CRM called crucial, powerful in Indian retail business

Every player from bit to biggie is closely watching economic growth in India. Those who were paying attention to the CII Marketing Summit in New Delhi on Friday, however, now realize that CRM has high potential indeed on the Subcontinent.

Headlining stories from the convention were figures posited by Reliance Retail president / CEO Raghu Pillai showing that organized retail business in India is set to grow from 10 percent of the country’s GDP to as much as 25 per cent within the next five years. Maureen Johnson of communication services group WPP’s retail consultancy, The Store, meanwhile called customer relationship management crucial and that “CRM has been key…it is very powerful” in the rise of organized retail in India.

Pillai was quoted on IndianTelevision.com as stating that retail would “remain the flavour of the month for some time to come,” and thus delivered a message of the possibility of including the lower classes with the burgeoning consumer market. “A shift in the mind set, combined with innovation and design to suit the lives of the poorer members of society, would be instrumental in accessing this very large consuming class,” Pillai said.

Since foreign direct investment in the retail industry may not be allowed for some three more years, Johnson said she expected the slow evolution supply chain integration, Indian brand development, extensions into financial services, good store design and an onus placed on CRM to be the next essential steps.