With India poised to be a $450 billion retail market by 2015, the panelists during a session on ‘Innovations towards sustainable consumer markets’ called for a better understanding of the challenges India faced on its road to the target.
India’s consumer market is in transformational state with dynamic changes in the demand pattern and it is innovation that will lead to sustainable growth as far as the retail sector is concerned.
The panel put on the table challenges ranging from understanding the diversity in the market to creating the right value chain to the strict regulatory norms that come in way of attracting foreign investment in Indian retail sector.
To this end, James Scott, Regional Operating Officer, Asia, Metro Cash & Carry International, Hong Kong, pointed out that the supply chain— particularly the cold chain— needs to be developed along with bringing greater efficiency in agriculture and better linkages to the local markets. In addition, an encouraging regulatory environment and more physical investment are required to stimulate development.
On the other hand, dismissing the phrase ‘average consumer’, Kalendu Patel, Executive Vice – President, Emerging Business, Best Buy, USA, said that understanding the diversity of consumer types is important, along with achieving a local consumer connect. He however added that customisation according to local needs of the customer and simultaneously tapping the existing global opportunities is a big challenge facing the Indian retail industry.
A diversified product range, recreating the value chain according to consumer needs and increased communication with the consumer are some of the ways that can help grow the consumer markets, said Aron Cramer, President and Chief Executive Officer, Business for Social Responsibility, USA, while trying to highlight the possible growths solutions.
Sanjiv Goenka, Vice-Chairman, RPG Enterprises, on the other hand described the Indian consumer as one who is highly ambitious; it was therefore a challenge for retailers to meet changing consumer expectations.
However, in spite of the constraints and challenges, the panel concluded that India is a promising consumer market and offers a great opportunity for organised retail.
