{"id":1802,"date":"2019-12-17T00:00:04","date_gmt":"2019-12-16T18:30:04","guid":{"rendered":"http:\/\/thirdeyesight.in\/blog\/?p=1802"},"modified":"2022-11-08T08:41:13","modified_gmt":"2022-11-08T08:41:13","slug":"retail-2020","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/retail-2020\/","title":{"rendered":"Retail 2020"},"content":{"rendered":"<div class=\"row\">\n<div class=\"col-sm-5\"><img decoding=\"async\" class=\"img-fluid lazyload\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/09\/Sale-660x440-400x266-1.jpg\" alt=\"\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\"><\/div>\n<div class=\"col-sm-7\">\n<p>Remember the year 2000? After Y2K passed safely, that year some optimistic analysts predicted that India\u2019s modern retail chains would reach 20 per cent market share by 2015. Two years after that supposed watershed, another firm declared that modern retail will be at around that level in 2020 \u2013 but wait! \u2013 only in the top 9 cities in the country. Don\u2019t hold your breath: India surprises; constantly. As many have noted, \u201cpredictions are tough, especially about the future!\u201d What we can do is reflect on some of this year\u2019s developments that could play out over the coming year.<\/p>\n<\/div>\n<\/div>\n<p style=\"text-align: justify;\">In many minds 2019 may be the Year of the Recession, plagued by discounting, but that demand slowdown has brewing for some time now. However, there\u2019s another under-appreciated factor that has been playing out: while small, independent retailers can flex their business investments with variations in demand, modern retail chains need to spread the business throughout the year in order to meet fixed expenses and to manage margins more consistently.<\/p>\n<p style=\"text-align: justify;\">To reduce dependence on festive demand, retailers like Big Bazaar and Reliance have been inventing shopping events like Sabse Sasta Din (Cheapest Day), Sabse Sachi Sale (Most Authentic Sale), Republic Day \/ 3-Day sale, Independence Day shopping and more for the last few years. In ecommerce, there\u2019s the Amazon\u2019s Freedom Sale, Prime Day, and Great India Festival, and Flipkart\u2019s Big Billion Day Sale. This year retailers and brands went overboard with Black Friday sale, a shopping-event concept from the 1950s in the USA linked to a harvest celebration marked by European colonisers of North America. (The fact that Black Friday has a totally different connotation in India since the terrorist bombings in Bombay in 1993 seems to have completely escaped the attention of brands, retailers and advertising agencies.) Be that as it may, we can only expect more such invented and imported events to pepper the retail calendar, to drive footfall and sales. The consumer has been successfully converted to a value-seeking man-eater fed on a diet of deals and discounts. With no big-bang economic stimuli domestically and a sputtering global economy, we should just get used to the idea of not fireworks but slow-burning oil lamps and sprinklings of flowers and colour through the year. Retailers will just have to work that much harder to keep the lamps from sputtering.<\/p>\n<p style=\"text-align: justify;\">Ecommerce companies have been in operating for 20 years now, but the Indian consumer still mostly prefers a hands-on experience. The lack of trust is a huge factor, built on the back of inconsistency of products and services. The one segment that has been receiving a lot of love, attention and money this year (and will grow in 2020) is food and grocery, since it is the largest chunk of the consumption basket. Beyond the incumbents \u2013 Grofers, Big Basket, MilkBasket and the likes \u2013 now Walmart-Flipkart and Amazon are going hard at it, and Reliance has also jumped in. Remember, though, that selling groceries online is as old as the first dot-com boom in India. E-grocers still struggle to create a habit among their customers that would give them regular and remunerative transactions, and they also need to tackle supply-side challenges. Average transactions remain small, demand remains fragmented, and supply chain issues continue to be troublesome. Most e-grocers are ending up depending on a relatively narrow band of consumers in a handful of cities.&nbsp; The generation that is comfortable with an ever-present screen is not yet large enough to tilt the scales towards non-store shopping and convenience isn\u2019t the biggest driver for the rest, so, for a while it\u2019ll remain a bumpy, painful, unprofitable road.<\/p>\n<p style=\"text-align: justify;\">Where we will see rapid pick-up is social commerce, both in terms of referral networks as well as using social networks to create niche entrepreneurial businesses \u2013 2020 should be a good year for social commerce, including a mix of online platforms, social media apps as well as offline community markets. However, western or East Asia models won\u2019t be replicated as the Indian market is significantly lower in average incomes, and way more fragmented.<\/p>\n<p style=\"text-align: justify;\">As a closing thought, I\u2019ll mention a sector that I\u2019ve been involved with (for far too long): fashion. In the last 8-10 decades, globally fashion has become an industry living off artificially-generated expiry dates. A challenge that I have extended to many in the industry, and this year publicly at a conference: if consumption falls to half in the next five years, and you still have to run a profitable business (obviously!), how would you do it? Plenty of clues lie in India \u2013 we epitomise the future consumers; frugal, value-seeking, wanting the latest and the best but not fearful about missing out the newest design, because it will just be there a few weeks later at a discount. If you can crack that customer base and turn a profit, you would be well set for the next decade or so.<\/p>\n<p style=\"text-align: justify;\"><em>(Published as a year-end perspective in the <a href=\"https:\/\/www.financialexpress.com\/brandwagon\/from-slow-demand-to-rising-discount-how-2020-will-pan-out-for-retailers\/1805169\/\" target=\"_blank\" rel=\"noopener\">Financial Express<\/a>.)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Remember the year 2000? After Y2K passed safely, that year some optimistic analysts predicted that India\u2019s modern retail chains would reach 20 per cent market share by 2015. Two years after that supposed watershed, another firm declared that modern retail will be at around that level in 2020 \u2013 but wait! \u2013 only in the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[25,27,212,249,265,215,33,625,60,36,62,37,315,131,43,44,46,302,48,1],"tags":[498,26,633,634,99,100,52,174,177,102,103,104,107,421,600,110,32,145,602,216,635,112,636,59,190,191,69,244,347,118,120,637,638,166,256,70,71,639,471,65,202,640,641,124,569,642],"class_list":["post-1802","post","type-post","status-publish","format-standard","hentry","category-apparel","category-branding","category-consumer","category-e-commerce","category-entrepreneurship","category-food-grocery","category-footwear","category-health-wellness","category-india","category-lifestyle-fashion","category-market-research","category-marketing","category-outsourcing","category-product-development-and-design","category-retail","category-soft-goods","category-strategy","category-technology","category-textiles","category-uncategorized","tag-amazon","tag-apparel","tag-big-basket","tag-big-billion-day","tag-brand","tag-brand-building","tag-branding","tag-consumer","tag-consumer-behaviour","tag-consumer-markets","tag-consumer-products","tag-consumer-research","tag-consumerism","tag-discounts","tag-ecommerce","tag-entrepreneurship","tag-fashion","tag-fashion-brands","tag-flipkart","tag-food-grocery","tag-future-group","tag-global-business","tag-grofers","tag-india","tag-india-entry-strategy","tag-indian-market","tag-indian-retail-sector","tag-market","tag-market-estimation","tag-market-potential","tag-marketing","tag-metros","tag-milkbasket","tag-modern-retail","tag-omnichannel","tag-organised-retail","tag-organized-retail","tag-prime-day","tag-reliance","tag-retail","tag-retail-boom","tag-sale-events","tag-social-commerce","tag-strategy","tag-tata","tag-walmart"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Retail 2020 - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/retail-2020\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Retail 2020 - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Remember the year 2000? 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