Indian Grocery Retail Market: Risky Market for Careless Players
Indian grocery retail market is one of the biggest businesses now and will continue to flourish in future as well.BY Nibedita Mohanta | Oct 10, 2017 | comments ( 0 ) |
Indian grocery retail market has seen ups and downs since the time; it started to set its foot on Indian soil. Now when some companies have already seen the afternoon, some could not see post dawn.
Indian grocery retail market is one of the biggest businesses now and will continue to flourish in future as well.
India’s retail market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10 per cent to US$ 1.6 trillion by 2026 from US$ 641 billion in 2016. While the overall retail market is expected to grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent#.
India’s Business to Business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020.## Online retail is expected to be at par with the physical stores in the next five years.
India’s total potential of Business to Consumer (B2C) is estimated to be US$ 26 billion, of which $3 billion can be achieved in the next three years from 16 product categories, according to a study by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Institute of Foreign Trade (IIFT).
Here are some of the reasons, why some of the super markets could not grow like Big Bazaar or Reliance Fresh:
1. Identifying the customer:
There are around five types of customers, which visit the super markets. They can be categorized as quality seeker, value seeker, and clear-headed, decisive, novelty seeker.
Some want to get the quality products and care less for the money part, some are very peculiar about the price of the product and are ready to compromise with the quality, some fall under clear-headed, where they are quite sure what to get and how much to pay, then there are some who fall under the category of decisive, they are a bit dangerous because they want discounts, little extra and bargain wherever possible, at last comes the novelty seeker, who wants to try the new products and are easily fascinated by advertisements.
Most super markets fail to identify their customers and eventually fall flat on their face. Unless you have a clear idea of your customer, you cannot sell the product and make business out of it.
2. Lack of Discipline:
The super market culture has been adapted by the western countries, who too have gone into the minute detailing before starting super markets. it requires research, proper planning and discipline to start any business.
When super markets started popping up in India, people blindly ran after just the idea, without following the pattern. Some small super market owners did not do the research, planning and left discipline right outside the door. Aiming only at the profit, they failed to maintain discipline, inconsistency of product delivery, improper arrangements of products, huge lack of manpower.
This all combined together gave a massive blow to their business.
There is no short cut to success and it remains true to all small or big companies, who want to make it big over night.
Some companies tried to opt for the shortcuts and opened their super markets in anywhere they could acquire a piece of land, without going much into the market study or demands of the locality.
Some opted for cheap manpower, especially for a place like super markets; the minimum requirement of the staff boy should be polite, well spoken and educated. Some companies thought of skipping the basic important steps and jumped to the conclusion of opening a super market, which made all the difference in other players, who made it big and are still flourishing.
- Appointments & Recognitions
Reliance Retail gets a
Reliance Retail an arm of Reliance Group has recently appointed Hemant Kumar Ruia as its new CFO;