The Hindu Business Line : `Retail formats in metros may not work elsewhere'

Delivering the keynote address at the CII conference on `Organised retail - Opportunities in Andhra Pradesh' here, Mr Shishir Baijal, Managing Director and Chief Executive Officer (CEO) of PFH Investment Advisory Company Ltd, said private consumption in India accounted for 64 per cent of GDP (Gross Domestic Product), higher than shares in Europe, Japan and China.

Also, 81 per cent of the population was under 45 years of age, considered to be the `spending class'. Most retailers across all formats (hypermarkets, multiplexes and malls), were now gearing up for a pan Indian presence.

India's organised retailing stood at just 3 per cent as against 70-80 per cent in the West. Mr Baijal said that retailing in the country was poised to leapfrog and showed signs of surpassing many transitional phases.

"It is expected to grow at 25-30 per cent annually in the next six years," he said. He, however, said that lack of quality infrastructure in Tier 2 and Tier 3 cities proved to be a roadblock.

While stating that places such as Secunderabad, Visakhapatnam and Vijayawada offered huge potential for retail activity, he cautioned the retailers and mall developers that what worked for metros need not necessarily work for smaller towns.

"It is important that local needs are understood and addressed. Different delivery formats will be needed to address different needs," he said.

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