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Retail segment has lapped up advancements and kept pace with changing trends to enhance customer experience.
Retail Industry always thrives on change and it is the real constant that keeps the industry afloat. All over the world, the industry is going through many changes not only because of the change of consumer preferences but also because of the advancement in technology. Retailers in India are also using the technology to the maximum to provide a better shopping experience to the customers.
A dark horse, E-tailing, has now turned into a trend in retailing. It is now playing a major role in reshaping retail real estate spaces. This has led to the shift in the purpose of physical retailing to give innovative and entertaining experience to the customers. E-tailing has changed the market dynamics and giving competition to traditional retail but it has not eroded the importance of physical stores. The retail shops are coming up with enhanced in-store experiences to engage the customer and make the shoppers decide. The experience also helps the reluctant or casual shoppers take the decision. Discounts might be tempting on online shopping but in the Indian context, the human engagement that physical retail offers is still the preferred choice.
Many retailers are working towards providing the ‘touch and feel’ and are making necessary changes to the stores to bring in the interactive element. Some examples are Raymond’s store in Bengaluru sell apparel through an iPad; Zivame in Bengaluru to help customers to make the customers enter their details on a tablet. Then professional give them expert advice on the style; Big Bazaar Gen Next stores in Noida have interactive screens and experience zones for multi-sensorial experiences for food products.
Developers are also making retail spaces more vibrant as the focus is on providing a 360-degree experience to the customers by delving into the realm of multi-sensory input communication. An important aspect in retail is the mall and now we are witnessing that the average size of the malls has increased and are designed to provide the best of the shopping experience. As per the trends, these malls have good tenant mix keeping in mind the consumer demand, catchment and socio-economic factors.
Then the business model has also changed in organized retail and preference is being given to ‘lease only’ model as against the strata-titled malls earlier. And then we have the introduction of minimum guarantee and the model based on revenue sharing.
Then we have transit-oriented shopping at airports, metro and railway stations becoming popular because of the convenience to the shoppers. At these destinations, F&B, gifts, books, electronics, jewelry, and footwear are performing well. The trend has gained acceptance as it reduces the shopper's travel time to shopping destinations. Various brands also prefer these retail places as the footfall in these places is very high and brands do benefit from opening stores there.
Retail segment has come a long way in India and the scope of innovation is vibrant as the sky is the limit when it comes to catering to the needs of the customers. Over the decades, the Indian retail segment has made it clear that innovation is the only way out and to come out with trends with the help of advancements in technology.
This article is contributed by Dhiraj Jain, Director, Mahagun Group.
