B&E: There are many brands, one of which is Woodland, which have never believed in the franchisee model for fear of manipulation by the partner(s). What is your opinion?
NPS: There are risks for sure, but it is about taking that chance. You have to ensure that nobody is involved in malpractices that would disturb your brand image. We at Samsonite took the plunge and it has worked out great for us. It is through this very franchisee route that we plan to open 100 more stores by the end of this fiscal year.
B&E: To neutralise the drop in footfalls and turnover thereof during the slowdown, many retailers resorted to discounts. But Samsonite didn’t. How did you deal with the dry situation?
NPS: Rightly said, we did not promote ourselves through discounts because panic price-cut only kills the brand. We only gave discounts in multi-branded outlets; and in the case of our own stores, we combated the fall in revenues by slashing our operating costs. For instance, while in some stores we reduced the number of personnel by 1/3rd, in others, we simply reworked our logistics.
B&E: Will organised retail in India be able to double its size to account for 10% of the total pie by 2012?
NPS: I can’t give a figure here, but if you look at Samsonite, our organised retail is growing at a CAGR of 30%. And there are other brands which are growing equally fast. Considering that there are a many new brands coming up by 2012, organised retail will definitely become much more structured and bigger.
NPS: There are risks for sure, but it is about taking that chance. You have to ensure that nobody is involved in malpractices that would disturb your brand image. We at Samsonite took the plunge and it has worked out great for us. It is through this very franchisee route that we plan to open 100 more stores by the end of this fiscal year.
B&E: To neutralise the drop in footfalls and turnover thereof during the slowdown, many retailers resorted to discounts. But Samsonite didn’t. How did you deal with the dry situation?
NPS: Rightly said, we did not promote ourselves through discounts because panic price-cut only kills the brand. We only gave discounts in multi-branded outlets; and in the case of our own stores, we combated the fall in revenues by slashing our operating costs. For instance, while in some stores we reduced the number of personnel by 1/3rd, in others, we simply reworked our logistics.
B&E: Will organised retail in India be able to double its size to account for 10% of the total pie by 2012?
NPS: I can’t give a figure here, but if you look at Samsonite, our organised retail is growing at a CAGR of 30%. And there are other brands which are growing equally fast. Considering that there are a many new brands coming up by 2012, organised retail will definitely become much more structured and bigger.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
Labels: BUSINESS AND ECONOMY, IIPM, IIPM Admission Detail, IIPM Best B School, IIPM EDITORIAL, IIPM NEW DELHI, IIPM PUBLICATION, IIPM Think Tank, multi-branded outlets, Woodland
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