, Kiranas have improved their inventory management, and billing systems, made larger online catalogs available to customers via apps, as well as used predictive analytics to identify customer preferences.

“Our products not only assist merchants in obtaining working capital in a cost-effective and timely manner but also assist lenders in reaching out to them and providing them with information on the merchants' financial health. What distinguishes our proposition and perspective is that we

map store performance variables such as media basket size, footfall, goods, stock turnover ratios, and consumer profile against similar store clusters to deliver continuing meaningful scores and alerts,” Kumar added.

THE FUTURE AHEAD

Quick commerce brands are a relatively new entrant into the e-commerce space, which is why it’s too soon to say how far customer sentiment will shift in their favor.

What is certain, however, is that Kirana stores are currently doing much better when it comes to small, daily purchases.

The Indian retail market is estimated to be a $1 trillion market opportunity of which food and grocery constitute 65 percent. Despite a huge market opportunity, about 93 percent of the market is currently unorganized and served by over 20-25 million Kirana stores across the country.

“With a large addressable market, we foresee the trend to continue given the inherent advantages that traditional Kirana stores offer especially across Bharat (Tier-II and III cities). We have always believed Kiranas will be integral for everyday purchases. The pathway to success is to further leverage the B2B e-commerce model as more retailers and Kirana stores pivot to digital to serve customers,” udaan spokesperson said.

“We did a recent study where we found that out of a few daily-use items on the average shopper’s bill - such as spices, handwash, cooking oil, and biscuits — Kirana stores were able to supply 100 percent of the items while Q-commerce stores could only do 20-26 percent.

Additionally, the Kiranas were the ones that offered better value for money on a lot of the items. This may change, of course, as Q-commerce brands expand their offerings and take advantage of unit economies that can bring down bill value.

What is likeliest, on the whole, is that both models will bring their unique offerings together and serve Indian customers in new and improved ways while retaining the familiarity that makes such a difference,” Kumar concluded.

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FO O D & G RO C E RY

FMCG FIRMS SHOULD INCREASE MARGINS FOR

down in some cases,” he said suggesting them to negotiate collectively better in terms of trade with FMCG makers. Some companies have magical price points, which have remained the same despite successive hikes.

“What they have done over a period of time is to reduce the product quantity and ingredients, and reduced the optimized packaging as far as possible.

Now, the only thing they can do is to reduce the retail margin,” said Mediratta, FMCG makers, earning higher profits on their products, who is also the Chairperson for retail and should consider increasing the margins for small retailers internal trade of industry body FICCI. selling their goods, said Arvind Mediratta, MD and CEO, According to him, the future of retail METRO Cash & Carry India. is converging of physical and digital, and the government should provide easier access to loans to the small retailers, who lack resources for their modernization. Mediratta also pointed out that some retailers are losing billions of dollars and crosssubsidizing the product to distort the competition and push the Kirana and local stores out from the trade.

“We need a retail policy.

For the last many years, FICCI, CCI, and RAI are working. We have a draft retail policy, which has been tabled to the government but it has not been formalized yet,” he said adding that “it is one of the critical needs of the hour”. This should be Arvind Mediratta, one integrated policy for the MD and CEO, METRO Cash retail sector and not separate & Carry India for e-commerce, small retailer, and large retailers.

“The future of retail is omnichannel. he margins for the retailers have Kiranas have to phygitalize” by integrating not changed for the past several their physical presence with digital, he FMCG companies are making years and the FMCG companies added. Some people say the future is record profits year-on-year, still call the shots in this, said e-commerce and he disagrees with that. the volume growth is four Mediratta suggesting a proper equitable “Physical retail is not going percent and profits have grown distribution of margins. anywhere but it has to incorporate some “FMCG companies are making record of the good features of e-commerce to profits year-on-year, the volume growth make themselves more appealing and is four percent and profits have grown relevant to the consumers,” he added.

40 percent. Why is that because they small retailers are facing as margins They should learn how the e-commerce have kept the margins of the traditional are the same but their operating cost platform provides more information about retailers fixed and unchanged over the is increasing. “Everything has gone up, the products, their review system, the salaries have gone up but the margins past 30 years,” Mediratta said. process of returns and refunds.

This is one of the problems that the have not gone up. It has actually come

Kirana Stores: METRO Cash & Carry India MD

T

26 / Indianretailer.com / May 2022

40%

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FO O D & G RO C E RY

TACKLING THE CHALLENGE OF

REVERSE LOGISTICS

Some of the specific demands that food companies have with respect to their supply chain are managing bulk returns, handling expiry of products, and making sure that near expiry goods are not warded if being returned

T

he problem of reverse logistics has always been a challenge for e-tailers. However, the challenge has magnified in the current age of Q-commerce where consumers want everything at their fingertips within minutes if not hours. It is even a greater hassle for the e-grocery players since their supplies have a short shelf-life.

They are heavily dependent upon a reliable reverse logistics model to be sustainable over a longer period.

SERVICES PROVIDED BY ENABLERS 1. Calling customers before starting the delivery process, to ensure their availability and address.

2. RTO or Return To Origin turnaround time is within 24hrs so the business is not impacted by a lost product 3. Product gets reinstated in the inventory system within 24hrs so it is available for sale in record time 4. Introduction of three-hour delivery has enabled a drastic reduction in returns from 30 percent in standard delivery to 10-15 percent in the same day and threehour delivery

28 / Indianretailer.com / May 2022

BY N AV N E E L A LVA R E Z

WHAT IS REVERSE LOGISTICS?

Reverse logistics stands for all operations related to the reuse of products and materials right from the consumer back to the supplier. That can also include all recycling, reclamation of raw materials, refurbishment, and reselling of items that have been restocked.

Some of the specific demands that food companies have with respect to their supply chain are managing bulk returns, handling expiry of products, and making sure that near expiry goods are not warded if being returned.

UNDERSTANDING THE PROBLEMS

Challenges in reverse logistics are manifold. Let’s say you order from an app or website, and whoever is managing the inventory will get the order. And, let’s say of all the orders that were

dispatched, a certain percentage of orders were returned-toorigin (RTO) for various reasons, say the customer was not available or the address was wrong then the order has to be brought to the hub. In that case, there are multiple problems that arise for a grocery retailer.

Roshan Farhan, Founder, and CEO of e-grocery firm Gobillion shared, “There are two kinds of problems: firstly, your GMV (Gross Merchandise Value) is stuck – the sales which could have been fulfilled today are stuck. And, number two, if it’s an internal issue, let’s say our delivery guy could not figure out the address or could not

reach out to the customer. The customer is expecting the order that leaves a bad customer experience and number three, I am incurring significant costs in the reverse logistics. Ideally, if I drop the order, on the last mile itself, it would charge an average of Rs 40-45 and then I will incur another Rs 20-25 on the reverse logistics.”

The overall logistics costs for a firm thus go up and the unit economics takes a hit. As such, companies have devised various strategies to eradicate various hassles involved with the reverse logistics aspect.

Niranjan Sharma, CoFounder, and CEO of online grocery supplier Kisanserv said, “We are working on B2B2C, where we deliver fruits and vegetables through different channels of retail sales. We have a no-question ask return and replacement policy. We either take back material at the time of delivery or the next day within 24 hrs. This gives confidence to our customers and they buy without fear.”

If we look at the major grocery e-retail players like Dunzo, Zepto, Swiggy Instamart, Gobillion, etc., what we see in common is their heavy investment in technology in their processes and training their workforce.

This is how they ensure much of their supply chain hassles get sorted.

reverse logistics. With quick deliveries becoming a norm in the metro cities specifically, Quickshift has opened up options from standard delivery to three-hour delivery. This is giving customers options to exercise and having a positive impact on reducing returns.”

Resonating the same thoughts, Kapil Makhija, CEO of Unicommerce, which has experience working with some of the leading FMCG brands in the industry and helping them streamline their supply chain and business operations shared: “Our solutions provide centralized visibility of inventory movements to our clients along with clear visibility of RTOs and customer-initiated returns. This helps brands to analyze and do a comprehensive quality-check to understand key reasons for the origination of returns thus being

HOW CAN ENABLERS COME TO RESCUE

It is apparent that to build a solid reverse logistics chain, the e-grocery firms cannot do away without relying upon good service providers/enablers that handle that aspect for them.

Prodipto Roy, Co-Founder of Pune-based e-commerce enabler Quickshift said, “Across industries, businesses are experiencing a volatile customer behavior when it comes to

We are working on B2B2C, where we deliver through different channels of retail sales.

Niranjan Sharma, Co-Founder & CEO, Kisanserv

able to proactively fix them at a faster speed.”

IMPLICIT ROLE OF THE STATE

To give a macroscopic view on the subject, India’s logistical cost from the budget is 14 percent whereas the sector contributes only 14.4 percent to the country’s income. For other developing countries, the logistical cost is about 10 percent. This entails that there is also a strong need for topdown measures to get things in order for the sector.

This is where PM Gati Shakti comes into the picture which is one of the most talked-

about topics since the plan was laid down in the recent Budget 2022. The 25-year long plan is targeted to make the movement of people, goods, and services more efficient across India which will be powered by the digital platform.

Prahlad Tanwar, Partner and Global Head - Logistics Services, KPMG in India said, “Traditionally you have one ministry focused on building powerplants and another ministry focused on railways and transportation, there has there been very little coordination. The Gati Sakti can go a long way in integrating the same.”

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FO O D & G RO C E RY

PROVIDING EFFICIENT, CONVENIENT AND RELIABLE SERVICES TO BRANDS TJUK was started by Keyur Bhatia in 1994 as a boot-strapped last-mile distribution business in Mumbai from a 180 square feet operation unit.

Today, the company spreads over 6 states of India and building one of India’s largest sub-distribution networks.

BY C H A RU L A M BA

O

ver the two decades, the company has built strengths in the area of food distribution and launching brands in the entire Indian market. It services both the retail and foodservice businesses.

“The most fulfilling part of the journey has been in product category creation and brand building. Some of the most noteworthy partnerships have been with the brands like Baskin Robbins, Pillsbury, London Dairy, McCains, Cornitos, Rich’s, and Nutralite to name a few,” shared Keyur Bhatia, Chairman & MD, TJUK Trade Networks Pvt. Ltd. “We do more than just moving boxes through the supply chain. We take care of everything right from building the last mile distribution network, to logistics, warehousing, primary distribution services, expert advisory on sales, market entry

strategy, on-ground customer activation, and order follow-up. After spending years studying the market and its trends, we have evolved a model of operation that has proven to be instrumental to the success of our stakeholders. Our aim is to go above and beyond by fulfilling every need, be it from the supplier or the customer. We have built a legacy that brands can trust when it comes to food distribution across India,” he further added.

Apart from this, TJUK is known for providing market access to brands and hyper accelerating their growth. “The ambition is to build a hyper-local lastmile distribution model that has panIndia,” the company stated.

THE BRAND GAME

Currently, TJUK is handling the distributorship of more than 100 brands and is planning to collaborate with many big and new brands in the near future.

“By design and choice, our model is focused on delivering value to the brands to

help them achieve their sales objectives. We focus mainly on increasing the reach and depth of our distribution and territory we serve and constantly increase the customers connected to our network,” stated Bhatia.

“Being an organized distributor and brand builder, we understand very well the value a good distribution partner brings to the table. Hence our approach is to develop an international last-mile distribution network for brands versus working with trader importers. We start typically with a clear GTM strategy for each brand we represent and sign up

SERVICES PROVIDED Imports TJUK has a pan-India distribution network.

This includes five dedicated regional distribution centers that ensure a reliable reach of products. It has over 2 decades of experience in serving diverse sales channels for more than 100 of the largest local and multinational brands. Its sales processes have evolved through grass-root level participation in brand launches for its leading brands.

30 / Indianretailer.com / May 2022

Market Development and Sale Over a period, TJUK has built strong relationships with all the key retail and hospitality customers. The sales team brings its product category knowledge to effective on-field application of products.

TJUK also brings in the latest technology for real-time order booking and sales tracking. Besides running a successful last-mile distribution enterprise for Mumbai, it also has a large team of subdistributors working with it for deeper market penetration. Having a dedicated sales force and marketing team for a specific brand ensures that the targeted growth in volumes is visibility met.z

Our value proposition is that we provide market access to brands and hyper accelerate their growth.”

Keyur Bhatia Chairman & MD, TJUK Trade Networks Pvt. Ltd.

40,000+ CLIENTS CONNECTED

to our extended distribution chain

with the distributor for a joint business plan which is a structured time-bound approach for step-by-step market penetration and closely work with our distributor partner and monitor the same,” he added.

TECHNOLOGY INTEGRATION

Technology is the backbone of every business. “TJUK uses data analytics to identify the gap in the market and then milk the opportunity with regular notifications and MISs for reviews. We have collaborated with the best-in-class SFAs (sales force automation), and

has a retail POS integration for autoreplenishment and predictive ordering,” Bhatia asserted.

FUTURE PLANS

TJUK is planning to set up 50+ distribution centers in 30 cities in the next 12 months. “We are planning to digitally transform the entire value chain from manufacturer to consumer to bring greater efficiencies. Along with harnessing the power of data to increase market share for our partner brands and increase convenience for our B2B users,” he concluded.

Last Mile Distribution TJUK is one of the largest food distribution organizations in Mumbai with over 40,000 clients connected to our extended distribution chain and a supplier base of some of the largest multinational and regional FMCG companies. It uses a fleet of multi-temperature vehicles, a globally renowned ERP system, and a robust and automated logistics system for an efficient and reliable distribution reach.

Logistics It is a provider of third-party logistic services where companies outsource a part of their Supply Chain Management function to TJUK. It is also a CNF (carrying and forwarding) agent to some of the larger food manufacturers in the country.

TJUK’s Unique Competitive Advantage • Evolved understanding of the art and science of distribution.

• Standing tall in India’s biggest market – Mumbai.

• Strong credibility with brands cultivated over the years.

• Finger on the pulse of the market, innovation, and food industry trends.

• Deeply engaged relationships in the customer ecosystem – nurtured over years (CRM).

• Multi-city rights from brands based on service levels and credibility.

• Customer side quick order app • Route optimisation and Delivery tracking for clients • Intelligent predictive auto fulfilment system is linked to the WMS for inventory optimisation • Credit rating and management tool • A massive data lake of live information and Advanced data analytics.

