AN ARTICLE BY KISHORE BIYANI

CEO, FUTURE GROUP

PRESNTED BY HARIKA.B
THE CHANGE… A SHIFT
FROM SHOPS TO BRANDS
FROM TALKIES TO
MULTIPLEX
FROM KIRANA TO MALLS…
Transformation
Transformation- Socialist to consumption led
economy.
Changing
Demographics
Income levels
Technology
Globalization
‘Republic of the young’- 890 mn < 40 yrs of
age
They value freedom, choices and have not
seen scarcity
Age of discovery
Change reflected in every sphere

From movies to cricket, from shops to malls

Young and vibrant India

Customers willing to experiment

From Panipat to Palakkad

Economic impact of modern
retail:
RETAIL share in the World GDP IS 27%
Organized retail ranges from 20 to 55%
India-Consumption driven economy
Macro trends in urbanization, income levels,
demographics,…etc
6-7% CAGR for the next 5 yrs
Nominal income will grow at a CAGR of 9-11%
Per capita income- $600 to $1200
In 2006-07 the economy grew at an
unprecedented rate of 9.4% with GDP- a
trillion dollars
URBAN-RURAL
RELATIONSHIP
It is ignored at policy making level.
Urban demand creates a shift from farm to
non-farm jobs
Urban consumption leads to 6.3 mn new non
farm jobs in rural areas and $91 bn in real
rural households in come over next decade.
From a survey it was found that- increase of
rs.100 in urban leads to an increase of Rs. 39
in rural households.
Rural economy accounts to almost more than
50% of GDP presently.
Challenges and
Opportunities
Indians demand ideas and solutions uniquely
Indian
The diversity and heterogeneity doesn’t allow
a standardized solution .
‘Mass of niches’
 Paradoxes like logic and emotion, capitalism
and and socialism coexist simultaneously.
It just signifies the openness and ability to
add dimensions without losing old ones.
Demand side innovation
Indian retailing sector attracts businesses
from within and outside the country.
AT Kearney Global Retail Development Index-
Most attractive emerging market
A fact that retailing is demand-led not supply-
led is ignored.
It is more a localized business than being
dominated by multi nationals.
French retailer Carrefour-largest international
network is present only in 29 countries.
Demand side innovation
Hypermarkets and discount chains dominate
retail scene in India.
Growing middle class is pushing the
development of specialty stores
Globalization and shopper’s tastes are one of
the strongest forces
Retail chains for fashion, food, office
stationery, health products are in demand.
Bringing new set of customers seems to be
the biggest challenge in India
Front end innovation, consumer credit
Trends for the years
ahead
India is expected to have 15 mn retail outlets
with highest density for retail..
China and Brazil took 10-15 yrs to gain the
share of organized retail
Inclusive and holistic role in building brands,
shaping desires and catalyzing consumption
Physical proximity to customers
Strong portfolio of brands and direct tying up
with small manufacturers for snacks, tea,
chocolates…etc
Establishing an emotional connect with
customers.
Trends…contd
Collaboration between retailers and consumer
good companies to share
Customer data and insights
Exclusive packaging and
Product formulations for specific retail chains
Joint promotion and marketing for brands.
Build credit products
Communication help in influencing desire
CONCLUSION
The convergence of three catalysts-
Brands
Consumer credit
Media
Within a retail store can bring about a paradigm
shift in modern retailing.
It is no longer about buying and selling, it’s
about catalyzing consumption that leads to
economic growth.
THANK YOU