Retail -- Retrain to Retain

Hi Friends

I am enjoying and having fun at my job.Recently I was travelling to China & Europe and had interesting expriences of world's factory, Europe & retail development in India

Retail business that is at its peak in UK ( 80% of consumer products dealt by them )is taking its roots in India. I just had some observations and some concerns that I will put forward to you.

China , we are importing some of our products from a world class vendor, I met their marketing team , the person handling Indian business for this chinese company was a school teaher two years ago,The person handling the show had a critical edge as he knew English.( Only relevant in China)

The company is a world class manufacturer with economies of scale and produces products at least cost. They actually donot need marketing as they are the best and most competitive.

Among their stuctures they need only processing guys that can coordinate for production for all the orders received.

On the other hand in Europe , I saw that 80% of the products are being distributed by organised retail sector. Spain , 50% distribution handled by organised sectors and balance 50% by independent retailers, There is a government intervention on no of malls that can be opened in a specific province.

In France the scenario totally changed in a small time when shift happenned from independent retailers to organised retail.

Large retail chains are making their own brands to end the brand game also. Home brands of large retail chains for all consumer products ( All starting from yogurt, baked beans to Home appliances etc.) are available at less prices than established brands. There is a clear shift to products with less prices and brand premiums are under pressure.

My observations are :

Job of a sales man might be extinct after some time.Less salespeople will be required in India ( Specially in metro areas) as organised retails will establish itself.

Brand premiums will come down, you can see shortly Reliance branded Lassi, Bharti brand tomatos ,Tesco Televisions, Carrefour ACs & not to miss Biyani-Cold drinks in retail chains at coooool prices.

Key account management skills might have a requirement, for dealing with large format stores. ( wherein buying exexutives are gods and manufacturer's representatives make a big line to get a 10 minute appointments )

On manufacturing side, retail chains will buy from most comeptitive sources from India ( or China) and all small scale manufacturing will go down the drain. only effeciencies will survive.


All that you require will be coordinators of production at factory and floor management staff at retail chain counters + supply chain management , may be some consulting assignments jobs will be there to facilitate understanding of markets and entry of large retail operations in India.

More jobs will be available in Supply chain management

My concern is what will happen to job of my neighbour who works in a near by factory, which might have to close down shortly due to less effeciency parameters.

I might have to go back to school and learn new skills as the skills I was trained and had experience might not be required.

On manufacturing side , only large scale, effeciently managed factories will survive and balance will have to wind up their business ( Slowly) .

Distribution channel will have less number of layers and lot of small businessmen ( & their staff) will have to find new avenues for themselves.

I can see a turbulance in times to come. Jobs in my feild will be less and lot many people fighting for it. My skill set might no longer be required and cost of retraining myself in wake of no job will be tough. My concern is that

People are not aware of what new skill will be required?

What will be the cost for the same?

How can we prepare ourselves for the same ?

I cannot see a training infrastructure that can help me and my friends for the new skill sets ?

A big number white collar work force will be forced to retrain themselves for preparing for the times to come. Are they ready or even aware of the same?

There can be interesting solutions for the same . Big business also might develop on account of these changes . (E-Learning, Adult education, Executive education, LMS, Training etc etc)

We can discuss all about the same over "a cup pf tea"