Industry Profile:

Introduction The Indian retail segment accounts for 22 per cent of the country's gross domestic product (GDP) and contributes about 8 per cent to the total employment. India continues to be among the most attractive investment propositions for global retailers. India has emerged as the fifth most favourable destination for international retailers, outpacing the UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail Development Index (GRDI) 2012. "India remains a high potential market with accelerated retail growth of 15-20 per cent expected over the next five years," highlighted the report. Market Size India's retail sector is worth US$ 350 billion and is growing at a compound annual growth rate (CAGR) of 15 per cent to 20 per cent at present, as per a PricewaterhouseCoopers (PwC) research report titled, 'Winning in India's retail sector: Factors for Success'. Mass grocery and apparel are the two most favoured segments for foreign direct investment (FDI) in multi-brand retail in India, according to a study titled 'Indian Retail Market-Opening More Doors' by Deloitte Touche Tohmatsu India. The FDI inflows in single-brand retail trading during April 2000 to December 2012 stood at US$ 42.70 million, as per the data released by Department of Industrial Policy and Promotion (DIPP). E-tailing The Indian retailers are using a mix of formats, of which a relatively new but rapidly growing retail format is the online channel, which offers consumers convenience, price benefits and the ability to shop around the clock. Though in a nascent stage, India's online retail market is growing at double-digit rates and is likely to be the next format that retailers will incorporate into their array of channels. The Indian digital consumer industry, e-tailing is set to become a Rs 53,000 crore (US$ 9.71 billion) market by 2015 from the current Rs 3,600 crore (US$ 659.34 million), as per a November report by Avendus Capital Pvt Ltd. Edukart.com, an online education company is planning to extend its franchise network across India. The company aims to open more than 50 centers in the coming year. The focus of such expansion will be metro cities, tier I and tier II cities.

Retail in Rural India Rural chains in India are focussing on hinterlands in a big way. For many companies, a large portion of their revenues comes from rural sales. The companies thus are aligning their marketing strategies in accordance to the requirements of their customers in rural areas. Turtle, one of India's leading men's lifestyle brands unveiled their limited edition collection of Khadi menswear with the theme "Ecological Weave". This is an initiative which not only hopes to revive the khadi industry and the livelihood of its weavers and their families in rural India, but is also poised to revolutionalise menswear fashion. Investments Interem, relocation and warehousing company, plans to invest Rs 200 crore (US$ 36.63 million) over the next three years, as part of its plan to increase its business in the consumer retail segment in India Tesco Plc has set up an Indian subsidiary to buy fresh and processed foods from the country for its global stores, a move that could help the world's third largest retailer to develop local expertise before opening shops in India

Italian luxury clothing and accessories brand Versace 19.69 has announced its entry in India in partnership with fashion apparels and leather exporter, Majgenta Fashions. Versace plans to open about 70 stores in the country with an investment of US$ 25 million over the next three years. "India is a very important luxury market for us that is growing at a rapid pace... We are here to bridge the luxury and affordability gap," said Mr Theofanis Papadas, CEO, Versace 19.69 L'Oreal SA plans to invest Rs 970 crore (US$ 177.65 million) in India, a market that the French cosmetics giant considers amongst the top five in the world Swedish fast-fashion giant Hennes & Mauritz (H&M) has asked leading mall developers to block space for its initial stores in India, as the world's second largest fashion retailer hopes to open a local office in the next three months British billionaire Philip Green owned Topshop is finalising plans to enter the Indian retail space through a local joint venture, as global biggies revive interest in India on the back of recovering consumer sentiments and the recent reform push Promart Retail, a value format concept in lifestyle, is looking for pan-India expansion that will cover cities. For extending its retail presences the brand has planned to open 100 stores by the end of 2013 The World of Titan, India's largest watch retail chain, plans to expand its presence via franchising in high traffic areas, including high streets and malls with small format stores

