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Effective Executive Magazine:
Retailing of Organic Products: Challenges and Opportunities
 
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Growing health concerns are prompting consumers to demand a healthier alternative to chemical fertilizers. As a result, farmers are reverting to the age-old techniques of organic farming. The irony of the matter is that farmers who produce organic fruits and vegetables are having trouble in finding a suitable market for their products. The market for organic products does exist... but the consumers need to be made aware of it.

Crowded… Noisy… Dirty… Cramped… are a few words that come to mind when we think of a fruit or vegetable market. All this is set to change in the coming years. With the markets opening up for foreign companies, the Indian marketplace is set to undergo a radical change. The retailing sector in India is seeing a lot of new trends being introduced to lure more and more customers. The growing popularity of Malls is also generating huge potential for modern retail formats. Increased threat of competition has given the term “Customer is the King” a new meaning. The latest mantra is to provide excellent cus- tomer service and make a difference. With the organised retail market in India being barely 2%, there is immense potential for growth. Though the unorganised sector will be a source of constant competition, this risk can be mitigated by a combination of an efficient retail mix1, good planning, efficient procurement and transportation, and a robust IT platform to integrate all the components. The exposure of the Indian consumers to global cultures has substantially changed their lifestyle. Growing health concerns are motivating Indian consumers to adopt a healthy way of living. The healthy lifestyle is gaining importance today because of the high stress levels that people are exposed to. Following the trend in the western countries, Indian consumers are gradually shifting to a vegetarian diet. Indian households are realizing the importance of having a balanced and healthy diet, as a result of which the demand for fresh fruits and vegetables has increased manifold in recent times. This has created niche markets for organically produced fruits and vegetables. Combined with the advantages of having an organized retail outlet, this provides huge potential for setting up an exclusive business for the sale of organic produce.

 
 

 

Retailing of Organic Products: Challenges and Opportunities, chemical fertilizers, organic farming, retail market, good planning, efficient procurement and transportation, agriculture sector, fertilizer consumption, chemical fertilizers, inventory control, procurement planning.