In an exceptional collaboration that breaks the barriers of traditional discourse, PwC India, the renowned global professional services network and CNBC-TV18, India's foremost business news channel, have formed an unprecedented partnership that promises to redefine India's business landscape.
This partnership, driven by a shared vision for transformative discussions, has given rise to CEO Dialogues—a platform where India's top industry leaders come together to explore the most crucial business issues shaping our nation. This initiative aims to showcase the enduring spirit of innovation and progress.
To take the inaugural episode of the CEO Dialogues forward, an impressive panel of esteemed leaders came together under this prestigious banner. These remarkable individuals represent the forefront of the retail and consumer sector, embodying trailblazing vision, inspiring ideas, and a pivotal role in shaping India's economic future. Their names resonate with true leadership.
With unwavering determination, they embarked on an exploration of "India's Big Consumption Story: New Era, New Challenges," leaving an impact on the business landscape. Their captivating discussion unfolded the future of India's retail sector—a sector ready to redefine our growth story and pave the way for new possibilities.
Introduction of the esteemed panel
The inaugural panel, led by the brilliant Shereen Bhan, Managing Editor of CNBC-TV18, featured Sanjeev Krishan, Chairperson and Ravi Kapoor, Retail & Consumer Sector Leader from PwC India. They were joined by Anuj Poddar, MD & CEO of Bajaj Electricals; Vineet Gautam, CEO of Bestseller India; Ambareesh Murty, Founder of Pepperfry; Manish Taneja, Co-Founder & CEO of Purplle.com; Satyen Momaya, CEO of Celio Future Fashion; and Geetika Mehta, Managing Director of Hershey India.
Together, they possess the power to reshape industries, fuel innovation, and script a new narrative for India's economic growth.
A Deep Dive into the GDP Growth and Optimistic Consumer Sentiment
The discussion commenced with Ravi Kapoor sharing his insights on the emerging themes, trends, challenges, and opportunities in the Indian consumption story.
“The per capita GDP is the biggest correlation of the wealth of the society. What we have seen is that over 30 years per capita GDP has roughly grown at a CAGR of 4.5 percent and from 1991 onwards that has pretty much quadrupled categories across the retail sector,” he observed.
Citing the growth of the previous three years, he believed India is getting into Amrit Kaal. The nearest milestone to that Amrit Kaal is 2030 when India would be becoming the third largest economy in the world, roughly translating to $5 trillion.
Turning to the current demand situation with Anuj Poddar expressing optimism that consumer sentiment would improve in the coming months.
“You give consumers or people one or two quarters of no price hikes, no inflation, no further interest rate hikes and they start spending. So, it's a game of consumer sentiment — I think (if there are) no further hikes, everything is status quo and in 3-4 months, you should be back with a good demand situation. And that's my wish for FY24,” expressed Mr. Poddar.
Impact of COVID-19 and Growth Opportunities in the Retail Sector
Further, Ambareesh Murty highlighted the impact of the COVID-19 pandemic on home renovation and increased demand for furniture and home goods, particularly in tier-II and III cities.
“Normally in a waking day, we would have spent three or four hours at home, during the COVID pandemic we started spending 14-18 hours at home. And that built a serious consciousness of what you have in your house. So, if earlier, you would put up with that couch which squeaked a little. Now you would no longer do that,” Murty explained.
Geetika Mehta also shared her insights on the demand visibility and growth opportunities. Talking about the brand's future growth prospects she said, “The consumers are increasingly interested in products and foods that are beneficial for their bodies, not just indulgent treats. This presents a high growth opportunity for Hershey.”
Insights on Retail Sector Growth, Digital Transformation, and Profitability
The discussion then delved into the retail sector, with Vineet Gautam discussing headwinds faced across multiple categories, the growth in metros, and the importance of expanding retail operations to reach more cities. The women's wear segment was seen as a significant contributor to the business, with segmentation and targeted marketing through digital platforms driving growth.
Gautam also highlighted the potential impact of ONDC (Open Network for Digital Commerce) as a game-changer for retail businesses, similar to what UPI (Unified Payments Interface) did for payments.
Meanwhile, Satyen Momaya emphasised the strong fundamentals of the apparel lifestyle business in India, driven by the fast-growing economy, a young population, and the shift from unorganised to organised apparel.
“As a company if you are able to grow 2x the market industry growth rate, and if you are able to grow 2.5x the GDP growth rate, you are a better performing company. So profitability is something that you really want to continue to invest in,” Momaya stressed.
A Step Towards Sustainability and Addressing Challenges in Consumer Businesses
Sanjeev Krishan, Chairperson, PwC in India discussed the challenges faced by consumer businesses. He stressed on the importance of reinventing oneself amidst technological advancements, sustainability adoption, supply chain disruptions, and workforce transitions.
Poddar agreed that even for a long-established company like Bajaj, focus on practical innovations that address market needs, specifically tailored to the preferences of Indian consumers were key.
Embracing Omnichannel Strategies and Technology for Customer Engagement
The concept of omnichannel and phygital (physical-digital) presence was also discussed, with the panel emphasising the role of technology in meeting customer needs and driving success.
According to Murty, engaging with customers across various channels is essential. While for Taneja, offline stores positively impacted online sales. Momaya also highlighted how it’s essential to focus on D2C channels, leveraging cutting-edge technology like AI for seamless shopping experiences.
Anuj Poddar acknowledged the significant regional differences in India, using the example of pressure cookers. He further added, “Growing up in Mumbai, I was accustomed to pressure cookers with lids on the inside. However, in the southern part of India, the lids are placed on the outside. While this doesn't fundamentally affect the cooking process, it impacts aspects such as design, R&D, and the supply chain.”
The Power of Informed and Aspirational Consumers in Driving Market Disruptions
In conclusion, Sanjeev Krishnan identified informed and aspirational consumers who value purpose and sustainability as major disruptors in the market. He also added that, “India excels in technology, analysing vast data for discerning consumers who value affordability and quality. To maintain margins, focus on supply and value chains rather than solely on margin expansion. Volume growth alone can lead to disruptions.”
What Lies Ahead
In an era of dynamic change and challenges, the CEO Dialogues serves as a guiding light for businesses across India.
As we anticipate the upcoming panel discussions on Banking, Manufacturing, and Health Industries, the CEO Dialogues stand as a testament to the commitment of PwC India and CNBC-TV18 in becoming the true catalysts for progress, heralding a new era of insightful dialogue and paving the way for a brighter future in India's focus sectors.
To know more: https://youtu.be/_QOkODpJXO4
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