Today, all retailers consciously make decisions relative to technology; whether technology will be a background or a foreground element of the retail experience, and to what extent that technology proceeds, integrates with, and supports a brick-and-mortar visit on the part of the customer.
Grocery shopping is no less impacted by technology than any other shopping in today’s market. Arguably, because of certain logistical challenges, technology purchasing as an alternative to brick-and-mortar shopping (particularly related to the food category), is less developed in India than it might be in other parts of the world. Warehousing, delivery logistics, and consumer psychology are more focussed on convenience than it might be to the typical Indian consumer, who often still has the luxury of help, and as well, a history of shopping close to home.
Today’s consumer is looking for items that do not currently exist in the shopping environment. Consider unique food products (wine, olive oils, chocolates), or something that they are willing to wait for, because they either want to pay less than the local market prices for the product, or whose distribution network is underdeveloped. However, beyond this, the consumer will increasingly use technology to shape their shopping trip with everything from interesting ideas around entertainment, cooking and menu choices, to even social opportunities.
With the growing range of new and unfamiliar product particularly in modern stores, the consumer may see products that have visual appeal, but do not necessarily have variety or integration into their day-to-day shopping patterns. I walk into many modern Indian stores, and see products not in the freshest state. This leads one to believe that the consumer may look, but not purchase; leaving these items to linger on the shelf. The most progressive Indian stores have brought these products to the marketplace, but failed in many cases to take the most important step –- which is to help the customer understand why these products command a premium, how they can be an interesting addition to the consumer’s diet, and how these most important products, given their premium positioning, can be used related to entertaining where the customer is most likely ready to pay the premium.
Technology in the stores from a consumer perspective can be brought to life through things such as digital signage, integration of tablet technology within merchandising and display areas, and through various codes – whether they be QR, Near Field, or Augmented Reality. These tools allow the customer to use their smartphone devices, to capture the image of a product, which might lead to a whole story of where the product comes from, its uniqueness, and of course, how the product might be served.
It would be reasonable to assume within modern Indian food retailing that the impact of smartphones would exceed the already high level of penetration among the more affluent consumer.
Lastly, technology is a key factor in providing the best shopping experience from sourcing, logistics, turnover, management of inventory, POS and consumer relationship management activities.
About the Author
Kenneth Nisch is Chairman of JGA, a US retail design and brand strategy firm. JGA’s clients include Parx, Baggit, Cacau Show, Hershey’s, Whole Foods Market, McCormick, Godiva, Wolfgang Puck, and Smucker’s. Ken may be reached at [email protected]
