Retail Coffee Meet, presented by East India Retail Group and curated by Piyali Roy Oberoi, on 28th April, was an event where retail leaders delivered their insightful knowledge about the retail industry through various session. The meet was an exclusive opportunity for everyone – from emerging retail brands to the key industry leaders – to meet and connect with the right set of people.
Our first session was “Under Estimated East – High growth potential, vast market size & talent galore”.
Despite having a contribution of over 22% in the total population the contribution in the total retail market is proportionately low. National brands, retailers, and shopping malls have a comparatively lower presence in east India. At the same time, very few companies related to retail business have a national foot print.
The moderator of the session was Abhijit Das, Senior Director, East India Knight Frank and the speakers were Ranodeep Saha (Co-Founder of Rare Planet), Ashish Oberoi (VP & Zonal Business Head East at Pantaloons), Rajib Mukherjee (VP & Territory Head at Max Fashion India) and Sanjeev Mehra (MD & CEO at Quest Properties India Ltd.)
The panel discussed the opportunities and challenges, the reason for lagging behind in attracting national players or having very few east India based players with a national footprint. They also conversed on the success stories of brands & retailers in east v/s the rest of India and also the way forward for making the east India market more vibrant.
Rajib Mukherjee said that the East Indian retail market has been on a growth trajectory since the evolution of new Millennials population. The region is at the cusp of transforming from a traditional customer base into a brand conscious, product-savvy market. Its young generation is shopping and demanding both fashion and quality along with value for money spent from retailers. He also added that the leading retail regions’ list in the country – East India, comprises of West Bengal, Bihar, Odisha, Jharkhand, Chhattisgarh and Assam has shown great potential in as far as the retail industry is concerned if the recent growth and development is anything to go by. No longer a silent observer in the retail race, East India is breaking all barriers to emerge at the top of the retail game, across all channels. Kolkata – the third-largest metropolitan area in the country and also the capital of Bengal – is the proud face of East Indian retail.
According to the panel, some of the growth drivers of the region include a burgeoning, aspirational population, the proximity of Bangladesh as well as the South-East Asian markets. Another reason why the region is fast emerging as a vibrant business centre is the fact that the Kolkata and the Haldia ports act as gateways to landlocked countries like Nepal and Bhutan.
Many of these urban areas are already in the process of becoming smart cities which in result poses a major opportunity for the retail industry to create new milestones. Cities like Durgapur, Bhubaneswar, Patna, Ranchi, Jamshedpur, Bokaro, Guwahati, Cuttack, Siliguri, Brahmapur, Rourkela, Sambalpur, Puri, Bhagalpur, Gaya and Muzaffarpur are rapidly following in Kolkata’s footsteps, gaining ground as retail hubs.
Ashish Oberoi’s view on the discussion was that retail market in India has been sustainably growing for years, the reason being the unorganized sector moving towards being organized to a great extent. He further supplemented that the focus of Indian consumers is rapidly shifting towards buying right, and the inclination towards a healthy lifestyle is also contributing to the growth of the retail sector. The retail market in Eastern India is dominated by traditional brick-and-mortar stores, including small independent shops and large department stores. However, there has been a significant shift towards modern retail formats such as malls, hypermarkets, and supermarkets. This shift has been driven by changing consumer preferences and increasing competition.
The food and grocery sector are the largest segment of the retail market in Eastern India, accounting for over 60% of the total retail sales. Other major segments include apparel and accessories, electronics and appliances, and personal care products. One of the unique features of the retail market in Eastern India is the presence of street markets and bazaars. These markets offer a wide range of goods at affordable prices and are popular among the local population. This was assessed by Sanjeev Mehra.
According to Ranadeep Saha’s evaluation, the retail market in Eastern India faces a few challenges such as inadequate infrastructure, limited supply chain capabilities, and regulatory hurdles. However, the market is expected to grow at a healthy rate in the coming years, driven by rising consumer demand, government initiatives, and the increasing adoption of digital technologies.
The retail market in Eastern India is a significant contributor to the overall retail market in India. According to a report by Technopak, the size of the organized retail market in Eastern India was estimated to be around USD 15 billion in 2019. The report also projected that the market would grow at a compound annual growth rate (CAGR) of around 20% between 2019 and 2024.
However, it is important to note that the majority of the retail market in Eastern India is still unorganized, and a significant portion of the retail transactions take place through traditional formats such as mom-and-pop stores, street markets, and bazaars. The size of the unorganized retail market is difficult to estimate, but it is believed to be several times larger than the organized retail market.
Overall, the retail market in Eastern India is expected to continue to grow rapidly in the coming years, driven by increasing consumer demand, rising income levels, and the adoption of digital technologies. So as Kolkata is not far behind to this trend. Kolkata is the most happening city, an entrance of East & North East India, with many retail stories of achievements to encourage and motivate others.