• Suit of value added services most importantly we help brands variabalize their cost of sales

May 2022 / Indianretailer.com / 31

FO O D & G RO C E RY

MAKING CONVENIENCE ACCESSIBLE The New Shop was launched by Aastha Almast, Charak Almast, and Mani Dev Gyawali in December 2019 to capture the Convenience Retail industry which is a multi-trillion dollar industry globally, however, it is yet to be explored in India.

BY C H A RU L A M BA

Y

oung consumers in India thrive upon convenience as they prefer to consume a plethora of products and services as and when they want. Tthey have grown up with instant gratification and they don’t mind paying convenience fees for these services. All these requirements boost the need for 24/7 convenience stores and instant commerce.

That in fact, was the inspiration behind the brand’s tagline - Anything, Anytime, Anywhere.

32 / Indianretailer.com / May 2022

“Our team founded The New Shop in December 2019, just as the pandemic was setting in. Our aim was to redefine convenience retail as an industry in India. We wanted to offer a top-of-theline consumer experience in every city to every Indian, within walking distance.

India is yet to see what true convenience is. At present, very few players in the market focus on consumer experience as a chief priority.

Convenience commerce is beyond just fast delivery of groceries or the primitive ways

of buying goods at the local Kirana store, which is how 90 percent percent of Indians still shop for convenience items – at the neighborhood Kirana stores,” stated Co-founders.

“We launched our first physical store in December 2020 in a residential area in Delhi, an MVP, meant to scale.

We exponentially grew from 3 stores in January 2021 to 40 operating stores at the end of the calendar year. At the moment, we have perfected the residential model and now are exploring new horizons such as highways, railways, and airports.

Today we have 70+ stores in 6+ cities and are growing strong,” they further added.

The product portfolio ranges from legacy brands to new-age D2C brands. Its product categories broadly include fresh food and beverages, grocery, home care, pet care, OTC, bakery and desserts, breakfast and dairy, electronics and gadgets, paan products, etc.

“We intend to also provide

new service categories with a range of offerings that redefine convenience commerce such as alcohol delivery, pharmacy, courier services, printing services, etc.,” they asserted.

Apart from this, we have in-house private labels. We are also into white labeling for retail as well as non-retail categories, but this is at a very nascent stage as of now,” they added.

RETAIL AND MARKETING STRATEGY

Initially, the brand started with dark stores for deliveries.

Very soon, it realized that going e-commerce first would have involved very high marketing and CAC costs, and the unit economics involved massive burn with no signs of profitability insight, as scaling beyond urban centers had adoption limitations.

“We decided to adopt a contrarian strategy wherein we started by building out brickand-mortar stores first and

after attaining a critical mass of physical presence in a city, plug in our own delivery app, seamlessly integrating online and offline offerings for an all-encompassing consumer experience. Our brick-andmortar presence at marquee locations provided us with branding and word-of-mouth marketing at negligible cost.

The extraordinary consumer experience we provide was our best marketing tool that got us, customers, organically,” they shared.

TECHNOLOGY: THE GAMECHANGER

The New Shop is fundamentally a tech-first retail company. It has very

We decided to adopt a contrarian strategy wherein, we started by building out brick-and-mortar stores first and after that plug in our own delivery app, seamlessly integrating online and offline offerings.

limited manual interventions.

Its tech was developed completely in-house. It stores all its data in a central data warehouse. It has built applications on top of that data warehouse seamlessly integrating and making all the processes happen simultaneously.

“Our end-to-end Inventory Management System tracks a product’s locus and lifecycle.

The same system also decides what products will go to which stores. We call it ‘transference of ownership’.

This enables us to minimize our pilferage to as low as 0.8 percent - an absolutely unheard of figure in the retail space,” they stated.

“We have also created a cloud-based POS system which is assembled for Rs 10,000 including a barcode scanner, a receipt printer, a computer, and our software.

This helps us keep our CAPEX very low. The software can work in any OS and can work in any web browser. Since the UX is very

custom to The New Shop, the staff ’s training time in the POS is as low as 1 hour,” they further added.

The brand has now built a quick commerce mobile application for hyperlocal, deliveries within 1.5 km of a store that is closest to the customer’s location within 30 minutes or less.

OMNICHANNEL: THE WAY FORWARD

Physical stores empower online presence by creating a strong foundation and brand recall value; while an online presence amplifies brick-andmortar stores as customers find it easy to browse through catalogs online and decide what they want later on.

“With The New Shop, we were always certain that we wanted to meet the customers where they are and allow one distribution channel to leverage the other. Consumers love the flexibility and the agency of choice, it is what makes The New Shop experience truly convenient. This notion formed our fundamental thesis about omnichannel strategy,” they said.

FUTURE PLANS

The brand currently has 55 operational stores with 15 stores under the fit-out stage.

It is present in Delhi NCR, Ahmedabad, Lucknow, Indore and coming soon to Mumbai, Jaipur, and Bangalore.

“We are building The New Shop for all of India, and Tier-I, II, III cities are an integral part of our expansion strategy, they said.

“As a brand, we wish we to expand aggressively and have 10,000 stores by the end of 2030, such that there’s one The New Shop within walking distance of every Indian,” they added.

May 2022 / Indianretailer.com / 33

FO O D & G RO C E RY

JOURNEY FROM MUSTARD OIL TO A

COMPLETE

CPG BRAND

BL Agro’s journey dates back to pre-independence days when the business of dealing in edible oils was not considered of much repute and the business ethics were also low.

D2C STRATEGY

BY VA I S H N AV I G U P TA

BL Agro ventured into the e-commerce space with its brand Nourish in July last year. Nourish e-store has been designed and rolled out with customization features, to provide easy access to BL. “Our D2C is at a very initial stage and is not a major contributor in comparison to offline sales. A majority of the population is still not comfortable with online shopping and prefers to buy groceries and other household items from their nearby shops.

This certainly has an impact on our D2C model of business and we have not been able to achieve what was expected,” Khandelwal stated.

FUTURE PLANS

Ashish Khandelwal, Managing Director, BL Agro

A

fter researching and experimenting to process and provide the best quality mustard oil, the company came up with the branded mustard oil by the name ‘Bail Kolhu’ in 1986.

Eventually, it ventured into different varieties of edible oils and successfully captured the markets of the entire Uttar Pradesh, Uttarakhand, and Bihar.

“We can say that we have gradually evolved as a business and while we penetrate into each market, 34 / Indianretailer.com / May 2022

the ready-to-cook category.

“Due to COVID, the imported machinery that was supposed to be installed could not be done and our plans got delayed by a year and a half.

Currently, we are waiting for the things to come in our favor so that our plans can be well executed and we can offer a wide range to our customers,” he asserted.

we get to learn new things which helped us improve further. We have been able to achieve 30 percent in comparison to last year,” Ashish Khandelwal, Managing Director, BL Agro said.

The brand is currently offering 75 SKUs. In 2019, the

company introduced Nourish, a food products brand, which offers flours, cereals, pulses, and namkeens, and has been able to penetrate into 200 cities across 13 states of India in a span of two years.

In September last year, the company also forayed into

We can say that we’ve gradually evolved as a business and while we penetrate into each market, we get to learn new things that helped us improve. We’ve been able to achieve 30% compared to last year.

The total turnover of BL Agro is close to `4,000 crore in FY21-22 and its target is to reach `6,000 crore (by FY 23).

Additionally, the company plans to take its Nourish Exclusive Brand Outlets (EBOs) count to 100 by next year, from the current 15. “We had a plan to take it up to 100 EBOs by this year but due to the ongoing pandemic, we had to postpone it for some time. We currently have 15 EBOs across the North India belt and we intend to take this number to PAN India around next year. We are waiting for the situation to get better and move ahead prudently,” Khandelwal concluded.

FO O D & G RO C E RY

Is

A

midst much drama in the last 21 months, the lenders accounting for most of the loans to debt-laden Future Group on Thursday rejected a proposal to sell its retail investments to RIL. This has quashed the original acquisition plan that was announced in 2020 for Rs 24,371 which also caused the big legal feud between Amazon and Kishore Biyani-founded Future that was fought all the way to the Supreme Court as well as an arbitration tribunal in Singapore.

Almost 21 months after signing an agreement with Future Group to acquire its retail, wholesale, logistics and warehousing assets, Reliance Industries Ltd said the transaction cannot go ahead as secured creditors of the latter have voted against it.

In a filing with the stock exchanges, RIL said, “The Future Group companies comprising Future Retail Limited (FRL) and other listed companies involved in the scheme have intimated the results of the voting on the scheme of arrangement by their shareholders and creditors at their respective meetings.

“As per these results, the shareholders and unsecured creditors of FRL have voted in favour of the scheme. But the secured creditors of FRL have voted against the scheme. In view thereof, the subject scheme of arrangement cannot be implemented.”

DOOMED? 36 / Indianretailer.com / May 2022

Is Reliance Retail the clear winner?

Will Amazon stay quiet?

The scheme of arrangement was for the transfer of retail and wholesale business and the logistics and warehousing business of Future Group to Reliance Retail Ventures Limited (RRVL), a subsidiary of the company, and Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL, for Rs 24,371 crore.

The deal was opposed by Amazon and intense legal battles have been waged ever since the deal was announced.

However, the lenders are now in the midst of dragging Future Retail to the insolvency court as the debt-strapped company owned by Kishore Biyani owes over Rs 16,000 crore to the lenders.

RELIANCE: THE BIG WINNER

Despite calling off the deal with Future Retail, Reliance Industries still walks away with 947 small and large format store premium that were once occupied

by Future Retail stores therefore the setback may be minimal to Reliance.

“The owners of the stores terminated the lease with Future Retail since they could not pay the rent and leased the same stores to us. This is separate from the earlier announced merger deal with Future,” according to the sources.

Future Retail has defaulted in payment of dues to the owners of the leased premises and many had initiated termination of the lease agreements for repossession of the premises.

Reliance stepped in to take over the lease and then further sub-lease all these premises back to FRL so that its business could continue.

Reliance had taken over 342 large format stores, such as Big Bazaar, Fashion, Big Bazaar (fbb), and 493 small format stores such as Easyday and Heritage stores). However, lenders to Future Retail had objected to the

transfer of these stores and had asked the company to take them back. Following this, Future Retail had written a letter to Reliance Industries asking it to return the assets and inventory from the 900 stores.

WHAT WENT WRONG?

In August 2020, Future Retail struck a deal with Reliance Industries to sell its retail, wholesale, and logistics business for Rs 24,713 crore. Hit hard by the COVID-19 pandemic and unable to pay rents, the deal with Reliance Retail was crucial for Future Group.

The Future–Reliance deal was opposed by US e-commerce giant Amazon, which managed to get a stay from a Singapore arbitration tribunal soon after. Amazon had acquired a 49 percent stake in promoter group company Future Coupons in 2019, and it argued that under that agreement Future Retail couldn’t sell its assets to certain entities, including Reliance.

Future Retail and Amazon have fought a legal battle in Singapore, Delhi High Court, and the Supreme Court. Recently, after settlement talks between the two sides failed, the Supreme Court had last month ordered the two sides to resume arbitration proceedings in Singapore.

Even as the two sides fought in court, in February, Reliance Retail suddenly took over 100s of Future Retail stores, including the Big Bazaar supermarkets. It emerged that with Future unable to pay rents, landlords had canceled the lease agreements with Future Retail and in turn transferred it to Reliance. It had allowed Future to continue running the stores until it started taking them over in February due to non-payment of sub-leases.

Future Retail said 947 stores, which contributed to 55-60 percent of its retail revenue had been taken over by Reliance.

Bank of India, the lead banker in the consortium of lenders to Future Retail, has already initiated insolvency proceedings against the company following the default.

Amazon has become the laughing stock in this whole Saga but never known to remain quiet and give up without a fight.

We can expect Amazon to play its card in the days to come.

IS THIS END OF THE ROAD FOR FUTURE GROUP

Against this backdrop, they were also apparently not convinced about how their debt repayments would be addressed.

So, earlier this week, even as shareholders, as well as unsecured creditors, approved the Future-Reliance deal in separate meetings held in compliance with directions from the National Company Law Tribunal, the secured creditors rejected the deal.

As per disclosures from Future Retail, 85.94 percent of the shareholders approved the deal. Unsecured creditors too supported the deal, with 78.22 percent voting in favor. But, secured creditors rejected the deal, with 69.29 percent voting against it. That essentially sealed the fate of the deal.

With the deal with Reliance Retail now off the table, the possibility of insolvency proceedings now looms large for Future Retail, with banks now expected to seek a resolution plan under the Insolvency and Bankruptcy Code.

May 2022 / Indianretailer.com / 37

Brand Connect

L

actalis India introduced a new brand President in 2017. Within a year, the brand had reached around 4,000 institutional customers across India. It also expanded its reach at modern stores and HoReCa in all metro cities.

Looking at the popularity of the brand, President Cheese was launched in 2020.

At present, the brand offers President Butter Salted and Unsalted Consumer pack, President Butter Salted and Unsalted Institution pack, President Cheese HoReCa pack –Mozzarella, Cheddar, Mozzarella and Cheddar Blend, Hard Cheese Block, Soft Cheese Block, and Filler Cheese.

The brand, which is planning to launch President Cheese Consumer Pack in slices and cubes soon, is known for offering premium products and is available at major organized retailers as well as online platforms.

Currently, Lactalis India operates three organisations: Tirumala Milk, Prabhat Dairy, and Anik Dairy.

Highlighting the USP of the brand, Rahul Kumar, MD, Lactalis India said, “We provide the assurance of offering the same taste and quality of global President butter. Our butter has a rich texture and tastes like homemade butter and has an aroma of pure cow milk. To retain the aroma and quality, it is packaged in a unique foil packing and it is the best choice for croissants, brownies, and cookies.”

INNOVATION: THE GAME CHANGER

President sells products in over 180 countries and has 229 production sites across the globe. Being in a commodity and dairy market, it ensures

38 / Indianretailer.com / May 2022

TEXTURING THE

INNOVATION

The brand has a presence across all major cosmopolitan and metropolitan cities.

It is available across general and modern trade stores.

We grew at a CAGR around 86 percent during 2017 -2021. Going ahead, we are expanding our supply network to tier-II cities along with focusing on placing our Butter Chiplets in IRCTC and all major airlines.”

