Wednesday, May 6, 2009

“I had to pick myself up and get on with it, do it all over again, only even better this time...”

ZEE BUSINESS BEST B SCHOOL SURVEY

As per the report on consumer spending titled ‘The Consensus World Outlook 2009’, real private consumption annual growth in India, after having fallen by 2.5% in 2008, is further forecasted to fall by another 0.4% in 2009! Mirroring past continuous falls, monthly consumer confidence in India also fell yoy by 22.4% in February 2009. But perhaps the most critical component in the Shoppers Stop saga is an innocuous issue pitting inhouse brands against external brands. While WalMart’s biggest success on managing cash flows comes from hosting a majority of inhouse brands, Shoppers Stop has 80% external brands. Today, Pantaloon’s and Westside’s growth and steady profits rotate around private labels, as 75% and 90% of their merchandise respectively is through in-house brands.

All in all, the fact is that Shoppers Stop does form an unmistakable historical pillar of India’s retail industry. The question is only about ‘how soon’, rather than ‘if’ Shoppers Stop can do it! Sam Walton, after suffering his first major business hit, wrote, “I had to pick myself up and get on with it, do it all over again, only even better this time...” Dear Nagesh, there’s your answer. Just do it better this time (and yes, throw me a call during the next discount campaign; I missed out this time).


For more articles, Click on IIPM Article.
Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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