Are Large Indian Retailers Battle-Ready?

Mukesh Gupta

shopping cartIn their current state of operations, Indian organized retailers are in no way equipped to compete with the likes of Walmart, Tesco or Target.

Let me re-count to you my experience based on which I have come to this conclusion.

Last week, I went grocery shopping with my wife to a large format retail store in Bangalore. I was appalled at the thoughtless design of the store and the lack of the willingness to serve the customers in the entire staff.

In my opinion, there are 2 key performance areas which are critical for a retailer to succeed in a market like India:

  1. Supply chain efficiencies
  2. Customer’s shopping experience

This retailer failed on both counts (to provide the goods at the cheapest price or to provide a high class immersive retail experience).

Before we move ahead with this line of thought, let me share my impressions  from my visit:

Customer Experience perspective: 

  • Store design: This store was spread across 2 floors. The layout of the store was such, that you need to go to the 1st floor (non-grocery items, a.k.a, high margin items), walk all the way across to the other end of the floor, then come down to the ground floor for groceries. What this meant was that, even if I only wanted to buy groceries, I am still forced to walk through the non-grocery floor, hoping that I shall be tempted to pick something based on the promotions offered. Though this helps the retailer try and maximize the revenue per shopper, this leaves the shopper in a bad taste.
  • Cart design: The only shopping cart that they have for usage is a large size cart. There was no option of a handbag or a smaller cart. Though not bad by itself, this was a problem with the way the store was laid out. I had at least a dozen customers bump into me and me bumping into another half a dozen customers, as the space between aisles was so narrow.
  • Motivated and trained employees: The store had minimal support staff. There was no one to help. I had a few questions on the placement of a product of a particular brand. There was no one present to help. The staff whom I did find, were not able to help as they were as clueless as me.
  • Check-out experience: Now that I had collected everything that I wanted to buy in my cart, I went to the billing counters. There were about 16 billing counters. However, there were about 6 – 7 customers already waiting for billing in each of these counters. What this meant was that I had to wait for another 45 minutes to get my items billed and get out of the store. The billing clerk tried on his part to be as quick as possible, but to the dismay of the customers, he was not able to scan the bar-codes of 1 out of every 9 or 10 articles. This meant that he had to manually type these codes (I think about 16 numeric characters each) in order to complete the billing. Also, there was no separate counter for fast track billing (maybe for 5 items or less or cash billing). So, even if you only had to pick one item, you still had to go through the entire grill.

After such an experience, I doubt if I shall think of going shopping in the store  again, as I have a myriad of options for where I can go (including online stores) shopping for grocery and these options will only increase with FDI in Retail cleared.

Supply chain efficiency perspective:

  • Stock-outs: From my list of groceries, there were 3 items (cooking oil, a specific brand of Jam & a specific kind of spice) which were in a stock-out position. This was on a Saturday evening at around 6PM. Now, it is very well known that the biggest lost opportunities for retailers is lost sale due to stock-outs.
  • Price: I happen to go a mom & pop store near my home to buy these 3 items that were not available at this store. I also saw the retailer selling a couple of items (a specific brand of whole wheat atta) to a customer at a price that was lower than the price i bought at the store earlier in the evening. So, not sure if they will be able to compete on price either.

This is not just the state of this one retailer in India. Most so called organized retail stores (multi-brand, multi category stores) have more or less similar problems. Some more serious than others.

Now, the question is,  if and when players like Walmart, Target or 24×7 arrive in India, will these retailers be able to compete with them? I am not suggesting that these retailers will get all of this right. However, if i were an Indian retailer, I would not bet my survival on the assumption that they will also face similar problems. I would be ready with a strategy to compete/co-opt with these retailers before they can hurt me.

What next? 

So, the next question that beckons is the following – what can retailers do to counter this threat?