Rahul Kumar, MD, Lactalis India

that its products are not only the healthiest and tastiest but also affordable for one and all.

“Quality is not something we strive for, it’s something we guarantee with consistency. All our plants have FSSAI licenses certifying a commitment to food safety and dependability. President Butter is a cultured butter, which is made unlike the same as butter is churned at home by our mother and grandmothers,” he asserted.

“With the help of technology, we will soon be introducing more innovative products and we are also leveraging various e-commerce platforms to reach consumers,” he further added.

FUTURE PLANS

The brand has a presence across all major cosmopolitan and metropolitan cities. It is available at Reliance Retail, Jiomart, BigBasket, Amazon, Flipkart, Spar, etc.

“We grew at a CAGR around 86 percent during 2017-2021. Going ahead, we are expanding our supply network to tier-II cities along with focusing on placing our utter Chiplets in IRCTC and all major airlines. We are also exploring all B2B consumers and expanding our B2C businesses with the addition of new consumer packs,” he concluded.

Brand Connect

PACKING THE NUTRIENTS IN A BOTTLE

NuTaste introduced Good+Moore in June 2020 i.e. during the first wave of the Covid pandemic to offer consumers innovative tastes that they would normally experience in popular cafes, bars, and restaurants.

T

he brand offers delectable condiments that help create drinks and foods that consumers would routinely only experience in popular cafes, bars, and restaurants and now they can enjoy them in the comfort of their homes. For calorie and sugar-conscious consumers, the brand also offers a variant that is either low-calorie or sugar-free.

“Our condiment product portfolio spans across beverages, desserts, and popular comfort food allowing the consumers to enjoy a flavored coffee or a frappuccino or a refreshing drink some of which have brought back nostalgic tastes or a dessert or heighten the taste of a pancake or a waffle - we have all of them covered.

In 2020, we launched 20

40 / Indianretailer.com / May 2022

SKUs and now have more than 60 SKUs,” asserted Manu Bajaj, Founder & CEO, NuTaste Group.

The brand believes in nutritious eating and wants to edge out the general notion of processed junk that has been fed onto us to which we have become

accustomed. Good+Moore products come with nutrients in a bottle, perfect for a healthy consumption without compromising on taste.

“We want to promote a better life for the people and altogether a healthy lifestyle.

To make our products savory we study global trends to learn what people are craving, and then we use our quality process to capture the quintessence of that flavor in a bottle,” he further added.

We want to promote a better life for the people and altogether a healthy lifestyle. We study global trends on what people are craving and then use our quality process to capture the quintessence of that flavor.”

Manu Bajaj, Founder & CEO, NuTaste

RETAIL STRATEGY

For a little over a year, it has been a digital-first brand, however, now it is expanding its physical footprint and making it available at premium general trade and modern trade stores.

“We are available across the country through our D2C platform and also through all the popular e-commerce platforms. We have recently started offering our products in all the top metros at popular modern trade and premium general trade stores,” stated Bajaj.

FUTURE PLANS

The brand will continue adding more innovative products bringing delectable taste to its consumers while offering some guilt-free options for health-conscious consumers.

Brand Connect

Ensuring Authentic Taste WITH NUTRITION TO MAKE YOU HEALTHY

With strong customer loyalty and their demands, the brand is now expanding its footprint across India

F

or 85 glorious years, RENTIO has been a household name across Gujarat. The one reason that sets it apart from the rest of the brands is that it has successfully maintained the natural nutritional value of pulses and grains with its unique dry process which ensures exceptional quality and aroma. And so, RENTIO has been accoladed as the Brand of the Year 2020, 2021, and 2022 by the Government of Gujarat in many business forums. With strong customer loyalty and their demands, the brand is now expanding its footprint across India.

Since women today have to juggle their life between work, shopping, cooking, and taking care of their families, RENTIO decided to launch a new range of ready-to-cook products to make their life easier. In today’s fast life, wherein, we have moved from authentic breakfast and meals to fast food which is a cause of major health hazards, RENTIO has taken a cue and ensured a product range that gives the mouth-watering taste and also ensures the body gets the required nourishment. “‘Heat-n-Eat’ is the keyword of today’s world, we need food that is super-fast to make and at the same time, it should also satisfy our taste buds. RENTIO launched the Heat-n-Eat segment with a range of 16 unique products that are organically consumed and are a part of 42 / Indianretailer.com / May 2022

PRODUCT PORTFOLIO

The science behind Heat-n-Eat is established out of 5 years of practical research on the eating habits of Indians, especially, bachelors, college students, and working men and women.”

Sheetal Chokhawala Wani, CEO, RENTIO Foods

our daily diets. These varied tastes will give the consumer the real efficacy required to celebrate their food along with the required shot of nutrition,” stated Sheetal Chokhawala Wani, CEO, RENTIO Foods.

OFFERING THE BEST QUALITY PRODUCTS

RENTIO has a nocompromise policy as one of the core values of the company, this makes the product distinctly positioned.

“The science behind Heatn-Eat is established out of 5 years of practical research on

the eating habits of Indians, especially, bachelors, college students, and working men and women. Made from 100 percent natural ingredients Heat-n-Eat is all set to change the way meals are consumed in India,”’ she asserted.

The Heat-n-Eat range offers options like Misal, Chhole, Dal Tadka, Dal Makhani, Ragada, Pav Bhaji, Gujarati Dal, Paneer Lawabdar, Shahi Khichdi, along with Pizza Pasta Sauce, Red Gravy, and Yellow Gravy.

“RENTIO also offers a Jain exclusive range like Jain Chhole, Jain Pav Bhaji, and Jain Dal Makhani.

The uniqueness is in the process of making as these are distinctly dealt with and made in a totally different setup. ,” she said.

All products are readily available on various platforms like Amazon, Flipkart, Bigbasket, blinkit along with the brand’s own D2C website.

FUTURE PLANS

The brand will soon be launching yellow and red gravies and in future it is planning to launch white gravy, Rajma, Chhole and Biryani gravy.

Apart from this, the brand is also planning to launch soaked beans, and it will covert cooking time to just 10 minutes instead of a whole day of preparation time.

Brand Connect

ADDING SPICE TO YOUR LIFE

The company, which has been growing 30-40 percent year on year, always focuses on providing the best-in-class due to which it has earned a huge clientèle. It has also digitized the business processes, uses the latest machinery, and has a full-fledged and highly equipped laboratory to offer unmatched quality.

S

hubh Food Industries Private Limited was established in 1998.

It is a renowned company known for manufacturing, importing, supplying, trading, and exporting a quality-approved range of Hing Powder, Pure Raw Hing, Kabuli Hing, Irani Hing, and Asafoetida powder.

The entire range of products is hygienically processed by its highly experienced team of professionals by making use of quality-approved ingredients and cutting-edge technology.

“All our products are developed under the supervision of our talented quality experts as per the international quality norms and standards. Owing to our experienced R&D

44 / Indianretailer.com / May 2022

department, good financial position and TQM, large product line, large production capacity, and customized

solutions, we have been able to create a special niche in the market,” asserted Gaurav Gambhir, MD, Shubh Food Industries Pvt Ltd. “Currently, we are B2B and modern trade supplier for Asafoetida, blended spices and seasoning. Going forward, we are looking at introducing innovative and fusion concepts of world/ Indian Masala products,” he further added.

Going forward, we are looking at introducing innovative and fusion concepts of world/Indian Masala products Gaurav Gambhir, MD, Shubh Food Industries

The company has digitized the business processes, uses the latest machinery, and has a full-fledged and highly equipped laboratory to offer unmatched quality.

FUTURE PLANS

The company is a wellknown name in the B2B, modern trade, and private label categories. It is a major supplier for most of the B2B/ HoReCa industry.

The company, which has been growing 30-40 percent year on year, always focuses on providing the best-in-class due to which it has earned a huge clientèle.

Owing to its fair business dealings and customercentric approach, it also exports its products to various countries such as Australia/NZ, Indian Subcontinent, East/Middle Africa, North Africa, South/ West Africa, East Europe, East Asia, Central America, North Europe, Middle East, South America, South/West Europe, South East Asia, and North America.

“We are also venturing into new areas of spice application like cosmetics, pharmacy, farming, etc,” he concluded.

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New Commerce E- C O M M E RC E

D2C

SO C I A L C O M M E RC E

V I D EO C O M M E RC E

E X P LO R I N G T H E WO R L D O F

M E TAV E R S E Retailers are setting up stores in Metaverse to interact with young consumers virtually and to win their loyalty

ONLINE GROCE RY GMV IS

BY 202 5, S O CIA L

V I D EO C OMMERC E

BY 2025, QU I C K C OMMERC E

ONLY AROUND

C O M M E RCE TO GR A B

SHOP P ERS C OU LD TOU C H

SECTOR I S E XP ECTED TO G ROW BY

L E D BY BIGBASK E T

OF E-COMMERCE MARKET

BY T HE EN D O F 2022

AND BECOME A $5 BN INDUSTRY

$ 2 bn,

46 / Indianretailer.com / May 2022

5%

216 mn

10 -15 TIMES

A BRAND NEEDS

THE GMV OF LIVE C O M M E RCE

S O CIA L C OMMERC E MARKE T I S

T H ROUG H SHORT VIDEO S WO UL D TO UCH

E X PE CT ED TO G ROW AT A CAG R OF

IN IN DIA BY 2 02 5

FRO M 202 1 TO 2025

$ 5 bn

59 %

Every single gram of meat that’s sold on Licious platform is sourced, manufactured and quality checked and delivered

by Licious. This was imperative because this is what the consumers deserve in the context of the category as the problem in the category was that of inconsistency and nonstandardization.

How do you solve that? What is a brand? The one that offers a consistent and reliable experience repeatedly. You aren’t a brand if you don’t control that.

Abhay Hanjura, Co-Founder, Licious May 2022 / Indianretailer.com / 47

Source: Various Reports

CONSISTENCY & STANDARDIZATION

N E W C O M M E RC E

HOW QUICK COMMERCE IS RESHAPING

The Consumer Behaviour in India

The rapid digital adoption has augmented the growth of the e-commerce industry in the past few years. While the Covid-19 pandemic became the primary reason for the downfall of many industries, it served as a boon for the e-commerce industry, boosting its growth at a breakneck speed.

BY M A N I S H A B H AT I A

48 / Indianretailer.com / May 2022

T

he recent years have seen a massive change in the purchasing habits of consumers, especially with respect to switching to online shopping.

Essential commodities such as medicines, milk, and staples which consumers usually preferred to purchase offline were also bought online without any hesitation.

This rapidly changing consumer behavior has fuelled competition amongst the retail giants besides boosting their profits by leaps and bounds.

Let’s look at the few trends which will play a pivotal role in driving this trend in the next few years.

DIGITAL SHOPPING EXPERIENCE OF THE NEW-AGE SHOPPERS

The changing shift in consumer shopping behavior was quickly adopted by the young and middle-aged population. This shift has not only enhanced customers’ experience

but has also increased their expectations from the brands for providing them a quick, smooth, and innovative online shopping experience. As per the Shopify Future of Commerce Report (India) around 85 percent of the consumers between the age group of 18-34 years, 90 percent of the middle-aged consumers between the age group of 36-45 years have shifted to online shopping during the unprecedented times of Covid-19.

The pandemic has fuelled the steep demand for expedited hyperlocal delivery options with

66%

of the consumers ready to pay for fast shipping service

EFFICIENT CUSTOMER SERVICE

Great customer service will be instrumental in driving the customers to a particular online brand for purchase.

This will include free shipping, fast and safe delivery, convenient and easy return process, easy pick-up options, and expedited refund options. Earlier e-commerce was offering expedited shipping and free delivery only on the selected product segments. However, the pandemic has fuelled the steep demand for expedited hyperlocal delivery options for product segments such as household items, medicines, health, and groceries with 66 percent of the consumers ready to pay for fast shipping service (as per the Pitney BOX poll). Also, safety being one of the major concerns, brands have been providing multiple offers to encourage customers for using digital payment modes, no signature or physical contact during the delivery of products.

CHANGING DYNAMICS OF CONSUMER BEHAVIOR

Consumers these days are looking for convenience besides safe and quick deliveries. They are even browsing and purchasing products which they used to rarely purchase online before. A study reveals that around 60 percent of the customers from the 75 percent who said they will try different online brands during the lockdown restriction are likely to continue even after the restriction has been lifted. To maintain this shift in loyalty, brands will have to focus on strengthening customer

relationships by providing efficient customer service, good quality products, and a seamless digital experience.

Bijou Kurien, Chairman, Retailers Association of India (RAI) said, “Retailers have started adapting to the changing consumer and unlocked new ways of reaching them and building demand for new product categories. By actively collaborating with technology, payment, and logistics partners, retailers have expanded their reach tremendously.

A new era of retail is dawning on us, and retailers are getting prepared for it.”

RAPID ADOPTION OF DIGITAL PAYMENTS

Pandemic has not only transformed the way people shop, but it has also changed their payment habits as it provides a safe, quick, and hassle-free payment experience to consumers. While consumers have rapidly adopted digital mode of payments at the e-commerce

stores, this shift is even evident at retail stores. The retail industry believes this behavioral change will persist even postpandemic. To maintain the same, the e-commerce industry is integrating the latest technology into operations to stay abreast of competitors.

Adoption of technology such as AI/ML for route optimization will lead to expedited delivery, warehouse optimization, and personalized experience which will help companies in catering to the changing consumer behavior.

INCREASING CUSTOMER ACQUISITION COSTS

The growing Quick Commerce industry has intensified the competition hence increasing the cost of digital marketing to acquire a new customer base and retain the old ones. In generic terms, brands are following customers through advertisements on different mediums with pandemics adding fuel to the fire. Brands are even trying newer channels such as connected TV and messaging apps, voice shopping, and influencer marketing. Popular social media platforms with a strong customer base are also becoming increasingly competitive by pushing brands to establish customer relationships on various channels thereby increasing customer acquisition costs.

Moving forward, brands will need to continuously improvise their operations and invest in omnichannel strategies focused on offering relevant and quick solutions to the customers. This will help them in compensating for their lost-in-store revenue as well as create a robust customer pipeline for future purchases. The changing consumer habits in the rapidly expanding Quick Commerce industry is an excellent opportunity for brands to create a strong foothold of their business in the market and future proof their business against uncertainties. A RedSeer survey found that less than 10 percent of riders see it as a longterm career opportunity. Still, this business model will boom, reaching $5 billion by 2025.

