FICCI

The Fed­er­a­tion of In­dian Cham­bers of Com­merce and In­dus­try (FICCI) or­ga­nized the sec­ond edition of MASSMERIZE 2012, a re­tail and FMCG com­pa­nies’ plat­form on Au­gust 7, 2012, at The Leela in Mum­bai. The theme of this event was “A Tril­lion Dol­lar Con­sumer Ma

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Most of the speak­ers at the event spoke about the sym­bi­otic re­la­tion­ship be­tween re­tail­ers and FMCG com­pa­nies which spreads across the value chain – from as­sort­ment plan­ning, re­plen­ish­ment, space plan­ning and pro­mo­tion and thus it is im­per­a­tive for FMCG and re­tail com­pa­nies to col­lab­o­rate in this jour­ney. FMCG com­pa­nies have a lot to gain with the ad­vent of the multi-chan­nel retailing. The key point that emerged was that the depth of re­tail-FMCG col­lab­o­ra­tion will be one of the key suc­cess fac­tors for multi-chan­nel retailing to be suc­cess­ful. In his wel­come ad­dress, Dr. Ra­jiv Ku­mar, Sec­re­tary Gen­eral, FICCI, said: “There has been 20-30 per­cent nom­i­nal growth in the FMCG sec­tor and this in­dus­try is quite re­silient to the present eco­nomic sit­u­a­tion in the world. It is the last to de­cline and the last to go up in a ma­jor eco­nomic down­turn as this is an ex­pand­ing mar­ket seg­ment.” Sec­ond­ing his opin­ion, Ku­rush Grant, Ex­ec­u­tive Di­rec­tor, ITC, and FICCI FMCG Com­mit­tee Chair­man said that both the bot­tom as well as the top ends of this mar­ket grows dur­ing dif­fi­cult mo­ments like now and said that the GDP growth rate is not cor­re­lated with the over­all growth rate in this sec­tor. He said, “The im­prove­ments in the road­ways have helped FMCG in­dus­try grow ex­po­nen­tially in the last decade. The in­crease in road net­work will en­able the growth of this in­dus­try and the gap in the ru­ral and ur­ban In­dian re­tail will be bridged beau­ti­fully. I feel that the so­cial im­pact in the ru­ral sec­tor has also made a ma­jor dif­fer­ence.” The day­long dis­cus­sions cov­ered var­i­ous key is­sues con­cern­ing ar­eas such as ‘Part­ner­ship be­tween Re­tail & FMCG sec­tor’, ‘Grow­ing Con­sumerism’, ‘Tech­nolo­gies in Re­tail’, ‘Lever­ag­ing the dig­i­tal era’, ‘ef­fi­cient sup­ply chain’ and ‘Build­ing Con­sumer trust’ etc. The first dis­cus­sion, ‘Build­ing a Tril­lion Dol­lar Con­sump­tion Op­por­tu­nity: How To Take Con­sumerism to The Next Key Level’ was mod­er­ated by Shan­tanu Khosla, MD, P&G. The high pan­elists for this dis­cus­sion in­cluded Mr. Kurien, Mr. Grant, Sau­gata Gupta, CEO, Marico Ltd, Jamshed Da­boo, CEO, Tata Trent and Deven­dra Chawla, Pres­i­dent – Food and FMCG – Fu­ture Group. One com­mon ob­ser­va­tion ex­pressed by all the speak­ers was that con­sumers across yearn to buy the same prod­ucts. All the speak­ers felt that there’s a great op­por­tu­nity to tap even sup­pos­edly tier II mar­kets like Bi­har and Orissa as tier II and III cities have im­mense buy­ing po­ten­tial. The sec­ond dis­cus­sion of the day, ‘Cre­at­ing Suc­cess­ful Brands: Lessons From FMCG And Re­tail­ers’, had some more note­wor­thy guest speak­ers on the dais in­cludes the likes of Mrin­moy Mukher­jee, Di­rec­tor –Mar­ket­ing and Busi­ness De­vel­op­ment, Ray­mond Ltd, Rakshit Har­gave, MD, Nivea In­dia, Harki­rat Singh, MD, Wood­land In­dia, Wil­liam Pinck­ney, MD, Amway In­dia, and Kaushika Mad­ha­van, Part­ner, AT Kear­ney. This dis­cus­sion was ex­pertly mod­er­ated by Ra­jesh Sharma, Na­tional Head - Mar­ket De­vel­op­ment, Brand Cap­i­tal. This dis­cus­sion touched upon points like FMCG brand build­ing best prac­tices, take­aways for re­tail­ers and FMCG play­ers, re­tail­ers cus­tomer con­nect and build­ing ul­ti­mate con­sumer propo­si­tion. Mr. Singh of Wood­land shared that Wood­land stands for be­liev­ing in out­door ac­tiv­i­ties and na­ture and bring­ing in prod­ucts for con­sumers who The