Strategically, they need to pick a field where they want to be the best. Whether it is  competing on

  • Cost (low cost or luxury or premium)
  • Customer experience
  • Speed (how fast or slow do i get new products lines on the shelf)
  • Niche (define and win the niche)

It doesn’t matter, what strategy they adopt; they will need to improve on both the supply chain efficiency and the customer experience part, as these will be the necessary battle conditions, without which, you will no longer be in the competition.

These are my thoughts on the state of organized retail in India. Do you agree with my assessments?

Please do post your thoughts as comments below or tweet your thoughts to me on twitter (@rmukeshgupta).

PS: Something extra for all you people. Watch this prank by the Improv  team at a Best buy store



awareness , India

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13 Scary Statistics On Employee Engagement [INFOGRAPHIC]

Jacob Shriar

There is a serious problem with the way we work.

Most employees are disengaged and not passionate about the work they do. This is costing companies a ton of money in lost productivity, absenteeism, and turnover. It’s also harmful to employees, because they’re more stressed out than ever.

The thing that bothers me the most about it, is that it’s all so easy to fix. I can’t figure out why managers aren’t more proactive about this. Besides the human element of caring for our employees, it’s costing them money, so they should care more about fixing it. Something as simple as saying thank you to your employees can have a huge effect on their engagement, not to mention it’s good for your level of happiness.

The infographic that we put together has some pretty shocking statistics in it, but there are a few common themes. Employees feel overworked, overwhelmed, and they don’t like what they do. Companies are noticing it, with 75% of them saying they can’t attract the right talent, and 83% of them feeling that their employer brand isn’t compelling. Companies that want to fix this need to be smart, and patient. This doesn’t happen overnight, but like I mentioned, it’s easy to do. Being patient might be the hardest thing for companies, and I understand how frustrating it can be not to see results right away, but it’s important that you invest in this, because the ROI of employee engagement is huge.

Here are 4 simple (and free) things you can do to get that passion back into employees. These are all based on research from Deloitte.

1.  Encourage side projects

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload. Let them explore their own passions and interests, and work on side projects. Ideally, they wouldn’t have to be related to the company, but if you’re worried about them wasting time, you can set that boundary that it has to be related to the company. What this does, is give them autonomy, and let them improve on their skills (mastery), two of the biggest motivators for work.

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload.

2.  Encourage workers to engage with customers

At Wistia, a video hosting company, they make everyone in the company do customer support during their onboarding, and they often rotate people into customer support. When I asked Chris, their CEO, why they do this, he mentioned to me that it’s so every single person in the company understands how their customers are using their product. What pains they’re having, what they like about it, it gets everyone on the same page. It keeps all employees in the loop, and can really motivate you to work when you’re talking directly with customers.

3.  Encourage workers to work cross-functionally

Both Apple and Google have created common areas in their offices, specifically and strategically located, so that different workers that don’t normally interact with each other can have a chance to chat.

This isn’t a coincidence. It’s meant for that collaborative learning, and building those relationships with your colleagues.

4.  Encourage networking in their industry

This is similar to number 2 on the list, but it’s important for employees to grow and learn more about what they do. It helps them build that passion for their industry. It’s important to go to networking events, and encourage your employees to participate in these things. Websites like Eventbrite or Meetup have lots of great resources, and most of the events on there are free.

13 Disturbing Facts About Employee Engagement [Infographic]

What do you do to increase employee engagement? Let me know your thoughts in the comments!

Did you like today’s post? If so you’ll love our frequent newsletter! Sign up here and receive The Switch and Shift Change Playbook, by Shawn Murphy, as our thanks to you!

This infographic was crafted with love by Officevibe, the employee survey tool that helps companies improve their corporate wellness, and have a better organizational culture.


