Times are changing now…and how! Not too long ago the experience of ‘shopping’ was restricted to a friendly neighbourhood shopkeeper who didn’t mind doling out a routine petty credit for household buys. While the old school still remains a major part of the retail experience there is a new breed of organised retail that has been coming to the fore in recent times. With the retail industry growing at a whopping 3 year compounded annual growth rate of 46.64%, this is the fastest growing industry for the Indian economy. The erstwhile kirana shops or the mom and pop stores (unorganised retail) are making way for new formats such as Departmental stores, speciality stores, hypermarkets, supermarkets, E-tailers and convenience stores. Malls have become the way of life even in smaller B-towns lending out a family shopping experience like never before!
The growing organised retail is expected to expand to a market size of USD 260Bn by 2020, with 3-4 million new direct jobs and 4-6 million new indirect jobs (logistics, contract labour etc). Currently, India Retail accounts for nearly 22% of the country’s GDP and contributes to 8% of the total employment. These statistics are obviously set to move forward and grow exponentially in the days to come. On the flip side however, one pertinent question that plays on the minds of most of the long-term stakeholders is whether India is suitably equipped in skilled manpower to match the growing scale? Or is this scale going to lend to instability due to the skill supply-demand mismatch?
In the overall matrix of challenges before the Indian Retail Industry, HR challenges are far more daunting than the rest. A significant portion of the current workforce comprises of undergraduate segment (XII and below) – nearly 55% of the total workforce. Hence these human resources lack the basic skills to be effective in the retail industry. With the next phase of growth coming from Tier II/ Tier III locations, a huge growth in Organized Retail Landscape is expected. However, the Industry is expected to face challenges in getting the right talent to be successful in the long run.
Skill enhancement by devising the right training, for enhancing employability of those with minimal education is the biggest challenge and an opportunity for preparing ourselves for the future. In an industry where attrition is as high as 35% identifying and imparting the right training is the key to resource longevity.
Innovative training interventions in the micro verticals of Soft Skills, Retailing, Language, Technical, Product knowledge are the key drivers to negate the skill shortage demands. For a young, vibrant and ever-growing retail industry that is highly manpower intensive, impact on training investment will be reflective on employee confidence, improved efficiency and effectiveness, high customer involvement and reduced attrition. All the above, will only lead to a more equilibrated demand-supply equation and fuel the next level of impending growth.
It’s noteworthy that there is a growing awareness of the scope of opportunity that lies before us. A large and level playing field where no one has an advantage and everybody has it too! Hopefully, the coming year 2012 will see new and existing training organisations lining up with innovative skill development initiatives that will be a positive extension to the existing skill ecosystem.