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Shop talk
Raymond Raphael, a management graduate, initially wanted to become an investment banker, but along the way he got hooked on to consumer psychology. Now this 28-year-old earns more than many of his MBA peers. Welcome to the red-hot world of modern retail. 28 L, D RAPHAE RAYMON rts, ger for spo ory mana Job: Categ TY at HyperCI stationery toys and re than 50K salary: Mo Monthly.......Reporting: Naomi Canton Mumbai Photographs: Ritish Uttamchandani
AS RAYMOND Raphael, 28, takes a break from work over coffee at a Barista near his office, his mobile rings and his break swiftly comes to an end.
One of his vendors has just reached the warehouse to deliver some car-cleaning products. But it is closed and the salesman is mad as it means he will have to come back the next day. Raymond, category manager for sports, toys and stationery at HyperCITY, a hypermarket in Malad, efficiently deals with the matter. He immediately rings the warehouse manager and persuades him to accept the delivery. "In my job, it is important to have a good relationship with the warehouse manager. Him and everyone in each department," he said, sipping the latte. Raymond's job is not just about building relationships. He makes the final decision on which products to sell in his category, makes sure the category meets sales and profit targets and, if it doesn't, explain to the management why not. He also has to meet vendors, some of who are not in the organised sector. Many fail to deliver on time or try to sell unlicensed products and it's Raymond's job to guard against this. Despite the pressures, it has a glamorous side. He accompanies buyers to trade fairs overseas and earns more than some of his MBA peers. A new challenge This is not what he had planned. When he applied for an MBA five years ago, he wanted to become an investment banker. But during the two-year course he was attracted by the challenges retail offered. "Not too many professionals were entering it; it needed a lot of sorting out," he said. "Companies were disorganised, and the challenge was to organise the entire thing and align vendors to companies' needs. I was also interested in consumer psychology and store layouts. I thought this was more interesting than banking." Raymond, who shares a two bedroom flat in Andheri with friends, is a Catholic Tamilian from Ranchi in Jharkhand. He is one of many MBAs recruited to work in Mumbai from campuses across India. "I like seeing different cultures and food," he said. "Retail gives you great global exposure, and my outlook has changed as a result. But the travel is not the main draw, it's the day-to-day job. "I could never see myself as a store manager. I like the analysis and strategising," he added, now back at his desk, surfing the net to check out the competition's toy products. Every day, he checks the previous day's sales. If stocks are low, he arranges for them to be transferred. He also has to prepare sales analysis reports or make presentations to management. Buyers, who source from new suppliers and merchandisers who control the stock, report to Raymond. He develops the overall strategy for his category, such as how much of sports should focus on cricket and whether toys should be interactive. He makes the final decision on prices, works out how much space should be dedicated to a category in a new store and supplys inputs on the look of a section. "You need to keep pace with what is happening in your category even in your spare time," he said. "If I see an item not at my store on holiday, then I pick it up and read up on it. You need to be passionate about your category." Hard-working types Outside work, Raymond plays the syn thesiser, listens to music, is devoutly reli gious and hangs out in coffee shops. Meanwhile, at Mindspace, an industrial estate in Malad, most men are dressed in silk shirts and chino trousers and sport short haircuts. The offices are smart and functional, not trendy, and everyone seems busy. Some staffers are single and some are married, and there are as many women as men. Shweta Mohile, 26, category manager for gourmet, ready and instant foods, said: "People in retail are neither trendy nor glamorous. They are hard-working types. I wouldn't mind staying in it my whole ca reer. It's the best career in India right now. My earnings are high and I want to grow, and I feel I can do it here." On weekends, Shweta