May 2022 / Indianretailer.com / 49

N E W C O M M E RC E

HOW METAVERSE

WILL REVOLUTIONIZE THE RETAIL INDUSTRY?

Today the retail industry is at the cusp of technological disruption. Metaverse is expected to drive this revolution by changing the way customers shop and interact with brands.

BY M A N I S H A B H AT I A

A

lthough Metaverse made a noise only after the major rebranding decision by Facebook, it has been existing in the virtual world of the video gaming industry for many years. Games such as Sandbox, Roblox, Axie Infinity have been upgrading their Metaverse-like platforms for the past 16 years. Players can customize their online avatars and can make in-game purchases 50 / Indianretailer.com / May 2022

for further personalizing their avatars and participation in the games. Similarly, brands from different industries are also upgrading their operations and strategies on establishing a stronger virtual presence and creating all-immersive digital experiences for customers.

They are considering Metaverse as the potential game-changer of the retail industry. Recently, Walmart’s trademark applications reflected the company’s

preparations in creating its cryptocurrency and NFTs focussed on selling electronic items, appliances, home décor, and toys to the consumers virtually.

Research reveals that around 77 percent of customers only just ‘add to cart’ while browsing their websites and don’t complete the purchases. Metaverse can play a crucial role in resolving this issue by improving customers’ experience. For the Metaverse experience, consumers will require Metaverse accessible gadgets such as VR headsets, motion sensors, and motion gloves. Looking at the future demand, they shall soon become affordable for average customers, and they can shop from brands virtually as though they are shopping from offline stores.

Metaverse will provide a better shopping experience for customers by offering visualization and a better engaging experience which was missing before at the virtual stores. 3D virtual stores have evolved a long way since the first store launched by eBay in 2016.

Customers can explore various tailormade features available at the websites of retail brands and try out various options.

Additionally, it is convenient, time-saving, and offers faster personalization as compared to offline stores.

In early 2022, H&M held an event to announce the opening of their new H&M Innovation Circular Design Story Collection where attendees could experience the Metaverse technology by creating their digital avatar and participating in a virtual parade of their avatars as protagonists. How H&M did do this? Well, the popular retail chain recreated one of its flagship stores including promotional posters and messages just like any of its offline stores.

The garments were available in a digital mode which users can try on their digital avatars and acquire through NFT assets.

However, H&M is still working with the Swedish company to materialize this virtual concept into reality for customers.

Many other global brands such as Nike, Adidas, Gucci, Ralph Lauren have also jumped into the bandwagon of offering digital clothing in the Metaverse mode.

The boom of cryptocurrencies, blockchain (its fundamental technology) will be instrumental in driving the

HOW RETAIL BRANDS ARE INTEGRATING METAVERSE TECHNOLOGY

Let’s have a look at the various brands that are changing the game in the retail industry by integrating Metaverse technology in their retail operations.

H&M - The brand has recreated 11 pieces from its vegan Co-Exist Story collection in virtual form to showcase at the in-game fashion show. The entire show is designed to reflect the vegan values of the brand including collection, promoting vegan food, banning fishing and hunting at the retailers’ Loop Island remodelled by the brand. Additionally, gamers can also download the collection from the Able Sisters Shop to try them on their digital avatars.

Gucci - One of the world’s renowned retail brands Gucci has collaborated with the virtual creator on Supergucci and bought a plot on the virtual real estate platform, The Sandbox for including its every Metaverse project under the brand Gucci Vault concept.

Roblox - One of the most popular gaming platforms Roblox has witnessed the majority of collaborations in the fashion world.

Nike collaborated with Oblox for creating a free virtual playspace known as Nikeland. Similarly, Gucci developed the Gucci Garden for selling limitededition digital clothing and Vans joined hands with the gaming major for developing an interactive store that offers the facility of customizing

sneakers and attending virtual concerts to its online customers.

Dyson - The brand has developed an advanced virtual reality technology known as Dubbed Demo VR that enables customers to test its products such as Airwrap styler and hairdryer using

Fortnite - Another gaming major has introduced a platform for hosting in-game concerts for artists such as Marshmello and Ariana Grande. It will allow user interaction while they are listening to the show during the game. Moving further, Fortnite is extending its metaverse plan with the Party Worlds and new 3D spaces created for players to socialize with friends.

77

15-20

of customers only just ‘add to cart’ while browsing their websites and don’t complete the purchases.

cryptocurrency users in India hold around USD 0.9 billion (INR 6.6 Billion) worth crypto assets.

PERCENT

The British Fashion Council (BFC) BFC collaborated with Roblox to design its first-ever Fashion Award for Metaverse design and awarded its first winner, cSapphire in a virtual ceremony by the digital avatar of Gucci’s Alessandro Michele.

MILLION

Oculus headset from the comfort of their own home.

Nike - Nike quietly joined the Metaverse bandwagon a few years ago. It kickstarted by patenting various trademarks and later partnering with the gaming platform Roblox on Nikeland, designed after Nike’s real-life headquarters in Beaverton, Oregon. It has already filed for seven patents to protect its trademarks to download virtual goods.

Nikeland is a virtual free-to-play platform for games such as dodgeball and floor-is-lava. Nike sold out virtual shoes worth 3.5 million euros in just 5 minutes at a metaverse-enabled platform proving metaverse will be a big gamechanger for the retail industry by 2025.

Nike sold out virtual shoes worth

3.5 million euros in just 5 minutes at a metaverse-enabled platform proving metaverse will be a big gamechanger for the retail industry in 2025

FUTURE AHEAD

Microsoft, Meta’s major rival is also investing in immersive spaces with a focus on redefining workspace.

The company recently launched Mesh for Microsoft Teams, a feature allowing people from different locations to join for collaborative holographic experiences. Users can create their customized digital avatar and create immersive spaces for meetings and collaboration through Mesh at MS Teams.

Moreover, metaverse has become an absolute solution between digital, e-commerce, and real-world empowering people to interact with digital avatars, other people, and trying various brands online.

Currently, Metaverse is being usedby a niche section of customers and is yet unavailable to the masses. To experience Metaverse customers will often require RV headsets and this technology could take another 5 to 10 years to get replicated into reallife making Metaverse mainstream.

However, brands can currently collaborate with different interactive games and utilize their avatars or develop their virtual worlds.

Source: Various Reports

growth of the retail industry by diminishing the line between the virtual and real world. Similarly augmented and virtual reality, 3D, and Web 3.0 will also help the customers to experience the real-world experience in the digital world. NFTs (Non-fungible tokens) will augment this growth as they are original, unique, exclusive, and irreplicable digital files that are encrypted in the blockchain and hence can be resold or relocated virtually.

May 2022 / Indianretailer.com / 51

N E W C O M M E RC E

what customers we wanted to target, and what the brand positioning was to look like. We wanted to position Wakao Foods as a premium category brand and tap the newly converted vegan consumer audience, along with changing perceptions of the vegetarian audience.”

WHY D2C?

HOW WAKAO FOODS IS PLANNING TO

REVOLUTIONIZE THE INDIAN READY-TO-EAT INDUSTRY

Every time consumers buy something from Wakao, 1 percent of the sales proceeds go to local farmers around India who are working to feed our country.

R

eady-to-eat food products witnessed an immense surge in demand during the pandemic.

With countries on lockdown and most people working from home, ready-to-cook food products were flying off the shelves over the last few months.

In fact, according to research by Mordor Intelligence, “The global ready-to-eat food market is projected to register a CAGR of 4.89 percent, during the forecast period of 2022-2027.”

But for choosing the right brand, today’s consumer is more tilted towards the taste, flavor, convenience, nutritional value, etc. Health being the bigger concern for today’s progressive consumer makes the process of finding healthy ready-to-eat food more complex. Setting aside all the confusion in the industry, launched in 2020, Wakao Foods made it quite easier for the consumers who want to have the comfort of ready-to-eat food, but in a healthy and nutritional way, by relying upon jackfruit, interestingly.

Sairaj Dhond, Founder and CEO, Wakao Foods shared, “The food start-up 52 / Indianretailer.com / May 2022

BY R I S H A B H S H A R M A

space always excited me and the lockdown gave me the perfect opportunity to delve deeper into it. That’s when I came across this article which said ‘Jackfruit is the superfood of the world’. Its nutritional value and meaty texture literally blew me away. I realized that we were literally sitting on a huge opportunity.”

RETAIL AND MARKETING STRATEGY

Wakao Foods knew that they have a product that is new to the industry. In fact, it is as good as a category creation and once you have a ready product in hand, the next thing to do is to reach out to consumers and educate them first about what is the product.

On the retail and marketing front, Dhond said, “From our pricing strategy to combos, selecting the target market to be very specific on the communication front on how to run ads, all checkpoints were pre-decided. We were very sure about

Going D2C (direct-to-consumer) lets a brand interact with the customers directly and gather that data to generate actionable insights. Most importantly, the direct and authentic engagement with customers often lets the brand know the ‘why’ behind each action of the consumer, and that helps the brand gain a better understanding.

“Expanding via D2C is our primary focus as it’s the next big thing in the world.

We are seeing a lot of people who are really excited about these new things that are coming up. Wakao is aiming to create offline properties in the future, India’s top D2C and e-commerce players, and many more. As far as the export markets are concerned, they are mature markets already and have been waiting for a product like ours,” Dhond asserted.

FUTURE PLANS

On the expansion front, Dhond shared, “We want to build a very robust distribution network across India. We would have our distributors in most of the major cities across the country so that we can reach out to more and more people, retail outlets, and modern trade outlets. The HoReCa segment is really very big, they need a product like Wakao and our aim is to reach each one of them.

Currently, we are supplying pan India, to a lot of chains, hotels, and restaurants from Goa but we want to centralize it and have more teams across the country.

We are also thinking on the line of QSR service, which we probably may launch sometime later but it’s something that is there in our expansion plan.”

Wakao received funding of Rs 75 lakh Rs for 21 percent equity from SUGAR Cosmetics, MamaEarth, and Emcure Pharmaceuticals in the 1st edition of Shark Tank India, and the brand is exploring more options to raise funds and might close something very soon.

Franchise Partners Invited

the conscious choice

HONG KONG’S PREMIER ORGANIC FOOD RETAIL CHAIN & CAFÉ OPENING SOON IN HYDERABAD

ABOUT SPICEBOX ORGANICS SpiceBox Organics is a boutique organic food store and café certified by USDA National Organic Program, and a socially conscious company that specializes in the sourcing and distribution of high-quality food that is healthy, environmentally friendly and tasty. SpiceBox Organics offers over 1000+ products, freshly prepared grab-and-go meals, and full-service café counters. Known as Hong Kong’s one-stop-shop for all organic pantry needs and more, the company’s mission “the conscious choice” aims to inspire and educate the local community on making better food choices.

BRAND USP 1000+ USDA Certified Organic Products

One-stop-shop for all pantry needs

Environment friendly & high-quality ingredients

Supports ethical, sustainable & fair-trade business practices

Serves snacks & grab-and-go meals for healthconscious consumers

Won the prestigious Business of The Year Award 2020 by Food Made Good HK

FRANCHISE FACT Investment: INR 60 Lacs onwards

Area Required: 1000 sq.ft. onwards

For more details and franchise queries, please contact at ceo@franglobal.com or +91 98101 84898

Expansion: Metro Cities across India

Brought to you by

N E W C O M M E RC E

MYNTRA’S NEW COMMERCE

MANTRA

Riding on the e-commerce boom in the last two years, fashion and lifestyle marketplace Myntra has been working towards bringing a revolution in the world of fashion, particularly, by democratizing fashion (making a wide range of fashion accessible to the masses).

BY N AV N E E L A LVA R E Z

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Nandita Sinha CEO of Myntra

54 / Indianretailer.com / May 2022

his democratization would not have been possible without a clearly laid out strategy and, equally important is the role of new commerce tools.

Nandita Sinha, who took over the position of CEO of Myntra in January 2022, while sharing the core business strategies of the brand, said, “First and foremost, it is important to become accessible. India is a country that still has some distance to go in terms of penetration and availability of brands versus the size of the market that is available.” The brand has been doing this by providing a wide option of global brands, Indian D2C brands, and brands that have been part of the ecosystem for so many years to Indian consumers.

“The second important aspect is technology, which is at the heart of everything we do. If I were to summarize Myntra in two phrases: ‘Passion for Fashion’ and ‘Passion for Technology’. Therefore everything that we do across the value chain right from the first experience of the customer to the post-purchase experience and how brands and partners are enabled is done through technology,” she further added. Technology is indeed the backbone for the success of any brand.

“Third, is the partner ecosystem. As we move ahead in our journey, one of the big things that we have realized is that we need to enable the partner ecosystem around us. How we build a partner ecosystem using technology is the third pillar we are working upon. Fourth is sustainability and a lot of initiatives

have been taken in this direction like using 100 percent paper packaging for all our deliveries. Apart from this, going ahead, we will continue to invest in building the team as well as the leadership,” she asserted.

BETTING BIG ON TECHNOLOGY

There is no denying that technology is one of the most critical factors determining the success of any brand. For example, according to a McKinsey report, “It is imperative to invest ahead and build the required resources, including people and technology, to a greater extent than usual; strategic choices should lean towards e-commerce. A successful e-commerce business requires the right resources and technology in place to operate at scale.” While sharing how Myntra is investing in technology, Sinha stated, “Right technology is at the heart of whatever we do and this differentiates us from all of our competitors and even in the mind of the customers. If you look at the upwardly mobile Indian customers, for them Myntra is a platform of choice, and a lot of is driven by differentiation that we have been able to create through technology.”

The company has adopted this ‘technology differentiation’ not only in any particular segment but across the value chain. So whether it is about providing hyper-personalized immersive experiences for discovery or about personalization across the customer journey, the brand is betting big on technology at all levels.

LIVE COMMERCE AND SOCIAL COMMERCE: THE EMERGING AVENUES

If we look at consumer behavior, various reports suggest that in the online ecosystem, Live Commerce and Social Commerce have been becoming a popular choices among consumers.

The pandemic has further given a push to this trend as the average number of hours spent on screen by consumers has invariably increased, particularly among millennials and Gen-Zs. Thus, brands are leaving no stone unturned to cash upon this opportunity. They are banking upon influencer marketing heavily to reach these millennials.

