Ken Nisch

Chair­man – JGA, Southfield MI USA

VM&RD - - WHAT'S IN STORE? INTERNATIONAL DESIGNER -

In Ret­ro­spect: 2012

The main change was that the whip­saw leg­is­la­tion re­lated to in­ter­na­tional re­tail­ers fi­nally ap­pears to be re­solved. The res­o­lu­tion stick­ing is unique in it­self, as it seems to have been ap­proved, dis­ap­proved, or ap­proved many times over the last few years.

Ar­rival of FDI

With the FDI be­com­ing a re­al­ity, In­dian re­tail­ers are look­ing to find ways to max­i­mize their way out of re­tail or in other words, de­ter­min­ing how to make their phys­i­cal as­sets more ap­peal­ing in a po­ten­tial pur­chase sce­nario, or guard to de­fend their ter­ri­tory against in­com­ing re­tail­ers by in­ter­na­tion­al­iz­ing their busi­ness. In par­tic­u­lar, this re­in­force­ment of their busi­ness po­si­tion in sec­ond and third tier cities can help them win in places where the in­ter­na­tional re­tail­ers most likely will not, and/or will, take a long time to en­ter. I as­sume the “un­or­ga­nized” mar­ket will also ben­e­fit as it will have a much bet­ter rea­son for be­ing a strong alternative to or­ga­nized re­tail, not just a habit -- with ar­eas in terms of lo­cal prod­uct, fresh prod­uct and unique per­ish­ables. It will help im­prove stan­dards in the tra­di­tional re­tail mar­ket­places, with the or­ga­nized re­tail­ers fo­cus­ing on a dif­fer­ent type of value-add. By that I mean the or­ga­nized re­tail­ers har­ness­ing their strength in ar­eas such as lo­gis­tics, prod­uct devel­op­ment, prod­uct in­no­va­tion as their value-add, ver­sus the tra­di­tional lo­cal re­tail­ers who might fo­cus on a re­tailer-toin­di­vid­ual credit, lo­cal­iza­tion of mar­ket goods, and per­sonal ser­vice.

Look­ing Ahead: 2013

I be­lieve in the end, the in­ter­na­tional play­ers will “teach” the sup­ply chain how to de­liver, though some will fail, oth­ers will suc­ceed. And those that suc­ceed will take those lessons and ap­ply them, not only to the work that they do with in­ter­na­tional re­tail­ers, but to the domestic re­tail­ers as well.

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