a)     Mr. Nitin  Paranjpe, CEO and MD, Hindustan Unilever Ltd., said that 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,”. He also 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.”

b)    Mr. Rakesh Biyani, Joint MD, Pantaloon Retail India Ltd.,  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.”

c)     Mr. Thomas Varghese, Chairman CII National Committee on Retail 2011-12 & MD & CEO, Aditya Birla Retail Ltd. said that “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,” He also 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.”

d)    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.”

e)     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." 

f)     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 that , “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.

Both the size and shape of the consumer market in India are fundamentally changing. The dramatic growth of the market is well known and reasonably well understood, while it's altering shape—the changing patterns of and attitudes toward consumption—is neither widely known nor understood.

Between 2010 and 2020, the overall consumer spending is likely to grow nearly 4 times, from $977 billion to a staggering $3.6 trillion by 2020. The spending categories with the largest anticipated future growth are discretionary items and uptrading in many essentials. More interestingly, the definition of what is discretionary and what is essential is likely to change.

It is critical for companies to understand the nature of this consumption demand and what is

driving the same

a)       Multiple segments – the Indian consumer pyramid is shaping into a diamond but more importantly income is only one variable that is driving this consumption. Within the same income segment, the attitudes and behaviors are dramatically different

b)      Trading up (and down) – Consumers are trading up and down at the same time. There are segments and categories where consumers are paying more for more but in others they are cutting down consumption.

c)       Rise of emerging cities – The distinction between the urban and rural is getting blurred. The fastest growth is coming from the emerging cities which are developing in a unique manner

In order to capture this consumption boom, companies need to focus on and understand

a)     The digital revolution – India currently has 120 M internet users and nearly 700 M mobile users. Both of them are increasing at a dramatic pace and changing the way consumers interact with the environment

b)      Increasing importance of brands – The Indian consumer is brand conscious – but what does she want from a brand. All categories are seeing an increase in the share of branded products

c)     Building an agile supply chain – Capturing the full potential of the Indian market requires the ability to have products at the right cost, and with the flexibility to change as needed