The Hindu Business Line : ACNielsen's new head sees potential in retail

WHILE market research is relatively cheap, there is an opportunity for agencies to demonstrate greater value to clients, and help them "put some of the pieces of the puzzle together so they can see the big picture," according to Mr Russell Farmery, the new Managing Director (South Asia), ACNielsen ORG-MARG.

Retail obviously presents a big opportunity - and a challenge - in India, where ACNielsen has developed a predictive model to gauge how the market will evolve. This model can now be used in other developing markets, as well, he said.

Retail is a big growth area, and the big-store format for food and non-food categories will continue to grow quickly - starting with the metros and then in other places - if the issues of real estate and investment are taken care of, Mr Farmery told Business Line.

"Real estate is an issue - not just the cost of it, but also the availability, as so much of it is caught up in legalities and politicking," he added.

"Malls will develop quickly, space permitting, and consumers today are quite willing to travel because they've decided that the cost of travel is worth the experience and the convenience of shopping in these places. Consumers are voting with their feet and their wallets."

When it comes to market research, a growing group of clients wants the firm to do more analysis and "put the pieces together" for them, said Mr Farmery, who most recently headed the Retail Measurement Services for Asia Pacific out of Hong Kong.

"Since we are the ones who do the research and get the information, we are in a better position to add more value in specific areas, perhaps even do some test-marketing for them. At the end of the day, clients are happy to get more value, and we would be strengthening our relationships with them."

However, clients must also desist from using excessive research, he warned.

"Research should not be delivered by the truckload, because when you deliver by the truckload, you're just negotiating on prices," he added.

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ACNielsen's new head sees potential in retail