What Recession?

These days, there is a lot of talk about recession. Low growth, slowdown, gloom, and doom have been discussed and written about. Many people think we are heading towards a recession.

When you move around in the market, which I do every Saturday, covering 40 outlets in various parts of India and the world, I do not see any recession.

• Mission Mangal, the movie, just touched over ₹100 crore in less than five days. There were no tickets available. What Recession?
• If you go to a good restaurant, the waiting time is anywhere between 15-30 minutes. What Recession?
• If you want to travel by an airline, it is difficult to get seats. What Recession?
• If you want to book a few days’ stay in a good hotel, you better book much in advance because rooms may not be available. What Recession?
• If you go to a spa for a haircut, or a lady goes to a beauty parlour, you have to book in advance because slots are limited. What Recession?
• If we look at the quarterly results of the quarter ended June 2019, many companies have done extremely well in the recent past. What Recession?

• Reliance Industries had a 21% rise in revenue for the quarter ended June 2019, reaching ₹1.6 trillion, driven by Jio and retail business.
• • Reliance Retail’s revenue rose by 48%.
  • Jio posted a 46% increase in net profit.
  • What Recession?
• Hindustan Unilever recorded a 7% domestic consumer growth and 12% profit after tax growth in Q2 2019. What Recession?
• Amul‘s group turnover increased by 13%, nearing ₹50,000 crore in revenue.
  • It has maintained a 17.5% CAGR over the past nine years.
  • Star Product: Pouch Milk. What Recession?
• Mahindra Holidays and Resorts India saw a 32% increase in net profit for Q2 2019. What Recession?
• IndusInd Bank’s profit jumped by 38% to ₹1,433 crore in Q2 2019.
  • Credit growth: 28% YoY
  • Deposit growth: 20% YoY
  • What Recession?
• Dabur India reported a 16% growth in net profit and a 9% increase in revenue for Q2 2019. What Recession?
• IndiGo Airlines posted a 43X increase in profit, reaching ₹1,203 crore, with 44% revenue growth YoY. What Recession?
• Trent Ltd announced a 51% rise in net profit for Q2 2019. What Recession?
• United Spirits saw a 29% growth in net profit and a 13% increase in revenue YoY. What Recession?

In every industry, some companies are thriving, while others are struggling to survive. The difference? Strategic thinking and ruthless execution.

• Instead of waiting for the market to pick up or blaming a slowdown, companies need to take the initiative.
• They must adapt to changing consumer preferences to drive sales growth.
• Companies that fail to be agile and responsive will be left behind.

The rise or fall of revenue and profits depends entirely on a company’s:

• Strategic vision
• Efficient execution
• Market agility

It is fashionable to talk about a recession, but the reality is different. What Recession?

India is among the fastest-growing economies in the world, with immense potential in:

• Consumption
• Investment

Holding back and getting paralysed will not help. Brand marketing and business strategies, which are relevant in today’s times, need to be adopted and implemented well. Growth will not fall in your lap. Companies and their managers have to proactively go out and get growth.

Companies that hesitate and hold back will struggle. Instead, they should:

1. Adopt relevant brand marketing and business strategies
2. Implement them with precision
3. Move proactively instead of waiting for market conditions to change

While some companies wait and watch, proactive brands will lead the market.

The positive results will make you say – What Recession?