How will Indian retail shape up in the next few quarters across different verticals? What will be the growth trends that will rule the retail industry? Sharing their thoughts on the sidelines of the recently held India Retail Forum 2013 at the Renaissance Hotel, Mumbai, retail industry experts said that despite challenges, the retail industry is optimistic about growth.
While sticking to the basics and adopting new technology will add to growth in the retail sector, the entry of international brands will further fuel the growth momentum.
Industry experts such as Abhishek Malhotra, VP & Partner, Booz & Company; A Palani Kumar, GM, Integrated Retail Services, Titan Industries; Manishi Sanwal, MD, DFS Galleria; Tanmay Kumar, Director, Business Development, Yum Restaurants; Sandeep Ahuja, MD, VLCC Healthcare Ltd.; Alok Tandon, CEO, INOX; Tushar Ved, CEO, Major Brands; and Rajesh Jain, Director & CEO, Lacoste India, shared their opinion about how the various retail verticals that they operate in will fare in the future.
Despite the headwinds, inflation, and challenging market situations, Malhotra felt it’s the right time to stick to basics and review the sentiment prevailing in the consulting sector. Even with the volatile gold prices, Palani feels Titan expects good growth in the next few quarters as gold rates are likely to stabilise after a quarter.
Luxury travel retail is all set to take off said Sanwal, as new and upcoming airports are an opportunity for a lot of new retail formats to emerge in the retail market. He confidently added that an entire new genre of travel retail is evolving in the country with travel retail expected to double in the country in less than three years.
Tanmay of Yum Restaurants revealed plans of Yum brands to take the number of restaurants to 1,000 by adding 150-200 stores every year. Ahuja from VLCC while recognising the prevailing uncertainty in some of the retail sectors, said that the wellness industry is still relatively insulated from market vagaries, and this why it has been growing for about 25 percent CAGR for the last few years. VLLC, said Ahuja, has been growing slightly ahead of that curve. The consumption story in India will continue to grow, and this in turn will help wellness players like VLCC to further strengthen their position.
In the entertainment industry, Tandon from INOX felt that if piracy is stopped, there will be 30-40 percent higher revenue generation. Banking on technology, the entertainment industry is set to further elevate the movie watching experience to yet another level. Fashion and lifestyle players can definitely look forward to the times ahead for growth. Ved from Major Brands predicts the entry of a lot of international brands in the fashion space by 2016-17 as India is still a 6 percent growth market. Ringing the ecommerce bell for all the players in its space, Major Brands eyes 20 percent of its retail business coming from e-retailing in the next 5-10 years.
Jain of Lacoste India, was hopeful about the fashion industry, and said that in India Lacoste as a brand expects to grow by 30-35 percent in the current fiscal, double its turnover and points of sales in the next three to four years. He mentioned that India plays a very important role in the overall Lacoste ecosystem, which makes him optimistic about future growth.
The overall sentiment among these leaders of the Indian retail industry was positive, and one can expect modest to impressive growth in many retail verticals.