At a time when the world is worried about economic slowdown, one sector which is feeling the heat the most is retail industry. The sector, which is believed to possess the potential to single-handedly turn the fortunes of the country, is however so entwined with the world economy that a recession in the other parts of the globe is bound to affect it.
This, and the rising inflationary pressures, has been much highlighted by the media for some time now. How the industry as a whole and the retailers specifically should deal with the problems under current slowdown even when the long term opportunity in this country is robust and competitive. Ireena Vittal partner at McKinsey & Company tells you.
The only way you can make money in India is if you innovate your format and drive consumption, Vittal said before making a presentation named ’10 things retailers should do in next 12 months’ at the recently concluded India Retail Forum 2008.
Giving priority to build sales, she emphasised on identifying and delivering value along with low prices. “These two measures can grow the sales figures by 3-5 per cent in next 6-9 months” said Vittal.
Many would believe that in a country which is better recognised for the huge domestic market, a loss of one or two sales opportunity would hardly matter. If you are on the same line of thought, Vittal has a different way of explaining this. “Never miss a single sale opportunity. A reconsideration of frontline incentives along with ensuring availability of fast moving SKUs can increase sales by 2-6 per cent in next 3-6 months” said Vittal.
— Shailesh Shah