Comments for The Voice Of Global Retail http://blog.emap.com/retailvoice Sun, 26 May 2013 05:18:36 +0000 http://wordpress.org/?v=2.6.1 Comment on An Olympic appeal by Jewelry news http://blog.emap.com/retailvoice/2012/08/21/an-olympic-appeal/#comment-2257 Jewelry news Fri, 24 Aug 2012 02:23:17 +0000 http://blog.emap.com/retailvoice/?p=589#comment-2257 This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free. This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free.

]]> Comment on An Olympic appeal by Jewelry gift http://blog.emap.com/retailvoice/2012/08/21/an-olympic-appeal/#comment-2254 Jewelry gift Thu, 23 Aug 2012 00:37:35 +0000 http://blog.emap.com/retailvoice/?p=589#comment-2254 Thanks for an honest and truthful post, the like of which is surprisingly rare and all the a lot more beneficial for it. Thanks for an honest and truthful post, the like of which is surprisingly rare and all the a lot more beneficial for it.

]]> Comment on Rising to challenge by Renato Muller http://blog.emap.com/retailvoice/2008/10/06/rising-to-challenge/#comment-4 Renato Muller Thu, 16 Oct 2008 11:25:12 +0000 http://blog.emap.com/retailvoice/?p=11#comment-4 Tough times ahead, this is just the beginning. It seems the economic downfall will be steeper and longer than we all wish it to be, so it's time to face the fact there's a whole new environment coming on. Good for discounters, bad for retailers who have not been able to deliver real value to consumers. At least for the next year, maybe 18 months, consumers will spend less and will be more focused on maximizing their budget. Meaning an acceleration of the US scenario of supercenters, discounters and warehouse clubs going fine while department stores, apparel, restaurants and luxury struggle. In Brazil, to say something about my home market, the first effect is going to be on consumer confidence. It's likely consumers will not rush to stores with the same eagerness we saw in H1, but overall retail figures will be still very positive. In August, sales rose 9.8% year-on-year, already below the two-digit standard of this year, and there shall be some slowdown in Q4, probably making FY sales growth reach the 8%-9% range. Still a very good result. Next year, however, will be another story. Credit crunch will hit hard, consumer confidence will drop and it'll be a difficult period. Time to go back to the basics. To segments as vehicles and DIY, it's going to be a hangover time, as the party will be over for them. Less credit available, lower growth. Consumers will need to readjust their budgets to cope with higher interest rates and less generous credit conditions, so their purchasing behavior is likely to become more value-driven. Tough times ahead, this is just the beginning. It seems the economic downfall will be steeper and longer than we all wish it to be, so it’s time to face the fact there’s a whole new environment coming on. Good for discounters, bad for retailers who have not been able to deliver real value to consumers.
At least for the next year, maybe 18 months, consumers will spend less and will be more focused on maximizing their budget. Meaning an acceleration of the US scenario of supercenters, discounters and warehouse clubs going fine while department stores, apparel, restaurants and luxury struggle.
In Brazil, to say something about my home market, the first effect is going to be on consumer confidence. It’s likely consumers will not rush to stores with the same eagerness we saw in H1, but overall retail figures will be still very positive. In August, sales rose 9.8% year-on-year, already below the two-digit standard of this year, and there shall be some slowdown in Q4, probably making FY sales growth reach the 8%-9% range. Still a very good result.
Next year, however, will be another story. Credit crunch will hit hard, consumer confidence will drop and it’ll be a difficult period. Time to go back to the basics. To segments as vehicles and DIY, it’s going to be a hangover time, as the party will be over for them. Less credit available, lower growth. Consumers will need to readjust their budgets to cope with higher interest rates and less generous credit conditions, so their purchasing behavior is likely to become more value-driven.

