New Delhi: “There is such a huge opportunity in Indian retail and FMCG that there is no need for players to fight for their share of the pie. Instead our focus should be to grow this pie which is small today and to unlock a closed market,” said Mr. Nitin Paranjpe, CEO and MD, Hindustan Unilever Ltd., setting the tone for the National Retail and FMCG Summit a flagship event of the Confederation of Indian Industry (CII). The theme for the summit held in Mumbai this year is ‘Realizing the Indian Consumption Opportunity: Key Trends Shaping the Evolution”.

Dissecting the Indian buyer, Mr. Paranjpe said, “The same person who will spend Rs. 2000 on a lavish cinema experience will also be seen fighting to save Rs. 10 at the grocers. To understand this behavior we need to understand the difference between a shopper and a consumer. They are no longer the same. Both have a unique mission and behavior that is diametrically different. Imagine getting the understanding of a shopper and consumer together and using it to your advantage.”

He added, “It is a fascinating time to be in the market today, to write our own stories, to evolve and to adapt. It is important to be ahead of the curve and realize beforehand what a consumer wants and to meet his demand. Yet, we have to do it responsibly in a sustainable manner because the consumers demand it and the planet needs it.”

Mr. Rakesh Biyani, Joint MD, Pantaloon Retail India Ltd., reiterated the opportunity in the market when he said, “Pick up any small or large category in the market and you will see that there aren’t enough options for a billion population market. As retailers we have to develop our brand portfolio and offer more choice to consumers.”

While admitting that retail and FMCG in India operate under several restraints, he added, “I see these constraints as challenges that are waiting to be explored and that will push us to innovate and rewrite the rules of the business.” The need, he believed in a digital world, is for companies to work on an ‘omni-channel’ growth where digital plays a big role. “More and more consumers are likely to shop online and hence a digital approach is integral to our growth,” he added.

“A rising GDP growth over the next decade, will quadruple consumption in this country. This and the demographic dividend where 70% Indians will be of working age in 2025, the flexible younger generation becoming major consumers, increasing media penetration and rising aspiration means that we are in for a great period ahead for retail and FMCG,” said Mr. Thomas Varghese, Chairman CII National Committee on Retail 2011-12 & MD & CEO, Aditya Birla Retail Ltd. He however added that, “The current distribution set up is not equipped to take up such a growth and everyone in the ecosystem including the logistic providers, private label providers, those providing warehousing and cold chain etc. will have to work together to truly realize this opportunity.”

Mr. Manu Anand, Chairman, CII National Committee on FMCG 2011-12 & Chairman & CEO, Pepsico - India Region said, “Almost every FMCG company has been riding the waves of growth in the last 20 years and it won’t be any different in the future. The winners however will innovate more complex but significantly insightful models and use technology to create flexible supply chain, innovative products and communication ideas and satisfy even more consumer requirements. Together with this, the government has to create an enabling environment and tackle number of urban issues for the industry to truly reach its potential.”

Mr. Sanjeev Agarwal, CEO, Gitanjali Exports said, “Constant innovation, by developing new products and distribution mechanisms, is a key factor in attracting consumers and helping retailers to maintain both topline and bottomline growth. The Gold and Diamond ATM launched by Gitanjali is one good example."

A report ‘The Tiger Roars: An In-Depth Analysis of How a Billion Plus People Consume’ by CII and Boston Consulting Group (BCG) was also released at the summit. Mr. Abheek Singhi, Partner & Director, BCG, talking about India said, “The roar of the Tiger is a fitting metaphor for consumer spending in India. Consumer spending in India will continue to roar, but the companies that try to capture it have to work hard. India is a big and growing consumer market, but not an easy one. Understanding the size and shape of the prize and where it is hidden in the challenging fabric of India are the first steps to capturing it."

The conference was well attended by the captains of the Indian Retail and FMCG industry including Kellogg India Pvt. Ltd., Godrej Consumer Products Ltd., Parle Agro, Loreal India Pvt Ltd., Marico Ltd., Cadbury India, ITC, Amul, The Nielsen Company, Reliance Communications, Madison Communications Pvt Ltd., Nestle India Ltd., Hindustan Coca- Cola Beverages Pvt Ltd. and Gitanjali Export Corporation Ltd.