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The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.

Indian Retail Industry has immense potential as India has the second largest population with affluent middle class, rapid urbanisation and solid growth of internet.

Market Size

India’s retail market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10 per cent to US$ 1.6 trillion by 2026 from US$ 641 billion in 2016. While the overall retail market is expected to grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent#. Indian retail market is divided into “Organised Retail Market” which is valued at $60 billion which is only 9 per cent of the total sector and “Unorganised Retail Market constitutes the rest 91 per cent of the sector.

India’s Business to Business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020.## Online retail is expected to be at par with the physical stores in the next five years.

India’s direct selling industry is expected to reach a size of Rs 23,654 crore (US$ 3.54 billion) by FY2019-20, as per a joint report by India Direct Selling Association (IDSA) and PHD.

Indian exports of locally made retail and lifestyle products grew at a CAGR of 10 per cent from 2013 to 2016.

The size of modern retail in India is expected to double to Rs 171,800 crore (US$ 25.7 billion) from Rs 87,100 crore (US$ 13 billion) in three years driven by omni-channel retail.


FICCI's Engagement

FICCI Retail division has been relentlessly working on addressing the issues which have been identified as major bottlenecks to the growth of the sector. The committee has the conviction that all of us in the industry have a great opportunity to shape a bright and successful future for this sector. The committee since its inception has been instrumental in promoting the Indian retail sector. With a vision to create a favourable environment for the growth of retail in India, the committee has consistently contributed to the cause of retail industry growth.

FICCI Retail & Internal Trade division is led by a high powered committee which is composed of the decision makers of Retail & related industry. It comprises of 48 members.

Team Leader

Pankaj Singh

Director

Team Leader

Leena Jaisani

Assistant Secretary General

Timeline

2023
Mar
Press Release

Govt working to introduce reasonably strict, but practical quality standards for manufacturing sector: Piyush Goyal

Study

PROPEL Retail and FMCG sectors

Event

Massmerize

2021
Sep
Press Release

FMCG sector ushering in rapid structural reforms to make India USD 5 trillion economies: Ashwini Kumar Choubey, MoS, Ministry for Consumer Affairs, Food & Public Distribution

Press Release

Thin line between drugs and cosmetics; well-informed policy and rules need of the hour: Shraddha Srivastava, Assistant Drugs Controller (I), CDSCO

Press Release

Public-private partnerships for digital MSMEs: Navneet Sehgal, Addl Chief Secretary, Information, MSME

Press Release

Augmented transparency; enhanced efficiency; facilitating ease of business and building economies of scale will enable MSMEs carve out a niche for themselves: BB Swain, MSME Secretary

Study

Resilience in the FMCG & Retail Sector

Event

Massmerize 2021

2020
Oct
Press Release

Concept of Atmanirbhar Bharat is not anathema to competition, it coexists with competition: Chief Economic Adviser, GoI

Press Release

Govt in final stages of drafting new National Retail Trade Policy: MoS for Commerce & Industry, GoI

Press Release

Unconventional, agile, and tech-driven strategies to help REBOOT the consumer industry: FICCI-Deloitte report on FMCG and Retail (e-commerce)

Study

FMCG and retail (e-commerce) REBOOT

Event

MASSMERIZE 2020

Apr
Event

FICCI and Grant Thornton Webinar: Impact of COVID-19 on Consumer and Retail sectors

Jan
Press Release

Quick notification of e-pharmacy rules needed: FICCI

2019
Oct
Press Release

Industry should take lead in making investments to put growth back on 7% plus path: Chief Economic Advisor

Study

Evolve for Consumer

Event

Massmerize 2019

2018
Dec
Press Release

Indian Foodservice industry to reach Rs 5,52,000 crore by 2022 with a 10% growth

Study

Changing Landscape of the Food Service Retail Industry

Event

Foodzania 2018 - Food Service Retail Conference

Press Release

Set-up a robust consumer grievance redressal mechanism in Direct Selling Sector - Anil Bahuguna, Jt. Secy., Department of Consumer Affairs, Govt. of India

Study

DIRECT 2018: Implementation of Direct Selling Guidelines in States & Viewing the Direct Selling Industry with a Futuristic Lens

Event

Direct 2018

Oct
Press Release

Win consumers' trust, uphold their rights through legible product labelling in Hindi and regional languages: Ram Vilas Paswan

Study

Consumer LEADS

Event

MASSMERIZE 2018

2017
Nov
Press Release

Indian Food Services market to grow at a CAGR of 10% to reach INR 5,52,000 crore in 5 years: FICCI-Technopak Report

Study

Indian Food Services Industry: Engine for Economic Growth & Employment - A Roadmap for Unlocking Growth

Event

FICCI Foodzania 2017

Sep
Press Release

Food Processing Minister urges MNCs to test Indian waters at World Food India 'Food Street'

Study

KONNECTED Consumers

Event

Massmerize 2017

2016
Nov
Study

The contribution of Direct Selling to Building India

Event

Foodzania: Food Service Retail Conclave

Sep
Press Release

We are confident these guidelines will certainly help in bringing in regulatory clarity for the sector - A. Didar Singh, Secretary General, FICCI

Study

Shaping Consumer Trends

Event

MASSMERIZE 2016

Jul
Study

E-Pharmacy in India: Last Mile Access to Medicines

Event

FICCI Whitepaper launch of 'ePharmacy in India - Last mile access of medicines'

Jun
Press Release

FICCI comments on the cabinet approval on the Model Shop & Establishment Act

Press Release

Delhi's direct selling market estimated to reach INR 15-20 billion by 2025: FICCI-KPMG Report

Study

Direct Selling: Delhi - A Global Industry, Empowering Millions

Event

Launch of FICCI-KPMG Report: 'Direct Selling: Delhi - A Global Industry, Empowering Millions'

Mar
Event

MoU Signing Ceremony between FICCI and Ministry of Consumer Affairs on SixPoint Partnership Agenda

Event

FICCI-KPMG Report Launch : Direct Selling; Kerala - Global Industry Empowering Millions in India

Feb
Press Release

FICCI comments on Cabinet's decision on initiating measures to promote digital payments

2015
Nov
Press Release

Andhra CM Naidu releases FICCI-KPMG Report on Direct Selling in Andhra Pradesh and Telangana in New Delhi

Sep
Event

Master-Class on Branding & Innovation

Aug
Study

Sell SMART Moving towards a SMARTer consumer market

Event

Massmerize 2015

Jun
Press Release

Drugs Controller General of India to formulate guidelines for e-commerce marketplace to ensure safety of consumers

Study

FICCI Stakeholder's Consultation on Online Sale of Drugs and Medicines

Event

FICCI consultative meeting on 'Pharma Guidelines for Reinforcing Due Diligence for Intermediaries (E-commerce Marketplace)'

May
Event

Seminar on 'Unlocking the Potential for Growth in Food & Beverage Service Industry'

Feb
Event

The ROI of Branding - How smart design can add to profit

2014
Aug
Study

Creating synergies, erasing boundaries

Event

Massmerize 2014

Jul
Press Release

Need for clear distinction between fly-by-night operators & genuine business

Study

Establishment of an Appropriate Regulatory Framework for Direct Selling in India

Press Release

FICCI Retail Committee Delegation suggests measures to contain price rise of perishables to Ministry of Consumer Affairs, Food & Public Distribution

May
Press Release

FICCI Condemns the Sudden Arrest of Amway India MD

Study

FICCI Report on Direct Selling Industry

Survey

Survey on How Retailers and FMCG players can collaborate to create Win-Win Model

Mar
Event

Food Supply Chain in India: Analyzing the Potential for International Business

Jan
Study

Compilation of Various International Acts & Laws for Direct Selling Industry

Press Release

FICCI Disappointed with Delhi Decision on FDI in Retail

2013
Aug
Study

TCS-FICCI - Massmerize 2013, Adapting to the Multi-channel Customer, A Roadmap for Integrated Multi-channel Retailing

Event

Massmerize 2013

Jun
Press Release

FICCI Retail Committee Submission on Multi Brand Retail Policy and on recent clarifications to the Hon'ble Minister during the Roundtable of MB retailers

Event

FICCI Retail Committee Delegation to Mr. Anand Sharma, Hon'ble Commerce Minister on FDI in Multi-Brand Retail

May
Press Release

FICCI Condemns the Arrest of CEO, Amway India

Apr
Event

FICCI-FACC Inter-College Nukkad Natak Competition on Safe Online Shopping

Event

Workshop on Food Safety in Organized Retailing

Mar
Event

Meeting with the Japanese Retailers Association

Feb
Event

UK/India: Retail, Food and Drink: Accessing Opportunities

Event

FICCI-RAI Joint Session on FDI in Retail: Retail Leadership Summit

2012
Nov
Study

FICCI Report on FDI in Retail

Event

Interaction with the Thought leaders on FDI in Retail

Policy

FICCI Representation on Essential Commodities Act to Shri Anil Vasantrao Deshmukh, Hon'ble Minister of Food, Civil Supplies & Consumer Protection, Government of Maharashtra

Sep
Press Release

Reaction from President, FICCI on FDI in Multi-Brand Retail

Study

Driving Indian Consumption through Integrated Multichannel Retailing

Aug
Event

Massmerize 2012

Jun
Event

Industry Connsultation on Trustmark for E-retailers

2011
Dec
Event

Workshop on Improving Safety & Quality in Food Retailing

Event

Workshop on Improving Safety & Quality in Food Retail Chain

2010
Event

Massmeize 2010-FICCI FMCG conference

Nov
Study

Footfalls : Feb-Mar 2010

Oct
Event

Interactive Meeting with Mr Subodh Kant Sahai, Hon'ble Union Minister for Food Processing Industries and Mr.Mike Duke, President & CEO, Walmart Stores Inc

Jul
Study

Footfalls: June-July 2010

2009
Oct
Study

Footfalls : Dec 09 - Jan 2010

Jul
Event

MASSMERIZE 2009

Event

Massmerize 2009: Curtain Raiser

Jun
Study

Footfalls : May-June 2009

Apr
Study

Footfalls : March-April 2009

Jan
Study

Footfalls : December-January 2009

2008
Nov
Study

Footfalls : October-November 2008

Events

Mar, 2023

Massmerize

Mar 06, 2023, New Delhi

Sep, 2021

Massmerize 2021

Sep 23, 2021, FICCI, New Delhi

Oct, 2020

MASSMERIZE 2020

Oct 28, 2020, Virtual Platform

Apr, 2020

FICCI and Grant Thornton Webinar: Impact of COVID-19 on Consumer and Retail sectors

Apr 24, 2020, Webinar, 11:00 AM - 12:30 PM

Oct, 2019

Massmerize 2019

Oct 16, 2019, New Delhi

Dec, 2018

Foodzania 2018 - Food Service Retail Conference

Dec 12, 2018, FICCI, New Delhi

Direct 2018

Dec 03, 2018, FICCI, New Delhi

Oct, 2018

MASSMERIZE 2018

Oct 09, 2018, New Delhi

Nov, 2017

FICCI Foodzania 2017

Nov 14, 2017, FICCI, New Delhi

Sep, 2017

Massmerize 2017

Sep 07, 2017, FICCI, New Delhi

Nov, 2016

Foodzania: Food Service Retail Conclave

Nov 18, 2016, FICCI, New Delhi

Sep, 2016

MASSMERIZE 2016

Sep 01, 2016, New Delhi

Jul, 2016

FICCI Whitepaper launch of 'ePharmacy in India - Last mile access of medicines'

Jul 25, 2016, New Delhi

Jun, 2016

Launch of FICCI-KPMG Report: 'Direct Selling: Delhi - A Global Industry, Empowering Millions'

Jun 28, 2016, FICCI, New Delhi

Mar, 2016

MoU Signing Ceremony between FICCI and Ministry of Consumer Affairs on SixPoint Partnership Agenda

Mar 22, 2016, New Delhi

FICCI-KPMG Report Launch : Direct Selling; Kerala - Global Industry Empowering Millions in India

Mar 18, 2016, Thiruvananthapuram

Sep, 2015

Master-Class on Branding & Innovation

Sep 01, 2015, Mumbai

Aug, 2015

Massmerize 2015

Aug 31, 2015, The Lalit, Mumbai

Jun, 2015

FICCI consultative meeting on 'Pharma Guidelines for Reinforcing Due Diligence for Intermediaries (E-commerce Marketplace)'

Jun 17, 2015, FICCI, New Delhi

May, 2015

Seminar on 'Unlocking the Potential for Growth in Food & Beverage Service Industry'

May 26, 2015, FICCI, New Delhi

Feb, 2015

The ROI of Branding - How smart design can add to profit

Feb 11, 2015, Dusit Devarana, New Delhi

Aug, 2014

Massmerize 2014

Aug 07, 2014, The Lalit, Mumbai

Mar, 2014

Food Supply Chain in India: Analyzing the Potential for International Business

Mar 28, 2014, FICCI, New Delhi

Aug, 2013

Massmerize 2013

Aug 07, 2013, New Delhi

Jun, 2013

FICCI Retail Committee Delegation to Mr. Anand Sharma, Hon'ble Commerce Minister on FDI in Multi-Brand Retail

Jun 27, 2013, New Delhi

Apr, 2013

FICCI-FACC Inter-College Nukkad Natak Competition on Safe Online Shopping

Apr 04, 2013, Miranda House, Delhi

Workshop on Food Safety in Organized Retailing

Apr 01, 2013, FICCI, New Delhi

Mar, 2013

Meeting with the Japanese Retailers Association

Mar 29, 2013, FICCI, New Delhi

Feb, 2013

UK/India: Retail, Food and Drink: Accessing Opportunities

Feb 19, 2013, New Delhi

FICCI-RAI Joint Session on FDI in Retail: Retail Leadership Summit

Feb 07, 2013, Grand Hyatt, Santacruz (E), Mumbai

Nov, 2012

Interaction with the Thought leaders on FDI in Retail

Nov 17, 2012, FICCI, Federation House, New Delhi

Aug, 2012

Massmerize 2012

Aug 07, 2012, The Leela, Mumbai

Jun, 2012

Industry Connsultation on Trustmark for E-retailers

Jun 28, 2012, FICCI, Federation House, New Delhi

Dec, 2011

Workshop on Improving Safety & Quality in Food Retail Chain

Dec 14, 2011, Mumbai

Workshop on Improving Safety & Quality in Food Retailing

Dec 14, 2011, Mumbai

Dec, 2010

Massmeize 2010-FICCI FMCG conference

Dec 14, 2010, New Delhi

Oct, 2010

Interactive Meeting with Mr Subodh Kant Sahai, Hon'ble Union Minister for Food Processing Industries and Mr.Mike Duke, President & CEO, Walmart Stores Inc

Oct 26, 2010, New Delhi

Jul, 2009

MASSMERIZE 2009

Jul 23, 2009, New Delhi

Massmerize 2009: Curtain Raiser

Jul 08, 2009, New Delhi

Chair

Mr. V Subramaniam

Managing Director, Reliance Retail

Co-Chair

Mr. Sunil Kataria

CEO, Lifestyle Business
Raymond Ltd

Mentor

Mr. Krish Iyer

Advisor
Wal-Mart India Pvt Ltd

Survey on How Retailers and FMCG players can collaborate to create Win-Win Model

Download PDF

FICCI Representation on Essential Commodities Act to Shri Anil Vasantrao Deshmukh, Hon'ble Minister of Food, Civil Supplies & Consumer Protection, Government of Maharashtra

Download PDF
The Telegraph Online |

National retail trade policy in the works

Deccan Herald |

Retail trade set for revamp

APN News |

Arvind Mediratta, CEO of METRO India awarded 'The Most Promising Business Leader of Asia 2020' by Economic Times

Arvind Mediratta, a retail industry veteran with over three decades of experience, was awarded "The Most Promising Business Leader of Asia 2020" by The Economic Times at the recently held 5th edition of Asian Business Leaders Conclave 2020. Arvind has been instrumental in turning METRO’s business profitable in India, and expanding the business into newer geographies. Arvind is also the chairperson of FICCI’s committee on Retail and internal trade.

METRO has completed 17 years of operations in India and currently operates 28 wholesale distribution centers under the brand METRO Wholesale across 18 cities in India. The company has been helping the small and independent businesses, especially the traders and kiranas with technology, digital payment solutions, modernization of operations and improved business outcomes.

Indian Coperative |

GCMMF's MD lauds Amul’s unique co-op model at FICCI event

The unique Amul model which empowers millions of farmers and which has yet to have a rival in terms of its seamless operation across villages, received a special mention at a FICCI webinar which was attended by Som Parkash, Minister of State for Commerce & Industry and Dr Krishnamurthy Subramanian, Chief Economic Adviser, GOI, among others.

Addressing the virtual session of ‘FICCI MASSMERIZE 2020’, Sodhi talked about the dairy sector in detail and claimed that Amul’s suppliers are its owners- a strong force of 3.6million farmers. Speaking at a Webinar of industry captains organized by FICCI, GCMMF Managing Director R S Sodhi said India is the only country in the world to unleash second generation reforms due to COVID-19. There are enough opportunities for creating ethical wealth in India, added Sodhi.

“COVID or no COVID, food is one sector that will never be impacted. The only thing that changed is the share of stomach; it became 100% home-cooked food. And because of this, the selection of ingredients and brands changed”, tweeted RS Sodhi giving excerpts of his speech at the function.

Inaugurating the two-day event Som Parkash, Minister of State said that the government is in the final stages to launch the new National Retail Trade Policy. “It is being formulated to support the development of the sector that will benefit 65 million small traders.”

Dr Krishnamurthy Subramanian, Chief Economic Adviser, Govt of India said that Atmanirbhar Bharat is all about self-reliance which is directly related to creating capabilities. “Self-reliance can never happen without adequate capabilities. Capabilities are built only by competing with the best,” he added.

Dr Subramanian said that with the reforms launched in the last few months, India is the only country that utilized the opportunity provided by the current crisis to unleash the second-generation reforms. “These reforms are focused on factor markets and not like other reforms which focused on product markets post 1991 era,” he added.

Devendra Chawla, Co-Chair, FICCI Retail and Internal Trade Committee & MD and CEO, Spencer’s Retail Limited and Nature’s Basket Ltd said that under the Atmanirbhar Bharat, an ecosystem is being formed for the manufacturing sector. Chetan Krishnaswamy, Vice President, Public Policy, Amazon also spoke on the occasion.

Adarsh Menon, Senior Vice President & Head, Flipkart Wholesale & Walmart India said the pandemic has brought to light the ability for digital companies to innovate. Sanjay Kumar, Partner – Public Policy and Tax, Deloitte India moderated the webinar.

Media News4u |

Unconventional, agile, and tech-driven strategies to help ‘REBOOT’ the consumer industry: Deloitte-FICCI report

Deloitte Touche Tohmatsu India LLP (DTTILLP) and FICCI launched the fourth edition of their joint report called REBOOT in the annual edition of Massmerize 2020. FICCI Massmerize is the flagship Retail and FMCG event by FICCI’s Consumer committee that works towards collaborating with industry leaders and stakeholders from these industries.

Built on a six-step approach, this report emphasises the need for consumer brands to R-E-B-O-O-T their businesses in view of the disruption and the changing consumer behaviour. As businesses need to ‘Realign’ their business models and partnerships, ‘Enhance’ consumer experience through technology and Analytics, ‘Build’ resilient distribution, develop their ‘Omni-channel’ presence, ‘Operate’ efficiently, and ‘Thrive’ by focusing on sustainability.

Speaking on the launch of the report, Rajat Wahi, Partner, Deloitte India, said, “while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers. The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious.

This has created new opportunities for businesses to develop hyper-local delivery models, use conversational AI, build omni-channel retail, etc. to acquire and serve customers.

As brands adapt to the ‘new normal’, the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future.”

Speaking on the occasion, Mr. Dilip Chenoy, Secretary General, FICCI said, “‘India has emerged as one of the most attractive investment destinations with the increasing disposable income, rapid industrialization, and a shift in the demographic pattern. Amongst the significant contributors to this growth story have been the consumer-centric sectors, such as retail, FMCG, and e-commerce. India is one of the world’s fastest-growing major economies and has immense potential. Increased involvement and participation of businesses with the help of supportive policy measures will help capitalize on this potential and achieve the societal goals of inclusive growth and empowerment of the people.’’

Trends/lessons learnt from COVID-19
  1. Acceleration in e-commerce sales as stay-home phenomena drove significant purchases through e-commerce.
  2. Increased demand from rural: COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution
  3. Focus on health, hygiene, and nutrition: Health concerns and the need to build immunity have led consumers to buy home sanitation and immunity boosting products. As a result, these categories have seen major growth since March ‘20 and this is likely to continue into 2021.
  4. Reconfigure distribution to explore omni-channel models: The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that.

Textile Value Chain |

India in final stages of drafting National Logistic policy, New Industrial policy, an E- Commerce policy and National Retail Trade policy

India is in the ‘final stage of drafting’ a national logistics policy, a new industrial policy, an e-commerce policy and a national retail trade policy, according to minister of state for commerce and industry Som Parkash, who recently urged the industry to contribute towards making India self-reliant in every possible way and elevate the country’s image.

The minister was addressing the inaugural virtual session of ‘FICCI MASSMERIZE 2020’.

The department for promotion of industry and internal trade (DPIIT) has always been in the forefront in ensuring that investments come in this sector, Parkash was quoted as saying by a press release from the Federation of Indian Chambers of Commerce and Industry (FICCI).

The Economic Times |

Indian industry should tap into country's competitive advantage: KV Subramanian, CEA

The most important theme of the Atmanirbhar Bharat scheme is to enable Indian industry to tap into the country’s competitive advantage of a large domestic market, said KV Subramanian, chief economic adviser (CEA) of India.

“By far the most important theme of Atmanirbhar Bharat is to enable India to tap into its comparative advantages, which is the large labour force that we have, to create demand by enhancing employment opportunities in both the primary and secondary sector,” Subramanian said during a virtual conference hosted by the Federation of Indian Chambers of Commerce and Industry on Friday.

