Twist in retail: Get set for NextGen local stores

Savvy shoppers that they are, Indian consumers aren't completely taken with the glitz of the malls, and their hypermarts and supermarts. They love the shopping experience but they still drop by at their friendly neighbourhood kirana store. Besides, the bulk shopping that they do at these modern retails stores, there are the weekly top-ups to do at the local grocery, and the perishables that have to be bought daily.



A survey commissioned by SundayET to global market research company Synovate, has found that a sizeable 63% of the total respondents prefer to straddle both worlds: that of the mall as well as the local grocer. Only 26% talked about a marked preference for the mall alone, while there's still another 11% that's completely unmoved by modern retail and prefer their good ol' mom and pop store.



The survey was conducted among 802 consumers, comprising an equal number of men and women in the age group 20-45 years in Delhi, Mumbai, Chennai, Kolkata, Bangalore, Ahmedabad, Hyderabad, Kochi, Pune and Lucknow.



According to the survey, the entry of the modern retail chain seems to have even changed the way weekends are spent: 53% of the people interviewed said their weekend shopping behaviour had changed. What's more, a whopping 69% agree that shopping at malls were treated as weekend outings for the family.



Says Preeti Reddy, vice president, Technopak Advisors: "For the Indian consumer, the mall with their hypermarts are seen as a destination — not a place for one's regular shopping because of problems of transportation, shortage of storage space, weather conditions and the preference to eat and buy fresh. The local grocery is where most of the regular shopping is done. This isn't going to change for a very long time."



If the modern retail format was introduced on the premise of experiential marketing, consumers certainly seem to be loving the experience — 60% admitted they tended to overspend and the more they visited hypermarts and supermarts, the more they splurged. Not just that — with the entry of modern retail, 70% felt that their shopping spends had increased.



And would you believe it — 92% like the staff in modern retail stores and find them courteous and friendly? Their neighbourhood store couldn't have been all that friendly after all.



But in case you've felt that the quality of shop floor staff is rather low, this could be an eye-opener for you: 87% respondents felt that they displayed effective communication skills and 84% said that they made them feel important. So surprisingly, there are no complaints on that front, it seems.



But that doesn't mean consumers don't have an opinion on how to improve things. Raghu Pillai, president (operations) Reliance Retail, agrees that shoppers are enjoying the new ambience.