What shoppers want
July 4, 2005 | 12:00am
Following the hypermart experience in the region, Rustan’s SuperCenters, Inc. should have started making money from its Shopwise chain after six years and only if a critical mass of stores were opened.
The company broke even on its fifth year in 2004 with only three stores.
"As long as we stay focused on our vision of bringing quality shopping experience to all our customers, especially the working class, the company will continue to grow," said marketing and merchandising head Catherine Tantoco, who is in the middle of preparations to open the chain’s sixth store before the end of the third quarter.
For Shopwise, quality shopping experience covers everything from the store’s spacious and well-lighted ambiance to the simple layout that makes it easy for shoppers to find what they are looking to the clean bathrooms. It covers produce that are directly sourced from farmers to clothes and make-up purchased from the same suppliers as Rustan’s Department Store.
"Every store is different because the customer base being served is different. What is standard is all stores is the shopping experience, which is fun, clean, and gives value," said marketing consultant Frances Yu.
Rustan’s SuperCenters is a first for the Rustan’s Group, which has a corporate culture of going it alone. For Shopwise, the Group entered into a joint venture with Investment and Capital Corporation of the Philippines, which brought global technical and financial best practices into the equation. Rustan’s brought in its retail expertise, particularly in the high-end market.
This year, the joint venture brought in a third partner, the New York-based AIG, which has set aside P1 billion for the hypermart chain’s expansion.
"Since the business is still a relatively young business here, we are not limited by what we can and cannot do. There are very few models we could emulate. We set the ‘best practices’ as we go along. Take our shopping hours. We used to be the only one which stay open until 11 p.m., two to three hours longer than our competitors. Now, our competitors have extended their shopping hours by at least an hour," said Tantoco.
Some of the ideas initiated by Shopwise have elicited quicker responses from competitors. Almost all of the newly built hypermarts have wider aisles to accommodate bigger shopping carts that carry both children and goods. Instead of raffle tickets, reward points are assigned, which consumers can exchange for either gift certificates or goods.
"We make it a point to listen to our customers and then we give them what they want, with a little extra thrown in. Because we know that our consumers bring their kids with them when they go shopping, we have shopping carts that look like cars that can hold two children and 60 liters of goods. We have our ‘Wise card’, which enables our customers to conveniently go online to check on how many reward points they already have anytime of the day," said Yu.
Some of the marketing ideas implemented in the Shopwise chain were copied from other industries. One such example is the giving of numbers to shopper buying meat, bread or any product that requires queuing or lining up.
"The best ideas are always the simple ones. They are easy to execute and they, oftentimes, do not require a lot of money to implement. We got that particular idea from the practice in doctors’ offices of issuing a number to each patient who comes in. This is a promise that he/she will be attended to in an orderly manner during the course of the day. This is the same promise we give our shoppers. They don’t have to fight to get to the front of the line; their turn will come," said Tantoco.
One of the lessons learned is the attractiveness of value packs, even if these involve a higher cash out and run counter to another retail industry trend–the sachet.
"Offering a 5% or 10% discount is not as attractive as value packs. It’s a marketing strategy of abundance. For a little more money, they get a bar of soap plus a soap dish or a face towel. The added value for them is instant," said Tantoco.
Clearly, Rustan’s SuperCenters, Inc. intends to continue giving its shoppers what they want–and a little more.
The company broke even on its fifth year in 2004 with only three stores.
"As long as we stay focused on our vision of bringing quality shopping experience to all our customers, especially the working class, the company will continue to grow," said marketing and merchandising head Catherine Tantoco, who is in the middle of preparations to open the chain’s sixth store before the end of the third quarter.
For Shopwise, quality shopping experience covers everything from the store’s spacious and well-lighted ambiance to the simple layout that makes it easy for shoppers to find what they are looking to the clean bathrooms. It covers produce that are directly sourced from farmers to clothes and make-up purchased from the same suppliers as Rustan’s Department Store.
"Every store is different because the customer base being served is different. What is standard is all stores is the shopping experience, which is fun, clean, and gives value," said marketing consultant Frances Yu.
This year, the joint venture brought in a third partner, the New York-based AIG, which has set aside P1 billion for the hypermart chain’s expansion.
"Since the business is still a relatively young business here, we are not limited by what we can and cannot do. There are very few models we could emulate. We set the ‘best practices’ as we go along. Take our shopping hours. We used to be the only one which stay open until 11 p.m., two to three hours longer than our competitors. Now, our competitors have extended their shopping hours by at least an hour," said Tantoco.
Some of the ideas initiated by Shopwise have elicited quicker responses from competitors. Almost all of the newly built hypermarts have wider aisles to accommodate bigger shopping carts that carry both children and goods. Instead of raffle tickets, reward points are assigned, which consumers can exchange for either gift certificates or goods.
"We make it a point to listen to our customers and then we give them what they want, with a little extra thrown in. Because we know that our consumers bring their kids with them when they go shopping, we have shopping carts that look like cars that can hold two children and 60 liters of goods. We have our ‘Wise card’, which enables our customers to conveniently go online to check on how many reward points they already have anytime of the day," said Yu.
"The best ideas are always the simple ones. They are easy to execute and they, oftentimes, do not require a lot of money to implement. We got that particular idea from the practice in doctors’ offices of issuing a number to each patient who comes in. This is a promise that he/she will be attended to in an orderly manner during the course of the day. This is the same promise we give our shoppers. They don’t have to fight to get to the front of the line; their turn will come," said Tantoco.
One of the lessons learned is the attractiveness of value packs, even if these involve a higher cash out and run counter to another retail industry trend–the sachet.
"Offering a 5% or 10% discount is not as attractive as value packs. It’s a marketing strategy of abundance. For a little more money, they get a bar of soap plus a soap dish or a face towel. The added value for them is instant," said Tantoco.
Clearly, Rustan’s SuperCenters, Inc. intends to continue giving its shoppers what they want–and a little more.
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