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According to the CII-BCG report, uncertainty in the global economy is
increasing. On an average rank changes in US food and grocery have been
3.2 times in the decade of 2010 vs. the 1960s. Short term uncertainty in
India is also increasing. GDP projections for India have also been cut
to 5-6 percent and companies are dealing with the "new normal". However,
in the long term consumption in India is set to triple, going from ~$
900 mn in 2010 to ~3.6 trn $ in 2020. Hence, it is imperative that FMCG
and retail organizations balance caution due to short term uncertainty
with investment required to drive long term growth.The report titled Winning with Uncertainty by CII and The Boston Consulting Group highlights the need for FMCG and retail companies in India to prepare for an increasingly uncertain future and proactively take measures to leverage market volatility to create competitive advantage
Increasing uncertainty in the business environment has become a hot topic of discussion. "The real challenge is not cost increase but the volatility in input prices. Inflation has seen wild swings with WPI settling to as low as 4.89% in April after seeing highs of 6-7 percent levels over the last year. Consumer sentiment has been a conundrum. Our global trading up trading down survey indicated that while 38 percent of Indian consumers want to trade up (much higher than US and EU consumers at 13% and 16% respectively) about 30 percent consumers want to trade down at the same time," said, Abheek Singhi a BCG partner and co-author of
SOURCE:http://www.indiaretailing.com/news.aspx?topic=1&Id=7040