"Much needs to be done to attract retailing"  ( February '20,2001, FE)

Globally acclaimed retailing expert Mr Marvin S Traub's first visit to India dates back to 1966. A lot has changed since then, he recalls, particularly in retailing. ``India is coming of age though it (retailing) has not caught up to that extent,'' he comments.

Mr Traub, a recepient of the world's highest retailing `gold medal' award and the author of Like No Other Store which is based on his experience as chairman and CEO of Bloomingdale's for 14 years, is currently president of Marvin Traub Associates. The Financial Express caught up with him at the ongoing KSA retail summit.

Excerpts: On the factors limiting the growth of the retail industry in India: I try to avoid getting into politics but my point of view is that policies seem to be limiting the growth of the retail industry here. FDI, is clearly, the most limiting factor.

Other than that, tax laws, real estate and other regulations need to be simpler. Much needs to be done to attract retailing. I am convinced there are many retailers and branded suppliers who regard India as too difficult-almost impossible today-yet would welcome the opportunity to create an appropriate joint venture, if they felt India was changing.

Today, not one of the top 25 retailers in the world is in India, but I believe this can change.

On the potential of the Indian retail market: India could be one of the leading opportunities in the next decade. The growing Indian middle class with increasing disposable incomes holds immense opportunity for global retail chains.

The Indian middle class of 150-200 million strength with three to five million high-income households offers immense scope for global retail giants like Bloomingdales, Gucci and Wal-Mart. If the Indian middle class with 10 per cent income growth continues to be backed by six to seven per cent annual gross national product (GNP), it ensures a great opportunity for global retail chains.

On retail marketing vis-a-vis the Internet: Successful retailing on the Net would be done by those who have a dominant offline presence both in terms of wide retail network and catalogue variation. In India, I think, it will take a while. As per estimates, Internet users will be around 521 million by 2002 and the volume of commerce through the Net about $1.64 trillion by 2003.