Saturday, June 28, 2014

The "gross margin negative business model".

The recent article in ET on "How success of e-commerce start-ups are making traditional retailers rethink their model" was interesting reading, however, what was more interesting was the view of Mr. Biyani. On this one (the two points he makes) I agree with him.

The darling of everybody at this point in time is "the great ecom experience", however, the business viability & margins on transactions are the elephants in the room that are getting ignored. The gross margin negative businesses are not sustainable and are completely dependent on the VC funds for survival - a fact validated by a number of business leaders who were unable to raise a 2nd or a 3rd round and ended up shutting the once 'viable ecom' business.

Another article worth reading on the subject is Issues with Inventory models .  

Looking forward to see how the category progresses and the models that will finally sustain.  


Friday, May 23, 2014

Interesting Innovation.


15% of the retail revenues are lost because the consumers can't find the product / brand. Interesting opportunities.

Neighbourhood kirana shop is spiffing things up.

Business Today examines how the traditional trade stores (general trade stores) are managing the challenge posed by the large format modern trade outlets in markets like India. 

The feature examines both the initiatives taken by the owners / retailers themselves and the support that they are getting from multiple organizations like AaramShop not just to stay competitive but to thrive.

Wednesday, April 9, 2014

Prof Rajiv Lal on retailing in India.

Came across Prof. Rajiv Lal's interview in the recent Forbes and this brief interview with Mint. His views echo our business premise and his jargon-less logic is superb especially on food retail.


Thursday, March 27, 2014

Passion is Overrated!!

Interesting perspective :-) and a captivating presentation. Getting hold of the book next.