The new era has ushered in a marked revolution in retail trends. The highly aware, new age consumer demands a high standard shopping experience. There is a definite control over his choice of shopping than ever before, he wants value for his money, and is impressed with the new developments in retail. From the days of yore, when a store was the lone option, he has graduated to a better position of choosing the kind of shopping experience he wants across a variety of sales channels.
Online is in
More customers than ever are turning to the web as their destination of choice. This is opening a vast opportunity to retailers to position their goods on the net, either through their own or through other sites like Amazon, ebay, Yahoo etc. Amazon, the online retail website is raking in maximum moolah while setting an example for others to follow suit. Here is a peek into the growth of e-tail business over the years as per a report of 2009.
World Wide India
2006: 335 billion 800 million
2007: 419 billion 1.2 billion
2008: 517 billion 1.9 billion
2009: 608 billion 2.8 billion
2010: 711 billion 4.1 billion
2011: 813 billion 5.6 billion
So, if you are boot-strapped for cash but have a brilliant business idea, website may be the ideal option for you.
Role of multi channel is getting more defined, retailers are looking to build a seamless integration between online and brick and mortar offerings so as to build customer loyalty and truly understand their target audience. To retain his market share, a retailer must give the same level of experience through the various shopping channels available.
Retailers should therefore focus their efforts in 2011 on striving to maximise return on investment through the integrated use of all sales channels.
Contactless payments are the next step in electronic payments revolutionising the way consumers will interact with retailers. Debit cards and credit cards that constitute atleast 40 per cent of payment modes have made the role of cash already redundant. The new one to join the crop is mobile wallet – payment through mobiles which is still in a nascent stage.
Conclusion: The organised retail market in India that stands at 550 billion is seeing a marked growth due to advent of multiple sales channel and technological advancement in payment. In the last three years, it has recorded a compounded growth rate of 46.64 per cent making it one of the fastest growing sectors in Indian economy. With FDI now in retail, the sales graph will only move much higher. It has been predicted by AT Kearney that India will take over world’s best economies by the year 2042.
Here is a lowdown of trends from Mr. Alok Bharadwaj, Senior Vice President, Canon India, " In the new emerging India where we see customers from different points in the continuum of evolution, both highly mature repeat customer as well as first time buyers, young as well as old, urban as well as rural, we will see multiple channels of distribution. Essentially, there are 5. Firstly, there are multi-brand small format owner driven retailers. Secondly, there are large format national as well as international chain stores. Thirdly, there are brand speciality stores, own or franchisee. Finally, there is offline channel, both online web based as well as teleshopping."
For digicam category, 40% sales is coming from 5000 individual shops, 20% is contributed by 500 stores belonging to large format retail stores,20% is being contributed by single brand specialty stores. 20% is being generated in online and teleshopping space."
Canon has built sales strategy and organisation structure aligned to this emerging trend”.