Thursday, March 7, 2019

Innovative Steps Toward Gender Equality


How corporate programs and policies are overcoming India’s entrenched cultural obstacles

This article was first published in GARP Risk Intelligence on March 6, 2019; Co-author: Nitya Bodavala

Research has shown that women make or influence 80% of consumption decisions and account for (U.S.) $20 trillion of consumption expenditure. It would make sense for companies to get this fairly large demographic on their side.
Unfortunately, in India, the participation of women in the workforce has been declining due to a deep-rooted patriarchal mindset and culture that results in large gender-based disparities at all levels; pay, availability of opportunities, and household chores being just a few. 
However, there are a few companies in India that are rising above the mindset and adopting innovative ways to make the workplace more inclusive. We discuss a few such initiatives in this article.
Leadership Programs
There is a tendency for women with high potential to stray from the leadership track mid-career. There could be a multitude of reasons, but companies should be able to recognize this and do what they can to retain these talented women. A leadership program that aids female employees in developing competencies that ready them for leadership roles is one way to go about it.
Leadership programs tend to provide networking opportunities, classroom learning, mentors and coaches for personal development and guidance, etc. This kind of personalized attention, and the knowledge that the company they are working for is rooting for their success, acts as a huge motivating factor.
In 2016, the Mahindra Group launched its Women Leaders Programme (WLP). It aims to bridge the gender gap and help female employees in middle management. It spans 18 months and “aims to create a pipeline of female leaders and change agents for the Mahindra Group.
 So far, 54 women managers have been trained through the WLP. Tech Mahindra's efforts to be more gender inclusive have been recognized by the 2018 AVTAR and Working Mother Best Companies for Women in India.
While Mahindra's WLP targets women in middle management roles, Bank of America targets those at the vice president level. Of the bank's management and executive positions, 46% are held by women. 

Its “Pathway to Progression” aims to increase retention and engagement and accelerate the women's advancement. In 2016 and 2017, 172 women participated, of whom one-third have been promoted.
The bank also has two female-specific insight programs, “Female Futures” and “Females in Finance.”
All-Women Teams
At first glance, an all-women team seems regressive. However, it makes it easier for companies to streamline a process that has the best outcome for women. It also makes it easier to monitor their progress and development.
Dr. Reddy's Laboratories, while taking stock of the ratio of men and women in each division, found a lack of women in the sales and marketing divisions. In 2016, they started SHE, or Special Hospital Executive, a sales force that consists mainly of women looking to re-start their careers. 
The company altered the work requirement of a regular medical representative to better suit these women. As opposed to having to visit 10-12 doctors a day at various medical institutes, these women form a lasting relationship with one institute. This also implies shorter working hours and less travel.
The initiative has been beneficial in that the company now has a presence in 25 medical institutes that were previously unexplored. The sales force also allows for penetration into those medical colleges that are girls-only. While there are currently 100 SHEs spread across three divisions, the company is hoping to increase these numbers.
Bajaj Allianz General Insurance has introduced all-women branches in 19 cities across India. They also recognize the difficulties associated with women trying to re-enter the workforce after a break and are seeking to make it as easy as possible. Women can bring their kids to work, have laundry and groceries delivered to the workplace, have flexible hours and the option to work from home.
Women in Manufacturing
The paucity of women in manufacturing is old news. The steps that some companies are taking to remedy this, however, are new and innovative.
Bajaj Auto has set up women-only assembly lines at its Pantnagar and Chakan plants. The number of women working on the shop floor has increased from 148 in 2013-14 to 355 in 2017-18.
At Dr. Reddy's, new roles in warehousing, research and development and process engineering that were previously unavailable to women, were made available to them in 2016. In addition, women were hired at all levels – entry, middle, and senior – and their families were invited for plant visits to inspire confidence about the safety of working there. 

The company found that the number of women in these roles grew, and there were fewer resignations post-maternity. Dr. Reddy's was the only Indian company to feature in Bloomberg's Gender Equality Index for 2018 and topped the list of 200 companies that were a part of the “Diversity in Corporate Asia” report by Carnstone.
Aside from WLP, the Mahindra Group also aims to break down barriers in the engineering, procurement and construction (EPC) field through Project SuryaShakthi. As part of this corporate social responsibility project, women are trained to be solar technicians who can then install solar panels.

They undergo three months of training, in the classroom and on-site, which includes financial and computer literacy, self-defense classes, and entrepreneurship skills. The growth in the solar industry, coupled with the concept of all-women installation teams, will undoubtedly contribute to change in how working women are perceived.
Knowing Your Employees
There can be no blanket policy that works for all companies and all employees; policies have to be tailor-made. To attempt to understand an employee's needs, companies could carry out studies and surveys that will help them with policy-making and ultimately yield satisfied and productive workers.
Every year, Accenture produces a “Getting to Equal” report. The 2018 report surveyed 22,000 working professionals in 32 countries in an attempt to identify factors that could affect the culture of a workplace, and further affect gender balance. The report focused on 40 factors that, if put into common practice, would increase the average number of female managers for every 100 male managers from 34 to 84. There could also be an increase in women's pay by 51%. Some of these factors are:
- The organization clearly states gender pay-gap goals and ambitions
- Leadership is held accountable for improving gender diversity
- The company has a women's network, which is open to men
- Women are encouraged to take maternity leave
- Leaders take action to get more women into senior roles
Embracing Motherhood
Forty-three percent of mothers choose to leave their jobs after having a child. Rather than look at motherhood as an inconvenience, companies should attempt to embrace motherhood and provide a supportive environment for their employees. 

