As new channels of growth take shape for 3M Car Care, we find
that success of each new channel depends significantly on the
presence of “3M Car Care Stores”. This post talks about relevance
of stores in a multi-channel environment
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3M Car Care Goes Store to Door
1. 3M Car Care goes “Store to Door”
As new channels of growth take shape for 3M Car Care, we find
that success of each new channel depends significantly on the
presence of “3M Car Care Stores”. This post talks about relevance
of stores in a multi-channel environment
Building a city priority index, doing a trading area analysis and finalizing
the next site for opening a store is the way retail industry has operated in
last several years. You just need a proven retail format to increase customer
base and sales to grow rapidly.
Not anymore; the younger demographics is changing the way we shop. In
many categories, e-commerce has dramatically curtailed the need for
physical stores. Shopping across channels has given new meaning to
“convenience” and “efficiency”. Does this mean that new channels will spell
the demise of physical stores? No, on the contrary, I feel brick and mortar
2. stores can offer a competitive advantage to new channels of business. If
new channels of delivery are chosen cleverly, the presence of stores can be
the reason for growth of these channels and vice versa.
At 3M Car Care stores, apart from the core service, experiencing how 3M
delivers this service is the reason for customers’ visit. Several customers
visit the 3M store on a weekend just to sit in the guest lounge, sip over a cup
of coffee and spend hours with their laptops while their car gets a
makeover. On occasions, small kids tag along and play at the store with the
toy cars we provide, putting so much more life into our stores. The car
owners do not visit the store for free wifi; they are there because of the way
we treat them and the power of products we have to offer.
Customers leave Post-it notes at store
Today, 3M Car Care stores have Net Promoter Scores (NPS) upwards of
88%. This kind of loyalty is a result of the experience that we have been able
to provide in a physical environment that we call a store. The credibility 3M
3. Car Care has gained by providing this experience has helped us adopt new
routes to the market. One such promising route is “Mobile Detailing”.
STORE TO DOOR: There are sixty 3M Branded car detailing stores
operating in 17 cities across India today. A key consumer insight that
emerged while running the business was that for some services, the
customer wishes to come to a 3M store while for others he wants 3M to
come to his house.
With this insight, the concept of Mobile detailing took shape. A van was
designed to carry all the required tools and equipment and trained staff to
deliver detailing services at customers door step. After much deliberation,
this was branded “Store to Door”, the name itself underscoring the
importance of the physical format.
Through these mobile units, we hope to fully penetrate trading area of each
physical store and auto dealerships (another big channel for 3M Car Care).
Once there are enough units in a city, demand aggregation and fulfillment
would be effected through clever technology (the way we get taxis through
apps.)
3M Store to Door on Bloomberg
https://www.youtube.com/watch?v=e1qLaoKmbPI
There are two such vans operating on experimental basis for last 45 days in
Bangalore and Chennai. The customer acquisition and satisfaction scores
have seen noticeable movement in last few weeks. The two channels are
complimenting each other in a fantastic way. We feel that this will grow the
category itself in a big way.
Retailing will continue to evolve, probably faster as we move ahead in time.
However, one thing that will stay is that the retailers that can satisfy the
4. customer, irrespective of where she shops, are the ones who are going to
define the future of retailing.
About the Author: Vishesh Nigam is heading 3M Car Care business in
India for 3M India Ltd. He built this business from ground up and firmly
believes in the need for constant evolution of business model, mirroring
customers’ changing needs. He views this as a competitive advantage and
a way of keeping ahead in business