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Supply Chain Fraud: The Threat from Within

Lindsey LaManna

Supply chain fraud – whether perpetrated by suppliers, subcontractors, employees, or some combination of those – can take many forms. Among the most common are:

  • Falsified labor
  • Inflated bills or expense accounts
  • Bribery and corruption
  • Phantom vendor accounts or invoices
  • Bid rigging
  • Grey markets (counterfeit or knockoff products)
  • Failure to meet specifications (resulting in substandard or dangerous goods)
  • Unauthorized disbursements

LSAP_Smart Supply Chains_graphics_briefook inside

Perhaps the most damaging sources of supply chain fraud are internal, especially collusion between an employee and a supplier. Such partnerships help fraudsters evade independent checks and other controls, enabling them to steal larger amounts. The median loss from fraud committed
by a single thief was US$80,000, according to the Association of Certified Fraud Examiners (ACFE).

Costs increase along with the number of perpetrators involved. Fraud involving two thieves had a median loss of US$200,000; fraud involving three people had a median loss of US$355,000; and fraud with four or more had a median loss of more than US$500,000, according to ACFE.

Build a culture to fight fraud

The most effective method to fight internal supply chain theft is to create a culture dedicated to fighting it. Here are a few ways to do it:

  • Make sure the board and C-level executives understand the critical nature of the supply chain and the risk of fraud throughout the procurement lifecycle.
  • Market the organization’s supply chain policies internally and among contractors.
  • Institute policies that prohibit conflicts of interest, and cross-check employee and supplier data to uncover potential conflicts.
  • Define the rules for accepting gifts from suppliers and insist that all gifts be documented.
  • Require two employees to sign off on any proposed changes to suppliers.
  • Watch for staff defections to suppliers, and pay close attention to any supplier that has recently poached an employee.

About Lindsey LaManna

Lindsey LaManna is Social and Reporting Manager for the Digitalist Magazine by SAP Global Marketing. Follow @LindseyLaManna on Twitter, on LinkedIn or Google+.


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Compelling Shopping Moments: 4 Creative Ways Stores Connect With Their Customers

Ralf Kern

compelling shopping momentsOn a recent morning, as I was going through my usual routine, my coffeemaker broke. I cannot live without coffee in the morning, so I immediately looked up my coffeemaker on Amazon and had it shipped Prime in one day. My problem was solved within minutes. My Amazon app, and my loyalty account with that company, was there for me when I needed it most.

It was in this moment that I realized the importance of digital presence for retailers. There is a chance that the store 10 minutes from my house carries this very same coffeemaker; I could have had it in one hour, instead of one day. But the need for immediate access to information pushed me to the online store. My local retailer was not able to be there for me digitally like Amazon.

Retail is still about reading the minds of your customers in order to know what they need and create a flawless experience. But the days of the unconnected shopper in a monochannel world are over. I am not alone in my digital-first mindset; according to a recent MasterCard report, 80% of consumers use technology during the shopping process. I, and consumers like me, use mobile devices as a guide to the physical world.

We don’t need to have an academic discussion about multichannel, omnichannel, and omnicommerce and their meanings, because what it really comes down to for your consumers, or fans, is shopping. And shopping has everything to do with moments in your customers’ lives: celebration moments, in-a-hurry moments, I-want-to-be-entertained moments, and more. Most companies only look for and measure very few moments along the shopping journey, like the moment of coupon download or the moment of sales.

Anticipating these moments was easier when mom and pop stores knew their customers by name. They knew how to be there for their shoppers when, where, and how they wanted it. And shoppers didn’t have any other options. Now it is crucial for companies to understand all of these moments and even anticipate or trigger the right moments for their customers.

In today’s digital economy the way to achieve customer connection is with simple, enjoyable, and personalized front ends that are supported by sophisticated, digital back ends. Then you can use that system to support your customer outreach.

Companies around the world are using creative and innovative methods to find their customers in various moments. Being there for customers comes in many different shapes and forms. Consider these examples:

Chilli Beans

A Brazilian maker of fashion sunglasses, glasses, and watches, Chilli Beans has a loyal following online and at over 700 locations around the world. Chilli Beans keeps its customers engaged by releasing 10 limited-edition styles each week. If customers like what they see, they have to buy fast or risk missing out.


