Tag: US

YOU ARE WHAT YOU Market

Establish your retail brand equity that positively influences client conduct and make your address the favored location to store.re.

Investigation on buy behavior in the US reinforces the value of in-retailer advertising answers provided that the majority of purchasing decisions are made at the stage of sale. As new merchandise are launched to the markets each and every day, resourceful show alternatives are the crucial aspect to market your brand. According to POPAI (Stage of Obtain Association Worldwide)retail displays account for close to 60% of complete invest in quantity made in-retailer.

An inviting retailer setting that incorporates eye-catching retail show design drastically have an impact on shoppers’ notion of merchandise good quality and price level tolerance. It is proven that a pleasing store ambiance with a skilled worker picture construct consumer trust and encourages website visitors to remain longer, pay a visit to a lot more often and obtain additional. This is 1 of the most important efforts to make to set up differentiation from rivals and make sure increased margins.

Attribute your huge dollar merchandise on an eye-catching retail exhibit

A way to increase your retail picture is to showcase nicely established brand items on an attractive retail show, which substantially improves the initial impression of site visitors. This is the most figuring out facet for consumers to affiliate the total top quality of your shop setting. In other words if you present recognizable top quality brands on a featured retail display at a dominant location, this impression will immediately spill about to your store’s picture.

Brand awareness can be supported or enhanced by integrating graphics and signage to show particular merchandise facts that decides regardless of whether or not consumers accept to spend a greater quantity for the featured merchandise. Communicate positive aspects or life style values that helps make this merchandise specific and coveted.

If you fail to advertise your heavy dollar solution on a higher class retail show and present a good quality concentrated purchasing expertise, unavoidably your keep will be related with a budget mart with inexpensive no-identify merchandise. You miss the chance to market substantial margin products to potential customers who opt for to make model obtain from your competitor with a larger rated retailer image.

Make investments in a customized design and style resolution to goal your consumer base

Customized retail displays are the most powerful investment to make when you purpose at highlighting brand products and attaining larger margins. Desirable retail display design is vital for every single productive retail place as the general impression of your retailer setting are heavily influenced — not only by what you market — but also by the way your goods are introduced. On top of that custom tailored retail show can draw interest from a targeted purchaser base by serving their design preferences and stand out from the competition.
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One of the key determinants of a retailer’s success is the format that they use to present to their target customers. A retailer can chose a format based on the kind of store design they want to render, the locality they would like to establish, the various products and services they wish to provide and the approach taken to pricing. The most important aspect is the format should be ideal to their target demographics.

In the past, the Indian retail sector has been dominated by small independent players such as traditional and small grocery stores. It is in the recent times that organized, multi-outlet retail concept has gained acceptance and has since then gained momentum. As per the study conducted by the Indian Council for Research on International Economic Relations (ICRIER), on the subject ‘Impact of Organized Retail on Unorganized Sector’, the retail business is estimated to grow at 13% per annum from US $ 322 billion in 2006-07 to US $ 590 billion in 2011-12.

A report by FICCI on the “Indian retail: on the fast track” shows that various organized retailers are currently experimenting with different formats of retail trade. It is difficult to predict which format will have a winning edge over all others in view of the fact that the Indian market is yet to mature.

The different sorts of retail formats that retailers could adopt are mom-and-pop or kirana stores, specialty stores, department stores, discount stores, convenience stores, hypermarkets, supermarkets, malls, category killers, e-tailers and vending machines.

Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and operated by individuals. The range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses. The square feet area of the store depends on the store holder.

Specialty Stores: A typical specialty store gives attention to a particular category and provides high level of service to the customers. A pet store that specializes in selling dog food would be regarded as a specialty store. However, branded stores also come under this format. For example if a customer visits a Reebok or Gap store then they find just Reebok and Gap products in the respective stores.

Department Stores: often bear a resemblance to a collection of specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. For example: Food World in Bangalore.

Discount Stores: offers extensive assortment of merchandise at affordable and cut-rate prices. Normally retailers sell less fashion-oriented brands. However the service is inadequate.

Convenience Stores: is essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchases.

Hypermarkets: provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. A classic example is the Metro in Bangalore.

Supermarkets: is a self service store consisting mainly of grocery and limited products on non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets can be anywhere between 20,000-40,000 square feet. Example: SPAR supermarket.

Malls: has a range of retail shops at a single outlet. They endow with products, food and entertainment under a roof. Example: Sigma mall and Garuda mall in Bangalore.

