Word of Caution for Indian Retail Chains

Regaining The Lost Freshness!!!

The under laying principle of earning for a retail chain is marked by sales in volume while keeping the prices low as well as keeping an edge from the nearest competitors. Another marked approach other than selling in high volume which can bring profit to retail chain to counter their higher establishment cost is efficiency in supply chain (procurement) and distribution. While on the consumer side a retail enterprise must think about savings of the consumers, best value of purchase, a less time consuming and a non-tiring affair.

Everything goes fine when it comes to medicines, FMCG, consumer durables, IT, wellness, auto accessories and other product that have higher shelf life but when it comes to food, a retailers’ strategies tumble’s down and results into longer than sale by date on the retailers self for most of the items, subsequent staleness of fresh items resulting in chaotic behavior of employees which churns down permanent or returning customer. Further, infringe online groups who shares their daily life and personal experience online may permanently ruin reputation of a brand to the point of no return and a complete collapse afterward.

So why these companies like The Reliance fresh supermarket chain(RIL’s Rs 25,000 crore venture) who once claimed of “farm-to-fork’’ is failing?

Retailers part of story

When the company first started its operation in October 2006 by starting its first store at Hyderabad, the company claimed that its focus will be on fresh produce like fruits and vegetables at the prices much below the market. Their “farm-to-fork” theory in which they claimed they will procure directly from source i.e. farmers and will remove middle men from the sourcing chain after a while started to show its colours. Further Reliance Retail is minimising its exposure in the fruit and vegetable business and positioning other items comprising food as the majority of the stock. In some states the chain may not stock fresh items entirely. Although their claims are that they have decided not to compete with local vendor due to political and due to their own inability to create a robust supply chain on the other side.

Although their part of story is true but not complete so what went wrong and still what is amiss from their part of story?

Keep watching this for more…..

Risk Mitigation Strategies: Crop Shift by Small Farmers

Why Indians fails or they are lethargic in their approach to implement something new?

Of course not! We are not lethargic especially if farmers of Punjab are considered they rank best in per acreage production. All through my journey into this vast and geo-politically diversified India, I have found a common problem that we are abound, we hate risk, we hate taking initiative, we avoid experimentation at all. As no doubt small farmers can’t risk or the above criteria does not directly relates to them as flow of information do percolate from top to bottom when Agriculture practices are considered. But why not these big farmers are creating examples for the rest to be followed? I got the answer, here’s how from these Kinno (Mandarin Orange) farmers of Punjab!


Stop thinking like a business man!!!

If you are a farmer, be a farmer, if you will think like a business men it’s sure that you won’t be able to adopt newer practices in farming, farming involves greater risk as no one can predict the exact course of action by the climate and the unknown calamities. Once you stop thinking like a business men or Baniya, you can and you will. But recommendations are to avoid greater risk by:

A.) Always look for market first: including your local buyers if you are thinking of producing at small scale for the first time. If possible communicate your buyers before cropping to inquire about the market scenario or the price trends of product/ produce or at what times the prices are at the max. But be on safer side as higher prices are most of the time during the off seasons (apart from marriage season) and handling a new crop for the crop first time, if the crop is new for you, can be a risky proposition.

B.) Play on safer side: ask the experts, consult successful people in that particular crop, Don’t hesitate in asking at all!!! We learn from others and we always learn through out our life. Always remember no one is perfect.

C.) Go slow: before going for a full fledge production start by small patch of land or think of what’s at risk and it didn’t hamper your normal farm production cycle. If case of any attack of disease/ pest consult your adviser (Friends, farmers who have done so before or an expert) to rectify. If the suggestion is from an expert go for it at full swing but in case if you are following some of your fellow friends, first experiment their recommendations in a small patch of land.

D.) Prepare in advance: requirements of packaging depending upon the target market and any post processing that may hinder marketability of your produce along with the standard quality of the produce. Suggested is to hire things at first e.g. pre-cooling or buy from people already into it e.g. packaging materials etc.

This is how we convinced them and these farmers are adopting new crops as producing in Greenhouses is entirely new for the farmers of Punjab although they are prosperous farmers they too initially feared about building greenhouses as there’s a capital involved. This capital has involved them to adopt new crop to gain max out of their investment in most effective manner. Although they have risked catering the market during the off season but they have stopped thinking like a Baniya, and I hope they will succeed. Success for them will have a far reaching benefits for various groups of the society. The greater risk is not for them it’s for us who are looking towards these farmers to buy more greenhouse, services and planting materials from us as their will be no greenhouse for next 8-10 years in Punjab if they fail. If they will succeed, they will themselves not only multiply but these people will be also help small farmers replicate the success and lead Punjab in the league of Top Grower through. We are helping them in every possible way and manner to succeed.

Although later in the morning a call from one of their trader from Delhi filled them with enthusiasm………… Coloured Bell Capsicum was soaring at INR 180 /- (US $ 4.5)/ Kg. I wish for their success.

For further reading: http://www.hort.purdue.edu/newcrop/proceedings1990/v1-006.html

An Awakening Call of The Self

As a child I always asked myself what’s one’s life purpose, specially mine? The life seemed like a vicious circle of birth till death. This phenomenon of mine, you can call it an awakening subconscious call, a sense of enlightenment that kept me bugging till my teenage years until I got busy with my formal education. It seems like that this question will bug me till the end of my life. Nevertheless in due course of my growing up (mentally), suffering and cry of people bugged me more than the usual. People dying with grief and pain, people sleeping under open sky due to the wrath of flood, famine……
the list seems to be endless………
I felt helpless and still remains so…..

In the due course I learnt that I can’t change the course of the world even I want to, if I wish to change it in a moment! No way….. or in other words nature do have its own role to play. But in this significant world one can still change the very course of few people’s life, thinking which can enlighten them to their true purpose, a momentary pleasure…….. anything which gives them a sense of significance, happiness and joy.

So in the due course of my life I learned that I must pay back to the society, a society which keeps me running, which gives me a purpose to live, how can I assume that my perpetual emotions are complete without the good health of the people which surrounds me. Life is all about flowing, the day one stops, is death and its your good deeds that keeps you flowing beyond life.

This blog of mine as well others linked to this page are few of my small effort, an effort to payback, payback to the society from where I evolved.

I hope your well wishes will keep me flowing till this life and beyond......

I found these tiny flowering plants on one of the stones lying on a tragic site of Thangu (A military post), all of the people and the whole unit was smashed by an Avalanche (yr 1998). For me it seemed like a tribute for their good deed from nature(God).