MAM
Report on Shemaroo

Expectations from the government in formulating national retail trade policy in Budget 2020

Year 2019 saw the retail sector facing multitudes of problems

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/01/31/deva.jpg?itok=1g6fKz1Q

India is the fifth-largest global destination in the retail space. With the budget 2020 being around the corner, there is a hope that the new policies will have a positive impact on the retail and the consumer sector. The retail sector is the most dynamic sector in recent times, there has been drastic changes and has witnessed high consumer activism, supply chain model, marketing and advertising activities and introduction of new players in the market. 

A joint report by Assocham and MRRSIndia.com suggest that the retail the Indian retail / consumer market is set to cross the $1 trillion mark by 2020 due to rise in per capita income and consequent expenditure. 

Below are the 8 challenges which were faced by the retail sector in 2019:

  • Higher GST rates for retail players have been resulting in accumulation of non-refundable credit due to substantial spend on advertising and branding spending capacity. 
  • There has been multiplicity of laws and regulations governing the sector
  • Restrictive conditions under the foreign direct investment (FDI) policy for single-brand retail trading leading to ambiguities and hurdles for the e-commerce sector. Improvising conditions and minimalizing restrictions will further give a boost to FDI.
  • Lack of clarity and understanding of regulations/guidelines governing imposed on online retail trading. 
  • Lack of proper physical and digital infrastructure, developed supply chain resulting in inefficiencies and higher costs. 
  • Growth in retail sector has resulted in a growing demand in the real estate sector thus resulting in a rise in overall real estate cost
  • Lack of effective supply management. Solid infrastructure and developed supply chain will improvise the foundation and overall profitability
  • Lack of incentives for the new players in the retail market. 

Budget 2020 gives an opportunity to the government to address the main problems faced by the retail sector and push the economy to a higher growth. Some of the expectations from the government in Budget 2020 are listed below.

  • GST slab to be simplified and successful / structured implementation of new mechanism that will help ease the process. We also look forward to the reduction of the GST which will encourage more people to spend.
  • The budget may focus on simplification of the government laws will have a positive impact on the sector and will give freedom to try new techniques and introduce new trends. Also Clarifications on open issues and introduction of measures for ease of doing business would be of great help.
  • The budget should consider educating the retailer and traders and clarifying regulations for retailers ensuring sound risk management practices and KYC (know your client) mechanisms.
  • Promoting partnership and collaboration for accessing new channel capabilities, digital technologies and easier entry into new market may help in optimizing costs.
  • A further initiative by the government by introducing laws and rules to reduce the real estate cost would prove to be of great help to common man who look forward to live in beautiful homes or for investment purposes. Stabilisation of tax policies on properties would also be beneficial since there is a constant change in rate slabs.
  • Introducing new incentives and bold reforms will encourage the new-bees in the retail industry to expand their activities across various platforms.
  • Supporting rural growth and expecting positive initiatives like MGNREGA, increase in the MSP for select crops, focus on electrification of villages, farmer friendly technologies, etc.
  • We expect new entrants/ investors in the FMCG space with the introduction of simplified tax structures, stability in custom duty and a less aggressive tax administration.
  • A special start-up growth fund to support start-ups will boost the start-up ecosystem immensely.
  • We expect the budget to provide impetus for digital payments (Debit and credit cards, UPI)

With all believe in the government we expect new reforms in budget 2020 keeping in mind the betterment of the retail sector and in the best interest of retailers and common man.

(The author is retail head, Kalpataru Ltd. The views expressed are his own and Indiantelevision.com may not subscribe to them)

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/02/meesho.jpg?itok=6oKaxZXR
Meesho calls on women entrepreneurs to take the social commerce dip

Social commerce platform Meesho has launched a new TVC to create awareness about the wide range of products available on the platform for micro-entrepreneurs to choose from, share with their customers and make earnings towards their small-scale businesses.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/02/wm.jpg?itok=Cih5QsLo
Global washing machine market to exceed $32,000 million by 2026

With the outbreak of Covid2019 and people becoming more hygiene conscious, the global washing machine market is forecast to grow at a rate of over seven per cent during 2021-2026, revealed a report by global management consulting firm TechSci Research.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/02/tata.jpg?itok=u9UVwTjd
What Tata Sky's ‘Khidki’ is all about

Despite the emergence of varied new-age devices to consume content, Indian viewers are still connected to television sets. Drawing upon this fact, leading DTH player Tata Sky has unveiled a new campaign that shows different shades of consumers’ emotions if the screens were looking at them.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/02/amit.jpg?itok=I8noh5aM
Taking the IPL Cricket Live sponsorship was great: Byjus’ Atit Mehta

The Indian Premier League (IPL) provides a fabulous bang for the buck. Many a marketer has testified to its effectiveness over the years and more so recently with the explosion in interest in the tournament.

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/dabur.jpg?itok=7BQ5qoG4
Havas Creative bags creative mandate for Dabur Vedic Suraksha Tea

NEW DELHI: Dabur Vedic Suraksha Tea has awarded its creative communication mandate to Havas Creative. As part of the mandate, Havas will be handling the creative duties for Dabur Vedic Suraksha Tea and all its extensions. The business will be managed out of the agency's Delhi office.

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/gk.jpg?itok=uLLQrMZz
Goodknight Fabric Roll-On readies kids for outdoor playtime

NEW DELHI: As restrictions ease and children begin venturing outdoors again, Goodknight has launched a new digital film for its Fabric Roll-On, a personal mosquito repellent that is made with natural ingredients. The video highlights how along with precautions of post-Covid world, children need...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/3.jpg?itok=WOKbFu-P
Pulse leverages World Compliment Day to praise brands on social media The campaign has been conceptualized by FoxyMoron

Mumbai, 1st March 2021: On World Compliment Day, FoxyMoron (part of the Zoo Media network) partners with Pass Pass Pulse to compliment brands who are leveraging social media to engage with consumers in the most appealing manner. Through a series of smartly curated messages, the confectionery brand...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/2.jpg?itok=92rtHRw4
No more waiting: McDonald’s makes birthdays special for leaplings

Every year, we eagerly look forward to our birthdays. But ever wondered about leaplings – people who were born on 29 February, a date that comes only once in four years? What an unusual day to be born on, right? To make this year special for leaplings, McDonald’s is curating an exclusive menu which...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/03/01/surf.jpg?itok=oaUFdLun
Surf Excel on celebrating a socially distant Holi

With Holi right around the corner, Surf Excel, the daag acche hain-brand, has released a special campaign for the festival of colours. The film looks to address the emotional need of connecting with loved ones with a heart-warming story featuring a young child wanting to play Holi with an elderly...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required