The keynote address at the Retail CFO Summit was delivered by Mr. \u00a0CP Toshniwal,\u00a0 Executive Director, Future Lifestyle Fashion Limited.<\/p>\n

Below are some of the key highlights from the same:<\/p>\n

Working capital management is a crucial function of a CFO and success of new ideas depend on it.<\/i><\/b><\/p>\n

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• Think about Business first – whether business is \u201cdoable, moveable or executable\u201d.<\/li>\n
• In retail, many ideas fail because of working capital management issues.<\/li>\n
• New ideas have to be balanced with the risk attached.<\/li>\n
• Only money does not make great business.<\/li>\n
• India is an evolving market. People, technology and environment are dynamic and hence, there should be flexibility to manage the change.<\/li>\n
• Too fast growth can be detrimental if the system, process and people do not scale up in line with the rate of growth.<\/li>\n<\/ul>\n

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  Three policy changes which will take retail to the next level – implementing GST, abolishing the MRP concept and the Essential Commodities Act. <\/i><\/b><\/p>\n

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  • GST is to be brought in. It will change the whole landscape in Supply Chain Management in India.<\/li>\n
  • India Retail has lot of challenges. MRP regulation need to be made relevant.<\/li>\n
  • Essential Commodity Act is to be relooked at.<\/li>\n
  • Business ideas may or may not work. But you need to be clear on your capacity & quantum of loss you can bear.<\/li>\n<\/ul>\n

    We have terabytes of data but we need to take meaningful & actionable information from this data.<\/i><\/b><\/p>\n

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    • If merchandise is not replaced then retail shop becomes a warehouse.<\/li>\n
    • The law of averages does not work in retail.<\/li>\n
    • Managers have a lot of information with them. Only relevant information should be given to the team so as to not confuse them.<\/li>\n
    • Pick key metrics and keep communicating them consistently.<\/li>\n
    • While building your sales, you need to also build corresponding systems & processes.<\/li>\n<\/ul>\n