Indian retail should gear up to meet foreign competition:Onida boss

Kochi, May 18 (UNI) Indian retailers need not be afraid of the ''big foreign companies coming and eating them up'' and should instead gear up to meet the challenge head-on, Onida Group of Companies Chairman Gulu Mirchandani said today.

In his keynote address at a one-day seminar on 'Industry Trade Relations in the Consumer Durables Sector' here, Mr Mirchandani recalled how everyone told him to pack his bags once the then finance minister Manmohan Singh announced the opening of the Indian market to multinationals, including Sony, in the early 1990s.

''But, we did a survey and found that even in the face of multinational competition, local brands had managed to survive in other countries. There is always scope for well-managed local brands to survive and grow,'' he added.

Describing India as a complex market, he said multinational retail chains such as Walmart may not find the going so easy. ''The local retailer can offer the personal touch which no organised retail store can ever think of providing. And, this personal touch is essential for Indian consumers buying high worth products such as consumer durables,'' he added.

However, to stay in contention, the Indian retailers of consumer durables had to brush up their act with greater focus on customer service, training of staff and strengthening of the shop brand, he said.

As per estimates, organised retail presently had only a four per cent share in the Rs 25,000 crore consumer durables market and this was expected to grow to ten per cent by 2010, he said.

Striking an equally optimistic note, Mr Ravinder Zutshi, Deputy Managing Director, Samsung India, said as per industry estimates, nearly 70 per cent of the business was expected to remain with the traditional retailers even with the coming of modern retail chains.

''The pie is getting bigger by the day and there will be enough to go around. The manufacturers would help to support the channel partners in their business expansion plans,'' he added.

Stating that the consumer hardware industry contributed only 1.8 per cent to the GDP at present, he said this was expected to increase to 12 per cent by 2015.

Quoting a McKinsey report, he said India was predicted to emerge as the fifth biggest consumer market by 2025 with an over 580 million strong middle class.

Mr Udayakumar, President, Dealers Association of TVs and Appliances (DATA), Kerala, said the association had this year started a month-long professional training programme for salespersons to equip them with better skills and knowledge.

Mr S Muralidharan, State Secretary, DATA, also stressed the need for retailers to improve their services to attract and retain customer loyalty.

Mr Dhruva Chandrie, COO, Next Retail India Ltd, said the chain, promoted by the Videocon Group, was planning to open 550 stores by March next year. It presently had more than 200 shops across the country. The stores, which at present had only home appliances and consumer goods, would also start stocking mobile phones, digital cameras and laptops.

The company was aiming for a Rs 1,170 crore turnover by 2007-08, he added.

Sansui India CEO Anil Khera, Samtel Colour CEO Sunil Kakria and Sanyo-BPL Vice-president, Sales and Marketing, Alok Arora were among those present at the seminar, organised by DATA and Consumer Electronics and Appliances Manufacturers Association (CEAMA).

UNI