26 July 2022, Mumbai:
How is 'traditional retail' transitioning to 'consumer commerce'
Retail businesses are better described as a customer-centric approach but given the new paradigm of it transitioning to a digital business landscape connecting the critical pieces viz front, middle, and back offices help navigate the Future Consumer Commerce Retail Space.
The expansion of the organic food sector has been noted as one of the major trends in India's food retail market. The demand for natural food has evolved into a requirement over the past few years, although it was mostly a trend in the early 2010s.
According to industry predictions, India's organized food retail and grocery business will expand at a CAGR of 8% between 2021 and 2025.
The organic food industry is anticipated to grow at a CAGR of almost 20% over the same period. The statistics demonstrate the enormous influence the organic food market will have on the food business, both in terms of growth and trends.
Traditional retail formats in India
In the contemporary world, the retail shopping pie emanates largely in-store, online, or via mail buying. Instead, they can be integrated, combining it seamlessly by interplay/interoperability in myriad ways putting pulse by closely understanding customer shopping needs.
In India, where the demand for organic food has increased over the past few years, there has been a significant shift in consumer awareness, pricing, and transparency. Grocers and brands now need to connect every stage of the value chain to a discriminating market and governmental rules as customers become more aware and sensitive of the items they purchase.
Priorities aside, it's critical to recognize a fundamental shift: customers are seeking out better options. A noticeable change in social patterns is a significant driver of the rising demand for organic food.
Traditional retail environment
The sacrifice that consumers make when they choose food products that are grown and processed using chemicals are now being recognized and appreciated by consumers, which naturally affects the decisions they make when they go grocery shopping.
In today's hyperconnected digital world, digital stores are displacing physical storefronts, they also give businesses a chance to improvise with original concepts.
A powerful tool that retail establishments may use to leverage their brand is recognizing and responding to the changing requirements of their customers. The best way to adjust to the shifting needs is to combine the digital and physical worlds.
Traditional shopping experience
Even though the future of retail in the post-covid era is uncertain, anyone with a knack for improvisation can succeed and make money with their retail locations. Therefore, physical and mortar retailers won't disappear for a very long time.
This progression, combined with other factors, has caused a rise in two types of retailing: store retailers and non-store retailers like direct sales, catalogs and mailers, TV home shopping, and lastly, virtual stores or online retailing. Consumers are now considered king, and businesses are vying for their place in the hearts of consumers.
Odds are stacked up against Traditional shops and businesses staring at challenging and trying conditions. The demand for physical offices and buildings has decreased due to the development of dependable, affordable remote corporate collaboration solutions like teleconference phone and video conferencing systems (like Skype).
For example, the digitally immersive store introduced by premium lifestyle brand Van Heusen helps enhance the fit and fashion experience of shoppers.
The retailing sector must advance along with changing consumer behavior as in Future-Ready Retail. It appears that brief internet journeys are increasing while filling the buckets with products is falling. In-store retail and technology work together to eliminate traditional central store purchases and upend the entire market.
Traditional retail formats in India
Innovation tests regular food stores by offering more than simply price breaks. Because of all the change, today's retailing leaders must develop cutting-edge, customer-focused shopping experiences to satisfy the needs and demands of contemporary consumers.
The most likely scenario is that offline retail will remain the mainstay and mainstream channel, but how space is leveraged will likely change.
The layouts of today's stores do not meet the needs of today's customers. Future stores must have a variety of customer-focused features.
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