The first quality of an efficient brand is visibility. Visibility comes from stand alone stores and the distribution channels. Retailers are the key to the successful passage of the products from the suppliers to the consumers. Unfortunately, in the present world of competition, thin profit margins and ever changing consumer behaviour, brands allocate the larger pie of the marketing budget to the consumers. Deals, discounts, TV commercials, promotional events are all focused to delight the consumers and increase the profitability of the brand. Retailers who are a very critical part of the supply chain system are often neglected by the brands and left with just a thin margin.
Breaking the Ice
Makers, Raymond’s unique economy offering has come up with a different plan. On the occasion of completing their first year, the brand announced a special insurance scheme for the retail partners. Ram Bhatnagar, Vice President, Emerging Businesses, Raymond Ltd, said, “Raymond has the distinction of pioneering retail trends in the Indian textile and apparel industry. We have raised the bar of modern day retailing every now and then. To celebrate this performance, we are pleased to present India’s first insurance scheme for our retailers, in recognition of their contribution in this journey. We recognize that Makers retailers have been the key interface for the brand with the consumers and supported immensely to grow the brand. The insurance scheme is our way of appreciating their efforts.” As a part of the scheme, Makers shall provide insurance benefits to the shop owners and two of their sales team. The insurance cover will range upto Rs 10 lakh for a period of 1 year.
The group personal accident policy is a benefit to the retailers of Makers across India. Reading behind the lines, the group personal accident policy is to benefit the ‘Makers’ in India. Intention behind any step taken in business is ‘Profit’ and this is no exception. Retailers are the interface between consumer and the brand. An unsatisfied retailer, with meager margins and strict trade ties cannot be expected to encourage the sales beyond certain limit. The visibility of brands in the market is often dependent on the number of retailers it has roped. The market in tier-2 and tier-3 cities is still very much in the hands of these retailers. An insurance cover, ranging upto Rs 10 lakh for a period of one year is good enough a strategy to attract more and more retailers and eventually increase the sales and profit.
Industry welcomes step
Today when the retail segment in India is in doldrums with the retail sector experiencing de-growth of 10 per cent in store sales as buyers continue to shy away from spending. This has influenced the amount of new space retailers are leasing. Increasing retail space prices have made the business even more vulnerable. Cutting edge competition and lack of capital in the industry are a few more reasons why retailers have had a tough time recently. In a situation like this, a company offering insurance to their retail partners is more about the feeling that they are secured under a shelter. While retailers hope that more and more brands come up with such offers for them, only time will tell if this just an offer or a dawn of the dark night of the retailer-supplier relationship