India having been recently declared (once again) as the 3rd largest economy of the world by the World Bank, has all the reasons to be cheered by the corporate world and the Indian Economy. The strength of the Indian economy is its internal consumption thanks to a strong middle class, which is repeatedly saying ‘Yeh Dil Mange More ‘ as their disposable incomes goes up along with their aspirations for a better quality of living. With hundreds of satellite channels beaming new lifestyles and offering workable solutions 24 hours across the country, many sectors from food and fashion to travel, etc, are finding newer and better opportunities to meet consumer demands and thereby grow their business.
The country’s 250 million strong urban class is driving the Indian Economy. Leading suppliers of the world at the country’s doorstep to offer their latest innovations, so there is a huge opportunity to be explored and converted into big business . The best way forward for these manufacturers is to cater to this niche segment through Modern Retail outlets (and not through traditional retail channels) in view of this segment’s buying behaviour and expectations of a superior shopping experience.
Of India’s one billion plus population, around 40 percent is below 40 years of age – also amongst the youngest in all the countries. This group of consumers is looking for changes in all spheres of life. The recent elections have demonstrated that the young consumers want jobs, good roads and transport, 24 hour water and electricity supply, better education and sanitation, medical care, etc; in short, they are aspiring for a better quality of life.
FDI in retail has been a big agenda in the Indian political scenario, creating waves across the nation with contrasting statements by political leaders, many of whom have not really understood the intricacies of what FDI would entail. As a matter of fact, FDI will have to be welcomed due to the sheer size of investment required for creating the basic infrastructure for warehouses and cold storages that are required in the country.
The new generation of retailers has understood and recognised the changes happening in the market place with respect to consumer demand and shopping experience. These retailers are forward looking and modern in their approach to business, and are willing to invest in their stores so that they can offer a better shopping environment. With India’s leading Modern Retail player, Reliance Retail, announcing its first ever profit after 7 years of operations through 1200 + stores (under different formats) across the country, a lot of activity can be expected in the food and grocery retail sector by other players, which will give a further filip to the food industry.
In fact, renewed vigour and action is strongly visible on the marketing front by modern retail outlets, wherein promos, new product launches and sampling by consumers, product bundling and similar lucrative schemes are being offered to lure customers through full page ads, inserts and pull ups in national dailies. Many retailers are creating destination categories by giving focus to specific opportunities like Back to School, Eat Healthy, Live Healthy, Summer Hungama, Beat the Budget, Holiday Hungama, etc, with the help of brand owners and marketing teams.