Select Page

    Electronics | Home Appliances

    Electronics | Home Appliances

    I) Challenges faced by Home Appliances & Electronics Industry

    The home appliances and electronics industry has a complete retail chain, right from the manufacturer, to the distributor, dealer and retailer to customer. Margins narrow on account of several mediators. Common problems faced by the industry include increase in operating cost to reduced margins.

    #1. Need for Omni-Channel Strategies

    As ecommerce expands, home appliances and electronics are sectors greatly impacted by this. Businesses are increasingly facing the challenge of striving towards omnichannel strategies for growth. Both offline and online models of business represent an avenue for electronics and home appliances brands to expand their reach. With the right SOP and retail consultancy to help them, these businesses can secure the growth they need.

    #2. Selling Price

    The electronics value chain is under intense pressure in terms of price. In such a smart, automated and constantly changing market, incumbents are facing threat of disruption and agile transformation. Startups face immense challenges to achieve significant market share. Companies also have to rethink how they operate. Business model innovation is essential for survival of electronic companies in the evolutionary curve at major inflection points.

    #3. Technology

    Combination of tracking and tracing technologies have transformed elements on real-time actions, enhanced safety levels and improved traceability across the value chain, including original components. Technologies can lead to better controls, inventory traceability and management. Increased automation in the warehouse and the use of EDI, AGVs and ASRS or pick by voice are changing how business is managed in the home appliances and electronics sector.

    These automations lead to reduced damages, improved last mile delivery turnaround time and improved cost structures, with reduced space and manpower requirements.

    The international electronics industry is facing unprecedented changes and challenges worldwide. Innovation and agility are leading to competitive advantage for organizations, regardless of size. So companies need to benefit from new as well as emerging technologies. New technologies are penetrating the market within a fraction of time it takes older technologies to do so. Disruptors are cashing in on technologies and solid infrastructure to boost market share.

    Electronics companies have taken advantage of the changes in the market by enhancing capabilities. They are also becoming more advanced in their approach to capital markets, development of deep consumer insights, building technical capabilities and developing pricing strategies. As consumers move to lower end-market prices and manufacturers seek to raise market penetration, material, labor and additional operating costs grow.

    #4. Staff Retention

    Different turnover rates exist across the industries, with the retail and hospitality industry having higher attrition rates compared to other industries. But high turnover rates can be really expensive. When one thinks about investment in training and recruiting employees, one is not getting returns on the investment. Tangible costs also include the termination process as well as the cost of a contractor or temporary worker. Intangible costs also need to be factored in, such as falling productivity levels due to changing office dynamics and loss of institutional knowledge. The rest of the employees may experience this, when workload rises due to vacant positions.

    #5. Talent Crisis

    Another big problem for the electronics and home appliances industry is lack of skilled and educated manpower. An organization that prioritizes talent in growth strategies knows how to attract the brightest and best. A welcoming approach is essential. In today’s highly connected and sharing cultures, employers cannot let job applicants languish. They may feel neglected when being considered for a job. Companies, therefore, need a disciplined approach in creating a memorable hiring journey. SOPs for end-to-end measurement of the touchpoints job seekers encounter is important. This includes presence on social media, employee review sites and the web, all the way to internal contacts and post-disposition. Knowledge of how the company performs at each point determines if the journey created is pleasant, authentic and engaging. It is the basis for corrective actions to improve the recruitment process.

    Talent acquisition alone is one of the biggest challenges facing business, particularly in the HR department. It is a consideration that individuals in the industry are coping with skill shortages. A global talent crisis is brewing resulting in unrealized annual revenue shortage by 2030. It takes three levers namely cost, speed and quality for skilled labor to be attracted within such a competitive industry as home appliances and electronics.

    #6. Monitoring and Regulation

    Another major concern for the sales and marketing team on-field most of the time during the day is monitoring and regulation of campaigns. Even to set up online electronic store requires well defined SOPs and regular process audits, on similar lines for brick-n-mortar, electronic store SOPs shall streamline and organize operations.

    #7. Supply Chain

    Inherited challenges of this industry on a global scale revolve around fragmented logistics players, and rising warehousing prices. The entire logistics cost is high and supply chain as well as inventory management remain major challenges for the electronics and home appliances industry.

    II) Why Opt for YRC Consulting?

    If you need reliable retail business consulting and looking for experts to design SOPs for the retail business that makes a real difference, get in touch with YRC team. Your Retail Coach is known for its retail strategists and specialists skilled for retail store SOPs and ecommerce business consulting. YRC SOP Consulting shall not only help in standardizing the operations but also can help in expansion with better control, especially with respect to omnichannel growth strategies.