Government Initiative

The Government of India has approved nine foreign direct investment (FDI) proposals amounting to Rs 1,140.14 crore (US$ 208.82 million), based on the recommendations of Foreign Investment Promotion Board (FIPB) Foreign retailers can enter India by forming a joint venture (JV) company that could have multi-brand retail stores. "Alternatively, the foreign investor may also consider acquiring 51 per cent stake in the existing business set-up of the potential Indian joint venture partner," added Mr Gaurav Gupta, Senior Director, Deloitte Touche Tohmatsu India The Government has passed a cabinet note and permitted FDI up to 51 per cent in multibrand retailing with prior Government approval and 100 per cent in single brand retailing, further liberalising the sector. This policy initiative is expected to provide further fillip to the growth of the sector Opening up of FDI in retail and insurance sector will generate lakhs of additional jobs in India, as per global human resource consultancy, Mercer In a major step aimed to boost the Indian civil aviation sector, the Cabinet Committee of Economic Affairs (CCEA) has relaxed the FDI norms in aviation, which will allow foreign aviation companies to invest in Indian aviation companies. The foreign carriers can now pick up to 49 per cent stake in domestic Indian aviation firms

E-tailers Selected:
Hypercity India Ltd.

Company Profile:

There's more to Discover

HyperCITY provides an international shopping experience, where customers can shop in comfort in a large, modern, & exciting environment. With the widest range of products sourced from around the world, HyperCITY is India's favourite Hypermarket. Take your pick from the latest in : Foods, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion.

products and assortments:

HyperCITY Extended Warranty:
Our electronics come with a unique feature. Peace of mind! Pay a nominal fee. We'll cover mechanical & electrical breakdown. Get the benefit of genuine parts. Free parts and no labor charge. Hassle free repairs. Inflation proof. Free replacement if not repaired. For details and Terms & Conditions, click here. Or call our dedicated toll free no. for EW claims 1800-209-9993 *Note: The facilities listed above are at the discretion of the retailer

YES - We accept all International Cards:

HyperCITY has tied up with ICICI bank for swiping international cards of foreign nationals on separate EDC machines. The following are the benefits of the facility to these customers: The customer can choose to make payment in home or foreign currency. The conversion from foreign currency to INR will be at the current prevailing rate. Master/Visa will not charge any extra charges to the customer. The customer gets a bill for the exact amount from the card issuing bank, in home currency, on a charge slip.

Home Delivery:
Home Delivery: HyperCITY is committed to extending high standards of customer service even beyond shopping through our Home delivery service. Our aim is to delight our customers through timely delivery of goods, every time. HyperCITY's home delivery service is aimed at setting the industry benchmark. The mantra of 'Delivery on TimeEvery Time' is what underlines the service. Also to ensure that the service standards are raised and not compromised HyperCITY has decided to manage the process in-house. Home Delivery Team: Home delivery will be handled by a highly capable, friendly and well groomed team comprising of delivery people, installers, customer service associates etc. who would be adept in handling installation of goods ranging from furniture to electronics and health equipment etc.

Exchange Policy:
We are pleased to offer exchange within 14 days of your purchase on production of the original cash memo. The product should be unused, undamaged, in the original packaging and in saleable condition. Jewelry, watches, cosmetics, mobile phones, MP3 players, innerwear, swimwear and any altered merchandise will not be exchanged. All appliances & electronics items will be exchanged subject to the warranty & guarantee terms of the manufacturer, with a valid receipt. Furniture items will be exchanged or refunded in any circumstances unless it has a manufacturing defect in the first year of its purchase and if it is not repairable by us once the furniture has been assembled at the customer's address. Terms & Condition We issue credit note/s valid for 1 month from the date of issue. All credit notes will have to be fully utilized in a single transaction. All cash transactions will be refunded in the form of credit note. Credit card transactions will be refunded back to the credit card account or credit note as per customer convenience. Under no circumstances we issue cash refunds. In case of loss of credit note/s, no duplicate will be issued. Please retain your cash memo in case of any future reference of your purchase. In the event of any dispute, the same shall be subject to Mumbai Jurisdiction. Repairs & Warranty: Comprehensive after-sales services are provided through an exclusive Service Centre backup facility, on products that have a guarantee or service warranty.

