Modern Retail chains like Chroma, Next etc. are in battle with India’s leading CDIT product manufacturers over margins and terms of trade. These retailers led by Chroma are taking a tough stand and bargaining for higher margins and are toughening trade negotiations with global multinationals like Samsung, LG, Nokia amongst others. The industry operates on very low margins- the average trade margins in CDIT range between 10% and 19% but for modern retail, the figure is much lower at 8-10%. Besides margins, traditional trade channels also get special channel discounts, and other benefits which the manufacturers do not pass on to modern trade. It is to be seen who has the final say in the $ 24 Billion CDIT industry .
Source ET 03122011
Posts
No comments:
Post a Comment