The Ever-Evolving Indian Retail Landscape
On March 24, in New Delhi, BW Retail World hosted the Building Blocks of Retail Summit 2023, which offered invaluable insights on the current scenario in the retail sector. The Summit saw retailers, manufacturers, suppliers, and service providers talk about the challenges involved in creating a successful retail brand; legacy retail, e-commerce and the D2C market in India; how emerging technologies are reshaping the shopping experience; the synergy between online & offline retail channels; navigating the warehousing, supply chain & logistics landscape; building resilient brands; enhancing brand marketing and consumer experience; and the emerging trends in the retail industry.
Opportunities and challenges
According to Kazem Samandari, Executive Chairman of L’Opera, “India's expanding market offers opportunities for various types of industrial activities and services. However, one of the major challenges for the brick-and-mortar model in India is the non-availability of adequate retail space to match the growing demand, especially when compared to more organised markets.”
E-commerce and the D2C market
Salil Kappoor, Business Unit Head - Appliances, Orient Electric stated that in the B2C business, retail is the channel that connects businesses with consumers, and it acts as the pipeline. He highlighted the evolution of retail, from mom and pop stores to large format stores, and how technology has played a role in disintermediating brick and mortar stores. Additionally, he mentioned the emergence of D2C as another layer on top of retail.
Kappoor further pointed out the latest development in this area, which is ONDC. He described it as the first globally recognised initiative made in India for the world, and believes that it will close the loop of
mom and pop stores connecting directly with consumers. “It is the backbone of connecting businesses to consumers in the B2C space, and there are a lot of exciting developments in this area,” he added.
Talking about the D2C market, Ankit Rungta, Founder & Director, Story@Home, said, “With an expected CAGR of 34.5 per cent during the 2022-2027 period, the total addressable D2C market in India is forecast to hit US$100 billion by 2025.”
Commenting on the online mode, Shireesh Joshi, Chief Business Officer at ONDC, said, “Digital scalability is the key advantage of retail as it is the face of the business. While Samayesh Khanna, Co-founder of Beanly, said, “The amount of data that we collect by interacting with our consumers directly through the online medium is humongous.”
Rajesh Dewani, Managing Director of Avit Digital, emphasised on the pivotal role of a physical store as far as experiencing a product is concerned. He opined that the two main challenges faced by the retail sector are high rental costs and shortage of skilled employees.
Talking about the various market choices available for brands, Siddhant Rana, Market Development Head, India and South Asia, Shopify, said, “It is important for brands to be visible at touch points that are relevant to them. You can start with an online store and then go on to having a physical store”.
Emerging technologies
Kriti Aggarwal, Co-founder, StoreHippo & Mystore highlighted the fact that it is very important for retailers to reach out to consumers via omnichannels and utilise technology such as Chatbots to answer customer queries. While Raghunandan Saraf, CEO, Saraf Furniture opined that utilising big data for micro-targeting of segments can enable retailers to reach out to the target audience.”
Synergy between online and offline retail channels
The traditional ‘brick-and-mortar’ model of business is in vogue again. However, businesses must look carefully at certain factors. “Presently, the trend shows higher growth in the online mode as compared to the offline mode,” according to Anupam Bansal, Director - Retail, Liberty Shoes.
Rashmi Shukla, Business Head & Senior Vice President at Jaypore, Aditya Birla Group, stressed on the importance of having an online presence in the post-pandemic era. She further added that social media algorithms are changing rapidly and it has become challenging to keep pace with them. Therefore, businesses should focus on luring customers organically.
Emphasising on the importance of digital marketing in attracting potential customers and converting them into buyers, Vandana Kohli, Founder & Director of Tulip Comfort Wear, said that the restless nature of online consumers is a challenge brought about by the digital world. She added that customers are constantly on the lookout for the next new thing.
Streamlining distribution
Abhinav Garg, General Manager – Food and Beverage, The New Shop, pointed out that due to commitments made towards exporting products, certain products are not available in the country.
“The supply chain problem, particularly in semiconductors, is affecting all of us post-Covid-19. The consumption of electronics, especially screens, has decreased as people were not aware of
semiconductors previously. However, whenever a screen is connected, microchips are involved, and this has caused a spike and widespread disruption. Consequently, sales have increased by 200 per cent worldwide,” said Avneet Singh Marwah, Director & CEO, Super Plastronics.
Building resilient brands
Sumant Kakaria, Founder and CEO of Solethreads, emphasised that a brand's success depends on having resilient people in your organisation. He talked about the importance of an end goal and a shared understanding of the larger picture among co-founders.
Akash Srivastava, AVP and National Head – Business Development at Jubilant FoodWorks, highlighted the significance of collecting and tracking important consumer data throughout a product’s life cycle. This enables a better understanding of customers' needs and the development of a stronger ecosystem.
Harini Sivakumar, Founder & CEO at Earth Rhythm, stressed on the need to monetise one's passion and to sustain it as a business venture. She advised brands to prioritise honesty and quality in every aspect of customer service in order to foster a close relationship with their audience.
Mansi Gupta, Co-founder & CEO of TJORI, stressed on the importance of staying relevant in a changing environment. She shared how her brand remained relevant during the pandemic by providing products that people needed at the time.
Enhancing consumer experience
Kedar Ravangave, Head of Brand & Category Marketing at Amazon India, identified three strategies for building and operating a successful business. The first is to be honest and maintain integrity as these are two factors that build trust with customers. Second, the quality of the product is extremely important. Third, consistency in messaging and communicating with the customer is crucial.
Divij Bajaj, Co-founder & CEO of Power Gummies, stated that he tailors his marketing strategy to meet the demands of customers and stays attuned to market trends. "One can capture a large market share by keeping an eye on the trends," he added.
Bharat Bansal, Co-founder & CEO of Nirmalaya, stressed on the importance of creating a financially sustainable business model when focusing on recycling floral waste.
Sunil Chauhan, Founder, Fab Cafe Foods & Chefs United Foods, shared his approach towards operating under the umbrella of a big brand like Fab India. He explained that the Fabcafe menu reflects the essence of Fab India and focuses on promoting healthy eating and conscious consumption among customers.
Emerging trends
According to recent research by LS Retail, speed and convenience are key factors for a high-quality online shopping experience, as customers value the ability to purchase quickly and easily, and are becoming increasingly less patient when it comes to waiting for deliveries. However, Vibhor Jain, COO & President of Network Governance, ONDC, suggests that value remains the primary reason for purchasing any product.
Jain has identified several trends that will shape the future of commerce in India, including the emergence of digital public infrastructure, the evolution of connectivity driven by 5G rollout, robust private sector investments, the rise of vernacular platforms, and the democratisation of data.
He also believes that new models of commerce will emerge, including live commerce, social commerce, and the metaverse. The unorganised sector will experience a significant shift, with demand being driven by small towns and rural areas. Additionally, significant advances in technology and data, personalisation, and artificial intelligence will increase competition across various formats, including e-commerce, kirana stores, and modern trade.
