Modern Retail has become synonymous with convenience and ease. New buying behaviour seen amongst the newer generation of consumers indicates that they prefer shopping at malls and would like to buy all their requirements under one roof, with complete freedom on selection of the merchandise. As Indian consumers ring in the new year, they take forward several expectations and behaviours displayed over 2013. With India’s internet users expected to grow from 164 million to around 240 million in 2014, the online space is beginning to capture a significant share of consumer behaviourial nuances.
An analysis of social media conversations by IBM Analytics over September to December 2013 (when the year’s shopping skyrockets), threw up consumer wish lists and buying considerations. At 70 percent, the electronics, automotives and consumer durables categories dominated the wish-lists. In products, smartphones, laptops, bikes and SUVs topped at 75 percent. Price ceased to remain the overriding consumer consideration, as style and design also matter now.
Health food has emerged as one of the most sought after categories among shoppers for their monthly buying. Growing awareness regarding health benefits of the products they seek is making them more inclined to use nutritional information on the labelling before making product choices. Hence, we can expect increasing demand for food and beverages with health claims supported by informative labelling as consumers make a conscious attempt to include them in their regular diet.
Packaging of health foods and drinks, especially formats that are convenient, easy to use, carry, and store, enhance the appeal of the products. In fact, sustained purchase and consumption is also being driven by product packaging, size, and format aimed at providing convenience of usage.
With new investments from international players like Tesco and Carrefour and many other international players set to roll out sooner then later in the country’s multi brand retail, the food and grocery retail scenario is likely to open up many new opportunities as analysed by industry experts. In fact, the organised retail sector is set to re-emerge as one of the sunshine sectors of the economy with tier 2 and 3 cities reporting a huge surge in sales, both offline and online. . With India’s economy slated to perform better due to the various initiatives being taken by the Central Government in view of the forthcoming polls, it’s the consumers who are going to be benefitted in the coming times.
This phenomenon will gain greater significance with the introduction of larger and more diverse retail formats by organised retailers. In fact, a variety of formats are being rolled out, with mixed success. Both retailers and shoppers are currently in an evaluation phase with no clear verdict as to what may drive the choice of stores in the longer term.
While choosing to buy food and grocery from modern retailers, the customers consider mainly 5 factors, which were extracted using Principal Component Analysis.
1. Factor 1 has three variables under Product Choice . These are product variety, quantity to be purchased, and expected prices.
2. Factor 2 showed under variables, simple and easy signage (good visual merchandising), courtesy of store staff, knowledge of the staff (customer handling skills), similar products at one place (efficient store-layout), and regular availability of stocks (good inventory management). All of these characteristics have been termed as store management.
3. Factor 3 are value added services such as phone order facility, home-delivery facility, credit-facility, and bargaining facility.
4. The variables under Factor 4 are dissonance reducing measures such as goods return facility, and goods exchange facility.
5. Factor 5 refers to other initiatives as taken by the stores to promote sales such as sales-promotion schemes and loyalty-programmes.
All these findings in the last few years of operations of modern trade have resulted in new initiatives being taken by retail chains and innovations by brands to grow their business.
