Indian retail industry finding ways to cope with market fluctuations
The era of organised retail is contributing 35 percent to the GDP, adding lot new prospects to the Indian retail industry. But has the recent market fluctuations affected this sector? Yes, it has. And today the question arises on how the industry as a whole and the retailers specifically should deal with the problems under current slowdown even when long term opportunity in this country is robust and competitive.
The Indian consumer has matured over the years and so a cowboy attitude in marketing through discounts and other doles fail to work out favourably in these difficult times. “India is a strong consumption market and majority of it is the domestic market,” says Mini Mathur, Assistant Professor- Retail Management, Mudra Institute of Communications. Accepting the fact that the overall economic turbulence has brought in an unstable condition, she asserts, “In present conditions, customers don't see a value proposition in shopping at an organised store or a mall and most retailers are unable to achieve their economies. Customers look for value for their money, time and effort and not just experience.” She believes that it is a learning phase for both the customers and the retailers.
Many players in the industry believe that the present slowdown is more sentimental than real. They trust that the only way to make money in India is through the innovation of format and rise in consumption. Delivering value at low price is the ultimate challenge. “Retail sector, apart from distinguished service is about distinguished product presentation / packaging,” feels H. P. Joshi, Managing Director, Nichrome India Ltd. He believes that the better formats for simpler use would come at affordable costs with increased competitive forces in retail sector. He also feels that the value addition in this stage of market slowdown, coming in the form of display value, higher shelf life, better usability, lower cost etc, would certainly attract the consumers.
Several players entered the retail sector in too short a span of time. And since then they have been in a rush to make a strong foothold in the market. So, if this is slowdown has brought in some time that the retailers can use to study the consumer behaviour in depth, the Indian retail industry can expect more of the R&D results in near future.
Date :- 08/12/2008
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