The Indian Retail Market and the Herd Mentality

Dont loose your sleep dear Retailers there is much to chew than your mouth can hold.
India is too big a rural market for Big Retail brands to conquere .The small time retailers need not worry too much as of now, a person from say "Kecheri" in Thrissur Dist. will not travel all the way to Trichur Town (20 KM away) to get things like 5 kg sugar etc. from the Mall.

And Malls cannot be started in all corners of the village as they lose their strategic advantages of Place,Time,Volume,accessability.

If someone starts a Mall for a village population of 5000 he will be doomed as the logistic cost of sustaining a good mall will surely be higher than the total average expenditure by all the 5000 strong population in a month.

Hence Retailers and small shop owners should take their business to the masses and see that they penerate deep into each village and provide such convenience to the villagers that they dont even think of travelling to the town for purchasing their groceries/electronics/Garments. The Retailers can even start home delivery schemes.

And they should not allow their stronghold on distribution chain to weaken,they can play the role of Franchisees or Sourcing Agents to the Big Retail Giants or they can prevent one such Mall coming to their town through co-operative movement. The small retailers who provide different goods and services should come together and pool capital through co-operative society and start a Mall themselves in the Town or villages , the profit will be distributed to the shareholders and risk of individual businesses get covered as well as they will get a stronger bargaining power to get goods from industries at the same price as Retail Giants, as well as enjoy some concessions enjoyed by the co-operative societies. The moment the Giant sees a competition in an area they will think twice to set up their business there.
A good example I can quote is the state of Malls which were set up in close proximity in an area in western suburbs of Mumbai (Goregaon to Kandivili) these Giant Malls were so near to each other that each started eating into the business of others and the laws of economics were tilted against their favour in such a way that they are forced to continue with very meger profits as an early exit from the market will burn deep holes in their pockets.

Inorder to prevent such situations and to sustain Retail boom in India , the Govenments should bring in some regulation in the approval of Malls in a locality based on the population, expenditure capacity of the population, Proximity to the source / distribution network, need of the region and competition.

On the other hand Governments should be careful in opening up opportunities to the Business Houses in India as many of them (usually small ones) follow the "Herd Mentality" they flock to a business where they see some success stories e.g. Airline industry (today nobody knows where the East-West Airlines have vanished) , Telecom industry many have burnt their fingers by jumping into a market with a saturated bandwidth Spectrum next to face the music is the Retail and Real Estate/Reality industry and slowly but surely the death of many Media Houses and News Channels (the ones which have become more of a Music channel) are in sight. The Government should control this flocking and channelize the resources available with various Business Houses to different Areas of opportunites.
India is a Big Growing Economy and there is enough market space in various segments for one to make a fortune but the million dollar question is are you moving in the right/unique direction ?

- Ajitkumar

I PEEPED THROUGH THE WINDOW

As our Beloved President Dr.APJ Abdul Kalam Stepped Down, I decided to peep into his various moods and Quotes. You too can see the same through my window.

"The revolution in communication technology needs to be harnessed to deliver healthcare services in rural India. The need is to create an Health-care system that is both affordable and effective" - President Dr. A.P.J Abdul Kalam.

A poem by Dr.Kalam

"Dreams float on an impatient wind,

A wind that wants to create a new order,

An order of strength and thundering of fire."

30-12-2005 address to Patna University

I am indeed delighted to participate in the Annual Convocation 2005 of the Patna University. I take this opportunity to congratulate the University students for their academic performance. I greet the Chancellor, Vice Chancellor, professors and staff for their contribution in shaping young minds to work for the nation in multiple fields. I am happy to note that this University has contributed substantially in the development of higher education in Bihar over the last nine decades. I understand Patna University has produced a number of brilliant academicians, technocrats, administrators, doctors, social workers of eminence. The Patna University has the distinction of having its alumni important personalities like Mr. Hasan Imam, Dr. Rajendra Prasad and also the present Chief Minister Shri Nitish Kumar.

I SAW A WINDOW FORCEFULLY SHUT

Today 23rd July 2007 - Our most beloved, most honoured and respected President Dr.APJ Abdul Kalam stepped down as President of India.

He is succeeded by Smt.Prthibha Patil, my best wishes to our new President.

As I look thru my open window I could see how Indian interest was swept under the carpets for mere Political gains.

A man of the Stature of Dr.Kalam could be given the Indian Presidentship umpteenth number of times but for some vested interests who thought otherwise.

A window through which a wind of change was so forcefully flowing , was forced shut.

The winds of science and technology, the winds of ideology, the winds of patriotism, the winds ot the intellect the logic and the philosophy will no longer blow as it did during the reign of Dr.Kalam.

I would like to quote and ardent admirer from a message board ....

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Salute to you....

by Palani Vel on Jul 24, 2007 12:13 AM

Respected our beloved President. We are really happy to see a president like you, who is role model to all the people and not for the politicians. I think, that is why you are away from the prestiges Office. For the past 5 yrs were eagerly seeing to your NEWS in TV's and other NEWS media, that what you have told to day. Though you came to your office in a different circumstances, you were just great in your job, I feel like you were not like a rubber stamp to any people, you just kept what you felt is right for the nation and for the people, you were true to your thoughts and vision and acted the same way, but for sure I can tell you that from 25th of June, it is going to be a rubber stamp office again.All the president to my knowledge were just a high degree post in the country, but you made it as a post of dignified people who has a vision to the nation. But, what to do? it is gone of again.I really respect your decision, it is really true that, if you had opted to stand, some people will gain a lot with that, and others will play political game with it, and they will use you as a political agenda in the upcoming Lok Sabha Election, telling that they have made you as the president and they will ask vote with it. You have shut down all those mouth with just staying away from it and come back to your own professional.IT IS TRUE that YOU ARE THE PEOPLE's PRESIDENTand not the POLITICIANS PRESIDENT.

Awaiting to meet you @ some point, for just seconds.

INDIAN's

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