Category Killers or Category Specialist: By supplying wide assortment in a single category for lower prices a retailer can “kill” that category for other retailers. For few categories, such as electronics, the products are displayed at the center of the store and sales person will be available to address customer queries and give suggestions when required. Other retail format stores are forced to reduce the prices if a category specialist retail store is present in the vicinity. For example: Pai Electronics store in Bangalore.

E-tailers: The customer can shop and order through internet and the merchandise are dropped at the customer’s doorstep. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. However it is important for the customer to be wary about defective products and non secure credit card transaction. Example: Amazon and Ebay.

Vending Machines: This is an automated piece of equipment wherein customers can drop in the money in machine and acquire the products. This kind of system is currently not widely used in India. For example: Soft drinks vending at Bangalore Airport.

Retailers can opt for a format as each provides different retail mix to its customers based on their customer demographics, lifestyle and purchase behavior. A good format will lend a hand to display products well and entice the target customers to spawn sales.

Buying foreign currency is an act of purchasing certain currency which is not the form of money that is generally being used and circulated in your own country. For example, if you are in the US, the generally accepted and used form of currency is the US dollar. If you reside in Germany, the local form of money that is generally circulated and used in almost all business transactions in the country is Euro. Therefore, if you want to have Euro, and that you are in the United States, what you should do is to but foreign currency. The price in buying foreign currency is determined by the ever-changing currency exchange rates. Foreign currency exchange rate is deemed ever-changing since it varies for from hour to hour and from time to time. Literally, the exchange rates are largely influenced by the issue on supply and demand of the currency subject to the exchange. The currencys supply and demand is also influenced by different issues that include market psychology, political conditions, and economic factors. Hence, in buying foreign currency, it is better to consider these factors. The market psychology as well as traders perceptions on a particular market can possibly affect and change the foreign currencys price. Political conditions, as another factor, can be international, regional, or internal. This condition profoundly impacts on the value of the money in purchasing foreign currency. As an example, if one nation currently experiences political leadership, investors may raise their doubts and lose confidence which may consequently lower the currency value of the nation. The economic factors that affect foreign currency exchange include the regulations which the government agencies disseminate; the economic conditions revealed by government and non-governmental institutions, as well as other indicators in the economy. Where to purchase foreign currency

There are many competing stores in the United States that offer good deals in buying foreign currency. Their competition generally evolves in making the best offer of currency exchange in their area. As the buyer, it is important for you to take note of the exchange rates these competing stores offer and select the one that make you the best exchange deal.

Another option where you can make your foreign currency buying is the airports. However, airports rarely offer better exchange rates than others do; so, it is suggested that you make your purchase of the foreign currency before you had to the airport. Around the world, almost every airport says that buying foreign currency is easy once you land at you r destination. But once again, buying foreign currency is typically not so good in airports since they offer a bit higher exchange rates. Not all airports have offer currency exchange. You also do not intend to land in a place where currency exchange desk is not available, anyway.

If you started your foreign travel or vacation already, and then you need to buy foreign currency, you may as well purchase foreign currency from many large hotels aside from the many currency exchange retail stores. Like the airports, hotels do not usually offer fantastic rates. But if buying foreign currency is needed, hotel is another option for you.

Consumer and retail businesses in Brazil can anticipate a promising future. Employment rates and consumer groups are growing, while political risk, economic uncertainty and inflation continue to stabilize. Overall, the retail market grew by 15.7% in 2009; slightly over the 14% forecast growth. The segments presenting the highest growth were automobiles, at a record 32%, furniture and domestic appliances (25%), clothing and shoes (16%), tobacco and beverages (15.5%) and pharmaceutical and cosmetic items (15%).

Boosted by an increase in the level of salaries and a reduction in unemployment, the retail segment in Brazil avoided the effects of a stronger negative GDP brought about by the reduction in exports and foreign direct investment in the country. The emergence of the C SES level, those who receive a maximum of US$2,700 per month, was and still is one of the main pillars of such growth. This group now receives 46% of all salaries paid, against only 37% in 2003.

The rise of Brazil retail market

Over the years, many Brazilian companies have become more competitive and innovative in most segments. Procurement and purchasing have become very sophisticated, along with the rise of cost and pricing specialists. Innovative sales promotions and services are backed by customer surveys and trend analysis and help enhance the typical Brazilian shopping experience.