Another theme of Atmanirbhar Bharat is to nudge industry to focus on products that can be catered to lower income groups where margins are lower but volumes are much higher, he said.

The CEA also asked India Inc to set up factories in the hinterland to take advantage of the lower labour costs, considering the pandemic has removed certain restrictions on connectivity. “The Covid pandemic illustrates that factories can be set up possibly in the hinterlands...with these virtual meetings, the administrator can talk to the factory manager virtually,” said Subramanian. “The reason this should be done is because labour costs will be far lower. Even adjusted for skill, and that skill can be upgraded, labour costs will be lower, so the competitive advantage is even higher.”

Adgully |

Atmanirbhar Bharat is not anathema to competition, it coexists with competition

Dr Krishnamurthy Subramanian, Chief Economic Adviser, Govt of India today said that Atmanirbhar Bharat is all about self-reliance which is directly related to creating capabilities. “Self-reliance can never happen without adequate capabilities. Capabilities are built only by competing with the best. The idea of Atmanirbhar Bharat is not anathema to competition, it coexists with competition,” he added.

Addressing ‘Policy Session- Realizing the Atmanirbhar Bharat Dream’, during the FICCI MASSMERIZE 2020, Dr Subramanian said that Atmanirbhar Bharat is about relying on the private sector enterprise along with the efficiency which they bring. “The reforms signal the intent of the government to rely on the markets. Reforms like IBC, Labour Codes, farm bills require a strong political will to see that the big benefits benefit the majority class. It is also signal from the government to do what is economically right and beneficial in the long run for the country,” he said.

Dr Subramanian said that with the reforms launched in the last few months, India is the only country that utilized the opportunity provided by the current crisis to unleash to the second-generation reforms.

“These reforms are focused on factor markets and not like other reforms which focused on product markets post 1991 era,” he added.

He said that it is imperative for India to tap into its comparative advantages including the large market and large labour force to create demand and create employment opportunities in both the primary and the secondary sector. “Tertiary sector has done very well so far, but primary and secondary sector are important for employment generation,” Dr Subramanian added.

Explaining further the benefit of Atmanirbhar Bharat, he said that we must focus on the volume model under which the products and services are designed to cater to a larger section of the society. “With small margin and catering to a large scale is the comparative advantage that India provides under the Atmanirbhar Bharat vision. This opportunity has not been tapped to its fullest except by FMCG and micro finance industry. Industry must tap this potential by creating products and services to play this volume game,” noted Dr Subramanian.

He further said that there are enough opportunities for ethical wealth creation to be done in India. “The government has made reforms like labour codes and in agri sector. India Inc now needs to respond,” Dr Subramanian said.

Mr Devendra Chawla, Co-Chair, FICCI Retail and Internal Trade Committee & MD and CEO, Spencer’s Retail Limited and Nature’s Basket Ltd said that under the Atmanirbhar Bharat, an eco-system is being formed for the manufacturing sector. It is important for India to have a strong manufacturing base in order to increase the exports from the country. We need to focus on becoming a value-added manufacturing economy with high skill sets, he emphasized.

Mr Chetan Krishnaswamy, Vice President, Public Policy, Amazon said that Atmanirbharta is multi-dimensional and the recent reforms announced by the government will help the industry in the long-term. For e-commerce sector to grow further, there is a need for the industry to take note of the animal spirit that exits in rural India and hinterlands and tap the potential, he added.

Mr Adarsh Menon, Senior Vice President & Head, Flipkart Wholesale & Walmart India said the pandemic has brought to light the ability for digital companies to innovate. MSMEs play an important role in the economy and technology along with other digital tools will help them tap the domestic and global supply chains, he said.

Mr Sanjay Kumar, Partner – Public Policy and Tax, Deloitte India moderated the webinar.

United News of India |

Industries be built in remote areas: CEA

KNN |

Industry needs to play volume game: CEA

Chief Economic Adviser, Dr Krishnamurthy Subramanian has said that Atmanirbhar Bharat is all about self-reliance which is directly related to creating capabilities.

Addressing 'Policy Session- Realizing the Atmanirbhar Bharat Dream', during the FICCI MASSMERIZE 2020, on Friday, Dr Subramanian said that Atmanirbhar Bharat is about relying on the private sector enterprise along with the efficiency which they bring.

"Self-reliance can never happen without adequate capabilities. Capabilities are built only by competing with the best. The idea of Atmanirbhar Bharat is not anathema to competition, it coexists with competition," he added.
He further said that the reforms signal the intent of the government to rely on the markets. Reforms like IBC, Labour Codes, and farm bills require a strong political will to see that the big benefits benefit the majority class.

''It is also a signal from the government to do what is economically right and beneficial in the long run for the country," he said.

Dr Subramanian said that with the reforms launched in the last few months, India is the only country that utilized the opportunity provided by the current crisis to unleash the second-generation reforms.

"These reforms are focused on factor markets and not like other reforms which focused on product markets post 1991 era," he added.

He said that it is imperative for India to tap into its comparative advantages including the large market and large labour force to create demand and create employment opportunities in both the primary and the secondary sector.

"Tertiary sector has done very well so far, but the primary and secondary sector are important for employment generation," Dr Subramanian added.

Explaining further the benefit of Atmanirbhar Bharat, he said that we must focus on the volume model under which the products and services are designed to cater to a larger section of the society.

"With small margin and catering to a large scale is the comparative advantage that India provides under the Atmanirbhar Bharat vision. This opportunity has not been tapped to its fullest except by FMCG and the micro finance industry. Industry must tap this potential by creating products and services to play this volume game," noted Dr Subramanian.

He said that there are enough opportunities for ethical wealth creation to be done in India adding "the government has made reforms like labour codes and in the agri sector. India Inc now needs to respond.

Fibre 2 Fashion |

Consumer brands should REBOOT businesses: FICCI-Deloitte

Consumer brands should ‘REBOOT’ their businesses in view of the pandemic-induced disruption and changing consumer behavior, according to the fourth edition of a report called REBOOT jointly launched by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Deloitte Touche Tohmatsu India LLP (DTTILLP) recently in the annual edition of MASSMERIZE event.

MASSMERIZE is FICCI's flagship annual retail, e-commerce and fast moving consumer goods (FMCG) conference by its consumer committee.

Built on a six-step approach, the report calls for the REBOOT strategy as businesses need to 'Realign' their business models and partnerships, ‘Enhance’ consumer experience through technology and analytics, 'Build' resilient distribution, develop their 'Omni-channel' presence, 'Operate' efficiently, and 'Thrive' by focusing on sustainability, said a FICCI press release.

“Increased involvement and participation of businesses with the help of supportive policy measures will help capitalise on this potential and achieve the societal goals of inclusive growth and empowerment of the people,” said FICCI Secretary General Dilip Chenoy.

The pandemic accelerated e-commerce sales as stay-home phenomena drove significant purchases through e-commerce. It has also led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution.

Eminetra |

Consumer brands need to restart their business: FICCI-Deloitte

According to the fourth edition of a report called REBOOT, jointly published by the Federation of Indian Chambers of Commerce (FICCI) and Deloitte Touche Tohmatsu, consumer brands are “taking into account the turmoil and changes in consumer behavior caused by pandemics. Must Reboot India LLP (DTTILLP) recently appeared in the annual edition of the MASSMERIZE event.

MASSMERIZE is FICCI’s leading annual retail, e-commerce and fast-moving consumer goods (FMCG) conference by the Consumer Commission.

The report is built on a six-step approach, where companies “realign” their business models and partnerships, “strengthen” the consumer experience through technology and analytics, and “build” resilient distribution. And we need to develop an “omni-channel”, so we are looking for a REBOOT strategy. According to a FICCI press release, “presence,” “efficient operation,” and “prosperity” with a focus on sustainability.

“Increasing corporate involvement and participation with the help of supportive policy measures will help us to harness this potential and achieve the social goals of inclusive growth and empowerment of people,” FICCI said. Secretary General Dilip Chenoy said.

Pandemics accelerated e-commerce sales as the curfew encouraged bulk purchases through e-commerce. It also resulted in large-scale reverse migration, which in turn boosted local demand and favored companies with strong local distribution.

According to the fourth edition of a report called REBOOT, jointly published by the Federation of Indian Chambers of Commerce and Deloitte Touche Tomatindia LLP, consumer brands have “rebooted” their businesses in light of the turmoil and changes in consumer behavior caused by pandemics. “need to do it. In the annual version of the MASSMERIZE event.

Apparel Resources |

Unconventional, agile and tech-driven strategies to help REBOOT consumer market: Report

FICCI and Deloitte Touche Tohmatsu India recently launched the fourth edition of their joint report called REBOOT.

The report reveals the need for the consumer brands to R.E.B.O.O.T their businesses due to the current situation of pandemic, which has led to the changing consumer behaviour.

It further states that the retailers need to realign their business models and partnership, use technology and analytics to enhance consumer experience, build resilient distribution, develop omnichannel presence, increase focus on sustainability and operate efficiently.

The report also jots down six key impacts of pandemic on consumer market including acceleration in e-commerce, increase in demand from rural markets, increased focus on health, hygiene and nutrition, focus on omnichannel models, adopting phygital approach and increased focused on sustainability.

Rajat Wahi, Partner, Deloitte India, mentions that retailers in order to survive the massive disruption caused by pandemic have adapted by building agile business models and innovative marketing strategies along with increasing their digital presence to reach out to the customers.

Also, the prolonged lockdown was a major reason behind the transformed consumer buying behaviour and increased health and hygiene concerns, he further added.

This shift in the consumer buying behaviour has opened new opportunities for businesses to develop hyper-local delivery models, use conversational artificial intelligence (AI) and build omnichannel retail to acquire and serve customers.

Dilip Chenoy, Secretary General, FICCI, mentions that India is one of the world’s fastest-growing major economies and has immense potential. “Increased involvement and participation of businesses with the help of supportive policy measures will help capitalise on this potential and achieve the societal goals of inclusive growth and empowerment of the people.”

Plunge Daily |

E-commerce channels prompt FMCG companies to launch digital only brands

FMCG companies are eyeing e-commerce channels and have also begun to launch their digital only brands. They have also boosting their online presence as digital purchases has accelerated significant during the pandemic.

RS Sodhi, Managing Director of Amul, during a panel discussion at a FICCI event pointed out that in the past six months, e-commerce has multiplied by nearly two to three times for the sector. He said online retail was earlier contributing only three per cent to the market, and just within six months, it is contributing seven to eight per cent. Pawan Agrawal, CFO Marico Ltd, said online sales for the company grew by about 40 per cent in the first half of the current fiscal year, and the e-commerce channel contributed eight per cent to the total turnover in the second quarter of the current financial year.

Companies are stepping up in terms of direct-to-consumer channels. Most notedly, Dabur India has come up with several new products, such as apple cider vinegar, new products in the Dabur Baby Range and Dabur cold-pressed mustard oil, exclusively for the online market. Adarsh Sharma, executive director sales Dabur India Ltd, said that in that post-COVID world, online retail has emerged as the most preferred contactless method of making purchases. He said this trend is likely to stay. “We have seen our online business more than doubling and had a saliency of over six per cent in Q1 2020-21 compared to 1.5 per cent in Q1 of 2019-20. We expect the saliency to remain around five to six per cent this year.”

The sudden surge in consumer demand for online retail services could be due to the implementation of social distancing norms and lockdown measures countries have taken to contain the pandemic, these new norms are finding increasing acceptance amongst consumers and adoption by traditional businesses. Ankur Pahwa, an advisor at EY India E-commerce and Consumer Internet Leader, Transactions Diligence Partner, had earlier said that segments such as on-demand delivery services related to fresh produce, online education, social engagement platforms from gaming to OTT platforms, online collaborative tools, e-pharmacies, online consultations are a few areas that may have witnessed triple digit growth. He said companies in the mentioned segments have witnessed triple digit growth, with millions of new consumers onboarding their platform in the last couple of months to cope in dealing with the health crisis.

Techno Codex |

Indian industry should tap into country’s competitive advantage: KV Subramanian, CEA

The most important theme of the Atmanirbhar Bharat scheme is to enable Indian industry to tap into the country’s competitive advantage of a large domestic market, said KV Subramanian, chief economic adviser (CEA) of India.

“By far the most important theme of Atmanirbhar Bharat is to enable India to tap into its comparative advantages, which is the large labour force that we have, to create demand by enhancing employment opportunities in both the primary and secondary sector,” Subramanian said during a virtual conference hosted by the Federation of Indian Chambers of Commerce and Industry on Friday.

Another theme of Atmanirbhar Bharat is to nudge industry to focus on products that can be catered to lower income groups where margins are lower but volumes are much higher, he said.

The CEA also asked India Inc to set up factories in the hinterland to take advantage of the lower labour costs, considering the pandemic has removed certain restrictions on connectivity. “The Covid pandemic illustrates that factories can be set up possibly in the hinterlands…with these virtual meetings, the administrator can talk to the factory manager virtually,” said Subramanian. “The reason this should be done is because labour costs will be far lower. Even adjusted for skill, and that skill can be upgraded, labour costs will be lower, so the competitive advantage is even higher.”

While News |

CEA Krishnamurthy Subramanian cautions NBFCs on ‘zombie lending’

After a sequence of NBFC collapses, the federal government on Thursday cautioned in opposition to “zombie lending”, advising them to comply with prudential measures to make sure that dangers don’t mount “Whereas regulators are mandated to watch these items, at a person degree, NBFCs want to watch its rollover danger and interconnected danger as properly, as a result of in occasions like these, prudential measures should be taken by every NBFC to make sure that dangers don’t mount,” chief financial adviser Krishnamurthy Subramanian stated at a Ficci convention. He additionally cautioned in opposition to rollover danger or the asset legal responsibility mismatch and interconnected danger.

India has been stricken by the collapse of NBFCs equivalent to IL&FS and DHFL, which lent with out correct safety and hid dangerous debt on books, prompting the federal government and the RBI to step in to stop systemic dangers.

“Forbearance is important at this level of time however the earlier episode of 2008-09 illustrates very properly the form of zombie lending that continued… evergreening occurred that mainly got here again to actually chew three-four years later,” Subramanian stated.

Business World |

Use of technology in retail going to stay, say industry captains

Adoption of digital technology by retailers and consumers has been accelerated during the COVID-19 pandemic and is going to stay, industry leaders said on Thursday.

The use of technology has changed the way consumers shop and it is now playing an expanded role across sectors, industry leaders said in a panel discussion.

De Beers India Managing Director Sachin Jain said an average consumer coming into the outlet today, has gone through the product digitally at least seven to eight times whether transacting or not is a different issue.

“That narrative is going to be permanent,” he said adding, “I also foresee that the whole augmented area and artificial intelligence and visualisation of the product at home is going to increase.” According to him, this shift in technology has to be incorporated into physical stores as well and omni channel is the way forward for the retail.

Pepperfry Founder & CEO Ambareesh Murty said that there is a fundamental change in consumer behaviour as he is looking convince from buying from home.

“It is going to stay and not going anywhere as once the consumer sees the benefit to it, there is no reason to go back and retract from that path,” said Murty while participating in a virtual panel discussion at a FICCI event here.

While Zydus Wellness CEO Tarun Arora said consumer’s “focus on health and wellness would be rather permanent now.” 'The information-seeking behaviour would remain, that part change would be there,' he said.

The trust factor has become more important and people now read the pack and remain focused on buying certain kind of products.

People have become more “experiential, information seeking,” he said. 'People have realised that immunity is not through booster shots but it is through what you eat. Food has become far more evolved overnight. You want food that works,” he added.

Amul Managing Director R S Sodhi said after the pandemic e-commerce has multiplied three times, though modern trade has suffered.

The consumer in food has shifted more on loose and unbranded to packed and branded product. People have also shifted towards a more trustworthy brand and also on the affordable brand because the earning has also been impacted.

While in smaller cities people have shifted to smaller packs but branded packs.

“In the bigger cities, sales of bigger packs increased as the frequency of sales dropped,” he said.

Money Control |

India Inc needs to respond to various reform measures of govt: CEA K V Subramanian

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser K V Subramanian said on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

"If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital,” he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

"So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings,” he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

"Now India Inc actually needs to respond. We have enabled labour laws reforms etc…There are enough and more opportunities for ethical wealth creation to be done in Indian context…this is something that I would like widespread in India Inc,” he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Devdiscourse |

India Inc needs to respond to various reform measures of govt: CEA

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser K V Subramanian said on Friday. He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

"If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital," he said. IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted. "So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings," he said at an event organised by FICCI. Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector. "Now India Inc actually needs to respond. We have enabled labour laws reforms etc...There are enough and more opportunities for ethical wealth creation to be done in Indian context...this is something that I would like widespread in India Inc," he said. Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Latest LY |

India Inc needs to respond to various reform measures of govt: CEA

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser K V Subramanian said on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

"If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital," he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

"So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings," he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

"Now India Inc actually needs to respond. We have enabled labour laws reforms etc...There are enough and more opportunities for ethical wealth creation to be done in Indian context...this is something that I would like widespread in India Inc," he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Indian Patrika |

India Inc needs to respond to various reform measures of govt: CEA K V Subramanian

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser K V Subramanian said on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

“If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital,” he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

“So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings,” he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

“Now India Inc actually needs to respond. We have enabled labour laws reforms etc…There are enough and more opportunities for ethical wealth creation to be done in Indian context…this is something that I would like widespread in India Inc,” he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Orissa Diary |

Concept of Atmanirbhar Bharat is not anathema to competition, it coexists with competition: Dr Krishnamurthy Subramanian Chief Economic Adviser

Dr Krishnamurthy Subramanian, Chief Economic Adviser, Govt of India today said that Atmanirbhar Bharat is all about self-reliance which is directly related to creating capabilities. “Self-reliance can never happen without adequate capabilities. Capabilities are built only by competing with the best. The idea of Atmanirbhar Bharat is not anathema to competition, it coexists with competition,” he added.

Addressing ‘Policy Session- Realizing the Atmanirbhar Bharat Dream’, during the FICCI MASSMERIZE 2020, Dr Subramanian said that Atmanirbhar Bharat is about relying on the private sector enterprise along with the efficiency which they bring. “The reforms signal the intent of the government to rely on the markets. Reforms like IBC, Labour Codes, farm bills require a strong political will to see that the big benefits benefit the majority class. It is also signal from the government to do what is economically right and beneficial in the long run for the country,” he said.

Dr Subramanian said that with the reforms launched in the last few months, India is the only country that utilized the opportunity provided by the current crisis to unleash to the second-generation reforms. “These reforms are focused on factor markets and not like other reforms which focused on product markets post 1991 era,” he added.

He said that it is imperative for India to tap into its comparative advantages including the large market and large labour force to create demand and create employment opportunities in both the primary and the secondary sector. “Tertiary sector has done very well so far, but primary and secondary sector are important for employment generation,” Dr Subramanian added.

Explaining further the benefit of Atmanirbhar Bharat, he said that we must focus on the volume model under which the products and services are designed to cater to a larger section of the society. “With small margin and catering to a large scale is the comparative advantage that India provides under the Atmanirbhar Bharat vision. This opportunity has not been tapped to its fullest except by FMCG and micro finance industry. Industry must tap this potential by creating products and services to play this volume game,” noted Dr Subramanian.
He further said that there are enough opportunities for ethical wealth creation to be done in India. “The government has made reforms like labour codes and in agri sector. India Inc now needs to respond,” Dr Subramanian said.

Mr Devendra Chawla, Co-Chair, FICCI Retail and Internal Trade Committee & MD and CEO, Spencer’s Retail Limited and Nature’s Basket Ltd said that under the Atmanirbhar Bharat, an eco-system is being formed for the manufacturing sector. It is important for India to have a strong manufacturing base in order to increase the exports from the country. We need to focus on becoming a value-added manufacturing economy with high skill sets, he emphasized.
Mr Chetan Krishnaswamy, Vice President, Public Policy, Amazon said that Atmanirbharta is multi-dimensional and the recent reforms announced by the government will help the industry in the long-term. For e-commerce sector to grow further, there is a need for the industry to take note of the animal spirit that exits in rural India and hinterlands and tap the potential, he added.

Mr Adarsh Menon, Senior Vice President & Head, Flipkart Wholesale & Walmart India said the pandemic has brought to light the ability for digital companies to innovate. MSMEs play an important role in the economy and technology along with other digital tools will help them tap the domestic and global supply chains, he said.

Mr Sanjay Kumar, Partner – Public Policy and Tax, Deloitte India moderated the webinar.

Media Brief |

Deloitte, FICCI unveils fourth edition of joint report ‘REBOOT’ at Massmerize 2020

Deloitte Touche Tohmatsu India LLP (DTTILLP) and FICCI launched the fourth edition of their joint report called REBOOT in the annual edition of Massmerize 2020. FICCI Massmerize is the flagship Retail and FMCG event by FICCI’s Consumer committee that works towards collaborating with industry leaders and stakeholders from these industries.

Built on a six-step approach, this report emphasises the need for consumer brands to R-E-B-O-O-T their businesses in view of the disruption and the changing consumer behaviour. As businesses need to ‘Realign’ their business models and partnerships, ‘Enhance’ consumer experience through technology and Analytics, ‘Build’ resilient distribution, develop their ‘Omni-channel’ presence, ‘Operate’ efficiently, and ‘Thrive’ by focusing on sustainability.

Rajat Wahi, Partner, Deloitte India, said, “while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers. The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious.

This has created new opportunities for businesses to develop hyper-local delivery models, use conversational AI, build omni-channel retail, etc. to acquire and serve customers.
As brands adapt to the ‘new normal’, the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future.”

