House of Spirits raises the spirits

The evolution in the liquor retail scenario in India is amply reflected through House of Spirits, a sleek and stylish liquor outlet located in Kondapur, Hyderabad. The vast array of spirits at the store can also kindle the spirits of many a spirits connoisseur.

To grow in the alcobev retail market, retailers now need to make their store visually attractive from the inside and welcoming from the outside, more than ever before. “Appropriate lighting, well painted walls, neatly stacked racks, attractive decor, friendly yet unobtrusive sales people, soothing or peppy music are a few things that today’s store owner in liquor retail can look into in the hope of increasing footfalls,” elaborates R. Narasimha Goud, Managing Director, House of Spirits, Hyderabad.

Regarding the appropriate location for a liquor store, R. Narasimha Goud views that depending upon the retailer’s requirements, he/she can have a store at high-street or at a mall. “Having a store at a good location where footfall can flow into the store can improve sales. Also the liquor retailer needs to ensure that the surroundings of the store area are welcoming,” he adds further.

Flying off the Shelves

House of Spirits houses an impressive array of brands, accommodating a wide price range. Some of the whisky brands in high demand at the outlet include names like Ballantine’s, Blenders Pride, Black & White, Black Dog, Chivas, Johnnie Walker, Jack Daniel’s, Jameson, Teacher’s, Oaksmith, Vat 69 among many others.

Among the wines on offer at House of Spirits, according to the MD, Jacob’s Creek, Nashik Port wine, Pink Twinkles, Rasa wines and Sula wines have great popularity. Kingfisher, Budweiser, Corona, Heineiken, BlockBuster and Bira are the beers which attract good demand at the outlet. The consumers’ preference/s at their outlet varies according to weather conditions. “Beers move fast in the summers, rums will run from the shelves fast in winter. Whiskey & brandy will sell more in rainy season though in this state many of the liquor customers take whiskey on regular basis,” explains the MD.

While conceding that Telangana has been witnessing huge amounts of liquor being smuggled from neighbouring states, he acknowledges that price and promotions influence consumer purchasing decision in liquor retail outlets.

Customer Service

With evolution in the ambience and decor in liquor retail in India’s alcobev business, customer service is also gaining prominence. “Customer service is one of the most important elements of a successful alcohol business. As customer needs and expectations evolve, it is crucial that liquor stores are able to anticipate customer demand and deliver high levels of service and satisfaction,” R. Narasimha Goud observes.

He views that improving customer service in liquor stores is all about understanding each customer’s needs and going above and beyond the call of duty to meet them. “Regularly engaging customers in open dialogue about their experiences can identify areas for improvement and inform strategies for success. Setting service standards is an important element of customer service. It establishes baseline criteria for what customers should expect from the organisation or team in terms of quality, communication style, response time, and more,” the savvy businessman avers.

Taking that extra step to make customers feel appreciated creates loyalty, which can then lead to repeat purchases down the line. Investing in good customer service training is one of the many ways to improve the quality of service that customers are provided. “Not only does this allow employees to demonstrate their understanding of products and services, but it also instills a sense of loyalty between customers and the company,” points out R. Narasimha Goud.

While talking at length about customer service of which the entrepreneur seems to be much passionate about, he discusses the facilities being provided to their women customers. Presently, 30 percent of their customers are women. Their outlet has separate counter for women customers at billing point. “We also give them best buying suggestions and special and attractive offer for them to buy more alcoholic beverages, as per their requirement,” informs R Narasimha Goud.

Payment, Excise and Impulsive Buying

As expected, House of Spirits has UPI and card payment facility but the state of Telangana bans to carry out home delivery of alcobev products.

While talking on the impact of the state’s new excise policy on liquor retail, he says, “The timings, which are implemented by the state government, are facilitating good business.” However, in the same breath he laments on the fact that while the industry is witnessing growth in volumes and the Telangana state an increase in excise collections, alcobev manufacturers and suppliers operating in the state are being severely impacted due to steep inflation in input material costs.

Regarding impulsive buying, he says that when it comes to buying alcohol in Telangana, impulsive purchasing has increased by 5 percent since the pre- Covid days. “Telangana is a progressive state and leads the premiumisation trend with a 52 percent combined share of IMFL (Indian made foreign liquor) and BIO (bottled in origin) products,” he proffers.