Examples include in-store wine cellars and extended services, from in-store beauty and gastronomy consultants to food and photo printing kiosks, or extended warranties to mobile recharges and flash promotions at cash registers.

Brazil is also probably the most advanced and demanding country in Latin America, in terms of innovative and creative advertising campaigns, and has been leading in this area for at least two decades. Brazilian agencies are constantly winning international awards for their creative advertisements for consumer brands.

Besides creating great advertisements, some social media groups are now being monitored by larger retailers, who are also “twitting” their promotions to an increasingly larger group of connected consumers. Price differentiators are no longer the sole tool to attract and retain a client that demands good service, variety, and good pricing “” all this to be reported in some sort of forum or online group afterwards.

The intense degree of competitiveness is also expressed in advertising campaigns where some companies appear to be edging ever closer to the limits allowed by legislation.

When traditional tools seem to be exhausting their power, innovation will determine success or failure. To excel in the future, consumer and retail companies in Brazil should dedicate time to understanding their constantly changing groups of customers in a constantly changing environment.

Six trends that will shape the market

How companies fare in the future will be determined by how well they capitalize on six important market trends that will shape the consumer and retail industry. Here are some predictions about where the market will be heading.

1. Continued consolidation ”
Many local consumer and retail companies have been turning to mergers and acquisitions (M&A) in order to capture economies of scale, fight off domestic and foreign competition as well as secure leadership positions within their segments. Several have become multibillion-dollar market heavyweights in the last 12 months alone.

With companies like Unilever reporting Brazil as their second largest market; making up 21% of global sales and contributing US$6 billion per year to the fast moving consumer goods (FMCG) company; international consumer and retail players are increasingly finding Brazil attractive.

Indeed, Brazil will remain one of the top M&A destinations within the global consumer and retail landscape for several important reasons:

Latin American hub ”
Due to its geographic position, level of industrialization and developed services industry, Brazil is considered a hub to Latin America. Argentina is the second most important destination of Brazilian exports after the US, while Chile, Colombia and Mexico are located just around the corner, so to speak.

Base for manufacturing
“FMCG products such as personal hygiene goods, consumer electronics such as mobile handsets and domestic appliances, as well as processed foods such as potato chips to frozen vegetables, are manufactured in Brazil and shipped to neighboring countries.

Robust economic growth
“Sound economic development as well as two long-awaited events; the 2014 World Cup in Brazil and the 2016 Olympic Games in Rio de Janeiro; are certain to boost the infrastructure, telecommunications, retail and services sectors, among others. GIA estimates that an estimated 2 to 3 million new jobs will be created in Brazil over the next six years.

Large domestic market
“One important consequence of the recent growth in Brazilian economy has been the emergence of the “C SES level”, represented by over 40% of the population that is steadily migrating from poverty levels into consumer levels. In addition to this, the sheer size of Brazil”s entire 190 million population cannot be ignored.

Prediction: Brazil will reduce its dependence on foreign investment, as local companies continue to grow, consolidate and benefit directly benefit from a stronger internal market.
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2. Impact of social media trends
“E-commerce in Brazil has been growing at over 30% per year since 2000, reaching close to US$ 5 billion in 2009 “” even if broadband, at just slightly less than six percent, is not yet a reality for most people. Brazil also has one of the most well developed online banking systems in the world.

In addition, the country occupies leading positions in terms of number of Internet users (63 million or 35% of the population) and there is ample space for further growth. The time they spend surfing the Web and on social media websites such as Orkut, MSN, and the recently discovered Facebook is phenomenal. At 48h 26min per month, Brazilians spend more time web surfing than their peers in the US (42h 19min) and the UK (36h 30min), based on July 2009 estimates.

Such high Internet usage and participation in social media impacts the way companies sell to and communicate with the market, as consumers compare products, share experiences with peers and, more importantly, participate in the creation of products and even management of companies. Innovative companies are keeping blogs and Twitter accounts to listen to their customers voice their opinions on store layouts, product development and even competing products.

Prediction: The development of certain retail segments such as hypermarkets and even the automobile industry may see radical changes, as consumption migrates from the physical to the online environment.
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3. The potential of the “unbanked”
“The banking industry saw an important chapter in 2009, when second tier Ita acquired Brazil”s third largest bank, Unibanco, to become the country”s largest bank. It usurped the position of market leader, Bradesco, a position it had held for close to 50 years.

