In India the market is hybrid, even though corporate groups have entered the retail business recently, and traditional retailers remain strongly competitive and an evolving part of the economy, says Devangshu Dutta, CEO of Third Eyesight Consultancy. Dutta shares his thoughts on the Indian retail industry in conversation with Sarita Gujar. Edited excerpts:

Should the traditional retailers move towards organised retail?

Most large retailers in developed economies started life as a small owner-driven retail operation, many of them being family-owned through not one, but multiple generations. Out of the hundreds of millions of retailers around the world, only a few successfully go through a journey of growth and sophistication in operations. Most remain small and unsophisticated, and many die in the face of competition from larger retailers who have grown into chains.

What aspects of traditional retailers are unique to consumers and will always stay same even when they grow?

In most markets, retail businesses grow and modernise organically, over time. The exceptions are some of the more recently modernised economies. For instance, in Asia and Latin America, which have seen explosive and modern retail has grown inorganically -- as large business groups entered the business. In India the market is hybrid, even though corporate groups have entered the retail business recently, and traditional retailers remain strongly competitive and an evolving part of the economy. Many of the traditional retailers are growing into modern chains and competing effectively with corporate retail "start-ups".

With changing time as traditional retailers become organised, how will it affect their business - positive and negative side? Please elaborate.

Retailers that successfully grow into chains have to transform their business dramatically, so it can be a challenge to retain all the defining qualities from the time when they were a single store operation or a small chain. As the chain grows the management involvement of the original owners reduces at the store level, and the business begins to reflect the collective qualities of all the people employed with and involved with the business.

Systems, processes and manuals take the place of knowledge and experience of the original owner-managers. This definitely changes the"feel" of the business for customers, suppliers, and employees. However, good brands (and retailers) identify what makes them unique to their customers, and do what they can to ensure that those qualities are maintained and nurtured even as the business grows into a company, and into a chain that spans many markets.

Will unorganised, local brands in lifestyle and kirana stores get affected by the presence of giant organized players?

Of course, for most businesses that grow from being traditional, founder-managed operations to organised corporate structures, additional costs are inevitable. Not only do higher overheads need to be incurred for corporate systems and management across the geographical spread of the business, but also legal compliances become a necessary additional "overhead".

On the positive side, well-organised, well-managed businesses would also find it easier to receive funding, investor interest and positive coverage in the industry and among general public.

Will traditional organised retailer survive and succeed in this vast retail market when big brands are coming up with chain stores, and new brands are trying to enter Indian market with all new marketing gimmicks?

It is inevitable that some, perhaps many, small retailers will die in the face of corporate competition. To the businesses that die, it does not matter whether the competition that kills them was Indian or global, offline chains or online e-tailers. But the ones that survive can only do so by maintaining some edge, be it through product mix, high service levels, knowledge of their specific customers, or control over costs.