Sales that sway consumers

The magic of New Year is accentuated by the sales at most retail outlets in the city. SUDHA RAGHAVAN surveys the scene.

IN THE last decade, Chennai saw a spurt in the retail scene. Till the 1990s, most needs of the customer were met by small establishments, who sold their products directly to the customer. These were per force limited qualitatively and quantitatively in their range and variety. The market was a fragmented one with no technological advances in the product range.

The birth of the last decade of the millennium saw a veritable explosion on the consumer scene. One has only to watch television for just a few minutes to witness the range of products available to the consumer today. These meet every possible need in our daily lives. This was largely made possible by the liberalisation policy of the then Government which ensured that products from local as well as foreign manufacturers could reach every segment of the market. The media has played a significant role in making the consumer aware of the products and services available to him. The earning capacity of the average customer has also increased. With this, there has been a natural increase in his demand for material goods. With small, nuclear families becoming the order of the day, each family now considers the acquisition of consumer durables such as TVs, fridges, grinders, food-processors and so on, as basic necessities rather than a luxury. The working woman has benefited immensely from these kitchen aids. There is no hesitation in spending on such items since the cost incurred is far outweighed by the resultant benefits. The age of consumerism has arrived.

The customer is dazzled by the enormity of choice confronting him with each brand offering gifts for every purchase. The opportunities for shopping are limitless. The retailer now has the dual task of attracting customers and retaining them. In earlier years, the seller's role ended when the product was sold. Slowly, the concept of after-sales services caught on. Now, a new dimension has been added to the seller's job - he has to bond with the customer.This calls for a sustained relationship between the two where the seller nurtures the connection by giving gifts, sending greetings, granting special discounts and so on.

The consumer culture has thrived largely due to the credit card boom. "Hire-purchase" has lost its derogatory tag. People now take pride in such purchases. The Chennaiite is today more aware, brand-conscious, educated and alert than ever before. The old conservative lifestyle has been gradually replaced by a go- getting, acquisitive, comfort-and luxury-loving way of living which prides itself in possessing the latest in consumer goods. Festivals and special occasions now have an added agenda - purchasing some new item for the home and hearth. The new mantra is "Spend now, save later".

The retail scene in Chennai today is dominated by one name - Viveks. The establishment was started in 1965 by B. Lakshm- inarayan Setty who hails from Kolar, Karnataka. He was a great follower of Swami Vivekananda and thus the company's name. What began as a small showroom next to the Sanskrit College, Mylapore, has grown to a giant chain with 18 branches in Chennai, Bangalore, Salem, Tirunelveli and Madurai. On display is an amazing array of products from various brands.

The present Chairman and Managing Director, Mr. B. A. Kothandarama Setty says he would like to see the company become a national chain, and after witnessing its phenomenal growth in the last three decades, this dream seems likely to be translated into reality in the near future.

The recently concluded New Year sale (an annual fixture) was a special one as it was the 25th to be organised. To make the occasion memorable, around 2,500 prizes worth Rs.25 lakhs were offered to the customer. The event was well publicised through the newspapers, handbills, TV ads and hoardings. The sale was conducted over a three-day period - on December 31, the focus was on credit-card purchases, on January 1, cash purchases were the order of the day and on January 2, hire-purchase sales were undertaken.

Viveks, along with the recently acquired Jainsons, boasts of 36 outlets in Chennai. Nine more were added for the purpose of the sale. The 600-odd permanent staff was supplemented by additional personnel from product promoters, hire-purchase companies , ex- employees , bank-staff and close friends. Around 50,000 shoppers patronised the sale this year.

The success of the sale can be largely attributed to the vision and zeal of Shrinivas, Head of Operations and the younger brother of Kothandarama Setty. According to him, the Viveks New Year sale is an exciting event in the marketing scene of Chennai. It has become a part of the city's tradition.

Ramanan, Director (Finance), feels that the Akshaya card is an innovation which will benefit the customer greatly . It offers "entertainment, savings and security". The card entitles holders to special privileges in select shops ranging from restaurants, jewellers and apparel shops to hospitals and grocery stores. The holder also gets "award points" each time he shops at Viveks against which he receives gifts. These points can also be redeemed against future purchases.

The retailing industry provides tremendous scope for employment. There is a great demand for skilled manpower in the industry. The community benefits from the services the industry provides and the Government's revenue coffers are augmented. According to Mr. Setty, the shareholders and the stakeholders are the last to benefit! He believes that there is still a lot of scope for growth and improvement. In 10 years' time, innumerable changes are likely to occur in this regard and the Indian customer will soon receive world-class products and services.

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