Gift Vouchers :
HyperCITY Gift Vouchers are available for both corporate and personal gifting. Our Gift Vouchers are available in denominations or Rs.50/-, 100/-, 250/-, 500/-, 1000/-, or 2000/- and can be used for: Rewarding or gifting your employees/distributors/dealers Gifting clients Sales/marketing promotions Festival offers Personal occasions Uniform allowances For personal gifting, HyperCITY Gift Vouchers are ideal for special occasions like anniversaries, birthdays, festivals, rewards or other occasions. These Gift Vouchers are valid at HyperCITY stores for only 18 months from the date of issue. They cannot be encashed or refunded, and can be redeemed only on purchases.

Parking Facility:
Parking facility is available at HyperCITY and charges will be levied as under: 4-wheelers : Rs.20 2-wheelers : Rs.10 This money will be refunded to customers, upon purchases of Rs.100 and above, on the same day itself.

Kodak Picture Kiosk:

Make something special in seconds. It's easy! There's always something new at the Kodak Picture Kiosk. Try our collage options. Makes a great gift for any occasion. Create holiday greeting cards and invitations in seconds. Make simple edits like zoom, crop and remove red eye. Enlargements are one touch easy.

Furtados:
'Think Music, Think Furtados. Check out the biggest and the best brands of musical instruments within Hypercity at the shop that has heritage of 145 years in providing a variety of gear to musicians across the country.

Titan Eye+:
Titan Eye+ offers wide range of stylish and contemporary eyewear through exclusive optical stores across the country. They provide zero-error eye testing, international designs and style trends, wide range of distinctive, attractive frames, scratch-resistant lenses in a friendly environment with specially trained retail & clinic staff at selected Hypercity stores.

Restaurant and Cafes:

Enjoy lip smacking food, sit down for a relaxing cup of coffee, pick temping ice creams or donuts, enjoy wide collection at of wines and liquors or unwind post shopping at KFC, Donut Baker, Swirls, CCD, Drops Total Wine, The Soup Bowl or Fresh Basket bakery at HyperCITY.

Crossword:
Be informed, entertained and enlightened at the Crossword Book Store where you will find the widest range of books, movies, music, toys, stationary etc. now also available at Hypercity.

Enrich Salon:
Get pampered at the best in class Enrich Salon which is known to be the blend of creative styling, concepts and exceptional services at affordable prices.

Fabric Spa:
Make use of world class laundry facility from qualified fabric care experts using the world class equipment, the latest in technology and above all, impeccable service. A spa like experience for your wardrobe while you shop at HyperCITY.

Travelguru:
Get the best prices on flights, hotels and holiday packages across India and the world at Travelguru. Come and make planning and buying a holiday or a business trip easy and convenient at Hypercity.

ATM:
Hypercity aims at making your shopping experience as convenient as it can get. We provide ATM services within the store to meet all your on the go money requirements.

Organic Haus (Coming Soon):

The time has come to reflect on nature. At Organic Haus you will discover the lost knowledge of natures gifts. For the sake of our health and the environment, the German and Austrian organic manufacturers that we have chosen for you are qualified experts in their field; arguably the worlds best. They respectfully offer us all their expertise and commitment so that we can offer this unique organic assortment here, in India.

Trust Pharma:
Now you can buy medicines from a trusted source under the supervision of trained pharmacist and managed in specified storage condition to maintain their quality at Trust Pharma store at Hypercity

About Our Brands

We have a wide array of exclusive brands across all categories. These brands ensure increased value to our customers through superior product offerings, quality and uniqueness at great prices.

Food & Grocery

Everyday Everyday is dedicated to bring wholesome food to your family at great prices. Our products are packed under hygienic conditions and are priced to offer real value, every day. HyperCITY encompasses everyday foods like cereals, spices, flour, pulses, dry fruits and other products

Fresh Basket Every Fresh Basket product guarantees freshness and quality on a daily basis, with all the goodness locked in. Fresh Basket offers the freshest selection of meat, seafood, fresh produce, freshly baked breads, specialty bread, etc.

Waitrose Voted the top supermarket chain in UK. Exclusively available at HyperCITY. Come and taste the best of teas, coffees, juices, jams and more.

Terzo The Power of Super clean is now in your hands. Introducing Terzo Home cleaners with power of 3! The range comprise of power cleaners, Everyday Cleaner, Toilet cleaner, Floor Cleaner & Utensil Cleaner.

