Competing in Retail

Point to keep in mind to competing in Retail :-

    Part of running a successful retail store is being able to compete with other stores or even online web sites that sell products identical to yours. You have to find something that makes you unique and push it. You don't necessarily need expensive advertising or marketing to make a name for yourself, but you do need to promote yourself in different ways.




1) Make sure that people are aware of what makes you special. You may want to put signs in your front window displaying what special brands you carry. The manufacturers will often send you free promotional material if you ask. If you run newspaper ads, magazine ads, or other types of paper communication, make sure that you include details about your store in the print. Be careful not to only mention a sale and forget that a new customer might be reading and need to know why they should come to your store as opposed to going online and finding your products at a discount.

2) Promote yourself socially. There are several social web sites that can help you to become popular. Not only will you notice jumps in search engine rankings, but you'll notice that it's easy and free to communicate with your customers. Holding contests or having give-aways are great ways to get new fans. People that talk about you to their friends are immensely valuable and social sites are the easiest way to make that happen.



3) Give your customers something to talk about. People love to get a good deal. How many times have you complimented someone on their shirt, shoes, handbag, or accessories only to hear a response that tells you how they came about owning them? You rarely hear, "Oh yes, these shoes are very well made." More often you hear something along the lines of "I got the best deal on these!" People are excited to share their shopping experiences, whether they are good or bad. So, make sure that each person that enters your store has a great experience, even if they didn't buy a thing.



4) Pay attention to the little details that can make people happy to shop in your store. No one likes to dig through cramped racks or bins. They also don't want to be smashed up against other customers while they shop. Use a slatwall display system to keep the store nice and neat. When items are displayed on slatwall or slatwall panels, they are highly visible and easy to browse. You can easily maneuver slatwall accessories to accommodate different inventories at different times of the year, with very little effort. Spotlights can give texture to the space while increasing product "pop" and deterring theft. Don't blast music so loud that it gives people a headache. Make sure that your staff always exhibits unwavering customer service skills and always goes above and beyond for your customers.

INVESTMENT POLICY AND INITIATIVES - Retail Sector

FDI Policy in the Retail Sector


    India has kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrand retail with prior Government permission. FDI is also allowed in the wholesale business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own. Metro is already operating through the cash-and-carry wholesale mode.

     The policy makers continue to explore areas where FDI can be invited without hurting the interest of local retail community. Government is considering opening up of the retail trading for select sectors such as electronic goods, stationery, sports goods, and building equipment.

    Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods, electronics and stationery is also being contemplated. The Government has to walk a tightrope to ensure a `level playing field' for everyone. The policy of permitting 51 per cent FDI in single-brand product retailing has led to the entry of only a few global brands such as Nike (footwear), Louis Vuitton (shoes, travel accessories, watches, ties, textiles ready-to wear), Lladro (porcelain goods), Fendi (luxury products), Damro (knock-down furniture), Argenterie Greggio (silverware, cutlery, traditional home accessories and gift items) and Toyota (retail trading of cars), into retail trading. A 12-billion euro French luxury industry is also eyeing the domestic luxury segment to make a presence through retailing directly.

 
Business models for entry in Indian markets


    Due to the FDI restrictions the international players are looking for alternative avenues to enter the Indian markets. However FDI restrictions in retailing have not deterred prominent international players from setting up shops in India.

    In recent developments, the Australian retail giant Woolworth Ltd made in innovative entry in India’s retail space, with India’s Tata group. The Tata group has floated Infiniti Retail Ltd, in venture with which will sell consumer goods and electronics across the country. Infiniti Retail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusion of Rs 4 billion. This Tata retail venture joined hands with Australian retail giant Woolworths Ltd, which currently operates more than 2,000 stores in 12 different formats. While Infiniti will own and run retail operations in India, Woolworths, which has attained notable success in selling electronics and consumer goods through its Dick Smith Electronics chain, will provide technical support and strategic sourcing facilities from its global network.
 

