Shop for answers
The Hindu : The retail boom in India is a reality — the escalating number of malls and the rise in the number of Indian and foreign brands opening shops are definite pointers. But has that meant more profit, has this increased the customer base, or is there a case of mismatch of supply and demand? At the just-concluded two-day India Fashion Forum in Mumbai, the captains of the retail industry discussed these issues and the challenges the sector is facing, in the presence of a corporate audience that was as eager to learn as to ask questions.The largely untapped Indian consumer base has become the latest target of foreign retailers. “We believe in the country and the potential it has to grow,” said Troels Holch Povlsen, Chairman, Best Seller. The group’s men’s apparel brand Jack & Jones will hit the Indian market this year.However, B. Nagesh, Managing Director, Shopper’s Stop, commented at the CEO’s Conclave if people’s spending power has increased, and the market too is growing, why are many retail organisations not registering profits?Plenty of reasons were offered. For a country that is as diverse as India, it is difficult for a marketer to have one common strategy. And concepts that click with people abroad are not necessarily applicable to Indians as well. Said Aaron Boey, Managing Director, Levi’s (Asia Pacific), “Indians don’t like fashion to be thrust upon them.”Kishore Biyani, CEO, Future Group, seconded this thought. “Designers look westwards for inspiration but the need is to look inwards. We have to take into account the aspiration of the small town.” Numbers only substantiated the contention. Ireena Vittal, Head, Retail Practice, Mc Kinsey & Co, pointed out how when itcame to women’s wear,60 per cent of the market share was stillwith the sari, 38 per cent women still bought churidar or salwar-kameez, while western clothesheld only two per cent of the share.This pointed to the issue…More