unwinds by watching Bollywood movies, swimming and bowling. Komal Kaul, 27, also an MBA, is category manager for high-tech goods. "I enjoy it be cause you need to be in touch with the con sumer and you get to decide what will be sold in a store at what price," she said. She enjoys travelling, reading and watching movies. "I will stay in this career as long as I feel I am adding value," Raymond said. "After a few years, I might teach retail at MBA colleges as there is a dearth of teach ers with industry experience. I might even start a retail consultancy firm." ---------------------------------------------- Case study rapidfire Star sign: Virgo Favourite bar? Ruby Tuesday, Inorbit Mall What do you do in your spare time? Play music. I'm taking les sons on the synthesiser. I catch up with friends twice a month. We go see a film or go shopping. Occasionally, we visit a bar. Favourite music: Slow rock, ghazals. What films and books inspire you? Sam Walton's Made in America. What do you think of religion? It's a way of life. I'm Roman Catholic, and I'm very particular about prayer. Who's your best friend? My girlfriend. I've been with her for nine years and we will tie the knot next year. If you weren't a category manager, what would you be? A banker. ---------------------------------------------------- Case study A day in his life 7:00 am: Wakes up. 7:30 am: Goes for a walk or does push ups and crunches. 8:15 am: Showers, eats paratha, pickles, curried vegetables and eggs for breakfast, with black tea. 9:00 am: Roommate drives him to work at Malad. 9.30 am: Checks previous day's sales in his category. If a product sold well, he tells merchandiser to transfer of stock from warehouse or vendor. 10:00 am: Checks e mail, prepares for meetings. May need to prepare sales analysis report, explain to business head why sales met or did not meet targets, or help with layout plan for his category in a new store. 1:30 pm: Has lunch of rice, dal and curry in canteen. 2:00 pm: Meets vendor, probably in office, inspects products together with buyer. 3:00 pm: Surfs the net to examine trends in his cate gory. Might even wander around Inorbit Mall to see the latest trends. 4:00 pm: Tea break, then checks mail. 6:30 to 7:00pm: Leaves for home. 8:00 pm: Reaches home. may play the synthesiser, or watches TV with his flatmates, phones his parentss. 11:30 pm to midnight: Goes to bed. --------------------------------------------------------- Case Study The growth of modern retail is like the telephone boom, which revolutionised India. We are trying to cut the middle man out and bring the common man savings. AJIT JOSHI, CEO And MD of Infiniti Retail CHATROOM: BEHIND THE SCENES WITH RAYMOND RAPHAEL The bulk of new jobs will be in operations rather than buying and merchandising. What kind of person is suited for the position of category manager? It would suit someone with a an analytical bent of mind, who is good at using systems like Excel, who has a structured thought process, a problem-solving ability and who is really hard working. It is a desk job. You have to be self-motivated, spend your spare time looking at the Net at possible new products and competitive products and structure your day yourself. You need confidence, presentation skills, communication skills, good English and leadership skills because you need to be able to get work done from your team. What kind of people end up in the job? All types , the night-clubbing as well as non-partying types. There were people in my MBA class who had family businesses and didn't need jobs, but joined simply to understand retail. Do you need an MBA to be a category manager? Someone who has not done an MBA could get a job like mine, but you need to be comfortable with numbers, be able to break down sales data and make sense of those numbers, understand at what rate your stock is selling and so on. An MBA helps you with that as well as with problem-solving as it structures the way you think.There is nothing to stop others from getting the job; you just need business acumen and understand what customers want and why. Where does your future lie? In the future, category managers will specialise more. Right now I'm doing three categories; in the future, I will probably have only one. The bulk of new jobs will be in operations rather than buying and merchandising. The next level for me is business head, which is all about strategising at a company level so you need very