Govind Shrikhande, CEO-Shoppers' Stop, Interacts with IPMX Students at IIML-Noida Campus

Govind Shrikhande, CEO-Shoppers' Stop, Interacts with IPMX Students at IIML-Noida Campus

The students of the International Programme in Management for Executives (IPMX), the 1-year MBA from IIM Lucknow, interacted with Mr. Govind Shrikhande, CEO, Shoppers' Stop, through a Guest Lecture at the IIML (Noida Campus) on the 2nd December 2008.

Mr. Shrikandhe, with more than 20 years of experience in apparel and retail companies, provided a vibrant insight backed by exhaustive research data on the potential for the retail market in India. He started with a vivid presentation on the rapid transformations that have occurred in the Indian business environment as a result of a definite shift to attitudes towards modernization and a more consumption-oriented culture. Specifically, he split the consumer base into five portions: Global India, or those who know all the 'in' things around the world; Middle-Class India, which makes up the 'backbone of the IT revolution'; Self-Employed India, comprising lawyers, doctors and entrepreneurs who 'are driving the growth of consumption'; Farmer's India, accounting for 75% of the country, and Poor India.

"Although 35% of the population lives below the poverty line, things are changing rapidly," said Shrikhande, noting that 70% of the population is starting to consume larger items. For now, though, the Indian market is largely focused on the country's six largest cities, and it was on the habits of the urban population that Shrikhande expounded. "They are very well-connected to world standards and they demand brands and products. But at the core, they always demand more value." He also added that the basic philosophy is changing from see-it-now-and-consume-later, to affordable indulgences.

Though Mr. Shrikhande was confident of the enormous potential overall in the Indian market for the organised retail sector, he said that this sector would at best cater to the weekly shopping requirements of the target population. However, their daily needs would be predominantly met by the unorganised retail sector in the form of 'Mom-and-Pop' stores that will be a permanent feature of the retail business in India. However, since the market potential is huge and a 1% share in the total retail market in India would generate a 6 Billion USD turnover by 2011-12, he felt that the business held great promise. However, he also pointed to the ongoing economic meltdown, causing a slow-down in infrastructure projects with some of them as much as 18 months behind schedule, has dulled the retail growth prospects, at least in the short to medium term.

On the competitive landscape, he commented that all the major players had aggressive plans to expand in the coming years and were currently experimenting w.r.t. formats, floor space, goods sold, etc. He also predicted that by 2012, there would be 4 major retail chains worth 2-4 Billion USD each.

On the growth plans and strategy of Shoppers' Stop, he informed that the company was opening its 25th store the same day with one more slated to open in the following week. He also added that the company was targetting 50 stores over the next 4 years. The company has always been a market leader in forging partnerships with the widest range of international premium brands such as French Connection, Tommy Hilfiger, Esprit, CK Jeans, Gas, Lancome, MAC, Chanel, etc. he said, adding that this has helped immensely to leverage its new 'Bridge-to-Luxury' positioning.

The presentation finally concluded with a walk-through on the latest advertisement promotions that involved a brief overview of the new logo, and print and motion advertisements with the theme, "Start Something New".

Concluded.

Contributed by -
G. V. P. Rajan,
Member - PR Committee,
IPMX, Batch of 2008-09,
IIM Lucknow.

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