“If you look at Live Commerce and Social Commerce, these are really the opportunities of the future in the sense

Right technology is at the heart of whatever we do and this differentiates

us from our competitors and even in the mind of the customers. A successful

e-commerce business requires right resources and technology in place to operate at scale India’s Live Commerce to become ~$4-5 billion GMV by 2025 Live commerce GMV - split by type of platform, In USD Bn, 2025 $4-5 Bn

$~2 Bn

$2.5-3 Bn

60-70% $2.5-3 Bn

30-40%

Total live commerce

Via eCommerce platform

Via Shortform platform

Myntra's Beauty & Personal Care (BPC) to generate

$1+ Bn

GMV in 2025 from shortform live commerce that if you look at the Gen-Z today and if you look at the audience today, they are really looking at Social Commerce and Live Commerce, as a very natural way of discovering as well as interacting with these influencers who are very relatable to them as they talk in their lingo,” stated Sinha.

“And this is where Myntra took the first step of being a commerce platform by taking a leap by enabling the contentto-commerce journey. So if you look at Social Commerce today, we have been

100%

Fashion & Others

BPC

Shortform live commerce GMV

able to create a platform where the customers are not only exposed to brands’ stories but also understand influencer-led discovery where they are able to see styles, trends, and all of these coming together with a very robust ecosystem of the influencers,” she further added.

OPPORTUNITIES GALORE IN THE BEAUTY SPACE

One of the rapidly growing sectors, the beauty industry is set to grow from a mere $11 billion in 2017 to close $30 billion by 2025. Hence, for brands present in this category, there is a lot of potential going forward provided the right strategies are put in place at the right time.

“We have grown around 2.5 times in the beauty business in 2021 and a lot of that growth has actually not just come from the metro and Tier-I cities but also from Tier-II and Tier-III cities,” she concluded.

May 2022 / Indianretailer.com / 55

N E W C O M M E RC E

DELIVERY THROUGH

DISCOVERY

Smytten is an online platform for premium product discovery and trial where consumers can try products from more than 800 brands across lifestyle categories. One of the biggest drivers of purchase decisions has always been a customer’s experience of the product through sampling.

BY C H A RU L A M BA

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he brand stands for the spirit of discovery and unlike other online commerce platforms, it focuses more on the prepurchase experience of online shoppers, helping them to first try the product in the comfort of their homes with its unique try-buy-try model.

Swagat Sarangi and Siddhartha Nangia started Smytten in late 2015 with the idea of solving all the problems that existed in the area of product trials in India – something they had firsthand knowledge of through their stint at HUL, and for Sarangi through his subsequent stint at Google India, where he was closely involved with the great online shopping festival initiative.

Explaining the brand, Swagat Sarangi, Co-founder, Smytten states, “Smytten is a sampling and engagement platform for D2C brands which enables online shoppers to try products before they buy. With the pre-purchase engagement strategy, Smytten is offering better ROI than traditional sampling or digital advertising for many premium/ homegrown brands in the country.”

“Smytten helps solve this for brands, by bringing in the efficiency of microtargeting of a segment. For example, if

THERE ARE FIVE BIG REASONS A BRAND INVESTS IN SAMPLING:

01

New product development – to test the efficacy of it;

02

Feedback from users in improving product experience;

Swagat Sarangi, Co-founder, Smytten

56 / Indianretailer.com / May 2022

03 04 05

To capture market share;

To drive recall; and

For deeper consumer insights involving competition benchmarking.

a skincare brand is only interested in targeting women in their 20s – the products would be shown only to that demographic,” he further adds.

PRODUCT SAMPLING: THE NEED OF THE HOUR

For years, product sampling and trials have been a tried-and-tested method of getting people to notice a product from any brand. It is a marketing strategy that helps brands create awareness about themselves and it gives consumers a chance to experience, taste, smell, or feel the product. In any offline sampling activation, pilferage can be as high as 70 -80 percent.

“Smytten is the first platform globally, which provides complete data/ AI-driven solutions to brands in terms of their targeting, feedback, and engagement with their potential consumers in the digital space,” asserts Sarangi.

“Today for a new brand, if it wants to sell X product, their typical acquisition cost will be X to 1.2X. For e.g., if the product cost is ` 700, the cost of consumer acquisition will be around ` 700 to ` 1,000. With the majority of the sampling activations on Smytten, the brands have seen a double-digit conversion. That means every 10 people trying the products, one person is buying on the platform. Also, if one or two in ten are converting, the consumer acquisition cost from a regular direct consumer acquisition or through digital is actually three times lesser. That is where brands see the value,” he further adds.

EMPOWERING D2C BRANDS

Smytten hosts over 800 brands in the lifestyle space and is always looking at bringing in new discoveries for its consumers.

“With the advent of social media, there are many brands created on the digital ecosystem. However, for many of these brands, it is difficult to reach out to consumers in person and help them sample their products. One of the biggest drivers of purchase decisions has always been a customer’s experience of the product through sampling. Sampling

800

52

TECHNOLOGY: THE GAME-CHANGER

Smytten has pioneered the concept of ‘72 Hours BRANDS PERCENT Research’ for brands in the lifestyle space of D2C startups where brands can have been hosted by consider native do product testing, Smytten and has over website/app concept testing, 10 lifestyle categories on as primary sales usage studies in just the platform. channel 72 hours engaging with more than 10,000 users. and trial have been a tried-and-tested “Smytten is a true innovation in method for brands to target consumers the pre-purchase journey between and give them an experience of their brands and consumers bringing in offering. That is where Smytten comes more meaningful engagement and in with its unique discovery and trial efficiencies,” reveals Sarangi. platform,” Sarangi states.

OMNICHANNEL STRATEGY

TARGETING THE RIGHT CONSUMERS

The millennials are aspirational and want to try out different products and experiences that make them look good and feel good. There is a strong FOMO (Fear Of Missing Out) in the segment that drives a lot of content consumption online across shopping, travel, food, entertainment, etc. While they want to try new things they are also valueconscious and seek validation before they open up their wallet.

“Smytten caters to this segment by not only providing them an avenue to experience new and interesting premium lifestyle products through miniature/sample size but also makes it almost free for them through 100 percent cash back when they try things,” he asserts.

Smytten has over 10 lifestyle categories on the platform. The beauty category is the most loved category on the platform.

The business of the brand has more than doubled in 2021 in terms of revenue and user base.

“After 6 years of being a digital-first platform, the next big step would be to build an omnichannel model with offline presence in multiple cities. Instore sampling has been one of the most proven marketing strategies for brands to engage and reach out to consumers.

However, the physical aspect is what makes in-store sampling a difficult practice for the foreseeable future with a plethora of changes in the overall retail environment post-pandemic and the increasing propensity of online buying by consumers,” he concludes.

May 2022 / Indianretailer.com / 57

N E W C O M M E RC E

HONASA CONSUMER

ATTAINS 99.99%+

ORDER FULFILLMENT RATE Honasa Consumer was started with a mission to offer a line of 100 percent toxin-free products for mothers and infants. As the name suggests, the brand strives to provide natural products with magic and a blend of natural ingredients.

CHALLENGES : PROCESS, OPERATIONS & MANAGEMENT

F

ounded by Varun Alagh, Honasa Consumer, the parent company of personal care brands, MamaEarth, The Derma Co, and Aqualogica, was started with a mission to offer a line of 100 percent toxin-free products for mothers and infants. As the name suggests, the brand strives to provide natural products with magic and a blend of natural ingredients.

Since MamaEarth is quite popular among parents in India, there has been a surge in the demand for their products, especially after the pandemic. As the brand observed the rapid hike in the demand, the solution that they were using started to break and resulted in data inconsistencies and operational hassles, which made them search for a platform like Unicommerce where they can manage order and inventory across channels and segregate orders as per the regional locations.

58 / Indianretailer.com / May 2022

·· Unsynchronized inventory operations, and issues in data sanctity and reporting ·· Facing difficulties in managing orders in bulk ·· Difficulty in handling the order returns ·· Unable to create B2B e-invoices as per Govt. regulations ·· Witnessing problems in enabling dynamic QR codes on B2C invoices ·· Having trouble segregating multiple orders city-wise ·· Inconvenience in capturing errors while generating AWB number

“We are excited to partner with Honasa Consumer, they are one of the largest directto-consumer brands in India. They cater to the needs of millennial consumers with an innovative product portfolio. Our supply chain technology supports their operations, and we appreciate the fact that we are able to automate operations for a company like this, which has a huge inventory and a constantly growing business. We believe

that Mamaearth possesses the potential to become a globally renowned brand, and we are happy to work with them and support them in their growth journey,” Kapil Makhija, CEO, Unicommerce.

IMPACT ON THE BUSINESS – THEN AND NOW, HOW THE THINGS CHANGED

After their association with Unicommerce, MamaEarth observed incredible results and a drop in returns by 300 percent. The automation in the e-commerce operations empowers them to sell their products over 6 platforms including, Amazon Flex, Flipkart smart, Magento 2, Tata CliQ, Myntra PPMP, and Unicommerce’s custom channel for B2B order management.

Coming over to the Warehouse management system of Unicommerce, MamaEarth has experienced exponential growth and was able to expand its portfolio while managing 9 warehouses across locations. Furthermore, the centralization of warehouse, inventory, and order operations resulted in an order growth of 144 percent in the short span of 8 months.

CAS E ST U DY

SOLUTIONS PROVIDED BY UNICOMMERCE Centralized System: ·· Complete Automation: One of the most crucial aspects of Unicommerce’s association with MamaEarth was that it centralized the value chain operations and enabled synchronized and automated processes across multiple brands, including MamaEarth, The Derma Co, and Aqualogica.

B2B Enhancements ·· Discount Grouping: Striving to have personalized prices/discounts for different channels/customers, MamaEarth wanted to create discount groups. Unicommerce introduced a feature - discount grouping - through which the same SKUs can be sold to various customers at multiple price ranges. ·· Bulk Orders: MamaEarth didn’t want to enable the automatic inventory allocation option for bulk orders. Unicommerce provided a feature (for B2B orders) through which the brand was able to create orders in bulk by default and prioritize their order fulfillment needs.

The brand named/marked the channel as BULK. While fulfilling bulk orders became easier, MamaEarth processed up to as high as 10,000 items in an order.

Enhanced Compliance with Government Regulations ·· E-invoicing and E-way Bill: MamaEarth was able to follow the e-invoicing compliance by the Indian Govt. through Unicommerce’s unified panel as it enabled them to process B2B transactions via the NIC portal.

Furthermore, Unicommerce also enabled MamaEarth to generate the e-way

bill seamlessly, letting them deliver goods with utmost ease. ·· B2C Invoices: As per the compliance by the Indian Govt., Unicommerce provided the QR code for B2C invoices. With this feature, MamaEarth was able to let the customer scan the QR code and make online payments in case of COD orders.

Returns Management ·· Minimized Returns: Being the most cumbersome task, it was difficult for MamaEarth to manage their order returns. But with Unicommerce’s returns management feature, they enabled 100 percent visibility of stock movement, and a faster inventory turnaround while attaining a drop in returns by 300 percent. ·· Significant Reduction in CustomerInitiated Returns: Moreover, Unicommerce’s robust quality check process minimized any sort of customer-initiated returns.

Order Processing & Logistics Management ·· Filter Feature: As MamaEarth observed a rapid hike in their sales from both tier-I and tier-II cities, it became difficult for them to bifurcate the orders. With Unicommerce’s filter option to filter cities, the brand was able to segregate the orders based on the regions. This enabled the brand to plan its inventory across 9 warehouses, ensuring faster deliveries. ·· Error Log Feature: MamaEarth used to face certain errors while generating AWB numbers with respect to third-party API integration. With Unicommerce’s Error Log Feature, they are able to detect the errors and download the data for reference that mentions where the problem occurred, letting them solve it easily.

Kapil Makhija, CEO, Unicommerce

Our supply chain technology supports their operations, and we

appreciate the fact that we are able to automate operations for a company like this

144 PERCENT

order growth in the short span of 8 months

6

PLATFORMS AUTOMATION

including, Amazon Flex, Flipkart smart, Magento 2, Tata CliQ, Myntra PPMP, and Unicommerce’s custom channel for B2B order management

300 PERCENT

drop in returns

The simple yet robust tech infrastructure of Unicommerce allowed them to handle a live inventory count of 8.7M+ all while increasing their fulfillment rate to more than 99.99 percent, which has assisted the brand to employ result-driven performance. The real-time inventory management and comprehensive automation ensured that the brand was easily able to scale up to achieve 3M+ dispatches per month.

“We believe that technology will continue playing a critical role in our growth journey. Having Unicommerce as our technology partner for our e-commerce order management has been instrumental in building the right efficiencies in our supply chain operations. They have an evolved e-commerce focused supply chain solution and their ability to meet evolving business needs of this space makes us confident of the value that Unicommerce will keep adding in our next phase of growth,” said Avinash Dhagat, Vice President - Operations, Honasa Consumer Pvt. Ltd. May 2022 / Indianretailer.com / 59

M A R K E T T R E N DS

MERGER

BLINKIT TO MERGE WITH ZOMATO IN AN ALL-STOCK DEAL

S

oftBank-backed Quick Commerce start-up Blinkit, earlier known as Grofers, has signed a merger deal with food delivery unicorn Zomato. The deal will value Blinkit between $700-800 million.

Reportedly, it will be an all-stock deal where Blinkit’s investors will gain proportionate shares in Zomato. The deal is likely to be completed in 60 days time. The companies have signed a term sheet about two-three weeks ago and are preparing to file an application with the Competition Commission of India for approval of the transaction.

In August 2021, Zomato had received CCI approval for a $100-million investment for 9.3 percent stake in Blinkit.

“Blinkit is the closest to how we all know the quick commerce business today.

Blinkit pioneered 10-minute grocery delivery in India post our $100 million investment in August 2021. Since then, the platform has scaled rapidly to $450 million annual run rate GMV (January 2022 annualised) and now operates with 400+ dark stores across 20 cities in India.

100 percent of Blinkit’s business now is in quick commerce format with a median delivery time of ~12 minutes. Delightful customer experience is leading to high customer retention, ordering frequency and willingness to pay for the service,” the company said in its Q3 earnings report.

