Today we're adding a new entry to our list of Common Brand Problems, though the problem itself is quite

timeless. Common Brand Problem Number 41: Branding decisions are ego- versus analysis-driven. Analysis: I have seen this happen many times. One company acquires another one and forces its name on the acquired companys products when the acquired companys brands have much higher awareness and positive associations than the acquiring companys brand(s). Or, the CEO doesnt care what the research says or what his experienced chief marketing officer says. He wants to do it this way. Or, a new marketing VP is hired and changes something just to put his own mark on it regardless of whether the existing logo or tagline or marketing campaign was working well or not. Or, he does not want to back down on his decision regardless of what the new research study says because he would look like a fool if he did. Better to bury the research study than to look bad. Or I have even witnessed top managers sabotaging each others marketing decisions and approaches just to gain the upper hand. Its all about maintaining control and the perception of invulnerability. Key Point: Buddhism and other religions focus on transcending the ego. Many psychotherapists help their patients do the same. Maybe you should suggest to the offending party that he might enjoy exploring Buddhism or seeing a therapist or maybe not. At least always try to bring the conversation back to the facts and maybe subtly influence the offending party to think that the most logical course of action was his own idea for which he will receive much admiration. Click here to explore 40 other most common brand problems. s we round out our list of the 40 Most Common Brand Problems we see one that the human resources department is called on to avoid Common Brand Problem Number 40: Since branding has become widely known and embraced, I increasingly encounter people who can talk the talk, follow the steps in the brand management process and generally take a number of actions on behalf of the brand. What I often find missing though is a true deep-down understanding of what makes the customer tick and a passion for exceeding customer expectations in unique and compelling ways. That is, I see allot of people going through the motions without the depth of insight and the passion for excellence and differentiation. People often think that a new logo, tagline and brand style guide will do the trick. Usually, these are not based on deep customer insight and a carefully crafted compelling point of difference. And just as often, business managers are not willing or able to make the changes necessary to actually interact with the customer differently based upon the new brand promise. Analysis: The art and science of branding is much more difficult than it first appears to be. While many people are labeled brand managers, only a small fraction of them have what it takes to really build strong brands: the research tool set, the deep understanding of human motivation, the intuition, the analytical rigor and the driving passion and savvy to influence the entire organization. Organizations should be much more careful in selecting their brand managers. Good ones are very hard to find and worth every penny you pay them. Mediocre ones are ubiquitous and often not worth the price.

Key Point: I would recommend behavioral interviewing as one of the most effective ways to assess skills and abilities. Ask the brand manager candidates to walk you through specific case studies from their past work experiences. Probe on challenges and how they overcame them, consumer insights that led to breakthroughs, significant accomplishments and stories of how they persuaded others to join them in championing the brand. Click here to explore the other 39 most common brand problems in our countdown. As we make our way to 40 an old problem claims number 39 on our list Common Brand Problem Number 39: The brand is gradually undermined by quarter-overquarter revenue and profit pressures Analysis: Constant market pressures to increase revenues and profits cause a myriad of problems. One of the biggest problems is putting pressure on the brand to extend into more and more market segments to broaden its appeal and to provide for more revenue growth. This eventually comes at the expense of the meaning of the brand itself. Witness Volvo. It had a very clear point of differencefamily safety, until it created the 850 GLT, which was intended to extend the brand into younger and older childless markets. Volvo promoted this car as a fun car to drivenot necessarily a safe car for the family. Its styling departed from the boxy, armor/safety-implied styling of typical Volvos. The cars success has been underwhelming, precisely because it is incongruent with the brands image. The degree to which the 850 GLT is successful is the degree to which it will blur Volvos primary point of difference in the marketplace. Key Point: If a company must grow to keep Wall Street happy (as all public companies must do), then it should consider one of two approaches: (1) introduce new products and services that deliver against the brands essence and promise (a family-safe ride in Volvos case) or (2) bite the marketing bullet and launch new brands. Sponsored by: The Brand Positioning Workshop A list of brand management's 40 most common brand problems would not be complete without Common Brand Problem Number 38: No person or department has responsibility for the brand. It lacks internal mindshare, supervision, and management. Analysis: Fortunately, fewer and fewer organizations experience this problem these days. At a minimum, most have assigned a brand manager or a brand management department. Key Point: The complexity of the brand management task makes it very difficult to develop a powerful brand in the absence of a brand management mindset and function. Sponsored by: The Brand Positioning Workshop