Dilip Chenoy, Secretary General, FICCI, said, “‘India has emerged as one of the most attractive investment destinations with the increasing disposable income, rapid industrialization, and a shift in the demographic pattern. Amongst the significant contributors to this growth story have been the consumer-centric sectors, such as retail, FMCG, and e-commerce.

“India is one of the world’s fastest-growing major economies and has immense potential. Increased involvement and participation of businesses with the help of supportive policy measures will help capitalize on this potential and achieve the societal goals of inclusive growth and empowerment of the people,” Chenoy added.

Trends/lessons learnt from COVID-19
  1. Acceleration in e-commerce sales as stay-home phenomena drove significant purchases through e-commerce.
  2. Increased demand from rural: COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution
  3. Focus on health, hygiene, and nutrition: Health concerns and the need to build immunity have led consumers to buy home sanitation and immunity boosting products. As a result, these categories have seen major growth since March ‘20 and this is likely to continue into 2021.
  4. Reconfigure distribution to explore omni-channel models: The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that.
  5. Existence through phygital approach: As digital-savvy consumers look for a mix of digital and physical engagements, it has led to retailers building an omni-channel presence to provide best-in-class customer experience.
  6. The COVID-19 crisis has put sustainability in the spotlight and companies are now seeing sustainability through the lens of growth as well as bottom line, and using their sustainability initiatives to better engage with their customers.

Outlook |

India Inc needs to respond to various reform measures of govt: CEA

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser K V Subramanian said on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

"If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital," he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

"So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings," he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

"Now India Inc actually needs to respond. We have enabled labour laws reforms etc...There are enough and more opportunities for ethical wealth creation to be done in Indian context...this is something that I would like widespread in India Inc," he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Outlook |

''Consumers adapted to post-COVID reality quickly in retail through digital, omni channels''

Consumers have quickly responded to the changed circumstances post the COVID-19 outbreak by opting for e-commerce and omni channel services, industry leaders said on Friday.

There has been a shift in consumer behaviour in favour of digital, affecting the preferences and purchase decisions, they said at a virtual event organised by industry chamber FICCI.

The retailers are also bracing to face the changes and are innovating by using QR codes, providing more digital information at the stores and investing in digital tools, they added.

"The amount of change that happened in the last six months is tectonic and the lockdown has impacted the human and consumer behaviour," L'Oreal India Managing Director Amit Jain said.

There has been massive rebound in the trade of goods directly related to basic human needs, he said, adding consumers have moved away from several discretionary products like make-up because of re-prioritisation in purchases.

People are "embracing digital across entertainment services, health, education, medicine and for deliveries", he added.

Bestseller India CEO and Country Head Vineet Gautam said after the lockdown, a lot of businesses have moved online.

COVID-19 has put pressure on the retail industry and consumers have also adapted to the omni channel very fast, he noted.

"The biggest change in consumer behaviour we have seen, (is) that the consumer is still not confident to move to brick and mortar. People come but the time spent in the store has been reduced," he said.

Besides, window shopping by consumers has reduced and only the ''clear intent'' consumers are coming in, he said.

"If our stores were seeing 100 footfalls pre-COVID, today we have only 40 footfalls. 60 per cent window-shoppers have moved out but the value has increased," he said.

However, he added that consumers are expected to return to the stores as in India the nature of shopping is still experiential.

"The biggest shift that will happen is that online would become a large piece of our business and digital-first is going to be the main thing," Gautam said. "We also have to re-train our people and invest in digital."

E-pharmacy 1MG's co-founder and CEO Prashant Tandon said COVID-19 was a "huge structural boost" for the online pharmacy industry.

What has happened on the policy front in three-four weeks of the lockdown for the industry would normally have taken couple of years, he emphasised.

"A sector which was on the periphery has moved to the mainstream very fast, as the healthcare moves at a glacial speed," he said, adding the pandemic has forced people to adopt a more innovative approach after they ran out of options.

This requires behavioural and mindset changes at many levels, including consumers, doctors, health professionals, insurance and pharma companies as well as the regulators, Tandon said.

"COVID made them all move at the pace we like," he added.

Swiggy CEO Sriharsha Majety said recovery in the market was faster than expected and full recovery is likely by December.

"Preferences of consumers in terms of restaurants to which they have ordered was very experimentative in the past but right now a big shift is favour of known brands and reputed brands and ordering more for groups," he said.

He also said now ordering food online is part of entertainment and with IPL, there is a surge in orders.

India Education Diary |

India is the only country to unleash second generation reforms provided by COVID-19

Dr Krishnamurthy Subramanian, Chief Economic Adviser, Govt of India today said that Atmanirbhar Bharat is all about self-reliance which is directly related to creating capabilities. “Self-reliance can never happen without adequate capabilities. Capabilities are built only by competing with the best. The idea of Atmanirbhar Bharat is not anathema to competition, it coexists with competition,” he added.

Addressing ‘Policy Session- Realizing the Atmanirbhar Bharat Dream’, during the FICCI MASSMERIZE 2020, Dr Subramanian said that Atmanirbhar Bharat is about relying on the private sector enterprise along with the efficiency which they bring. “The reforms signal the intent of the government to rely on the markets. Reforms like IBC, Labour Codes, farm bills require a strong political will to see that the big benefits benefit the majority class. It is also signal from the government to do what is economically right and beneficial in the long run for the country,” he said.

Dr Subramanian said that with the reforms launched in the last few months, India is the only country that utilized the opportunity provided by the current crisis to unleash to the second-generation reforms. “These reforms are focused on factor markets and not like other reforms which focused on product markets post 1991 era,” he added.

He said that it is imperative for India to tap into its comparative advantages including the large market and large labour force to create demand and create employment opportunities in both the primary and the secondary sector. “Tertiary sector has done very well so far, but primary and secondary sector are important for employment generation,” Dr Subramanian added.

Explaining further the benefit of Atmanirbhar Bharat, he said that we must focus on the volume model under which the products and services are designed to cater to a larger section of the society. “With small margin and catering to a large scale is the comparative advantage that India provides under the Atmanirbhar Bharat vision. This opportunity has not been tapped to its fullest except by FMCG and micro finance industry. Industry must tap this potential by creating products and services to play this volume game,” noted Dr Subramanian.

He further said that there are enough opportunities for ethical wealth creation to be done in India. “The government has made reforms like labour codes and in agri sector. India Inc now needs to respond,” Dr Subramanian said.

Mr Devendra Chawla, Co-Chair, FICCI Retail and Internal Trade Committee & MD and CEO, Spencer’s Retail Limited and Nature’s Basket Ltd said that under the Atmanirbhar Bharat, an eco-system is being formed for the manufacturing sector. It is important for India to have a strong manufacturing base in order to increase the exports from the country. We need to focus on becoming a value-added manufacturing economy with high skill sets, he emphasized.

Mr Chetan Krishnaswamy, Vice President, Public Policy, Amazon said that Atmanirbharta is multi-dimensional and the recent reforms announced by the government will help the industry in the long-term. For e-commerce sector to grow further, there is a need for the industry to take note of the animal spirit that exits in rural India and hinterlands and tap the potential, he added.

Mr Adarsh Menon, Senior Vice President & Head, Flipkart Wholesale & Walmart India said the pandemic has brought to light the ability for digital companies to innovate. MSMEs play an important role in the economy and technology along with other digital tools will help them tap the domestic and global supply chains, he said.

Mr Sanjay Kumar, Partner – Public Policy and Tax, Deloitte India moderated the webinar.

Devdiscourse |

'Consumers adapted to post-COVID reality quickly in retail through digital, omni channels'

Consumers have quickly responded to the changed circumstances post the COVID-19 outbreak by opting for e-commerce and omni channel services, industry leaders said on Friday. There has been a shift in consumer behaviour in favour of digital, affecting the preferences and purchase decisions, they said at a virtual event organised by industry chamber Ficci. The retailers are also bracing to face the changes and are innovating by using QR codes, providing more digital information at the stores and investing in digital tools, they added.

"The amount of change that happened in the last six months is tectonic and the lockdown has impacted the human and consumer behaviour," L'Oreal India Managing Director Amit Jain said. There has been massive rebound in the trade of goods directly related to basic human needs, he said, adding consumers have moved away from several discretionary products like make-up because of re-prioritisation in purchases. People are "embracing digital across entertainment services, health, education, medicine and for deliveries", he added. Bestseller India CEO and Country Head Vineet Gautam said after the lockdown, a lot of businesses have moved online. COVID-19 has put pressure on the retail industry and consumers have also adapted to the omni channel very fast, he noted. "The biggest change in consumer behaviour we have seen, (is) that the consumer is still not confident to move to brick and mortar. People come but the time spent in the store has been reduced," he said. Besides, window shopping by consumers has reduced and only the 'clear intent' consumers are coming in, he said. "If our stores were seeing 100 footfalls pre-COVID, today we have only 40 footfalls. 60 per cent window-shoppers have moved out but the value has increased," he said. However, he added that consumers are expected to return to the stores as in India the nature of shopping is still experiential. "The biggest shift that will happen is that online would become a large piece of our business and digital-first is going to be the main thing," Gautam said. "We also have to re-train our people and invest in digital." E-pharmacy 1MG's co-founder and CEO Prashant Tandon said COVID-19 was a "huge structural boost" for the online pharmacy industry. What has happened on the policy front in three-four weeks of the lockdown for the industry would normally have taken couple of years, he emphasised.

"A sector which was on the periphery has moved to the mainstream very fast, as the healthcare moves at a glacial speed," he said, adding the pandemic has forced people to adopt a more innovative approach after they ran out of options. This requires behavioural and mindset changes at many levels, including consumers, doctors, health professionals, insurance and pharma companies as well as the regulators, Tandon said.

"COVID made them all move at the pace we like," he added. Swiggy CEO Sriharsha Majety said recovery in the market was faster than expected and full recovery is likely by December. "Preferences of consumers in terms of restaurants to which they have ordered was very experimentative in the past but right now a big shift is favour of known brands and reputed brands and ordering more for groups," he said. He also said now ordering food online is part of entertainment and with IPL, there is a surge in orders..

Yahoo News |

'Consumers adapted to post-COVID reality quickly in retail through digital, omni channels'

Consumers have quickly responded to the changed circumstances post the COVID-19 outbreak by opting for e-commerce and omni channel services, industry leaders said on Friday.

There has been a shift in consumer behaviour in favour of digital, affecting the preferences and purchase decisions, they said at a virtual event organised by industry chamber Ficci.

The retailers are also bracing to face the changes and are innovating by using QR codes, providing more digital information at the stores and investing in digital tools, they added.

'The amount of change that happened in the last six months is tectonic and the lockdown has impacted the human and consumer behaviour,' L'Oreal India Managing Director Amit Jain said.

There has been massive rebound in the trade of goods directly related to basic human needs, he said, adding consumers have moved away from several discretionary products like make-up because of re-prioritisation in purchases.

People are 'embracing digital across entertainment services, health, education, medicine and for deliveries', he added.

Bestseller India CEO and Country Head Vineet Gautam said after the lockdown, a lot of businesses have moved online.

COVID-19 has put pressure on the retail industry and consumers have also adapted to the omni channel very fast, he noted.

'The biggest change in consumer behaviour we have seen, (is) that the consumer is still not confident to move to brick and mortar. People come but the time spent in the store has been reduced,' he said.

Besides, window shopping by consumers has reduced and only the 'clear intent' consumers are coming in, he said.

'If our stores were seeing 100 footfalls pre-COVID, today we have only 40 footfalls. 60 per cent window-shoppers have moved out but the value has increased,' he said.

However, he added that consumers are expected to return to the stores as in India the nature of shopping is still experiential.

'The biggest shift that will happen is that online would become a large piece of our business and digital-first is going to be the main thing,' Gautam said. 'We also have to re-train our people and invest in digital.' E-pharmacy 1MG's co-founder and CEO Prashant Tandon said COVID-19 was a 'huge structural boost' for the online pharmacy industry.

What has happened on the policy front in three-four weeks of the lockdown for the industry would normally have taken couple of years, he emphasised.

'A sector which was on the periphery has moved to the mainstream very fast, as the healthcare moves at a glacial speed,' he said, adding the pandemic has forced people to adopt a more innovative approach after they ran out of options.

This requires behavioural and mindset changes at many levels, including consumers, doctors, health professionals, insurance and pharma companies as well as the regulators, Tandon said.

'COVID made them all move at the pace we like,' he added.

Swiggy CEO Sriharsha Majety said recovery in the market was faster than expected and full recovery is likely by December.

'Preferences of consumers in terms of restaurants to which they have ordered was very experimentative in the past but right now a big shift is favour of known brands and reputed brands and ordering more for groups,' he said.

He also said now ordering food online is part of entertainment and with IPL, there is a surge in orders.

Just News Day |

Govt: E-commerce policy in ‘final stages’ of drafting; retail trade policy to benefit 65m small traders

Govt: E-commerce coverage in ‘remaining levels’ of drafting; retail commerce coverage to profit 65m small merchants

Consumers across age groups have turned to e-commerce platforms to meet their consumption needs, including essentials.

The launch of an e-commerce coverage can be at a time when the sector is witnessing elevated competitors from a brand new set of gamers.

India’s e-commerce coverage, which has been within the works for over two years, is more likely to be out quickly as the federal government is within the “remaining levels” of drafting it together with a bunch of different insurance policies. Addressing a FICCI occasion on Wednesday, Minister of State for Commerce and Business Ministry Som Parkash mentioned that “we’re within the remaining stage of drafting a Nationwide Logistics Coverage, New Industrial Coverage, e-commerce Coverage and Nationwide Retail Commerce coverage.” The minister added that the brand new Nationwide Retail Commerce Coverage “is being formulated to help the event of the sector that can profit 65 million small merchants. These endeavours together with the help of the trade would assist in contributing a major chunk to India’s GDP.”

The federal government had launched the draft e-commerce coverage again in February final yr specializing in making certain a level-playing subject between on-line and offline retailers together with knowledge safety and knowledge storage norms, removing fakes from on-line marketplaces, and extra. The ultimate coverage is more likely to be out by finish of this yr. The Nationwide Retail Commerce coverage, however, would concentrate on making a “to create conducive atmosphere for retail commerce together with by simplifying guidelines and rules hindering the expansion of retail sector,” commerce and trade Minister Piyush Piyush Goyal had mentioned in a written reply to the Lok Sabha in March this yr.

“Retail has a implausible alternative to reinvent itself to serve prospects and shoppers within the pandemic,” mentioned Raghava Rao, Co-Chair FICCI E-Commerce Committee and Vice President, Finance and CFO-Amazon Vendor Providers throughout the FICCI occasion.

Additionally learn: Experience-sharing restoration for Uber, Rapido, others hinge on bikes, autos; cab-booking sees least comeback

The launch of an e-commerce coverage can be at a time when the sector is witnessing elevated competitors from a brand new set of gamers. Whereas Amazon and Flipkart have dominated the sector over the previous a few years, new incumbents together with Mukesh Ambani’s JioMart would result in extra decisions for shoppers and probably extra reductions and presents with a number of gross sales all year long as corporations look to draw the following set of 100 million customers coming on-line from Tier-II and past cities.

Financial Express |

India Inc needs to respond to various reform measures of govt: CEA K V Subramanian

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser K V Subramanian said on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

“If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital,” he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

“So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings,” he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

“Now India Inc actually needs to respond. We have enabled labour laws reforms etc…There are enough and more opportunities for ethical wealth creation to be done in Indian context…this is something that I would like widespread in India Inc,” he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Business Standard |

India Inc needs to respond to various reform measures of govt: CEA

India Inc needs to respond to various reform, undertaken by the government to revive economic growth that was hurt in the Covid-19 pandemic, said Chief Economic Adviser K V Subramanian on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

"If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital," he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

"So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings," he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

"Now India Inc actually needs to respond. We have enabled labour laws reforms etc...There are enough and more opportunities for ethical wealth creation to be done in Indian context...this is something that I would like widespread in India Inc," he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Live Mint |

India Inc needs to respond to various reform measures of govt: CEA Subramanian

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser KV Subramanian said on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

"If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital," he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

"So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings," he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

"Now India Inc actually needs to respond. We have enabled labour laws reforms etc...There are enough and more opportunities for ethical wealth creation to be done in Indian context...this is something that I would like widespread in India Inc," he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Live Mint |

FMCG firms bat for digital first strategy once virus subsides

There is a need to swiftly adopt digital strategies and cater to consumers online as several brands have seen an uptick in e-commerce orders since the lockdown, according to executives in the fast-moving consumer goods industry.

Addressing an event organised by the Federation of Indian Chambers of Commerce and Industry (Ficci), executives from FMCG firms and others said on Friday that in a post-covid world, companies will need to think digital first.

Prasun Basu, president, South Asia zone, Nielsen Global Connect said several companies will have to undergo a ‘rebound, reboot and reinvent’ framework of recovery following the pandemic. Basu said on the consumer behaviour side, a lot has changed including in consumer mindspace, buying and stocking patterns, and the way media and content are consumed. “Even channels of transaction and purchase are changing," he said.

“The biggest shift that will happen is that online will become a large piece of our business and maybe digital first is now going to be the main thing," said Vineet Gautam, chief executive and country head, BESTSELLER India that retails clothing brands such as Jack and Jones, Vero Moda, Only in India.

Gautam said the retailer already draws a large part of its sales online but the pandemic has prompted the company to try out new ways of reaching out to shoppers, including social commerce.

“WhatsApp video calls have been a big saviour, where people call our stores and place orders. Consumers are very happy having a conversation on a video call and shopping, and then opting for hyperlocal delivery," he said.

India’s offline retailers have been talking about converting to omni-channel retail for sometime. However, not all have delved into connecting their offline stores to e-commerce. The pandemic has re-established the need for retailers to serve more shoppers on both channels.

“We’ve all spoken for five or six years about omni-channel, but there was no real ‘omni’ happening in India. Suddenly, I think covid put pressure on all of us. And the consumers also adapted very, very fast," he said.

Gautam said the retailer’s offline stores were back to 80% of pre-covid levels with week-on-week improvement in business.

Amit Jain, Managing Director, L’Oréal India said covid has led to diversification and a re-boot of go-to-market strategies for FMCG companies.

“All of this was sitting in the textbook so far as India is concerned, but now we see this huge change," he said.

ET Now |

India Inc needs to respond to various reform measures of govt: CEA

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser K V Subramanian said on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

"If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well. But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital," he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production. Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

"So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings," he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

"Now India Inc actually needs to respond. We have enabled labour laws reforms etc...There are enough and more opportunities for ethical wealth creation to be done in Indian context...this is something that I would like widespread in India Inc," he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities. Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

ET CIO |

Use of technology in retail going to stay, say industry captains

Adoption of digital technology by retailers and consumers has been accelerated during the COVID-19 pandemic and is going to stay, industry leaders said on Thursday. The use of technology has changed the way consumers shop and it is now playing an expanded role across sectors, industry leaders said in a panel discussion.

De Beers India Managing Director Sachin Jain said an average consumer coming into the outlet today, has gone through the product digitally at least seven to eight times whether transacting or not is a different issue.

"That narrative is going to be permanent," he said adding, "I also foresee that the whole augmented area and artificial intelligence and visualisation of the product at home is going to increase."

According to him, this shift in technology has to be incorporated into physical stores as well and omni channel is the way forward for the retail.

Pepperfry Founder & CEO Ambareesh Murty said that there is a fundamental change in consumer behaviour as he is looking convince from buying from home.

"It is going to stay and not going anywhere as once the consumer sees the benefit to it, there is no reason to go back and retract from that path," said Murty while participating in a virtual panel discussion at a FICCI event here.

While Zydus Wellness CEO Tarun Arora said consumer's "focus on health and wellness would be rather permanent now."

"The information-seeking behaviour would remain, that part change would be there," he said.

The trust factor has become more important and people now read the pack and remain focused on buying certain kind of products.

People have become more "experiential, information seeking," he said. "People have realised that immunity is not through booster shots but it is through what you eat. Food has become far more evolved overnight. You want food that works," he added.

Amul Managing Director R S Sodhi said after the pandemic e-commerce has multiplied three times, though modern trade has suffered.

The consumer in food has shifted more on loose and unbranded to packed and branded product. People have also shifted towards a more trustworthy brand and also on the affordable brand because the earning has also been impacted.

While in smaller cities people have shifted to smaller packs but branded packs.

"In the bigger cities, sales of bigger packs increased as the frequency of sales dropped," he said.

The New Indian Express |

India Inc needs to respond to various reform measures of govt, says Chief Economic Adviser Subramanian

India Inc needs to respond to various reform measures, including in the labour sector, undertaken by the government to accelerate the growth impacted by the COVID-19 pandemic, Chief Economic Adviser K V Subramanian said on Friday.

He emphasised that India is the only country which utilised the opportunity provided by the current crisis to unleash the second generation reforms that are focused on factor markets.

"If you look at the reforms that have happened since 1991, most of those reforms were primarily focused on product markets, including the reforms that were launched by the Atal Bihari Vajpayee government as well.

"But now when you look at the reforms that have been launched together with some of the previous ones, like IBC (Insolvency and Bankruptcy Code), (they are) basically an attempt to reform the capital," he said.

IBC is followed by labour reforms, he said, adding that cost of labour is an important factor of production.

Agriculture, which is another important factor, is part of the primary sector, the CEA noted.

"So, when you take these into account, there is a very important theme of Aatmanirbhar Bharat which is primarily about relying on the private sector enterprise and on the efficiency that private sector brings," he said at an event organised by FICCI.

Subramanian said these reforms signal that the intent of this government is to rely on markets and that efficiency is primarily brought in by the private sector.

"Now India Inc actually needs to respond. We have enabled labour laws reforms etc. There are enough and more opportunities for ethical wealth creation to be done in Indian context. This is something that I would like widespread in India Inc," he said.

Observing that the idea of Aatmanirbhar Bharat is not anathema to competition, he said self-reliance can never happen without adequate capabilities.

