Ajay Seth, COO & Business Head, HHRPL (EVOK)

“Low-growth of retail segment: Despite growth returning to the world economy following the recessionary situation over the last three years, the low growth of the retail segment was significant. A structural shift to low-demand growth environment was observed.Low margins is a byproduct of costs, and majorly affects profitability. We targeted sales, general and administrative (SG&A) expenses, and costs of goods and services (COGS) to operate profitably. Although retail is up against a fragile economy, with slow growth forecast the challenge still persists. With unemployment rate decreasing and consumers dropping their savings to spend, consumer confidence is rising and they are rewarding themselves for saving so aggressively the past few years. Even though online shopping has become more popular than ever, brick-and-mortar stores still dominate. Retailers need to make their stores more luring to people who are perfectly satisfied shopping online. Retailers have to figure out the best way to use Facebook, YouTube, Twitter and other social platforms to its advantage, spending wisely and not just throwing money at it. The retail community is impacted directly and indirectly by instability of real estate market. Retailers are challenged to stay ahead of real estate trends, such as shift in demand for commercial real estate towards more dynamic, smarter, greener facilities. With more and more consumers using smartphones, tablets and other mobile devices to make purchases, shoppers might be browsing in your store and using their smartphones to check competitors’ offerings. Determining how to best take advantage of this technology is a tricky puzzle that needs to be solved.”