Apparel occupies the largest chunk of the Indian consumer’s share of wallet at 16 per cent.
Food and grocery come in second with 16 per cent share of wallet (does not include eating out), while consumer durables account for about 9 per cent.
The organised consumer durables and information technology market in India is at $1.2 billion.
Despite the penetration of the organised market, the modern housewife still prefers the neighbourhood kirana store for her daily food and grocery needs, with about 96 per cent still visiting such outlets and only 15 per cent visiting modern outlets.
NUGGETS
Selections from management journals
Many investors view maximising shareholder wealth as the only obvious and defensible, corporate objective function. Contradicting this view, this paper aims to consider the shortcomings of the “shareholder first” view and offer an alternative. To make strategic tradeoffs effectively the whole organisation needs a clear sense of what it is trying to achieve, and how choosing between specified alternatives serves its highest goal. Organisations need a “best metric” for the corporate strategy. The paper considers what ultimate end should corporations refer to when making these difficult and sometimes painful tradeoffs? The widely held shareholder-value view holds that every choice should be made with an eye to creating as much financial wealth as possible for the providers of equity capital. But none of the familiar justifications for this view stand up to scrutiny. It is not true that: shareholders are owners; shareholders bear the most risk; maximising shareholder value is a clear goal; and maximising shareholder value is a legal requirement. The corporation-first view is a better alternative principle. The corporation should not seek to maximise the interests of shareholders, or employees, or suppliers, or the environment, or anything else.
End shareholder value tyranny: Put the corporation first Michael E Raynor
Strategy & Leadership,
2009, Volume 37, Issue 1
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