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Fresh Insights into the New Retail Frontier
Over 80 CEOs attended the 'The Retail Leadership Forum' to gain insights from overseas experts on new and innovative retail strategies and global best practices. It also provided the opportunity for leaders of Singapore's retail industy to network and share their ideas.
The retail industry in Singapore is going through major changes, with new malls opening and existing ones refurbishing and adding new extensions. In the south, the iconic new VivoCity opened amidst much fanfare. In the east, shopping has arrived in a big way, with IKEA, Courts and Giant. In the tourist belt and central area, Velocity and Centrepoint are the latest to welcome shoppers with added and upgraded space, and integrated retail and dining offerings.
So what does all this mean to Singapore retailers? What must they do to enhance the shopping experience and keep customers coming back? Over 80 CEOs attended the 'The Retail Leadership Forum' to gain insights from overseas experts on new and innovative retail strategies and global best practices. The closed-door forum, organised by SPRING Singapore, also provided the opportunity for leaders of Singapores retail industy to network and share their ideas.
In his welcome to participants, Mr Png Cheong Boon, Deputy Chief Executive of SPRING Singapore said SPRING will adopt four key strategies to develop the industry - reinvigorate the retail sector, raise retail standards, enhance retail capabilities and increase retail market size. Mr Png added, "If the industry is successful in implementing the four strategies, we are confident that the industry's contribution to the Singapore's economy in terms of value add will double by 2015 and create 25,000 new jobs."
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| Over 80 CEOs attended the 'The Retail Leadership Forum' to gain insights from overseas experts on new and innovative retail strategies and global best practices. It also provided the opportunity for leaders of Singapore's retail industy to network and share their ideas. |
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Two internationally-renowned speakers were invited for the forum
Professor John Stanton of Saint Joseph's University in Philadelphia and author of "Success Leaves Clues" followed the trails of successful companies to find common traits and best practices. He identified leadership as the most important trait found among successful companies. His advice to retailers was that money came from the purses of customers, and not from products. "Profits are made from customers who buy the products and the better we take care of them, the more money we make. Retailers can learn this from one of Singapore's own airline. Singapore Airlines does not have the lowest fares but customers are willing to pay for quality service," he said.
Comparing Singapore retailers to those in western countries, Professor Stanton said there was a larger number of independent stores here, hence the variability in customer service. He also noted that consumers here appeared to be more willing to put up with bad service. As people travelled more and experienced better service in other countries, or as larger retail chains here raised their customer service, service at local retailers may pale in comparison. So if Singapore wanted to attract more tourists, our retailers must provide international standards of customer service.
The other keynote speaker was Mr Robert Spector, best-selling author of "The Nordstrom Way" and international speaker on world-class customer service.
 Robert Spector's Nine Management Principles | |
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Provide your customers with choices - products, services, and service channels |
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Create an inviting place - in person, online, and on the phone |
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Sell the Relationship: service your customers through the products and services you offer |
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Hire nice, motivated people |
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Empower employees to take ownership by minimising the rules. |
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Sustain the people on the frontlines through a culture of support and mentorship |
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Nurture a service culture through recognition and praise |
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Advocate teamwork through internal customer service |
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9) |
Commit 100% to customer service |
His focus was on how excellent customer service generated greater revenue. He highlighted nine principles that retailers should follow (see box story). Nordstorm is an American department store renowned for providing excellent customer service. Its immense success has set the standard for service even for other industries, and has played an integral part in emphasising the positive relationship between service and revenue.
Mr Spector said Nordstrom was successful because it spread its service culture among its employees. To Nordstrom employees, customer service is not a strategy. Customer service is a way of life. The key to good customer service was to think like the customer.
Asked what he thought of local retailers, Mr Spector said Singapore's SME retailers needed to be more creative and forward-thinking in order to attract and retain customers. This was especially so as Singapore wanted to become a top shopping destination in the region. He said, "Local retailers must understand that their competitors can offer similar products at similar prices. In order to continue attracting overseas shoppers, Singapore retailers must gain a competitive edge in customer service."
And if he were to give just one piece of advice to local retailers, what would it be? "Be focused, and find your market niche. And when you find that niche, offer the very best products, the very best prices and the very best customer service." ET