Does improved sentiments means higher consumer spending during this festival season??

[Kalpana Heliya]

The period July 2008 to June 2009 ws marked by increased downsizing in the retail industry. Some sealed down, while rest terminated expansion plans, Subhiksha shut down shops altogether.


However the tide seems to be turning now, reflective from the first and second quarter sales results of 2009.


So does this means the worst phase for the Retail is over???


The Big Bazaars, on an average made sales of approx.10plus crores per day. Consumer Spending was up by 75% in the past four years alone.



Will the festive season be a perfect opportunity for the Indian Retail Industry to get back on the fast track?


As per me..despite the improved sentiments...consumers are still reluctant to splurge...a general observation..

The second quarter of Consumer durables and Electronics giants like LG, Samsung, automobile like Hero Honda and retail players Future Group, RPL and Shoppers Stop are said to have recorded profits...according to the A T Kearney report consumer confidence has not picked up since the time it droped in June 2008. Consumer is keen to invest money then increase his spending budgets...


But definately the festive season around could revert the conditions..

Your views..

 

[Helper@Helpwanted]

There are many factors, which leads to person mindset for investing in futures or investing on self, family.
Yesterday there was news on some channels on how fruits prices and other commodities prices have increased. Daily we are hearing news of government raiding big godowns of private distributors, which are illegally stocking Sugar. Few days back I went to big bazaar and was surprised to see Sugar not in stock. For eg: People make sweets at home or buy from the shop. If Sugar and milk products are costly then prices tend to increase resulting in 2 options for buyer. Either buy more or less quantity.
I think below points are important for organizations in difficult phases:
1) Innovation: Innovate new ideas. Lookout for new ideas, which will tend consumers to take on the offer rather than wait for further period. Innovation can not depend only through R&D, it can come from partners, consumers, distributors etc. Companies should think of ways to innovate not only there products, but also the structure, processes, business model.
2) Challenges: There are many companies looking for increase in % sales. Tough competition ahead. Each customer is treated as brand ambassadors. Loyalty plays important role.
3) Failures: Accept failures. You need to pursue failure if you want to innovate and consequently to succeed. We can learn from the failures and same will spark new ideas.
4) Analysis: May be SWOT analysis. Organizations think market and technological changes as threats, and take defensive posture to protect there segments. But, it may happen that the same segment will not exist in future.
5) Execution: Good ideas should be executed and not kept only under books.

Finally human’s demands are unlimited, but resources are scarce. If companies can sell there products according to the market conditions, consumer wants, then I see no reasons for any lockouts.