The popularity of experience retail globally has been on the rise over the years. Multiple factors seemed to have contributed to the growth: consumer expectation for a phygital experience where consumers want to a get taste of the product before ordering online. Many experts believe that experience is itself a product.
As per an Eventbrite study on American demographics, 72 percent of millennials prefer to spend their money on experiences, not stuff. Given the case, retail stores that sell products associated with relevant experiences are more saleable.
In India too in the last 10 years, successful experience retail stores like Trent, Lifestyle, FabIndia, Logitech, etc., have been focusing a lot on providing a suitable experience to their consumers. Again, if we look at the 'impulse buying' aspect of the consumer, even at supermarkets like Big Bazaar, Vishal Mega Mart, Shopper’s Stop, etc. with a wide range of options available for the consumers, they prefer impulse buying while they are at it.
Founded in 2019, Tynimo is a brand that claims to be a pioneer of sorts in the segment.
“We aren’t a supermarket as such. In other brands mentioned above, they are huge, the assortment is common, experiences are nil and there is not much focus on impulse (speaking about supermarkets). These are more perceived as necessity stores. Tynimo is more personalized into lifestyle accessories with 15+ specialized categories. These are not a necessity but they are impulsive enough to attract any person walking outside the store,” said Vaibhav Jain, Founder, and Director, Tynimo.
Currently, the brand has 8 operational stores - 2 of them being at Bangalore Airport and Mumbai Airport. The company was set to open a store at Lucknow Airport in June.
According to the current sales trend, majority of shopping happens in their stores by women and kids. Toys, Footwear, Bags, Stationery, and Home Décor are the fastest-moving categories for the brand.
Sourcing of Products
The company’s 45 percent of products come from India, while the remaining is imported. The company aims to make it to 50:50 by 2025.
“In terms of handicrafts and artisans, we have developed a very exclusive network of suppliers who are based out of varied regions across the country and specialize only in their respective local arts,” Jain stated.
The company has refrained from disclosing the number of sales it is make from its stores.
Paint-points To Grow in The Sector
Since the success of an experienced retail store depends a lot on the customer experience and so a lot depends on getting the right locations to set up the store, building and retaining an effective team who are skilled and present at the store to provide the relevant experience to the customers.
Apart from these, the brand shared that it has been working on the following pain points: getting price benefits from suppliers, negotiating rentals with landlords, and maintaining high selling SKUs in stocks at all times.
Owing to its success, it plans to open 15 stores -10 Franchise and 5 company-owned - and build its e-commerce portal. And, thus aim for building an omnichannel interface going forward.
The company’s long-term plans include entering the Gulf market and reaching Rs 500 crore in the top line (Rs 450 crore offline and Rs 50 crore online). The brand is also working upon an 'on-wheels model' of its retail store.