]]> Comment on Rising to challenge by Ira Kalish http://blog.emap.com/retailvoice/2008/10/06/rising-to-challenge/#comment-3 Ira Kalish Fri, 10 Oct 2008 08:34:36 +0000 http://blog.emap.com/retailvoice/?p=11#comment-3 I agree that retailers are facing a difficult period. In fact, it could get much worse before it gets better. At this writing, global credit markets have frozen and no action by governments has been effective in restoring the confidence necessary for banks to lend. In this situation, banks may not honor letters of credit from other banks. This means a shutdown in global trade. Small businesses cannot finance inventory. This could mean massive unemployment. This situation will remain until governments take massive action which could even entail bank nationalization. What can retailers expect? Extreme weakness until economic recovery. There will have to be a shakeout of retailers. Traditionally during recessions, weak retailers are often acquired by stonger ones. Yet with credit markets closed, we could see more retailers simply fail and disappear. What will be the characteristics of those that survive and prosper? They will be clearly differentiated from competitors, have a strong value proposition, offer a superior store experience, and have clean balance sheets. Achieving these goals will require an innovative spirit and a willingness to quickly dump formerly successful strategies and assets. I agree that retailers are facing a difficult period. In fact, it could get much worse before it gets better. At this writing, global credit markets have frozen and no action by governments has been effective in restoring the confidence necessary for banks to lend. In this situation, banks may not honor letters of credit from other banks. This means a shutdown in global trade. Small businesses cannot finance inventory. This could mean massive unemployment. This situation will remain until governments take massive action which could even entail bank nationalization.

What can retailers expect? Extreme weakness until economic recovery. There will have to be a shakeout of retailers. Traditionally during recessions, weak retailers are often acquired by stonger ones. Yet with credit markets closed, we could see more retailers simply fail and disappear.

What will be the characteristics of those that survive and prosper? They will be clearly differentiated from competitors, have a strong value proposition, offer a superior store experience, and have clean balance sheets. Achieving these goals will require an innovative spirit and a willingness to quickly dump formerly successful strategies and assets.

]]> Comment on Rising to challenge by Arvind Singhal http://blog.emap.com/retailvoice/2008/10/06/rising-to-challenge/#comment-2 Arvind Singhal Fri, 10 Oct 2008 05:40:19 +0000 http://blog.emap.com/retailvoice/?p=11#comment-2 I could not agree more with the message that "now is not the time to stop innovating, but to refocus on it". These are, indeed, unprecedented times. It is impossible for anyone at this time to be able to forecast when normalcy would return, and when it does, I am sure that "normalcy" would have been redefined. What seems to be clearer is that consumers across the world will have lesser money to spend than what they had 12 months ago. Even those who will have the same quantum are likely to become more cautious about spending it. Hence, retailers across the globe will have to redefine the benchmarks for "value" in their respective markets, and then go back to be basics to innovate both in product and process to be able to deliver enhanced value to their customers. Even in India, where as recently as on 9th October 2008, the Indian finance minister has gone on record to say that the economy is still expected to grow at 8% in the current fiscal, the consumer confidence is severely dented. More innovative marketing, is therefore, need of the hour and more innovation in formats per se the emerging big opportunity. Arvind Singhal I could not agree more with the message that “now is not the time to stop innovating, but to refocus on it”. These are, indeed, unprecedented times. It is impossible for anyone at this time to be able to forecast when normalcy would return, and when it does, I am sure that “normalcy” would have been redefined.

What seems to be clearer is that consumers across the world will have lesser money to spend than what they had 12 months ago. Even those who will have the same quantum are likely to become more cautious about spending it.

Hence, retailers across the globe will have to redefine the benchmarks for “value” in their respective markets, and then go back to be basics to innovate both in product and process to be able to deliver enhanced value to their customers.

Even in India, where as recently as on 9th October 2008, the Indian finance minister has gone on record to say that the economy is still expected to grow at 8% in the current fiscal, the consumer confidence is severely dented. More innovative marketing, is therefore, need of the hour and more innovation in formats per se the emerging big opportunity.

Arvind Singhal

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