Webinar discussion with Mr. Nagesh, Mr. Anuj Puri, Mr. Pinakin and Mr. Kumar Rajgopalan
This scenario is medical based scenario, not created by false doing. This is Loss of productivity scenario where mall owners, physical space owners cant able to open the door of the retail that result in destruction of wealth.
This is a time which is not predicted likewise in 2008 there was a financial crisis, the banks bankrupted. but it’s a time is loss of productivity to the retailers, how to emerge out of this and to sustain. Hard to predict what will happen, just react to what is happening, Focus on recovery.
The Retail Association of India has been working with the government and they have found the government is very active at this period and also very responsive and when the economic policy is announced hopefully the retail sector will receive some relief.
Q. If a CEO or a business owner, what and how she or he should be thinking ?
A. First priority should be how to keep the organisation employees Motivated and second priority is how do we serve and support our customers, a lot of strategies are on the fly.
Q. What are minds should be occupied with as of now ?
A. First , how do you communicate with the employees, how to show compassion towards them because there is going to be a huge amount of nervousness. We needs to engage with the customers that what are your views start to look at the cost, you should see that there is enough cash to go through this phase. And in the case of small retailers ask the employees how are their family doing, is there any problem, is everything fine or not these are the very important things to do, communication is very important.
Q. Do you see the way consumers are thinking today and their behaviour will changes up till the sector opens up.
A. Yes all the sets of ages will react differently. There will be a change in a condition where people will go and seek happiness in terms of purchasing at retail store, there will at least be some amount of encouragement in the retail sector.
Q. What should be the broad focus of the CEO or the owner be? because he or she has to the employees at the same time has to see the organization.
A. One will have to deal very practically for eg. If there is a job loss because of this situation the owner will have to see that the job is not gone instead find an alternate solution like cut some amount of salary. Bring down the travel cost or cut off your entertain part for some time. 1st would do a discretionary spend, 2nd is cut off in salary, job cut will be the very last thing. And when you have enough after coming out of the crisis then try and give back what is been deducted.
Q. What will happen if this crisis goes on till 9 to 12 month how will the retailers manage the situation ?
A. Almost 20 to 25% of ppl would seriously need capital otherwise they would be locked down and out of business.
Q. How should each partner in the value chain behave
A. The partners should support each other in terms of capital and understanding, looking at the profit and the losses.
Q. As a business owner, what are thing you can start thinking about as to how to manage the future
A. First manage elements of cost in this period, draw down a budget of the next 12 months of the capital which you have.
Q. What should a retailer do to come out of these crises
A. Retailers should think in a broad sense and should think of collaboration. First collaboration of compliances, second collaboration in the point of revenues, and Third collaboration is for cost.
Q. Should the government of India spend 3 to 5% of GDP so that the financial impact is lowered down and things looks good
A. Yes step should be taken to support the business
In the past when the organization came through a crisis like this whichever organization team together survived, the organisation which are transparent and honest survived, the organisation which shared the pain has survived, whichever organization kept connected with their consumers survived, the organization should learn lessons from crises like these and take precautions and be ready if some crises like this arrive in the future.
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