Guide to Starting a Business Tips, New Businesses Ideas and Tips

Guides to Starting a Business

   Starting a new small business is the dream of many people ... starting that business converts your dream into reality. But there is a gap between your dream and reality that can only be filled with careful planning. As a business owner, you will need a plan to avoid pitfalls, to achieve your goals and to build a profitable business. below you will find several useful guides to help you turn your new business into a success.

   The following guides will help you to prepare a comprehensive business plan and determine if your idea is feasible, to identify questions and problems you will face in converting your idea into reality and to prepare for starting your business.

  Operating a successful small business will depend on:

a practical plan with a solid foundation;  

dedication and willingness to sacrifice to reach your goal;  

technical skills; and  

basic knowledge of management, finance, record keeping and market analysis.  

As a new owner, you will need to master these skills and techniques if your business is to be successful.


Here is a list of guides that will teach you all aspects of starting a small business.


So you are thinking of starting your own business. 
   This can have advantages and disadvantages. Starting your own business will bring a sense of independence, and a sense of accomplishment. You will be the boss, and you can't be fired, though there may be days when you would welcome it. Because you can pay yourself a salary and the profit or return on your investment will also be yours, you anticipate a good income once your business is established. You will experience a pride in ownership - such as you experience if you own your own home or your own automobile. You can derive great satisfaction from offering a product or service which is valued in the market place.


   Here are some new business ideas. By being boss you can adopt new ideas quickly. Since your enterprise undoubtedly will be a small business - at least in the beginning - you will have no large, unwieldy organization to retrain, no board to get permission from, each time you wish to try something new. If the idea doesn't work you can drop it just as quickly. This opportunity for flexibility is one of small businesses greatest assets.


   These are some of the advantages and pleasures of starting and operating your own business. Now take a look at the other side. If you have employees, you must meet a payroll week after week. You must always have money to pay creditors - the man who sells you goods or materials, the dealer who furnishes fixtures and equipment, the landlord if you rent, the mortgage holder if you are buying your place of business, the publisher running your advertisements, the tax collector, and many others. All of these must be paid before you can consider the "profits" yours.


  Among the new business ideas presented here is the notion that you must accept sole responsibility for all final decisions. A wrong judgment on your part can result in losses not only to yourself but, possibly, to your employees, creditors, and customers as well. Moreover, you must withstand, alone, adverse situations caused by circumstances frequently beyond your control, To overcome these business setbacks and keep your business profitable means long hours of hard work. It could very well not be the work you want to do. As someone else's employee you developed a skill. Now, starting a business of your own, you may expect to use that skill 40 or more hours a week. Instead, you must perform the management tasks as well. You must keep the books, analyze accounting records, sit back and do long range planning, jump and handle the expediting and, when everyone has gone home and you finally have caught up with the paper work, you may even have to sweep the floor.


   As your new business grows and you become more successful, you may not do some of these activities. As an owner-manager, however, you must - at least at first - give up the technical aspects you know and enjoy doing, and focus on the management aspects. To get your business off to a successful start, you must be a manager not an operator.

                                  "You will never be entirely your own boss"

  No matter what you choose - manufacturing, wholesaling, retailing or service business - you must always satisfy your customers. If you don't give the customers what they want, they'll go somewhere else and you'll be out of business. So every customer, or even potential customer, is your boss. Your creditors will also dictate to you, and your competitors' actions may force you to make decisions you don't want to make. National and local government agencies will insist that you meet certain standards and follow certain regulations. The one thing you can decide yourself is how you will satisfy all of these bosses.

Are You the Type to Succeed in a New Business?

   The first question you should answer after recognizing that there are two sides to the prospect of establishing your own business is "Am I the type?"
   You will be your most important employee. It is more important that you rate yourself objectively than how you rate any prospective employee. Appraise your strengths and your weaknesses. As a prospective operator of your own business, acknowledge that you are weak in certain areas and cover the deficiency by either retraining yourself or hiring someone with the necessary skill.
   Numerous studies have been made of small business managers over the years. Many look at traits and characteristics that appear common to most people who start their own businesses. Other studies focus on characteristics that seem to appear frequently in successful owner-managers.
   First, consider those characteristics that seem to distinguish the person who starts his own new business from the person who works for someone else. These studies investigated successful and unsuccessful owners, some of whom went bankrupt several times. Some were successful only after the second or third try. The characteristics they share might almost be said to predispose a person into trying to start a business. Of course, not all of these characteristics appear in every small business owner-manager, but the following seem to be most predominate.

