Consumer Business & Transportation
With a significant amount of investment, both intellectual and monetary, the consumer business industry witnessed a revolutionary change around 2004 in what can be termed a second phase of reforms. As a result, changing regulations and the globalization of the economy has enabled modern trade and retailing chart a new path in India.
From a consumer perspective, rising incomes, coupled with a greater availability of credit, has resulted in increasing aspirations and an exponential growth for new-age companies.
Consumer product companies, retailing, and tourism, hospitality & leisure players have all been impacted by this speed of change.
We combine our innovative marketing knowledge with expertise of new technology, operational efficiencies and vendor relationships and the complex relationship with the consumer supply chain. Our experience across all segments of the consumer business industry allows us to understand the issues and trends our clients face. We align our integrated teams of specialists with our clients' strategies to help them enhance operations and achieve measurable results.
A burgeoning middle class with an eager desire to experience a better lifestyle, coupled with an open market, has lead to a growth in the number of international consumer product companies operating in India. Doing business in India has never been more exciting and is witnessed by a significant allocation of global resources to Asia, particularly India. India has also become a sourcing base for companies operating in the region.
The 300 million and growing strong base of Indian consumers is exposed to many more products and services, but remains keenly aware of value. This in turn leads companies to be responsive to consumer preference and invest in brand building. The India proposition needs companies to understand the Indian consumer and his needs, and to respond to these with not always merely replicating the West.
With India, the size and scale of operations can be impacted by niche regional players, who hold an edge in terms of production and delivery costs. The packaged foods segment is a case in point; regional players have carved a share of the pie from national and international players in this segment.
Our in-depth business experience enables us to provide effective, strategic solutions that are tailored to your needs and help you unleash the full potential of your organization and attain profitable growth. Our professionals bring deep industry understanding to the specific issues faced by manufacturers and consumer services providers and will work with you to deliver what every customer understands – good value.
With combined sales of $978.5 billion by the Top 250 global companies in 2006, the Top 10 global retailers captured 30.1% of this total, a healthy 10.2% rise over 2005.
In India, in 2006, retail sales notched $395 billion when measured using current exchange rates. Of this, it has been estimated that only 3% is represented by modern retailing (the figure for big cities is estimated at between 10% and 20%). Though still a nascent market in India, the industry is covering ground at rapid speed. In the 1990s roughly one million square feet of modern retail space was added in India. Starting in 2001, this pace increased dramatically. In 2003 alone, roughly 10 million square feet were added. Most analysts now expect modern retailing to achieve between 6% and 10% of retail sales by 2010.
Interest in retailing has fuelled both domestic and international interest. On the domestic front, there are significant strikes by Indian players to enter, consolidate, and grow their presence in this segment. However, opposition to their presence is growing louder. Due to lack of adequate understanding of government policy and an uncertain road ahead, international players are cautiously eyeing the retailing sector.
However, the market is buoyant for India. With nearly 60% of the population under the age of 30, the next few years will see a rapid rise in the number of young households, thereby stimulating retail spending. Young households tend to spend more on goods rather than services, tend not to save much, and tend to spend heavily on apparel and products for the home. The degree to which the financial system supports the growth of consumer credit will determine the scope for big ticket spending by young households.
We are privileged to work with exceptional clients across the retail and consumer products sectors. The success of our business is founded on making a difference on each and every engagement with these clients.
Tourism, hospitality & leisure:
Change has been the one constant in the last decade, with world society and economy changing rather fundamentally, and no industry has been more impacted than travel and tourism. Concerns about security, global conflicts, health, travel restrictions - and even shifting weather patterns - have altered the way people think about business and vacation travel. Within this global context, India has also changed - from its traditional position as a leisure and vacation destination, to becoming one of the economic engines of the future, driving business travel. Today, India is witnessing a generational shift never before seen. The “Indian Elephant” is now also attracting attention from the global majors, all of whom are now present in the country, anticipating the changes wrought by increased capacities and supply in airports, airlines, hotels, food service, and all related areas.
And if these new realities weren’t enough to complicate things for the Tourism, hospitality & leisure (THL), today’s consumers have higher service expectations than ever. They demand nothing less than excellent service at a great price. Consumers of the India THL product have reached all-time highs, proving India’s importance as a tourism market (Inbound tourism at 4.5 million, domestic travel at over 400 million). At 8 million, the Indian outbound traveller is also an important source market, and increasing awareness equals increasing sophistication within the domestic market as well.
We leverage on the excellent track record of our global network in the industry over the years resulting in extensive experience assisting some of the largest players around the world in hotel & resorts, food service operators, tour operators/ travel agents, well-being and fitness clubs, rail transportation and tourism authorities. Our THL group provides solutions to businesses by integrating emerging technologies, by using new products and services, and by helping clients get a renewed commitment to the consumer. Some of the main services for this industry are strategic planning, market evaluation and feasibility studies, merger and acquisition services, restructuring and IT turnaround, customer relationship management, performance benchmarking and IT integration.
Companies from all transport sectors are increasing their local as well as global reach as they move beyond traditional geographies to grow their businesses. The challenges posed by the current economic climate, tougher competitive environment and regulations require the very best professional service providers dedicated to helping Indian transportation companies succeed.
We have significant expertise in Ports & Shipping, Aviation, Rail, Road and Water transportation sectors. Valuable experience accumulated over years of association with leading private and public sector companies in India gives RHR a clear advantage. Constant research and innovation provide a distinct edge to our client solutions.
RHR India provides Consulting, FAS, Tax and Audit services to the Transportation sector.
Interested in learning more? Contact us or Call RHR,
Corporate & Cummunicatios: (+91-033-2530-0226 ext. 23,24)
(+91-033-2360 6819 / +91-033-2351 8528 / +91-033-2360 8074 ext. 25,21).