MASSMERRIZE 2012 saw some of the best minds in the FMCFG and re­tail sec­tors brain storm and hit upon key trends and thought pro­cesses that could make a dif­fer­ence to the in­dus­try. At the event, it was ob­served that the In­dian re­tail is poised to be­come a 1.3 tril­lion dol­lar op­por­tu­nity by 2020 and mod­ern re­tail­ers in the past have tried to cap­i­tal­ize this op­por­tu­nity by in­creas­ing their store pres­ence across ma­jor cities in In­dia. On the other hand, FMCG com­pa­nies have tried to en­hance their dis­tri­bu­tion reach.

con­stantly go for trekking and fish­ing and other such ac­tiv­i­ties. He said, “Since our in­cep­tion in the late 1980s and early 1990s, our fo­cus has been on out­door ac­tiv­i­ties and our brand has been tar­get­ing the youth with these in­ter­ests. We have been pro­jected as a rough and tough brand and all our innovations and tech­nol­ogy has been in main­tain­ing this im­age for us. We stand for ad­ven­ture.” It was also felt that con­sis­tent brands man­age to make suc­cess­ful value chains. The prom­i­nent speak­ers also high­lighted that the rate at which con­sumers in towns are emerg­ing is im­mense and ev­ery­one agreed that as the at­ten­tion span of the con­sumers is a huge chal­lenge, there should be a dif­fer­ent way of reach­ing out to them. An­other topic which had a packed au­di­ence was ‘Retailing In the Dig­i­tal Era: Multi Chan­nel In­te­grated Com­merce’. This dis­cus­sion had Ra­jiv Joshi, VP - E-Com­merce, Gi­tan­jali Group, Vivek Mathur, VP - Cor­po­rate Plan­ning, Shop­pers Stop, and Anisha Singh, Founder, My­dala.com, as its em­i­nent speak­ers. This dis­cus­sion touched upon points such as chan­nel in­te­gra­tion, in­te­grat­ing on­line and phys­i­cal stores - what are some of the op­por­tu­ni­ties and chal­lenges, ex­plor­ing non-store chan­nels and so­cial com­merce for re­tail and FMCG and global best prac­tices. This ses­sion was mod­er­ated by Anil Ra­j­pal of TCS and the speak­ers unan­i­mously felt that the on­line and brick & mor­tar stores com­ple­ment each other. An­other en­light­en­ing dis­cus­sion­sof the day was Be­ing Re­spon­si­ble: How Com­pa­nies Could Gain The Con­sumers’ Trust which had some re­ally em­i­nent pan­elists on­stage from dif­fer­ent gen­res of the sec­tor. Arvind Sharma, Vice-Chair­man, Ad­ver­tis­ing Stan­dards Coun­cil of In­dia (ASCI), spoke on “re­spon­si­ble ad­ver­tis­ing, key to main­tain con­sumer trust” and en­light­ened the au­di­ences with his in­sights on the im­pli­ca­tions of mis­lead­ing ad­ver­tise­ments. In his de­light­ful pre­sen­ta­tion, “Brand in­fringe­ments: Time to say No to Fake”, Har­ish Bi­joor, Brand Ex­pert & CEO, Bi­joor Con­sults Inc, wiz­ened the au­di­ences on the dif­fer­ent kinds of brand in­fringe­ments. He said, “Brand in­fringe­ments are of many kinds. The out­right fakes, con­sist­ing of 4.6 per­cent, are the real fakes fol­lowed by clever fakes. These are du­pli­cate fakes. The fakes of the third kind are the so-called pass­ing off fakes which are in­tel­li­gent fakes. But the most un­par­don­able fakes are of the fourth kind which is called the cor­po­rate fakes.” The other two pan­elists in this dis­cus­sion were Dr. San­jee­van Ba­jaj, CEO, FICCI Qual­ity Forum, and Ra­jen­dra Do­briyal, Reg­u­la­tory Af­fairs Man­ager, HUL, who spoke on “Cre­at­ing Mar­ket­place Trust: Con­sumer Care vs Con­sumer Be­ware” and “Bio­di­ver­sity Reg­u­la­tion: Im­pact on FMCG In­dus­try and Way For­ward” re­spec­tively.

