MOD­ERN TRADE TRYST WITH THE FES­TIVE SEA­SON

Progressive Grocer (India) - - Cover Story / Festive Focus -

A Nielsen study says that to­day, al­most 50% of shop­pers visit mod­ern trade, re­sult­ing in a 13% in­crease in store vis­its. There is also a sig­nif­i­cant over­lap be­tween a tra­di­tional trade and mod­ern trade shop­per. Nearly half of tra­di­tional trade shop­pers also visit a mod­ern trade store to­day. In­creas­ing per­sonal dis­pos­able in­comes and the ris­ing lev­els of women in the work­force has also led to more fam­i­lies opt­ing to shop in mod­ern trade, which of­fers greater sav­ings on their en­tire shop­ping bas­ket. In ad­di­tion, the shop­pers sit­ting at the lower end of the eco­nomic spec­trum have started com­ing into mod­ern trade. Termed as LIVE (Low In­come Value Ex­plor­ers), th­ese shop­pers, on an av­er­age, spend sub­stan­tially on FMCG prod­ucts in a mod­ern trade store, and one in two visit a mod­ern trade out­let in a year. This con­sumer seg­ment has shed its dif­fi­dence in terms of its buy­ing habits. For shop­pers seized by as­pi­ra­tion and inse­cure about their well-be­ing, mod­ern trade is an in­dul­gence that im­parts a sense of progress. The re­tail en­vi­ron­ment to­day sees con­stant and in­tense com­pe­ti­tion. Ev­ery re­tailer wants a high share of the cus­tomer’s wal­let be­cause it will ul­ti­mately im­pact their val­u­a­tions. No­body wants to be seen as los­ing mar­ket share to a com­peti­tor. For re­tail­ers, big events rep­re­sent a big sales surge; there­fore, ac­cess­ing the shop­per spend be­comes most im­por­tant as it will bring a jump in the GMV (Gross Mar­ket Value) and en­able higher cus­tomer ac­qui­si­tions. Mod­ern trade has an edge over gen­eral trade in terms of con­ve­nience, prox­im­ity and pro­mo­tions and th­ese need to be lever­aged to en­sure that greater busi­ness and growths can be juiced for this for­mat. Big fes­tive events are an ace in the mod­ern trade re­tailer’s pack, which they need to har­ness bet­ter to truly stand apart from the crowded gen­eral trade mar­ket.

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