Capabilities are never built in a vacuum but they are built only by competing with the best, he added.

Business Standard |

Consumers adapted to post-Covid reality in retail via e-commerce: Industry

Consumers have quickly responded to the changed circumstances post the COVID-19 outbreak by opting for e-commerce and omni channel services, industry leaders said on Friday.

There has been a shift in consumer behaviour in favour of digital, affecting the preferences and purchase decisions, they said at a virtual event organised by industry chamber FICCI.

The retailers are also bracing to face the changes and are innovating by using QR codes, providing more digital information at the stores and investing in digital tools, they added.

"The amount of change that happened in the last six months is tectonic and the lockdown has impacted the human and consumer behaviour," L'Oreal India Managing Director Amit Jain said.

There has been massive rebound in the trade of goods directly related to basic human needs, he said, adding consumers have moved away from several discretionary products like make-up because of re-prioritisation in purchases.

People are "embracing digital across entertainment services, health, education, medicine and for deliveries", he added.

Bestseller India CEO and Country Head Vineet Gautam said after the lockdown, a lot of businesses have moved online.

COVID-19 has put pressure on the retail industry and consumers have also adapted to the omni channel very fast, he noted.

"The biggest change in consumer behaviour we have seen, (is) that the consumer is still not confident to move to brick and mortar. People come but the time spent in the store has been reduced," he said.

Besides, window shopping by consumers has reduced and only the 'clear intent' consumers are coming in, he said.

"If our stores were seeing 100 footfalls pre-COVID, today we have only 40 footfalls. 60 per cent window-shoppers have moved out but the value has increased," he said.

However, he added that consumers are expected to return to the stores as in India the nature of shopping is still experiential.

"The biggest shift that will happen is that online would become a large piece of our business and digital-first is going to be the main thing," Gautam said. "We also have to re-train our people and invest in digital."

E-pharmacy 1MG's co-founder and CEO Prashant Tandon said COVID-19 was a "huge structural boost" for the online pharmacy industry.

What has happened on the policy front in three-four weeks of the lockdown for the industry would normally have taken couple of years, he emphasised.

"A sector which was on the periphery has moved to the mainstream very fast, as the healthcare moves at a glacial speed," he said, adding the pandemic has forced people to adopt a more innovative approach after they ran out of options.

This requires behavioural and mindset changes at many levels, including consumers, doctors, health professionals, insurance and pharma companies as well as the regulators, Tandon said.

"COVID made them all move at the pace we like," he added.

Swiggy CEO Sriharsha Majety said recovery in the market was faster than expected and full recovery is likely by December.

"Preferences of consumers in terms of restaurants to which they have ordered was very experimentative in the past but right now a big shift is favour of known brands and reputed brands and ordering more for groups," he said.

He also said now ordering food online is part of entertainment and with IPL, there is a surge in orders.

Kashmir Images |

Lockdowns have changed consumer buying behaviour; omni-channel strategy key to biz growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers’ buying behaviour and hyperlocal distribution model, and distribution alliances and an omni-channel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI.

As per the report, called ‘REBOOT’, while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

“The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious,” Deloitte India Partner Rajat Wahi said.

He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omni-channel retail to acquire and serve customers.

“As brands adapt to the ‘new normal’, the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future,” Wahi said.

The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

“COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution,” it said.

The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

“As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021,” the report said.

It pointed out that the companies had to reconfigure their distribution models to explore omni-channel models.

“The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that,” it added.

The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour.

As businesses need to realign their business models and partnerships, enhance consumer experience through technology and analytics, build resilient distribution, develop their omni-channel presence, operate efficiently, and thrive by focusing on sustainability, the report said.

KNN |

Govt is in final stages of drafting new National Retail Trade Policy: Som Parkash

Minister of State for Commerce & Industry, Som Parkash has said that the government is in the final stages to launch the new National Retail Trade Policy.

Addressing the inaugural virtual session of 'FICCI MASSMERIZE 2020', on Wednesday, Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

'We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he added.

"It is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," he said.

He further stated that trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

"DPIIT has always been in the forefront in ensuring that investments come in this sector," Parkash stated.

He also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

Parkash said that COVID-19 has had an impact on the people, economy and the businesses. The industry has worked along with the government to contain the spread of the virus.

"The Government has already launched a series of programs to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance," he noted.

He also added that in the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government.

TVJ |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday.

The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said while addressing the virtual session of "FICCI Massmerize 2020".

"It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

"The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance," he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government.

Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds — online and offline — a perfect integration of digital and physical, he added.

"It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology," Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said.

Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis.

"Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

"With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large," he said.

The Dialogue |

e-Commerce and National Retail Trade Policies soon

The Union government is in the final stages to launch the much-awaited e-commerce and national retail trade policies.

Som Parkash, the Minister of State for Commerce and Industry, made an announcement in this regard while addressing the virtual session of 'FICCI Massmerize 2020' on Wednesday.

He said the government will extend all support to the 65 million small traders involved in e-commerce and retail industries.

"Policies are being formulated to support the development of the sector that will benefit 65 million small traders. This along with the support of the industry would help in contributing a significant chunk to India's GDP,” he said.

The minister further said, "The government has already launched a series of programs to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance.”

Outlook |

Use of technology in retail going to stay, say industry captains

Adoption of digital technology by retailers and consumers has been accelerated during the COVID-19 pandemic and is going to stay, industry leaders said on Thursday. The use of technology has changed the way consumers shop and it is now playing an expanded role across sectors, industry leaders said in a panel discussion.

De Beers India Managing Director Sachin Jain said an average consumer coming into the outlet today, has gone through the product digitally at least seven to eight times whether transacting or not is a different issue.

“That narrative is going to be permanent,” he said adding, “I also foresee that the whole augmented area and artificial intelligence and visualisation of the product at home is going to increase.”

According to him, this shift in technology has to be incorporated into physical stores as well and omni channel is the way forward for the retail.

Pepperfry Founder & CEO Ambareesh Murty said that there is a fundamental change in consumer behaviour as he is looking convince from buying from home.

“It is going to stay and not going anywhere as once the consumer sees the benefit to it, there is no reason to go back and retract from that path,” said Murty while participating in a virtual panel discussion at a FICCI event here.

While Zydus Wellness CEO Tarun Arora said consumer’s “focus on health and wellness would be rather permanent now.”

"The information-seeking behaviour would remain, that part change would be there," he said. The trust factor has become more important and people now read the pack and remain focused on buying certain kind of products.

People have become more “experiential, information seeking,” he said. "People have realised that immunity is not through booster shots but it is through what you eat. Food has become far more evolved overnight. You want food that works,” he added.

Amul Managing Director R S Sodhi said after the pandemic e-commerce has multiplied three times, though modern trade has suffered.

The consumer in food has shifted more on loose and unbranded to packed and branded product. People have also shifted towards a more trustworthy brand and also on the affordable brand because the earning has also been impacted.

While in smaller cities people have shifted to smaller packs but branded packs.

“In the bigger cities, sales of bigger packs increased as the frequency of sales dropped,” he said.

The Pioneer |

New National Retail Trade Policy in final stages: Minister

The Government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

“We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy,” he said at the inaugural virtual session of ‘FICCI MASSMERIZE 2020’.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India’s GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country’s image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

“In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government,” he said.

The Free Press Journal |

Growth of e-commerce in grocery channels irreversible; will co-exist with general trade: HUL CMD

Growth of e-commerce in the grocery segment is "irreversible" but kirana stores and modern trade channels would also remain relevant, Hindustan Unilever CMD Sanjiv Mehta said on Wednesday.

Mehta also said rural sales are growing faster than the urban markets and would sustain depending on the support provided by the government.

The recent farm reforms are in the right direction and would result in more technology and capital for the sector, he added.

"The growth of the e-commerce is clearly irreversible but the way I look at India, general trade, modern trade, e-commerce will co-exist and India is not a country where the general trade would disappear, let's be absolutely clear about that," said Mehta.

He was speaking at a panel discussion at 'Massmerize 2020', a conference organised by industry body FICCI.

The share of general trade, which includes small shops and kirana stores, may come down but it would be a "fatal mistake" to write its obituary, Mehta emphasised.

"No, it is not going to happen and even after 10 years, the biggest channel would be general trade," he said.

Mehta, who is also the vice president of FICCI and chairs the FICCI FMCG Committee, said Indian general trade is "unique in many ways" and the cost of distribution is on its side.

"The cost of distribution in the grocery channels is absolutely fine....During this period, we have seen the benefit of proximity. People have gravitated to the nearby grocery shops because of the sheer convenience," he pointed out.

However, he added that general trade would also be digitised and connected.

Talking about modern trade, he said that after two decades, it has now firmly established itself.

He agreed with METRO Cash & Carry India Managing Director and CEO Arvind Mediratta, who earlier at the event said people go to modern trade outlets like malls and hypermarkets for the sheer experience.

"As modern trade goes to tier II and III cities, it is going to fillip in those cities and omni channel is going to be a bigger part of modern trade channels for the sheer convenience and benefits," Mehta added.

Echoing his views, Hershey India Managing Director Herjit S Bhalla, who was moderating the session, said general trade is going to stay and it is also adopting modern techniques.

"General trade is going to stay and its not going anywhere. If we actually look back at it, there is lot of e-com kind of behaviour by general trade as they are delivering on a phone call and talks to you," he said.

Even during the peak of the lockdown, it was general trade which emerged as the saviour for people due to its proximity, he added.

P&G India Sub-Continent CEO and MD Madhusudan Gopalan said the online segment's share is going to increase.

"There is going to be work to be done, both on the part of the online retailers and also on part of brands if you want to keep this trajectory growing," he added.

On rural sales, Mehta said the runway to grow in rural India is massive.

Rural markets are showing higher growth in FMCG sales than urban areas, he said, adding that the recent farm reforms would lead to higher incomes in the rural areas.

India Updates |

'Unconventional, agile and tech-driven strategies to help reboot consumer industry'

The COVID-19 pandemic had brought about a paradigm shift in consumer behaviour and brands would need to adapt to this change by rebooting their businesses and adopting a ‘phygital’ approach with omni channel presence to capitalise in the new environment, a Deloitte-FICCI Reboot report said on Wednesday.

The report had analysed the changing pattern of the retail market during the pandemic and brought out case studies of successful brand strategies that worked during this difficult period for businesses.

The report had brought out the importance of omni channel presence of brands to maximise gains in the changed business environment while enhancing consumer experience to the maximum.

The existential issues in this difficult time need to be sorted out by adopting a phygital approach, the report said. What this means is that as digital-savvy consumers look for a mix of digital and physical engagements, retailers would need to build an omni channel presence to provide best-in-class customer experience.

The fourth edition of the report is built on a six-step approach viz businesses need to ‘Realign’ their models and partnerships, ‘Enhance’ consumer experience through technology and Analytics, ‘Build’ resilient distribution, develop their ‘Omni-channel’ presence, ‘Operate’ efficiently, and ‘Thrive’ by focusing on sustainability.

“While the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers. The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious. This has created new opportunities for businesses to develop hyper-local delivery models, use conversational AI, build omni-channel retail, etc. to acquire and serve customers,” Rajat Wahi, Partner, Deloitte India, said.

The report has said that as brands adapt to the ‘new normal’, the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future.

It cited certain trends that make a visible appearance in the marketplace. This includes acceleration in e-commerce sales as stay-home phenomena drove significant purchases through e-commerce, increased demand from rural areas as Covid-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution.

Moreover, the focus of consumers on health, hygiene, and nutrition had grown. Health concerns and the need to build immunity have led consumers to buy home sanitation and immunity boosting products.

As a result, these categories have seen major growth since March 2020 and this is likely to continue into 2021.

The pandemic has also put sustainability in the spotlight and companies are now seeing sustainability through the lens of growth as well as bottom line, and using their sustainability initiatives to better engage with their customers.

India Retailing |

Growth of e-commerce in grocery channels irreversible; will co-exist with general trade: HUL CMD Sanjiv Mehta

Growth of e-commerce in the grocery segment is “irreversible” but kirana stores and modern trade channels would also remain relevant, Hindustan Unilever CMD Sanjiv Mehta said on Wednesday.

According to a PTI report: Mehta also said rural sales are growing faster than the urban markets and would sustain depending on the support provided by the government.

The recent farm reforms are in the right direction and would result in more technology and capital for the sector, he added.

“The growth of the e-commerce is clearly irreversible but the way I look at India, general trade, modern trade, e-commerce will co-exist and India is not a country where the general trade would disappear, let’s be absolutely clear about that,” Mehta was quoted by PTI as saying.
He was speaking at a panel discussion at ‘Massmerize 2020’, a conference organised by industry body FICCI.

The share of general trade, which includes small shops and kirana stores, may come down but it would be a “fatal mistake” to write its obituary, Mehta emphasised.

“No, it is not going to happen and even after 10 years, the biggest channel would be general trade,” he said.

Mehta, who is also the vice president of FICCI and chairs the FICCI FMCG Committee, said Indian general trade is “unique in many ways” and the cost of distribution is on its side.

“The cost of distribution in the grocery channels is absolutely fine….During this period, we have seen the benefit of proximity. People have gravitated to the nearby grocery shops because of the sheer convenience,” he was quoted by PTI as saying.

However, he added that general trade would also be digitised and connected.

Talking about modern trade, he said that after two decades, it has now firmly established itself.

He agreed with METRO Cash & Carry India Managing Director and CEO Arvind Mediratta, who earlier at the event said people go to modern trade outlets like malls and hypermarkets for the sheer experience.

“As modern trade goes to tier II and III cities, it is going to fillip in those cities and omni channel is going to be a bigger part of modern trade channels for the sheer convenience and benefits,” Mehta added.

Echoing his views, Hershey India Managing Director Herjit S Bhalla, who was moderating the session, said general trade is going to stay and it is also adopting modern techniques.

“General trade is going to stay and its not going anywhere. If we actually look back at it, there is lot of e-com kind of behaviour by general trade as they are delivering on a phone call and talks to you,” he was quoted by PTI as saying.

Even during the peak of the lockdown, it was general trade which emerged as the saviour for people due to its proximity, he added.

P&G India Sub-Continent CEO and MD Madhusudan Gopalan said the online segment’s share is going to increase.

“There is going to be work to be done, both on the part of the online retailers and also on part of brands if you want to keep this trajectory growing,” he was quoted by PTI as saying.

On rural sales, Mehta said the runway to grow in rural India is massive.

Rural markets are showing higher growth in FMCG sales than urban areas, he said, adding that the recent farm reforms would lead to higher incomes in the rural areas.

The Sentinel |

'New National Retail Trade Policy in final stages'

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

"We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy," he said at the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India's GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

Parkash said that COVID-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

Logistic Insider |

Govt in the final stage of drafting e-commerce Policy: Som Parkash

Union Minister of State for Commerce and Industry Som Parkash has informed that the government is in the final stage of drafting the national policies for e-commerce, logistics , retail trade and industry.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said while addressing the virtual session of "FICCI Massmerize 2020".

The minister further informed that the government will extend all possible support to the e-commerce and retail industries through various policies.

"It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said.

Trade, e-commerce and FMCG companies play a significant role in India along with catering to a large consumer base that offers numerous opportunities for every player in this sector.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government.

While shedding light about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds — both online and offline — a perfect association of digital and physical, he said.

Mr Mehta also addressed how omnichannel has had a tremendous impact and companies are trying to utilize these to give consumers a seamless experience across different channels.

"With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large," said Amazon Seller Services Vice President (Finance) and CFO Raghava Rao who believes that retail will have a fantastic opportunity to redeem and reinvent itself to serve customers and consumers in the pandemic.

Investment Guru India |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

"We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy," he said at the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India's GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

"In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government," he said.

The Hindu Business Line |

E-comm key for FMCG sector, but general trade here to stay: Experts

Speakers at FICCI event highlight the opportunities that Covid has opened up

With the accelerated adoption of digital platforms for purchases and payments by consumers in the pandemic times, the e-commerce and omni-channel strategies have become critical for the FMCG and retail sectors. Leading players believe that the e-commerce channel, especially in the grocery business, will continue to witness growth. At the same time, general trade and modern trade outlets are expected to continue to play a key role.

Speaking at a panel discussion at an event organised by FICCI on Wednesday, Sanjiv Mehta, CMD, Hindustan Unilever, said that while the growth of e-commerce channel is irreversible, the pandemic also led to a renaissance of kirana stores as consumers gravitated towards their neighbourhood grocery stores for convenience. “General trade, modern trade and e-commerce channels will co-exist. India is not a country where the general trade will disappear. The share of general trade channel may come down but it will continue to be the biggest channel. But I believe the general trade will get digitised,” he said.

Replying to a query on rural growth in the FMCG sector, Mehta said in the pre-Covid times, growth of FMCG in rural India had come down and there was a clear visible stress. But factors such as government’s schemes and a decent harvest have given a fillip to rural consumption in the pandemic times. He said that though it’s early to say whether this rural demand growth will sustain, if economic activity picks up and with the recent introduction of agri-reforms by the government, it may.

Opportunity in crisis

Mehta said that to be efficient and effective in the times of such crisis, brands will need to focus on assessing consumers’ unmet demands, understanding consumers’ behaviour, maintaining consistent supplies and offering seamless experience to consumers across channels. “Every crisis catalyses a new wave of change and Covid-19 has led to the adoption of digital as the new way of life,” he added.

As per industry estimates, the contribution of e-commerce channel to the FMCG industry has increased to about 3-4 per cent in the last few months from the earlier levels of 1.5-2 per cent. Madhusudan Gopalan, CEO & MD, P&G India Sub-Continent said, there has been a huge trajectory change on the grocery part of online retailing. “I think it’s fair to say that the trajectory will continue to trend up. What is unknown is whether the accelerated slope of growth in grocery will continue. But one can say with a fair degree of confidence that the salience will grow. This is not going to happen automatically and there is a lot of work to be done by online retailers and brands.”

Meanwhile, during the inaugural session of the event, Arvind Mediratta, MD & CEO, Metro Cash & Carry India, said that brick and mortar stores will continue to play an important role but will need to focus on technological innovations to enhance customer experience.

“Brick and mortar stores have a huge opportunity to embrace technology and offer the best of both worlds. With customers wanting cashless and contactless shopping experience, it has become pertinent for businesses to have an omni-channel approach. Use of Augmented and Virtual Reality, interactive kiosks for easy product information and self check-outs will pave the way for an immersive shopping experience,” he added.

Business Today |

Growth of e-commerce in grocery sector 'irreversible': HUL CMD Sanjiv Mehta

Growth of e-commerce in the grocery segment is "irreversible" but kirana stores and modern trade channels would also remain relevant, Hindustan Unilever CMD Sanjiv Mehta said on Wednesday. Mehta also said rural sales are growing faster than the urban markets and would sustain depending on the support provided by the government.

The recent farm reforms are in the right direction and would result in more technology and capital for the sector, he added. "The growth of the e-commerce is clearly irreversible but the way I look at India, general trade, modern trade, e-commerce will co-exist and India is not a country where the general trade would disappear, let's be absolutely clear about that," said Mehta.

He was speaking at a panel discussion at 'Massmerize 2020', a conference organised by industry body FICCI. The share of general trade, which includes small shops and kirana stores, may come down but it would be a "fatal mistake" to write its obituary, Mehta emphasised.

"No, it is not going to happen and even after 10 years, the biggest channel would be general trade," he said. Mehta, who is also the vice president of FICCI and chairs the FICCI FMCG Committee, said Indian general trade is "unique in many ways" and the cost of distribution is on its side.

"The cost of distribution in the grocery channels is absolutely fine....During this period, we have seen the benefit of proximity. People have gravitated to the nearby grocery shops because of the sheer convenience," he pointed out. However, he added that general trade would also be digitised and connected. Talking about modern trade, he said that after two decades, it has now firmly established itself.

He agreed with METRO Cash & Carry India Managing Director and CEO Arvind Mediratta, who earlier at the event said people go to modern trade outlets like malls and hypermarkets for the sheer experience. "As modern trade goes to tier II and III cities, it is going to fillip in those cities and omni channel is going to be a bigger part of modern trade channels for the sheer convenience and benefits," Mehta added.

Echoing his views, Hershey India Managing Director Herjit S Bhalla, who was moderating the session, said general trade is going to stay and it is also adopting modern techniques. "General trade is going to stay and its not going anywhere. If we actually look back at it, there is lot of e-com kind of behaviour by general trade as they are delivering on a phone call and talks to you," he said.

Even during the peak of the lockdown, it was general trade which emerged as the saviour for people due to its proximity, he added. P&G India Sub-Continent CEO and MD Madhusudan Gopalan said the online segment's share is going to increase.

"There is going to be work to be done, both on the part of the online retailers and also on part of brands if you want to keep this trajectory growing," he added. On rural sales, Mehta said the runway to grow in rural India is massive.

Rural markets are showing higher growth in FMCG sales than urban areas, he said, adding that the recent farm reforms would lead to higher incomes in the rural areas.

Plunge Daily |

Rural sales growing faster than urban markets: HUL Sanjiv Mehta

Rural sales are growing faster than the urban markets and would sustain depending on the government’s support, says Hindustan Unilever CMD Sanjiv Mehta. He said the recent farm reforms are in the right direction and would result in more technology and capital for the sector. Mehta highlighted that rural markets are showing higher growth in FMCG sales than urban areas, with the recent farm reforms set to bring about higher incomes in the rural areas.

“The growth of the e-commerce is clearly irreversible but the way I look at India, general trade, modern trade, e-commerce will co-exist and India is not only a country where the general trade would disappear,” Mehta said at a panel discussion at Massmerize 2020, which was organized by the FICCI. “The share of general trade, which includes small shops and kirana stores may come down but it would be a fatal mistake to write its obituary.”

