Key measure of retailer’s success is 
– selling as much merchandise as possible at the highest profit margin.

Earlier the focus was on:
– the right product
– in the right place
– at the right time

In today’s hyper competitive omni channel world, we also need:
– at the right price
– in the right quantity

This forces retailers to have the right processes to satisfy today’s demanding customers.

s there any easy way to find a breakthrough in your company?

Every industry has an unsaid ‘rule’.
This rule usually comes from a genuine need.
But, many companies over do the action to meet the need.

Find out where you are doing more than you should.

Correct the action, and see magical growth!

Lets take the example of Jewellery industry.

𝐖𝐡𝐚𝐭’𝐬 𝐭𝐡𝐞 𝐔𝐧𝐬𝐚𝐢𝐝 𝐑𝐮𝐥𝐞?
In jewellery industry, an unsaid rule is of ‘more variety’.
If you want sales team to sell more, they will ask for more options.

Sales team is clear that more options will give more sales.

Sales team will compare their stores with other brands. 
They will then claim that competitors selling more have even more options.
So, if we need more sale, we need to give more options.

𝐖𝐡𝐚𝐭’𝐬 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥 𝐧𝐞𝐞𝐝?
Customers to a store have specific need.
For instance, customers may come with a need like: 
less than Rs. 50k stud ear rings.

Chances are they they come for a category with an approximate budget in mind.

𝘊𝘶𝘴𝘵𝘰𝘮𝘦𝘳𝘴 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘧𝘪𝘯𝘥 𝘦𝘯𝘰𝘶𝘨𝘩 𝘨𝘰𝘰𝘥 𝘥𝘦𝘴𝘪𝘨𝘯 𝘰𝘱𝘵𝘪𝘰𝘯𝘴 𝘪𝘯 𝘵𝘩𝘦𝘪𝘳 𝘯𝘦𝘦𝘥.

Enough options means not too less and not too many.
Too many options confuse your customers.

Good designs means that designs should be differentiated.

If customers find enough decent options, you make a sale.
If not, customers prefer to go to a place where they will be sure of finding options.

𝐌𝐢𝐬𝐭𝐚𝐤𝐞𝐬 𝐦𝐚𝐝𝐞 𝐰𝐡𝐞𝐧 𝐟𝐨𝐥𝐥𝐨𝐰𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐮𝐥𝐞:

1. Companies do not see option from a customer viewpoint.

Example: The same design in a different size does not count as a new option for the customer. 
Another Example: Many pieces of the same looking item don’t help you give ‘choice’ to your customer.

Company might believe that they are giving 10 pieces. 
But from a customer view point, only 3 options are available!

2. Companies do not give the options in the right needs.

We have mis alignment between the need of store and the stock that we supply.

Eg. Most of the traffic coming to the store is asking for Rs. 1 – 2 Lakh bangle but we are giving more pendants to the store. 

Do you think that the extra options of pendants will help us in selling bangles?

This results in very low efficiencies in our stores.

𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐄𝐱𝐩𝐞𝐜𝐭𝐞𝐝
Correcting the above 2 mistakes allows stores to meet the need of customer.  
With much lesser stock!

This becomes a breakthrough for the company.