Home

Ebano Discover stylish essentials for your home with HyperCITYs exclusive brand e b a n o. e b a n o presents a selection of basic products with a modern appeal. Bringing your home to life with contemporary designs, vibrant colours, great value & is present across Utensils, Cutlery, Bakeware, Crockery, Glassware, Pots'n'pans, Implements, Bed linen, Towels, Cushions, Table linen, pillows and more.

Avorio Make your home a more luxurious place with Avorio, the exclusive brand from HyperCITY. AVORIO offers exclusive, versatile and classic designs to enhance your lifestyle. Avorio spans Implements, Pots'n'pans, Glassware, Cutlery, Crockery, Towels, Bed linen, Table linen, Duvets & quilts and more.

Fashion

Joojoobs Discover Fashion for your little ones!! The Joojoobs range of comfortable garments for infants includes designer infant wear and infant western wear. The range combines the finest quality fabrics & vivid colors to create a high value range of infant wear.

CITY Style Offers the latest trends in clothing in the market, at prices that are affordable.

River inc. A range of quality denims for men, ladies and kids. The range comprises of basic denims, fashion denims, tees, cargos, denim shirts and jackets.

Appliances

Technix Our Technix range of appliances will be available across microwaves, cook-tops and mixer-grinders.

Sports

Raleigh The Raleigh Series of bicycles are available exclusively at HyperCITY. Raleigh is one of the worlds biggest brands in Bicycles. Raleigh bicycles are simple, elegant, efficient and fun. They are designed with care and fitted with latest technology. Raleigh has the following varieties in bicycles - Mountain Sport, Platinum, Juvenile, Toy cycles, etc.

Maxit The Maxit line of sports equipment and apparels is available exclusively at HyperCITY. Maxit stands for - Maximum Range, i.e. it offers a superior line up of sports gear at great value. Maxit is available across sports categories like cricket, football, basketball, volleyball, boxing and baseball.

business philosophy:
Our Vision & Mission
TO BE AN INTEGRAL PART OF CUSTOMER LIVES, BY OFFERING THEM HIGH QUALITY SHOPPING EXPERIENCE THROUGH GREAT PRODUCTS AT EVER BETTER PRICES.

Partnering For Success

HYPERCITY FEATURES THE BEST GLOBAL DESIGN, INFRASTRUCTURE AND SAFETY FEATURES BY PARTNERING WITH THE BEST TALENT FROM AROUND THE WORLD.

Caring For the Community

HYPERCITYS COMMITMENT TO THE ENVIRONMENT EXTENDS BEYOND ENERGY-SAVING INFRASTRUCTURE AND DESIGN.

Parent Company

K Raheja Corporation Group

Category

Food Retail

Sector

Lifestyle and Retail

Tagline/ Slogan

Big Store. Big Savings

USP

Extremely huge 1,200,000 sq. ft. supermarkets with a myriad of products and services ranging from food & grocery, electronics, furniture to heath etc. STP

Segment

Supermarkets food chains

Target Group

Price sensitive individuals

Positioning

Provide an international shopping experience, where customers can shop in comfort in a large, modern, & exciting environment for the widest range of products sourced from around the world SWOT Analysis

Strength

1. Leader in the Indian retail sector with prior experience in running retail stores such as Shoppers stop, Inorbit mall and crossword before establishing Hypercity 2. Accomplished over 12 Hypercity superstores in India in all major cities such as Mumbai, Hydrabad, Pune, Bangalore etc. 3. Excellent management team with experience of many years in running retail business 4. Large economies of scale compared to competitors

Weakness

1.Huge infrastructure costs involved in Hyercity projects 2.Low possibility of success of this store format in lower tier-2 and tier-3 cities 3.Huge operating costs put an upward pressure on prices

1.Expansion in other major cities of India such as Delhi, Lucknow, Chandigarh etc. 2.Development of its own in-store brands 3.Massive advertising and brand promotion Opportunity 4. Putting sound customer loyalty programmes in place

Threats

1.Increasing competition from other retailers and store formats 2.Recession in real estate and infrastructure sector 3.Rising inflation for food and fuel prices Competition

