Beyond the debate of front-end cost of the retailers driving new-age innovations into virtual world, the question is whether it is a natural growth progression of the retail and the future of organised retail in India?
While most of the retailers in India blame more to the frontline cost of the real estate than supply chain hurdles, online retailers like MyGrahak project it as a cost competitive advantage.
What appears to be the bane of retail, whether organised or neighbourhood, has been spotted by some innovative entrepreneurs, of late. They are the tech savvy smart players in the segment who have realised that instead of getting into “dog eats dog” competition, it is better to spot the gaps that the upwardly mobile discerning consumers are finding and bridge the trust deficit in retailing to cater to this segment.
rom local kirana shop to high street shopping and then malls, Indian consumers gradually got exposed to supermarkets & hypermarkets. And just when it seemed that organised retail in the country is poised for giant leap, the poor user experience of consumers prompted them to shift back to the tried and tested local kirana.
Tata Housing has launched its first pan-India retail brand – GoodLife, specially designed to bring mall culture to urban localities where there are no malls.
Judging by feedback obtained from a cross-section of Indian retail players, it emerges that most retailers perceived 2011 to be a flat year.
Once hailed as the new experience in the destination shopping of super luxury, Parsvnath Developers is reportedly selling its 1.2-acre plot in the heart of Delhi, near Connaught Place, hoping to raise Rs.700-800 crore for paring its debt.
East India, which has been for some time on the radar of national and international retailers, has, of late, seen some hyper activity in planning and developing quality retail space by real estate developers.
We are into 2012 – the New Year with its fresh hopes and aspirations as also a fresh optimism for the economy.
Battling huge vacancies, piling inventories and lacklustre rentals, the Indian real estate is looking forward to retail FDI as a savior, expecting a windfall following the entry of global giants looking for more retail space for expansion.