The Hindu Business Line : ‘New format retailing will keep growing’

India’s modern-format retailing sector will continue to grow, driven by factors such as the changing consumer psyche and growing urbanisation, said Mr Abhimanyu Ganesh, Managing Partner, QRS.

Speaking on ‘Retailing: Trends and Imperatives’ at a Business Line Club lecture at the Fathima Matha National College, Kollam, on Tuesday, he pointed out that Indian consumers, especially the young are spending more and no longer feel guilty about spending money.

At the same time, Indian consumers, irrespective of their level of income, are also more aware, brand-conscious, quality conscious and are looking for value for money, he pointed out. Similarly, consumers, even in smaller towns, are also increasingly changing what they demand from a shopping environment, he added.

Food, grocery and clothing are the retail segments, which will see the maximum action over the next few years, he predicted. At the same time, India’s traditional retailing formats will continue to be relevant, he said. A retailer’s success will depend on the ability to use local understanding, particularly in developing pricing and promotion strategies, Mr Ganesh stated. Retailers should also “know” consumers and shoppers, and use this knowledge to their advantage. Similarly, retailers should “obsess on the basics”, and integrate the store and brand message, he added.

Problems that confront Indian retailers adopting modern formats include the lack of supporting infrastructure and industry status, Mr Ganesh said. Similarly, the multiplicity of tax rules and other regulations such as the Agricultural Produce Marketing Act are some other challenges that confront retailers.

Supply chain bottlenecks, real estate issues and unavailability of the right manpower are other difficulties that confront retailers, he added.