Contact BSI Derrick Daye 888.706.5489 Email us

Category: Common Brand Problems

Common Brand Problems March 30th, 2009

Overcoming Common Brand Problems 41

By Brad VanAuken The Blake Project Today we're adding a new entry to our list of Common Brand Problems, though the problem itself is quite timeless. Common Brand Problem Number 41: Branding decisions are ego- versus analysis-driven. Analysis: I have seen this happen many times. One company acquires another one and forces its name on the acquired companys products when the acquired companys brands have much higher awareness and positive associations than the acquiring companys brand(s). Or, the CEO doesnt care what the research says or what his experienced chief marketing officer says. He wants to do it this way. Or, a new marketing VP is hired and changes something just to put his own mark on it regardless of whether the existing logo or tagline or marketing campaign was working well or not. Or, he does not want to back down on his decision regardless of what the new research study says because he would look like a fool if he did. Better to bury the research study than to look bad. Or I have even witnessed top managers sabotaging each others marketing decisions and approaches just to gain the upper hand. Its all about maintaining control and the perception of invulnerability. Key Point: Buddhism and other religions focus on transcending the ego. Many psychotherapists help their patients do the same. Maybe you should suggest to the offending party that he might enjoy exploring Buddhism or seeing a therapist or maybe not. At least always try to bring the conversation back to the facts and maybe subtly influence the offending party to think that the most logical course of action was his own idea for which he will receive much admiration. Click here to explore 40 other most common brand problems. Sponsored By: Brand Aid Read More Email this Share on Facebook

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Brad VanAuken Common Brand Problems October 22nd, 2008

Overcoming Common Brand Problems 40

By Brad VanAuken The Blake Project As we round out our list of the 40 Most Common Brand Problems we see one that the human resources department is called on to avoid Common Brand Problem Number 40: Since branding has become widely known and embraced, I increasingly encounter people who can talk the talk, follow the steps in the brand management process and generally take a number of actions on behalf of the brand. What I often find missing though is a true deep-down understanding of what makes the customer tick and a passion for exceeding customer expectations in unique and compelling ways. That is, I see allot of people going through the motions without the depth of insight and the passion for excellence and differentiation. People often think that a new logo, tagline and brand style guide will do the trick. Usually, these are not based on deep customer insight and a carefully crafted compelling point of difference. And just as often, business managers are not willing or able to make the changes necessary to actually interact with the customer differently based upon the new brand promise. Analysis: The art and science of branding is much more difficult than it first appears to be. While many people are labeled brand managers, only a small fraction of them have what it takes to really build strong brands: the research tool set, the deep understanding of human motivation, the intuition, the analytical rigor and the driving passion and savvy to influence the entire organization. Organizations should be much more careful in selecting their brand managers. Good ones are very hard to find and worth every penny you pay them. Mediocre ones are ubiquitous and often not worth the price. Key Point: I would recommend behavioral interviewing as one of the most effective ways to assess skills and abilities. Ask the brand manager candidates to walk you through specific case studies from their past work experiences. Probe on challenges and how they overcame them, consumer insights that led to breakthroughs, significant accomplishments and stories of how they persuaded others to join them in championing the brand. Click here to explore the other 39 most common brand problems in our countdown. Sponsored By: Brand Aid Read More Email this Share on Facebook

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Brad VanAuken Common Brand Problems October 06th, 2007

Overcoming Common Brand Problems 39

By Brad VanAuken The Blake Project As we make our way to 40 an old problem claims number 39 on our list Common Brand Problem Number 39: The brand is gradually undermined by quarter-overquarter revenue and profit pressures Analysis: Constant market pressures to increase revenues and profits cause a myriad of problems. One of the biggest problems is putting pressure on the brand to extend into more and more market segments to broaden its appeal and to provide for more revenue growth. This eventually comes at the expense of the meaning of the brand itself. Witness Volvo. It had a very clear point of differencefamily safety, until it created the 850 GLT, which was intended to extend the brand into younger and older childless markets. Volvo promoted this car as a fun car to drivenot necessarily a safe car for the family. Its styling departed from the boxy, armor/safety-implied styling of typical Volvos. The cars success has been underwhelming, precisely because it is incongruent with the brands image. The degree to which the 850 GLT is successful is the degree to which it will blur Volvos primary point of difference in the marketplace. Key Point: If a company must grow to keep Wall Street happy (as all public companies must do), then it should consider one of two approaches: (1) introduce new products and services that deliver against the brands essence and promise (a family-safe ride in Volvos case) or (2) bite the marketing bullet and launch new brands. Sponsored by: The Brand Positioning Workshop Read More Email this Share on Facebook