good leadership skills to get the job done. Do you like the travel? Normally, there is no time for socialising, but we get to go around trade fairs, buying goods and spotting trends. You can see the infrastructure there and compare the transport systems and airports and so on and see where we stand. It makes you realise we have a long way to go. What are the job's pros and cons? You can showcase your analytical and leadership skills and it gives you opportunities to interact with different types of people such as vendors, marketing people, buyers, visual merchandisers and store planners. The minuses are the long working hours, especially when you are opening a store. ---------------------------------------------- news you can use Show me the money BUYING AND MERCHANDISING LEVEL 1 Assistant buyer: Rs 25,000 to Rs 30,000 a month. Or Merchandiser or trader: Rs 33,000 a month. LEVEL 2 Buyer: Rs 50,000 a month. LEVEL 3 Category manager: Up to Rs 1 lakh a month. LEVEL 4 Business head: Up to Rs 4.4 lakh a month. OPERATIONS LEVEL 1 Customer service associate: Rs 5,000 to Rs 6,500 a month. Or Check-out associate: Rs 6,000 to 12,000 a month. LEVEL 2 Team leader: Rs 12,000 to 15,000 a month. LEVEL 3 Department/service manager : Up to Rs 1 lakh a month. LEVEL 4 Store operations manager: Rs 50,000 >> More on www.hindustantimes.com/hotnewcareers ------------------------------------------------- SKILLS BUYING AND MERCHANDISING 1. Have good English skills 2. Understand the retail domain 3. Possess consumer insights 4. Know how to make products and prices attractive 5. Be good with Excel and numbers 5. Be able to negotiate internally and with vendors OPERATIONS 1. Understand local customs, festivals and speak local language. 2. Willingness to work shifts 3. Good people skills and patience 4. Confidence, poise, presentation 5. Energy and positive attitude 6. An ability to learn and be flexible and versatile ------------------------------------------------------------ TRAINING MADURAI KAMARAJ UNIVERSITY Web site: www.niamindia.org Tel: (011)-2692-9250 Course: Bachelor of Business Administration (retail). This course is offered at 34 different institutes in India. In Mumbai, they are the International Business School and Maharashtra Educational Foundation. Cost: Rs 2,725 S.P. JAIN CENTER OF MANAGEMENT, MUMBAI Web site: www.spjain.org Tel: (022)-3290-6596 Course: Two year global MBA (split between Dubai and Singapore) Cost: $29,190 (Rs 11.67 lakh) >> More on www.hindustantimes.com/ hotnewcareers ------------------------------------------------------------------ GO GLOBAL Excellent opportunities exist to travel overseas, especially in buying and merchandising. Buyers and category managers regularly travel to trade fairs overseas to source new products and build on the existing supplier base. They also regularly deal with international vendors by phone or e-mail. Those working in senior positions in operations also get to travel to observe new trends and how stores operate and to swap information. Opportunities to work alongside foreign professionals in India also exist. Owing to the dearth of professionals, many companies have employed foreigners to work for them at a senior level, especially in buying and mechandising and senior management levels. The industry is too new for foreign firms to look to India to hire staff for their respective countries, but those with experience could look for jobs overseas. ---------------------------------------------------- PLUSES AND MINUSES BUYING AND MERCHANDISING 1. Good salary, glamorous 2. Global exposure 3. Talent crunch means you rise fast 4. Women rising as fast as men 5. Five-day week 6. Most of the new jobs will be in operations, not in buying and mer chandising. 7. Stressful OPERATIONS 1. Salaries up to Rs 15 lakh a year 2. Fantastic promotion prospects 3. May not have to migrate from your hometown as new stores open up 4. Top jobs usually go to graduates and MBAs 5. Long hours 6. Work in shifts and weekends 7. Six-day week 8. Pay relatively low at bottom-end ---------------------------------------------------- Case Study
MUSHROOMING MALLS - There\'s a dearth of mall managers in India.....SANJAY PRABHU, MANAGER, INORBIT MALL, MALAD
Malls are springing up across India. According to management consultants Technopak Advisors, there are 400 malls across India now, with 100 more expected by 2010. Mumbai currently has 15 malls with 45 more under construction.