    III) About Home Appliances & Electronics Industry

    Home appliances and electronics availability has multiplied across online & offline channels. The contributing factors for this include cost-effective pricing, innovative products, product awareness, modern lifestyles, highly flexible incomes and an increasing consumption pattern for home appliances and electronics.

    In the digital era, home appliances and electronics sector has experienced digital transformation, booming growth, but the global electronics sector is highly fragmented, comprising ancillary sectors like computer and office equipment, electronic components, telecommunications, industrial electronics and consumer appliances.

    Frost and Sullivan have estimated that the electronic product market dominated with 81 percent share in the ESDM/ Electronic System Design and manufacturing industry in recent years, while Electronic Manufacturing Services and Components industries (EMS) are set to experience booming growth rates between 2014 and 2021.

    Original Equipment Production/OEP is set to grow at 1.6X times the OEM or Original Equipment Market/OEM. Effective expansion and implementation of regulatory and policy measures globally are the crucial element for defining the electronic product manufacturing market’s growth. The TV market alone represents the biggest category in the consumer electronics market.

    The home appliances market is a mix of low-value, high-volume products. A look at the macroeconomic environment suggests the consumption story for the Home Appliances and Electronics sector is poised for uninterrupted growth, making it a high-potential market for the retail and consumer goods sector. Many brands are even looking to open chain of electronic stores. The online business of home appliances and electronics is also set to grow.

    Get Advice for Home Appliances & Electronics Industry Consulting

    7 + 3 =

    Related Blogs

    5 Things to Check Before Investing in a Franchise Brand

    5 Things to Check Before Investing in a Franchise Brand

    Unlike in case of startups where everything is planned from the scratch, in a franchise business, the franchisees get to work on a predefined ready-made business platform which saves them from the struggle and hardships of starting a business from nothing and help...

    read more
    How can an Indian SME Attract Investment?

    How can an Indian SME Attract Investment?

    The official records put the number of MSMEs existing in India at over 500 lakhs approximately. The numbers may appear frightening for budding entrepreneurs and other existing SMEs as it may present an exaggerated picture of competition. However, it also needs to be...

    read more

    We work only for Visionaries.

    PROCESS AUTOMATION

    The idea of having Ecommerce Consultants on-board from the beginning itself points towards reducing the involvement of the promoters in daily operations. Ecommerce Businesses willing to be a brand reaping profits & sustaining the competition must ensure that most of their processes should be automated. The more the manual intervention, the more would be the errors.

    In Ecommerce business, you get only 1 chance to impress the customer & if you mess up there, you lose the customer for long.

    Process automation in respect to all the activities pertaining to customers from order receiving to order fulfilment is a must for a seamless experience for the customers.

    Task Management is another grey area where most deadlines fail as 90% of the tasks are assigned manually & are forgotten, unheard, misunderstood or mistaken.

    YRC Team of Ecommerce Management Consultants helps to make maximum of the processes system-driven to ensure minimalistic manual intervention.

    VIDEOGRAPHY & PHOTOGRAPHY

    No matter how good your product is, the customer would know only if it looks good.

    Photography includes the following steps:

    • Cataloguing your products
    • Cataloguing your images
    • Backup your images (A few cloud storage solutions include Dropbox, Google Drive, Bitcasa, Apple’s Cloud Storage etc.)
    • Choose the right camera & lens (You may also outsource the photography to a third party agency)

    DIGITAL MARKETING

    Digital Marketing includes SEO & SMM. SEO i.e. Search Engine Optimization includes activities like back-linking, meta tags, blog-writing etc. to ensure your website ranks on the 1st page on Google Search.

    Next comes SMM i.e. “Social Media Marketing” which as the name suggests including promoting your products on all the social media sites, email marketing, influencer marketing & several other BTL activities.

    These activities are going to be recurring & would decide the traffic on the website, the conversions, whether the right target market is tapped, the likes, the views, the orders, the reviews & much more. YRCs Ecommerce Consultants create a budget for digital marketing right from pre-launch to launch & for each month thereafter.

    Building digital marketing strategies in coordination with the agency, selecting them to signing them off would be the role of YRC.

    This ensures seamless coordination, detailed interactions & desired execution as it is always advisable to work with a single agency than multiple of them.

    IT INTEGRATION

    Selection of the right software for smooth functioning of back-end operations right from production to webstore display would be suggested and integrated by YRC Team.

    YRC’s Team defines SOPs of Product Movement, maps it with the locations & people. They then create a blueprint of all the features required in the software & help in shortlisting & selection.

    IT Integration involves connecting your offline inventories with real-time online webstore so when a sale occurs, inventories get deducted real time across offline as well as online platforms.