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Brad VanAuken Common Brand Problems September 25th, 2007

Overcoming Common Brand Problems 38

By Brad VanAuken The Blake Project A list of brand management's 40 most common brand problems would not be complete without Common Brand Problem Number 38: No person or department has responsibility for the brand. It lacks internal mindshare, supervision, and management. Analysis: Fortunately, fewer and fewer organizations experience this problem these days. At a minimum, most have assigned a brand manager or a brand management department. Key Point: The complexity of the brand management task makes it very difficult to develop a powerful brand in the absence of a brand management mindset and function. Sponsored by: The Brand Positioning Workshop Read More Email this Share on Facebook

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Brad VanAuken Common Brand Problems August 29th, 2007

Overcoming Common Brand Problems 37

By Brad VanAuken The Blake Project As we record the 40 Most Common Brand Problems we see one few marketers will ever avoid Common Brand Problem Number 37: Well thought-out marketing decisions are second guessed by non-marketers who think marketing is a matter of opinion rather than an art and a science in which experience matters

Analysis: When people without marketing experience, insight, or appreciation are in positions to evaluate, review, and approve marketing decisions, the common result is ineffective marketing. Key Point: Most marketers would never claim to know how to perform surgery, write a legal brief, design software, or reconcile journal entries. Yet many doctors, lawyers, engineers, accountants, and others think they can produce a better ad or develop a better marketing campaign. Just because marketing seems less than black and white and isnt always measurable on a quarterly basis doesnt mean that relevant experience doesnt count. Sponsored By: Marketers Seeking Employment
Challenges faced by Retail Brands at Indian Malls Mostly once the stores are leased out, the developers are not worried about the promotion any more. Though a few malls organize some in-house promotional activities but that alone doesnt guarantee a good footfall. Majority of the developers dont pay attention about the branding, marketing, promotions, budgeting, financing as part of running a mall. This affects the overall footfalls in the mall, and thus the business of the retailers. The retailers are given a lot of importance to sign in the mall but later on not considered as an integral part of mall. With over 100 malls operating in India and more than 300 being developed, the opportunities offered in the retail landscape are immense. Mall space is expected to touch 60 million square feet by end-2010. With such a huge supply of space, mall owners and developers in India need to focus on vision, scalability and processes and create a distinct proposition for themselves in the market. The emergence of specialty malls is a step in this direction. Retailers today face many challenges, including increasing competitive pressures, thin margins, high occupancy costs and unpredictable supply base that come in the way of their attaining operational efficiency and profitability. In the mall they not only deal with additional super area loading but also the additional CAM expenses. As organized retail grows, the market will only become more competitive and developers will have to work hard to differentiate. Faulty mall management along with inappropriate tenant mix would lead to poor mall traffic and closure of individual stores in malls. Professional third party mall management service providers are hence likely to come to the fore. They not only understand these business challenges, but also have the ability to help retailers effectively deal with them. Generally there are two types of consumers who visit malls focused buyers and impulse buyers. The time spent by focused buyers inside the mall is relatively lower as compared with impulse buyers who spend a lot of time window shopping. Malls which have entertainment zones and/ or promotional activities have larger foot falls and more percentage of impulse buyers. Mall management becomes critical to attract impulse buyers. For example, Ansal Plaza in Delhi has ensured its success through good promotional events and mall management practices since its inception in 1999. Its amphitheater which is dedicated to promotional activities has ensured footfalls despite newer malls coming up in the

