The Future Of Indian Retail: 7 Interesting Highlights From Industry Leaders!
Some of the most experienced and veteran industry leaders have come together to share the trends of the industry.
Retail is one of the fastest growing industries in India and contributes massively to the Indian growth story. By 2020, the industry is expected to reach the $1.1 trillion mark, and right now contributes 10% to the country’s overall GDP. The industries growing at a rate of 15%, year on year.
Right now, in Mumbai, Retailers Association of India’s (RAI) is organizing Retail Leadership Summit (RLS), which is hailed as one of the largest and most powerful conferences of the retail industry.
Some of the most experienced and veteran industry leaders have come together, sharing the trends of the industry which will shape the industry in the coming months.
Kumar Rajagopalan, CEO, Retailers Association of India said,
“The Retail Leadership Summit has been created to ensure that retail leaders across the country can come in and discuss matters that are relevant to retail at an industry-level.”
Here are 7 powerful insights, which retail entrepreneurs and observers should be aware of:
- 1 RAI-Boston Consulting Group Report: Value Creation In Retail For Shareholder
- 2 RAI-Deloitte Report: Millennials Hold The Key
- 3 Capgemini-RAI Report: Voice Assistants Will Revolutionize Commerce
- 4 Deloitte – RAI Report: Anti-profiteering Laws Under GST
In their report, Boston Consulting Group and RAI said that Total Shareholder Return or TSR in retail has beaten market average, by a long run. As per the report, retail companies in India delivered TSR for 17%, as compared to 11% TSR delivered by the market in average.
Within overall consumer segment, retail was positioned at #2 position with 17%, only after consumer durables which had 22% share.
Over a 10-year and 5-year period, India retail firms have outperformed global retail companies. Over a 5-year period, Indian retail firms grew at 26% rate, compared to 16% by global retail firms. Over the 10-year period, Indian retailers grew at 17% rate, compared to 13% rate of global retail firms.
RAI-Deloitte Report: Millennials Hold The Key
As per an interesting report by Deloitte and RAI, millennials hold the key to retail growth, not only in India but all over Asia and globally as well. Millennials, also called the Y-generation, are those who are born in the early 80s to early 2000s.
The report says that Asian millennials’ combined disposable income is estimated at staggering $6 trillion, and in India, 34% of the overall population is millennials. With rising wages, and more inclination towards gadgets, travel, luxury goods, they will be the biggest spenders for the overall retail industry.
The report says,
“As millennials play an increasingly important role in driving the consumer markets, segments such as food service, entertainment, apparel and accessories, health and beauty including personal grooming, etc. are particularly expected to derive benefits.”
The report identifies 4 major factors, which can influence a millennial towards making a purchase:
- Branding and Authenticity
- Availability of product information on mobile
- Personalised marketing is the key
- Social Media and optimal usage of content
Capgemini-RAI Report: Voice Assistants Will Revolutionize Commerce
Capgemini along with RAI has created a report on the digitalisation of retail consumer behaviour and has discovered that voice assistants are the new future of retail.
As per the report, 24% of all consumers are right now using Voice Assistant to search products, and in the next three years, this will rise to 40%.
In fact, 33% of all consumers – be it retail, banking or travel, will use voice assistance for discovering their products, ordering it, checking their banking operations and more.
The massive penetration of smartphones in daily lives has triggered this voice revolution in the retail sector. As per Capgemini report, 81% of the retail consumers used smartphones in India, and 51% of them have ordered either searched or ordered a product using voice command.
Siri, Cortana and Google Assistant have been described as the top three voice assistants for retail users in India.
Deloitte – RAI Report: Anti-profiteering Laws Under GST
Deloitte and RAI have prepared a report, wherein they have asked some serious questions regarding the implementation of the law, and what needs to be done.
The report states that supply chain in retail is long, and sometimes, products are in the pipeline for more than a month. Hence, anti-profiteering laws under GST are not updated to match this vital business process. Besides, laws under Legal Metrology Act and Rules are not consumer friendly, and even if a brand wants to give a better deal, the laws prohibit them from doing so.
The report urges the Govt. to
- Articulate and evidence the methodology adopted in calculating and deploying the GST benefit
- Maintaining relevant commercial documentation updated to reflect GST benefits, particularly service contracts and pricing schedules
- Other documentation to be maintained as adequate to support and evidence compliance with the law.
Do let us know your views and opinions on the retail insights, and how retail is shaping up for 2018, by commenting right here!