Thought for the day
”In the name of God, stop a moment, cease your work, look around
you."
-
Leo Tolstoy (Russian, 1828-1910)
Word for the day
Xyst (n)
A garden walk planted with trees.
(Source:
Dictionary.com)
Teaser for the day
This question is for all those who
talk passionately about nationalism, honesty and governance.
Name the seven sister states of
north east, and their respective chief ministers?
Do you know who is Manik Sarkar?
An act of desperation
Despite deep invasion of technology in my normal life, I have still
kept the monkey in me alive. I like to do many things in the traditional way.
Reading morning newspaper is one of these things. I like to break my fast every
morning while reading the latest news from around the country and familiarizing
myself with divergent views of various experts. Not to say, I like the aroma of
newsprint as much as I like my Darjeeling tea.
However, it had been quite irksome since the traditional Indian
festival season started two weeks back. The front page of the newspaper is now
placed at 5th or 7th page. First 4-6 pages are cramped with ugly, but I must
say alluring, promotion campaigns of retailers and real estate developers.
The sheer intensity of the promotion campaign provoked the
little cynic within me. It took me to all major wholesale and retail markets
and malls of Delhi in past three days. I thoroughly enjoyed my stroll in the
narrow lanes of Sadar Bazar, Chandni Chowk, and adjoining wholesale markets.
But most of the wholesalers did not share my joy. In particular
I spend some time with my old friends who sell garments, dry fruits,
decorations and lights, toys, sanitaryware, and packing material. I also spent
some time at couple of high fashion stores at an upscale mall in South Delhi.
I would like to share the following key points of the feedback I
received and things I observed with my readers.
(a) The sales volumes
are definitely and substantially lower than past two years. It is not the
effect of online shopping. The wholesalers I met cater mostly to rural markets
in north and central India. Poor monsoon has impacted the purchasing power in
these areas.
(b) The packing
material guy tells me that the volumes are almost 10% lower this year despite
lower prices. In his experience this should translate into 15% lower consumption
demand.
(c) Almost everyone
complained about liquidity squeeze and bad debts.
(d) Electrical
hardware and sanitaryware demand from retail segment is similar to last year
(that was not great in itself). However, demand from realty sector is materially
lower.
(e) The festival
related demand of decorations, lighting, toys, gifts etc. is 30% lower as
compared to past two years.
(f) The Independence
Day Sale is still continuing in many malls. Many retailers have re-negotiated
their rentals lower, but the electricity and maintenance cost is still high
rendering the business mostly unprofitable.
(g) Sweets volumes
are down 10-15%. Only a part of this could be attributed to the shift towards
confectionary items like chocolates etc.
(h) The average
ticket size at jewelery shops is almost 25% lower this year.
(i) The traffic on
Delhi roads is thinner and faster as compared to last year.
In light of this I find it hard to swallow the comments of few
large retailer in newspaper, suggesting that the sales this Diwali are much
better. Moreover, I see the large full page advertisements as an act
desperation, the cost of which shall reflect in 3QFY15 numbers.
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