Mehta, who is also the vice president of FICCI and chairs the FICCI FMCG Committee, pointed out that the cost of distribution in the grocery channels is absolutely fine, as there has been the benefit of proximity. He explained that people have gravitated to the nearby grocery shops because of the sheer convenience. The executive added that general trade would also be digitized and connected. “As modern trade goes to tier II and III cities, it is going to fillip in those cities and omni channel is going to be a bigger part of modern trade channels for the sheer convenience and benefits.”

Herjit S Bhalla, Hershey India Managing Director, believes general trade, which is also adopting modern techniques, is going to stay. “General trade is going to stay and its not going anywhere. If we actually look back at it, there is lot of e-com kind of behavior by general trade, as they are delivering on a phone call and talks to you,” Bhalla said. “Even during the peak of the lockdown, it was general trade which emerged as the savior for people due to its proximity.”

Daily Hunt |

Govt in final stages of launching new National Retail Trade Policy, says Som Parkash

The government is in the final stages of launching the new National Retail Trade Policy, said Minister of State (MoS) for Commerce and Industry, Som Parkash on Wednesday.

"The policy is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said addressing the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The MoS further said that the government will extend support to the e-commerce and retail industry through various policies. "We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said.

Parkash further stated that trade, e-commerce and fast-moving consumer goods (FMCG) companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

"Department for Promotion of Industry and Internal Trade (DPIIT) has always been at the forefront in ensuring that investments come in this sector," said Parkash.

He also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

The Union Minister said that although COVID-19 has had an impact on people, economy and businesses, the government has already launched a series of programs to transform India into a global economic hub and is working on the vision of 'minimum government and maximum governance'.

Sanjiv Mehta, Vice President, FICCI and Chair, FICCI FMCG Committee and CMD, Hindustan Unilever Ltd and President, Unilever South Asia said that the world we live will be very different post-COVID-19.

"But a crisis of this magnitude also has the potential to re-shape the world order. Certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis. Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," Mehta added.

Daiji World |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

"We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy," he said at the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India's GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

"In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government," he said.

ET Now |

HUL CMD: Move towards increasing share of e-commerce in grocery irreversible

Hindustan Lever's CMD Sanjiv Mehta has said that the move towards an increasing share of e-commerce in grocery shopping will be irreversible in a post-COVID world, though the benefit of proximity has led to a renaissance of local grocery stores in India. Though the pandemic has caused a slowdown, he pointed to rising consumption in rural areas due to MNREGA benefits being given to migrants who have returned to villages. On a lighter note, he said that the importance of hygiene taught by the pandemic has done away the need for his company to market the behaviour of handwashing with soap.

Speaking at a FICCI event, Mehta stressed upon the need to realign consumer priorities for the new normal, to focus on sustainability to thrive during the pandemic. He said that India should look at renewable energy with the same passion as electrification of villages, and pointed to the need for better adaptability to recuperate better from the current economic crisis. He stated that distribution channels and supply lines need to be kept strong to ensure medical supplies across India and to protect the marginal sections of the population.

With no playbook for crisis navigation, he stressed upon the need for a strong character as part of effective leadership to unleash the full potential of companies and employees. However, he cautioned for setting boundaries in Work from home to account for discipline, flexibility and time for family.

Madhusudan Gopalan, CEO and MD for P&G in the Indian subcontinent, said that the huge trajectory change for e-commerce will continue to remain accelerated as the pandemic continues. Stressing on the need to compensate the off-hand office talks which took place when colleagues spoke to each other in pre-COVID physical workspaces, he advocated the need to reach out for office colleagues to bond over virtual networks.

He pointed to changing consumer needs over time, since Gillette saw low sales in the early days of lockdown as people didn't shave. However, people not being able to go to salons eventually started shaving at home and the demand for razors picked up. He said the companies will have to look at demand from a "fit for use" lens, look at right packaging and delivery to attract consumers in a post-COVID world.

Yahoo Finance |

Growth of e-commerce in grocery channels irreversible; will co-exist with general trade: HUL CMD

Growth of e-commerce in the grocery segment is 'irreversible' but kirana stores and modern trade channels would also remain relevant, Hindustan Unilever CMD Sanjiv Mehta said on Wednesday.

Mehta also said rural sales are growing faster than the urban markets and would sustain depending on the support provided by the government.

The recent farm reforms are in the right direction and would result in more technology and capital for the sector, he added.

'The growth of the e-commerce is clearly irreversible but the way I look at India, general trade, modern trade, e-commerce will co-exist and India is not a country where the general trade would disappear, let's be absolutely clear about that,' said Mehta.

He was speaking at a panel discussion at 'Massmerize 2020', a conference organised by industry body FICCI.

The share of general trade, which includes small shops and kirana stores, may come down but it would be a 'fatal mistake' to write its obituary, Mehta emphasised.

'No, it is not going to happen and even after 10 years, the biggest channel would be general trade,' he said.

Mehta, who is also the vice president of FICCI and chairs the FICCI FMCG Committee, said Indian general trade is 'unique in many ways' and the cost of distribution is on its side.

'The cost of distribution in the grocery channels is absolutely fine....During this period, we have seen the benefit of proximity. People have gravitated to the nearby grocery shops because of the sheer convenience,' he pointed out.

However, he added that general trade would also be digitised and connected.

Talking about modern trade, he said that after two decades, it has now firmly established itself.

He agreed with METRO Cash & Carry India Managing Director and CEO Arvind Mediratta, who earlier at the event said people go to modern trade outlets like malls and hypermarkets for the sheer experience.

'As modern trade goes to tier II and III cities, it is going to fillip in those cities and omni channel is going to be a bigger part of modern trade channels for the sheer convenience and benefits,' Mehta added.

Echoing his views, Hershey India Managing Director Herjit S Bhalla, who was moderating the session, said general trade is going to stay and it is also adopting modern techniques.

'General trade is going to stay and its not going anywhere. If we actually look back at it, there is lot of e-com kind of behaviour by general trade as they are delivering on a phone call and talks to you,' he said.

Even during the peak of the lockdown, it was general trade which emerged as the saviour for people due to its proximity, he added.

P&G India Sub-Continent CEO and MD Madhusudan Gopalan said the online segment's share is going to increase.

'There is going to be work to be done, both on the part of the online retailers and also on part of brands if you want to keep this trajectory growing,' he added.

On rural sales, Mehta said the runway to grow in rural India is massive.

Rural markets are showing higher growth in FMCG sales than urban areas, he said, adding that the recent farm reforms would lead to higher incomes in the rural areas.

CMIE |

Lockdowns created new biz opportunities, changed consumer beaviour: FICCI-Deloitte report

The Covid-19 induced lockdowns created new opportunities for businesses to develop hyper-local delivery models, use conversational artificial intelligence (AI) and build omni-channel retail to acquire and serve customers, Federation of Indian Chambers of Commerce & Industry (FICCI) and Deloitte Touche Tohmatsu India, noted, in the fourth edition of their joint report, ‘REBOOT’. The report highlighted that the prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious. Built on a six-step approach, this report emphasises the need for consumer brands to ‘REBOOT’ their businesses in view of the disruption and the changing consumer behaviour. As businesses need to ‘Realign’ their business models and partnerships, ‘Enhance’ consumer experience through technology and analytics, ‘Build’ resilient distribution, develop ‘Omni-channel’ presence, ‘Operate’ efficiently and ‘Thrive’ by focusing on sustainability.

Techno Codex |

Deloitte: Lockdowns have changed consumer buying behaviour; Omni-Channel strategy key to business growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers’ buying behaviour and hyperlocal distribution model, and distribution alliances and an omni-channel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI. As per the report, called ‘REBOOT’, while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

“The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious,” Deloitte India Partner Rajat Wahi said.

He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omni-channel retail to acquire and serve customers.

“As brands adapt to the ‘new normal’, the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future,” Wahi said.

The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

“COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution,” it said.

The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

“As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021,” the report said.

It pointed out that the companies had to reconfigure their distribution models to explore omni-channel models.

“The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that,” it added.

The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour.

As businesses need to realign their business models and partnerships, enhance consumer experience through technology and analytics, build resilient distribution, develop their omni-channel presence, operate efficiently, and thrive by focusing on sustainability, the report said.

newsd |

'Unconventional, agile and tech-driven strategies to help reboot consumer industry'

The COVID-19 pandemic had brought about a paradigm shift in consumer behaviour and brands would need to adapt to this change by rebooting their businesses and adopting a ‘phygital’ approach with omni channel presence to capitalise in the new environment, a Deloitte-FICCI Reboot report said on Wednesday.

The report had analysed the changing pattern of the retail market during the pandemic and brought out case studies of successful brand strategies that worked during this difficult period for businesses.

The report had brought out the importance of omni channel presence of brands to maximise gains in the changed business environment while enhancing consumer experience to the maximum.

The existential issues in this difficult time need to be sorted out by adopting a phygital approach, the report said. What this means is that as digital-savvy consumers look for a mix of digital and physical engagements, retailers would need to build an omni channel presence to provide best-in-class customer experience.

The fourth edition of the report is built on a six-step approach viz businesses need to ‘Realign’ their models and partnerships, ‘Enhance’ consumer experience through technology and Analytics, ‘Build’ resilient distribution, develop their ‘Omni-channel’ presence, ‘Operate’ efficiently, and ‘Thrive’ by focusing on sustainability.

“While the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers. The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious. This has created new opportunities for businesses to develop hyper-local delivery models, use conversational AI, build omni-channel retail, etc. to acquire and serve customers,” Rajat Wahi, Partner, Deloitte India, said.

The report has said that as brands adapt to the ‘new normal’, the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future.

It cited certain trends that make a visible appearance in the marketplace. This includes acceleration in e-commerce sales as stay-home phenomena drove significant purchases through e-commerce, increased demand from rural areas as Covid-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution.

Moreover, the focus of consumers on health, hygiene, and nutrition had grown. Health concerns and the need to build immunity have led consumers to buy home sanitation and immunity boosting products.

As a result, these categories have seen major growth since March 2020 and this is likely to continue into 2021.

The pandemic has also put sustainability in the spotlight and companies are now seeing sustainability through the lens of growth as well as bottom line, and using their sustainability initiatives to better engage with their customers.

Business Standard |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday.

The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said while addressing the virtual session of 'FICCI Massmerize 2020'.

"It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

"The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance," he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government.

Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds -- online and offline -- a perfect integration of digital and physical, he added.

"It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology," Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said.

Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis.

"Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

"With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large," he said.

Financial Express |

Govt: E-commerce policy in 'final stages' of drafting; retail trade policy to benefit 65m small traders

India’s e-commerce policy, which has been in the works for over two years, is likely to be out soon as the government is in the “final stages” of drafting it along with a host of other policies. Addressing a FICCI event on Wednesday, Minister of State for Commerce and Industry Ministry Som Parkash said that “we are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy.” The minister added that the new National Retail Trade Policy “is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP.”

The government had released the draft e-commerce policy back in February last year focusing on ensuring a level-playing field between online and offline retailers along with data security and data storage norms, weeding out fakes from online marketplaces, and more. The final policy is likely to be out by end of this year. The National Retail Trade policy, on the other hand, would focus on creating a “to create conducive environment for retail trade including by simplifying rules and regulations hindering the growth of retail sector,” commerce and industry Minister Piyush Piyush Goyal had said in a written reply to the Lok Sabha in March this year.

“Retail has a fantastic opportunity to reinvent itself to serve customers and consumers in the pandemic,” said Raghava Rao, Co-Chair FICCI E-Commerce Committee and Vice President, Finance and CFO-Amazon Seller Services during the FICCI event.

The launch of an e-commerce policy would be at a time when the sector is witnessing increased competition from a new set of players. While Amazon and Flipkart have dominated the sector over the past many years, new incumbents including Mukesh Ambani’s JioMart would lead to more choices for consumers and possibly more discounts and offers with multiple sales throughout the year as companies look to attract the next set of 100 million users coming online from Tier-II and beyond cities.

The Hindu Business Line |

Govt is in final stages of drafting National Retail Trade Policy

The Ministry of Commerce is in the final stages of drafting the National Retail Trade policy, and is also finalising policies for logistics, industry and e-commerce.

Speaking at a FICCI event, Som Parkash, Minister of State for Commerce & Industry, said, the National Retail Trade Policy is being formulated to support the development of the sector and will benefit 65 million small traders. “These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP,” he added.

He further stated that trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector. He added that DPIIT has always been at the forefront to ensure that investments are encouraged in this sector.

Parkash also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

ET Now |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday. The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said while addressing the virtual session of 'FICCI Massmerize 2020'. "It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector. "The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance," he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government. Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds -- online and offline -- a perfect integration of digital and physical, he added.

"It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology," Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said.

Use of augmented/ virtual reality, beacons or geofencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said. HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours that are there to stay even after the crisis.

"Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," he noted. He also said that omnichannel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to reinvent itself to serve customers and consumers in the pandemic. "With safety, convenience, and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories, and evolving business models as we seek to reboot the economy and nation at large," he said.

Devdiscourse |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday. The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said while addressing the virtual session of 'FICCI Massmerize 2020'. "It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector. "The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance," he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government. Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds -- online and offline -- a perfect integration of digital and physical, he added.

"It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology," Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said. Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis. "Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels. Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

"With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large," he said..

Devdiscourse |

Govt in final stages of launching new National Retail Trade Policy, says Som Parkash

The government is in the final stages of launching the new National Retail Trade Policy, said Minister of State (MoS) for Commerce and Industry, Som Parkash on Wednesday. "The policy is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said addressing the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The MoS further said that the government will extend support to the e-commerce and retail industry through various policies. "We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said.

Parkash further stated that trade, e-commerce and fast-moving consumer goods (FMCG) companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector. "Department for Promotion of Industry and Internal Trade (DPIIT) has always been at the forefront in ensuring that investments come in this sector," said Parkash. He also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

The Union Minister said that although COVID-19 has had an impact on people, economy and businesses, the government has already launched a series of programs to transform India into a global economic hub and is working on the vision of 'minimum government and maximum governance'. Sanjiv Mehta, Vice President, FICCI and Chair, FICCI FMCG Committee and CMD, Hindustan Unilever Ltd and President, Unilever South Asia said that the world we live will be very different post-COVID-19.

"But a crisis of this magnitude also has the potential to re-shape the world order. Certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis. Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," Mehta added.

New on News |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday.

The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

“We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy,” he said while addressing the virtual session of ‘FICCI Massmerize 2020’.

“It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP,” Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

“The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance,” he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government.

Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds — online and offline — a perfect integration of digital and physical, he added.

“It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology,” Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said.

Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis.

“Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life,” he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

“With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large,” he said.

newsd |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

“We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy,” he said at the inaugural virtual session of ‘FICCI MASSMERIZE 2020’.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India’s GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country’s image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

“In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government,” he said.

India Updates |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

“We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy,” he said at the inaugural virtual session of ‘FICCI MASSMERIZE 2020’.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India’s GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country’s image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

“In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government,” he said.

Andhram |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

“We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy,” he said at the inaugural virtual session of ‘FICCI MASSMERIZE 2020’.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India’s GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country’s image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

“In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government,” he said.

Taaza Khabar |

National policies on e-commerce, retail trade, logistics, industry in final stage of drafting: Som Parkash

Minister of state for commerce and industry Som Parkash on Wednesday said that the government is in the final stages of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy. The retail trade policy will benefit 65 million small traders, he said at an event organised by FICCI.

“It is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP,” he added.

The government has set up a National Traders’ Welfare Board aimed at welfare of traders and their employees, simplification of the Acts and rules applicable to traders, reduction of compliance burden and improvement in access to funds for traders.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The draft e-commerce policy had proposed that companies that store or mirror Indian users’ data overseas will be subject to periodic audit and a regulator for the sector and an ecommerce law that restricts information these firms can store, use, transfer, process and analyse. It also empowers the government to review, investigate and take action against any ecommerce activity that threatens the country’s security.

The draft logistics policy seeks to reduce logistics costs in the country to 10% of the GDP from around 13-14% now.

As for the new industrial policy, the government aims to create jobs for the next two decades and attract $100 billion foreign direct investment annually through it. This will be the third industrial policy, after the first in 1956 and next in 1991.

New Kerala |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

"We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy," he said at the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India's GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

"In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government," he said.

IND News |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

“We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy,” he said at the inaugural virtual session of ‘FICCI MASSMERIZE 2020’.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India’s GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country’s image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

“In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government,” he said.

Indian Patrika |

Govt: E-commerce policy in ‘final stages’ of drafting; retail trade policy to benefit 65m small traders

The launch of an e-commerce policy would be at a time when the sector is witnessing increased competition from a new set of players.

India’s e-commerce policy, which has been in the works for over two years, is likely to be out soon as the government is in the “final stages” of drafting it along with a host of other policies. Addressing a FICCI event on Wednesday, Minister of State for Commerce and Industry Ministry Som Parkash said that “we are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy.” The minister added that the new National Retail Trade Policy “is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP.”

The government had released the draft e-commerce policy back in February last year focusing on ensuring a level-playing field between online and offline retailers along with data security and data storage norms, weeding out fakes from online marketplaces, and more. The final policy is likely to be out by end of this year. The National Retail Trade policy, on the other hand, would focus on creating a “to create conducive environment for retail trade including by simplifying rules and regulations hindering the growth of retail sector,” commerce and industry Minister Piyush Piyush Goyal had said in a written reply to the Lok Sabha in March this year.
“Retail has a fantastic opportunity to reinvent itself to serve customers and consumers in the pandemic,” said Raghava Rao, Co-Chair FICCI E-Commerce Committee and Vice President, Finance and CFO-Amazon Seller Services during the FICCI event.

The launch of an e-commerce policy would be at a time when the sector is witnessing increased competition from a new set of players. While Amazon and Flipkart have dominated the sector over the past many years, new incumbents including Mukesh Ambani’s JioMart would lead to more choices for consumers and possibly more discounts and offers with multiple sales throughout the year as companies look to attract the next set of 100 million users coming online from Tier-II and beyond cities.

Business News India |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday.

The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

“We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy,” he said while addressing the virtual session of ‘FICCI Massmerize 2020’.

“It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP,” Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

“The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance,” he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government.

Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds — online and offline — a perfect integration of digital and physical, he added.

“It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology,” Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said.

Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis.

“Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life,” he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

“With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large,” he said.

Current Affairs |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday.

The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

“We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy,” he said while addressing the virtual session of ‘FICCI Massmerize 2020’.

“It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP,” Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

“The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance,” he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government.

Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds — online and offline — a perfect integration of digital and physical, he added.

“It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology,” Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said.

Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis.

“Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life,” he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

“With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large,” he said.

The Rahnuma Daily |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

“We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy,” he said at the inaugural virtual session of ‘FICCI MASSMERIZE 2020’.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India’s GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country’s image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

“In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government,” he said.

Latest LY |

Govt in final stages of launching New National Retail Trade Policy, says Som Parkash

The government is in the final stages of launching the new National Retail Trade Policy, said Minister of State (MoS) for Commerce and Industry, Som Parkash on Wednesday.

"The policy is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said addressing the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The MoS further said that the government will extend support to the e-commerce and retail industry through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said.

Parkash further stated that trade, e-commerce and fast-moving consumer goods (FMCG) companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

"Department for Promotion of Industry and Internal Trade (DPIIT) has always been at the forefront in ensuring that investments come in this sector," said Parkash. He also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

The Union Minister said that although COVID-19 has had an impact on people, economy and businesses, the government has already launched a series of programs to transform India into a global economic hub and is working on the vision of 'minimum government and maximum governance'.

Sanjiv Mehta, Vice President, FICCI and Chair, FICCI FMCG Committee and CMD, Hindustan Unilever Ltd and President, Unilever South Asia said that the world we live will be very different post-COVID-19.

"But a crisis of this magnitude also has the potential to re-shape the world order. Certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis. Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," Mehta added.

The Economic Times |

Lockdowns have changed consumer buying behaviour; omni-channel strategy key to business growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers' buying behaviour and hyperlocal distribution model, and distribution alliances and an omni-channel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI. As per the report, called 'REBOOT', while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

"The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious," Deloitte India Partner Rajat Wahi said.

He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omni-channel retail to acquire and serve customers.

"As brands adapt to the 'new normal', the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future," Wahi said.

The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

"COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution," it said.

The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

"As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021," the report said.

It pointed out that the companies had to reconfigure their distribution models to explore omni-channel models.

"The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that," it added.

The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour.

As businesses need to realign their business models and partnerships, enhance consumer experience through technology and analytics, build resilient distribution, develop their omni-channel presence, operate efficiently, and thrive by focusing on sustainability, the report said.

Financial Express |

Lockdowns have changed consumer buying behaviour; omni-channel strategy key to biz growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers’ buying behaviour and hyperlocal distribution model, and distribution alliances and an omni-channel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI.

As per the report, called ‘REBOOT’, while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

“The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious,” Deloitte India Partner Rajat Wahi said.

He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omni-channel retail to acquire and serve customers.

“As brands adapt to the ‘new normal’, the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future,” Wahi said.

The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

“COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution,” it said.

The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

“As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021,” the report said.

It pointed out that the companies had to reconfigure their distribution models to explore omni-channel models.

“The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that,” it added.

The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour.

As businesses need to realign their business models and partnerships, enhance consumer experience through technology and analytics, build resilient distribution, develop their omni-channel presence, operate efficiently, and thrive by focusing on sustainability, the report said.

ET Now |

Lockdowns have changed consumer buying behaviour; omni-channel strategy key to biz growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers' buying behaviour and hyperlocal distribution model, and distribution alliances and an omnichannel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI.

As per the report, called 'REBOOT', while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

"The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious," Deloitte India Partner Rajat Wahi said. He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omnichannel retail to acquire and serve customers.

"As brands adapt to the 'new normal', the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future," Wahi said. The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

"COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution," it said. The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

"As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021," the report said.

It pointed out that the companies had to reconfigure their distribution models to explore omnichannel models. "The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that," it added.