Competitors

1.Carrefour 2.Megamart 3.Tesco

Comparative analysis:
Parent Company K Raheja Corporation Group Tesco Group

Category

Food Retail

Retail

Sector

Lifestyle and Retail

Retail and lifestyle

Tagline/ Slogan

Big Store. Big Savings

Every little helps

USP

Extremely huge 1,200,000 sq. ft. supermarkets with a myriad of products and services ranging from food & grocery, electronics, furniture to heath etc. STP

One of the most prominent retail chain names globally

Segment

Supermarkets food chains

Retail and departmental stores Middle class and premium class households

Target Group

Price sensitive individuals

Positioning

Provide an international shopping experience, where customers can shop in comfort in a large, modern, & exciting environment for the widest range of products sourced from around the world SWOT Analysis

The retail store which helps customers in getting their daily needs

Strength

1. Leader in the Indian retail sector with prior experience in running retail stores such as Shoppers stop, Inorbit mall and crossword before establishing Hypercity

1.Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services; telecoms

and internet services etc 2. One of the largest company of any company with a primary listing on the London Stock Exchange 3. Own their private label brands which gives high brand equity in market 4.Tesco follows new advances packaging techniques which gives unique differentiated position in consumer minds 2. Accomplished over 12 Hypercity superstores in India in all major cities such as Mumbai, Hydrabad, Pune, Bangalore etc. 3. Excellent management team with experience of many years in running retail business 4. Large economies of scale compared to competitors 5. Has over 520,000 employees worldwide 6. Has nearly 6500 stores across the world across 14 countries 7. Tesco brand has established due to its innovative marketing and advertising strategies

Weakness

1.Huge infrastructure costs involved in Hyercity projects 2.Low possibility of success of this store format in lower tier-2 and tier-3 cities 3.Huge operating costs put an upward pressure on prices

1.Company faced controversies which created a few issues 2.Tesco has limited presence inemerging countries

1.Expansion in other major cities of India such as Delhi, Lucknow, Chandigarh etc. 2.Development of its own in-store brands 3.Massive advertising and brand promotion Opportunity 4. Putting sound customer loyalty programmes in place

1.To enter into emerging markets and expand the area of its operations 2. Leverage the digital media in order to expand its reach 3. Acquisition of smaller chains and tieups 1. Design can be imitated by competitors so constant innovation required to achieve uniqueness

Threats

1.Increasing competition from other retailers and store formats 2.Recession in real estate and infrastructure sector 3.Rising inflation for food and fuel prices Competition

2.High merger acquisition could lead to handling large business issues 3.High competition from supply sides as maintaining relationship with them is big concerns for companies

Competitors

1.Carrefour 2.Megamart 3.Tesco

1.Walmart 2. Carrefour 3.Debenhams

Online Merchandising: What it Means, Why it Matters, Why its so Misunderstood

Over 16 years ago, I took my first job in e-commerce. In today's terms, I was an Online Merchandiser, but back then, no one knew quite what to call it. My tool set was not sophisticated, nor were the metrics I used to do the job. I was relying on my "merchant intuition" and a lot of manual processes to make products in the online store discoverable and desirable to customers. I managed a calendar of promotions and placements for the main pages of the site, synching up with my retail and mail order counterparts on the photos and messaging, making adjustments to optimize for the online channel. Since then, the job has evolved into one of the most critical and sought after positions on an ecommerce team. According to the 2011 Shop.org/Forrester State of Online Retailing report, ecommerce leaders planned to hire online merchants more than any other position last year. Despite the rise of the role's importance, I am continually surprised by the number of companies who are either un-resourced or under-resourced in this critical area. In fact, I find online merchandising to be a largely misunderstood role in more cases than not. So, what is online merchandising and why does it matter? Merchandising, traditionally speaking, is largely about the product on the shelf; what's offered in the store. But, there's more to it. Take a look at this definition of merchandising: "merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase" It's the second part of that definition: "display of products in such a way that stimulates interest and entices customers to make a purchase" that is at the heart of online merchandising. Online merchants typically don't select or manage the inventory, but they optimize the performance of the inventory in the online store environment based on customer behavior. Today, the online merchandiser's tool set is rich and robust: sophisticated on site search tools, product recommendation software, product videos, side by side product comparisons, enhanced visualization tools, reviews and ratings, the list goes on. Site analytics help merchants identify how placement and presentation decisions are impacting conversion, basket size and sales. Site administration tools have advanced to help "non-technical' online merchants make presentation changes easily. A/B testing tools allow for ongoing testing, learning and optimizing based on what works. More than ever, online merchants are focused on site productivity; getting maximum product engagement, conversion and sales per order.