With that explosion comes the creation of new jobs, and one job where there is a dearth of talent is that of the mall manager. The job is like that of the business head the candidate must make sure the mall makes a profit. This is done by renting out space to shops and for special promotions. It is also his or her responsibility to ensure the mall attracts customers who keep coming back. He or she has to be creative and not just advertise the mall, but host interesting events inside. He or she also has to build relationships with tenants, vendors and customers. "There's a dearth of mall managers in India," admitted Sanjay Prabhu, manager of Inorbit Mall, Malad, one of the largest in India. "Malls are springing up in all shapes and sizes, making it a career option to be looked at. It is a promising career as the business is booming due to the increase in people's demands. Also, malls are becoming more like community centres where people can spend time in clean, hygienic places with their families. And most malls have multiplexes and food courts as well as shopping, making it a complete experience for the family." "It's like running a five-stat hotel, so we like to recruit from the hospitality sector, though we are open to staff from other sectors. We prefer graduates with good customer service and management skills. You also need to be articulate and think on your feet," said Prabhu. "I would like to see more women enter this line," Prabhu added, "as they are intrinsically people's persons." Highlighting the problems, he said, "There is a lack of trained people who know how to enhance the mall experience. It's far more labour-intensive than a call centre. Also, malls, like all modern retail, are being held back by excessive real estate prices, so developers are concentrating on Tier 2 and 3 cities." The job: mall manager Suits: Work-hard, play-hard people Climb the ladder: Come up with innovative ideas that enhance the customer experience and add to revenues; display good decision-making skills; and manage people well. Minuses: Six-day weeks, long hours Global opportunities: You get to travel overseas to see how malls operate. -------------------------------------------------- THE INDUSTRY - Retail explosion
HE HUGE growth of the Indian economy means hat more people have more money to spend. The etail industry, with thousands of exciting and di erse job opportunities, is reaping the rewards.
Across India, the top 50 retailers will invest $35 illion (Rs 1.4 lakh crore) in modern retail in the ext six years and Mumbai has emerged as the ountry's retail capital. Everywhere you look, alls, supermarkets, hypermarkets, convenience tores and gourmet food stores have sprung up. obs have followed. The growing middle class - 70 million conumers are projected to become middle class over he next five years - are now demanding a better ifestyle and they have the money to pay for it. Arvind Singhal, chairman of management conultants, Technopak Advisors, said that Mumbai as been the epicentre because the retail explosion ere has had a domino effect. > More on www.hindustantimes.com/hotnewcareers ------------------------------------------------
Business buzz
THE RETAIL SECTOR IS EXPANDING AT A BREATHTAKNG PACE: HYPERCITY PLANS TO OPEN UP 68 NEW HYPERMARKETS IN THE NEXT FIVE YEARS. THE TATA GROUP'S RETAIL ARM, INFINITI, WILL OPEN 100 CROMA STORES BY 2010.THE FUTURE GROUP, WHICH OWNS BIG BAZAAR AND PANTALOON, WILL INCREASE ITS STAFF FIVEFOLD TO 125,000 BY 2010.
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BIG SHOT
In our organisation, if the CEO sees spinach on the floor he picks it up; he does not call a cleaner. We are here to build individuals who are not afraid of getting their hands dirty.
ANDREW LEVERMORE , CEO of HyperCITY HT spoke to Andrew Levermore, CEO of HyperCI Y, which opened its flagship hypermarket store n Malad in 2006, and plans to invest Rs 1,700 crore to open 68 new stores in India in the next five years. What challenges does modern retail face? Multiple tax laws and state governance hinders business between the supplier and distributor. The other challenge is building people. In the West you would have ten years to develop a senior executive. In India you need 24 months and if you don't do it in that time you will get in trouble. >> More on www.hindustantimes.com/hotnewcareers ----------------------------------------------- CHALLENGES
Challenges faced by Indian modern retail :
1. Multiple tax laws across India, varying state by tate, make direct supply chains almost impossible. 2. Poaching of staff and attrition rates are high wing to a lack of trained staff and relatively low alaries at entry-level positions. 3. A lack of space and the cost of real estate in umbai is prohibiting the entry of modern retail in ome parts. 4. Since India is a diverse country with different oods and colours preferred in each region, rolling ut chain stores that are carbon copies of each ther, will not work. --------------------------------------------------- QUIRKY FACTS
1. Kishore Biyani, who wrote the book It happened n India , deliberately designed Big Bazaar to be rowded and chaotic like an Indian bazaar, lacking n the glitz associated with modern retail, because e believed this was what Indian shoppers wanted.
2. Rural India accounts for 55 per cent of total pri ate consumption in India and is made up of 720 illion consumers. No retailer can afford to ignore he rural consumption market, but it is extremely iverse and the challenge is how to create a product hat meets its needs. 3. When the first shopping mall in Mumbai opened, t allowed only those visitors who had a credit card r mobile phone. ---------------------------------------------------
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