Saturday, April 30, 2011

Virtual and physical buying will be one (for the most successful retailers).

We could not have said it better ourself. Ross Dawson globally recognized as a leading futurist, entrepreneur, strategy advisor, and bestselling author wrote the following in his recent post when summing up the emerging retail trends into one mega-trend.

I see as the dominant meta-trend in retail: the merging of online and in-store buying.

It is a false distinction to separate clicks and bricks, online and offline, virtual and physical in the retail world.

The successful retailers of the future will bring all of the connection and richness of the digital world into their physical stores. Online and mobile shopping will be closely linked to the powerful experiences possible in the physical space of what we currently call a shop. Virtual and physical buying will be one (for the most successful retailers).

AaramShop has based it's entire business logic on the coming together of the online and offline experience for the consumers and the retailers.

Self-Check out: Will it be the future of Indian retail stores?

Off the shelf - the retail and CPG blog of Infosys raises this question in their latest blog post based on a real life shopping experience at a modern retail outlet.

The highlighted experience is shared by shoppers across the world and unfortunately the inconvenience is not limited to the delays in the payment isles alone, but the process of getting there and back and fighting to secure a parking slot can be equally painful.

AaramShop addresses and eliminates these issues at one shot by adopting a unique and a hybrid retailing business model. Please do share with us your experiences of using our retailing platform.

Friday, April 29, 2011

Shopper Marketing Trumps Digital in Spending

Despite the continued growth of digital media, shopper marketing projects as the fastest-growing area of marketing investment for packaged-goods marketers over the next three years, according to a study released today by Booz & Co. for the Grocery Manufacturers of America.

At the same time, digital and shopper marketing increasingly are converging, according to the report, which found 62% of shoppers search for deals digitally before at least half of their shopping trips.

In all, 83% of CPG executives responding to the Booz/GMA survey said their companies plan to increase spending on shopper marketing over the next three years, and 55% said their companies plan to hike such spending 5% or more annually. None planned a decrease in shopper-marketing spending.

That compared to 76% who planned to increase digital spending, of which 36% planned to hike spending 5% or more annually. Only 3% planned to cut digital spending.

Monday, April 25, 2011

25% market share of Private Labels all set to rise.

"The New Fred Meyer on Interstate on Lomb...

The global market share of private label food products is expected to double, from its current 25% to 50%, by 2025, according to a new report from the Food and Agri Research division of Rabobank, an international financial services provider.

While recent statistics have pointed to a halt in the rapid growth of private label that was seen during the worst of the recession, and brands overall will recoup some of the share lost to private label, the historical trends show that they never totally recoup those losses, according to the report.

The lingering effects of the recession on consumers will drive private label expansion across the globe for years to come, say the analysts. Those effects include consumers' raised awareness of private label (aided by the introduction of "premium" private label brands), which has in turn spurred expansion of "hard discount" retail formats (warehouse clubs, dollar stores, "everyday low price" mass merchants and supermarkets) and increased competitive pressure on service-oriented supermarkets for lower price points and non-price differentiators from discount food retailers.

Read more here;

Wednesday, April 20, 2011

Private Labels in developing markets.

Developed countries are shown in blue (Accordi...

While growth potential in developed countries within mature categories such as beer, margarine and frozen pizza is limited, strong brands have major opportunities in gaining share in less developed regions.

In recent years, large multinational food/beverage manufacturers have been "actively targeting the top three positions in selected product categories" in developing countries, in part by acquiring "local hero" brands or non-core brands of other multinationals, the report notes.

"Our research shows that private label and A-brands are an inseparable combination," sums up Sebastiaan Schreijen, associate director, processed food and retail at Rabobank. "But whereas two's company, three's a crowd, this report is an early warning to B-brand suppliers to adapt their strategies to survive."

Read the full report here;

All Colgate Palmolive product available at AaramShops NOW!

All Colgate Palmolive brands will be now available at Aaram Shops. This goes to all the lazy shoppers, on the days that you don't want to go shopping outdoors you can log on to your favourite AaramShop and bag you favorite Colgate Palmolive products. So lazy shoppers-Happy Aaram shopping..