If you operate an online store and you don't have at least one really strong person in the online merchandising role, chances are good that you're missing opportunity to present products in a more compelling way, improve your conversion rate and increase your average order size. If your assortment is large, you need a team of these people responsible for each of your major categories. If you've purchased product recommendation tools or other point solutions to optimize your site, you might not be getting your maximum value without good site merchants mining the data, fine tuning the business rules and driving better results. All that marketing money you're spending? Not as productive as it might be if he site you're driving traffic to a site that isn't merchandised well. What makes a great online merchant? Successful online merchants often have a "traditional" merchandising or buying background. They are data superheroes that aren't afraid to throw in some intuition when it comes to romancing and selling a product. They don't have to be tech heads but they have to be comfortable doing things in a technology based environment and driving improvements with technical tools. Bonus points if they have actually worked in a physical store and worked with real, live human customers. (I can't tell you how much of a difference that can make). They're collaborative, driving (or participating in) decisions about site design, new features & tools, marketing offers and product mix. So, if the role is so important, why is it often so misunderstood? I've been thinking about this a lot in the last few months. I've had numerous assignments in the last year that have been focused on helping clients understand and operationalize the online merchandising role. Here are some observations that might explain the confusion: Product focused or "merchant driven" organizations tend to think that merchandising is all about buying. The online merchant role is confusing because it usually does not include the buying function. Truthfully, store operations people and visual merchandisers would probably understand the online merchandising function more than buyers, as the roles are much more similar. Marketing focused organizations tend to center their e-commerce efforts on digital branding first, commerce second, with site ownership falling under marketing. Pieces and parts of the online merchant's job may wind up in various marketers' or agencies' hands vs. consolidated into a dedicated function. Technology focused companies may confuse online merchandising with UX design and/or marketing, lumping part of it in with "the front end" functions that usually fall under marketing. They may also assume that online merchandising tasks should be automated via algorithms alone. Companies new to e-commerce are often surprised by the heavy amount of site administration and merchandising skill required to have a successful online business. They worry about the platform, they worry about SEO and SEM, but they tend to overlook the importance of minding the store, or they think that those tasks "just happen" automatically. After all, this is the web, right?

Not to be overlooked, the scarcity factor for skilled online merchants only adds to confusion with the position coming into demand more and more, some companies may choose to "do without" or morph the role to meet the skills of the people they have or are able to find.

If you're hiring for your online merchant team or re-positioning/re-defining the role, here are a few tips to help you avoid common mistakes: Hire as senior/experienced a person as you can find or afford: the skill is specialized, the tool set is sophisticated. You'll get more for your money if you hire someone who'd done this before, especially if you don't currently have this skill set in house. Online merchants should report to the leader of e-commerce. Don't make the mistake of having them report to buyers; you want your online merchants to make site placement decisions based on customer insights and data, not based on what slow moving product needs to be promoted. Be sure that the online merchant isn't a fancy title for product data administrator. Product data is of course critically important and the product data administrator is equally important. But, it's a different role than the online merchant. If you have heavy site data admin needs, hire people to do that so that your merchants can be merchants.

And, don't forget. Your online merchant is no longer just about merchandising the web site; they've also got the mobile site, the tablet app and a host of other placements and surfaces to look after. Chances are you need more than one.

Techniques of online merchandising :

If you're selling a physical product which requires delivery then merchandising activities could evolve around the category, product, range, accessories and indeed delivery itself. If you're merchandising a less-tangible product like a service or piece of software, you could merchandise a need, benefits, the service, related products as well as payment options. Having been asked a few months back to create a presentation on basic merchandising tips I felt compelled to share them with fellow marketers.

Price, Place, Promotion, Product.