Strong Opinions and Attitudes


   People who start a business may be members of different political parties, feel differently about religion, economics and other issues. They are like everyone else. The difference is they usually feel and express themselves more strongly. This is consistent. If you are going to risk your money and time in your own business you must have a strong feeling that you will be successful. As you will see later, these strong feelings may also cause problems.
  If you want to start your own business you probably have mixed feelings about authority. You know the manager must have authority to get things done, but you're not comfortable working under someone. This may also have been your attitude in a scholastic, family or other authority structure.
   If you want to open you own business you are likely to have a strong "Need for Achievement". This "Need for Achievement" is a psychologist's term for motivation and is usually measured by tests. It can be an important factor in success.
   The person who wouldn't think of starting a business, might call you a plunger, a gambler, a high risk taker. Yet you probably don't feel that about yourself. Studies have shown that very often the small business owner doesn't differ from anyone else in risk avoidance or aversion when measured on tests. At first thought this seems unreasonable since logic tells us that it is risky to open your own business. An Ohio State professor once explained this apparent contradiction very simply. "When a person starts and manages his own business he doesn't see risks; he sees only factors that he can control to his advantage."
   If you possess these traits to some degree or other it doesn't mean you will be successful, only that you will very likely start your own business. Some of these characteristics in excess may actually hamper you if you are not careful.
   The characteristics that appear most frequently among "successful" small business managers include drive, thinking ability, competence in human relations, communications skills and technical knowledge.Drive, as defined in the study, is composed of responsibility, vigor, initiative, persistence and health. Thinking ability consists of original, creative, critical, and analytical thinking. Competency in human relations means emotional stability, sociability, good personal relations, consideration, cheerfulness, cooperation. and tactfulness. Important communications skills include verbal comprehension, and oral and written communications. Technical knowledge is the manager's comprehension of the physical process of producing goods or services, and the ability to use the information purposefully.
   Motivation or drive has long been considered as having an important effect on performance. Psychologists now claim you can increase the motivation and the personal capacities that will improve your effectiveness and increase your chances for success. Much of the development of such achievement motivation depends on setting the right kind of goals for yourself.

What Business Should You Choose?


   Many of you have already decided what business to choose. Others may still be seeking answers from counselors. Whether you have decided or not, you will find it helpful to continue your self-evaluation.
   Begin by summarizing your background and experience. Include jobs. schooling, and hobbies. Then write down what you think you would like to do. Does what you would like to do match up with what you have done? It is helpful if your experience and training can be put to direct use in your new enterprise.
   What are your prospective needs? What are your prospective customers' needs? You may make money doing something you don't like if people will pay for it. On the other hand, you will never make money if people don t need your product or service no matter how happy you are doing it. Experts have said more companies fail because they are in the wrong business than because they are "doing business wrong".
   Read, listen to the experts, talk to business people, try to determine where growth will occur. Most new businesses can only get customers by taking them away from someone else, or by attracting new people entering the area. In other words, don't start a contracting business in a community where the population is decreasing even if you are a good contractor.
At this point, try to match your background and interests with what you see the needs to be. If they match, wonderful. Now all you have to do is discover how to offer the customers more for their money than do your competitors.
   If the needs and your background don't match, don't despair. Get training by working in a company that provides a product or service that is needed. Find a job in a well managed, successful company of the kind you are contemplating. Then absorb as much management know-how as you can while learning the technical skills.
   Education can help too. While there may be no educational requirements for starting your own business, the more schooling you have along the right lines the better equipped you should be.
(Some fields require licenses, certificates, even degrees in specific educational areas.) Certainly it is helpful if you have had courses in record keeping, sales and communication. These needn't be college or even high school courses. They can come from adult education programs and the like.
Is there a need for what you want to sell or do? Are you prepared to fill that need? Are you interested in the area? Can you learn what you need to? Will there be a continuing and growing need for your product or service?