Godrej Household products on Aaramshop

Godrej 's household products - Goodknight and all its variants are available on Aaramshop. Shoppers can now place orders for the Goodknight range of products from Aaramshop.

Tuesday, April 19, 2011

Monday, April 18, 2011

Private-Label Makers: Products Save Consumers 33%

Private-label makers are looking to capitalize on consumers' growing concerns about recent increases in the costs of many grocery and other everyday items.

The Private Label Manufacturers Association (PLMA of the US) has released a new study that concludes that consumers on average can save 33% off their grocery bills by buying all private label products.

Over a six-week period (Feb. 12 to March 19), the association tracked bills for market baskets comprising 40 staple grocery, household and personal care items, comparing the total costs for all-private-label and all-branded-product equivalent market baskets.

In India the Private Labels have still to take off in the same substantial manner, however our informal study / observation of shopper behavior at modern trade in has indicated an increased presence of private labels in the shopping carts.

read more of the US report here;

The Growth of Private Label Brands in India

The credit to the growth story of private label brands does not include only the retail outlets but also the national brands. The earlier strategies of national brands have themselves now eaten their own market, says Akshay Rao in this interesting article.

"At the start of last decade Multinational companies like Hindustan Unilever Ltd, Procter and Gamble, Britannia and others started outsourcing their product manufacturing to third parties. Companies shared their formulas and technology updates with the third parties to manufacture products which were on par with the quality of products manufactured by the MNC's themselves only to keep them away from the manufacturing and human resource problems and give more attention towards the Research and Development of new products and expanding the product lines."

Private Labels offer margins & leverage.

And all this at the cost of the original category creators - the National and Regional brands.

Private labels, in addition to yielding higher margins for retailers, give them important leverage in negotiating with brands. But at the same time, retailers very much need A brands. Consumers value in-store competition and want brands to benchmark the price competitiveness of their supermarkets, and food retailers need top brands as their price/quality anchors within each product category, the report points out.

Structure of Indian retail is intrinsically not amenable to private labels

Private labels constitute less than 5 per cent of the total Indian retail market and Soumitra Sharma, Business Analyst @ Evalueserve beleives that private labels will not pose a significant threat in India. At AaramShop we do however observe that private labels are an area of serious concern for any national brand.
A key factor for growth of the private label market in any country is sufficient penetration and muscle of organised retailers. The highly fragmented nature of the Indian retail market makes it intrinsically unsuitable for private labels. Further, most organised retailers today have a far better regional presence, as compared to a national footprint. Although most players plan to ramp up their national presence as part of their future strategy, there are several hurdles in the way. These include factors such as real estate and distribution costs, regulatory issues, and lack of skilled manpower.

Sunday, April 17, 2011

The Latest on Private Label: There’s Good News & Bad News

Here is an insightful post from DigitalCPG.

It seems we report on private label’s increased market share almost every other week. But today is not entirely dreary for national CPG brands – we’ve got both good and bad news.

First, the bad news: “The global market share of private label food products is expected to double, from its current 25% to 50%, by 2025,” according to a new report from the Food and Agri Research division of Rabobank, an international financial services provider.

But the good news: “The report, however, also concludes that top or “A” brands are expected to retain their market shares. It’s the smaller, often local, “B” brands that will face mounting downward pressure on volumes, as retailers stop carrying them in favor of using their shelf space for their own private label brands.”

So even though the innovative and scrappy local brands are getting knocked off, national brands finally get a break.

Read more here.

Saturday, April 16, 2011

Hours spend on the internet by "her".

Half (49%) of core Social Network users average 1-2 hours per day on the internet for personal reasons; a third (33%) report spending more than 3 hours per day.

Almost half (48%) report being online for 5 or more hours per day for business. When looking at internet use for work or business, 20% are online 3-4 hours per day.

Almost half of female core users who use the Internet for business are considered heavy users, online for 5 or more hours a day

Implications for Advertisers/Marketers and Social Network Read here

Monday, April 11, 2011

Digital Marketing in Emerging Economies

The emergence & importance of digital is not lost on anyone, however a number of decision makers in the emerging economies still dismiss it as "too niche" and "too limiting" and continue to depend on traditional communication methods to reach out to consumers.

