After being hit hard in the last two years due to economic slowdown, India's retail sector is entering its "second innings" and is poised for good times again, according to industry experts.
"Retail is getting into its second innings. We believe that digital technology, new categories of consumption like frozen food, ready-to-eat breakfast, chocolates etc are going to drive the next round of growth."
"Things are changing and we are also changing as a society and that is leading to creation of new categories of consumption which would drive the retail growth," Future Group CEO Kishore Biyani said on margins of the annual retail summit organised by Retail Association of India (RAI) here today.
RAI Chairman B S Nagesh said for many of us who started in the 1990s, it is going to be second innings.
Nagesh, a retail industry veteran, said things would start looking positive once again. "The next five years are going to be fantastic," he said, adding FY1 2015 definitely looks like a better year (than last two years).
Hindustan Unilever CEO and Managing Director Sanjiv Mehta said e-tailing could also be one of the growth drivers for the sector. "E-tailing could be one of the big changes; it is the steam engine of retailing."
But Biyani said it will be an omni-channel model that will work better in India. "Technology will play a role but I see an omni-channel strategy emerging. Amazon is moving into physical retail and Walmart is moving into digital retail. It is an omni-channel strategy that is going to work."
Omni-channel requires developing IT systems and processes to support customers shopping in stores and online.
On the fashion category, Biyani said it has evolved and the industry would see more Rs 500-crore brands in the next few years.
"Fashion as a category has evolved. We are buying and consuming more fashion than we did earlier. Brands are playing an important role and they are off for a much bigger leap.
"We are going to see Rs 1,000-crore brands now. We are going to see at least ten Rs 500-crore brands in the next 3-4 years. Fashion, as an industry, is getting into shape."
"Last quarter wasn't as good as we expected but this quarter had been much better till now than what we expected. This quarter, we believe the same-store sales growth will be in double digit," Biyani said.
Nagesh said the same-store sales are likely to be in double digit in the next five years.