The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour. As businesses need to realign their business models and partnerships, enhance the consumer experience through technology and analytics, build resilient distribution, develop their omnichannel presence, operate efficiently, and thrive by focusing on sustainability, the report said.

Outlook |

Lockdowns have changed consumer buying behaviour; omni-channel strategy key to biz growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers' buying behaviour and hyperlocal distribution model, and distribution alliances and an omni-channel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI.

As per the report, called ''REBOOT'', while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

"The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious," Deloitte India Partner Rajat Wahi said.

He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omni-channel retail to acquire and serve customers.

"As brands adapt to the ''new normal'', the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future," Wahi said.

The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

"COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution," it said.

The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

"As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021," the report said.

It pointed out that the companies had to reconfigure their distribution models to explore omni-channel models.

"The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that," it added.

The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour.

As businesses need to realign their business models and partnerships, enhance consumer experience through technology and analytics, build resilient distribution, develop their omni-channel presence, operate efficiently, and thrive by focusing on sustainability, the report said.

Business World |

Lockdowns have changed consumer buying behaviour; Omni-Channel strategy key to biz growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers' buying behaviour and hyperlocal distribution model, and distribution alliances and an omni-channel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI.

As per the report, called 'REBOOT', while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

'The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious,' Deloitte India Partner Rajat Wahi said.

He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omni-channel retail to acquire and serve customers.

'As brands adapt to the 'new normal', the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future,' Wahi said.

The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

'COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution,' it said.

The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

'As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021,' the report said.

It pointed out that the companies had to reconfigure their distribution models to explore omni-channel models.

'The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that,' it added.

The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour.

As businesses need to realign their business models and partnerships, enhance consumer experience through technology and analytics, build resilient distribution, develop their omni-channel presence, operate efficiently, and thrive by focusing on sustainability, the report said.

Money Life |

Unconventional, Agile and Tech-driven strategies to help Reboot Consumer Industry: Report

The COVID-19 pandemic has brought about a paradigm shift in consumer behaviour and brands would need to adapt to this change by rebooting their businesses and adopting a 'phygital' approach with omni channel presence to capitalise in the new environment, a Deloitte-FICCI Reboot report said on Wednesday.
The report had analysed the changing pattern of the retail market during the pandemic and brought out case studies of successful brand strategies that worked during this difficult period for businesses.
The report has brought out the importance of omni channel presence of brands to maximise gains in the changed business environment while enhancing consumer experience to the maximum.
The existential issues in this difficult time need to be sorted out by adopting a phygital approach, the report says. What this means is that as digital-savvy consumers look for a mix of digital and physical engagements, retailers would need to build an omni channel presence to provide best-in-class customer experience.
The fourth edition of the report is built on a six-step approach, viz., businesses need to 'Realign' their models and partnerships, 'Enhance' consumer experience through technology and Analytics, 'Build' resilient distribution, develop their 'Omni-channel' presence, 'Operate' efficiently, and 'Thrive' by focusing on sustainability.
"While the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers. The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious. This has created new opportunities for businesses to develop hyper-local delivery models, use conversational AI, build omni-channel retail, etc. to acquire and serve customers," Rajat Wahi, partner, Deloitte India, said.
The report has said that as brands adapt to the 'new normal', the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future.
It cited certain trends that make a visible appearance in the marketplace. This includes acceleration in e-commerce sales as stay-home phenomena drove significant purchases through e-commerce, increased demand from rural areas as COVID-19 has led to massive reverse migration which, in turn, has driven up rural demand, favouring companies with strong rural distribution.
Moreover, the focus of consumers on health, hygiene, and nutrition had grown. Health concerns and the need to build immunity have led consumers to buy home sanitation and immunity boosting products.
As a result, these categories have seen major growth since March 2020 and this is likely to continue into 2021.
The pandemic has also put sustainability in the spotlight and companies are now seeing sustainability through the lens of growth as well as bottom-line and using their sustainability initiatives to better engage with their customers.

Deccan News |

Agile and technology-driven strategies to recharge the consumer industry

Brands will have to adapt a ‘fygital’ approach with omni-channel presence, a Deloitte-FICCI Reboot report said on Wednesday.

The report analyzed the changing pattern of the retail market during the pandemic and highlighted case studies on successful branding strategies that worked for businesses during this difficult period.

It emphasizes the importance of omni-channel presence, while maximizing the consumer experience.

The fourth edition of the report is based on a six-step approach, namely that businesses need to ‘Adjust’ their models and partnerships, ‘Improve’ consumer experience through technology and Analytics, ‘build’ resilient distribution, their Omni-channel presence must develop, ‘Do’ effectively and ‘thrive’ by focusing on sustainability.

‘While the pandemic has brought disruptions, most companies have adapted by building agile business models and innovative marketing strategies, along with expanding their presence through online platforms to reach their consumers. The prolonged closures have also dramatically changed the buying behavior of consumers, while making them more health and socially aware. It has created new opportunities for businesses to develop hyper-local delivery models, use conversational AI, build omnichannel retail, and so on to acquire and serve customers, ”said Rajat Wahi, Partner, Deloitte India.

It cited certain trends that place a visible appearance on the market. This includes acceleration in e-commerce sales, as the home phenomena have caused significant purchases through e-commerce, increasing demand from rural areas. Covid-19 led to massive reverse migration, which in turn fueled demand for the rural lands, favoring enterprises with a strong rural distribution.

The focus of consumers on health, hygiene and nutrition has increased. Health concerns and the need to build up immunity have led consumers to buy household products and immunity-enhancing products.

As a result, these categories have experienced great growth since March 2020 and are likely to continue until 2021.

The pandemic has also put sustainability in the spotlight and companies are now seeing sustainability in terms of growth and the bottom line, using their sustainability initiatives to better engage with their customers.

Telangana Today |

Agile and tech-driven strategies to help reboot consumer industry

Brands would need to adapt a ‘phygital’ approach with omni channel presence, a Deloitte-FICCI Reboot report said on Wednesday.

The report had analysed the changing pattern of the retail market during the pandemic and brought out case studies of successful brand strategies that worked during this difficult period for businesses.

It stressed the the importance of omni channel presence while enhancing consumer experience to the maximum.

The fourth edition of the report is built on a six-step approach viz businesses need to ‘Realign’ their models and partnerships, ‘Enhance’ consumer experience through technology and Analytics, ‘Build’ resilient distribution, develop their ‘Omni-channel’ presence, ‘Operate’ efficiently, and ‘Thrive’ by focusing on sustainability.

“While the pandemic brought disruptions, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers. The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious. This has created new opportunities for businesses to develop hyper-local delivery models, use conversational AI, build omni-channel retail, etc. to acquire and serve customers,” Rajat Wahi, Partner, Deloitte India, said.

It cited certain trends that make a visible appearance in the marketplace. This includes acceleration in e-commerce sales as stay-home phenomena drove significant purchases through e-commerce, increased demand from rural areas as Covid-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution.

The focus of consumers on health, hygiene, and nutrition had grown. Health concerns and the need to build immunity have led consumers to buy home sanitation and immunity boosting products.

As a result, these categories have seen major growth since March 2020 and this is likely to continue into 2021.

The pandemic has also put sustainability in the spotlight and companies are now seeing sustainability through the lens of growth as well as bottom line, and using their sustainability initiatives to better engage with their customers.

Devdiscourse |

Lockdowns have changed consumer buying behaviour; omni-channel strategy key to biz growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers' buying behaviour and hyperlocal distribution model, and distribution alliances and an omni-channel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI. As per the report, called 'REBOOT', while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

"The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious," Deloitte India Partner Rajat Wahi said. He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omni-channel retail to acquire and serve customers.

"As brands adapt to the 'new normal', the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future," Wahi said. The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

"COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution," it said. The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

"As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021," the report said. It pointed out that the companies had to reconfigure their distribution models to explore omni-channel models.

"The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that," it added. The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour.

As businesses need to realign their business models and partnerships, enhance consumer experience through technology and analytics, build resilient distribution, develop their omni-channel presence, operate efficiently, and thrive by focusing on sustainability, the report said..

Rural Marketing |

Unconventional, agile, and tech-driven strategies to help REBOOT consumer market: FICCI-Deloitte report

FICCI and Deloitte Touche Tohmatsu India today launched the fourth edition of their joint report called REBOOT in the annual edition of MASSMERIZE 2020, FICCI’s flagship annual Retail, e-Commerce and FMCG conference by FICCI’s Consumer Committee that works towards collaborating with leaders and stakeholders from the industry.

Built on a six-step approach, this report emphasises the need for consumer brands to R.E.B.O.O.T their businesses in view of the disruption and the changing consumer behaviour. As businesses need to ‘Realign’ their business models and partnerships, ‘Enhance’ consumer experience through technology and analytics, ‘Build’ resilient distribution, develop ‘Omni-channel’ presence, ‘Operate’ efficiently, and ‘Thrive’ by focusing on sustainability.

Speaking on the occasion, Dilip Chenoy, Secretary General, FICCI said, “India has emerged as one of the most attractive investment destinations with the increasing disposable income, rapid industrialisation, and a shift in the demographic pattern. Amongst the significant contributors to this growth story have been the consumer-centric sectors, such as retail, FMCG, and e-commerce.” India is one of the world’s fastest-growing major economies and has immense potential. “Increased involvement and participation of businesses with the help of supportive policy measures will help capitalise on this potential and achieve the societal goals of inclusive growth and empowerment of the people,” Chenoy added.

Speaking on the launch of the report, Rajat Wahi, Partner, Deloitte India, said, “While the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers. The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious.”

This has created new opportunities for businesses to develop hyper-local delivery models, use conversational Artificial Intelligence (AI) and build omnichannel retail to acquire and serve customers.

“As brands adapt to the new normal’, the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future,” Wahi further added.

Report Snapshot

6 Key COVID-19 impact on consumer market
  1. Acceleration in e-commerce sales as stay-home phenomena drove significant purchases through e-commerce.
  2. Increased demand from rural markets: COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution
  3. Focus on health, hygiene, and nutrition: Health concerns and the need to build immunity has led consumers to buy home sanitation and immunity-boosting products. As a result, these categories have seen major growth since March 2020 and this is likely to continue into 2021.
  4. Reconfigure distribution to explore omnichannel models: The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that.
    A known global retail giant saw 141 percent digital sales through innovative channels, such as s-commerce, despite majority stores having remained open. Companies using digital channels, such as e-commerce, omnichannel, and direct-to-consumer were able to adapt and recover faster during the pandemic.
  5. Existence through phygital approach: As digital-savvy consumers look for a mix of digital and physical engagements, it has led to retailers building an omnichannel presence to provide best-in-class customer experience.
  6. The COVID-19 crisis has put sustainability in the spotlight and companies are now seeing sustainability through the lens of growth as well as bottom line and using their sustainability initiatives to better engage with their customers.

Indo Asian Commodities |

India to introduce logistics, e-commerce national policy, says minister

India’s junior Commerce Minister Som Prakash said on Wednesday that the government will soon be introducing a national policy for logistics as well as e-commerce to boost the retail trade following the devastation suffered in the global pandemic.

He told the Federation of Indian Chambers of Commerce and Industry (FICCI) annual retail event called MASSMERIZE that the government was working together to meet the target of Atmanirbhar Bharat (Self Reliant India).

The minister said that the government recognised that the business paradigms had completely changed following the Covid-19 outbreak and would accordingly help the industry to adapt to new conditions.

Sanjeev Mehta, Chairman and Managing Director of Hindustan Unilever Ltd, said the industry needed to develop resilience and adaptability as it would be short-sighted to call the pandemic a Black Swan event as a number of similar phenomenon that may be compared to a herd of “stampeding elephants.”

He said businesses will need to be realigned for better capability and products aligned accordingly. “Every office will have to have the highest standards of safety and efficiency of operations.”

Mehta said that the success of future businesses will depend on how agile they are in responding to the changing customer needs. “Covid-19 will make digital as a way of life around the world and in India,” he added.

Raghava Rao, chief financial officer at Amazon, said that though the pandemic had impacted consumer behaviour in ways such as people were not venturing outdoors that much and resulted in more people working from home, there was a spike in consumption of certain items like leisure wear, home entertainment products and fitness goods.

Work from home had also increased demand for products like laptops.

He urged physical retail businesses to redevelop their models so that they have a bigger online presence.

Rao said that such a shift in consumer behaviour is now becoming pronounced even in smaller Indian towns and cities.

Arvind Mediratta. managing director and CEO of METRO Cash & Carry, said that people are preferring to shop either online or from their neighbourhood stores.

While business prospects for physical retail remain viable, they will have to adapt their business models to attract customers, he said.

Mediratta said sales personnel at stores do not often know enough about products that they are selling so companies may look to set up kiosks that provide customers all the information they need.

Physical retail stores may also have options such as self check-outs or buying online and then collecting the goods physically from a store.

Mediratta said that their retail business that catered to physical grocers have seen a 30% rise through the lockdown period by adapting such practices.

Live Mint |

Covid-19 is accelerating consumer shift towards online, say top FMCG cos

The covid-19 pandemic is accelerating a consumer shift to online in a big way, the country’s top consumer goods companies and retailers said on Wednesday, even though they maintained that India will continue to see several retail formats co-exist.

“We’re seeing a huge trajectory change on the grocery part of online retailing. A lot of folks predict that this accelerated trajectory is here to stay, I think it’s fair to say that the trajectory is going to continue to increase... Whether that accelerated slope will continue or not is a matter of conjecture, but I think one can say with a fair degree of confidence that the salience will grow," said Madhusudan Gopalan, chief executive officer and managing director, P&G India Sub-Continent, at the three-day FICCI-Massmerize virtual conference that started on Wednesday.

Gopalan, whose company sells brands such as Ariel detergents and Olay face creams, said e-commerce will grow when online retailers and brands work together.

Retailers and makers of fast-moving consumer goods, struck by the covid 19 lockdown, were forced to re-look at the ways they reach consumers, especially as demand for goods of daily use continued to be high. Since then, several consumer goods companies have identified clear trends and chased those—including heightened usage of hygiene products and expanding their reach to shoppers on e-commerce and the humble grocer.

Covid is leaving a long-lasting impact on consumer behaviour globally, said Sanjiv Mehta, chair of FICCI’s FMCG committee and chairman and managing Director, Hindustan Unilever Ltd.

“There are certain trends which are becoming very discernible—covid cocooning, e-everything, clean living, the fetish for cleanliness, contactless culture, health and well-being, value seeking. These are very clearly behaviours which I believe are there to stay even after the crisis is gone."

Mehta said the move toward e-commerce is now “irreversible".

However, the top boss of India’s leading packaged consumer goods company argued that unlike other markets, India’s retail trade will continue to see general, modern and e-retail co-exist. But he pointed to “digitization" of the country’s small retail stores.

“But there is one unique aspect of India—the grocery channel in India is unique in many ways. The second is the cost of distribution in the grocery channel is absolutely fine, it is not something that is very high…And during this period, we have seen the benefit of proximity. People have gravitated towards the nearby neighbourhood grocery, because of sheer convenience."

As a result, India is not a country where general trade will disappear. “The share of general trade may come down. But people will make a fatal mistake if they write an obituary of general trade. No, it’s not going to happen even after 10 years, the biggest channel would still be general trade. But I would believe general trade would be a digitized general trade, it would be a connected trade," said Mehta.

Live Mint |

National retail and e-commerce policy in final stages of drafting: Som Parkash

The government is in the final stages of drafting the national logistics policy, new industrial policy, e-commerce policy and national retail trade policy, Som Parkash, Minister of State for Commerce and Industry, Government of India, said on Wednesday.

The new National Retail Trade Policy, said Parkash is being formulated to support the development of the sector that will benefit 65 million small traders. "These endeavors along with the support of the industry would help in contributing a significant chunk to India’s GDP," he said addressing a virtual event by industry body FICCI.

The government has in the past made public its efforts towards developing a National Retail Trade Policy that is said will create conducive environment for retail trade including by simplifying rules and regulations hindering the growth of retail sector. It has already put out a draft e-commerce policy.

Parkash said the government will extend all support to the large e-commerce and retail players through various policies. “We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said.

Stating that trade, e-commerce and FMCG companies have a significant presence in India, it merits that all companies benefit from the large consumer base here. “DPIIT has always been in the forefront in ensuring that investments come in this sector," said Parkash.

Outlook |

Growth of e-commerce in grocery channels irreversible; will co-exist with general trade: HUL CMD

Growth of e-commerce in the grocery segment is "irreversible" but kirana stores and modern trade channels would also remain relevant, Hindustan Unilever CMD Sanjiv Mehta said on Wednesday.

Mehta also said rural sales are growing faster than the urban markets and would sustain depending on the support provided by the government.

The recent farm reforms are in the right direction and would result in more technology and capital for the sector, he added.

"The growth of the e-commerce is clearly irreversible but the way I look at India, general trade, modern trade, e-commerce will co-exist and India is not a country where the general trade would disappear, let's be absolutely clear about that," said Mehta.

He was speaking at a panel discussion at ''Massmerize 2020'', a conference organised by industry body FICCI.

The share of general trade, which includes small shops and kirana stores, may come down but it would be a "fatal mistake" to write its obituary, Mehta emphasised.

"No, it is not going to happen and even after 10 years, the biggest channel would be general trade," he said.

Mehta, who is also the vice president of FICCI and chairs the FICCI FMCG Committee, said Indian general trade is "unique in many ways" and the cost of distribution is on its side.

"The cost of distribution in the grocery channels is absolutely fine....During this period, we have seen the benefit of proximity. People have gravitated to the nearby grocery shops because of the sheer convenience," he pointed out.

However, he added that general trade would also be digitised and connected.

Talking about modern trade, he said that after two decades, it has now firmly established itself.

He agreed with METRO Cash & Carry India Managing Director and CEO Arvind Mediratta, who earlier at the event said people go to modern trade outlets like malls and hypermarkets for the sheer experience.

"As modern trade goes to tier II and III cities, it is going to fillip in those cities and omni channel is going to be a bigger part of modern trade channels for the sheer convenience and benefits," Mehta added.

Echoing his views, Hershey India Managing Director Herjit S Bhalla, who was moderating the session, said general trade is going to stay and it is also adopting modern techniques.

"General trade is going to stay and its not going anywhere. If we actually look back at it, there is lot of e-com kind of behaviour by general trade as they are delivering on a phone call and talks to you," he said.

Even during the peak of the lockdown, it was general trade which emerged as the saviour for people due to its proximity, he added.

P&G India Sub-Continent CEO and MD Madhusudan Gopalan said the online segment's share is going to increase.

"There is going to be work to be done, both on the part of the online retailers and also on part of brands if you want to keep this trajectory growing," he added.

On rural sales, Mehta said the runway to grow in rural India is massive.

Rural markets are showing higher growth in FMCG sales than urban areas, he said, adding that the recent farm reforms would lead to higher incomes in the rural areas.

Outlook |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday.

The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said while addressing the virtual session of ''FICCI Massmerize 2020''.

"It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

"The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance," he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government.

Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds -- online and offline -- a perfect integration of digital and physical, he added.

"It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology," Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said.

Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis.

"Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

"With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large," he said.

Business World |

Govt in final stages of launching New National Retail Trade Policy, says Som Parkash

The government is in the final stages of launching the new National Retail Trade Policy, said Minister of State (MoS) for Commerce and Industry, Som Parkash on Wednesday.

"The policy is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said addressing the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The MoS further said that the government will extend support to the e-commerce and retail industry through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said.

Parkash further stated that trade, e-commerce and fast-moving consumer goods (FMCG) companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

"Department for Promotion of Industry and Internal Trade (DPIIT) has always been at the forefront in ensuring that investments come in this sector," said Parkash.

He also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

The Union Minister said that although COVID-19 has had an impact on people, economy and businesses, the government has already launched a series of programs to transform India into a global economic hub and is working on the vision of 'minimum government and maximum governance'.

Sanjiv Mehta, Vice President, FICCI and Chair, FICCI FMCG Committee and CMD, Hindustan Unilever Ltd and President, Unilever South Asia said that the world we live will be very different post-COVID-19.

"But a crisis of this magnitude also has the potential to re-shape the world order. Certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis. Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," Mehta added.

Timesnest |

Top FMCG companies say move towards increasing share of e-commerce irreversible

“We seeing an enormous trajectory change on the grocery a part of on-line retailing. Plenty of of us predict that this accelerated trajectory is right here to remain, I believe it is truthful to say that the trajectory goes to proceed to extend…Whether or not that accelerated slope will proceed or not is a matter of conjecture, however I believe one can say with a good diploma of confidence that the salience will develop” stated Madhusudan Gopalan, CEO and MD, P&G India Sub-Continent, talking on the three-day-long FICCI-MASSMERIZE digital convention that began on Wednesday.

Gopalanm whose firm sells manufacturers reminiscent of Ariel detergents and Olay face lotions, stated e-commerce will develop when on-line retailers and types work collectively.

Retailers and makers of fast-moving shopper items, struck by the covid 19 lockdown, have been pressured to re-look on the methods they attain shoppers, particularly as demand for items of each day use continued to be excessive. Since then, a number of shopper items corporations have outlined clear traits and chased these—together with heightened utilization of hygiene merchandise and increasing their attain to consumers on e-commerce and the standard grocer.

Covid, stated Sanjiv Mehta, chair of FICCI’s FMCG committee and Chairman and Managing Director, Hindustan Unilever Ltd, is having long-lasting affect on shopper behaviour globally.

“There are specific traits which have gotten very discernible, covid cocooning, e-everything, clear residing, the fetish for cleanliness, contactless tradition, well being and wellbeing, worth in search of—these are very clearly behaviors, which I imagine are there to remain even after the disaster is gone,” he stated on Wednesday.

Mehta stated that the transfer in direction of e-commerce is now an “irreversible” development.

