Online gadget deals hurting retailers: Future Group, Reliance Digital and others seek strict pricing

ashish

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http://economictimes.indiatimes.com/news/news-by-industry/services/retail/online-gadget-deals-hurting-retailers-future-group-reliance-digital-and-others-seek-strict-pricing-policies/articleshow/20357055.cms

[color=rgb(0,0,0);font-family:Arial, Helvetica, sans-serif;font-size:16px;]"Indiscriminate discounting by online stores affects our sales to quite an extent," says Rajan Malhotra, president at India's largest listed[/color][color=rgb(0,0,0);font-family:Arial, Helvetica, sans-serif;font-size:16px;] Future Group, which runs 38 eZone stores. "If we get pushed due to such discounting, we definitely have to push back with the brands," he says, confirming that the firm has taken up the issue with manufacturers.[/color]
They should offer better customer service, informed & humble salespersons, technical guidance to customers,lowering the prices instead of cribbing
 

ashish

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[color=rgb(0,0,0);font-family:Arial, Helvetica, sans-serif;font-size:16px;]Brian Bade, CEO at Reliance Retail's electronic retailing format Reliance Digital, says brands have to take a tough stand against such online deals that hurt the business. "Consumers often come with the online discounted price in mind and leave the store without concluding the purchase," he says.[/color]
Customer has become smarter, they now just go to the retail shops to get a feel of the product & order online back home.
 


Sushubh

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I guess they have no idea that consumers carry smartphones and they can compare the prices right inside their stores and make a quick decision.
Also, there have been cases where retail stores have worked out to be cheaper for purchases. So, they are just bitching about nothing.
Yes, their operational costs are more. No, they have no excuse. They have an advantage that online stores do not have. But they do not make use of it. Online stores have been able to do that and that's why they are doing so well.
Stores in America offer instant matching with online stores. If you want to ensure a sale, take initiatives to match the pricing that is available to the customer visiting your store. Period.
I know this problem first hand. A friend of mine has a showroom in MGF Mall in Gurgaon. His rents and other expenses are sky high. But his products are premium range (denon, polkaudio, harman etc.) but even he is affected.
Since interested buyers need a demo to get an actual feel of what he is going to buy, retail stores are very important here. But even he feels that a lot of people come to his store just for a demo and then go home and order online.
But he has been proactively trying to interact with the customer to get a feel of from where he is actually going to place an order. He gives out goodies like fast installation and other benefits. Even then he had to resort to start offering mobile cases and other accessories as the margins there are sky high and helps in keeping the operation profitable.
 

dextermorgan

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I went to buy a mobile for a friend. Price was atleast 700~1000 above the price selling online. I said the same to the shop guy ...he said no sir,that isn't the case. i opened the site before him and showed him and he reduced the price by 500
 

Sushubh

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I would give a personal example about purchasing something from Reliance Digital. I had ordered a Hitachi LCD around 4 years ago. The delivery was made rather quick. But I had to call them multiple times and even visit their store twice to get them to send the installation guys. Took me 4 days to get it in working order. I had blogged about this incident on my personal blog. And I heard similar horror stories from hundreds of similar customers since then.
Their service support business is named Reliance ResQ. I found the name quite ironic because people needed rescuing from them.
The people who work at Reliance Digital outlet here in Gurgaon are not even properly trained. I have never visited them for the last few years simply because the experience is so darn frustrating.
Dextermorgan said:
I went to buy a mobile for a friend. Price was atleast 700~1000 above the price selling online. I said the same to the shop guy ...he said no sir,that isn't the case. i opened the site before him and showed him and he reduced the price by 500
Yup. This is how you compete. Instead of not selling a product at 1000 rupee profit. Sell it at 500 rupee profit and keep the sale. Consumers want instant gratification.
And for fucks sake, do not treat the customer as an asshole once the sale is complete. If the device turns out to be faulty, cooperate fully. Word of mouth can go a very long way to get more business.
 


dextermorgan

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He did pitch in a screen protector as well saying its worth 400 but I'll give it free and again I showed him the same brand protector in ebay for 170 bucks. But he was like sir,If any problem is there come to us and we'll sort out the problem by taking up the problem ourselves with company guys. So we bought the phone at retail shop rather than online. Store name is BigC in hyderabad.
 

kkapoorr

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I wanted to buy an iron online. Liked a Phillips one. Didn't buy it cause firstly the service centre is far from my place, and secondly the shopkeeper hosts the Philips repair guy once a week. So I can get it repaired there only .
 

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