NCR region. Contrary to popular misconception that mall management is synonymous with facility management, mall management actually takes care of the issues like: - positioning - zoning (tenant mix and placement within mall) - promotions and marketing - facility management (infrastructure, footfalls, ambiance) - finance management Various business models are adopted by retailers/ developers while utilizing the services of a There are very few mall management companies in India at present. Large real estate developers and retail chains either have their own mall management divisions or have contracts with international consultants. In developed markets mall management is an established independent service line. Till recently contract model was the norm in India. But the revenue sharing model is increasingly becoming popular with retailers in India due to the present economic situation. India is yet to embrace the concept of third party mall management in retailing. Some of the issues could be: - Planning the mall around anchor tenants - Lack of market research by developers - Tendency to lease out on a FCFS basis - Perceive outsourcing as additional cost - Lack of accountability for in-house promotional activities - Improper planning for space (lack of parking space, single entry/ exit points) With the slowdown of the realty sector, developers might give the mall management practice a thought in order to ensure that the slowdown does not affect its footfalls. Mall market in India has become extremely competitive especially due to the sudden boom in the real estate sector. Malls have come up in the Tier II cities and rural areas as well albeit in a smaller and different format. With increasing competition from high street retailers, developers are finding it difficult to achieve 100% occupancy rates. A specialists retail property management skills enable property owners to receive the benefit of master planning and development expertise which is critical to ensure that malls are strategically positioned for long-term growth and success. How a retail shopping mall can be transformed into a brand? So that people recognize it with its name, and same is repeated later in other cities at other locations. But for that principle A to Z is being retailer friendly. Posted by Sonia at 11:13 PM Labels: retailers, shopping mall

The devil is in retail

The Devil is well known for his temptations. When you push your shopping cart through aisle after aisle, assailed by music that quickens your pulse and "buy me, buy me" enticements beckoning from every shelf - another pack of cookies to add to your bursting larder? another kilo of apples? another wicked jam, shirt or deodorant? - you are playing in the Big Retail Game. ALSO READ: The Biyani way of dealing with debt The Devil is also sneaking up on the businessmen and women who build the mazes you lose yourself in, the people who stock those aisles and hope their merchandise will fly off those shelves. We may have become a consumer society, but we are the world's most pernickety customers. We want Value for our money.
Foreign direct investment would have given us exits earlier. I could have been debtfree earlier: Kishore Biyani Retail in India is a fiendishly complex business, as the recent sale of Pantaloons indicates. A few days after the purchase of the Future Group's flagship apparel brand and stores by Aditya Birla Nuvo Ltd (ABNL) was announced, Rakesh Jain, CEO of ABNL, started visiting Pantaloons stores in Mumbai and Pune. He described the store displays as 'crisp' but added that the space could be used better. This may be a hint of things to come after ABNL completes its takeover of the business from Pantaloon Retail India Ltd (PRIL), which also owns Big Bazaar, Food Bazaar, and a financial services and insurance business. Young Industry "The Indian experience in retail is only six or seven years," says Himanshu Chakrawarti, CEO of the Essar Group's MobileStore. "All of us have come in from other areas to retailing." Chakrawarti, former CEO of Landmark, the books and music arm of Tata Group retail company Trent Ltd, was also involved in the launches of Trent's Westside apparel stores and Star Bazaar supermarkets. Click here to Enlarge

The earliest movers in modern Indian retail were Kishore Biyani of PRIL and Noel Tata of Trent. The industry has also been shaped by honchos such as the late Raghu Pillai, who worked with the Reliance Group and PRIL; B.S. Nagesh, former Managing Director of Shoppers Stop Ltd; and Pradipta Mohapatra, former Managing Director of Spencer's Retail. These pioneers learned on their feet in an industry in which being the first mover is not always a good thing. Noel Tata, then Managing Director of Trent, told Business Today in November 2009: "The last guy in has all the advantage." In Biyani's case, while his retail business grew rapidly, he also got into financial services and real estate. Between 2007 and 2009, the retail business grew almost 2.5 times, from five million to 12 million sq ft. Biyani also set up a supply chain management joint venture with Hong Kong-based consumer goods solutions provider Li & Fung Ltd, and expanded into financial services by setting up Future Capital. Burdened by debt of some Rs 8,000 crore - of which the non-banking finance business accounts for more than Rs 2,000 crore - he had to sell Pantaloons. PRIL's total store area is currently 16.5 million sq ft, of which Pantaloons accounts for two million sq ft. PRIL plans to add another two million sq ft this financial year. In the value segment, where Big Bazaar and Food Bazaar operate, PRIL reported 3.2 per cent growth in its existing stores in the quarter ending in December 2011, and 2.7 per cent growth in the following quarter. Compare this with Reliance Industries's same-store growth of over 20 per cent in 2011/12. Retail is very capital intensive, but enabling organisations like banks do not recognise this: B S Nagesh So, did Biyani miss a trick or two? Did he not learn fast enough? In what is probably his first interview since the Pantaloon deal was announced, Biyani told Business Today editor Chaitanya Kalbag that he had made a mistake by spreading himself too thin. "Besides retail, we are into financial services, logistics, e-commerce, insurance," he says. "Whatever investment we have put into other businesses has not generated that much return, so all the burden is coming on retail." The problem of knowhow A number of challenges in the sector that formed the backdrop to Biyani's deal are also the reason Reliance Industries has been tinkering with its retail model. Several of its companies handled different formats, such as hypermarts, neighbourhood stores, and lifestyle stores. In December 2011, it merged nine companies into Reliance Fresh Ltd, a subsidiary of Reliance Retail Ltd. Companies that handled back-end operations were also merged into Reliance Fresh. Functions such as human resources and finance are handled by the parent, Reliance Industries.

