India’s robust macro and microeconomic fundamentals such as its GDP growth, higher income levels, increasing personal consumption, etc will accelerate the growth of the retail sector, according to a joint thought leadership study by PricewaterhouseCoopers (PwC) and Retailers Association of India (RAI) titled “Strategic Issues for Retail CEOs”. The study looks at top-of-mind issues affecting retail CEOs.

NV Sivakumar, Leader, Consumer and Industrial Products, PricewaterhouseCoopers said, “Retail CEOs' top-of-mind issues pertain to supply chain and operations, strategy and innovation, private labels, tax issues, workforce management, and sustainability and green marketing. Our study addresses the current thinking and practices on these issues."

The study, based on interviews with 20 CEOs and MDs at leading Indian and global organizations, secondary research and internal insights, explores six discussion themes mentioned below and presents relevant case studies for each of these themes:

-- Supply chain and operations: Improving supply chains and operations will enable retailers in India to enhance competitiveness and successfully deploy growth initiatives.   

-- Strategy and innovation: Strategy and innovation is a holistic concept involving the launch of new products, the creation of unique marketing strategies, the development of new distribution channels, the customization of products, etc.  Retailers are now embarking on innovative practices such as creating India-inspired product lines, offering private label products and selecting, and accordingly, customizing the global product assortment for the Indian market.        

-- Private label offerings: Retailers are launching a range of private labels products to meet the demands of value conscious consumers, to develop product portfolios and to improve margins in an environment where efficiency and competitiveness are imperative.              

-- Tax issues: Goods and Service Tax (GST) is likely to benefit retailers. The nation-wide implementation of a dual GST signals the next generation of tax reforms designed to address the barriers to trade and expand the tax base.

-- Workforce management: Workforce management practices are in the nascent stages of being developed in the Indian retail sector. Hiring in the retail sector is projected to increase in the future due to several new global and domestic entrants and the range of formats they plan to offer. Growth in the Indian retail sector and the corresponding demand for talent has highlighted the need for effective workforce management systems. 

-- Sustainability and green marketing: Sustainability and green marketing initiatives will need to be addressed, as influences (such as government mandates, consumer awareness, competitor actions, etc.) converge and heighten. Green marketing and other sustainability practices are in the initial stages of being incorporated into modern trade. 

Kumar Rajagopalan, Chief Executive Officer, RAI said, “While every top business house in India has recognized retail as the big sector to invest in and be a big player in this sector, retail CEOs are working with great enthusiasm to meet the exacting detail requirements of this challenging business. Opportunities are apparent; however the pitfalls are just as possible.”

Rajagopalan further added, “In a business wherein the competitive landscape changes every day and customer preferences are re-defined often, retailers have to keep perfecting their capabilities around place, people, price, product, communication, supply chain, vendors and processes. Every CEO knows that there are lots of areas for strategic investments and many are making active trade-offs to achieve supremacy on some of the aspects of retail business. Our study shows the various aspects that retailers are trying to master and win in the market place.”

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