The $700-800 million valuation will strip down the unicorn valuation that the online grocery delivery firm gained last year when it raised capital from Zomato.

Announcing its third quarter earnings last month, the food aggregator said it is aggressively growing quick commerce segment and will invest $400 million over next two years in the category. The company said that the business growth in one of its 62 / Indianretailer.com / May 2022

portfolio companies, Blinkit, is driving this investment confidence. Notably, Deepinder Goyal, Zomato’s Founder and CEO, sold all of his personal shares in Blinkit days before the announcement.

“It reminds us of the food delivery category a few years ago when many platforms competed over a large and growing market but ultimately only the few who delivered exceptional experience to their customers survived. We are becoming increasingly confident in our decision to invest behind market leadership here with healthy unit economics. As a result, we are updating the upper bound of our potential investments in this category to $400 million cash over the next two years,” Zomato said in its release.

In August 2021, Zomato had received CCI approval for a

$100-mn investment for 9.3 percent stake in Blinkit

QUOTES “If you look at Live Commerce and Social Commerce, these are really the opportunities of the future in the sense that if you look at the Gen-Z today and if you look at the audience today, they are really looking at Social Commerce and Live Commerce, as a very natural way of discovering as well as interacting with these influencers who are very relatable to them as they talk in their lingo.”

Nandita Sinha, CEO, Myntra

“After 6 years of being a digital-first platform, the next big step would be to build an omnichannel model with offline presence in multiple cities. In-store sampling has been one of the most proven marketing strategies for brands to engage and reach out to consumers. ” Swagat Sarangi, Co-founder, Smytten

“I think particularly when you have a team that follows you, you need to be optimistic because your energy spreads and your energy is what carries everyone. There is no room for negativity because, at any time, everything can seem wrong. So, bringing positivity is very important.”

Adwaita Nayar, Co-Founder of Nykaa and the current CEO of Nykaa Fashion

EXPANSION

SAMSUNG TO SET UP NEW PLANT IN CHENNAI

S

outh Korean electronics major Samsung is planning to invest Rs 1,588 crore to set up a new compressor manufacturing plant in Sriperumbudur, near Chennai.

The new facility, spread over 22 acres, will have a capacity to produce 8 million compressor units a year, which will be expanded in the future. Compressors produced at the plant will be used in refrigerators that Samsung manufactures in India and will also be exported.

Recently, the company signed a Memorandum of

Understanding (MoU) with the Tamil Nadu government for the new plant, expanding and strengthening the component ecosystem in the state.

Ken Kang, President of Samsung India said that this new compressor manufacturing facility will help Samsung cater to the growing demand for its innovative digital appliances across the country and also drive exports.

UNDER ARMOUR STRENGTHENS DISTRIBUTION IN INDIA WITH UNDERDOG ATHLETICS nderdog Athletics announced that it had been appointed as the exclusive distributor and licensee for the Under Armour brand in India.

Underdog Athletics has ambitious plans to grow the brand in India, expanding reach and presence through Under Armour Brand House stores, an exclusive India webstore, and key e-commerce platforms.

Tushar Goculdas, MD, Underdog Athletics, said, “Under Armour has had a fantastic start in India,

SHREE OPENS FIRST FLAGSHIP STORE IN DELHI NCR

W

DISTRIBUTION

U

EXPANSION

thanks to the love of our consumers and the support of all our business partners.

India presents a large growth opportunity for the Under Armour brand, and we’re excited to help drive this immense potential.

We are committed to further strengthening Under Armour’s position in India as the most loved athletic performance brand creating inspiration through our global and Indian brand ambassadors and delivering premium shopping experiences across retail and digital channels.”

omen’s Indian ethnic wear brand Shree launched its first flagship store at Rajouri Garden, New Delhi, India.

This is its first store launch in 2022. The brand is looking to open 50+ stores in India this year alone. Despite the pandemic, Shree has continued to grow and expand its footprint across India and internationally.

The aesthetically designed store is a visual treat for customers and offers a streamlined and easy shopping experience for customers! Spread across a space of 1500 sq. ft., the storehouses Shree’s latest Spring-Summer 2022

collection, which is inspired by today’s need for multifunctional outfits that can transform into any style anytime. Shree is keeping it simple this season with light and flowy functional outfits that are easy on the skin. Summer fabrics designed with floral prints on pastel colours; intricate embroideries in mustards, reds, and orange; Block prints in Indigo are the go-to styles for the season.

FUNDING

BIGBASKET RAISES RS 1,000 CR

T

ata-owned Innovative Retail Concepts, which runs online grocery platform BigBasket, has received a capital infusion of Rs 1,000 core from holding company Supermarket Grocery Supplies, regulatory filings sourced from business intelligence platform Tofler showed.

The transaction was approved on March 31.

Tata Digital owns an around 64 percent stake in Supermarket Grocery.

Innovative Retail Concepts was made a subsidiary of Supermarket Grocery after Tata Digital acquired the BigBasket operator.

The investment comes at a time when Tata Digital has finally launched its superapp, Tata Neu. BigBasket is one of its key online businesses. Besides the grocery business, BigBasket is providing key logistics infrastructure for e-commerce delivery of other Tata brands too.

May 2022 / Indianretailer.com / 63

M A R K E T T R E N DS

MERGER

LAUNCH

PVR, INOX ANNOUNCE MERGER; COMBINED ENTITY TO BE CALLED PVR INOX LTD

VAN HEUSEN UNVEILS NEW SUB-BRAND ‘FLEX’ IN ACTIVEWEAR SEGMENT

L

eading film exhibition players PVR Ltd and INOX Leisure Ltd have announced a merger deal to create the largest multiplex chain in the country with a network of more than 1,500 screens. The boards of directors of the two companies at their meetings approved an all-stock amalgamation of INOX with PVR. The combined entity will be named PVR INOX Ltd with the branding of existing screens to continue as PVR

and INOX respectively.

New cinemas opened post the merger will be branded as PVR INOX. The announcement comes at a time when the film exhibition industry has been impacted by the COVID-19 pandemic and significant pressures on the theatrical business from the accelerated growth of digital OTT platforms.

PVR Promoters will have a 10.62 percent stake while INOX promoters will have a 16.66 percent stake in the combined entity. When the merger comes into effect, the board of the merged company would be reconstituted with total board strength of 10 members and both the promoter families having equal

V

an Heusen, India’s leading power dressing brand from Aditya Birla Fashion and Retail Ltd (ABFRL), has announced the launch of a new sub-brand ‘Flex’.

Van Heusen Flex is newage clothing crafted for modern-day professionals who seamlessly shift between work and play. The brand has also launched a distinctive campaign ‘fashion meets performance’

to announce its entry into the activewear category.

Targeted at young professionals, the Van Heusen Flex range is designed to look sharp and engineered to provide true freedom of movement and is infused with superb style and comfort. The international brand stands for fashion and functionality, with each item of clothing a perfect blend of comfort and performance.

Van Heusen Flex offers an entire range of t-shirts, jackets, sweatshirts, shorts, and track pants for men. The collection uses anti-microbial technology to keep odor out, easy dry technology with

SUSTAINABILITY ACQUISITION

RELIANCE RETAIL VENTURES LIMITED ACQUIRES 89 PC EQUITY STAKE IN CLOVIA

R

eliance Retail Ventures Limited (RRVL) announced the acquisition of an 89 percent equity stake in Purple Panda Fashions Private Limited, which owns and operates the Clovia business, with an investment of Rs 950 crore through a combination of secondary stake purchase and primary investment.

The founding team and management will own the balance stake in the company.

Launched in 2013 by Pankaj Vermani, Neha Kant, and Suman Choudhary, Clovia is India’s leading bridgeto-premium D2C brand democratizing aspirational innerwear and loungewear for millennial women. It 64 / Indianretailer.com / May 2022

commands a strong customer following in the intimate wear space and is known for its design-led fresh styles and sharply-priced offerings to customers.

Clovia’s offerings include 3,500+ product styles, based on its feedback-led design approach and backed by its proprietary ‘Clovia Curve Fit Test’. Clovia has a strong in-house design process to offer trending designs and innovative styles, while it follows an asset-light

PROCTER AND GAMBLE INDIA BECOMES ‘PLASTIC WASTE NEUTRAL’ COMPANY

P

rocter and Gamble (P&G) India has become plastic waste neutral’ in the past year.

P&G has collected, processed, and recycled over 19,000 MT of post-consumer plastic packaging waste from across the country which is more than the amount of plastic packaging in its products sold in a year. With this announcement, the company is among the first few FMCG companies in India to achieve plastic waste neutrality, P&G said in a statement, The company said it is working with recycling partners across 75 cities in India to collect plastic which is then sent to different

recyclers, waste to energy plants, and cement kilns. In addition to recycling, the company has also made a deliberate effort to reduce the packaging material and in the last 5 years has reduced usage of packaging material by more than 5,000 MT. Madhusudan Gopalan, CEO, P&G Indian SubContinent said, “We are proud of the significant progress we have made on environmental sustainability,

TECHNOLOGY

NFTs

ESTE LAUDER BREAKS INTO THE METAVERSE WITH FREE NFTS

MAHINDRA & MAHINDRA ENTERS NFT SPACE, LAUNCHES TOKENS BASED ON THAR SUV

T

he American make-up and skincare giant Estée Lauder is one of the first brands to confirm its attendance on the first-ever Metaverse Fashion Week in Decentraland. During the metaverse event, Estée Launder plans to giveaway 10,000 free non-fungible tokens (NFTs), which are inspired by one of its popular products, the Advanced Night Repair serum.

The first in history virtual fashion show will be held in Decentraland from March 24 to March 27, 2022.

Decentraland is the first

Ethereum-based metaverse built and owned by its users where players can create an avatar to discover virtual places, and participate in various events.

The prestige beauty brand will reward its customers with 10,000 unique non-fungible tokens (NFTs) during the fashion event. Non-fungible tokens were designed by the virtual creator Alex Box. According to the brand, the lucky ones who receive the NFTs will get a chance to open the bottle and apply the virtual serum, so their avatars will get a ‘glowy and radiant look.’

INVESTMENT

BLUESTONE BAGS $30 MN FROM HERO ENTERPRISE AT $410 MN VALUATION

T

he Ratan Tata-backed omnichannel jewelry retailer BlueStone has raised over $30 million in funding at a valuation of $410 million.

The funding round was led by Sunil Kant Munjal, Chairman, Hero Enterprise.

BlueStone plans to use the funds to step up its manufacturing capabilities.

The company is backed by marquee investors including Ratan Tata, Accel, Kalaari,

Iron Pillar, IvyCap, and Saama Capital. The company will record revenues of Rs 500 crore (a growth of 85 percent over the previous fiscal year) in the fiscal year ending March 2022, besides achieving break-even, it said.

In the next two years, the company is targeting annual revenues of more than Rs 2,000 crore.

It is accelerating a nationwide store rollout. It has a current base of 70 retail stores across India complementing its digital channel. It plans to launch 100 more stores in the next fiscal year, with a cumulative footprint of 300 stores projected by 2024.

M

ahindra and Mahindra (M&M) has become the first Indian automotive OEM to enter the NFT (non-fungible token) space with the release of its first tranche of tokens. NFTs are digital files that serve as digital signatures to certify who owns photos, videos, and other online media. Some of the most valuable NFTs are being sold for millions of dollars at auction houses.

M&M has stated that its entry into the NFT space is yet another testimony of its continued focus on digital initiatives in the country. The first NFT offerings from Mahindra will be based on the Thar SUV and will be released in collaboration with Tech Mahindra.

Commenting on the launch, Veejay Nakra, Chief Executive Officer, Automotive Division, M&M Ltd said, “The launch of

NFTs is another exciting step for us to leverage the next frontier of digital marketing. We will be able to offer a whole new set of experiences to our customers, build communities for our brands, and also increase brand awareness and loyalty.”

“With our entry into the NFT space, we are all set to harness the countless possibilities of interacting and adding to the Mahindra brand and all our nameplates, and there is no better brand for this debut than the Thar,” he added.

EXPANSION services, the company said.

The new fulfillment center FLIPKART STRENGTHENS DISTRIBUTION INFRA IN EAST WITH is spread across almost 1.34 lakh square feet and has a GROWING GROCERY DEMAND

E

-commerce major Flipkart said it has expanded its network of fulfillment centers here as demand for online grocery services grew by a whopping 75 percent since June last year.

The company has launched its third grocery fulfillment center in Amta in West Bengal’s Howrah district to meet the growing demand in the eastern region. Since the launch of its second such facility in Kolkata in June 2021, the demand has increased by a staggering 75 percent for the e-grocery

storage capacity of 22 lakh square feet, it said, adding that the facility has created over 500 direct and indirect job opportunities.

With Flipkart opening its third grocery fulfillment center, the combined area of all facilities becomes 3.8 lakh square feet with more than 2,000 direct and indirect jobs being created in West Bengal, the company said.

May 2022 / Indianretailer.com / 65

B I ZO PS

V

Tushar Ved, CEO, Major Brands

HOW VICTORIA’S SECRET IS PLAYING DIFFERENTLY IN INDIA VICTORIA’S SECRET, THE ICONIC AMERICAN WOMEN’S INNERWEAR BRAND, LAUNCHED THE DIRECT-TO-CONSUMER (D2C) OPERATIONS IN INDIA WITH A WEBSITE

BY C H A RU L A M BA

66 / Indianretailer.com / May 2022

ictoria’s Secret, known for its ‘angels’ walking the ramps around the world, launched its website in India on November 22, 2021. The company has partnered with Mumbai-based Major Brands, its India distributors, and marketers.

Founded in 2001, Major Brands is also responsible for bringing to India brands such as Aldo, La Sensa, Bath and Body Works, Charles & Keith, Beverly Hills Polo Club, Inglot, and Call It Spring.

At present, the brand is offering perfumes and skincare products and it will be adding to its innerwear options from this year.

Tushar Ved, CEO, Major Brands, stated, “Victoria’s Secret is a huge brand in the lingerie, skincare, and perfume categories. We at Major Brands have been working towards getting similar premium brands to the Indian markets for years now. We are planning to bring one to two premium international brands every year to India. After successfully bringing in the likes of Aldo, Bath and Body Works, and the rest, Victoria’s Secret made sense.”

