As part of India’s leading Spirits Company, Mahaveer Wines faces the same challenges of retailers worldwide - as business expands so does shrink. Until Mahaveer Wines became a franchisee of United Spirits they were not practicing open merchandising. Although customer demand was high the merchandise was selling, but with a great amount of risk. Once they committed to displaying items openly instead of locking up wines and spirits, they began searching for Electronic Article Surveillance (EAS) solutions.
A major market study in December 2008 for Sensormatic by the Growth Partnership Company Frost & Sullivan (F&S) identified the need for loss prevention solutions in India, which helps shed light on the challenges Mahaveer faced. According to F&S by 2012 the India retail market is projected to grow to around $551.4 billion, with organized retail formats (characterized as chain stores and stores that are subject to central ownership or franchisees) at a projected 44 percent Compounded Annual Growth Rate (CAGR) - compared to CAGR of 19.5 percent between 2003 and 2007. As F&S reported shoplifting accounts for over 50 percent of loss in the Indian retail market, which remains the number one source of inventory loss. EAS is designed to help retailers prevent losses due to external theft - India’s most significant challenge impacting retailer profitability and inhibiting future growth as F&S reported.
With rapid industry development, the majority of retailers like Mahaveer need to focus on improving loss prevention solutions that maximize growth and profitability. For Mahaveer open merchandising of wine was a new concept. They required a solution that offered them the freedom to display products openly to customers, standardize product displays and reduce losses while increasing sales. To meet their needs they selected the highly effective Ultra•Post® acousto-magnetic (AM) electronic article surveillance (EAS) detection system and the Ultra•Tag MT in their retail outlets.
After testing Radio Frequency (RF) versus AM technologies in the same retail setting Mahaveer staff found the detection rate of the AM system was greater than 95% while the RF system detection rate was less than satisfactory.
"We found the Sensormatic Ultra•Tag MT to be the ideal tagging solution. Most importantly the detection rate for the Sensormatic EAS system is almost 100%, with the tag detected at exit unlike the RF system which didn’t detect the tag at exit." - Mr. M.M. Anantha Murthy, a Partner of Mahaveer Wines
According to Mr. M.M. Anantha Murthy, a Partner of Mahaveer Wines, "We found the Sensormatic Ultra•Tag MT to be the ideal tagging solution. Most importantly the detection rate for the Sensormatic EAS system is almost 100%, with the tag detected at exit unlike the RF system which didn’t detect the tag at exit."
With easy application to in-store inventory, the multipurpose Sensormatic Ultra•Tag helps store personnel save significant time in protecting stock. Its compact design also has eliminated the need for the chain to realign its shelving - a major disruption that larger tags could otherwise require. The tag’s easy detachment also saves employee time at check-out while helping customers get through check-out faster. These benefits support Mahaveer’s goal of cutting theft, improving customer service and, ultimately, increasing profitability.
For more information on the Sensormatic Ultra•Tag platform visit http://www.sensormatic.com/Products/EAS/HardTags/HardTagsFamily/UltraTag_Platform_Home.aspx.
| Indian Retail Market Overview |
2009 - 2011 are estimates.
F&S sources: CSO, NSSO and Technopak Advisers Pvt. Ltd. |
Organized retail consists of 4% of the total Indian retail
market and is expected to grow to 15% by 2011.
|
|
Mahaveer Wines is a franchise of United Spirits Limited (USL), the INR 5500 core spirits arm of the UB Group. USL is the largest Spirits Company in India and among the top three spirits companies in the world, selling 90 million cases in 2008-2009. Headquartered in Bangalore, USL has a portfolio of more than 140 brands, 19 of which are millionaire brands (selling more than one million cases a year). For more information, visit 
