Strategic tools for the practising manager

KIT

THIS WEEK: THE INDIAN APPAREL MARKET

The domestic clothing, textiles and fashion accessories market is currently estimated at $16 billion (Rs 73,460.4 crore). It accounts for 6 per cent of the total retail market in India.

The Indian apparel market is expected to grow at 10 to 12 per cent a year in the coming years.

The Indian organised apparel retail market is worth $3 billion.

Apparel retail is the largest segment of organised retail in India, accounting for 38 per cent of the total organised retail business.

Penetration of organised retail formats is about 19 per cent, making apparel the most organised retail segment.

Apparel accounts for 10 per cent of urban consumer spend and 6 per cent of rural consumer spend.

The branded wear market (national brands as well as key regional brands) is estimated at $4 billion. That is roughly 25 per cent of the total apparel market.

Private labels are gaining greater importance as retail margins on private label apparel are almost 30-50 per cent higher than those on branded apparel.

Selections from management journals
NUGGETS

Three years ago, the business scandal spotlight moved to a new industry when mutual funds were accused of allowing favoured customers to engage in late trading and market timing that hurt ordinary investors.

Since then, fund companies and individuals have paid more than $4 billion in restitution and fines, and regulators have been searching for ways to prevent or discourage short-term fund trades.

Although the scandal has now been subsided, some questions about these strategies have gone unanswered. Is short-term trading encouraged by the use of out-of-date, or "stale," stock prices in valuing fund shares? Will remedies such as redemption fees, mandatory holding periods and "fair-value pricing" work? And can they work without penalising ordinary investors?

Stale or sticky "" what motivates late trading and market timing in mutual funds?
Knowledge@Wharton,
September 20, 2006

Read this article at http://knowledge.wharton.upenn.edu

This paper investigates the image of the insurance industry in society. One might assume that the insurance sector enjoys a positive reputation with the public, adding to the creation of wealth and bringing a number of positive contributions to society.

However, the opacity of the insurance business and problems associated with the respect of customer privacy are key factors that undermine that image.

After making a global analysis, the authors focus on the case of a British insurance company and suggest certain recommendations to improve the industry's public image.

Traditional issues and new challenges: the insurance business and its image in society
By Henri-Claude de Bettignies and François Lepineux
September 2006

Read this article at http://knowledge.insead.edu