How Does Category Management Works for Robinsons?
First and foremost, Category management is the process of managing a retail business with the objective of maximizing sales & profits of a category. Robinsons, a departmental store usually manage its merchandise at different category levels.
When it comes to toys, people get softened when they look into those cute cuddly toys or are amazed by how a toy functions, not so much because of its brand.
When Robinsons plans for its toys category, it usually makes decision as a whole for the entire category unlike other categories like bags and cosmetics where certain brands are on their own and have their own set of promotions and advertisements. When they are well categorized, customers are not easily confused and can relate well to the brands or designs they desire. Robinsons can show off their various promotion of different brands or categories, bringing up the potential for higher sales and so on.
Of course toys do have some of their established brands like Matell, Lego, and Hot Wheels etc. However majority of them are not as concerned as compared to buying cosmetics or accessories like bags, shoes etc. According to research, when someone shops for toys generally, they shop for its outer appearance, color combination, functionality, and the gender of the person they are buying for.
So next time you visit a toys section, look closely, they don’t pick up the bear from the shelf because its brand is glaring out of it but rather its physical appearance, quality and tangibility!
(Brands are not visible; focus is more on individual product)
Bed Linen Department
Take the Bed Linen department for example, the department/sales manager will overseas that all the products are broken down accordingly into discrete groups of similar or related products. All towels should place in one provided section, all pillows should be located at another section and the fitted sheets at specific areas. They are of course further divided into different types and quality etc.
This is actually a kind of strategy adopted by Robinsons. Not only are the products well categorized for the customers’ ease of looking, they have a tactic to track the sales and turnover of category such as a certain brand of pillow or a range of towel assortments. 
For instance, the Tempur Pillow which is well known for their quality and the ability to shape well and align against the sleeper’s head and temperature, are tracked to revise its sales target and potential etc. They also have other products of the same tempur material as lumbar back support, seat cushion and creative pillow shapes, etc. This is because they take up a large space in the department. With that, the sales manager will focus the negotiations with the supplier or buyer on the turnover of its total category, not just the sales of the individual products. Suppliers are expected to suggest new product introductions or a new promotional activity if it will have a beneficial effect on the turnover or profit of the total category. This includes the prices, the cost of merchandises, human resources, etc. High sales and profits!! That’s what a departmental retailer would want right? On top of all, loyal customers of that brand can also benefit on that brand category!
Robinsons Category Management @ Raffles City
Directory
Level 1:
Cosmetic Section
Level 2:
Ladies' Section
Level 3:
Men's Section
Toys Section
Children's Clothing Section
Bed Linen Section
Sports Wear Section
Retail Strategies
#1: Promotions & Discounts
#2: Liaise with OCBC Bank
#3: Purchase for Purchase
#5: Roadshow at the Centrepoint Atrium
Hi everyone! now that we have a better understanding of Robinsons’ retail outlet and the merchandises it offers, let’s take a look at 2 challenges that we have found out Robinsons is facing.
First Challenge faced by Robinsons
Rolling out the products that meets customer’s needs and wants in a departmental store is the first thing Robinsons is focusing on. High quality and well-known products of various brands are consistently sought after and replaced to meet the taste of customers’ ever changing desires.
A few examples of the brands are Calvin Klein Home, DORMA, Alessi, Braun Buffel, Kinu, etc…
Moving along, in Robinsons, each department’s manager is always on the lookout for new suppliers and buyers of other possible products to increase their merchandise mix and assortments.
From time to time, the managers will definitely discuss with the promoters and suppliers on ideas to improve the sales or questioning the products’ appeal and potential in order keep up with the competition. Speaking of competition, here is the list of Robinsons’ main competitors:
- Isetan
- Takashimaya
- OG
- Metro
- TANGS
As u can see, these are strong and well-known established competitors, thus, excellent products play a very important role in the retail arena.
Second Challenge faced by Robinsons
Next, the second challenge faced by Robinsons, needless to say, is to acquire the customers. Without customers, there will be no sales to start off which is the equivalent to zero streams of revenue, Robinsons would to have close down then!
In this era of shopping and retailing, customers’ behaviours has evolved and changed. Their standards are higher, their tastes of products are more sensitive, and their purchasing power is also higher. Most importantly, they are the ones who have the power to make the choice no retailers can! That is to choose which departmental store outlet to go to satisfy their urge of shopping!
Hence, with competitors like Takashimaya out there, Robinsons will definitely has to equipped itself with some sort of strategies to grab and retain their share of customers. These strategies can be very vital during certain periods or they will experience extremely lows sales at certain days of the week, especially after promotion periods such as the Card Member Days. This can be said to be their number one priority.
So… the question is how do they do that? Besides, pricing and discounts strategies and quality product offering, what has Robinsons been doing to attract and keep their customer by their side? Let the Retailer-Insights team bring u more information in the posts to come!
A Sneak Preview
One of the X factors that we have noticed that brings each of them out and helping them to survive out there is their private label branding. After some market research and investigation, we have came realized that private labels also known as store branding is quite successful in a departmental store such as Robinsons. Customers can better relate to the specific brands of products they offer and stay loyal. Example of such a successful brand is KINU from the Beds Linen department in Robinsons.
Robinsons,being a huge departmental store which has become successful over the years, carry their own set of brand names, ROBINSONS. Robinsons offers a huge variety of products and services ranging from beauty products, bedding products, fashion wear, house ware, kid’s wear, kitchenware, ladies’ wear, mens’ wear, perfumes to shoes and handbags shopping.
As robinsons offer a wide variety of products, over a few very different categories, it seems that Robinsons uses a scrambled merchandising strategy. The answer is no.
There's a stigma where scrambled merchandising do not potray a clear brand image and positioning. Throughout the years, Robinsons has successfully position themselves. So the question is how?
On a closer look, the variety and assorments reveals the target market of Robinsons. I would say that the whole idea of Robinsons retailing, judging from its variety and assorments, is to create a concept of lifestyle. This concept of lifestyle defines a typical Singaporean lifestyle.
From what singaporeans view as an importance in their lifestyle, robinsons found the very needs and wants of Singaporeans. After understanding these needs and wants, Robinsons came out with a few sections of retailing,that fufil these needs and wants, thus creating an attractive concept of lifestyle. This is part of a very important reason why Robinsons has become successful.
Now, think of Robinsons. The things that appear in your mind. Isnt it a lifestyle?
