Online retailing in India and the role of transparency

Saturday, October 23, 2010

While we were packing the last minute shopping for our trip back to India last week, was my daughter that Toys'R'Us store to buy the new Barbie had seen with her boyfriend a couple of days to go, wanted. As we walked through the aisles of the store, it reminded me of my childhood. I used a lot of cars and each time I used to go to market with the love of my parents', we went to the toy store almost like a ritual. The store was probably less than 700 square metersand yet, these toys as hidden treasures - hard to find and it was up to the toy store owner, he thought, we could show how. None of the toys had whatever that means, and shopkeepers have been tailored for the price depending on the customer speaks. The entire range was probably less than several hundred toys. Yet, as consumers, it was difficult to find what you are looking for, not to mention that the prices of different shops to compare almost impossible. OnOn the other hand, my 4 year old daughter, knew the exact location of Barbie, that the store of 50,000 square meters Toys'R'Us!

The organization and maturity in the retail sector in India is inevitable. How retail is better organized, it becomes more and more consistency in selection and ease of use in various shops. However, retailers need to show something to be really successful - the transparency of information. Gone are the days when retailersmight pay a lot without worrying about what another store has been loaded into another part of town. Gone are the days where it may come as a dealer to buy without regard for customer service or the overall experience. In today's world where information is just a few clicks away, retailers must take to accept what they are doing no good to prove it. If you do not listen to the dealers to their customers, customers will find other channels (eg forums, blogs) to voice telephonytheir opinions, and what others say about the dealer. We should not even against the power of this community-based channels - Take for example the incident in which one of the installer from a large cable company (Comcast) has been captured on tape to stay in a customer's home. The video was posted on YouTube, which processed about 1 million times. Comcast had issued a formal apology to the customer.

The online channel offers a great vehicle for resellersshow that the leadership and they need to build on this capital. For example, a number of dealers have reservations about publishing negative reviews for products they have on their site. At first, this seems logical. However, I would say that with the presentation of the negative reviews on the site, the retailer is actually demonstrated a leadership position and authority, which indeed brought more confidence to customers by making loyalty and sales. Well, if there is aProduct on the site, which has consistently received only poor reviews, it is likely that customers do not buy this product. But instead, the customer is in the direction of a satisfactory product to draw in the category. This also helps the retailer better selection decisions, so that the cut always the best range of products. Overall, this is a win-win situation for retailers and customers.

Take another example - transparency inPricing. Costco - a discount store retailer in the United States is this. Buyers are savings for the entire season, where you can see what items can be transferred to additional savings available on which days this season. Some may argue that this is against the fundamentals of advertising rates, where there is a risk of "game" the system by the customer to purchase items during the campaign period, eroding margins. But in today's world wherePrice comparison services are provided with a click of a button is available, customers have a lot of options to begin with. If they know that their local dealer, a certain position in the past two weeks later, can be prepared, the decision to buy instead of buying to move the product from a competitor.

The Web channel can also be used to listen to customers and improve their perception of the retailers are. Some companies have even web-community managers whose job is appointed,participate actively in discussions and to solve problems early customers who are enrolled in these discussion groups. Take, for example, Starwood Hotels. You have a service coordinator, who is constantly looking for feedback and published the response to customer requests in the forum. FlyerTalk This post is a wonderful example of how Starwood Hotels (hotel chain leader) uses open Internet search feedback to questions and complaints and examined immediatelyEngagement with senior management. You will see so many customer complaints on this forum, but at the end of the day, nearly every customer is over the break with passion and empathy Starwood to justify the client's problems.

When customers ask for help, give us one, protest or feedback problem, it is required under the control of retailers, the opportunity to take consumers into enthusiastic fans unhappy. Maybe it's time, the call center does not think as an expenseCenter, but as points of contact and valuable marketing vehicle that will build a lasting relationship with customers can be.

In the Indian context, the web is not developed and as customer reviews and information on the buying experience is not readily available. Customers who have yet to decide on word of mouth as the primary vehicle for product research and purchasing. However, it's just a matter of time when the web is the primary channel for customers to findIndia - as the distribution sector becomes more organized, the customer segment more organized and use the online channel for research and shopping experience. Retailers who are building their foundation for transparency and customer orientation enjoy a sustainable competitive advantage over others. More articles on analysis and customer satisfaction can be found on my blog about online retail in India.

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