Retail Revolution - A Battle Between Tradition and Modernity
Packaging and Retail go hand in hand - believes K. Anand, Vice - President Operations & HR, Paharpur 3P.

Packaging and Retail go hand in hand\', believes K. Anand, Vice - President Operations & HR, Paharpur 3P (a division of Paharpur Cooling Towers Ltd). In support to this expression, he gives an informative insight into both the industries and how they depend on each other and affect consumers.

As the market gets flooded with new products across same categories, packaging turns out to be a very essential factor in gaining shelf space. It has a definite role in the success or failure of a product. Packaging reflects the product, increases aesthetics and shelf life and most importantly is responsible to attract consumers.

With the current retail revolution demand for innovative packaging is increasing in turn making competition in the packaging industry fiercer. Gone are the days when a store down the lane fulfilled our requirements in non-descript packs. In fact most of the commodities were packed in a newspaper till very recent times. The situation is still the same in many parts of the country however; Organised Retail is already making its way to these areas.

Then, Now & Things to Come
Literacy combined with hygiene and health consciousness has changed retailing needs today. Newer sophisticated packaging has truly delivered itself. Edible items like Atta, salt, oil etc. were the earlier few products, which set the ball rolling and the change is evidently still trickling down to various levels of the Indian consumer. Revolution took place with new polymers and access to new technology. The hygienic new packs cost a little more than the rudimentary newspaper packs but we are here to stay. And the effect of packaging reinventing itself is not even fully felt as yet, this only is the tip of the iceberg.

The new biz model is ready to take over the \'kiranas\' and add to the retail stability. It could be our own \'Reliance\' or \'Walmart\'. This would bring in a level playing field among the retailers and the so called \'MRP\' will be a farce. The economy of scale would be the decider. The discounts given by FMCG\'s would be translated into discount for the consumer. Ultimately, consumers would be the benefactor. The shift from loose packing to convenient packing would be smooth with little addition of cost. This would also bring a check on the spurious markets and adulteration in the country.

Multinationals are eyeing the burgeoning middle class where the growth potential is tremendous. The morphosis from LIG to MIG is what the companies are targeting. Fresh fruits and vegetables are also an untapped market with huge commercial potential.

Big Things in Small Packages
Most of the MNC\'s are here in India with new formats of packaging, but the conservative Indian consumer is apprehensive in accepting the change. Some of the ready to eat foods have vanished from shelves as the average Indian still looks towards hot fresh \'chapattis\' made at home. It is difficult to change deeply inculcated habits and notions.

Convenient packs like paisa packs have evolved in India and innovative packs are in the catch up phase. Let us take the example of a daily wager who buys groceries on a day-to-day basis. He may be the right target for the 50 ml or 100 ml oil packs or a 250 gm flour pack. So, there is a wider base for all packs ranging from 10 gm to 5 kg, as per the pocket size. The sachet concept has opened up newer vistas in packaging. Today all companies are vying for a pie of this segment. Another upcoming segment is the packaged water.

Summary
India ranks lowest in consumption of packaging among its peers. It is a battle between the traditional and modern. The established way of shopping is due for change, as companies have understood the role packaging plays in deciding the future of any product. The retail revolution is on and it will carry packaging with it!

28.01.2009