Reliance maintains 7,000 licences for 1,300 stores"

In 2010, Reliance hired Gwyn Sundhagul, former head of the Thailand arm of British retailer Tesco. As CEO of Reliance Retail, he helped set up processes for retail operations. In 2011, Sundhagul moved to Reliance Industries, and Rob Cissell, former COO of Walmart China, took over the reins of Reliance Fresh's value formats. Brian Bade was brought in from Big Lots Stores, Inc to head Reliance Digital. Tesco has been in business for more than 90 years, and Walmart for 50. Many changes followed. "The height of shelves at stores and number of bays were increased so more merchandise could go in," says Cissell. "Non-food FMCG products had to increase at Reliance Fresh outlets. All the hypermarts are being renovated." Trent has tied up with Tesco, and the Bharti Group with Walmart, for back-end processes and cash and carry . In many aspects of business, Indian retailers are reinventing the wheel. Foreign direct investment (FDI), allowed in single-brand retail and cash and carry, could speed up the learning curve. Amitabh Mall, Partner and retail expert at Boston Consulting Group, says that foreign solutions may not work in India, but "what the foreign majors have invested in is the science of retailing". So a Tesco can use its experience to benefit its Indian partner. For example, Indian stores typically place detergents and soap near the entrance, because these are among the highest-selling products in the value segment. A Tesco team reckoned that customers would seek out this section no matter where it was. So it was moved to the far end of a store, while other products were placed up front. The team found soap sales did not suffer, and other items benefited. Tesco brought in a 40-member revenue maximisation team, and also one to focus on loss prevention. It used mapped traffic patterns in the country's top 20 cities to identify the best location for a store. What Knowhow Can't Fix Indian retail has some problems that perhaps cannot be addressed by retail science. Arvind Singhal, Chairman of Technopak Advisors, puts the distorted real estate market at the top of his list. An industry veteran estimates that the ratio of rent cost to top line in an Indian mall for the apparel segment is around 10 to 12 per cent, compared with around seven per cent in developed markets such as the United States or Europe. Gross margins - the selling price of goods minus their cost - are lower in India

than in developed markets. So food and grocery retailers typically have a 14 per cent gross margin in India, compared with around 17 per cent in developed markets.

Organised retail will be an $84 bn market by 2016"

Another constraint is maximum retail price, which is the same for a product sold in a big city or a village. Then there is no goods and services tax, so companies have to build warehouses based on state boundaries rather than logistical need. Licences for various purposes are another hassle. For example, Reliance has 1,300 stores nationwide, for which it maintains 7,000 licences. The quality of footfall in Indian malls is also a matter of concern. Biyani says that while demand for fastmoving consumer goods is good, it is inconsistent in the fashion and home segments. Hemant Kalbag, Partner at A.T. Kearney for retail and consumer goods, says: "The volume of consumption in India is not so high. Consumers are still not shopping enough at the malls." The problem of cash The Indian retail market is valued at $500 billion at present - $325 billion for the value format and $35 billion for apparel. Organised retail is valued at around $30 billion, and has plenty of potential to grow. Overall retail is expected to be worth $675 billion in 2016, and organised retail at $84 billion, according to Technopak's estimates. "The retail opportunity will be beckoning Indian industry for the next 100 years; it is so huge," says Shoppers Stop's B.S. Nagesh, who has set up TRRAIN (Trust for Retailers and Retail Associates of India), an initiative to improve the lives of sales staff. He adds: "This sector is very capital-intensive. The problem is that enabling organisations like banks do not recognise this.... Therefore, price earning is stretched and entrepreneurs are stretched." He points out that India is trying to do in 10 years what western countries did in 40. Store shelves and bays had to be altered so that more merchandise could go in. All our hypermarts are being renovated: Rob Cissell A new store takes time to stabilise and break even, so companies must balance the number of stable, profit-making stores and new ones. When a company tries to grow fast, especially in the low-margin value format, it ends up with more lossmaking stores, which would strain its cash flow. Cash burn is what did Subhiksha in. The no-frills retail chain, started by IIT and IIM grad R. Subramanian, set up 1,600 outlets in 12 years, and closed in 2008. A stockpile of cash is a big advantage - one that Reliance Retail has, as its parent has $14 billion in cash on its balance sheet. ABNL and Trent, too, have cash-rich