While there is enough and more easily available information to point towards the emergence of digital as the medium of choice of the consumers / shoppers we felt that this TNS report was good to share. The various emerging countries are covered by articles in GEMS – some of them touch upon the unique influence that the Internet is having on lives. Others reflect on the complex nature of the emerging markets and share some insights from emerging markets.

Sunday, April 10, 2011

Shopping does not need to be a lonely task.

Large format physical retail stores suffer from a very grave problem - there is total absence of personal communication. As a shopper who is servicing himself/herself you miss out on advice, suggestions, recommendations and much needed assurances which are made at the more "personal" stores which thrive on owner- shopper interactions.

Perhaps this is what leads to most shoppers seeking out a friend or two to go shopping so as to have the benefit of a 2nd opinion.

Virtual shopping can be a lonely affair unless the retail platform is designed to address the issue. At AaramShop, shopping has been designed to be a social process at every step of the way. As you shop you can read product and brand reviews of fellow shoppers and you could leave your own, not only on the platform but also on your personal social networking platform like your Facebook wall. You can also read reviews of the AaramShops to ensure that you chose the right AaramShop.

All brands and products are listed based on quality of shopper reviews and purchase behavior and the placement of products gets updated on a real-time basis powered by the shopper community.

AaramShop - Digital Marketing Solution for CPG

Rapid change in technologies and way the consumer interacts with and consumes media using various technologies has had a profound impact on the way brands use communication & marketing tools. However, this is just the start.

Brands will need to re-think their current strategies and would need to augment their current brand marketing strategies with web, social networks, mobile & whatever else comes along the way.

Delivering a seamless and an integrated experience across all consumer touch points represents a tremendous change, challenge and opportunity.

Read more here

The online shop wins in consumer ease.

A recent TNS Research article "If you build it, they will NOT come" highlights the issues pertaining to the size of the store and shopper attention.

From the small C-store to the large Super Center, there is a steady fall-off in the share of the store visited. In increasing the size of the store by a factor of five (20,000 to 100,000 sq ft) the coverage of the store by the average shopper drops by a factor of three (33% to 11%.)

This is akin to the spillage / wastage that the brand has to live with when it takes the mass-media advertising route. AaramShop on the other hand is designed to address this concern at it's very core. It ensures ease for shopper with easy product / brand access and minimalist time wastage. It also allows the shopper to go by past history and use top-up of essentials as a buying method.

Saturday, April 9, 2011

In Advertising, as in Life, Popularity Doesn't Always Equal Success

Remember that nerdy guy in high school whom no one paid attention to? That same nerdy guy was the most successful person at your 20-year high school reunion, right? That classic zero-to-hero story applies to advertising and is particularly worth noting this time of year when so many lists of "top ads" are published. You see, as in life, many equate ad effectiveness with popularity at first blush. But once you peel back the layers, that ad that made everyone giggle and was forwarded around the internet is now flipping burgers, while the ads that really made an impact -- those hard-working "unsung heroes" -- are creating results and success for the companies they are promoting. Many of the most popular ads are fun. But fun usually doesn't equal effective.

Monday, April 4, 2011

A S Watson Group eyes India entry

Another possible modern trade major from the pharmacy retail is about to enter India. The A S Watson Group, the Hong Kong-based international retail and consumer division of the highly-diversified Hutchison Whampoa Group, is understood to be in talks to have a presence in India. The Group, better known for its Watsons pharmacy retail chain across Asian and European markets, is said to be in discussion with a couple of retailers who specialise in the neighbourhood convenience store format.

India Retail Trends.

The BMI India Retail Report for the first-quarter of 2011 forecasts that total retail sales will grow from US$ 392.63 billion in 2011 to US$ 674.37 billion by 2014. Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of organised retail infrastructure are key factors behind the forecast growth. With the expanding middle and upper class consumer base, there will also be opportunities in India's tier II and III cities.

Mass grocery retail (MGR) sales in India are expected to undergo enormous growth over the forecast period. BMI predicts that sales through MGR outlets will increase by 145 per cent to reach US$ 21.35 billion by 2014.

However, what is interesting to note is that while the report looks at & reports retail trends across the modern trade - it seems to be silent on the 90+% of the trade which is controlled by traditional trade.