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Sunday, May 15, 2016

Retail India 2020 - What the industry insiders expect it to be?

Retail India 2020 - What the industry insiders expect it to be?
by Mr. Anuj Puri JLL India
The JLL Retail Sentiment Survey 2016 carried out in 1Q16 has thrown up interesting insights on the future of retail industry in India.
To gauge the current industry sentiment and future outlook, 200 retailers and retail developers across India were chosen for this survey. Read on to know how retail in 2020 will be, according to them:
In the next five years, growth of retail in India will be propelled by…
On one hand, India’s young demographic, increasing salaries, awareness and aspirations will help in growth of international brands.
On the other hand, entrepreneurial aspirations, progressive policies, increasing trust, quality and competitiveness of domestic brands will help in growth of Indian brands.
Both domestic and international brands are primed to grow at a matching pace in the country.

Will tier-II and tier-III cities be the major contributors of retail space in India in the next 5-10 years?

Almost nine out of every 10 respondents felt that growth of physical retail will come from tier-II and tier-III cities.
Availability of land at cheaper rates in combination with increased demand for branded products – thanks to rising incomes, awareness and aspiration levels in tier-II and tier-III cities will propel retail growth in the next 5-10 years.

Will the role of physical stores become more experience-based than PoS-based in the future?

Four out of every five respondents agreed that the role of physical retail will undergo a change.

Pitted against the convenience factor of eCommerce, retailers would have to enhance in-store customer experience to attract customers to walk into their stores. Interactive digital displays, touchscreens, digital storefronts, magic mirrors, virtual dressing rooms, in-store kiosks, etc., are some technologies currently used by retailers to enhance customer experience.

Will high-streets see status quo or evolve with the changing retail and consumer dynamics?

Almost nine out of ten respondents felt that high-streets will evolve to match the changing retail and consumer dynamics.

A study carried out by JLL across 24 high-streets of the country had conclusively showcased how high-streets re-emerged on the retail radar after reinventing their character completely.

Can you conclusively say that retail real estate uptake has reduced because of growth of eCommerce?

Rationalisation of location and profitability of stores is becoming extremely important.

While some believe that the growth of physical stores has been stunted by eCommerce, the phenomenon is restricted to only specific categories. Interestingly, many eCommerce firms are also expanding their footprint in the offline space.

What is the biggest change expected in the Indian shopping centre landscape with the advent of omni-channel retailing?

Interactive digital displays, touchscreens, digital storefronts, magic mirrors, virtual dressing rooms, in-store kiosks, etc., will be increasingly used by retailers to enhance customer experience.

Digital and online mediums are expected to dominate the road ahead with integration of digital technology in the business by developers.

Do you foresee more online retailers opening physical stores?

Physical stores are an integral part of a retailer’s omni-channel strategy through more personalised shopping experiences.

Retailers are discovering that if they want to take their brand to the next level, they need to exist in more than just the digital space.

In the next five years, omni-channel retail will…

Eat up the share of physical retail, according to 50% of the respondents
Lead to more footfalls in malls, according to the remaining 50% of respondents

Online retailers can have a more meaningful engagement with shoppers at their physical stores as well as expose the technology-challenged set of shoppers to a variety of merchandise.
About the author..
Mr. Anuj Puri, Chairman & Country Head, JLL India


Retail India 2020 - What the industry insiders expect it to be? Reviewed by S Chitra on May 15, 2016 Rating: 5 Retail India 2020 - What the industry insiders expect it to be? by Mr. Anuj Puri JLL India The JLL Retail Sentiment Survey 2016 carried...

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