President's Desk

Dear Friends,

The Monsoons are on us in full force. Already, flooding has reared its face in several parts of South India, Mumbai, etc. Whilst the total rainfall this season is expected to be in the average to good range, it is said that it will start sooner than usual, and probably spread over a longer period. Well, whatever is good for the Agricultural Economy of the Country is more than welcome for all of us – even if it means a bit of discomfort for a few days in the Towns and Cities.

How I wish some scientific innovation could ensure that we can direct the rains to the areas we want – leaving the rest dry!

Of course I am dreaming, but I do hope the Rain Gods will spare Mumbai from 16th to 19th July at the time of the NGF!

Apart from a few lateral movements, the past month has seen some major exits from our Industry. Govind Shrikhande from Shoppers Stop and Kabir Lumba from Lifestyle have both moved on to take newer responsibilities. Both have been strong backers of the CMAI and its activities, and I take this opportunity to publicly acknowledge their support, their contributions, and their involvement with CMAI over the years. I wish them all the success wherever they move and in whatever they do.

Considering that Discounts and Promotions pour down as heavily as the rainfall does – and unlike the rains, virtually the whole year round – I am again faced with a dilemma which I have not yet been able to resolve. How much of the cost of Promotions and Discounts should be passed on to the Consumers in the first place and built in the original pricing?

The fact is that nobody is in this business is in it for charity. What one gives with one hand is usually taken away with the other. So, if the average realization in the year is going to be 80% of the original price, Brands are going to factor that in whilst fixing the original price. As a result, Consumers will be faced with higher than actual prices when buying at full prices – persuading them to postpone their purchases till a scheme is announced, thereby convincing the Brands that full price sales are falling and goods only sell with a discount.

So, is the ultimate consumption going up with this plethora of schemes, promotions, and discounts? I don’t think so. Are the Consumers getting a better deal in the long run? I don’t think so. Is the Media making big bucks due to the massive advertising undertaken during these periods? I don’t think so…. Because there is virtually no Brand Communication these days except to announce a discount in some form or the other.

So who is benefiting?

I honestly do not know!

 

 

 


Rahul Mehta

Welcome to CMAI

From the President's Desk

Dear Friends,

The Monsoons are on us in full force. Already, flooding has reared its face in several parts of South India, Mumbai, etc. Whilst the total rainfall this season is expected to be in the average to good range, it is said that it will start sooner than usual, and probably spread over a longer period. Well, whatever is good for the Agricultural Economy      .... Read More

 

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