The tried and tested 'marketing mix' plays an important role in online merchandising. However, knowing what to do with this and how to translate this into an effective trade plan will differentiate your offering from your competitors. Knowing how to complement this will help you stand out, and conversion management will provide the edge you need.

Before I start out, this isnt intended to be a nitty gritty in-depth guide to online trading, but instead a view of merchandising and conversion management basics Ive found useful over the years.

1. Perceptive propositioning
Between your product and marketing is the proposition. Selling ice to Eskimos is all well and good to prove you're a great salesperson, but in reality it'll not generate brand trust or when reality hits and they discover the products not right for them. Getting the proposition right isn't as easy as it sounds. The first touch point is usually through marketing; online, in-store, TV, direct mail to name but a few channels. Understanding that your online merchandising journey doesnt necessarily start online, let alone start on your website, is a significant first step to getting the proposition right. The message must carry itself consistently and clearly across the customer journey. And even then there are multiple messages being carried by your marketing yet one website to deliver this, not 10 sales assistants in your store. Consider the selling of a hotel stay. Are you selling a place to sleep or an experience? Is it functional or aspirational? How does your website make the customer feel? How do they want to feel? Does this carry across your marketing message through to the website? A low-cost budget hotel sells on price and functionality. The hotel room the customer buys into is the end goal. Conversely the high-end hotel is selling an experience. Sleeping in the room is only part of the experience. The proposition in both cases is what youre ultimately selling, not the product . Its rarely as clearcut as this though. Brands serve many types of customer and so getting the proposition right in the way you merchandise your products or services requires a deep understanding of your customer and product affinities. Getting into the mindset of your customer will also help you get into the forefront of your customers mind.

2. Pricing and promoting effectively

Cornered a niche? Playing in a competitive field? High-end? Budget brand? No matter where you are, getting the price and promotion mix right is critical.

Consider a subscription site. If you overcharge, you may lose business to a competitor. Undercharge and you may have reduced your revenue potential, yet possibly claim more market share. Are you growing a long-term business or short-term profit? This is as much about your business and trading objectives as much as the products and target consumers. If youre a high margin retailer, then you may have more bandwidth with price and subsequently offer more price based promotions. This certainly has its drawbacks, especially when you discount so often that customers refuse to pay full price knowing that if they hold out theyll grab a bargain. If not, a competitor will jump in. Do you act first? Or wait for a competitor to gain the early advantage. For a low margin product or business, reducing price becomes the last resort and promotions pivot around added extras. Loyalty schemes often drive repeat business through additional rewards for ongoing loyalty, deferring the hit on margin. Or perhaps you focus on high profile loss leaders, creating a perception of price competitiveness. If youre in a competitive niche, with a limited set of suppliers youll need a unique selling point to stand out or strong brand advocacy to attract and retain customers. Another point of differentiation is effectively packaging your price. From experience in travel, this has certainly come out as a key concern for customers over the years in not knowing or understanding the full price of a product until they pull out their credit card. Pricing effectively takes on many forms yet one of the most common, overlooked aspects for e-retailers is the final price. I wont attempt to try and explore the nuances and annoyances of pricing and checkout abandonment - there's already much written about this. The key finding Id share from over the years is that no matter how good or bad your user experience, in a price sensitive economy, customers will more often than not persevere. This is certainly not a good excuse to skip over a good online experience but optimising your site without getting these two Ps right may well leave you spinning your wheels. Get the other two Ps right in Product and Placement and youre well on your way. My tip would be to ensure you remain competitive within your market as much as decreasing attrition.

3. Context is king
Heres the end goal of online trading: to sell the right product to the right customer at the right time at maximum profitability. Merchandising within the right context is as much about the position within the conversion funnel. Taking a potential customer from prospect to customer to advocate is a key fundamental of conversion management. Merchandising is concerned with getting the right message or product to the customer, presenting the product in the right way and at the right time. Merchandising should pivot around the customer's needs, but can also be based on what the customer doesnt think they need. They dont need the latest touch screen gadget but they may like one, or may not even know they'd be interested until you show it to them. Merchandising doesnt directly concern itself with the user experience, yet this is the foundation of good merchandising. Matching a customers needs, whether apparent or not, to your product. As digital marketers we realise consumers shop in many different ways. Some dive straight into a product, others will take a more general browse. Merchandising context can take into account many aspects of the user journey. Here are a few examples:

First visit? Second? Prospect? Existing customer? Time of day important if youre targeting at-home mums during the day. Demographics this could include affluence or life-stage. Geographic location think of local targeting. Source of visit - such as search engine, email, direct, landing page. Ive known businesses that employ a role to simply merchandise the companys various homepages and nothing else, such is the importance placed on the 'shop window', or teams which literally update offers and prices throughout the day based on demand and availability. Consumers are savvy creatures. I certainly am. I should be, after all, I know the tricks of the trade right? Yet I'm still duped into buying things online that I dont need or didnt intend to buy because it was surfaced at just the right time.

Thats clever contextual merchandising. And I love it.

4. Lubricate your path to purchase with a good user experience

A good user experience lubricates your purchase funnel, merchandising provides momentum and direction. This is where the lines of traditional merchandising and conversion rate optimisation can blend into an awesome user experience. You could argue that Amazon doesnt offer a great user experience yet it somehow drives phenomenal sales. Id disagree. The experience is efficient. The one-click add-to-basket is addictively good as a consumer. Its actually far easier to purchase on Amazon than many of the leading e-commerce sites. Yes, theres a lot of clutter and as a usability practitioner it goes against many recommendations, yet the impressive sales figures suggest otherwise. Have you visited Jacob Nielsens web usability website? Ive been an avid follower for over a decade yet the design has barely changed. His principles have endured. However, I'd argue Jacob is not trading his website. If the user experience reduces friction, strong merchandising guides them through your site, motivating and inspiring customers. Many websites suffer from fragmentation when it comes to merchandising. It is extremely difficult to fully merchandise and tailor a website for each consumer. But you can get pretty close. Which leads me onto the next point

5. Choose the right tools, but moreover, the right people

The range of tools available for your website right now is quite mind-blowing thinking back a decade. Just take a look at this small, but useful list:

Automated merchandising. Let a mixture of automated rules and commercial input decide on which piece of content or product to surface based on various aspects of the user and their experience within your site. Click to chat. Perhaps the next best thing to a sales assistance if used in the right way. It can provide the edge your website needs to improve your customer experience especially when your operators are trained to aid and close sales and not just field general queries. Multivariate testing. Im a huge advocate of testing. Its so easy to test your site as long as you've got the right team creating those tests. Ive been asked a number of times what happens when theres nothing left to test. Ive yet to encounter that scenario.

Online customer surveys. Not only will it provide candid insight into what your customers truly think of your site, youll learn so much more about how to improve your offering. Real-time user tracking. Again another underused tool, is replaying user sessions. Find out what customers didnt do, which is just as insightful as what they did. Search and faceted navigation. A good search experience goes beyond the tool youve chosen, its also about the active management of your search experience. Customers expect to find what they want with your search box and narrow down their options. If not, you may well be losing 20% of your revenue. A small merchandising tip: look out for your search keywords that return zero results; you may well find new product ranges which customers think you stock that you dont perhaps you should?

Targeting and segmentation. The ability to split your traffic into pre-defined blocks of attributes and behaviour and target content to them comes close to offering a tailored web experience. Segmentation by definition groups clusters of customers and is not one to one but does provide an edge over spray and pray approaches to merchandising. For example, a simple male/female segment split based on logged-in users gives an instant merchandising opportunity to effectively double the merchandising space on your homepage. User reviews and testimonials. Let your advocates sell your product for you. User reviews do a great job in surfacing low quality products that are not fit for purpose. If average reviews are constantly low, will you persist in selling it? Or feed back to your buying team to enhance it? Or push back on your supplier? Videos, 360s and visual merchandising. With broadband speeds increasing over time, video and other bandwidth intensive media are becoming less of an issue for consumers and can add an extra dimension to your toolset. In-depth apparel zooms and detailed swatches have certainly provided consumers with a more realistic view of what theyre buying, coming closer than ever to physically having the product in front of you. Web analytics. This still remains the central source of information for many businesses yet some of the examples above demonstrate that data sources are far more abundant. Is data the new oil? I certainly think it will last longer