Presentation @ CFA Society Book Launch Event

We want to thank the CFA Society of India for hosting our book launch in Mumbai. Also a big thanks to @rohithpottigmail-com and @Pooja_Bhula for setting the event up and getting 3 of the entrepreneurs from the book to speak. It sounded like the talks from the entrepreneurs alone were well worth the event. Unfortunately those talks were not recorded.

To any member who did make it to the event, feel free to post your learnings here and any feedback you had.

Below is the video presentation that I created and was played for the event.


Takeaways from the talk & separate discussion Mr Mukesh Sawlani from House of Anita Dongre.
a) In Fashion, Inventory management is what stands between a flourishing biz and Bankruptcy. The range of inventory in this biz is 8%-30%
b) One key to success is planning required output (in quantity) such that you arent left with too much stock when the fashion trend changes. This helps in avoiding discounts on your products.
c) Everyone has to follow the Zara Model i.e. Need to be agile with continuous feedback from clients. This sounds simple but it is super difficult to do.
d) Rather err on the side of lower sales than have high inventory
e) Most guys in Fashion have super creativity but they dont have business skills.
f) Finding good designers is a key challenge for the industry. In India, Fashion business is just 20year old and hence there arent good training institutes.
g) They measure business success not just by financials but also by the good they do for the ecosystem. For instance, they train villagers especially women on machines so they could earn. They have also tied up with NGO SEWA from Gujarat to encourage more women to work. etc


Hi @Jay_Kakkad…Thanks for sharing this…
When you say inventory is 8%-30%, this is as a percentage of sales is it?

Here are a few points in Raghunandan Kamath’s talk which I found really interesting.

Question: The price per scoop of Natural ice creams has remained broadly stagnant for the last decade. Why is that?

1- My customer base ranges from the BMW car driver to the BMW car owner. So I have to ensure the pricing and quality are equally taken care of.
(My note: How many discretionary, fun products do you know that travels so well across the economic class?)
2- We do not do any advertisements. Our marketing is entirely through word-of-mouth. So we save on that cost, which allows me to price my products at a lower level.
And when I price my product that low, my competitors are forced to follow me. But their cost structures are not as efficient. So this helps the company.
(My note: Which companies do this barrier to entry remind you of?)

Question: In a Naturals Ice Cream Parlour, the vessels from which ice creams are scooped out to be served to the customer do not have the ice cream names written on them. Why is that?

That is deliberate.
1 - It is to encourage the customer to interact with the store. We want the customer to taste and experiment the various flavors we provide. We also want them to interact with the servers. It is part of the Naturals experience.
2 - Also, some of our flavors like musk melon, jackfruit, etcetera are not fancy sounding. And we worry if we put their names out there, people might not try it out.


Not explicitly mentioned but it is industry practice to express inventory as % of sales.


Superb articulation to explain one of the most critical aspects of investing. Well done @seaniddings !


I appreciate the kind words, @udai!

It is simple, but still hard to put into practice everyday as an investor or operator.

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