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The retail sector has been shifting sands, where consumer trends can shift in an instant, and businesses must adapt their strategies to stay relevant.
What has changed in the last decade is the explosion of shopping means or channels available to customers.
Retail boils down to simplicity and consistency, delivering on these fronts will ensure customers keep coming back.said Girdhar Chitlangia, CFO of Arvind Brands at the Retail CFO Summit.
How to spin around inventory management?
The success of any retailer depends on how swiftly they can rotate inventory. This requires not only smart buying decisions but also informed investments in R&D, design, and forecasting. It’s about integrating all these elements effectively.Anand Agarwal, CFO of V Mart
In today’s digital age, real-time feedback allows for immediate adjustments, necessitating tight control over stock and a vigilant eye on market shifts. Apparel, for instance, involves longer turnaround times, making connected planning, data intelligence, and analytics essential for effective management, the V Mart CFO added.Similarly, Girdhar Chitlangia, CFO of Arvind Brands, emphasises, “The ability to quickly identify and capitalise on trends is crucial. The speed of money rotation is directly linked to trend detection, and understanding what’s working versus what isn’t is vital.”
Importance of predicting consumer behaviour
Navigating fluctuating consumerism requires a deep focus on customer needs.
A CFO has to be obsessed with understanding and predicting customer needs. While basic financial tasks like comptrollership and planning are essential, grasping demand patterns and customer behaviour is critical.Aditya Modi, CFO of JioMart – Reliance Retail
Modi advised being clear about constants while adapting to changes. “CFOs should recognise whatever is changing, focus on that and freeze what’s not changing,” he said.
Prioritising must-dos and engaging stakeholders in conversations around key performance indicators (KPIs) will make the difference.
How to manage financial risks?
Long-term objectives may be clear, but today’s fluid situations pose challenges. Unexpected events, such as the Bangladesh crisis, can present opportunities, as seen with the boost to the Indian garment industry. The key is to adapt quickly and leverage your strengths.Amit Agarwal, Group CFO of Raymond, said while addressing financial risks.
Agarwal stressed the importance of preparing for fluctuations and ensuring operational capacity to manage unforeseen challenges, even if it means facing temporary setbacks.“We’ve started involving startup professionals who provide upfront insights into potential risks, as they have gone far and beyond,” he added.
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