parents. Many say the government's refusal to permit FDI has limited the sector. "It could have given us some exits much earlier," says Biyani. "I have multiple formats, multiple businesses. Any business to hive off could have made me debtfree earlier." He argues that FDI would help the wider Indian retail industry. "Any industry needs money and cannot grow only on domestic capital," he says. Domestic capital is expensive, he adds. "In business, it is like in the Mahabharata you know how to enter but there needs to be an exit option also." With the cash crunch in focus, Spencer's Retail, part of the RP-Sanjiv Goenka Group, which plans to add 200,000 sq ft a year, will proceed with caution, says Goenka. Trent raised about Rs 250 crore by selling a stake of almost 10 per cent through qualified institutional placement in March 2012. Azim Premji's investment firm, PremjiInvest, bought some 4.9 per cent. Shoppers Stop has cut prices to stem declining sales. "The volume growth challenge came because of high price rise in apparel," says Managing Director Govind Shrikhande. "This season, the price rise is half of last year. We have dropped prices of exclusive brands to gain back volume growth." High interest rates and a cautious approach by banks to retail are like salt in a wound. "From a financier's perspective, long gestation periods, profitability dependent on achievement of economies of scale requiring large capital commitment, low long-term asset creation and evolving formats are major concerns," says an Axis Bank spokesperson. Axis Bank is one of the lenders to PRIL. Kishore Biyani's response to his cash problem was to sell Pantaloons. He has said earlier that he was considering 18 deals. The Pantaloons deal will cut the group's debt of nearly Rs 8,000 crore by Rs 1,600 crore. Biyani is satisfied. "That's 14 to 16 per cent of our business, and we are still managing it," he says of Pantaloons. "As a promoter we'll have a 25 per cent stake." The sale of Future Capital would cut debt by another Rs 2,000 crore. "The sale of Pantaloons will reduce margins as it was a high margin business," says Bharat Chhoda, analyst with ICICI Securities. "The transaction will be revenue-neutral, as the savings on interest and drop in sales will compensate each other." Biyani disagrees with this analysis, made by several others besides Chhoda. He says: "The shareholder is getting a vertical demerger... Like I am getting a stake, all the shareholders get a stake." He adds that the demerged entity will be listed independently. Click here to Enlarge

"This will be valued far more than the consolidated value of the business I head," he says. He stresses that after the sale of Pantaloons and Future Capital, PRIL will become debt-free. "The only debt that will remain will be in value retail business," he says. At present, PRIL's debt situation is scary, with an interest coverage ratio (interest payments to operating income before interest and other income) of over 90 per cent. This means almost all of its operating profit goes towards interest payments. The ratio of interest payment to EBITDA is in the low 60s, which means that while the company is making little profit, its cash flow situation is a little better. Room for Optimism Biyani is sanguine. He plans to add 1,000 outlets to KB's Fair Price - his kirana store brand - over the next 18 months. He is set to open his first food park - a production facility where other manufacturers will set up units - in Bangalore. His aim is to create an ecosystem that produces food for sale at KB's Fair Price. He had a slow start on supply chain management, but today he provides warehousing and logistics services to others. Biyani is still in expansion mode. Hence the need for money. He has roped in Lawson, Japan's second-largest retailer, which is likely to be his partner if FDI is allowed in retail. Mitsubishi Corporation, too, has shown interest. "Biyani is good at setting up businesses, but running a business successfully is another matter," says an industry insider. "He is a man with an instinctive feel for the Indian consumer," says the CEO of a retail company who does not want to be identified. He says he spent time in a Biyani-owned store, observing design flaws. "I took my lessons, and when we opened at a nearby location, we had much better facilities," he adds. The Indian retail industry still has some way to go on the learning curve. A fat pile of cash will make the ride shorter and smoother. Additional reporting by Geetanjali Shukla