Online men’s fashion retailer Bonobos reaches its customers with its Guide Shops. While they look like traditional retail outlets, the shops don’t actually sell any clothes. Customers come in for one-on-one appointments with the staff, and if they like anything that they try on, the staff member orders it for them online and it is shipped to their house. The 20 Guide Shops currently open have proven very successful for the company.

Peak Performance

Peak Performance, a European maker of outdoor clothing, has added a little magic to its customer experience. It has created virtual pop-up shops that customers can track on their smartphones through, and they are only available at sunrise and sunset at exact GPS locations. Customers who go to the location, be it at a lighthouse or on top of a mountain, are rewarded with the ability to select free clothing from the virtual shop that they have unlocked on their phones.

Shoes of Prey

The customer experience is completely custom at Shoes of Prey, a website where women can design custom shoes. From fabric to color, the customer picks every element, and then her custom creation is sent directly to her house. Shoes of Prey has even shifted its business model based on customer feedback. Its customers wanted to get inspiration and advice in a physical store. So Shoes of Prey made the move from online-only to omnicommerce and has started to open stores around the world.

While the customer experience for each of these connections is relatively simple – a website, a smartphone, an online design studio – the back end that powers them has to be powerful and nimble at the same time. These sophisticated back ends – powering simple, enjoyable, and personalized front ends – will completely change the game in retail. They will allow companies to engage their customers in ways we can’t even begin to imagine.

Technology will help you be there in the shopping moment. The best technology won’t annoy your customers with irrelevant promotions or pop-up messages. Instead, like a good friend, it will know how to engage with customers and when to leave them alone – how to truly connect with customers instead of manage them. Consequently, customer relationship management as we know it is an outdated technology in the economy of today – and tomorrow. Technologies that go beyond CRM will help retailers to differentiate. Aligning your organization and those technologies will be the Holy Grail to creating true and sustainable customer loyalty.

Learn more ways that business will never be the same again. Learn 99 Mind-Blowing Ways The Digital Economy Is Changing The Future Of Business.

Find out how SAP can help you go beyond CRM and support your retail business.

Ralf Kern is Global Vice President Retail for SAP and a retail ambassador for SAP. Interested in your feedback. You can also get in touch on Twitter or LinkedIn

This blog also appeared on SAP Customer Network.


About Ralf Kern

As Global Vice President for the Retail Business Unit at SAP SE, I am taking up the challenge of the future direction of SAP’s solution and global Go-to-Market strategy for Omnicommerce Retail, leading them into today’s digital reality. My career reflects a permanent expansion of my expertise that I achieve through continuous professional training. Based on my Master’s degree in Computer Science and Business Administration from the Saarland University (Germany), I broadened my professional knowledge through challenging positions within different industries and through further trainings regarding professional management and leadership at the Columbia Business School and at the European School of Management. After working for an international bank and a leading insurance company, I decided to go the next step and started to change my career direction at the retail software and consulting start-up Dacos and later at one of the world’s leading information technology company SAP. Now, with more than 25 years of experience in the field of information technology, Retail, consulting, global project management, merger and acquisition as well as solution and service development, I have a proven record of satisfying customer needs and continuously exceeding performance expectations. Due to my successful record of accomplishment within SAP SE, I reached my current position as Global Vice President for the Retail Business Unit, where I complete my task with an extremely talented and solution-oriented apporach. Besides, as an enthusiastic professional, I acquired over the years the ability to manage large teams and multiple responsibilities in a fast-paced environment and possess strong interpersonal and communication skills coupled with extensive technical, commercial and strategy development skills and I am exceedingly committed to the highest level of professional and personal excellence.

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How To Prepare Your IT Landscape For The Digital Economy

Sei Drake

Remember Tom Cruise’s 2002 movie Minority Report? Set in the futuristic world of 2054, the film featured self-driving cars, autonomous manufacturing robots, and multimedia advertising billboards that broadcast personalized messages to individuals as they passed by. What seemed like science fiction in 2002 is now a reality, with personalized and targeted social media and marketing, smart technologies such as robotics, autonomous vehicles, and 3D printing – not to mention digital machine-to-machine hyperconnectivity of the Internet of Things (IoT). Digital transformation means that all of these things will become the norm in the next few years. The future of many enterprises will depend on their ability to embrace these technologies and innovations.