OMNICHANNEL: THE WAY AHEAD

For Major Brands, online has been complementing offline as it has been observed that D2C is not hurting the retail and the company sees it as an additional business to the retail. This new channel has added a lot of new customers who otherwise would have refrained from coming to the stores as the stores are too far for them.

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B I ZO PS

“Pre-Covid, we planned to do 30 percent of our business online, however, accelerated the momentum and we were able to reach these numbers in the first year of the pandemic.

The four years plan got preponed, budgets got preponed and we were able to adapt faster and we saw a big opportunity there. So, both mediums are equally important for us as customers want us to be present online as well as offline,” he asserted.

Major Brands has noticed that the D2C customer is not very different from the retail customer. However, as D2C customer is not visiting the store and not touching the product, they expect the product to reach them faster, packaging needs to be good and customer service up to the mark. “With online

Going ahead, the brands that Major Brands will be introducing in India will have both online and offline presence as we expect 30 percent of the business to come from online and plan to take it to 50 percent business, we have been able to reach customers where we don’t have the stores.

We generally have stores in good shopping malls, however, it is not possible to have quality shopping malls in all the cities, so online helps us reach those consumers,” Ved said.

Major Brands has already launched D2C channels for

Bath and Body Works and Victoria’s Secret. Apart from this, the company is also building an e-commerce site.

“Going ahead, the brands that Major Brands will be introducing in India will have both online and offline presence as we expect 30 percent of the business to come from online and plan to take it to 50 percent,” he stated.

The online channel has helped the company to understand where its customers are located in Tier-II cities and beyond, so it is not

restricting itself just to the malls in Tier I cities, but also exploring options high-streets in Tier II and beyond.

WHAT’S IN STORE FOR VICTORIA’S SECRET?

Major Brands is soon planning to open stores for Victoria’s Secret where it will be offering perfumes along with lingerie and body care.

The store will also offer a collection from PINK. “We are looking for a 5,000 square feet carpet area for the stores. We are working with the landlords to secure the spaces, and we will be announcing it when we are closer to the opening,” he shared. The brand is currently targeting cities like Mumbai, Delhi, and Bengaluru. It is expected that the brand will be opening its first store in Mumbai.

FUTURE PLANS

Major Brands is planning to introduce more brands in India in different categories like footwear, apparel, beauty, and food.

“We are planning to bring some more brands to India, but we have an NDA signed with the brands. So, when we are very close to the launch, we let people know. We will concentrate more on brands that our female customers want,” he concluded.

68 / Indianretailer.com / May 2022

WHAT’S IN STORE FOR VICTORIA’S SECRET? RNI No. HARENG/2006/21707 – FBD/269/15-17

www.indianretailer.com | May 2022 | `300

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B I ZO PS

BUILDING FOR

BHARAT AND INDIA

The women's intimate wear brand Zivame is built on the understanding of Indian women in terms of their body profile and their requirements. Delving deep into understanding what today’s women want has helped the brand deliver the products that fit the Indian women perfectly.

BY C H A RU L A M BA

70 / Indianretailer.com / May 2022

T

he women's intimate wear brand Zivame is built on the understanding of Indian women in terms of their body profile and their requirements. Delving deep into understanding what today’s women want has helped the brand deliver the products that fit the Indian women perfectly.

“As a brand, we have always been very agile. As the Covid-19 pandemic hit, we changed our offerings as per the customers and starting offering products in categories like loungewear

and home bras,” asserted Lavanya Pachisia, COO of Zivame.

“We are on the path to make Zivame an omnichannel brand and we have opened more than 100 stores and planning to open 100 more in the next few months. Our goal is to take the number to 1,000 by FY 23,” she further added.

TECH INTEGRATIONS

Zivame is a digital-first brand and the brand has been investing heavily in technology to give a consistent experience

We are penetrating deeper into Bharat as it will help consumers understand what the perfect fit means and this will further help us expand our offline as well as online retail channels,” Lavanya Pachisia, COO, Zivame

Along with Tier I and metro cities, we are also focusing on Tier-II cities and beyond,” she shared.

“We are penetrating deeper into Bharat as it will help consumers understand what the perfect fit means and this will further help us expand our offline as well as online retail channels,” she further added.

The brand is using the data to identify the locations, consumers, etc to open its new stores.

LOCATION STRATEGY

to consumers across all the platforms.

“With the help of technology, we have been successful in building a proprietary code called fit code that helps consumers measure their size by just answering a few questions. Apart from this, tech also helps us to determine consumer preferences and fulfill their needs,” she stated.

As the brand started as a D2C brand, so 75 percent of its revenue still comes from online channels. Currently, the brand is focusing on scaling the business through an offline channel.

The brand is concentrating on opening stores both in the malls as well as high streets. As the brand grows, it is planning to experiment with different store formats as well.

“At present, we think 500-800 sq.ft. store size is a sweet spot for us. So we will continue to expand with this store size currently in Tier III and IV cities. We will continue to grow in the markets where consumers are present,” she shared.

The brand is currently following the FOCO model, however, going ahead, it believes in running the companyowned stores.

MARKETING STRATEGIES

As Zivame is a digital-driven brand, most of its marketing strategy revolves around digital.

“As we are growing the brand in the offline space, we are looking forward to doing a lot of brand investments along with doing marketing-related activities in Tier III and IV cities which will be more consumer-specific whether it is print, TV, or digital marketing,” she stated.

FUTURE PLANS

Zivame is also planning to expand its distribution strategy through modern trade. It is also looking to expand its presence in neighboring countries like for instance in the Middle East as it feels that the body profiles of women are more or less the same.

“Apart from this we will be expanding our shapewear category along with introducing more innovative products across different categories which will actually be the more specific basis as per the consumer needs,” she stated.

The brand is also planning to expand into adjacent categories like the personal care category.

The brand continued to grow more than 100 percent during the pandemic and going ahead it is looking forward to more than 100 percent growth across all channels.

“Keeping in mind our expansion strategy, we expect a three-fold increase in our revenue,” she concluded.

May 2022 / Indianretailer.com / 71

Foodservice R E STAU R A N TS

H OT E LS

CAT E R I N G

DIGITALIZATION THE FUTURE OF RESTAURANTS

We have asked many of our investors that what is that got you to invest in us. For us the size of the market is one of the biggest points that come out. If you need to expand and raise money via equity you need to show the investor that it excites a larger share of the market.”

Brick-and-mortar is no more the model. Dark kitchens have come in, cloud kitchens have come in, so, all this is a disruption. Nobody today wants to stay away from tech-disruption and hence every restaurant owner is looking at such models.”

Raghav Verma, Co-Founder, Chaayos

Anjan Chatterjee, Founder & MD, Speciality Restaurants

72 / Indianretailer.com / May 2022

81%

o f re s t auran t s be l i e v e t h at t he i r o wn we bs i t e i s a mo re co s t - e ffe ct i v e me di um t o g e n e rat e di re ct o rde r

73%

resta ura nt ow ners believ e tha t soc ia l media is helpf ul in genera ting orders

96%

believ e tha t digita l ma rk eting ha s helped them during the pa ndemic

I think fundamentally a restaurant should be a 60minute vacation. It’s not a business of OR but AND. Hence it should have great food, great ambience, great service and everything. Just like a holiday/vacation would be, we have to try to give the best 60 minutes of the time period into a restaurant.”

As times have evolved, the consumer is no longer on the lookout for good food but wants a complete involvement of all senses. For that purpose, we aim to provide the best experience encompassing an engagement of all senses and not just gastronomical through our ambience.”

Ashish Kapur, Owner, Whisky Sambam

Debaditya Chaudhury, Director, Platter Hospitalit May 2022 / Indianretailer.com / 73

Source: Dineout Report

90%

restaurate urs sa y owning customer data he lps boost biz

FO O DS E RV I C E

Back in Love with FAST FOOD To match the changing demands of consumers, restaurant owners have geared up with new but effective strategies for operating their businesses Curefoods Acquires Franchise Rights for US-based Sbarro India’s fastest-growing cloud kitchen brand Curefoods has acquired the franchise rights to run and operate US-based pizza chain Sbarro in south India. It also owns brands like EatFit, CakeZone, and Great Indian Khichdi.

“Pizza, as a category, enjoys immense popularity in India and having a New York-style pizza offering is a great addition overall to our portfolio at Curefoods. By working with an international brand such as Sbarro, we aim to leverage our expertise in scale and technology to amplify its presence further. This partnership will not only strengthen our presence in the pizza category but also help us serve a globally recognized and loved legacy pizza brand to the country,” shared Gokul Kandhi, Chief Business Officer at Curefoods. Sbarro is a globally renowned pizza brand that specializes in New York-style pizzas and is currently present in 630 locations across 28 countries.

is year Delhites th to enjoy le ab be will e worldth om coffee fr food st fa renonwned ons rt Ho m Ti chain

Canadian Coffee Chain Tim Hortons® Enters India Iconic coffee chain Tim Hortons® is entering India as part of an exclusive agreement with AG Café, a joint venture entity owned by Apparel Group, a global fashion and lifestyle retail conglomerate, and Gateway Partners, an emerging markets alternative investment manager.

Tim Hortons will open in New Delhi this year, quickly followed by Punjab and other parts of the country. The brand will be led by Navin Gurnaney in India.

“We are very happy to bring Tim Hortons, a global café brand, to our guests in India. The launch will lead to major investments in market-leading talent and innovation, creating new jobs and providing a direct boost to the hospitality sector. We are excited ahead of this launch and we look forward to bringing the best of the café experience to Indians,” shared Gurnaney. With this launch, India will become the brand’s fourth country in the Asia Pacific region and plans to open over two hundred and fifty outlets over the next five years.

Legacy Restaurant Chain Aminia to Add 12 Outlets by 2024 End

ia chain Amin Restaurant ad the re sp to aims i yle biryan Kolkata-st cities r to othe 74 / Indianretailer.com / May 2022

Kolkata-based legacy restaurant chain Aminia is all gearing up for expansion. Known for its Awadhi

Style biryani and kebabs, it is opening a new outlet at Siliguri.

Spread across 3,000 sqft, it aims to spread the Kolkata-style biryani in other cities. The brand is also aiming at opening 12

globally Sbarro is a a brand zz pi renowned zes in that speciali le pizzas ty -s rk Yo w Ne

outlets in eastern India by 2024 and has Guwahati, Jamshedpur, and Chandennagore outlets in the pipeline. “All our restaurants are company-owned and operated. Even for our outlets outside of Kolkata,

we will stick to this in order to maintain the quality of our products and prevent the dilution of our heritage brand,” shared a spokesperson who is targeting a turnover of Rs 55-60 crore in FY 2022-23

Azure Hospitality Launches Classic European Style Restaurant Sly Granny in Goa Azure Hospitality has launched its casual dining restaurant Sly Granny to the shores of Goa through its Tereza beach house avatar. Founded in 2010 by entrepreneurs Kabir Suri and Rahul Khanna, the menu is created by Chef Utkarsh with utmost care for local ingredients and culinary traditions. “Our vision has always been to take our brands into local communities and neighborhoods, give them quality, a fun, and young experience, and put smiles on our customers. Goa has been particularly dear to us given its unique history, epic beauty, people, and traditions, and we are humble, excited to be able to serve it with our trademark azure style of hospitality,” shared the Co-founders. Sly Granny celebrates the life of a wicked, smart, wise, eccentric, polymath Granny. A polyamorous phenom with varied gastronomical interests, prohibition-era cocktails, and a bunch of well-selected wines for urban dwellers and other creatures of the night.

y’s spitalit Azure Ho aurant Sly t s e r u dining as a men Granny h care t s o m t u with ts n e created i d e r l ing for loca y traditions r a n and culi

Burger Singh Bets Big on Tier-II and III Cities

arbucks t new St gned The eigh i o be des and stores t m r a w a e d to provi xperience for e t n e i n conve s customer

Starbucks Eyes Airports as Top Location for Expansion Coffee chain Tata Starbucks Pvt. Ltd. has announced aggressive expansion plans for its airport locations. It is planning to open eight airport stores in India in Bengaluru, Bhubaneshwar, Goa, Guwahati, Jaipur, and Lucknow, offering visitors in transit a welcoming Third Place as the perfect stop for their coffee fix at airports. “This year has been really fruitful for Tata Starbucks in terms of expansion. Between December and January, we marked our biggest expansion by entering six new markets and now with the opening of eight new airport stores, we are echoing our commitment to evolve our brand and business in India to provide new and meaningful experiences to our customers,” said Sushant Dash, CEO, Tata Starbucks Pvt. Ltd. The stores will be designed to provide a warm and convenient experience for customers, whether they are taking a break in transit between flights or getting their favorite beverages to enjoy on their next flight. The airport stores will offer customers a wide range of menu items available at other Starbucks locations.

ns to ingh pla Burger S ts by e l t ore ou add 80 m Y-23 F f o d n the e

The homegrown burger chain, Burger Singh, is making further inroads into Tier-II and III cities in India, with plans to add 80 more outlets by the end of FY-23. The brand is looking to expand aggressively in Tier-II and III cities like Jabalpur, Guwahati, Saharsa, and also in existing cities like Chandigarh, Lucknow, and Gurgaon.

“Due to increase in nuclear families, infrastructure growth, higher disposable incomes, working women, and changing lifestyles, there is a steep rise in QSR spending patterns in Tier-II and III cities. In many ways, these cities are the future of the Indian Fast Food Industry, and we aim to bring our unique offerings of Indian fusion burgers to this new consumer cohort,” said KabirJeet Singh, Founder & CEO, Burger Singh.

May 2022 / Indianretailer.com / 75

FO O DS E RV I C E

TAKING A

BIGGER ‘BITE’ From launch to IPO, Burger King has reached far ahead of its peers in 8 years.

What makes India such a delectable market and what has been the growth trajectory for Burger King?

BY N U S R A

I

ndia is one of the biggest consumer markets.

Our population is our greatest asset especially marked by the millennial segment which constitutes almost 65 percent of the base.

Bolstered by better education opportunities and higher incomes, these consumers are able and willing to spend on food, lifestyle experiences; and are very discerning in

2015

Commenced operations of the first restaurant at Select Citywalk Mall, Saket, New Delhi.