Nonetheless, the highest boss of India’s main packaged shopper items firm argued that not like different markets India’s retail commerce will proceed to see basic, fashionable and e-retail co-exist. However he pointed to “digitization” of the nation’s small retail shops.

“However there may be one distinctive facet of India—the grocery channel in India is exclusive in some ways. The second is the price of distribution within the grocery channel is completely effective, it’s not one thing that may be very excessive…And through this era, we now have seen the advantage of proximity. Folks have gravitated in direction of the close by the neighbourhood grocery, as a result of sheer comfort,” he stated.

In consequence, India isn’t a rustic the place basic commerce will disappear.

“The share of basic commerce could come down. However individuals will do a deadly mistake in the event that they write an obituary of basic commerce. No, it is not going to occur even after 10 years, the largest channel would nonetheless be basic commerce. However I might imagine basic commerce could be a digitized basic commerce, it could be a linked commerce,” stated Mehta.

Hindustan Unilever Ltd., noticed share of e-commerce double from the yr in the past interval, the corporate stated in its September quarter earnings. HUL now attracts 6% of its enterprise from gross sales on-line.

Market researcher Nielsen estimates e-commerce to be 3% of total FMCG within the nation with conventional commerce nonetheless being a dominant gross sales channel with over 10 million retailers servicing India.

The dialog and acceleration in direction of on-line comes at a time when the pandemic has helped new customers in India get on-line to purchase low-value objects of each day use. Whereas fashionable commerce continues to stay below stress as shopper keep away from busy massive shops, e-commerce has yielded some advantages.

Nonetheless, the actual adoption of the channel will emerge as soon as the pandemic abates.

Retailer Metro Money and Carry that operates wholesale shops in India stated the pandemic helped the retailer promote extra laptops, telephones, workplace furnishings, microwave ovens, vacuum cleaners, energy washer, however it additionally noticed consumers flip on-line.

“There are two different basic shifts that we’re seeing—individuals are preferring to buy on-line, and individuals are additionally preferring to purchase from the neighbourhood shops. There’s additionally a choice for contactless fee and supply. Now, this has had some setback for the brick and mortar retail, particularly those that have been very sluggish in adapting to the altering shopper wants, Arvind Mediratta, Managing Director and CEO, METRO Money & Carry India and chair FICCI retail and inner commerce committee, stated. Mediratta stated offline retailers now must study from on-line retailers. He, nevertheless, added that the long run for bodily retail in India remains to be “very vivid”.

Money Control |

Govt in final stage of drafting e-commerce policy, says Union Minister Som Parkash

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday. The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said while addressing the virtual session of 'FICCI Massmerize 2020'. "It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector. "The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance," he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government. Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds — online and offline — a perfect integration of digital and physical, he added.

"It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology," Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said. Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis. "Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels. Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

"With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large," he said.

SME Times |

'New National Retail Trade Policy in soon'

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

"We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy," he said at the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India's GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

"In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government," he said.

Rural Marketing |

Govt to come up with new National Retail Trade Policy soon: Minister

The Government of India is in the final stage to launch the new National Retail Trade Policy. It is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP,” Som Parkash, Minister of State for Commerce & Industry said today.

Addressing the inaugural virtual session of ‘FICCI MASSMERIZE 2020’, Parkash said that the government would extend all support to the e-commerce and retail industry through various policies. “We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, E-commerce Policy and National Retail Trade policy,” he said.

He further said that trade, e-commerce and FMCG companies had a huge presence in India along with a large consumer base that provided numerous opportunities for every player in this sector. “DPIIT has always been in the forefront in ensuring that investments come in this sector,” said Parkash.

He also urged the industry to come forward and contribute towards making India Aatmanirbhar (self-reliant) in every possible way and to elevate the country’s image globally.

Parkash said that COVID-19 has had an impact on the people, economy and the businesses. The industry has worked along with the government to contain the spread of the virus. "The Government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance,” he noted.

Speaking on the occasion, Sanjiv Mehta, Vice President, FICCI & Chair, FICCI FMCG Committee and CMD, Hindustan Unilever said that the world we live would be very different post COVID-19. “But a crisis of this magnitude also has the potential to re-shape the world order. Certain trends like clean living and contactless culture are behaviours which are there to stay even after the crisis. Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life,” he added.

Mehta further said that the Omnichannel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Arvind Mediratta, Chair FICCI Retail and Internal Trade Committee and MD & CEO, METRO Cash & Carry India said, “The pandemic has brought the focus back on health, wellness, convenience categories along with home entertainment. With customers wanting cashless and contactless shopping experience today, they want the best of both worlds – online and offline- a perfect integration of digital and physical. It has become pertinent for businesses to have an Omnichannel approach. Omnichannel retailers will have to devise different ways of wowing each target segment through the right mix of innovation and technology. Use of Augmented/Virtual Reality; Beacons or Geo-fencing; Interactive Kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers.”

Raghava Rao, Co-Chair FICCI E-Commerce Committee and Vice President, Finance and CFO-Amazon Seller Services said, “Retail has a fantastic opportunity to reinvent itself to serve customers and consumers in the pandemic. With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large.’’

Herjit S Bhalla, Managing Director, Hershey India & Co- Chair FICCI FMCG Committee said, “In 2020, through the global crisis we have serendipitously discovered new opportunities. Every facet of the business and our consumers has evolved into a new paradigm - one that we are adapting and catering to at increasingly agile rates. There is no time better than now for us to hit ctrl-alt-del and reset our ways of working through innovative and entrepreneurial ideas.”

Rajat Wahi, Partner, Deloitte India said, “We are pleased to associate as the knowledge partner with FICCI on Massmerize 2020, for the 4th year in a row. Deloitte’s report called ‘REBOOT’ launched as part of this event looks at how FMCG and retail companies must reboot their businesses to better connect with Indian consumers and shoppers through technology and omni-presence, and by building a flexible distribution network.”

Dilip Chenoy, Secretary General, FICCI also shared his perspective on the future of Indian retail, FMCG and e-commerce industry.

FICCI-Deloitte report on FMCG and Retail (e-commerce) REBOOT was also released during the webinar.

Click here to see the key trends of FMCG and Retail sectors post-COVID-19, analysed by FICCI-Deloitte report.

Social News.xyz |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

"We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy," he said at the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India's GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

"In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government," he said.

Yahoo News |

Govt in final stages of launching new National Retail Trade Policy, says Som Parkash

The government is in the final stages of launching the new National Retail Trade Policy, said Minister of State (MoS) for Commerce and Industry, Som Parkash on Wednesday.

"The policy is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP," Parkash said addressing the inaugural virtual session of 'FICCI MASSMERIZE 2020'.

The MoS further said that the government will extend support to the e-commerce and retail industry through various policies.

"We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy," he said.

Parkash further stated that trade, e-commerce and fast-moving consumer goods (FMCG) companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

"Department for Promotion of Industry and Internal Trade (DPIIT) has always been at the forefront in ensuring that investments come in this sector," said Parkash.

He also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country's image globally.

The Union Minister said that although COVID-19 has had an impact on people, economy and businesses, the government has already launched a series of programs to transform India into a global economic hub and is working on the vision of 'minimum government and maximum governance'.

Sanjiv Mehta, Vice President, FICCI and Chair, FICCI FMCG Committee and CMD, Hindustan Unilever Ltd and President, Unilever South Asia said that the world we live will be very different post-COVID-19.

"But a crisis of this magnitude also has the potential to re-shape the world order. Certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis. Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life," Mehta added.

Yahoo News |

Govt in final stage of drafting e-commerce policy, says minister

The government is in the final stage of drafting the e-commerce policy and National Retail Trade policy, Union minister Som Parkash said on Wednesday.

The Minister of State for Commerce and Industry said the government will extend all support to the e-commerce and retail industries through various policies.

'We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy,' he said while addressing the virtual session of 'FICCI Massmerize 2020'.

'It (policies) is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India's GDP,' Parkash said.

Trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector.

'The government has already launched a series of programmes to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance,' he said.

In the last few years, the minister said there have been significant improvements in the ease of doing business ranking, which has been possible due to transformative measures taken by the government.

Talking about the retail industry, METRO Cash & Carry India Arvind Mediratta said that after the pandemic, customers want cashless and contactless shopping experience. They want the best of both worlds -- online and offline -- a perfect integration of digital and physical, he added.

'It has become pertinent for businesses to have an omni channel approach. Omni channel retailers will have to devise different ways of wooing each target segment through the right mix of innovation and technology,' Mediratta, who is also the Chair of FICCI Retail and Internal Trade Committee, said.

Use of augmented/ virtual reality, beacons or geo-fencing, interactive kiosks for easy product information and self check-outs are going to provide an immersive shopping experience for customers, he said.

HUL CMD Sanjiv Mehta said that certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis.

'Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life,' he noted.

He also said that omni channel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Amazon Seller Services Vice President (Finance) and CFO Raghava Rao said retail has a fantastic opportunity to re-invent itself to serve customers and consumers in the pandemic.

'With safety, convenience and digitisation emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large,' he said.

Orissa Diary |

Govt in final stages of drafting new National Retail Trade Policy: Union Minister Som Parkash

Mr Som Parkash, Minister of State for Commerce & Industry, Govt of India today said that the government is in the final stages to launch the new National Retail Trade Policy. “It is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP,” he added.

Addressing the inaugural virtual session of ‘FICCI MASSMERIZE 2020’, Mr Parkash said that the government will extend all support to the e-commerce and retail industry through various policies. ‘We are in the final stage of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy,” he said.
He further stated that trade, e-commerce and FMCG companies have a huge presence in India along with a large consumer base that provides numerous opportunities for every player in this sector. “DPIIT has always been in the forefront in ensuring that investments come in this sector,” said Mr Parkash.

He also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country’s image globally.

Mr Parkash said that COVID-19 has had an impact on the people, economy and the businesses. The industry has worked along with the government to contain the spread of the virus. “The Government has already launched a series of programs to transform India into a global economic hub. The government works on the vision of minimum government and maximum governance,” he noted.

He added that in the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government.

Mr Sanjiv Mehta, Vice President, FICCI & Chair, FICCI FMCG Committee and CMD, Hindustan Unilever Ltd & President, Unilever South Asia said that the world we live will be very different post COVID-19. “But a crisis of this magnitude also has the potential to re-shape the world order. Certain trends like clean living and contact-less culture are behaviours which are there to stay even after the crisis. Every crisis catalyses a new wave of change and COVID-19 has led to the adoption of digital as the new way of life,” he added.

Mr Mehta further said that the Omnichannel has had a big impact and companies are looking at giving consumers a seamless experience across different channels.

Mr Arvind Mediratta, Chair FICCI Retail and Internal Trade Committee and MD & CEO, METRO Cash & Carry India Pvt Ltd said, “The pandemic has brought the focus back on health, wellness, convenience categories along with home entertainment. With customers wanting cashless and contactless shopping experience today, they want best of both worlds ? online and offline- a perfect integration of digital and physical. It has become pertinent for businesses to have an Omnichannel approach. Omnichannel retailers will have to devise different ways of wowing each target segment through the right mix of innovation and technology. Use of Augmented/Virtual Reality; Beacons or Geo-fencing; Interactive Kiosks for easy product information and Self check-outs are going to provide an immersive shopping experience for customers.”

Mr Raghava Rao, Co-Chair FICCI E-Commerce Committee and Vice President, Finance and CFO-Amazon Seller Services Pvt Ltd said, “Retail has a fantastic opportunity to reinvent itself to serve customers and consumers in the pandemic. With safety, convenience and digitization emerging as new themes, I look forward to Massmerize showcasing inventions, success stories and evolving business models as we seek to reboot the economy and nation at large.”

Mr Herjit S Bhalla, Managing Director, Hershey India & Co- Chair FICCI FMCG Committee said, “In 2020, through the global crisis we have serendipitously discovered new opportunities. Every facet of the business and our consumers has evolved into a new paradigm – one that we are adapting and catering to at increasingly agile rates. There is no time better than now for us to hit ctrl-alt-del and reset our ways of working through innovative and entrepreneurial ideas.”

Mr Rajat Wahi, Partner, Deloitte India said, “We are pleased to associate as the knowledge partner with FICCI on Massmerize 2020, for the 4th year in a row since 2017. Deloitte’s report called ‘REBOOT’ launched as part of this event looks at how FMCG and retail companies must reboot their businesses to better connect with Indian consumers and shoppers through technology and omni-presence, and by building a flexible distribution network.”

Mr Dilip Chenoy, Secretary General, FICCI also shared his perspective on the future of Indian retail, FMCG and e-commerce industry.

FICCI-Deloitte report on FMCG and Retail (e-commerce) REBOOT was also released during the webinar.

The Economic Times |

Growth of e-commerce in grocery channels irreversible; will co-exist with general trade: HUL CMD Sanjiv Mehta

Growth of e-commerce in the grocery segment is "irreversible" but kirana stores and modern trade channels would also remain relevant, Hindustan Unilever CMD Sanjiv Mehta said on Wednesday.

Mehta also said rural sales are growing faster than the urban markets and would sustain depending on the support provided by the government.

The recent farm reforms are in the right direction and would result in more technology and capital for the sector, he added.

"The growth of the e-commerce is clearly irreversible but the way I look at India, general trade, modern trade, e-commerce will co-exist and India is not a country where the general trade would disappear, let's be absolutely clear about that," said Mehta.

He was speaking at a panel discussion at 'Massmerize 2020', a conference organised by industry body FICCI.

The share of general trade, which includes small shops and kirana stores, may come down but it would be a "fatal mistake" to write its obituary, Mehta emphasised.

"No, it is not going to happen and even after 10 years, the biggest channel would be general trade," he said.

Mehta, who is also the vice president of FICCI and chairs the FICCI FMCG Committee, said Indian general trade is "unique in many ways" and the cost of distribution is on its side.

"The cost of distribution in the grocery channels is absolutely fine....During this period, we have seen the benefit of proximity. People have gravitated to the nearby grocery shops because of the sheer convenience," he pointed out.

However, he added that general trade would also be digitised and connected.

Talking about modern trade, he said that after two decades, it has now firmly established itself.

He agreed with METRO Cash & Carry India Managing Director and CEO Arvind Mediratta, who earlier at the event said people go to modern trade outlets like malls and hypermarkets for the sheer experience.

"As modern trade goes to tier II and III cities, it is going to fillip in those cities and omni channel is going to be a bigger part of modern trade channels for the sheer convenience and benefits," Mehta added.

Echoing his views, Hershey India Managing Director Herjit S Bhalla, who was moderating the session, said general trade is going to stay and it is also adopting modern techniques.

"General trade is going to stay and its not going anywhere. If we actually look back at it, there is lot of e-com kind of behaviour by general trade as they are delivering on a phone call and talks to you," he said.

Even during the peak of the lockdown, it was general trade which emerged as the saviour for people due to its proximity, he added.

P&G India Sub-Continent CEO and MD Madhusudan Gopalan said the online segment's share is going to increase.

"There is going to be work to be done, both on the part of the online retailers and also on part of brands if you want to keep this trajectory growing," he added.

On rural sales, Mehta said the runway to grow in rural India is massive.

Rural markets are showing higher growth in FMCG sales than urban areas, he said, adding that the recent farm reforms would lead to higher incomes in the rural areas.

The Economic Times |

National policies on e-commerce, retail trade, logistics, industry in final stage of drafting: Som Parkash

Minister of state for commerce and industry Som Parkash on Wednesday said that the government is in the final stages of drafting a National Logistics Policy, New Industrial Policy, e-commerce Policy and National Retail Trade policy. The retail trade policy will benefit 65 million small traders, he said at an event organised by FICCI.

“It is being formulated to support the development of the sector that will benefit 65 million small traders. These endeavours along with the support of the industry would help in contributing a significant chunk to India’s GDP,” he added.

The government has set up a National Traders’ Welfare Board aimed at welfare of traders and their employees, simplification of the Acts and rules applicable to traders, reduction of compliance burden and improvement in access to funds for traders.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The draft e-commerce policy had proposed that companies that store or mirror Indian users’ data overseas will be subject to periodic audit and a regulator for the sector and an ecommerce law that restricts information these firms can store, use, transfer, process and analyse. It also empowers the government to review, investigate and take action against any ecommerce activity that threatens the country’s security.

The draft logistics policy seeks to reduce logistics costs in the country to 10% of the GDP from around 13-14% now.

As for the new industrial policy, the government aims to create jobs for the next two decades and attract $100 billion foreign direct investment annually through it. This will be the third industrial policy, after the first in 1956 and next in 1991.

The Free Press Journal |

Lockdowns have changed consumer buying behaviour; omni-channel strategy key to biz growth: Report

Coronavirus-induced lockdowns across the country have transformed consumers' buying behaviour and hyperlocal distribution model, and distribution alliances and an omni-channel strategy will be key to business growth, according to a joint report by Deloitte Touche Tohmatsu India and FICCI.

As per the report, called 'REBOOT', while the pandemic brought massive disruptions across the value chain of the consumer sector, most companies adapted by building agile business models and innovative marketing strategies, along with expanding their presence through the online platforms to reach their consumers.

"The prolonged lockdowns have also dramatically transformed consumer buying behaviour while making them more health and socially conscious," Deloitte India Partner Rajat Wahi said.

He added that this has created new opportunities for businesses to develop hyperlocal delivery models, use conversational AI (artificial intelligence) and build omni-channel retail to acquire and serve customers.

"As brands adapt to the 'new normal', the key to sustenance and growth is likely to be an agile business model that minimises disruptions in the future," Wahi said.

The report said demand for consumer goods in rural markets has increased due to the return of the migrant workers to their states due to the COVID-19 pandemic.

"COVID-19 has led to massive reverse migration, which in turn has driven up rural demand, favouring companies with strong rural distribution," it said.

The report also said health concerns and the need to build immunity have led consumers to buy home sanitation and immunity-boosting products.

"As a result, these categories have seen major growth since March 2020, and this is likely to continue into 2021," the report said.

It pointed out that the companies had to reconfigure their distribution models to explore omni-channel models.

"The pandemic, with frequent lockdowns, compelled companies to re-configure their distribution models within a short period, even forging new partnerships and alliances to achieve that," it added.

The report also emphasises on the need for consumer brands to reboot their businesses in view of the disruption and the changing consumer behaviour.

As businesses need to realign their business models and partnerships, enhance consumer experience through technology and analytics, build resilient distribution, develop their omni-channel presence, operate efficiently, and thrive by focusing on sustainability, the report said.

Forever News |

New National Retail Trade Policy in final stages: Minister

The government is in the final stages of preparing a new National Retail Trade Policy, Minister of State for Commerce and Industry Som Parkash said on Wednesday.

“We are in the final stage of drafting a National Logistics Policy, a New Industrial Policy, a e-commerce Policy and a National Retail Trade policy,” he said at the inaugural virtual session of ‘FICCI MASSMERIZE 2020’.

The national retail trade policy is being formulated to support the development of the sector that will benefit 65 million small traders, besides contributing a significant chunk to India’s GDP, he added.

Parkash said that the government will extend all support to the e-commerce and retail industry through various policies.

The minister also urged the industry to come forward and contribute towards making India Atmanirbhar in every possible way and to elevate the country’s image globally.

Parkash said that Covid-19 has had an impact on the people, economy and the businesses, but the industry has worked along with the government to contain the spread of the virus.

He also said that the government has already launched a series of programmes to transform India into a global economic hub.

“In the last few years, we have seen significant improvements in ease of doing business ranking, which has been possible due to transformative measures taken by the government,” he said.

SME Street |

Supply Chain Trends, Retail related Risk Mitigations & Post Covid Readiness discussed at HKTDC, FICCI & RAI

Hong Kong Trade Development Council (HKTDC) jointly with Federation of Indian Chambers of Commerce and Industry (FICCI) and Retailers Association of India (RAI) organised a free Webinar on “Emerging Trends in the Global Supply Chain and Retail Landscape” on 27th May 2020.

With 250+ attendees from across the country and across industry sectors, the webinar panel discussions were focused on impact assessment for the supply chain of retailers, movement of supply chain epicentres across the world, supply chain focusing on both cost reduction as well as risk mitigation, the relevance of digitalisation in a new, post-pandemic world and key challenges going forward in an uncertain, unpredictable world.

Panellists included leading industry veterans who provided relevant topical insights.

Mr. Rajesh Bhagat, Consultant South Asia, Hong Kong Trade Development Council (HKTDC) said, “HKTDC has channelized all its efforts to ensure that they are able to assist businesses from round the world to stabilise their supply chain and sourcing requirements even during this pandemic via virtual trade fairs, online marketplaces backed by customised business matching services. HKTDC would continue efforts to assist Indian exporters and MSMEs to reboot their businesses by helping them to meet either potential investors, new customers or suppliers through our various trade initiatives in Hong Kong.”

Mr. Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, “Changing consumer purchase patterns have changed and impacted the whole supply chain. Supply chain now needs to be extremely reactive to the situation, not only to survive but to thrive. Digital is the mantra of the day with every retailer, big and small, going digital to attract and keep customers”.

Mr. Sidram Kaudaki, BDM – International Sourcing, Amazon India said, “Digital shopping has increased and this helps MSMEs jumpstart their livelihood. Customer orders are spiking with sellers seeing 9x spikes in the last few days with 3.6x spike in children’s books, 31x spike in robotic vacuum cleaners and 23x spike in purchases of dishwashers.”

Mr. Malladi Dinakar, Vice President – Corporate Affairs, Kerry Indev Logistics India said, “To carry out distribution, logistics industry created a digital support system in order to fulfil delivery of orders across India in the midst of the lockdown and tightening of all resources. Going forward, one needs to keep in mind that to mitigate disruption, you must have diversity in supply base either locally or countries which are closer while also working on the development of back-up suppliers. “

The webinar was moderated by Mr. Devendra Chawla, Co-Chair, FICCI Retail & Internal Trade Committee and Managing Director & CEO, Spencer’s Retail Ltd. who summarised the webinar discussions saying, “The pandemic has forced companies to think beyond short term destruction to long term survival. The pandemic has made permanent changes in the global supply chain such as shifting and modifying of some global hubs. Efficiencies in supply chain will have to be combined with risk reduction to keep it from further disruptions. Going digital is crucial as only the agile will survive.”

