The rise of Tier 2 towns

Have been on a pan-India tour for the past few weeks, visiting our stores, interacting with my colleagues, our valued franchise partners, mall managers, heads & ecosystem partners and of course, our esteemed customers. I must admit that my trips have been skewed to Tier 2 towns and by design. For, this is where India lives and spends. Over the past 24 months or so, we have witnessed a massive reverse migration from bigger cities to smaller towns, ever since the pandemic led lockdown began. Initially thought to be a short-term trend, things seem to have gained traction all across India for the past 1 year. So much so, that many employees across Industries and companies are now – literally demanding – that they be allowed to WFH with a hybrid model of physical presence at the office precincts.

One’s loss is another’s gain, they say. As a Retailer, I cannot complain!

The photo above was taken early June at Uttar Pradesh capital Lucknow’s famed Phoenix Pallasio Mall on a weekday. The 1 million sq.ft. Mall has a dozen or so international luxury brands, 3 dozen+ international premium brands, over 50+ domestic brands and scores of regional brands in fashion and food. This mall is located pretty much in the outskirts of the town and has a neighbour closely, the 6-lakh sq.ft. Lulu mall which opens doors in Q2 FY22. Last week I was at Guwahati, Assam and our Franchise Partners says the state is about to get 8 new malls. At a Starbucks cafe in Bhubaneswar’s Esplanade Mall, I saw for the first time more tables filled with family crowds than anywhere in India! The foodcourts across Malls are overflowing as though there is a shortage of food in some areas (sic). 

This kind of retail upswing in Tier 2 towns is unprecedented at best. As I celebrate by silver jubilee in Retail this year – 25th year since I started scooping ice-cream in 1997, I have seen multiple waves in retail. The first one was around 2001, when modern retail hit the streets. Around 2008, we saw a Mall boom, primarily led by the Metro cities and Tier-2 asking for department store chains like Central, Shoppers Stop, Lifestyle, Westside among others. Around 2014, the retail growth hit a peak with several unstructured malls (zoning wise) either shutting shop or turning coats to become a commercial (offices) dwelling. Since 2017, things swung back to action, especially after the introduction of GST, much to the surprise of economic critics and experts.

We live in a pandemic world – I don’t call it a post pandemic one – because the virus is just here to stay in some form or the other. Just that we humans have become more resilient. Every 6-8 weeks, the Media Industry fuels scare with new statistics, but consumers have been dodging these overtures since Sep. ’21. This shall continue for a while and eventually pass by. But the growth of Tier 2 markets is here to stay for sometime. One big reason for this is that there is money in the pockets of the aspirational middle class. Monsoons have been good for the past 2 years, so has been Agri-production. Oil crisis has been surging ever since the Ukraine-Russia conflict began. But India and Indians have adjusted. The statistic compilation on inflations seems to read otherwise, but that’s more theory I guess. The jobless have remain so by choice, not because there is a lack of opportunity.

While a small group of people were throwing stones and torching trains at Patna Railway station last week, I saw several hundreds of youth at retail stores and malls working earnestly for a better today and tomorrow for themselves and their families. Real estate, residential and empty plots - especially if it is of any indication, then the smaller towns seem to be a better bet in terms of wealth creation. The surge in Tier 2 markets across India seems to be unstoppable, atleast in the Retail sector, one that is integral to me personally and professionally. The rent for retail stores matches metro cities by 1:1, sometimes 1: 1.5 or even more. The challenge is supply (of spaces) and not demand. This will settle down soon, as well.

 

My travel travails and why I love them

After a long while, I travelled all through the week and in one of the most favourite parts of the country – Northern India. Though the summer was a killer, I enjoyed every moment being there – doing what I love the most in life – observing consumer behaviour at high streets and malls, interacting with our customers, staff, franchise partners, mall owners and the entire ecosystem. Some great food all along – wholesome North Indian stuff was a bonus. 

View of the New Delhi railway station

This is my 25th year in Retail and I’ve been travelling almost 45 weeks a year, 3 days a week for over 15 years now, mostly on work. Though it’s mostly just one Boss to be accountable to, managing a fairly young & a cross-functional team and being a part of a mature, mid-sized organisation is quite a challenge. Here are some quick learning that I have acquired over the years. While all of them may not be doabe by everyone, am sure some of this could be useful to a few discerning ones;

The itinerary

This is the most important part of the journey. I have always believed that the journey is as important (and exciting) as the destination, its quite important that one plans their journey time-table, including the choice of flights / trains / local accommodation. A poorly planned itinerary is the beginning of chaos to come during the trip. 

A shirt holder that I make the best use of

The right luggage

While there is no secret to packing the right quantity and quality of luggage, let me tell you it always is a science and an art. A fairly planned set of clothes – 2:1 ratio of shirts to trousers usually does the work, whether casual or formals. Extra sets of inners always helps, just in case of an emergency. 

Meeting schedules

This is one area where things can go awry – due to a client or a business partner not turning up in time or the most common reason in India for getting late to meetings – bad / congested roads + traffic snarls enroute the meeting place. It really helps adding a 15-30 min cushion ahead of the next meeting including the travel time. If you end up early (to the meeting), there are anyway enough emails and messages on WhatsApp to respond to.

When in the North, do like the locals!

Food / Drinks – the lure

Any business trip is incomplete without a fair dose of local cuisine. After all, what’s the point in sweating out so much if you don't eat well during the journey. But then, I can tell you out of experience, it always, almost always helps to avoid over-eating during business trips, especially if you like loaded stuff or spicy outings. Alcohol, while is an extension of our night life and leisure, may put you out of the best that one can appear, especially in front of the most important people you’re set out to meet the next day. Abstinence during the business trip is among the best though a bit of indulgence is not a bad idea.

Emails & Calls

One thing to keep in mind is when we travel, there could be chances that we miss reading & replying critical emails as well as end up skipping regular review calls / VCs. One trick that has always worked for me is to keep clearing emails while on the move, that is from one meeting to another. That way, the email box always remains light and we are looped in most of the time. While its important to reschedule regular review calls or VCs during the trip, it also helps to have it first thing in the morning, right after breakfast, in the same hotel room, to ensure privacy and quietness which one may not get while on travel. 

Sleep & Rest

This is most important part of the entire journey and the least focused one. Most of us get very groggy (or smashed) when we wake up the next morning because of our “other priorities”. As I said before, it does help to avoid a heady dose of food / alcohol which can put your resting time out of zone. But there is a trick which I have been learning over time. Even when not travelling, I am conditioning my body to sleep for 6 hours – call it yoga or what you will. But a good 6-hour sleep during the night will go a long way in having a very productive day.

Lastly, make time for yourself. For making calls to the family and close friends, laughing off silly jokes and forwards, reading stuff you like, taking photos and writing or posting on social media, doing fun things and to just stay still to see the sunrise and breathe well during the business trip. All work and no play make Jack & Jill dull. So go there and make the best of a business trip next time.