Re­tail and FMCG in­dus­try eyes eCom­merce seg­ment in a big way

Ad­dress­ing the re­cently held con­fer­ence called ‘Mass­mer­ize 2013’, or­gan­ised by FICCI with the sup­port of Min­istry of Con­sumer Af­fairs, Food & Pub­lic Dis­tri­bu­tion, Govern­ment of In­dia, K V Thomas, Min­is­ter of Con­sumer Af­fairs, Food & Pub­lic Dis­tri­bu­tion, u

Cargo Talk - - Industry Meet -

Mass­mer­ize 2013 brought to­gether the lead­ing play­ers from the re­tail and FMCG in­dus­try and the govern­ment. The con­fer­ence dis­cussed emerg­ing trends and busi­ness im­per­a­tives. The theme of the con­fer­ence this year was ‘Con­sumerism in dig­i­tal era’, which high­lighted the tran­si­tions ob­served in the in­dus­try with advent of tech­nol­ogy and new in­no­va­tions.

“I would ex­pect In­dian in­dus­try to live up to the ex­pec­ta­tions of the peo­ple who look up to them for goods and ser­vices at a price that they can af­ford. The con­sumer be­hav­ior is ex­pe­ri­enc­ing con­sumer tech­nolo­gies,” Thomas main­tained.

Ear­lier, Naina Lal Kid­wai, Pres­i­dent of FICCI, said, “In­creas­ing in­comes, grow­ing ur­ban­i­sa­tion, dig­i­tal­i­sa­tion and ex­po­sure to global trends are giv­ing rise to an evolved con­sumer base and meet­ing con­sumer as­pi­ra­tions is now the key fo­cus of the In­dus­try. In­dia is slowly pick­ing up in the trend of be­com­ing dig­i­tally ac­tive in the ways of com­mu­ni­ca­tions to con­sumers, on ac­count of in­creas­ingly grow­ing in­ter­net pen­e­tra­tion in both ur­ban and ru­ral ar­eas.”

Ac­cord­ing to Kid­wai, dig­i­tally ac­tive con­sumers have em­braced the In­ter­net, tele­com, me­dia, and so­cial space, chang­ing the way they com­mu­ni­cate, trans­act, and make pur­chase de­ci­sions, thus giv­ing rise to dig­i­tal con­sumerism. Re­tail & FMCG com­pa­nies are cap­i­tal­is­ing on th­ese chang­ing trends. “Across the world, the re­tail in­dus­try is at the cen­ter of a ma­jor shift in the way con­sumers shop and in­ter­act with their retailers. Against the tra­di­tional way of cus­tomers ‘go­ing to the store’, the store is now com­ing to the cus­tomer. Em­bed­ded sys­tems are chang­ing ev­ery point in a re­tailer’s busi­ness, from sourc­ing of goods to dis­tri­bu­tion to dis­play,” she added.

“In­dian mar­ket is enor­mous and to cater to dif­fer­ent con­sumers it needs a va­ri­ety of re­tail mod­els. With the open­ing up of re­tail mar­ket both in sin­gle brand and multi brand, greater in­ter­ests has been gen­er­ated among in­ter­na­tional play­ers to en­ter the In­dian re­tail mar­ket,” added Bi­jou Kurien, Chair­man, FICCI Re­tail Com­mit­tee. Sun­deep Malhotra, Co-Chair, FICCI Re­tail Com­mit­tee & Founder & CEO, HomeShop18 and Dr. Arbind Prasad, Di­rec­tor Gen­eral, FICCI, also ad­dressed the ses­sion.

FIccI-tcs pa­per on Mul­ti­chan­nel re­tail­ing

At this con­fer­ence FICCI in as­so­ci­a­tion with TCS re­leased a white pa­per on ‘Adapt­ing to the Mul­ti­chan­nel Cus­tomer - A Roadmap for In­te­grated Mul­ti­chan­nel Re­tail­ing’.

The FICCI-TCS pa­per out­lined the roadmap for IMCR, it cov­ered the cur­rent state of multi-chan­nel re­tail - glob­ally as well as in In­dia. Global con­sumer in­di­ca­tors re­veal that multi-chan­nel con­sumers (con­sumers who shop across mul­ti­ple chan­nels, in­clud­ing web, mo­bile, off­line store), spend more on brands than sin­gle chan­nel shop­pers.

Eval­u­at­ing a lead­ing re­tailer’s on­line and store ini­tia­tives in In­dia (rep­re­sent­ing the APAC re­gion), the re­search in­di­cated that num­ber of vis­i­tors to their on­line chan­nel had grown 1.57 times, whereas there was only a 9 per cent in­crease in store foot­falls.

The pa­per es­ti­mates that by 2018, the num­ber of vis­i­tors to the re­tail brands’ on­line chan­nel will far ex­ceed the num­ber of its store vis­i­tors. It is there­fore im­por­tant that retailers fo­cus on be­com­ing a truly in­te­grated multi-chan­nel re­tail en­tity.

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