What are the influencers and cataclysmic trend-setters that are going to fundamentally change the way retailers go about their businesses in the future? Chairman & CEO, Pepsico India Holdings, D Shivakumar, lists out the biggest disruptors in the retail world
33 Retail Reality Check in India
•Category Mix: food and grocery is still the largest segment with 60 percent market share, pharmacy and consumer electronics are the smallest with 3 percent share each
• In India’s FMCG sector, rural growth is higher than urban growth.
• The country has 9.6 million retail outlets, of which 6 million are in the rural area.
• Modern trade growth is improving with the entry of a lot of private labels.
• Private label growth is higher in many food categories.
22 Changes That Are Bound To Take Place in Retail In 5 Years
• Definition of shop, shopping will change. In the next 5 years shops will come to us.
• Big changes in four areas: consumer, technology, time, mix of channels.
• Specification of consumers: millennials, from nuclear families, shop little more often, eco-conscious consumers, and time starved.
• Millennial consumers will have many, many channels to talk about.
• Technology will be the new best friend of the consumers; we will be a digital society.
• E-retail is expected to reach $ 18 billion in 2018.
11 Key Things to Think About
• Retail industry needs new paradigm of value creation.
• Consumer is changing dramatically, so retail has to change fundamentally.
• Distraction of attraction will happen in the e-commerce world.
• Luxury retail will be far more accessible with the help of technology.