MODERN TRADE TRYST WITH THE FESTIVE SEASON
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.