They might also want to consider the cost involved with on-boarding and training new employees, versus spending a little more to keep the ones that they have happy.
Nestlé India offers 26 weeks of maternity leave with full benefits and leaves it to the discretion of the employee as to when she'd like to avail it. Upon returning, she is assured the same position or one of equal standing. All permanent female employees are allowed six weeks of adoption leave.
The company also allows for mothers to breastfeed at work. All facilities that have upward of 50 women are equipped with separate rooms for breastfeeding in private. The “Start Healthy Stay Healthy” campaign provides guidance to new and expectant mothers.
Incentivizing Inclusion
As of 2015, 79% of Pinterest's workforce was male, the majority white or Asian. The company had found that referrals were the best way to get to new talent, but employees had a tendency to refer candidates whom they identified with, that is, people similar to them. 

Pinterest challenged its employees to refer people from diverse, under-represented backgrounds. This was good news for women – female referrals increased 24% – as well as those from minority communities.
In 2017 the company's tech division was 29% women, the business division 62%, and in the workforce overall, women were 45%. For every open leadership position, the company has mandated that at least one woman be interviewed. Unconscious-bias training is a priority for employees and managers alike.
Conclusion
Accounting for and implementing policies that maximize the productivity of women at the workplace is not an impossible task, nor is it one that eats away at profits. McKinsey and Co.'s recent study on business and diversity found that companies in the top quartile for gender equality were 21% more likely to attain above-average profitability.

For a company, the difference between above-average profit and average profit can be quite large, and the cost of inclusive policies fairly small.

How Velvetcase is Mining India’s Passion for Gold


This interview was published in Management Briefs, Case Spotlight section, ISBInsight, on December 24, 2018

Velvetcase, a made-to-order jewellery company in Mumbai, is disrupting the manner in which India satisfies its voracious appetite for gold. ISBInsight talked to Dr Nupur Pavan Bang about the managerial takeaways and her experience in co-authoring the case with Professor Kurian Vikram.

ISBInsight: What was unique about VelvetCase, a made-to-order fine jewellery company, that got you interested in writing a case on them?

Dr Nupur Pavan Bang: Traditionally, people go to the jewellery store or the local jeweller with whom they are comfortable. They look at the pieces that are available in the store and buy the product. On the other hand, VelvetCase decided to make customised designs for people within their budget. They allowed customers to design the jewellery themselves.

Second, the value of the jewellery is so high, people would not traditionally buy jewellery online. But VelvetCase tried to change that mindset. Finally, in 2013, the Indian Government had raised the import duty on gold from 4% to 10% during the year. Gold prices were very high, contributing to India’s high current account deficit (CAD). VelvetCase promoter Mr. Kapil Hetamsaria had a good proposition where popularising low karat gold would help bring down the CAD to some extent while also catering to the Indian market’s love for jewellery.

velvet case,case interview

VelvetCase, given that their offering was different from traditional jewellery stores, had their task cut out to change consumer mindset about purchasing low karat gold. Could you share some details about their business model?

In jewellery stores, the business model is generally “product forward,” enabling the customers to choose from the pieces already at the store. But in VelvetCase, it is a consumer backed business model. 

VelvetCase wanted customers to wear jewellery that will suit their personal style. VelvetCase also had the first mover advantage in the online jewellery website sector. In India, the closest competitor was Caratlane, a Tanishq partner. But the other online portals did not offer much customisation.

VelvetCase went a step further and had a team speak to the customer to understand the purpose of jewellery purchase. For example, a customer wanted to buy a solitaire but was sceptical about the resale value.

The VelvetCase team advised her to not make the purchase only for resale as a solitaire’s value is derived from wearing it for daily use and not for re-sale purposes. VelvetCase worked closely with the customer to understand the purchase objective.

Customers could not physically try on the inventory in an online store. Therefore, VelvetCase first built mechanisms to evoke strong trust from the customers, such as 100% certified products from internationally reputed third-party labs and a 30-day return policy. Due to this, they not only increased their customer base but also had a 40% return customer base.

They created an augmented reality feature so that buyers could try on high value products. For example, to buy a ring, you could take a picture of your hand and upload it on the online platform, the ring would then come up on the finger with the help of augmented reality.
The use of cutting-edge technology and high imaging made this possible. A product video on the website demonstrated how a customised completed design would look on the customer. And there was great breath of product design, with over 200 designers working with VelvetCase.

A final factor was VelvetCase’s global reach, with English and Hindi interaction options and prices listed in Indian rupee and US dollars. To date, they offer services in US, UK, Singapore and India.