    This helps in accurate inventory management, maintaining the MOQs, re-order levels & achieving the optimum inventory levels.

    Some popular software include unicommerce, viniculum for your front-end website management & Genisys for your entire back-end Purchase, Production, Accounting, Invoicing etc. management.

    WAREHOUSE & LOGISTICS PLANNING

    • How many cities or countries you wish to sell in?
    • Where should your Warehouse be located?
    • Should you have one warehouse in each country or city?
    • Should you be having your own delivery team in your base city?
    • Would the 3rd party vendors be reliable? What happens when they lose or misplace your product during delivery?
    • How should I manage the logistics if my goods are coming from different countries?
    • How should the goods be stored and barcoded?
    • How much space do I require for warehouse?
    • I am sure several such questions must be haunting you while you think of starting your own fashion ecommerce brand.

     

    At YRC, our warehousing and logistics experts can help you devise a strategy for all of the above mentioned queries and much more.

    We design the layout of the Warehouse considering the inward, goods processing, software entry, barcoding, outward, goods return, scrap storage, goods stacking & much more.

    Logistics route plan is devised considering the manufacturer to your warehouse and from there to last mile delivery locations.

    UI & UX DESIGNING

    This Step involves 03 distinct parts:

    Part 1: Choosing the right Platform:

    From several platforms available in the market right from Shopify to magento, woocommerce, prestoshop, wordpress etc. you must choose the one that fits best for your business

    Part 2: UX Designing:

    “UX” denotes User Experience, which if put in simple language is building the functional requirements of the website.

    UX Designing includes designing the features required in the website, customer journey map, website features, the browsing features, navigation features, ecommerce order management process flow, checkout cart features, catalogue management, ecommerce payment system, cross selling features & much more.

    “As per statistics, 68% of the customers abandon the carts before payment”

    An interesting UX ensures the customer sticks on to the website for a longer time.

    Part 3: UI Designing:

    UI stands for User Interface, which means designing the look and feel of the website. UI includes using the right colours, elements and the entire aesthetics of the website.

    A good User Interface ensures the user completes the task that he has come for. It navigates the user through the journey of the brand in the simplest but most effective way.

    The UX designer maps out the bare bones of the user journey; the UI designer then fills it in with visual and interactive elements.

    If User experience is the bare bone, user interface wraps it up with an attractive cape.

    At YRC, our team if experts can help you develop the entire User Journey to ensure it is engaging!

    SAMPLING & PRODUCTION

    This step follows the “Designing” Phase, whether you have an in-house design team, freelance designers or an outsourced design company. It is one of the most exciting phases, as here you see your designs turning into products & your ideas turning into reality.

    In most start-up cases, production is outsourced i.e. brands tie-up with the established manufacturers/ job-workers to get their products manufactured.

    Sampling involves multiple 04 Stages, Fit-Sample, Prototype Sample, Pre-Production Sample & the Production Sample.

    Prototype Sample is the first sample provided to the buyer. It can be in any fabric/ colour. This sample is just to understand whether the product design looks equally great in reality.

    Fit Sample, as the name suggests is prepared to check the fit of the garment i.e. the various sizes, length, width etc.

    Pre-production is made by the actual production line. Here the stitching quality and other aspects related to manufacturing are checked. This is the last stage where rejection can be accepted.

    Production Sample is made before the production which is the replica of what is going to be finally produced.

    Once you are through with all this, you are good to go ahead & get your goods manufactured.

    PRODUCT DESIGNING / SOURCING

    Product Designing or Sourcing is the heart of the Ecommerce Fashion Brand.

    Product Designing / Sourcing can be done in several ways, as follows:

    • In-house Design Team
    • Freelance Designers
    • Outsourced Design Team
    • Ready Product Sourcing (From Manufacturer or Wholesaler)

    At YRC, we evaluate your business strategy & business model to arrive at the decision, which of the above ways would be best-fit for your business. In certain cases, product sourcing may be a combination of the above.

    These are the people who are going to build your brand! Whether they are the designers or merchandiser, your brand look is going to be in their hands.

    If you are designing each garment from the scratch, the sourcing would play crucial role in developing design identity of your brand.

    Sourcing includes fabric, trims, lining & all the raw material required to build the garment.

    BRANDING

    Branding is the “Look of the Brand”, right from logo to tagline, the colours used, the brand story, the brand communications on social media, the packaging & all the other aspects which speak directly or indirectly to the customers. Branding constitutes the look & feel of the brand & hence must be thoughtfully planned to match with the product that we are selling.