APN News |

HKTDC and FICCI to hold joint webinar with RAI on strategies to manage the post-COVID 19 scenario for Retail businesses

Hong Kong Trade Development Council (HKTDC) jointly with Federation of Indian Chambers of Commerce and Industry (FICCI) and Retailers Association of India (RAI) will host a free Webinar on “Emerging Trends in the Global Supply Chain and Retail Landscape” on 27th May at 11.30 am

Relevant to the current times, the webinar will explore means, mechanisms, and strategies for Retail to tide over the post Covid crisis. Topics will focus on Global Sourcing Trends through Online and Exhibitions; Trends and Opportunities in the Logistic Sector; Current Status, Fulfillment Channels and Regulatory Aspects for E-Commerce in India and Challenges, Disruptions in Supply Chain and Way Forward for the Retail Industry.

These subjects are crucial to not only conduct business more smoothly in a fragmented world but also to ensure growth. To that end, top industry veterans like Mr. Kumar Rajagopalan, CEO, Retailers Association of India, Mr. Sidram Kaudaki, BDM – International Sourcing, Amazon India, Mr. Malladi Dinakar, Vice President – Corporate Affairs, Kerry Indev Logistics India and Mr. Rajesh Bhagat, Consultant South Asia, Hong Kong Trade Development Council will provide industry relevant insights.

The webinar will be moderated by Mr. Devendra Chawla, Co-Chair, FICCI Retail & Internal Trade Committee and Managing Director & CEO, Spencer’s Retail Limited.

India’s retail market is estimated to reach $1.1-1.3 trillion by 2025, from $0.7 trillion in 2019, growing at a CAGR of 9-11% according to a new report launched by Boston Consulting Group in collaboration with Retailers Association of India. Similarly, according to Frost & Sullivan the logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and 2025 aided due to being awarded infrastructure status which has made it easier for investment inflows and overall industry growth aided by e-commerce as well.

The webinar is relevant across the retail industry – both online and offline – to assist industry people as well as business owners get better insights into emerging aspects of retail and supply chain to strengthen procedures across verticals as well as add value to their sector.

To register for the webinar please log on to the following link to register:
https://attendee.gotowebinar.com/register/3916616955761530128

The New Indian Express |

Few welcome, some feel 'ignored' in Govt's Rs 20 lakh crore Aatmanirbhar package

The final tranche of Rs 20 lakh crore stimulus package to make India a self-reliant economy was announced on Sunday. On the final day, Finance Minister Nirmala Sitharaman and Team announced reforms in Health and Education sector, increasing allocation in MGNREGA, gave emphasis to make India more business-friendly and spoke about increasing funding to states.

While some Industry players lauded the Center's move to introduce big-ticket reforms in areas such as agriculture, MSMEs and power distribution companies during the last five days, many expressed shock to be left out completely even as their business took a big hit due to the Covid-19 pandemic.

Federation of Associations in Indian Tourism & Hospitality (FAITH) said on Sunday that the Indian tourism industry has gone into a state of disbelief and shock.

"Indian tourism travel and hospitality is said to impact 10-12% of India’s employment which is believed to cover almost 5 crore + direct and indirect jobs. The industry has gone numb from a lack of any umbrella direction from the Government or without any fiscal & monetary support," FAITH said.

It added that with no visibility of cash inflows the Indian tourism industry is now looking at large scale bankruptcies, business closures which will lead to job losses across cities, towns and hinterlands of India.

Retail association body CAIT, which has close ties with the ruling party, also expressed its grief. CAIT said that the entire trading community today is extremely upset with the Government for this 'step-motherly' treatment.

"The traders will be landing into great financial crisis on the lifting of lockdown as they will have to pay salary, interest, bank loans, taxes and various other financial obligations. It is expected that nearly 20% traders will have to wind up their business and another 10% traders dependent on these 20% traders will have to close their business. Under such a grim situation the Government has refused to handhold the traders. It’s a pity that such an important sector of the economy has been greatly overlooked," the Retail body said.

The Government also decided to overlook suggestions made by prominent industrialists and economists to pay Rs 5,000-7,500 to the most vulnerable section of society over the next three months. This, according to many experts, would have helped in creating demand in the economy. The government, however, decided to increase allocation in MGNREGA. This move was also welcomed by many.

"The increase in MGNREGA outlay by Rs 40,000 cr is quite good as it can potentially cover 2 crore of migrants who can take 100 days employment, provided there are projects," Care Ratings said.

Automobile and aviation are the two other sectors who despite holding numerous meetings with the Government in the recent past did not find any major mentioning in the package. The Telecom sector, whose services remain active in the lockdown period was also sidelined. Similarly, startups and new-age businesses who are facing the risk of going bust due to a tectonic shift in consumption behavior were left out at large in the package.

Chamber body FICCI said that while these measures will surely help the economy in the medium to long term, they are hopeful that the government would consider measures to support battered segments of the industry including tourism, hospitality, aviation and healthcare. "FICCI has requested that a minimum amount of Rs 20,000 crore be allotted for these sectors as they have seen a maximum dip in demand and will also take much longer to recover from the set-back seen," it said.

Even the struggling Real Estate, which had some takeaways in the package, felt major concerns of sector were not answered.

“Whilst we understand the constraints of the government, from the real estate sector point of view, the announcements were inadequate in addressing the issues faced by the sector. The announcements have provided for an extension of CLSS scheme and an extension of deadline by six months under RERA for registered projects as a relief to the sector. We also hope that the partial Credit Guarantee to NBFCs and HFCs will enhance liquidity support and to assuage risk concerns of lenders, thereby help the sector to remain positive during this crisis. Overall, we feel disappointed that no direct demand stimulus was announced that could have benefited the beleaguered sector,” Shishir Baijal, Chairman & Managing Director, Knight Frank India said.

ICJ 24 |

FICCI calls for stimulus of around Rs 10 lakh cr to stimulate demand, supply to avert long-term economic slowdown

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five percent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday.

“If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity,” FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman.

The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. “The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term,” she said.

“We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side,” she said.

Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing).

Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 percent lending rate) which is 0.04 percent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said. After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric.

“A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis,” said Reddy.

She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget.

An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction.

“Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth.”

Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors.

For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said.

The Dispatch |

FICCI warns of massive job losses, calls for 4 to 5 pc of GDP in stimulus package

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five per cent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday.
“If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity,” FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman.

The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. “The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term,” she said.

“We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side,” she said.

Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for an up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing).

Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 per cent lending rate) which is 0.04 per cent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said.

After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric.

“A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis,” said Reddy.

She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget.

An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction.

“Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth.”

Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors.

For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said.

The Free Press Journal |

FICCI warns of massive job losses, calls for 4 to 5% of GDP in stimulus package

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five per cent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday.

"If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity," FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman.

The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. "The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term," she said.

"We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side," she said.

Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for an up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing).

Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 per cent lending rate) which is 0.04 per cent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said.

After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric.

"A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis," said Reddy.

She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget.

An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction.

"Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth." Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors.

For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said.

First Post |

FICCI calls for stimulus of around Rs 10 lakh cr to stimulate demand, supply to avert long-term economic slowdown

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five percent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday.

"If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity," FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman.

The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. "The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term," she said.

"We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side," she said.

Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing).

Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 percent lending rate) which is 0.04 percent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said.

After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric.

"A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis," said Reddy.

She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget.

An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction.

"Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth."

Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors.

For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said.

SME Futures |

FICCI warns of massive job losses, calls for 4 to 5 per cent of GDP in stimulus package

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five per cent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday.

“If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity,” FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman. The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. “The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term,” she said.

“We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side,” she said.
Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for an up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing).

Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 per cent lending rate) which is 0.04 per cent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said.

After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric.

“A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis,” said Reddy.
She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget.

An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction.

“Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth.”

Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors.

For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said

Devdiscourse |

FICCI warns of massive job losses, calls for 4 to 5 pc of GDP in stimulus package

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five per cent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday. "If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity," FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman.

The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. "The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term," she said. "We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side," she said.

Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for an up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing). Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 per cent lending rate) which is 0.04 per cent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said.

After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric. "A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis," said Reddy.

She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget. An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction. "Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth."

Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors. For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said.

Chini Mandi |

FICCI warns of massive job losses, calls for 4 to 5 pc of GDP in stimulus package

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five per cent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday.

“If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity,” FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman. The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. “The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term,” she said.

“We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side,” she said.

Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for an up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing).

Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 per cent lending rate) which is 0.04 per cent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said.

After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric.

“A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis,” said Reddy.

She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget.

An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction.

“Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth.”

Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors.

For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said.

Times2 |

FICCI calls for stimulus of around Rs 10 lakh cr to stimulate demand, supply to avert long-term economic slowdown

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five percent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday.

“If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity,” FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman.

The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. “The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term,” she said.

“We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side,” she said.

Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing).

Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 percent lending rate) which is 0.04 percent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said.

After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric.

“A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis,” said Reddy.

She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget.

An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction.

“Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth.”

Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors.

For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said.

Business World |

FICCI warns of massive job losses, calls for 4 to 5 % of GDP in stimulus package

There is a critical and immediate need for a significant stimulus of Rs 9 lakh crore to 10 lakh crore or four to five per cent of the GDP to stimulate demand and supply for averting a long-term economic slowdown, the Federation of Indian Chambers of Commerce and Industry (FICCI) said on Monday.

"If we do not help industries (large and small), we will have large-scale job losses which will contract demand significantly and will lead to further pressure on the utilisation of businesses and their liquidity," FICCI President Sangita Reddy said in a letter to Finance Minister Nirmala Sitharaman. The situation will reduce government tax collections significantly and fiscal deficit will remain high (even without stimulus outflow) if the economic engine does not re-start, said Reddy. "The socio-economic impact of large-scale job losses and loss of demographic dividend will impact the future course of economic development even in medium-term," she said.

"We are staring at a significant contraction of demand and economy, and a cascading impact of long-term economic slowdown if the economic engine does not re-start immediately. Therefore, it is imperative for the government to immediately support the supply and demand side," she said.

Reddy called for interest-free and collateral-free loans to MSME companies (turnover of less than Rs 500 crore) for an up to 12 months period depending on the sector to enable them to cover fixed costs, salaries and other operational expenses. For non-GST paying companies, an alternate mechanism may be worked out (based on IT filing).

Even if the government was to give Rs one lakh crore of loans to MSME businesses, the cost of interest payment will be Rs 8,000 crore (assuming 8 per cent lending rate) which is 0.04 per cent of the GDP. This loan can be given with pre-conditions that businesses will continue to run and there will be no layoffs of workers, she said.

After one year, it can be converted into a grant if all conditions are met. Threshold tax collection could be one metric.

"A COVID liquidity bridge may be created to support restructuring and additional loan requirement of large companies whose balance sheets have got impaired due to COVID. This will have a huge positive impact on the entire supply chain of these companies, including many small and mid-sized vendors, which otherwise may not survive the current crisis," said Reddy.

She said the problem being faced is largely that of liquidity and immediate release of moneys stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help the situation. This may have already been provided for in the budget.

An additional sum of Rs 1 lakh crore over and above the PM Gareeb Kalyan Scheme must be earmarked and transferred to states to supplement their efforts to cater to the immediate needs of the poor and informal sector workers.

Reddy said there is a need to accelerate infrastructure spend of Rs 1.7 lakh crore already allocated in the Budget to provide immediate impetus to the economy. A significant amount of this money can go towards low-cost housing and road construction.

"Linkage of Pradhan Mantri Gram Sadak Yojana and low-cost housing construction with MNREGA workers will have a multiplier effect on the economy by putting money in the hands of people and energising 200-odd sectors related to construction. This will give significant impetus to growth."

Reddy said all recovery is dependent on consumption stimulus and survival of businesses itself. A special package is required for airlines, airport developers, hospitality and tourism, retail and healthcare sectors.

For getting the industry back on track and moving, there needs to be a robust plan for phased opening up of the economy and re-starting growth. There is also a need to evaluate inter-twined supply chains to allow specific clusters or value chains to be opened, she said.

Sputnik News |

COVID-19: Long wait for India's malls, organised retail to spring back to Pre-Pandemic scale

Confirmed COVID-19 cases in India have surpassed the 50,000 mark, with 3,561 new cases and 89 deaths since Wednesday. Per the Ministry of Health and Family Welfare, COVID-19 has claimed 1,783 lives as India extended its lockdown until 17 May.

Located opposite the City Centre metro station in India’s Noida, Logix Mall once used to treat those de-boarding the late evening train with its radiance and bellowing music from its terrace bars. And in order to unwind, people would throng the mall's multiple bars, retail outlets, food courts, and cinema complexes.

But the last 43 days of the country's national lockdown have changed everything. Now an eerie silence prevails there. The contagious virus, it seems, has put a spoke in the wheels of India's $150 billion organised retail industry.

Malls and branded retailers are the two key aspects of India’s retail narrative. For mall owners and organised retailers, it is a colossal fight, opine industry players and analysts, as Prime Minister Narendra Modi's government has not allowed the opening of malls amid crowding concerns. Local liquor shops, however, have been allowed to resume operation.

The impact has been huge, with almost 600 malls spread across the country shut for over 40 days now and the prospects of their reopening in the near future are dim.

The possibility of 30 new shopping malls spanning 14 million square feet that were likely to be built this year has receded due to the pandemic.

With malls locked down, uncertainty looms large on the organised retail sector.

According to the Indian Brand Equity Foundation (IBEF), the Indian retail industry accounts for over 10 percent of the country’s Gross Domestic Product (GDP), the nation's total output of good and services, and around eight percent of employment.

So, while mall owners face the risk of losses on rent from organised retail, which itself is facing issues ranging from supply chain, to zero sales and staring at losses of about $10 billion, the entire retail ecosystem seems to be on the brink of collapse.

Putting the retail industry challenge into perspective, Govind Shrikhande, adviser and independent director told Sputnik, “The Indian retail industry has completely stopped as stores are closed due to the pandemic. The biggest challenge for organised retail is cash and working capital. Retail is not a big margin business. The earnings before interest depreciation and tax (EBIDTA) is about 6 percent in the sector and the net earnings is in the range of 2-3 percent normally. With the pandemic still raging and lockdown at malls continuing, the earnings are highly likely to go into the negative. Commercial rent liability combined with zero sales is dealing a double whammy to organised retail in the country".

Shrikhande, who was earlier with Shopper’s Stop – a multi-brand retail outlet from the real estate firm Raheja Group, says organised retail is a $150 billion industry in the country, $25 billion of which is the organised food sector.

"If you remove the food part, at $125 billion sales annually, the almost 45 days of lockdown must have wiped out close to $10-15 billion of the industry's value", Shrikhande added.

Rent that the retailers pay to mall owners, the supply chain, and staff salaries are the key concerns of retail brands in the country.

Aditya Birla Group has a retail network of 2,714 brand stores across 750 cities in the country. “It is present across 18,000+ multi-brand outlets and 5,000+ point of sales in department stores across India", says the company website.

Chairman and Managing Director of Vmart, Lalit Agarwal sums up the challenge very succinctly. “We are facing challenges on liquidity, staff payment, working capital, and inventory. We are also negotiating our rentals with mall owners as profitability has come down due to the pandemic", Agarwal told Sputnik.

With organised retail in the doldrums due to the impact of the virus and all hinting at a renegotiation of the rent, there will be a ripple effect on mall owners as they provide leases for large stores.

ICICI Securities, in a report in mid-March, predicted that mall operators will lose about 20-25 percent of their annual revenue because of the pandemic.

“Given the evolving situation with respect to COVID-19 across India, mall operators and their tenants/retailers potentially face losses in the March-June 2020 period", the ICICI Securities report said.

“However, in the case of an improved situation from the second quarter of the current financial year onwards (July 2020), we believe that consumers will flock back to malls".

“We derive comfort on this front from the fact that Tier I malls in India have now evolved into lifestyle destinations and present a clean, safe, and easily accessible option in India’s Tier I cities", it added.

Both mall operators and retail industry representatives, however, are apprehensive about a quick rebound, as they maintain that it will take time before pre-pandemic normalcy is attained pointing to a number of factors like fear of venturing out, desirability of non-essentials, and the general impact on the economy hurting the purchasing power of the individual.

During a webinar on the issue, Harshavardhan Neotia, former president of the Federation of Indian Chamber of Commerce and Industry (FICCI) said people are scared of “contact” activity due to the fear that they may touch infected surfaces.

“The challenge is complex. Today a large part of shopping is undesirable except medicine and essentials. COVID-19 has affected the economy as well as individuals. Until money comes back into the economy, people will not feel confident to go and buy products that the malls, eateries, and multiplexes provide. Of course the first thing is to open, which has to be closely followed by other things", said Neotia.

Varghese agrees: “Textile is under a discretionary category. The fact that we have not been able to open, means it will take a long time to get to normal. The answer to the question whether 100 percent of people will come back when the malls, retail stores open - is no. We should be thankful if we gain 60-70 percent of our operation by year's end".

China, which emerged as the epicentre of the pandemic, has witnessed a graded build up of footfall at public places, malls and retail outlets after their lockdown.

According to observations shared by the world's leading investment firm Blackstone in one webinar on Indian multi-brand retail, it was mentioned that even though 80-85 percent of restaurants and 90-95 percent of commercial assets are open in China, the footfall has seen a gradual increase. In some Chinese cities, 60 percent footfall has been attained. In India, the firm expects 80-90 percent footfall to be back by the festive season of Diwali (the biggest Indian festival) towards the end of the year.

The Economic Times |

Coronavirus impact on India's retail sector

The impact of the coronavirus pandemic and the lockdown it triggered is clearly visible in financial markets. But there is still no clarity on the deeper impact that it is having across businesses and industrial sectors. Based on assessments made by different analysts and industry body FICCI, here is an impact analysis on the retail sector.

1. Major loss of earnings, jobs

The outbreak of coronavirus is having a severe impact on people, economy and business. As responsible corporates, all retail players are adopting necessary preventive actions to ensure safety of their employees and customers. The end objective is to ensure easy and uninterrupted availability of essential food and grocery products at affordable prices so that people don’t panic. During these critical times, it is imperative for all stakeholders to come together. Given the widespread effect of Covid, business across sectors is looking gloomy, impacting economy at large. Shutting down of malls and shops has severely hurt business for all retailers. This could lead to major job losses as companies won’t be able to sustain this for too long.

Brokerage Emkay Global says Covid-19 disruption seems to be wide and deep, and unlike the demonetization, impact on consumer incomes appears significant with the hit on daily wagers and pay cuts across companies. Consumer demand, which was already slowing down before this disruption, is likely to weaken further, thereby reducing our growth forecasts.

Channel checks indicate severe disruption for consumer companies too with a sharp 50%+ drop in sales during the ongoing lockdown. While staples are relatively less affected and should recover, paints and retailers may see the impact continuing beyond the lockdown.

2. Major earnings cuts ahead

Emkay Global says the fall in crude prices and moderating agri-input prices should drive margin gains for most staples. But it cut earnings estimates by 3-15% due to the impact of the disruption and a slow recovery.

ET Retail |

Retailers want govt to bring back migrant workers to augment supply chain

Retailers and consumer companies want the government to run special trains and buses to bring back thousands of migrant workers to augment the currently hamstrung supply chain for essential items.

Also, retailers are requesting the government to allow fashion and luxury outlets, and even malls to open in low-exposure-risk areas, even as there are indications that the lockdown would be extended, but with a plan to gradually exit it.

The essential supply chain was severely disturbed in the first two weeks of the lockdown that began in late March to stem the Covid-19 pandemic. While thousands of migrant workers had left for their native places, causing a shortage of manpower, incidents of police beating retail staffers and preventing free movement of goods carriers came from various states, hurting supplies. Even today, supply of food and other essential offerings is curtailed with availabilities hovering around 50-70%, companies said.

The CII has asked the government to prioritise the return of truck drivers as the fleet of trucks in operation has been severely depleted.

“Truck availability is only at 15%-level and average hire rates are increased significantly and this leads to inflation,” a recommendation by the industry body to the government said. This is causing wastage of fruits and vegetables, leading to higher prices, it said.

On the other hand, retailers and malls are planning to restrict the number of shoppers at any point of time. Large retailers are also identifying separate rooms or areas to isolate people with Covid-19-like symptoms. They are looking to email or text bills to consumers, rather than handing out printouts, to minimise contacts.

“We have to make sure the mall is more hygienic, frequently sanitised every landing, have enough masks,” said Mukesh Kumar, the CEO of Infiniti that operates two malls in Mumbai. “We are looking at the option of limiting the number of footfalls into the malls also.”

Arvind Mediratta, the head of the Ficci retail committee, said the industry body had requested the state governments to operate limited number of public transportation like buses, allowing only essential service workers and pass holders to travel.

“Earlier, the PM has asked people not to overstep the Lakshman Rekha. Now the messaging has to change that many things are under control and companies have implemented a lot of safety measures,” said Mediratta, who heads Metro Cash & Carry in India. “The government should now send a subtle message to people in essential services to return to work.”

For the first four-six weeks after April 14, when the first phase of the lockdown would end, retailers said the government should allow up to 50% of the staff at any given time in any store or a factory, that too with strict implementation of the social distancing and hygiene norms.

Companies and retailers have also requested the government to include home utensils, baby products and stationery for students onto the list of essential items.

“Since people are increasingly working out of homes, so things like computers and mobile phones should also be included on the essentials list,” said Kumar Rajagopalan, the CEO of the Retailers Association of India.

The Economic Times |

Covid lockdown: Retailers want govt to bring back migrant workers to augment supply chain

Retailers and consumer companies want the government to run special trains and buses to bring back thousands of migrant workers to augment the c