76 / Indianretailer.com / May 2022

their choices. This growing demographic is an exact match to our user group and it was a no-brainer to enter the Indian QSR market. Some of the highlights of Burger King’s journey are below In an interaction with Nusra, Rajeev Varmani, CEO, Burger King India spills the beans on the idea behind launching IPO amidst the pandemic, foodservice

trends, future plans, and a lot more.

YOU MARKED THE IPO IN THE MIDST OF THE PANDEMIC WHEN THE RESTAURANT BUSINESS WAS BADLY HIT? WHAT WERE YOUR FEARS AND YET HOW DID YOU GO AHEAD WITH IT?

The pandemic was unprecedented and quite an

2018

The first television commercial of the company aired on television along with commencing operations at the 100th restaurant at Jalandhar LPU, Punjab.

unknown with respect to the shift in consumer behavior.

With stores shutting down and a nationwide lockdown, our first priority was to assure the consumers that we as a brand understand their situation. We were one of the first brands to come up with ‘Don’t Come to Burger King’ 1 week prior to the lockdown announcement.

During the pandemic, our communication showcased our

2019

Expansion to the east zone by the opening of a store in Bhubaneshwar.

initiatives of sanitization, social distancing, safe deliveries, zero contact experience, and crew and guest safety measures. We also preponed the launch of our brand app which gave yet another channel for consumers to order from BK. Our IPO, though during the pandemic, is reflective of our consumer’s and investors’ trust in our brand and we are thankful to them for such a blockbuster response to the same.

WE HAVE SEEN THAT DELIVERY HAS EMERGED AS AN IMPORTANT ELEMENT OF THE FOODSERVICE INDUSTRY IN THE LAST TWO YEARS. HOW WILL IT PAN OUT IN THE NEXT YEAR AND HOW IS BURGER KING EN-CAPTURING THE DELIVERY MARKET?

During the pandemic, the only way possible to enjoy Burger King food was via deliveries at home. The pandemic did change consumer behavior to a large extent where home deliveries became a norm rather than an exception. We too have responded to this new reality with best-in-class deliveries via our BK app which we launched during the pandemic.

We continue to maintain a strong relationship with our food aggregator partners. In the coming year, we do see dine-in traffic coming back with a vengeance with the ease of restrictions and everything opening up.

2020

Commenced operations of the 200th restaurant at Chakala metro station, Mumbai.

Our supply chains from day one have

been 100 percent local and indigenous.

Also, all our ingredients are made in India to be consumed by Indians.

IT IS SAID THAT QSR’S BUSINESS IS DRIVEN

BY INNOVATION AND TECHNOLOGICAL ADVANCEMENT. WHAT ARE THE BIGGEST INNOVATIONS THAT BURGER KING HAS DONE RECENTLY THAT GIVES THE BRAND AN EDGE OVER ITS PEERS?

Burger King entered India with one of the biggest taste tests ever done. Our menu was built ground up to ensure that it is Veg first, suited to the Indian Taste buds, and value for money. We continue plugging gaps in our portfolio with the same principles that we started with. We continue to invest in consumer research to ensure all new innovations are vetted by consumers and liked by them before they hit our restaurants.

THE BRAND HAS SEEN A DECLINE IN SALES GROWTH. WHEN DO YOU SEE A TURNAROUND IN IT?

We have already reached our pre-Covid sales numbers. With the re-launch of Whopper and the launch of the `50 Stunner Menu, we have crafted a unique identity with our consumers as a brand that stands for great

2021

Relaunched their flagship Whopper in India and launched the `50 stunner menu.

value for money and highquality food.

WHAT ARE YOUR EXPANSION PLANS FOR THE NEW FINANCIAL YEAR?

The Indian urban present a growing pie with more personal disposable income and eating out patterns.

With the untapped potential coupled with our cluster strategy approach, urban India presents a great opportunity for growth in the future. Burger King India plans to continue with its ‘cluster approach’ of expansion where it has six main clusters across the country—around Delhi-NCR, Mumbai, Punjab, Bengaluru, Hyderabad, and Kolkata. Our store expansion plans include adding 70 new stores in the coming financial year and onwards to 700 by December 2026.

WHAT ACCORDING TO YOU WILL BE THE TOPMOST TREND GOING FORWARD THAT WILL CHANGE THE WAY PEOPLE HAVE BEEN EATING OUT?

Post-pandemic, food safety, and sanitization have become priorities for our consumers.

There is a significant shift in out-of-home consumption from an unorganized to an organized sector. Consumers are looking for a trusted brand with safety in food preparation. At Burger King India, we have already initiated our ‘Trust In Taste’ program globally. All food served in every restaurant of

Burger King India is free from synthetic colors. We do not add any artificial flavors to our food.

IS BURGER KING REVISITING ITS MENU TOWARDS VEGAN, LOCAL SUPPLY CHAIN, AND INDIGENOUS PRODUCT LINES IN INDIA?

We, at Burger King, are constantly evaluating our menus by listening to consumers and understanding their taste requirements. Our brand line is ‘Your Way’ and if that includes new contemporary products, rest assured Burger King will launch it on its menus.

Our supply chains from day one have been 100 percent local and indigenous. All our ingredients are made in India to be consumed by Indians.

TODAY WHEN GREAT RESIGNATION IS THE BIG BUZZ, HOW ARE YOU TRAINING YOUR FRONTEND STAFF TO KEEP GOING?

We consider Burger King India as an institution where our crew not only earns a livelihood but also life skills.

We have an entire training and development department that ensures our front-end staff is regularly up-skilled basis their job profiles. We also run a lot of programs for our women crew under the aegis of ‘Queens at BK’, under which we mentor them to fast track their careers.

Cross-functional training and experience is a way of life at BK which ensures our staff is more employable within as well as outside Burger King.

May 2022 / Indianretailer.com / 77

FO O DS E RV I C E

MALLS ARE BACK IN ACTION Riding on the wave of higher consumption and maturing dynamics on the supply side, the industry is expected to grow from $4 billion to $8 billion in next three years, a massive 25 percent growth rate.

BY SA KS H I S I N G H

W

hen someone is looking for a restaurant space, a simple question that strikes the decision-making is whether it should be a standalone property running on a high street or should he opt to go inside a mall. While many restaurateurs are looking for self-contained square footage, others are better served by getting set up in a shared 78 / Indianretailer.com / May 2022

space, like a shopping mall.

Back in normal times, mall location used to be the safest option for any owner to invest

in, be it a QSR chain, a casual restaurant, or even a high-end fine dining restaurant. But, a lot has changed after the

India’s QSR market is expected to clock a compound annual growth rate of

In FY22, the Indian foodservices industry might manage to reach more than

between now to fiscal year 2025

of pre-covid estimates

23%

85%

pandemic, with malls being closed due to the virus spread to reducing the footfalls, restaurants started facing losses while continuing their services from such locations.

During that time, a major transition was witnessed.

Restaurants moved out of the malls and re-launched themselves in high-street or high-footfall locations where the rentals were reduced drastically. But with things moving back to normalcy,

LO CAT I O N

what do restaurants think of the mall location, and above that are the owners and mall developers witnessing any change in inquiry rates?

“People are back in malls, they are back to shopping.

We are seeing an increased footfall. I don’t feel that standalone locations have any fewer rentals, however, one cannot deny the fact that they are at their all-time low.

Many other factors play an important role like if there are no mall locations nearby any standalone restaurant will perform very well, it also depends from brand to brand,” stated Aavika Chhawchharia, Founder of Honey N Dough.

Vanita Bajoria, Director, Lord of the Drinks, Kolkata also feels that when it comes to running a successful restaurant, malls and brands have a symbiotic relationship.

A mall will always look for brands that have a huge recall value as it wants to pull more customers in. On the other hand, restaurants and pubs mainly want to be present in a mall with competitive shops, as it creates a beneficial buying mindset in the consumer through association.

She informed that the mall management has been very kind. “Considering the pandemic situation, they have provided us with a concession upon the monthly charges.

However, post-September the customer visits have increased and we along with management have come to a stable situation,” Bajoria added.

The brand, however, has faced a standstill situation till September. “Now, the situation has stabilized, people are visiting malls and we are looking at an increase in our daily customer visits,” she asserted.

Nitin Agarwal, Director

Food courts in malls are back with a bang whereas the demand for a full restaurant

capacity space in the mall is slowly picking up. The malls are becoming a great location for restaurants brands to invest in. of Emerald Mall situated in Lucknow is happy to see the brands coming in looking for a location in the mall. He added that food courts in malls are back with a bang whereas the demand for a full restaurant capacity space in the mall is slowly picking up. When asked if the rentals have been revised, he added that the company is more than happy for a profitable negotiation.

The Emerald Mall has already onboarded some of the top F&B players which will be announced soon.

Canteen Pub & Grub located in City Centre 1 Mall in Kolkata has witnessed a rise in sales in the pre-Covid times.

However, when the pandemic started and the nation faced lockdowns, the team decided to shut doors. Post lockdown,

the location has proved its worth over time and the brand has observed the customer base going upwards.

Swastik Nag, Director, Canteen Pub & Grub said that the management of the mall has decreased the rentals considering the pandemic situation that the nation faced.

During the lockdown days, when there were no customers or sales, the management had considered the situation and has been lenient about the rental charges. “The Covid situation has affected the restaurant business in every aspect. Many restaurants have faced total shut down whereas others including us have witnessed a complete stop in sales. However, post-Covid, our location has benefited us in rising sales and a daily visit

from customers who want a good time after a long tiring day,” Nag added.

A spokesperson from Phenoix Mall shared that the malls are becoming a great location for restaurants brands to invest in. Sharing one example of the existing mall in Lucknow, he said that opening a microbrewery inside the mall was a new yet challenging idea, but it came out with flying colors generating a good share of the revenue for both the restaurant owners and the mall developers. “The current time demands innovation, any mom-and-pop store kind of an idea won't work now. We are welcoming F&B brands who have out-of-the-box ideas and we are more than happy to assist them as well,” he concluded.

May 2022 / Indianretailer.com / 79

FO O DS E RV I C E

KEY CONSIDERATIONS BEFORE EXPANDING

YOUR F&B BUSINESS ABROAD It is important for any F&B (Food and Beverage) business to take a step back and consider a few key aspects before expanding in any international market.

I

ndian businesses and brands have all the necessary skill sets and offerings to expand outside India and capture global markets.

Needless to say, the international market offers strong growth opportunities and profitable results when done right. It is important for any F&B business to take a step back and consider a few key aspects before expanding in any international market.

Understanding the Local Culture:

Gaining a deep understanding of the local market trends lays an important foundation for a successful launch.

Getting a pulse of the market through immersion and thinking like a local consumer is integral before taking the first step.

Building a relationship with the audience before starting your business helps to start off right and gather the credibility of your consumers. Most products would need some form of alteration and localization based on each market, and therefore interacting with your audience to understand the cultural differences are extremely valuable to get true insights that would be helpful to succeed.

Explore a Market That Offers Sufficient Growth Potential: Before

entering any market, research if the

rewards outweigh the risks. It is critical to understand the gap your product needs to fill against local products. If the product does not add value or meet the demands of that local market, then another potential market needs to be explored.

You must have a detailed understanding of market conditions and the competitors in order to introduce a product/service, and look at the overall market size and growth today. Projections are helpful, but should not be the only driving factor since usually, projections don’t tend to span out in a linear fashion like projected on a piece of paper.

Look at Your Long Term Strategy:

When planning to expand, one must always plan in advance and explore future opportunities. Develop a longterm strategy that includes a budget, business plan, and a comprehensive marketing strategy.

A deep dive approach to understanding the impact and consequences of your business is important before you expand. The expansion of a business overseas requires a focused team that is dedicated to seeing the process through to the end. A business must consider as many outcomes or consequences of the potential choices it can make as possible,

A deep dive approach to understanding the impact and consequences of your business is important before you expand 80 / Indianretailer.com / May 2022

Karan Kapur Executive Director, K Hospitality Corp

and see how the international strategy ties into the overall strategy and its impact on its existing India operations.

Have clear set KPIs so you know how you are progressing v/s your initial assumptions. While more entrepreneurs are optimistic by nature, remaining cautious as you take the first step in a new market is important.

Develop your presence slowly by being diligent and observant about what works and what does not. Proper planning and measured decisionmaking go a long way toward facilitating successful international expansion.

While the above sound simple, sometimes not following these basics ends up costing much more in the future. The international market offers huge opportunities, but doing it right is more important than doing it at all.

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G en X

Vahdam India is present in around

1500

stores globally and ships to 132 countries.

Founder and CEO, Vahdam India said.

The brand’s main focus is on the tea category. It is also experimenting with complimentary categories like spices and herbs.

WAY AHEAD

Bala Sarda, Founder and CEO, Vahdam India

GOING D2C WITH TEA India is the second-largest producer of tea, globally, after China. India grows some of the world’s finest teas, which is around 25 percent of the world’s production.

H

owever, there was no brand that was taking tea to the world under a homegrown label. Also, there were several challenges with the supply chain of the product like tea losing flavor with time. The product was reaching consumers after months and years of being harvested in India, and hence, customers were getting the product that was not at par with their expectations as the freshness was lost. This gave an opportunity to brands like Vahdam India to disrupt the supply chain, cut out all middlemen, source direct, and deliver direct.

82 / Indianretailer.com / May 2022

BY VA I S H N AV I G U P TA

DIGITAL STRATEGY

Vahdam India made market entry via an online channel.

Digital channels let the brand micro-target the market and helped it to compete with the big brands as brands come under the same pedestrian when they bid for a click on Amazon, Facebook, or Google.

“The digital channel has democratized the entire process of consumer brand building. If we look at the distribution strategy 10 years back, the only way to build a global brand was to go to

America or go to any of the global markets, set up a shop, and launch your products. But with the internet, you could sit out of India, reach every state and every city potentially in the world,” Bala Sarda,

Vahdam India ended FY 2021 with net revenue of `159 crore, up from `75 crore in FY 2020, registering 110 percent YoY growth. The brand also achieved net profitability in FY21. “We are targeting to deliver `500 crore in revenue

by FY 2024. We see ourselves growing 40-50 percent YoY over the next two to three years,” Sarda asserted.

The majority of its revenue comes from the top five markets — Canada, North America, the UK, Germany, and India. Almost 5-7 percent of its business comes from India. “Currently, we will be focusing on digital channels in the Indian market. We further plan to launch our own experience store over the next 12 to 18 months,” Sarda concluded.

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