Retail Dude

These days came to fill some colors to the black and white balance sheets of american retailers, or we can say black, cyber and mobile days came to save the holiday season in this weak economic period. And as a result retailers not only got huge footfall but also an awesome sale. Some store managers quoted –

“Morning traffic was “awesome”, and “even better than last year.”

“I’m guessing it was about 85 percent credit and 15 percent cash,”

“People are happy, and few — if any — mention the economy.”

 As soon as I heard about these black Friday and cyber Monday, one thing came into my mind and that was Big Bazaar. It’s the only retailer in India who leveraged these similar occasions in India like “Maha Saver theen din” on Dhanterash and something similar even on Independence Day(I am not saying other retailers don’t do these kind of promotion but the kind of advertisement Big bazaar do just overwhelm all others). And because of this it made huge retail sales, regardless of razor thin margins due to offers there was profit, reason was volumes. But there is negative aspect of these days and that is handling tremendous traffic and rush, which Big Bazaar many a times failed to handles and same happen on Black Friday, retailers were unable to handle rush and on Cyber Monday most of the retail websites goes down too often causing inconvenience to customers. But in the last what matters were the sales for retailers and special offers to consumers.

And whats there in this for Indian retailers – a lesson to form a community not a competition and organize these days nationwide and organized retail wide, together they will be better equip to handle rush and to make profits.

- Prateek Katiyar

 Email  Print Make a Comment »

This news did bring a wide smile to my bearded face http://www.indiaretailing.com/news.aspx?topic=1&id=2755

No, it was NOT the comment by Mr. Goenka’s, who generalised “his or his group’s own pov” as that of the Indians’! I am surprised by his “understanding” of the Indian “Consumer-Set” at the same time.

Anyway, what does make me happy is use of the following sentences, by very “qualified” retail managers:

1. it is the bottom of the pyramid where innovation will lead to sustainable consumer markets,

2. An encouraging regulatory environment and more physical investments are required to stimulate development,

3. No such thing as ‘average consumer’ exists in today’s consumer markets. It is very important to understand the diversity in terms of the type of consumers along with connecting to the consumers locally,

4. Customisation according to the local needs of the customer and simultaneously tapping the existing global opportunities is a big challenge facing the Indian retail business today,

5. Several resource constraints will provide the opportunity to rethink existing business and product models. Diversified product range, recreating value chain according to consumer needs & that India needs more innovative models like e- chaupal developed by ITC.

Though I am no visionary, I must blow my dusty, rusty trumpet sometimes!

It was around Jan/Feb’08, when I floated the idea of retail and real-estate entering dead-end-ahead lanes, on my Linkedin page. I also, in the same breath “publicly” offered a “fresh & unique business-model”, which could (and still would) add real-bottomlines to the retail business. If implemented, the model would have added at least 800 Crores to the wise retailer’s kitty, this fiscal. WITHOUT adding almost any cost! The messages should be available even now, in case you’d like to verify claims from a minnow.

Though I took pains to send the proposal to ALL retail big-wigs in India, no one bothered to even reply! As a matter of fact, my good friend Rajeev Karwal, who was tuned-in to this model, went to the extent of suggesting that I go ahead, on my own!

Today, when the big guys are feeling small in front of the mounting debt burdens, skyrocketing interest costs & dwindling productive footfalls, I do feel a perverse sense of vindication. Though it’s not really a sentiment I admire, there’s little I can do to be stoic about it!

Along with the times, the dimes that “can” keep organised retail “rolling”, if not “rocking”, have switched wallets…no, pockets!

Well, loose-change, in India, will always be the ONLY constant!

- Arnab

 Email  Print Make a Comment »

I apologise for a late entrance & a late welcome to Roli.

Getting back to business, that of Retail now…There is general misunderstanding, among most, about Recession & Depression.

Recession is broadly defined as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP growth, real personal income, employment (non-farm payrolls), industrial production, and wholesale-retail sales.”

A sustained recession may become a depression.

Generally, periods labeled “depressions” are marked by a substantial and sustained shortfall of the ability to purchase goods relative to the amount that could be produced using current resources and technology

Therefore, the time is hardly ripe, to judge general consumer spend-trends & specifically that via organised retail.

FMCG consumption via Indian organised retail is just about a “single” digit of the total, naturally. On top of this, we need to understand that juxtpaosition some tactically publiseh trends, though “textually” similar sounding but actually worlds apart, may not be addressing the real problem at all.
For example, Roli mentions “17-18% FMCG growth, followed by “more foreign brands” entering India & so on so forth”.

IF we agree to FMCG’s lion’s share selling through unorganised retail, these observations are very unrelated!
A daily labourer who bought 2 extra packs of Lux, because he could not afford two new sets of clothes, for his teenaged daughters could well be the scenario!

We can safely presume that at least 70% of our population (check if your housemaid knows) are quite unaware of the turn world / Indian economy has taken! And “that” is a BIG number of Indians, consuming a BIG chunk of FMCG! Of course there will be growth here!

In a very disturbing report, recently, we also get to know that many “global” retail biggies are actually conducting “experiments” in partnership with glamorous Indian partners! Needless to say, we Indians ARE the guinea-pigs. The same learning will again to “sold” to us at high prices. Look at the pharma industry, for instance.
As I have posted in various earlier rolls, I request the fresh minds, like yours’ to look “beyond” the made-up retail face. Scratch & peel off the foundation, it’s just a few layer-years deep! The surface below has been shaped & moulded by decades of austerity, food-control & malnutrition. All “actionable” like British rule was, through the fight for independence!

Yes, organising retail, developing supply-chains, eliminating fakes/spurious products - all these have huge potential in India.

The path, however, is nowhere close to the high-speed expressways we’ve been sold on. There are huge undulations on this road which will shake our confidence, miles of dust which may choke our verbose throats, rocky dry riverbeds most likely to challenge the J-Lo ish Michelins & steep climbs on where it will be easy to lose grip - the glitzy CRVs & Beemers will not make it I’m afraid!

But then, that does not mean they’ll run amok in the city streets either!

- Arnab

 Email  Print 3 Dudes Commented »