Retail Summit 2014 Or Mai…..

Retail Summit 2014 Or Mai…..

Initiated by NOP (National Outreach Program) Under LCCI (Lahore Chamber of Commerce & Industries)

Two days ago dated February 14, 2014; in the evening when I was so busy in my official assignments, suddenly I got a buzz at FB from one of our NOP co-founder Mr. Rashid Truabi asking “Are you coming to attend Retail summit by tomorrow?”; As my Saturday is off so I replied, “Yes! Why not, I will surly attend…..”. The second question made me astounded when he told me that I am one of the speaker of tomorrow’s summit and coming with the topic “Challenges to Retail Business in Pakistan”. He asked, because one of his speaker excused him at the eleventh hour, and at this time he found me online J. First I tried to refuse as I was stucked in work load and the second reason was the Valentine’s Dinner; but then being a part of NOP, I accepted it as a challenge.

Next day, February 15 2014 at 9:30AM I was feeling very honoured to sit along other speakers and panelists like Mr. Ferhan Butt, Mr. Waqar Khan, Mr. Qamar, Mr.  Rana Ahmed Noon (Head of OD & Training at Bata Pakistan), Dr. Shahid Zia (Member Steering Committee Akhuwat Health Services), Mr. Attique Ahmad (Director IT - WAPDA) and last but not the least Mr. Ahmad Qureshi (CEO Friends Diary & Stationary Mart & Printing Press). The audience were also wonderful, they all professionals came there to seek something special.

This morning sharing of information is at peak, speakers and panelists highlights many shades of Retail industries like:

• The significance of retail sector in Pakistan economy can be gauged from the data published by Pakistan Bureau of Statistics according to which retail and wholesale sector worth is Rs.3.6 Trillion representing around 18% of GDP 2011-12.
• 2011 report jointly published by Deloitte and Retail-Planet identified ten emerging economies, which includes Pakistan to register phenomenal growth in the retail sector in coming years.
• Pakistan have around 0.5 Million of Shops (Food); Less than 4% are Modern Trade Shops; Almost 2 million retail outlets in the country, where 80,000 retail outlets represent FMCG only and around 40,000 retail pharmacy stores.
• A new popular trend in Pakistan that is retailing on highways (CNG Pumps / Marts).
• Introduction of International chains gives the healthy challenge to local retail market and unstructured retail market of Pakistan.
• Change in the business model for Non-Food retailers. Birth of Specialized Store E4U, Diamond Life Style Shops.
• The adaptation and implementation of liberal government policy towards FDI (Foreign Direct Investment), Tax exemptions, for retailing coupled with changing buying habits and rising expectations of shoppers will continue to provide enough incentives to global retailers to explore Pakistani market for any expansion plan. And this International Modern Retail is raising standards for Customer Service & Quality.
• The Shortage of HR professional for managing retail business that causes various problems in the functional part of modern retailing process
• Lack of proper development of retail staff due to factors like “No proper discipline for the preparation of retail staff in our Academia; Lake of respect in society towards this profession; long duty hours considering staff as unskilled labour”. If the fraternity came from proper hands of academia and then it moves to the professional trainers in practical life, then how come it is not possible to practice proper supply chain management, proper customer relation management, proper retail store management; best utilizing of retail selling techniques and merchandising etc.
• The some popular retails chains in Pakistan:

o   Bakery

§  GOURMET

§  SHEZAN

§  CAKES N BAKES

§  DOC’E

§  MALMO

o   Grocery Chains

§  AL FATEH

§   POTPURI

§   HKB

§  JALALSONS

§  IMTIAZ

§  AKBARI

o   Footwear Chains

§  BATA

§  SERVIS

§  Borjan

§  STYLO

§  STARLET

§  ECS

§  EBH

§  METRO

o       Apparels

§  CHEN ONE

§  ENEM

§  IDEAS

§  AL KARAM

§  NISHAT

§  CROSS ROADS

§  BONANZA

§  UNIWORTH

§  EXIST

§  KHADI

§  TEXTILLION

§  JUNAID JAMSHED

o   Pharmacy Chains  

§  FAZAL DIN

§   SERVAID

§   ZAKA

§   7-CS’

§   CLINIX

§  MAHMOOD

§  QARSHI

§   HAKEEM  AJMAL

§  HAMDARD

§  UNANI

Overall this was a good brainstorming session; many case studies has been discussed from where attendees got awareness of what practices and modules being used to run better retail business; and I must say that all the professionals who were present there, regardless of industry or domains (HR, IT, Merchandising, Distribution centers, Business Heads & SME entrepreneurs) all of them should get some feed which might be directly or indirectly beneficial to them and society and overall retail industry of Pakistan. 

Regards

~Khawaja Imran

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A Batakh of “Retailscape” - Session with Retail Gurus

Last evening dated 06 February, 2014, attended the 17th Session of PHCF (Mughal Chapter) with the topic “Retailscape In Pakistan”. It was a great experience; The keynote speakers Mr. Shahid Hussain (CEO Services Sales Corporation Pvt. Ltd.) & Mr. Nadeem Rehmani (VP & Operations Director Metro Cash & Carry) briefing towards retail sector of Pakistan was awesome.  Both of the speakers share the retail models of their organizations and then highlighted the fact that how retail industry of Pakistan will flourish. What challenges they are facing and how they are dealing with those challenges. They describe how important is the supply chain area, replenishment and merchandising for retail network. Especially I personally like Mr. Shahid Hussian quote that the most important three things in the organization are People, People & People.

 

One thing that I personally felt that both of the gurus gave the low rating to Customer Services, their focus are more on other functional and operational processes of retail. Yes retailers are part of an integrated system called the supply chain, along with this all other functions and operations are also equally important; But Retail is all about Customer, and all the Ps of marketing mix are aimed for their ultimate target that is the Buyer / Customer. Buying decisions are often driven by the 3 P's; Price, Product and People. While prices are negotiable and product is interchangeable, a weak link in a 'People' department is a sure fire way to slowdown the progress of any retail model / business.

As we see that in Pakistan and also globally the brand loyalties die a little every day and especially in the retail field. It's not uncommon for a shopper to take a leap, after years of loyalty simply due to poor Customer Service. The market is competitive enough for them to do so. Shoppers with high buying power and shoppers who only have the buying power of their needs, both are now a lot more choosey with where they spend their earned money and they want to ensure that they are getting the most stretch out of their spending. This stretch includes how well they are treated by the staff. That is why a-part of having renowned brand, a-part of well-designed product, a-part of right time deliveries still we need “SALE” promotions; some organizations provided the name “seasonal sales” and some named it “weekend deals”.

These gammix are required for getting competitive edge but believe me people are so accustomed to mediocre service that any additional effort to improve the quality of the service can seem extraordinary in the eyes of the Customer. Even the basics like eye contact, using please and thank you and addressing your customer by name can set you light-years apart from your competitors. In both of the described retails models who work with low and medium margins have to play with quantities; higher the selling quantity will raise the profitability. But where to liquidate these huge quantities; who will help them to achieve their targets; who will push them to make better plan and budgets for next season; who will make them to think the balance between supply and demand. Yes it is the important element of business called Customer / Consumer. I always use this quote while in my trainings of sales associates that instead of selling a product try to win the customer because with your win you will get the emotional bank account and you can sell anything you name it. In the last I end my note with the statement that if the competitive price of the product is in line, customer service adds perceived value, making your company a better choice for the consumer.

Regards

~Khawaja Imran

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