The Indian grocery retail sector is enterring a phase of rapid growth and transformation, with the advent of modern retail formats and changing consumer attitudes towards grocery shopping itself.With greater exposure to newer retail formats, the Indian shopper’s store choice is being driven by factors other than just value offerings. Convenience, product quality, and range – which were traditionally perceived as secondary influencers of store choice – are beginning to play a more central role for the Indian shopper.
Traditionally, the bulk of the grocery shopping in India was done during multiple short trips to the local kirana store. Gradually, working urban shoppers are becoming significantly more organized in their approach. There is an observable trend towards fewer trips to supermarkets, while the volume of purchases per trip is on the rise.
Modern retail formats have mushroomed in the metros and mini-metros, and over the last few years have also begun to establish a presence in the next rung of cities, exposing shoppers to new shopping, entertainment and food options, all under one roof.
Getting closer to today’s shopper is the first step in rethinking the modern grocery store.Bellow are some types of consumers who have become prominent in today’s grocery-shopping environment.
The New Value Shopper: Those seeking the best deals can come from all income strata these days.
The Techno Consumer: Increasingly, shoppers can find just about everything they need in cyberspace.
The Indulgent Shopper: Who cares if it’s not on sale?
The Convenience Shopper: Small formats are just part of the solution to expediting the food-shopping experience.
The Channel Surfer: More retail choices make it easier for consumers to cherry-pick based on specific needs.
The Ethnic Shopper: Authenticity and strong community bonds are key to attracting these consumers.
The List Maker: Supermarkets must work hard to influence the buying decisions of these careful planners.
In the retail industry, it seems as though we are constantly faced with the issue of trying to find new customers. Most of us are obsessed with making sure our advertising, displays, and pricing all “scream out” to attract new customers. This focus on pursuing new customers is certainly prudent and necessary, but, at the same time, it can wind up hurting us. Therefore, our focus really should be on the 20% of our clients who currently are our best customers.
In retail, this idea of focusing on the best current customers should be seen as an on-going opportunity. To better understand the rationale behind this theory and to face the challenge, we need to break down shoppers into five main types:
Loyal Customers: They represent no more than 20% of our customer base, but make up more than 50% of our sales.
Discount Customers: They shop our stores frequently, but make their decisions based on the size of our markdowns.
Impulse Customers: They do not have buying a particular item at the top of their “To Do” list, but come into the store on a whim. They will purchase what seems good at the time.
Need-Based Customers: They have a specific intention to buy a particular type of item.
Wandering Customers: They have no specific need or desire in mind when they come into the store. Rather, they want a sense of experience and/or community.
Retail is an art, backed up by science. The science is the information we have from financials to research data (the “backroom stuff”). The art is in how we operate on the floor: our merchandising, our people, and, ultimately, our customers.