Your Chances of Success in Starting Your Own Business (New Business Ideas)

   What are your chances of success if you go into business? New businesses are always being started. Almost as many are failing or being discontinued. A year of poor business conditions is likely to be followed by a greater than average number of failures or closings. A year of good business conditions tends to be followed by large increases in the total number of businesses. In general, the number of firms increases with increases in human population, total personal income and per capita income and since these factors have increased regularly, the total number of small businesses usually rises every year.
   This growth is not free of growing pains, however. At the same time new businesses are being born other businesses are being discontinued. Some of these discontinuances are legally business failures; other owners give up to avoid or minimize losses and are not failures in the strict sense. Still others discontinue for reasons such as the death or retirement of the proprietor, the dissolution of a partnership, or the sale of the business to a new owner.
   Younger businesses tend to discontinue first. Many do not make it through the first year. The discontinuation rate of those that survive this first year "burn-in" declines steadily until at the end of several years the rate has dropped dramatically. So, your chances of success improve the   longer you stay in business.
  Poor new business management is the largest single cause of business failure. Year after year, the lack of managerial experience and aptitude has accounted for around 90 percent of all failures analyzed by Dun & Bradstreet, Inc.
   Many factors may adversely affect individual firms over which owners have little control. In such cases, the astute manager can often soften the blow or, sometimes, change adversity into an asset. Examples of factors over which the owner has little control are overall poor business conditions, relocations of highways, sudden style changes, the replacement of existing products by new ones, and local labor situations. While these factors may cause some businesses to close, they may represent opportunities for others. A local market place may decline in importance at the same time new shopping centers are developing. Sudden changes in style or the replacement of existing products may bring trouble to certain businesses but open doors for new ones. Adverse employment situations in some areas may be offset by favorable situations in others. Ingenuity in taking advantage of changing consumer desires and technological improvements will always be rewarded.
   In the final analysis, it is up to you. Will your management be competent? Will you be able to judge, and then satisfy, your customers' wants? Can you do this accurately and quickly enough to more than compensate for risks due to factors beyond your control? Such accomplishment requires expert management.


Your Return on Investment


   Will the rate of return on the money you invest in your business be greater than the rate you could receive if you invested your money elsewhere? While your decision to go into business for yourself may not depend entirely upon this, it is a factor which should interest you. Too frequently people invest money in their own businesses under the misapprehension that the financial return will be far greater than the return from other investments. Investigation of the average annual returns in the line of business in which you are interested may be worthy of your time.
   Your decision to go into business may not depend entirely on financial rewards. The size of the potential return on your investment may be overshadowed by your desire for independence, the chance to do the type of work you would like to do, the opportunity to live in the part of the country or city you prefer, or the feeling that you can be more useful to the community than you would be if you continued working for someone else. Do not overlook such intangible considerations. But remember, you cannot keep your own business open unless you receive an adequate financial return on your investment.

Retail :- Implementing EAN/UPC Barcodes on retail products

Implementing EAN/UPC Barcodes on retail products

The following steps needs to be followed for implementation of barcoding on retail products (Stock Keeping Units)






Step 1. Registration with EAN-India:



Companies need to get registered with EAN-India to get a unique company prefix. This unique company prefix identifies the company. The number of digits in company prefix depends on the number of product types (or SKU’s) you have indicated in the EAN/UPC application form submitted to EAN India.





Step 2. Read the Implementation Guide:



It is suggested that you read the implementation guide provided to you by EAN India at the time of registration (which may be in the form of CD/Book). Implementation guide provides introduction about bar coding, EAN.UCC standards, its uses and how to proceed for the implementation of the same.

