All posts by bizeditors

Oakley: Appetite for luxury products is huge in India

Bindu D. Menon (Businessline, The Hindu) reports that Versace, Oakley and Nike Golf are increasing area and product assortments to draw consumer interest in what they consider one of the biggest markets in Asia.

Quotable Quotes:

Mr Scott Bowers, Senior Vice-President (Global Marketing and Brand Development), Oakley Inc:

“India is one of the strongest markets in Asia and this is where we are looking to establish our product line.

Until now, we were cautious with expansion but now we will be making a lot of noise.

The appetite for luxury products is huge. We are exploring means to entrench ourselves here.

Mr Marc Duhm, Wholesale Director, Versace:

“The purchasing power in India is a major factor while considering expansion. We will keep looking at opportunities in markets where we feel they are growing.

The slowdown in our business is a temporary one and we will keep looking at opportunities to grow our business.”

Mr Abhay Gupta, Executive Director, The Blue Clothing Company:

Consumers are seeking high-end brands and purchasing power is back with a bang. We have had a good response to Versace.

Our next venture will be to launch high-end jewellery brands in India. However, easing of FDI norms will help the industry grow.

Premium brands enable value addition by helping to improve retailing experience and manpower training.”

Read the full article here.

Get Clear

How does an entrepreneur GET CLEAR?  Really clear about business, customers, profits and the entire spectrum that makes up an entrepreneur’s life.

How CLEAR are you about your business goals, most profitable market segments, long-term strategy, day-to-day business operations and the integration of all these with your life goals?

You may have an immediate sense of what you think you want. It could be one or more of the following:

  • Better Margins, More Profits, More Revenues
  • More Customers, High Ticket Customers, Customer Retention
  • New Market Segments, Products, Services
  • Get out of day-to-day Firefighting (Crisis Management)
  • Create more time for creating new avenues for your business instead of being stuck in day-to-day crisis handling
  • Find better employees (who own their work and are proactive)
  • Build Better Systems
  • Streamline your operations in such a way that your employees take ‘complete responsibility’ for their roles & solve problems proactively instead of making excuses

Whatever is on your list, it is often difficult to decide where to start.

Seth Godin has a riff titled “The Priority List”. He says, the ability to decide “what to do next” is an underrated skill. For example, he says:

Is it better to email an existing customer, send a brochure to a prospect or improve your product a bit? Should you tweet or post a new blog post? Should you have a meeting to coordinate your team or spend ten minutes returning phone calls instead?

His tip:

Do you have a list? Have you figured out which metric you’re trying to improve? Can you measure the impact of the choices you make all day?

I see this mistake in business development all the time. Assume for a moment that the goal of someone in this department is to maximize profit. Why then would this group spend most of its time tweaking existing deals (looking for a 3% improvement in yield) instead of spending the same time and effort doing new, game-changing deals?

If you already have your LIST along with corresponding MEASURES, and you are still struggling to “Get Clear”, then what could be missing is clarity regarding your goals.

When did you last review your Goals? What are you REALLY up to?

Stephen R. Covey said “Priority is a function of context.”

So, WHY are you doing whatever you are doing?

Is that CLEAR?

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Clarify Your Goals

First thing is to CLARIFY your goal. What do you exactly want out of your business?

Money for comfortable existence? Or, are you on your way to becoming a global tycoon?

Do you wish for a stable business? Or, a growing business? Or, an accelerating business which, perhaps, you can sell soon?

What is the most appropriate growth strategy for your business?

  • Higher Volumes? And/Or, Higher Margins?
  • More (any) Clients? And/Or, More Big Ticket Clients?
  • More Revenues? And/Or, More Profits?

Is organizational culture important to you? What kind of culture do you want?

For example, many small businesses in India find it cost-effective (often, inadvertently) to have low salary low retention employees, who may be damaging the internal culture and/or customer relations and business growth.  Would hiring the ‘Best’ make more sense for your business?

Should you allocate resources to enhance Business Processes & Systems?

Should you invest more in implementing Technology? Which Solutions? Why?

Whatever your questions, you don’t want to run around without CLEARLY articulated goals that are regularly communicated down to the last rung of frontline executives.

No fun in having all your people and resources run around in circles when they can actually deliver dramatic results with laser sharp focus.

Clarifying Your Goals is a recurring exercise because things change – business climate, technology, competitors, customer needs, your needs and so on.

One efficient way to do this is to categorize all your goals along TIME HORIZONS – from Immediate and near-term to long-term life goals.  In his book,  Getting Things Done, David Allen presented “The Six-Level Model for Reviewing Your Own Work”:

  • Runway : Current Actions
  • 10,000+ ft:  Current Projects
  • 20,000+ ft: Areas of Responsibility
  • 30,000+ ft: 1-2 year Goals
  • 40,000+ ft: 3-5 year Vision
  • 50,000+ ft: Life

This is a useful first step to start de-cluttering your life and business. Another complimentary tool is a “Mind Map”.

Mind Maps help in creating a WHOLE business picture which can be drilled down to the “Runaway” level.

Created intelligently, it can be a powerful first step in organizing your business to clarify, track, and monitor business goals and results.

With Open Source around, freemind and xmind are great free tools to create Mind Maps.

You can maximize the power of Mind Maps by sharing Mind Maps with your team and asking them to contribute. Xmind, The “Social Brainstorming and Mind Mapping” Tool, allows users to share Mind Maps for collaboration.

Happy De-cluttering, Organizing and Creating What You Wish To in your business!

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ET: SMEs drive India’s growth to prosperity

Now that SMEs can raise funds through NSE/BSE, what more can be done to empower SMEs to drive India’s growth to prosperity?

According to ET Bureau, SEBI’s latest move “can be but one step
towards removing the panoply of constraints that they face on a daily basis.”

Some suggestions by ET Bureau:

  • Remove routine informational rigidities between SMEs and lenders and potential investors.
  • A more responsive policy mechanism to finance SMEs: what is necessary is an array of advisory and business development services focused on SMEs: the idea is to improve credit and business-performance information.
  • Innovative financial products to reduce credit risks for SMEs and boost investor comfort.
  • Address the problem of delayed payments and rationalise the tax regime for SMEs.

Finally we  enthusiastically agree with the assertion:

We need a thriving SME sector to boost entrepreneurship and risk-taking pan-India, and spur innovation and growth.

Read the full article here.

NOW, SMEs can raise funds through NSE/BSE

CB Bhave, SEBI Chairman
CB Bhave, SEBI Chairman

Now,  SME Business Owners in India can raise funds with their IPOs on NSE and BSE!

This is the latest message from the Securities and Exchange Board of India (SEBI), which announced its decisions through its Press Release “PR No.344/2009”.

NSE and BSE will now be allowed to set-up SME trading  platform, which would have lighter eligibility norms for companies initiating public offers:  Clause 49 still needs to be complied with, and SMEs can prepare and present financial results on a half-yearly basis (instead of the quarterly requirement).

Other exemptions include diluting the profitability track record requirement and Takeover Code regulations.

  • Minimum IPO application size: Rs. 1 lakh
  • Minimum trading lot: Rs. 1 lakh
  • Upper limit for paid up capital for listing on the SME exchange : Rs. 25 crore
  • Minimum paid up capital for listing on NSE/ BSE: Rs.10 crore

Read the complete Press Release here.

Further, it said companies listed on the SME platform would be exempted from the eligibility norms for initial and follow-on public offers. While norms related to Clause 49 of the listing agreement will have to be complied with, SMEs have been exempted from quarterly preparation and presentation of financial results to keep their compliance costs low. Instead, accounts will have to be prepared and presented on a half-yearly basis