Retail Business Models- American - British

As a child when i started reading about the British " The sun never set on the British Empire" expanding their empire where the sun never set.I felt myself that how great they are in expanding and developing their empire. In my retail market research the history books in my childhood helped me a lot. The way the bristish came not only to India but many other nations i.e common world countries where they first started their business as brand East India co., then divided and ruled the entire world. Hence I thought the best way to develop business in retail is first to do brand building expanding the busienss by appointment of franchisee or DSA's where the cost of capturing the market is very low and expanding easy. The classic examples of this model business in Independent India is by ITC where 70% of their Cigar sales is done by stick by stick through the PAN walas and the Buddy walas on the street and expanding their brand of cigars through out the country. The same strategy was impelemented by ICICI Bank in early 2000 to expand their retail business and reach the mass through their DSA's and Agents, but after some time when they got their establishments and customers in place they forgot their DSA's and Agents and made business built on their own.

I agree this is true business model for the Indian public to expand the business but the retail revolution that came in 2005 where the Indain business man started the American model of retail malls where huge capital is required and huge man power is used to expand the business.This model had got huge risk's and also required a lot of maturited customers, which is only suitable for urban India but not the rural India, further the mind set of the indian is different from that of the western where people will calicullate minute things before buying any goods and services. Out of 70% people visting the malls will end up buying the item in shop next to their house or in the wholesale market near their place, this is Indian mentality to change this mentality it requires the activity mangement which i disscussed in my earlier article where sentement plays a major role in Indian sales. So Indian people belive in the personal touch rather than the publicity or big malls.

Hence forth I belive that the British and American model of retail sales the success rate is more to the British model in India as it proved in Indian market. But the American model is a testing model in India where the sucess only comes when the sales is planned on the minds of Indian's rather building big malls and colour full environment.

Retail Business - Activity

Retail Business model ,probably came from our civilisation, it is not a model that is developed by any single individual or any business group. It may be started with human religion itself. When man started choosing GOD to over come his difficulties, alone he cannt choose his own model or idol as god, so some intillegent man who convenced and sold his idea of god to others brought the model of religion, further it tried to attract the people around him, started selling his religion, in this process the retail model of doing business came in to existance.

So if you see any religion it got its own activity for the people of the religion to keep faith in it. For example Cristmas, people celbrate allmost one month visiting churchs and praying God, with various colour full activities going around the church like santa, the crismas tree etc.. all this is the activity around the church to make the Cristians happy and keep faith in their God.
Further they also conduct regualar prayers throught out the year on every sunday's to make the regular happenings in the church, to make the people attract and intact with the church.

llly Hindu's where they have specialisation in God and complex religional process to attract people according to thier needs , tastes and fashion. In this process the activty plays an important role making people belive in their relion. For example take the highest temple of worship " Tirupathi" the activity starts from morning 3'0 clock and every hour there is a special puja and activity to make people attract and intact and feel the religion and God.

So religion is the first retail market where one should understand the value of activity where the mass is attracted. So the sucess story of retail starts with " Activity Management" , the more the activity the more the business.

In this course if you see any retail mall from Pasay city in Philippines to Losvegas the shopping malls across the world either in europe or austrlia every mall had got its own theme of activity in attracting people towards their mall. The malls either got theatre's, swimming pool's,ice skating
man made beach's to attract the people to their mall's.

So activity is the important part of retail business model, the success of BIG Barzar or the Spencers Mall's are because of bright and colourfull activity around the mall's attracting people with various discounts and gifts.I cant say the failure but reliance retail is far behind this acitivity mangement in their reliance fresh or any other reliance retail which made them a bit back ward in attracting masses. Still the reliance mall at Tirupathi the religious happening place is a nice idea of attracting the public.

Hence the sucess of retail malls in India should choose a theme or should develop a low cost activity management like attracting school children in their vincity which make their parents also come to malls etc., to improve thier mall publicity and attract the masses.

A Review of the great financial tsunami ' 2008

After 80 years of the great financial sunami in 1929 ,Mumbai, Dubai and Shangai people said bye bye to equity markets. the history repeated with the greed for wealth, man forgot the basic's of accounts i.e assets = liabilities when he thought he will be rich if he got more credit from financial institutes forgetting his assets and ability to pay the liabilities,creating complex derivatives man has dig his own fianancial dig.

Still man is forgetting to give importance to the history, what happened after 1929 - the world war is the immediate historical event which was maily due the exploitation of middle class by the Nagis taking advantage of the 1929 financial crises which created huge gap between the rich and the poor. This is just an example of the magnitude of crises in the past. One can give numerous such historical events, where we are not there but only records of history. But after the dot com buble we have seen the WTC tragedy which all of us had overcame very recently. So History all ways gives ways to us to understand the future. The governments across the globe are addressing the current financial crises but how far they are vigilent about the future consequences, on the socio economic conditions of the suffering of the people due to this financial sunami of 2008 and the people who are going to exploite these people(Bin laden ,x,y,z............) . The people who suffered during the 1929 crises are the industrial labour of the west hence we have seen the second world war. But in the current senario the most affected people are from BFSI and the technology people with high end tools of technology with them. So the next event is very dangerous to the man kind, it may be the financial tragedy or the Inter Net tragedy we should be ready for this kind of consequences.

So the time for next equity investment is after the major historical event in mere future.