Over the last two decades, many companies have built large, complex IT landscapes to support traditional business processes. The legacy systems in these landscapes were not designed for the age of Internet hyperconnectivity and the resulting high data and transaction volumes. Extending these landscapes to support new, digitally connected processes and models will further complicate IT landscapes and inhibit business innovation and agility.

The architecture of the digital enterprise will not only need to support Big Data and analytics, but a host of other things. It must also use the datastream from evolving digital technologies to trigger actions and alerts in new and existing business processes, enabling increased revenue, improved customer experience, enhanced supply chain efficiencies, and innovative business models.

To keep pace with rapid change, businesses like yours need to do three things:

  1. Simplify your IT landscape.
  1. Transition to modern platforms such as cloud-based solutions and a “digital core.”
  1. Build innovative business solutions using the latest digital capabilities to  strategically differentiate from both current and future new competitors.

Yet most organizations lack the skills to tackle these tasks alone. So who can best help you navigate this shift? 

Support for a strong foundation 

Surprise! Your best choice may be the support organization of your enterprise software and solutions provider. Over the past 15 years, many enterprise support organizations have evolved beyond providing reactive break/fix support to acting as an architectural quality advisor that can oversee the complete software lifecycle. The support provider is a smart partner for both proactive landscape simplification and co-innovation initiatives.   That’s a fundamental shift driven by the market forces of this “new normal” of digital transformation.

Support providers tend to be close to their customers, understanding their existing technologies, business processes, and revenue models. And because software solution providers often lead in the introduction of new solutions based on the latest innovations and technologies – such as IoT, cloud, robotics, autonomous cars, and 3D printing – their experienced support teams can architect solutions that will give you a strategic and sustainable advantage over your competitors.

The proof is with customers. For example the Global Service & Support organization at SAP is working with a Fortune 100 chemical company on an IT simplification initiative. After numerous mergers and acquisitions over the years, this company needed help consolidating four unique IT landscapes into one. What is an overly complex, burdensome infrastructure will be a simplified, modern solution architecture.

SAP is also working with a large energy distribution company to co-engineer an innovative Big Data, IoT data management solution. The solution is structured to deliver fast, responsive analytics from a data store of 120 terabytes of smart meter data. The utility will use predictive analytics to anticipate demand, allowing buyers to make smarter wholesale energy purchases. In the future, this Big Data and analytics platform will be extended to support innovative solutions for the utility’s customers.

Minimize risk and maximize outcomes 

Working with support organizations to simplify and innovate offers clear benefits, too. These teams are naturally close to their development organizations. They understand cutting-edge technology and they have direct access to the best talent for building new solutions. Support organizations also have extensive experience working in high-volume, high-velocity transaction and data environments.

Because they already know your business and your technology infrastructure, partnering with your software and solutions support provider can reduce risk. Remember that support organizations are measured on their ability to help their customers succeed, not on maximizing billable hours. In a world of “outcomes-based” solutions, that’s a true win-win for all.

When building innovative solutions, support teams develop in short cycles, conduct proof-of-concept exercises, and take steps to minimize cost and risk. And they can do all of this while helping you continue supporting your traditional business operations, looking for opportunities to optimize processes, reduce costs, and increase efficiency.

We may not be able to predict what innovations and new technologies will exist in the year 2054, but we know that there are technology advancements available now that will have a significant impact on our world. Work with your enterprise software provider’s support organization and start planning your digital transformation.

Click here to learn more how Global Service & Support can provide support services to help you prepare for the digital economy and realize rich value.  Visit us at


About Sei Drake

Sei Drake has been helping SAP customers for over 18 years as a solutions expert and architecture advisor. In his current role as a Co-Engineering Architect in the Global Service and Support organization, he helps customers build innovative, industry leading capabilities with SAP technologies.

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