'We See Strong Potential To Grow And Deliver': Smollan
When did Smollan enter India?
In India, the company commenced operations in 2008 with around 1000 people in Modern Trade. Demonstrating explosive growth over the last decade, Smollan stands at over 24,000 people today, fueling growth for leading, as well as niche brands, in retail and technology in general and modern retail and B2B, B2C and eCommerce spaces. They work towards providing brilliant go-to-market, field sales, retail execution, activation & shopper & technology leadership across an extensive range of categories.
How big is the market internationally and in India for retail technology and e-commerce?
India is the fourth largest retail market in the world with a total of $810 billion market size. It is one of the largest consumer economies globally. Additionally, the Indian E-commerce market is also estimated to reach $200 billion by 2026, as highlighted in a report by Bain & Company. Overall, the market is expected to evolve quickly into a sizable e-retail component. After the US and China, Indian consumers stand at the third-largest online shopper base with a population of 140 million online consumers, offering a massive opportunity in this segment. (E-Commerce Industry Report: IBEF)
What are the growth levers for the business in India?
India's retail industry has emerged as one of the most dynamic and fast-paced, with the exponential growth of existing entities and the entry of several key players across formats and channels, physical and digital. With deep domain knowledge, global experience, people focus and cutting-edge technology prowess, we see strong potential to grow and deliver to client brands in the Indian retail ecosystem.
Which are the crucial segments you are catering to in terms of clients/product categories in India?
With the retail sector evolving to cater to the needs of numerous brands and product categories, the need for hyper-personalized customer experience is becoming increasingly critical. Having served for over a decade in the Indian market (metros and rural areas alike), we have the potential to replicate our business offerings and geographies across brand categories present in the retail space. The categories range from laundry, personal care, health & beauty, food & beverage, and oral care to lubricants.
Which are the major clients for Smollan in India, and what kind of impact has it delivered to the clients so far?
Our partnerships with client brands, with our deep expertise in retail and technology across sectors and categories, have enabled our clients to attain profitable and sustainable growth through enhanced delivery and leadership throughout the retail value chain. To name a few, we work with brands like Unilever, PepsiCo, and Mondelez, amongst others in the Indian market.
Any major shifts that happened in the business as an impact of the recent disruptions?
We see business as usual post-pandemic, but there is a high potential shift in brand strategies from global to hyper-local. A significant chunk of disruption is digitization, which has led to newer opportunities and ways of connecting with the customer and driving personalized solutions. This has resulted in brands consciously re-constructing their supply/value chain to cater to their remotest customers. Customers are benchmarking their digital expectations against the best-in-class digital experience they are experiencing in their accelerated digital journey. Brands, especially the traditional ones, have to learn rapidly to improve their user customer experience at each touch point.
Can you share some details on the company's y-o-y growth in India and how the pandemic impacted the business?
We have had a promising year of business and will continue with a positive outlook. The pandemic affected every industry sector significantly. The demand for essentials, healthcare, FMCG products and consumer buying behaviour changed dramatically during this phase. We focused our organizational expertise on servicing the brands, helping them tide over the crisis, and creating a platform for growth.
How do you see the next 5 to 10 years for Smollan in India? Where will the growth come from?
We look forward to expanding in allied categories and are confident of growth in the coming years. The potential in Indian markets is enormous and expected to grow to $1000 (in billions) by 2025. Retail business in India has always seen demand, and 78 per cent of potential drivers of this growth are in food & groceries, 15 per cent in lifestyle, 5 per cent in electronics and 12 per cent in others. Many global and local brands have acknowledged this potential, and we see a tremendous opportunity to expand our services in the Indian retail sector. (IBEF Report on Indian Retail Market)
What is the importance of India as a market for Smollan?
Per IBEF, India is the world's fifth-largest global destination in the retail space. Kearney Research pegs India's retail industry growth potential at a slower pace of 9 per cent from 2019-2030 - $779 billion in 2019 to $1.4 trillion by 2026 and more than $1.8 trillion by 2030. This projected growth of the country offers a vast potential for Smollan to continuously innovate to deliver efficient and effective strategies for brands to attain profitable and sustainable development.
Is Smollan's business in India different from other countries? If yes, what are the differentiated offerings for India?
While India’s culture of business and operating procedures vary from other markets in the world, Smollan’s go-to-market and platform offerings are robust to help our Indian customers just as well as our global customers.
How has the Indian experience been different from the other countries that Smollan operates in?
India is an emerging market for Smollan, and our focus is to maximize our reach within the retail ecosystem. Indian retail is serving one of the biggest captive audiences in the world, and the concept of scale is vastly different. The opportunities in India are immense due to the variety of its cultures, trends and demographics. This requires the retailers to be omnipresent and cater to multiple shopper expectations, allowing us to create healthy and enriching customer satisfaction. Also, Indian consumers have more disposable income now, leading to a surge in purchasing branded products and customized goods and services that contribute to a health-conscious lifestyle.