    Branding must appeal to our target audience. Example : A golden colour logo depicting finesse, art, richness, premium, however beautiful it may be individually cannot go with a brand selling affordable kids wear products. So, your logo must be in-line with your brand positioning, whether you are an expensive brand or a luxury brand or a value for money brand, it must be depicted from your “Branding”.

    It is an integral part to attract the target audience.

    ORGANOGRAMS & SOP’s

    Organogram is the “HR Blueprint” of the business which is created at the onset, to map out the team required across each function at various stages of the business. At the launch, only key people need to be got on board to ensure the project gets started & at this stage, all of them need to multi-task. Similarly, certain financial as well as operational goals are set for addition of the further team. Example, for the operations team, we hire 1 operations manager during the pre-launch phase & we add 1 more only when the business kicks-off & we reach a volume of selling more than 1000 pcs/ month or a turnover of more than 0.1 million USD.

    SOPs are Standard Operating Procedures, a bible to run the entire organization right from Sales, Purchase, HR, Order receiving to Order fulfilment, Inventory Management, Accounts, Warehouse, Logistics, Supply Chain, Production & all the other relevant functions for the business. Business must be organized from its first day of operations; only then the tasks can be delegated.

    At YRC, we design the organization structure, the processes, and approximate time taken to execute each process, job profile of every member within the organization, their KRAs, KPIs & the Reporting Structure.

    CRITICAL PATHWAY

    Critical Pathway Analysis (CPA), is a project management technique which cannot be overlooked while launching an ecommerce fashion brand. Brand launch process is cumbersome with multiple inter-dependent & time-bound tasks involved, which need to be tracked to ensure the project remains on track.

    CPA outlines key tasks across the project, their turnaround time (TAT) & the dependencies of tasks upon each other. It identifies the sequence of tasks, their interdependent steps from inception to completion, their criticalities, and their dates of onset, target dates of completion along with the key responsible person for the respective activities. Critical Pathway helps in understanding the unimportant & not urgent tasks which may jeopardize the execution of the project because of an unexpected snag! It also maps out the potential bottlenecks which might be posed because of the dependencies of tasks upon each other & cases where the next task cannot be commenced before the completion of the previous one.

    CPA detects the minimum & the maximum time involvement of a particular individual or team to execute the task, thereby arriving at the overall deadlines associated with the project.

    At Your Retail Coach, we design the Critical Pathway & review it periodically to ensure the project is on track & the progress is measurable.

    BUSINESS STRATEGY & BUSINESS PLAN

    Business Strategy includes the vision, mission, goals, business model, business plan & strategy for all the functions within the organization.

    Business Strategy is a well-defined plan that outlines who, what, where, why, how & when for the company; for example, who would be the target market, how to attract the target audience, when to launch new products, where to operate from, how to handle competitors, what would be the USP, what would be long term goal of the organization & several other answers to the 5Ws of Strategy.

    Business Strategy aligns the organization towards a common goal. Business SWOT helps company to identify & overcome their weaknesses & focus to sharpen the strengths. Business strategy forecasts future risks and helps business in building skillsets to overcome the potential threats.

    YRC’s Business Plan focuses on creating a “Blueprint” of the business, thereby deriving the feasibility of the concept & gauge whether the opportunity is lucrative to invest time, energy & effort. Business Plan creates cash flow understanding i.e. building inflow & outflow cash projections from Week zero to week 60 i.e. 05 year projection. Business Plan calculates the capital investment, operating costs, one-time costs, recurring costs & all the other numbers relevant to obtain the breakeven sales, return on investment, return on capital, internal rate of return & several other ratios. Business Plan is also one of the important requirements if you are targeting the “Investor Route”. Fund raising becomes extremely transparent & channelized. With business plan panned out clearly, the business will know until what point must it be stretched & where to stop, which reduces the probability of unplanned investments.

    MARKET RESEARCH

    Starting the concept of Ecommerce Fashion brand with Market Research ensures we get detailed understanding of the industry & this research report also acts as a social confirmation for your concept. Market Research helps in understanding the target locations, their population, potential online buyers for your product, competitors for each category, and top selling products of the competitors, competitors’ price range, offers & their responses & much more. Market Research helps in thorough understanding of your brand position as compared to our competitors. It helps in identifying gaps in the market, in your category along with the scope of the said product in the desired market. This will help in validation of your concept & prevents you from making the same mistakes as your fellow brands, eventually saving your time, energy & efforts. This phase is also a make or a break phase, as the market research study may at-times come up with some eye-popping numbers & statistics which might compel you to re-think on your product or category that you are planning to sell or alter your entire concept itself!! Market Research Reports analyse the competitors’ webstore for their traffic, conversion & sales. This is extremely valuable information to derive our inventory budgets & projections, which takes us to our next phase.