In this episode we talk about a new government notification on loose apparel retail, a new think-thank seeking better e-commerce policies from the government and a new study on the impact of retail experience on real estate.
This is August 28th 2022 and I’m your host Prateek Malik from New Delhi. Let’s get started! Summary of Week 34 of 2022 :
New government notification on the definition of loose apparel products This week the Government of India, in a formal notification, has provided a proper definition of loose garments. It clearly excluded the garments and hosiery products sold loose in retail from the existing provisions of the Legal Metrology (Packaged Commodities) Rules, 2011. This is an amendment for ease of doing business and reducing the compliance burden. The Ministry of Consumer Affairs notification has further clarified that the garment products in a packed form for safety or hygiene consideration during storage and transit before it reaches the point of purchase will not be considered as ‘packed’. It has defined ‘loose’ garments as ‘commodities or hosiery sold loose or open at the point of sale in such a manner that consumers can inspect the product before buying’. Here, the vital product information that is relevant to consumers is to be provided by the retailer, such as, name and address of the manufacturer or marketer or brand owner or importer with the country of origin or manufacture in case of imported products. Other information such as consumer care email id and phone number; sizes with internationally recognisable size indicators such as S, M, L, XL,etc. along with details in metric notation in terms of cm or m; and maximum retail price (MRP) can be provided. This statement has been welcomed by the industry bodies that have been vouching for the need of the amendment. Earlier, small traders of loose apparel retail used to complain regarding the harassment by the government inspectors faced by the industry. Hopefully this would be eliminated. The ministry has declared under the notification that the exemption was only for the finished goods and the information about the product needed to be displayed on e-commerce websites if sold through them. This means that any region e-commerce webstore or marketplace seller who were not displaying the information on the product webpage should still maintain the same. The amendment will come into effect from January 2023.
A new think-tank pushing the government towards better policies for e-commerce growth in India A new policy recommendation report titled ‘Policy recommendations for Customer-Centric E-commerce in India’, was launched last week by the Bharti Institute of Public Policy - a policy think-tank of the Indian School of Business. It raised several points related to the challenges faced in the industry and recommended critical policy changes to boost the Indian e-commerce growth. The report mentions that the consumers also value the promise of choice: the more possibilities available, the more likely they are to find something that is ideal for them. The report launched on the trails of the “New Draft E-Commerce Rules, 2021” that was released recently. It seeks policy intervention in four major areas: foreign direct investments, business models, data search, and taxation. It urges for the simplification of the FDI norms, laws for digital economy, an apex national taxation, etc. Customers would select a product only if the marketing of a company demonstrates that it understands the unique needs of a consumer. Hence, the concept of customer-centric e-commerce puts the consumer once again at the centre of the purchasing experience. The report also added that the technology innovations are driven by consumer demand, with people’s lifestyle changes, spending and shopping habits. Also, the ease of availing goods and services is a major deciding factor before buying.
Findings of a new study on the impact of retail experience on real estate Real estate management firm CBRE South Asia Pvt. Ltd has announced the findings of its latest report called ‘The Retail Perspective on Experience and its Impact on Real Estate’. This report highlights that as the pandemic impact is subsiding, the Indian retail space is claiming growing footfalls across retail and recreational spaces. The retail sector had a promising recovery in Q2 2022, with transaction activity growing by more than 100 percent on a QoQ. Under H1 2022, there was a massive growth of more than 160 percent YoY. Let’s discuss how experiential retail is driving customer engagement. The report mentions that the retail experience was a critical factor in driving how the retail spaces were designed even before the pandemic and how the productivity of retail spaces gained special focus after the pandemic with ‘experience’ attracting the customer engagement along with the sales numbers. Hence, physical retail experience is balancing the rise of e-commerce and maintaining profitability by supporting the physical presence of retail brands. According to Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE - “Physical retail locations must evolve into places where people want to go rather than have to go if they are to succeed in the future. While we have reasons to believe that retail business activity has already moved towards pre-pandemic levels, COVID-19 has modified consumer priorities. It is therefore imperative to deliberate on how real estate stakeholders can improve their spaces to enhance the experience quotient and subsequently value.” The report suggested the following strategies for consumer experience:
Evolution of thematic design: To attract footfalls with a compelling visual experience via building architecture, art and decor
Developers can consider the Real estate-as-a-service (REaaS) model that combines strategy, technology, and data
Placemaking can drive value for an asset by adding more F&B and entertainment-focused tenants in a Gen Z-dominated retail zones
That’s a quick wrap for this week. If you’re interested in being on our podcast to share your retail experience or reflect on the new developments, you can tweet or DM me over Twitter at @geekprateek . Keep reading and do share with your peers in the retail ecosystem.
See you in the next one.
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