Retailers' Association CEO Says Demand For Products Currently Flat

The demand for products this year is flat, but not in negative as compared with the previous year, according to Kumar Rajagopalan, chief executive officer of the Retailers Association of India.

“The upcoming wedding season will help in increasing the demand for various products. Retailers didn’t expect huge business, but they do expect a double-digit growth, which currently isn’t the case,” he told NDTV Profit on the sidelines of an industry event in Delhi on Friday.

Rajagopalan said that inflation faced by people at the bottom of the pyramid forced them to think twice before spending. It’s essential that customers retain their jobs and receive increments, which will help them to adjust their spending patterns, he said.

“People from upper middle class and higher class have definitely spent on buying products. Even the middle class population have spent more than their incomes due to the availability of credit and their involvement in consumer financing,” he said.

The CEO is optimistic about the upcoming Union budget. He expects that the poor and people at the bottom of the pyramid receive more money along with improved infrastructure in the country.

In terms of the retail trade policy, Rajagopalan said that the sector is a local subject and does not concern the central government. But, the central government is coming up with a module with the right policies which can be adopted and propagated by the states, he said.

“Many of the states will adopt it. Currently, four states have already adopted it and I believe that more states will follow soon.”

It’s important that the policies which are adopted should be implemented and executed at the ground level, he said.  

Rajagopalan also stressed on the participation of woman in the retail sector, which is presently minimal. Changes in the current policies will help to improve the scenario, he said.