Horeca Industry Carving A Niche On The Retail Map

Tanit Chearavanont writes on how the booming food service business in India has augmented business for cash and carry players in the India retail industry over the past years

- Tanit Chearavanont

The Indian retail industry has developed significantly, rising as a standout amongst the most venturesome and dynamic parts of the economy. Today, the retail segment represents over 10 per cent of the nation's (GDP) and a stunning eight per cent of the nation's employment as indicated by the India Brand Equity Foundation (IBEF). With India positioning as the world's fifth-biggest destination worldwide in the retail space, the part is probably going to observe more development because of strong household request, in the years to come. Digital technology will play a great role in expansion of this industry.

Fuelling this growth, both FMCG and online retail players are looking beyond traditional trade channels to boost revenues whilst gaining an express entry into the HoReCa (Hotels, Restaurants, and Catering) segment in India. Over the past couple of years, the food service business otherwise called the HoReCa business has turned out to be one of the fastest developing ventures on the planet. Business-to-business (B2B) discount mammoths are progressively assuming control; accounting for nearly 1.3 cr organisations compared to 1.2 cr Kirana stores, the segment is one of the fastest growing in India and provides immense opportunities to cash and carry players. The time is ripe for organised retailers to foray into this market. However, the biggest challenges faced by this segment include transparency in transactions, consistent supplies and value solution in terms of products and services. Also, there is a dire need to rework the retailers’ approach and provide end to end automation, disintermediation of supply chain, transparency and predictability for customers leading to consumer satisfaction.