The report entitled `The Great Indian Bazaar: Organised Retail Comes of Age in India' however warns that the retailers will have to stay away from the cut and paste type of retail ideas borrowed from the successful global models and would require an approach that is distinctive from the rest of the world.
Indian market is undoubtedly a high-growth one but it is characterised by small transactions, rapidly-evolving customers with unique shopping habits and whose spending across categories are different from shoppers elsewhere.
To succeed here, the report refers to five ways in which retailers could create a profitable operating model, according to ET which has released the story.
They will need to integrate real estate into the model as it is very expensive in India, create an effective and scalable supply-chain and increase basket-size by shaping consumption. They must also develop and retain talent and influence regulation to ensure healthy development of the sector and to de-risk margins, adds the report.
"Driving consumption across categories is essential. We need to grow the basket-size per customer," says McKinsey & Company's Partner, Peter Haden.
Organised Retail growth in India is of special significance in the Indian context as this will catapult the sale and consumption of wines due to the ease in availability, change in the current orthodox laws notwithstanding. |