Both groups now plan on targeting the 49% of the population who are “unbanked”, either through new branches to be opened in remote areas of the country, or through partnerships with popular retail chains, who typically sell on credit and are thus already playing the role of a bank. (The “unbanked” are those who do not have any bank accounts, and thus have no access to other financial services such as loans and insurances.)

Prediction: Consumer and retail segments in Brazil will benefit when banks increase their reach through retail stores. This is a trend already in place.
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4. Greater credit card penetration
“Brazilians have been more inclined to pay with cash, which is typically drawn from automated teller machines (ATMs) only once or twice a month. Credit in Brazil accounts for nearly 40% of gross domestic product, far behind the 70% average of other emerging countries. Over 50% of the population does not have a credit card.

Banks and retail chains are addressing this gap. Bradesco, in partnership with Banco do Brasil, will be launching a credit card in August 2010 that targets lower SES level consumers. Most retail stores offer their private label cards, especially to those people who have little or no access to bank credit.

Prediction: Consumption trends, especially those relying on online transactions, will change, as more and more people become accustomed to using credit.
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5. Emphasis on being eco-friendly
“Recent panels presented in the World Economic Forum in Davos showed that Brazilian consumers are more demanding than their European counterparts in their concerns about the environment and how products are manufactured or disposed of.

Companies that fail to respect at least the basic environmental rules in the region are at risk of being rejected by a good percentage of local customers. The trend can already be observed in some supermarkets which have started selling eco-friendly products, diminishing the use of plastic bags and providing recycling collection centers.

Prediction: Consumer and retail companies will begin to change their product formulas and possibly even eliminate some product packaging. Examples include the cardboard boxes that come with toothpaste tubes or any excess plastic packaging from a variety of products.
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6. An aging population
“Store sizes in Brazil have been shrinking, partly due to the aging population, as older shoppers prefer not to carry heavy shopping bags home. Catering to an aging population is not a fad. Life expectancy in Brazil increased from 69.5 years in 1998 to 72.7 years in 2008.

Prediction: Companies will need to develop tools and methodologies to understand this groups needs in order to tap this market successfully. This demographic change also calls for tailored and profitable products and services, such as the tourism industry, industrialized food companies and gym centers.”

With the ground paved for rapid growth in the retail segment in Brazil, consumer and retail companies need to beware of sudden changes that can occur in emerging markets. The entrance of a new player, a merger or an acquisition for example, can change the competitive scenario quite drastically. Demographic and cultural changes can also have far reaching implications.

As competition becomes ever more intense, companies will need to become more concerned with segmenting, positioning and promoting their products and services accurately. All this can only be achieved by close listening to and monitoring the markets they are in.

Product liability insurance is needed by businesses that make or manufacture products, by businesses who import or distribute products, and by stores that sell products to consumers. At first glance, it is easy to see why a manufacturer would need liability insurance in case a product that they make is flawed during the manufacturing process or is found to be hazardous due to the faulty design of the product. However, importers, distributors, and retail stores also need a policy to cover liability as well.

The theory on who needs product liability insurance is best seen in a recent pet food recall involving the country of China. China made tainted pet food that was imported by a Canadian company with two physical US locations. The Canadian company supplied the US Wal-Mart stores with the tainted pet food that was then sold US consumers. Many pets died from the tainted pet food that was sold by Wal-Mart and these unhappy pet lovers started to sue for product liability damages through their US court systems.

Product liability insurance is needed by a manufacturer, unless that manufacturer is outside of the United States realm of control. The pet lovers could not sue the China manufacturer for damages, and even if they tried to sue in China, there is no easy way for a United States citizen to collect court orders damage money from another country.

Product liability insurance is needed by importers and distributors. The Canadian importer was from out-of-country, but did have two locations within the United States that were under United States control. The Canadian importer/distributor could be sued by the pet lovers.

Product liability insurance is needed by retail stores when they sell products. Wal-Mart had many lawsuits placed against them by the pet lovers for selling the pre-packaged food that killed their pets.

As is seen in the above example, the pet owners had the right to completely ignore the manufacturer in China who was the prime culprit in favor of suing the easier people to get to. Product liability laws in the United States can hold all people who come in contact with faulty products responsible to pay for damages if a consumer suffers injuries that are brought about by a faulty product. Product liability insurance is a necessity for all sizes of businesses that deal with consumer products in any manner. Injury claims in court often result in large amounts of damage money being awarded; this can ruin your business.