EDITALK

It’s Only Sab Saath Saath, that will Bring in Sab Ka Vikas!

Today, India is undoubtedly being looked upon by the whole world as the prime destination, where any category of business would like to be present and seen doing its business with flair. This is the reason, why most businesses, the world over, regardless of the product category to which they belong, are making a beeline to step onto Indian soil and make their presence felt. The country’s rapidly growing infrastructure, its GDP growth, as well as the overall progress and development made in any sphere that one looks at, despite the challenging geo-political situation presently existent, is nevertheless driving companies and brands worldwide to hence entrench themselves here, more than they ever did in the past. More importantly also, the fact that the Indian consumers are now a completely changed set of potential buyers, because of their earnings having grown multi-fold in recent years, along with general awareness now being on an altogether different level, as well as its high- salaried young generation having turned aspirational as well as brand conscious and one with deeper pockets and disposable income to splurge on lifestyle products of their choice, the opportunities to engage in doing successful business here, are therefore immense for everyone, be they domestic or international players. Coming now specifically to the horological arena, in the olden days, if one talks about the retailing scenario that existed across India, the country only had Family-Owned and Mom & Pop stores, that were involved in watch & clock retail. However, in the more recent years since, there has been a major shift. The horological industry and trade of India, has continued to grow at a phenomenal and unimaginable rate. This has particularly gained a very strong momentum, in the past some years with renowned watch retail store chains expanding rapidly across the country both in the metro cities as well as Tier 2 & 3 towns, along with the presence of watch and clock retail outlets and points of sale, also growing at an equally fast rate, at shopping malls, big- format as well as departmental stores, besides e-commerce too, holding its own sway alongside. Well, it’s quite understandable that everyone looks at growth and thus constantly continues to maintain an upward trajectory in this respect, but at the same time, is it truly worthwhile for us to either sidetrack or ignore Multi Brand Retailers (MBRs) and Mom & Pop stores? That is the burning question, which comes to mind today. Should one keep one’s eggs only in selected baskets that are financially loaded with funds or should one also support these other MBRs and Mom & Pop stores to grow? After all, one doesn’t stand to lose any. If at all, supporting them, will only extend one’s reach as a brand and give it a wider audience, exposure and the spectrum to operate alongside. Hence, in this rapidly evolving Indian watch market—where e-commerce has crossed a 35% share and digital-first strategies are dominant—brands must also extend specialized, high-tech support to Multi-Brand Retailers (MBRs) as well as Mom & Pop stores, to help them survive and thrive too, along with large organized chains. Now, if one looks at the present scenario from a brand’s perspective, well, the brand is right in concentrating more on its 75 to 80% market share, which comes in from renowned watch store chains, shopping malls, large format stores, departmental stores as well as e-commerce sites such as its own perhaps, or others such as Amazon, Flipkart, Myntra, Tata CliQ and so on. After all, this is where, its major chunk business comes from, due to huge customer footfalls and visitors thronging such venues, or those others who prefer to shop online from the comfort of their homes and order the products of their choice. But, what the brand should at the same time also appreciate, is the fact that even such small outlets, which may perhaps account for only 20 to 25% share of its sale, will only be an addition to its business canvas on the whole. They will not be an impediment at all, but will only add to its total business quantum both in volume as well as value terms. Yes, it is also quite understandable that the brand has the right to choose the MBR or Mom & Pop store it would like to associate with, depending upon its business standing, its locale, its popularity, as well as the city where it lies, which should align with the brand’s own company policy and philosophy. These MBRs and Mom & Pop stores, which are spread across the country in numbers that one can perhaps not even comprehend, have at some stage, invested, and at times, even gone beyond their capacity, in building their stores, and as such, they too, have a right to co-exist simultaneously and remain in business as well as relevant. After all, even the big chain stores of today, had once-upon-a-time incepted their stores with very modest beginnings, and hadn’t they? By not encouraging these MBRs and Mom & Pop stores, one is not helping them any to remain in the business and grow in times to follow, but on the contrary, inviting barriers to their very survival. However, having said this, the MBRs and Mom & Pop stores too, have to shift into overdrive, if they want to remain in business and also grow. This requires a total change of mindset. They have to understand, that the times have changed and what ruled the roost at a particular point-in-time, does not hold weight any longer. They also have to look at various factors, such as refurbishment of the store from time-to-time in keeping with contemporary store design trends in vogue, internal ambience, customer comfort offered, and well-trained staff to interact with today’s customers who are not only well-educated and aware, but come with pre conceived buying preferences. This significantly applies to the present-day youth, who are not only very choosy but come with preset notions of what kind or type of product they would like to possess and own and in which price band. They cannot be misled or misguided any longer as they are mentally very sharp, and accordingly come well-prepared. As important is the fact, that these outlets should also look to expand into other lucrative areas and set up more branches, which could be managed by other family or team members, rather than all of the same family managing a store in turns, as now businesses have become system oriented. This attitude brings in monotony, whereas adding another one or two stores with other colleagues or team members managing these new stores, lends the establishment a fresh waft of breeze, which today’s customers look for. One has known of instances where brands have either demanded a specific area to stock their products or been prevailed upon, to avoid stocking their products at such small stores, by other big players. It takes two hands to clap, and only then do things really move on. So, if it’s important for a brand to encourage such small outlets too, rather than rest its entire faith on the large organized chains, it’s as important, for the MBRs and Mom & Pop stores to also upgrade themselves and transform for the better, before it gets too late. Only then, are alliances with each other possible. As an United Fraternity, which the Horological Industry and Trade of India, Wishfully is, it’s time therefore, that both the Brands as well as MBRs and Mom & Pop stores too, seriously ponder on this critical issue and work to somehow resolve it, if not completely, then at least to a reasonable extent, as it’s this move by both, that will improve the situation and help everyone, be they Big or Small, to grow. It’s only then, that Sab Saath Saath, will eventually bring in Sab Ka Vikas!

Hemal M. Kharod