What are the unique features of the demand for gold in India that make it the largest consumer of gold in the world?

In India, gold as an asset class ranks much lower in the reasons why people buy gold. One main reason why people buy gold is for weddings or for religious purposes. Gold is considered an auspicious metal and a symbol of religious purity. In Hindu tradition, it is recommended to wear gold on certain occasions such as Dhanteras. Even if the price of gold goes up, people do not compromise on buying gold jewellery on these festivals.

Second, Indian marriages are great demand drivers for gold jewellery. From as early as the birth of a child, parents start collecting jewellery for the eventual marriage of the child. If it’s a boy, then it will be for the would-be daughter-in-law. Parents hold jewellery as a form of economic security they are giving to the child. It is considered as a last resort in terms of personal financial crisis. Also, it reflects economic status.

gold consumer,finance

What inferences arose from the case with regards to gold as an asset?

Gold is an asset class because it is a global currency. You can buy and sell gold in any part of the world without losing its value. Historically, gold has given good returns to the investors. It is also seen as a good hedge against inflation.

In India, almost 70% of the gold demand is in the rural markets. In these markets, it is very important to have an asset that can be easily sold or mortgaged to take care of urgent needs such as healthcare or buying irrigation equipment. 

In such cases, gold acts as an easily convertible asset into cash. You can find a pawnbroker in any corner of the country, even the remotest of regions. This option gives people an ability to finance their needs in an emergency.

However, VelvetCase is still struggling with the rural market. There are a few challenges here. One, availability of technology: almost everyone in India has a mobile phone, but they may not have access to a smart phone or high-speed Internet which will help them to use the features like augmented reality. Second, the mindset: it is easier to convince an urban buyer to go online and buy jewellery of high-value.

But it is very difficult to convince a rural buyer, who may not even shop on Amazon or Flipkart, to buy a piece of jewellery online. The touch and feel mindset may still exist. Third, the supply chain: while the delivery logistics might be well-developed in the urban areas and Tier 2 or Tier 3 cities, they may not be well developed in remote places. Given that these are very high value transactions, the products cannot be sent by any courier.

One conclusion arising from class discussions was that VelvetCase should tap into the rural market in the future to increase their revenues, as they want to reach their target of USD 100 million (approximately INR 7 billion) in the next couple of years.

Could you discuss this case’s relevance for business practitioners, whether from an online retail, investment or consumer psychology perspective?

There is a huge consumer mindset change already being witnessed. Previously, people would not even buy vegetables without feeling them. Today, they are willing to buy vegetables online apart from books, clothes and electronics. It is just a matter of time before more people start to believe in buying jewellery online too.

VelvetCase offers a reasonable price comparison to brick-and-mortar stores as they do not carry any inventory. They customise jewellery based on orders and import gold, gems and other jewellery components accordingly. They do not have the expenses of a brick-and-mortar store. Hence, they can sell jewellery at a more reasonable price.

Plus, they take care of the trust factor through certification, a lifelong exchange policy and 30-day return policy with no questions asked. With these features, it is just a matter of time before people start exploring and buying higher priced jewellery more frequently on the online marketplace. So, this is a trend worth noting. 

Especially if you look at the segment of working women between the age group of 23-45, they may not have time to go to different stores and try out pieces. They might prefer going online to a portal like a VelvetCase where the piece comes home, and they can return it if they don’t like it.

What were the unexpected takeaways in classroom discussions of this case study?

One common question was about funding. Kapil Hetamsaria is an entrepreneur and the idea that he had in 2012 was very new. The students wanted to know how he funded the startup. Initially Kapil Hetamsaria and Runit Shah, the co-founders, started with their own savings. They were able to get some funding subsequently. They raised about USD 1.1 million (approximately INR 70 million) in November 2014 and later in the second round of funding they got USD 1.5 million (approximately INR 105 million).

Students were also interested to know about high-ticket jewellery sales. It is one thing to buy jewellery worth INR 10,000 or INR 8,000 online. However, it is unheard of that customers would shop for their entire wedding jewellery online. VelvetCase actually made a record of sorts when they received and delivered a single order of ₹1.42 billion. The students found that quite unbelievable.

With innovation and persistence comes recognition. Due to the innovative business model and a laser focused approach towards customer satisfaction, VelvetCase is building a profitable, scalable and capital efficient business for the long term.

The company has been awarded as the “best ecommerce company in jewellery” three years in a row by India’s largest trade body – the Gems & Jewellery Export Promotion Council, Government of India (GJEPC). The large, fragmented jewellery industry is ripe for change with entrepreneurs like Kapil Hetamsaria leading the charge driven by technology.

About the Writer: 
Nikhila Chigurupati is a Content Associate at the Centre for Learning and Management Practice at ISB.

About the Case:  
Bang, N.P., Singh, P., Kuriyan, V, 2014. India’s Passion for Gold: VelvetCase. Indian School of Business case. Harvard Business Publishing. Available at: https://www.isb.edu/research/cases/indias-passion-gold-velvetcase