Speaking at the recently
concluded International Advertising Convention, Future Shock, Michael
Fernandez, Mckinsey & Co, stressed the need to organise retailing
in India.
 With
international players like Kingfisher, Dairy Farm and Marsh
showing keen interest and large Indian Business houses like RPG,
Tata, AV Birla, Zee, Piramal and Raheja in the fray, there
is an increased supply of organised retail. Sourcing options have
improved, with Indian suppliers supplying to world-class retailers.
Global sourcing is becoming increasingly viable due to liberalisation
of tariffs and proliferation of products driven by manufacturers.
Growing incomes and the changing role of the Indian housewife has
brought in an increased demand for a better shopping experience.
 But
Indian retailing is still not organised. 1998 figures show only 2%
of the total market is in organised retailing; the rest are through
traditional channels. (In the United States, the same year's figure
shows 85% of the market is organised retailing). But this is all changing.
There is a new consumer on the block, what some people call an 'evolved
customer'. The retail channel is also transforming parallely.
The Indian woman has changed, she is demanding more conveniences like
one-stop-shops and pre-cooked foods. For lack of time, she wants the
decision-making process to be simplified. There is also a demand for
'time-pass' activities and shopper-tainment. Added to this is a demand
for aspirational products.
The key issues are the emergence of the retailer as a brand.(Top-of-the-mind
examples in Chennai are Foodworld, Lifestyle, Shopper's Stop, Niligiris
etc.) This scenario demands the extension of the brand to beyond
functional benefits. The market has to increasingly become customer-oriented.
Knowing the segment and the consumer is very important and so is value
delivery.
Author : Anuradha Sriraman
Photographs : V Ganesan |
