Retail News Newsletter Columns Retail Jobs Dictionary Directory Calendar Policies Retail Edge Footprint

Home PageContact Us

Simran Says: Low hanging fruit - having the right stock at the right place ...
Posted On: 29-07-2014 22:35:22 PM

Some years ago I had attended an "Investee Companies" meet organised by L-Capital (the Private equity arm of LVMH). The meet was attended by a senior representative of L- Capital who addressed the audience and said that for Indian companies the low hanging fruit lay in supply chain and merchandising. I was reminded of this when speaking to an ex-colleague a few days ago as he shared the opportunity losses that even the best brands in the country have to contend with on account of poor merchandising practices. He gave me the example of one of their stores in Ludhiana which had reported that its sale of formal shirts was low, while the response on casual shirts was good. On a visit to the store, he realised that the store was stocked to the hilt with slim fit shirts. Given that Punjab is the land of big men, the product and size mix was all wrong. In the process the store had virtually lost its older/ larger customer.The problem with poor merchandising is not only opportunity loss, but also higher markdowns at the end of the season.

In the first part of the retail boom the emphasis was on rapid expansion. Now as the industry struggles to build efficiency it finds itself handicapped with a lack of experienced managers and suitable training. As a result critical functions like deciding how much to buy and where to distribute it is being handled by relatively ill-equipped teams. Brands / retailers in India would be well advised to turn the spot light on this aspect of business. The result will be a definite spike in sales (and profits) at relatively low costs.

 
 
 

SocialTwist Tell-a-Friend

 

Want more stories delivered to your inbox?
Please sign up here for our free newsletter.

 
retail india Related News retail industry india
retail news videos on retail industries
Government considers proposal to free up retail FDI policy - but only for India-made goods
Saks Fifth Avenue planning India stores, in talks with Aditya Birla Fashion
Jabong appoints Rahul Taneja as Chief Business Officer
Max Fashion to invest Rs 100 crore to open 50 stores this year
Snapdeal ties up with UrbanClap to offer personal services on its Android app
retail stores
retail policies
retail suppliers retail classes retail news
retail policies retail news retail india
retail training Current Newsletter retail industry
retail suppliers retail industry growth retail slowdown
retail policies retail news retail india
retail training (FY 2015 - 16) 3rd Quarter Results retail industry
retail suppliers retail industry growth retail slowdown
retail policies retail news retail india
retail training Search News retail industry
retail suppliers retail industry growth retail slowdown
latest retail news in your mail

retail industry



 
retail news
About Retail Angle   |  The Team  |  User Agreement   |  Privacy Policy  |  Advertise with Us  |  Feedback  |  Site Map  |  Contact us 
retail industry

indian retail