Modern Trade -In current times

After the last few years of being gungho , Modern trade has also seen its fair share of trouble in these times of slowdown ,already reports indicate that there is poor off takes by big retailers as their sell outs itself is low ,to add to this is the perennial payment delay problem from the retailer side .

So how do brands operate in such a situation ,here are some blog suggestions :

Pls note that these are not a straight fit recommendation , as it would depend upon the contribution Modern trade has to your business , higher the contribution higher the need to dance to the tunes of retailers !

i) The retailer would ask for a big piece :In these tough times retailers would know how to arm twist brands ,say by asking for a margin increase : if you have no way to go! then tie it to an off take Volume increase ,or the elusive prime space deal that you couldn't crack earlier or say a polite NO .Also remember word spreads too ,give it to one retailer ,others would ask for it soon .

ii) Don't give in fully :It goes without saying that brands never would want to give in fully , its important that under duress that they never give in fully as that would mean that there was no relationship element that existed which led to this full ask in the first place !

iii ) Pray that the times change ! There is nothing much one could do an hope that CNBC starts playing positive news and the stock market is up and up daily , and pink slip news is not everywhere and life is good again fast .

Modern Trade in India is a recent phenomenon , its good that we have seen both the ups and downs of this channel fast .As it would have created enough learning's !

Pls also read earlier posts in this blog :Modern trade : The new market place , & Modern Trade :How to succeed.