NEW DELHI — As retail grows in India, the blurry figure of the shopper and where they are buying has been brought more in focus with a new retail survey from Nielsen.
While the size of India’s retail sector is estimated to be $450 billion, it is characterized by a strong unorganized segment. Organized retail is estimated to be only about 6 percent of the total. It is often referred to as “modern trade,” as against the traditional “general trade.”
A close look at where modern-trade shoppers are turning for their needs in the fast-moving consumer goods market shows a sharp increase in some urban cities.
Overall, 17 key metropolitan areas account for 73 percent of organized retailing in India. “With value growing faster than volume, it implies that even in an inflationary environment, modern-trade shoppers are expanding the share of their wallets dedicated to shopping for categories sold through organized retail,” said Adrian Terron, executive director of Retailer and Shopper, Nielsen India. Volumes through modern trade have grown by 16 percent, while value sales have increased nearly twice as fast at 28 percent.
Among the top 10 fastest-growing cities in relation to organized retail is New Delhi at No. 1, with a growth of 50.2 percent from 2010 to 2011. The others in the top five come as a surprise — neither Mumbai nor Bangalore make the list, while smaller cities such as Jaipur at almost 40 percent, Indore at 39 percent, Pune and then Surat at nearly 27 percent, are witnessing rapid growth.
Mumbai is seventh on the list.
“As shoppers in these geographies awake to the possibilities that modern-format outlets bring, this is only likely to gain momentum,” the report noted.
Modern-trade penetration is better in some categories, with nonfood areas dominating the list. Skin creams, for example, grew by 38 percent from 2010 to 2011, shampoos grew 28 percent and hair oils grew 21 percent in value terms. Private labels continue to grow, appealing to the value conscious shopper.
Meanwhile, Hindustan Unilever, the Indian arm of Unilever, has set up its first center in India to study how Indians shop. This is its seventh such center around the world.
According to industry estimates, Hindustan Unilever retails out of more than 7.2 million outlets, and Procter & Gamble from more than 5.6 million outlets. HUL has reportedly set a target to double its turnover to 500 billion rupees, or $9.3 billion at current exchange, by 2015.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)