| The luxury and high-end clothing market in India currently stands at Rs 1,000 crore. The accessories market is worth another Rs 1,000 crore. |
| This super-premium market for clothing, watches and accessories is currently growing at 25-30 per cent every year. |
| There are about 450,000 rich households in India (annual incomes over Rs 55 lakh, adjusted for purchasing power parity), of which about 30,000 households have incomes over Rs 3 crore a year. |
| An estimated base of over 500,000 consumers in the age group of 25-45 years are potential customers for lifestyle products. |
| This segment (annual incomes over Rs 55 lakh) is estimated to grow to 600,000 households by end of 2006, with about 40,000 households having annual incomes over Rs 3 crore. |
| Sale of diamonds increased by 26 per cent in the past one year. |
| Premium housing (over Rs 1 crore) is currently growing at 25 per cent every year. |
| The market for plasma TVs (Rs 3.5 lakh and more), home theatres (over Rs 5.5 lakh) and side-door refrigerators (over Rs 3.5 lakh) is growing at 30-40 per cent a year. |
| Selections from management journals NUGGETS |
| Executives have developed tunnel vision in their pursuit of shareholder value, focusing on short-term performance at the expense of investing in long-term growth. It's time to broaden that perspective and begin shaping business strategies in light of the competitive landscape, not the shareholder list. |
| In this article, Alfred Rappaport offers 10 basic principles to help executives create lasting shareholder value. For starters, companies should not manage earnings or provide earnings guidance; those that fail to embrace this first principle of shareholder value will almost certainly be unable to follow the rest. |
| Additionally, leaders should make strategic decisions and acquisitions and carry assets that maximise expected value, even if near-term earnings are negatively affected as a result. |
| During times when there are no credible value-creating opportunities to invest in the business, companies should avoid using excess cash to make investments that look good on the surface but might end up destroying value, such as ill-advised, overpriced acquisitions. It would be better to return the cash to shareholders in the form of dividends and buybacks. |
| Ten ways to create shareholder value Alfred Rappaport Harvard Business Review, September 2006 Issue |
| Subscribe to this article at www.hbr.com |
| Infinity Bank, one of the 10 largest banks in the UK, is a major banking power with over 1,800 retail branches throughout the country. The first objective of the bank's new CEO is to reverse the retail group's recent dismal performance. |
| To accomplish this, branch managers are given strong incentives to sell profitable products "" credit cards and mortgages, identified as the most profitable by a recent product-profitability study. But can this product-focused strategy succeed in retail banking, where there are massive variations in profitability of customers? |
| Infinity Bank Igor Vaysman, Stephen Smyth Insead Knowledge, September 2006 |
| Subscribe to this article at http://knowledge.insead.edu |
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