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Retailers regain confidence but challenges remain

New Zealand’s retail sector is on the road to recovery following years of recession and with increasing confidence, businesses are optimistic about the future.

However, a number of challenges including sound cash flow management, strategy for growth and a proper business plan continue to dominate the sector, especially small enterprises and owner-operated companies.

Some of them complain of rising overheads, reducing margins and unhealthy competition but well established businesses believe that quality of the products and services offered, complimented by other factors would help them remain productive and profitable.

“It is important to have a sound business plan in place. Such a plan would not only account for the market trends but also inventory and credit control and marketing strategies that accentuate growth.

Experts say a proper accounting system and sound management of accounts receivables would keep small enterprises out of trouble.

“People in retail business for instance are tempted to spend more than what they earn because they see a steady flow of cash. But the wise would know how to resist such temptations.

“Every business activity should have a correctly structured funding package not only to maintain a good cash flow but also take advantage of the growth opportunities. Cash flow management involves managing the operating cycle of a business within the parameters of its current cash reserves and debt funding facilities,” they said.

“Our business consultant encouraged us to enter the Indian Newslink Indian Business Awards four years ago and in accordance with the requirements, we created an annual business plan with projected growth and established proper accounting procedures. We have since then won awards in two categories,” an Auckland based retailer said.

Our ‘Business Excellence in Retail Trade’ Category has been popular since its inception in 2008, attracting large, medium and small enterprises meeting the objective of this particular Award – to recognise a successful retail business which exceeds customer expectations.

Our panel of judges, independent of this newspaper, seek to understand the competitive advantage of businesses and consider evidence of how such an advantage enabled the business to be profitable.

The nature of SMEs lends itself to under capitalisation, high gearing, margin erosion and overtrading (rapid expansion or big projects causing cash shortfalls).

The challenges facing such enterprises in New Zealand in bridging that gap are significant as evidence suggests that only one third survive for more than five years.

The Ranchhod Group

The Ranchhod Group, which has properties and other businesses in New Zealand and Australia, is the sponsor of the category this year.

Managing Director Raman Ranchhod said his Company was delighted to sponsor the category that aims to recognise business excellence in retail.

“Whilst we are not a retail company, we have many retail tenants and can attest to the need to recognise retailers, particularly in the current market. In doing so, we would also like to emphasis our Ranchhod Foundation, to inspire businesses in New Zealand to think about giving back to their community,” he said.

His son and Director Mahesh Ranchhod said that the Foundation reflected corporate responsibility of the Group towards the society and the community.

“The Foundation strives to undertake a number of charitable causes in New Zealand and India with a focus on supporting adults and children in need,” he said.

Editor’s Note: The Ranchhod Foundation is a registered charitable organisation, involved in a number of projects in New Zealand and India. Indian Newslink will feature the Foundation exclusively in an ensuing issue.

The Ranchhod Group, comprising companies and trusts, is involved in investment and management of commercial properties in Australasia and beyond. As Mr Raman Ranchhod said, the performance of each company is directly linked to the performance of the property portfolio.

The Ranchhod Group is owned and managed by a syndicate of well-experienced investors in New Zealand, who have carried a sincere passion for property for generations.

“The vision of the Group is to invest and manage profitable commercial and residential property across the globe with a long term view to list the Group as a public company,” Mr Mahesh Ranchhod added.

We hope that this year’s Awards programme will experience a larger number of companies in the retail trade, vying for the trophy.


Photo : Prime Minister John Key with Raman (right) and Mahesh (left) Ranchhod at the Indian Newslink Indian Business Awards Night held at the Sky City Convention Centre on November 14, 2011. The Ranchhod Group won the ‘Business Excellence in Property Investment’ category.


Indian Newslink Indian Business Awards 2012

Category Sponsor

Supreme Business of the Year BNZ Partners

Best Large Business BNZ Partners

Best Medium Business Unitec Institute of Technology

Best Small Business 2degrees Mobile Limited

Business Excellence in Innovation Singapore Airlines

Business Excellence in Customer Service Kalamazoo Group

Business Excellence in ICT KPMG New Zealand

Business Excellence in Marketing Radio Tarana

Business Excellence in Export to India New Zealand Career College

Business Excellence in Retail Trade The Ranchhod Group

Business Excellence in Restaurant Trade

Best Young Entrepreneur of the Year Patton Limited

Best Businesswoman of the Year Triangle Television

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