Millennials will transform Retail & FMCG sector in 2019
The Retail and FMCG sector in India is expecting a promising growth as far as talent is a concern. Industry experts feel the year 2019 has some promising opportunity and millennials and technology will be the most significant growth driver for the change.
The year 2018 was a good year for the sector, and it laid the foundation of many key projects that will get fulfilled. Brands such as Ikea, Samsung, Oppo, Vivo, Apple, Nestle, Patanjali, and others have concrete expansion plans this year.
What is there for the chief of staff to work on and how can they leverage the expansion plans in hiring new talent and retaining the existing ones? Commenting on the outlook for the year 2019, Shilpa Vaid, CHRO, Arvind Lifestyle shares that there will be a need for companies to revisit the traditional staffing norms linked to square feet/ format type and move to more dynamic staffing at stores. It can be done by reviewing existing processes; leveraging technology/automation and ensuring that the sales staff is better utilized for customer engagement/ interactions.
According to Randstad, Retail, Banking, Financial Services and Insurance (BFSI), and Fast-Moving Consumer Goods (FMCG) will be the key drivers for growth next year.
The budgetary announcements in farm insurance and Ayushman Bharat, the national scheme that aims to provide healthcare coverage to 500 million people, will drive hiring in the insurance sector. Retail and FMCG companies' focus on tier II, tier III cities, and rural areas to drive growth will create more jobs in this space.
Key Growth Drivers
Millennials and digital transformation will definitely lead change in the sector. According to Shantanu Das, CHRO, Amway India, in 2019 millennials will continue to transform the hiring process and engagement policies.
He said, “Studies indicate that today’s young workforce want more than just a paycheck. Along with remuneration, they are vastly influenced by factors ranging from organizational culture, value system within the organization, employee engagement policies, etc. For them, flexibility at work and sustainable practices go hand-in-hand with work-life balance and focused career development.”
India’s retail market is expected to increase by 60 percent on the back of factors like rising incomes and lifestyle changes by the middle class and increased digital connectivity. This would have a direct bearing on talent, as there will be a plethora of new opportunities for young and experienced people.
“Big MNCs lined-up and existing players flexing their muscles to bring on-board latest technologies like AI, Machine Learning, IoT, Chatbots, predictive analytics in an omnichannel world, there would be a growing need for people with specialized skills and knowledge. This would also mean a growing interest for talent movement across geographies and functions to fill any void”, said, Venkataramana B. Group President, Human Resource, Landmark Group India.
The industry will see a major shift on the backdrop of the recent mergers and acquisitions of FMCG brands such as GSK-HUL, and Walmart-Flipkart. It’ll blossom this year with high hopes for the job sector.
Swedish brand Ikea is investing Rs.5000 Cr in its upcoming Noida store which will create 4000 direct and 4000 indirect jobs. Indian brands such as Patanjali and Dabur are planning to spend thousands of crores in 2019 in states such as Maharashtra, Assam, Madhya Pradesh, and others.