Jewelry retailing in India as received a major boost in the last couple of years owing to active participation from various jewelry brands and also the efforts put in by the Gems and Jewellery Export Promotion Council (GJEPC). Mehul\u00a0 Choksi, chairman, Gitanjali Group<\/strong> shares with us what 2013 would bring on the table for the Indian jewelry industry.<\/em><\/p>\n <\/a><\/p>\n The Indian economy has just gone through a difficult year, witnessing a slowing down of growth that has led to tighter liquidity and a slackening of capital investment. Across sectors, industry has been affected by this scenario, and growth has by and large been difficult.\u00a0 The retail sector was impacted by the overall situation; resulting in weaker demand and delays in completion of upcoming projects. Jewelry, though stronger than many other categories, also witnessed some degree of slow down.<\/p>\n But, as often happens in gloomy scenarios, just as things were threatening to get darker and more difficult, a few rays of brightness that appeared towards the end of the year suddenly offered new glimmers of hope. For one there were early indications of the beginnings of an economic revival, and for another, the government finally gathered sufficient numbers to push through the long awaited (and long promised) reform allowing entry of FDI in multi-brand retail.<\/p>\n Together these two factors will play an important role defining directions for the retail industry in 2013 and immediately after.<\/p>\n The economic revival, even if weak, will bring consumers back to the stores in larger numbers, and also strengthen demand for what are otherwise considered ‘non-essentials’. Both are welcome developments that will yield relatively ‘immediate’ results, and probably be a cornerstone of retail growth in the first half of 2013.<\/p>\n <\/a>Pickup\u00a0 in demand will also see more retail real estate projects moving to a finish.\u00a0 Analysts expect a near 100 per cent growth in retail project completions in 2013, with the backlog of a slower 2012 also being cleared to an extent. While concentration in the metros and Tier I cities will continue to be seen, there will be an exciting spread of modern retail real estate to smaller Tier II, III and even some Tier IV locations.<\/p>\n At another level the new policy on FDI will open out fresh avenues for growth in Indian retail. In an ‘immediate’ sense, the impact will be mostly indirect, unleashing a ‘feel good’ factor among retail players as they firm up perspectives for maximizing the potential benefits of this decision. Overseas brands that are keen to explore the Indian market will also begin drawing up plans and scouting around for opportunities.<\/p>\n It is only in later in the year, that the impact will take a more concrete shape as companies move from the drawing board to practical action.\u00a0 But full-fledged penetration of the Indian market by foreign retailers will probably only begin to be seen in 2014.<\/p>\n Two other important factors will continue to define the contours of retail in 2013, as they have been doing over the past few years \u2013 the changing face of the consumer and rapid technological developments.<\/p>\n A lot has been written and said about these two factors, which have become important over the last decade. And while there may be no startling or dramatic new developments on either front in 2013, the retail trade will have to give them due importance and factor them into all steps it takes as well.<\/p>\n Also, there are some important areas that retailers who wish to remain relevant in the coming decade will need to focus on, and 2013 will see more and more players moving towards making these goals a part of their daily practice.<\/p>\n Connect with your Consumers<\/strong> \u2013 In today’s world, it is just not enough to have a good product: the consumer must know that it’s out there. Brands in general will have to adopt innovative and creative methods to do this, and the ability to use all available mediums and technologies \u2013 including the newly emerged social media, phone apps etc \u2013 to do this, in an effective and cost-efficient manner, will be crucial to success.<\/p>\n Customized Messaging<\/strong> \u2013 Increasingly customization is being seen as a crucial step in retail success, whether it is through personalised sales messages; higher levels of staff training and other means, every retail customer needs to be made to feel like a VIP<\/p>\n <\/a>Catering to the 2000+ Generation \u2013 In 2013, the children of the new millennium \u2013 those born in 2000 and therefore strangers to the last Century \u2013 will take their first step into teenage life. Born amidst the Internet and IT boom, they take these as a given, and are now familiar with the cutting edge of technology. Retailers will have to start thinking in terms of catering to this new generation and developing suitable formats especially for them.<\/p>\n Creating Innovative Channels<\/strong> \u2013 Technology has transformed the way we do many things and it has already impacted retail even today. Can we develop the means and ways to reach out to consumers by adapting these technologies to retail? Gitanjali has already been moving in that direction and three of our initiatives the Gold and Diamond ATM, online jewelry portals like gitanjaligifts.com and gitanjalishop.com as well as the E-Franchisee model for expansion have been tremendous successes.<\/p>\n Socially Concerned Retail<\/strong> \u2013 It will no longer be enough for companies to have CSR programs in general. At the retail level too it will be necessary to address the concerns of the new generation be it about the environment, ethical sourcing, giving back to society, caring for communities and so much more. Service and ambience are no longer sufficient; the ‘feel good’ factor will have to be taken to new levels.<\/p>\n How will these general principles apply to the particular conditions of the jewelry industry? What will be the top five retail trends in this segment?<\/p>\n