Retail In India Will Integrate Home-grown Models

Mumbai | Updated: Apr 27 2004, 05:30am hrs
Retail in India will integrate home-grown models along with various international formats. And as retailing grows in India, the players will increasingly take to sourcing their supply globally. Further, the use of information technology is essential for supply chain management (SCM) along with the need to undertake relationship building with suppliers. These were the thoughts of Prof Sam Dzever, president, CASS Graduate School of International Management, Brussels.

Speaking to FE, Prof Dzever said the country should learn lessons from China which has seen a spurt in retailing, especially in the last decade. There are lessons like the need to develop efficient infrastructure, which the Indian retailing sector can learn from China, he said.

On the use of information technology, Prof Dzever said it is critical, as one cannot run an integrated supply chain management without it. India is a superpower in information technology and it should take advantage of that to develop software for the retailing sector, he said. The utility of information technology in SCM is realised from the fact that it gives competitive advantage, he added.

On the issue of foreign direct investment in retailing, he said changing competitive dynamics will eventually result in the sector being opened to foreign players. But that does not mean that domestic players will be wiped out. In fact retail in India will integrate even home-grown models, he said.

Prof Dzever emphasised that companies should strive to build long-term relationships based on the element of interactivity.