FMCG com­pa­nies have a lot to gain with the ad­vent of the mul­ti­chan­nel retailing. The key point that emerged was that the depth of re­tailFMCG col­lab­o­ra­tion will be one of the key suc­cess fac­tors for multi-chan­nel retailing to be suc­cess­ful

In the dis­cus­sion, ‘In­dian Re­tail: Path to Prof­itabil­ity’, the list of speak­ers con­sisted of HG Raghu­nath, COO, Ti­tan In­dus­tries Ltd, Anil Sri­vatsa - CEO, Co­Founder, Ra­diowalla Net­work Pvt. Ltd, and Gur­preet Wasi, Di­rec­tor- Mar­ket­ing, Im­ages Group. This ses­sion was ably con­trolled by Amitabh Mall, Part­ner, BCG. In this dis­cus­sion, the speak­ers brain­stormed on var­i­ous as­pects of the in­dus­try like growth or prof­itabil­ity and why is prof­itabil­ity still elud­ing re­tail­ers, learn­ing from prof­itable re­tail­ers, emerg­ing busi­ness mod­els and op­er­a­tional ef­fi­ciency. Mr. Raghu­nath kept the au­di­ences en­ter­tained dur­ing the en­tire ses­sion with his wise cracks and all the speak­ers agreed that the deeper con­sumer un­der­stand­ing and manag­ing con­sumer ex­pec­ta­tions is the key to a suc­cess­ful busi­ness ven­ture. ‘Tech­nolo­gies In Re­tail: Shift­ing Or­bit’, was the next dis­cus­sion and the key speak­ers here in­cluded Siju Narayanan, In­de­pen­dent Re­tail Tech­nol­ogy Ex­pert,. Me­he­riar Pa­tel, CTO & Head Ecom­merce, Globus, David Aramb­han, ACC Di­rec­tor, Gen­eral Re­tail & Travel, NCR, and Ve­neeth P, CIO, Hyper­city In­dia, who spoke on whether or not re­tail tech­nol­ogy has been evolv­ing with con­sumer or as per busi­ness re­quire­ments, and are re­tail­ers adopt­ing the tech­nol­ogy ad­e­quately? The group also dis­cussed on what are some of the key trends and pri­or­i­ties like cloud, mo­bil­ity, an­a­lyt­ics and this en­tire dis­cus­sion was mod­er­ated by Anu­pam­raj Gau­tam, En­gage­ment Lead, Global Con­sult­ing Prac­tices, TCS. Mr. Gau­tam started off the dis­cus­sion with his ob­ser­va­tion that re­tail is get­ting more and more com­plex with the chan­nel bound­aries get­ting more and more blurred and that the In­dian re­tail is on prof­itabil­ity ex­pense to which Mr. Ve­neeth P re­sponded by say­ing, “We need to un­der­stand con­sumer sen­ti­ments which can be en­abled by tech­nol­ogy and we need to im­prove and im­ple­ment high tech­nol­ogy.” Well there was con­sen­sus that re­tail­ers should look at the re­tail busi­ness first and tech­nol­ogy would fol­low suit as touch points are vi­tal for con­sumer en­gage­ments. Mr. Ve­neeth also felt that it is ex­tremely es­sen­tial to em­power the floor as­so­ci­ates to help them sell eas­ier as to­day the con­sumers are well in­formed. He said, “Do not cut on train­ing for the busi­ness tech­nol­ogy to suc­ceed. You have to con­tin­u­ously train peo­ple for the suc­cess of tech­no­log­i­cal projects.” Mr. David opined that there was a need of bal­ance be­tween tech­nol­ogy and busi­ness be­cause tech­nol­ogy fail­ures take place wher­ever it’s im­ple­mented just for the sake of it. Mr. Siju con­cluded by say­ing that he still be­lieves in the 4Ps and felt that the fun­da­men­tals of re­tail haven’t changed. “The re­tail­ers are forced to think what more to pro­vide to the con­sumers. It’s not as com­pli­cated as it seems to be and the ba­sis of busi­ness re­mains sim­ple keep­ing which tech­nol­ogy will go with it. Ev­ery re­tailer needs to un­der­stand con­sumers much bet­ter.” Well, the ses­sion cer­tainly left one with a lot to chew on

L to R - Mr. Ku­rush Grant, Ex­ec­u­tive Di­rec­tor ITC Chair­man FICCI FMCG com­mit­tee, Dr. Ra­jiv Ku­mar Sec­re­tary Gen­eral , FICCI, Mr. Bi­jou Kurien, Pres­i­dent and CEO of Re­liance Re­tail, Chair­man FICCI Re­tail Com­mit­tee, Mr. Anil Ra­j­pal Head Re­tail & Con­sumer...

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