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International retail chains may be in a wait and watch mode before starting their operations in this country, but their Indian counterparts are gearing up for competition that foreign investment is sure to bring.
Top representatives of Indian chains such as Reliance Retail, Shoppers Stop, Trent, Mahindra Retail, Titan and Godrej Nature are likely to travel to the UK next month to pick up tips on best practices in modern retail operations.
On the itinerary will be leading grocery and general merchandise chain Tesco, luxury store Harrods, departmental outlets such as Marks & Spencer and John Lewis, Westfield Mall and electronics major Currys.
The Indian executives will also visit e-commerce companies in the UK for an insight into their workings. Ocado, UK’s only dedicated online supermarket selling groceries, household products, toys and books, and ASOS, an online fashion and beauty group, are likely to be in the list of top interactions.
Among these UK chains, Tesco wants to open stores in India, and is currently in a tieup with Tata Group’s Trent for backend support. Marks & Spencer, in a venture with Reliance Retail, operates multiple stores in the country.
Confederation of Indian Industry (CII), which is leading this delegation, said the the “mission agenda will provide a unique opportunity to visit iconic retail stores and gain knowledge on the best practices of the world’s most reputed retailers”.
A CII official said the list of companies and their representatives are yet to be finalized for the October trip.
At a time when the government may be looking at opening the e-commerce sector to foreign investment, online shopping will be a key focus area in this trip. Other areas that are likely to come up for discussions include sales channels, flexible store concept, reward and customer loyalty schemes, logistics distribution and warehousing, carbon-cutting, and efficient delivery systems.
Last September, the Cabinet had allowed up to 51% FDI in multi-brand retail, but so far no application has come from any chain due to complex conditions in the policy. Upcoming elections are also a hurdle for these chains as they fear revised rules and additional conditions if there’s a change in the government. In single-brand chains such as Marks & Spencer, 100% foreign investment is allowed. Currently, FDI is not permitted in e-commerce companies.
