Challenges, Opportunities & Future of Offline Retail during and after covid 19 lockdown time

Challenges, Opportunities & Future of Offline Retail during and after covid 19 lockdown time

What we should do and know as offline retailer

·      Tourism and retail will be the most badly hit segments (as per economist) is it true?

o   Yes it is true based on all the current surveys published

§  People will prefer health food made in home, get to gather will be less thus business will be effected

·         How the premises will be maintained in covid 19 to be highlighted

§  We need to tilt our business modules a bit and show it to customer that how health challenges will be taken cared

§  Disposable money saved form tourism will be used somewhere else so we will have more money on hand domestically  

o   Rent is big part in retail how that to be managed?

§  Discuss with landlord and request them to not charge for the lockdown period

§  We also need to have other models then fix rent (like profit sharing) for another 6 months

§  At this point all are really helpful thus landlords will be helpful

·         In 500+ real estate developers webinar majority of landlords said that they will help in rent negotiations

§  In some of the scenario’s we need to lay off some of the manpower

·         We need to discuss it with manpower and identify other than salary options like salary in proportion of business generated or revenues generated

§   Needs based retail products will be on track on the spot but luxury products will be affected more

o   Cashflow management:

§  Money is on hand with people is more compared to pre covid 19 time but people are not spending it and saved it for some urgency. Once lockdown is open cashflow will be positive in Need based then want based and lastly will be luxury products

§  Perishable item based model will have more losses in starting of the business time. As we are not sure how many customers will come to buy

§  How luxury product brand should switch to other segments:

·         Less focus should be on marriage based products

·         Affordability will be the key (Be creative and switch product line)

o   Should we curtail marketing expenses after covid 19 lockdown time?

§  Should be controlled but not totally stopped  

·         Should be even continued in period of lockdown also

§  Marketing rent of hoardings and other facilities to be negotiated and reduced for offline marketing

o   How this covid 19 will change the work environment? and is it for long term or short term?

§  In country like India where social gathering is part of living will have short term work culture of work from home (it will be ling lasting in developed countries)

§  It is expected to increase cleaning and hygiene habits globally

§  Once the lockdown time is completed people will once again start from offices and work environment

§  The customer will be more health conscious and will be looking forward to ensure that how you are sanitizing premises, how the process is managed (Focused on not touched module wherever is possible)

o   How we will be competing with online businesses as it is expected that they will back with Discounts once again:

§  We need to use online businesses weakness as our strength (5 senses : touch & Feel, smell, listen)

§  Online business was there and we have survived thus we will survive if dealing in offline businesses

§  We need to strengthen our services which will make us compete with everything online platforms are offering

§  Passions is needed as market might take more time them expected

§  The product showcase can be shifted virtually for many of the offline business will also help in running business

o   What should be our strategy:

§  You have to ensure connectivity with your customers (One to ne marking based on their taste and likings)

§  Discount on luxuries items will help to some extent

§  Customers will be focused on quality over quantity post covid 19 thus quality should be focused on all the areas of business we can

§  Home delivery option to be focused

§  Easy pay and EMI options to be explored

§  Ina any crisis Gold goes us thus gold/ Jewellery should be focused by jewelers

§  The certificate of test been done for employees who are involved with customers including home delivery or display to be highlighted

§  For profitability we should focus on:

·         Negotiation

·         Cost cutting

·         Inventory management (Not cutting or reducing inventory) : Redefine the rules

Credits: Webinar on: Challenges, Opportunities & Future of Retail by: DECHSEPT, Stratefix & Startup Vapi (Special Thanks to speakers: ketan shah (From Shah virchand Govanji Jewellers), Chirag Bafna (From Falafel lovers) and Sakshi Dhameliya (From Raagsutra)