Impact of shift in consumer spending and behavior a challenge for CEOs in the retail and consumer goods sector: FICCI-PwC Report
- Consumer behavior in heavily influenced by large social networks that allow consumers to have ‘crowd clout’
- Need for a national retail policy and industry status for the FMCG and Retail sector as well as a unified national market for the sector
- Changing purchase patterns: The shift in purchase behaviour towards online buying, dominated by mobile phones, has been very evident over the last few years. Preferences are now clearly extending beyond the original product categories of electronics and fashion to include food and grocery as well as local origin products.
- Evolving desire for service: Consumers are now seeking a clutter and trouble-free experience, enabled by technology and better quality sales people.
- Switch to health and wellness-driven choices: There is a marked consumer shift towards products and services that are perceived to be relatively healthy and less harmful or enhance people’s sense of physical and mental wellness and the environment.
- Rise of convenience: Cash-rich and time-starved consumers are seeking a new dimension in ‘convenience by knowledge’ to help them navigate to the right products and services that are relevant for them.
- Growing social networks: The concept of ‘crowd clout’ is gaining significance as consumers realise that their collective networks are enabling them to demand improved products and services from companies.
- Give the FMCG and Retail sector industry status so that companies are eligible for priority sector lending
- Continue to focus on improving ‘ease of doing business’ in the country to improve the regulatory environment and India’s rank on the global index
- Implement GST early to achieve cost efficiency in the procurement and supply chain
- Provide fiscal incentives to the industry, including on backend infrastructure and supply chain
- Introduce a unified agriculture marketing ePlatform to actualise its objective of providing the ‘best possible price to the farmer’
- Implement a unified retail policy on a pan-India basis and introduce a time-bound functional single window to help businesses meet compliance-related requirements for all bye-laws and guidelines (This would also entail one-stop clearance for registration of entities and reduce multiple layers of approvals for critical licenses and permits required to set up shops and businesses.)
- Harmonise various laws such as Legal Meterology, BIS and FSSA (Any confusion on these, specifically on labelling and related issues, should be pro-actively dealt with.) and create a mechanism to address issues arising due to the multiple laws
- Governing the sector under the existing FDI policy on retail sector, the sector is segregated between single brand retail trading, multi brand retail trading, wholesale cash and carry trading and e-Commerce. With a view to streamline this with the global trends and practices, the government may consider having a product specific policy for foreign investment in the trading sector – to give example, liberalisation of policy by removing conditionalities applicable to single brand trading in case of luxury products which will allow such companies to set up shops in India. This will create a niche brand presence in the country.
Nandini ChatterjeeExecutive Director Corporate CommunicationsIndianandini.firstname.lastname@example.org+91 124 462 0756
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