Retail punch !!

Today I came across very interesting fact. Its about how offline retailers reaping benefits from e biz portals. Online retail ventures are offering additional discounts to generate volume.

IT products have very less margins. Retailer (such as Nehru Place retailers) are ordering IT products in big no and availing discounts from online portals and selling on prevailing market price. This way they are earning more margins than normal. 

Interesting !!

Nikhil Kunwar

Roll-up Time for Mom n Pop Stores: Kirana stores facing succession crises.

In India after radical changes in retail still 90% of the pie is unorganised retail. With 10 lakh plus kirana store owners in the country and several of them having succession trouble (running a kirana is not the preferred career option for many in the new generation), it might be the right time for a roll-up operation. A roll-up is the consolidation of several small businesses under one roof, usually through a publicly held holding company.

The roll-up strategy can be very successful if you have capable management driving the ship and an industry where the synergies for consolidation make sense. Roll-ups provide greater efficiencies such as merging back office accounting, marketing and purchasing. The roll-up also provides an exit strategy for mom and pop owners who are seeking to retire in the not too distant future. With most kirana stores occupying / owning prime property, the real estate benefits could be substantial. 

Keeping in mind such scenario I think its the best time for entrepreneurs to identify their own expertise and capability to capture the opportunity to hold such roll up. Integrated Kirana stores will need man-power & Technology. If such consolidation is bound to happen in future due to succession crises, one can start a venture that can outsource manpower & technology to the backend operations etc. Its a big opportunity for upcoming managers & retail industry leaders & its a right time to look into it.

Nikhil Kunwar

Strong economy, good monsoon and festive season, it's Diwali for retailers !!!!

Still 15 days to go for Diwali, and Indian retailers are already witnessing 15-25% hike in their sales. Products such as 3D, LED and 40-inch-plus LCD and Plasma television sets, front-loading washing machines, high capacity frost-free and side-by-side refrigerators, convection microwaves, branded apparel and fashion wear, imported chocolates, dry fruits and wine, digital SLR cameras and smartphones are in high demand across the country. High ticket value products are generating volumes that ultimately resulting to boom this year. Online retailers as well witnessing 10-15% rise in their sales. 

Macro economic factors, Sensex 20K & mounting, good monsoon & festive mood are key drivers for such boom. Events like CWG 2010 keeping our spirits high & positive.

Factors like timely delivery and assurance to quality still threatening. Despite of all odds India INC is  bound to achieve new high in retail. Such scenario will surely put pressure on policy makers to open FDI on multi brand retail in India.

Nikhil Kunwar

Retail Punch

e-tail is really interesting....and each customer is unique......Today gotta a call from customer who asked for assurance from us for timely delivery.........He gave a interesting argument---------Dekho beta if get married n ur wife come to ur home after 1 year, so there is no point of getting married today...... :) :)