Step 3. Product code allocation:



Use the company prefix allotted to you on registration, allot product code to all your product types. The product code that you will give to your product types will comprise of three parts:



a. Company prefix: This is the company prefix allotted to you on registration by EAN India.



b. Item Id: The next few digits should be used by a company to allocate Item Id’s to each of its products for identification. For example for the products



Gulab Jamun Mix 100gms - Item Id may be 00001

Gulab Jamun Mix 200gms carton - Item Id may be 00002

Idli Mix 200gms - Item Id may be 00003



Different Item Id’s should be allocated to products for different packaging sizes, different colors, different variants, and different constituents.

Please note the length of the Item Id depends on length of company prefix allocated.



c. Check Digit: The last digit is the check digit, which is a number calculated according to the algorithm called modulo 10. Check digit calculators are available on the following page on EAN India website http://www.eanindia.com/SERV/checkdgt.htm and in the implementation CD provided.



An example has been given below:



8 9 0 4 0 0 0 X X X X X C has been allotted to you. 8 9 0 4 0 0 0 is your prefix which will be common for all the product codes. The Item Id’s given for products and check digits have been given below:





Product Company Prefix Item Id allocated Check digit using calculator Product Number

Gulab Jamun Mix 100 gms 8904000 00001 0 8904000000010

Gulab Jamun Mix 200 gms 8904000 00002 7 8904000000027

Idli Mix 200gms 8904000 00003 4 8904000000034





Step 4. Entry of product codes into www.eanindia.org:



The product codes allocated in Step 3 need to be entered into the website www.eanindia.org. This will give you two benefits:

1) Approval of the allocated product codes can be done online by EAN India

2) Your company and product data will become a part of a worldwide buyer-seller database, which will give a lot of visibility to your products in the national and international markets.



Steps to enter product details into www.eanindia.org :



a. Log in to www.eanindia.org. In the “User Name” field at the bottom of the screen, enter your EAN/UPC Company prefix. The password has been communicated in the letter sent to you at time of registration. (You are advised to change the default password immediately by clicking on “Change Password “)

b. Choose option “Add / Modify Products” on the left side of the screen. You can now access “Product management ”. You can now click on “Add” button and enter details of each product including Segment, Product category, Sub category, GTIN (This is the number allocated in Step 3, Product Name, Height, Width, Length, Weight/ Volume of product, Customs Harmonized code if relevant to your product.

c. Click “Submit” - On submitting, product information will come for product approval to EAN-India.

d. The above steps (a – c) need to be repeated for each of your product types.

e. The Products after approval from EAN-India will be available for various search features on the site. To check on your status of approval go for Steps a & b click “Approval Status summary” after login. This gives you a list of approved and not approved products of your company.



EAN India has launched a new enhanced feature to enable hosting of product images. To view details of the service please click on the following URL: http://www.eanindia.org/Ean/Ean_Letter.html

Step 5. Barcode Printing:

Now that the complete numbers for all the products have been allotted to all your products. The next step would be to get these numbers generated into bar-codes for incorporation as a part of the product packaging design or the barcodes be printed as stickers to be pasted on the package.



Option 1: Modifying artwork to incorporate barcode: A one-time modification to the artwork will be required. The cost involved in this step will be low and organizations involved in generating your packaging (advertising agency or printer) are aware of how to incorporate barcode on product packaging. In case of any clarifications required they may contact the EAN India office.



Option 2: Barcodes printed as stickers to be pasted on products: You can get stickers made by a bar-code solution provider or you may procure a barcode printer from solution providers and generate stickers on your own. This decision will depend on the number of stickers you generate on an annual basis. An indicative list of bar-code solution providers is provided on www.eanindia.com website



Step 6. Barcode Verification:



The next step after generation of bar codes is verification of bar code by EAN India. Barcode verification of products helps a company to access the scannability and quality of barcode on its product packaging. In the verification exercise “Verifier” equipment is used which checks the following barcode size, barcode printing quality, barwidth gain, structure of barcode, correct margins, correct color combinations and various other features and gives a detailed report. The facility is available at Rs.150 per product and you will need to send your sample with packaging to EAN India office along with the amount as DD/Payorder. The modifications suggested in the Verification report (if any) will need to be carried out in your artwork. It is recommended that before going in for mass printing of product packaging, get the barcodes verified by EAN India.