Patel Retail · tone and specificity signals across the available quarters.
Language signals
The decline of 333 basis points was primarily due to mix of manufacturing export and commodity link business which had higher raw material intensity during Q1. With this the management considers this percentage as transitory for our coming quarters.
The location where we operate right now, mainly tier 3, tier 4 and tier 2 cities, the online trend in certain categories where we have our USP, in staple category which contributes to more than 50% of our revenue, is still a very touch and feel category.
We would try to achieve the same key payback period within those years. Some of those stores are doing exceptionally well and some of them have a very steady growth.
We never want it to be empty. Now to solve that problem we have a hub-and-spoke model where all the distribution is done through a central warehouse which is situated within 60 kilometers of all our stores.
Our vision with any kind of introduction of a new product or let's say a new categories very clear. We first want to understand the market first. Get our base right. Introduce the distribution channel well. Try to see that the product is accepted. Are we placing the bet on the right products?
Our approach will be in the export business is to try to work with the top brands within that country... we introduce few products to them, one they see that Patel is a reliable source... then they give us three more products and then they give us a few more products. So that's how you see the increase in the export revenue.
I mean retail as a business is quite undemarkable right. We are trying our best to do the same store growth. There is no proper answer to why it has come down from 8-10% to 5%. We have always seen growth of around 5-6%.
Government rules and regulations are so uncertain that we are not relying 100% on DGFT and such schemes given by government, right, because they have always been very uncertain about it.
This is just a temporary dip and we are looking forward to almost the same consistency growth in coming quarters.