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Being Compliant is the Way to Sustain in Changing Market Environment

 

Sachin Jain, Vardhman Jewellers, talks about how important it is even for a small jeweler to do business in organized way in changing market enviroment. Excerpts..

 

Tell us about your company and about Bhiwani market.

 

Bhiwani is surrounded by many small villages. So, mostly we are catering to rural and semi-urban customers ranging from lower to upper middle class. We started in 1989 and we deal in gold, diamond and silver jewellery. We have currently yearly turnover of around Rs. 85 million. As of now we have only one store and not looking for any other store elsewhere. We are planning a bigger store here in Bhiwani only by 2019.

 

 

You are a single store retail in a small city in Haryana. How is the trade characteristic? (Normally, jewelry sector is still unorganized mostly especially in smaller cities.)

 

Mostly market is dominated by single-store Jewellers here in Haryana. In Bhiwani, there had not been any chain store till last year when P C Jewellers opened a new store here. Every other store here in our town is unorganized and prefers to work in Kachcha.

 

How do you place yourself, an unorganized retailer or an organized retailer? If you consider yourself an organized retailer, what kind of compliance are you adhering to? Is it an advantage for an organized retailer with changing market dynamics especially after implementation of GST?

 

Contrary to popular belief, we are well organized despite being a single-store small retailer. Generally, in a small town like ours, small and medium retailers think one needs to have more than one store to become organized. For me, being organized means having everything in written and keeping transparency with customers and adhering to government regulations. Having a good CRM system, Hallmarking, certification, good hospitality, offering many payment methods viz. RTGS, NEFT, Cheque, online transfer, card swiping etc helps keeping transparency with customers. And complying with all the rules & regulations viz. GST billing, filing returns on time, maintaining books, having clean money involved in business is part of the keeping transparency with the Government.

 

 

 How does an ‘organized’ medium size retailer can sustain in a market place as he has to compete both with unorganized local players as well as organized national players?

Key to sustain in any market for anyone is to comply with all the rules & regulations. Government itself tells us how to keep all the records viz. inventory, workshop, work-in-progress, logistics, sales, purchase and what not. Rest is general store management and marketing. GST billing helps you take number and address of the customers which can further help in reaching your customers via WhatsApp or sms.

 

I want to answer this with the help of the following table:

 

Compliance

Solutions for the problems

 

Hallmarking

Better Inventory Control

Better control on quality

Protection from suppliers

Customer’s trust

 

 

GST

Logistics

Insurance

Karigar Accounts

Suppliers’ Accounts

Customers Database

CRM

Less Bad Debts

 

 

E-way Bill

Hassel free movement of goods

Insurance

 

 

 

One of the biggest problems of small & medium businesses is finance. And once we switch to the legitimate way of doing business, we get more funds from Banks at better interest rates. And this is crucial not only for expansion but for better sustainability in the current competitive environment where margins are going down.

 

 

·         Mandatory hallmarking is coming into force in any time. What will be advantage for an organized retailer?

 

Large businesses already have a brand name and trust. Hallmarking will help small & medium retailers in a big way to win customers’ trust. To get maximum out of the mandatory hallmarking, one has to be organized enough to better take care of inventory, logistics, quality control etc.

 

 

Disclaimer: Views are personal and not the views of the publisher.