Food is one of the primary needs of people. It is the largest category in retail consumption worldwide. In India alone, the food retail industry accounts for 33 percent of the overall consumption expenditure. As per recent estimations, the food consumption is at US$ 325 billion, which is expected to triple over next few years and reach US$ 900 billion by the end of 2020.
Grocery retailing in India is becoming popular every day it is witnessing a revolution. Owing to the growth of internet, the basic sustenance model of retail marketing is becoming non-existent forcing retailers to consider e-tailing or online retailing business model.
As e-tailing business model of food and grocery products offer increased visibility, more customer penetration, and convenient operations, big brands like Tata, Reliance, Godrej to startups like Bucketkart, etc. are choosing to adopt this model.
An e-tailing business store offers fresh vegetables, fruits, staples, dairy products, meat and confectionery items. Some of the stores go further to offer household items, stationery items and more. The main idea of the store is to offer convenience to customers in several way.
Buying Preferences of Indian Customers
According to a survey conducted by Progressive Grocer India, where 4000 consumers were asked several questions about their general grocery shopping behavior, five key themes were identified. These have far-reaching implications for the industry. Here’s what we learnt from the survey:
- Shopping is a group activity and not limited to the housewife.
- The purchase frequency drives format preference and not product freshness.
- Brands are crucial and taken into consideration while decision for purchase is made, however, they do not have much significance during actual purchase.
- With the increase in income levels, trading up tendency of a consumer for food rises. So as income rises the expenditure made on buying food items also increases.
- All key purchase decisions are taken at the store. Fresh food items require purchasing several times a week whereas packaged foods like meat, dairy are purchased based on weekly consumption. Moreover, price sensitivity plays a vital role in decision-making, hence major purchase decisions are made at the store.
Five Important Trends to Watch For This Year
Based on the analysis, and other retail sales behavior few important consumer trends have come to the forefront. Retailers keeping a check on this trend will be awarded with customer endorsement and a sustainable business in the future.
- On-the-move food: Modern consumers are very busy. Several families are nuclear and parents of the family are working. Even in joint family with men working and kids at school, there are less time for the women of the house to make store purchases on a regular basis. With drastic changes in consumer shopping behavior, people today want everything at the go. In-store pickup, online shopping and home delivery, drive through hotspots are what consumers are looking for.
An increase in convenience and remote shopping experience is what customers are looking for these days. Many British and North American grocery retailers are offering click and collect service, where consumers can click to order and collect the same item from subways while they are going back home. Such expediency is what customers are looking for.
- All in one convenience store: Consumers these days do not believe in rushing from one store to another to get different items. They are looking for all-in-one stores to get fresh produce, packaged goods, daily home cleaning items and things that will help them keep the household wheel churning. Stores incapable of fulfilling all the requirements of customers tend to lose value, as customers get the option to buy whatever they want from online e-retail stores.
- Quick and Easy Meals: Buying no-fuss meals is another trend becoming rapidly famous among consumers. Pre-packaged kits that contain all the ingredients of a recipe along with some add-ons required to cook a delicious meal at home. Selling meal bundles and cut vegetables that can save customers time are becoming popular. Several leading e-commerce stores offer ‘shop-by-recipe’ feature that allow consumers to buy ingredients based on recipes.
- For Health and Wealth: The young generations of today are very conscious about their health and lifestyle, hence they have sparked a trend where healthier foods are of vital importance. Older generations are yet to join the style, but they will do it soon. Soon shoppers will look for fresher items and disdain packaged foods. While they do so, it is expected that the online grocery market will assist them by providing the same.
- Go Green alternative: Environmental sustainability is a crucial matter. To future-proof business, e-retail stores would have to look for alternative refrigerants known for conservation of energy. Not only will it do good to the environment but also reduce operational cost.
Bucketkart’s Adaptation To Future Trends
Bucketkart is one of the reliable and best one-stop online shops for all daily staples, grocery and household items need. The store delivers fresh and healthy daily supplies without additional charges at customer’s doorstep. They have 7 delivery slots making it easier for all types of customers to choose the best time to receive the items.
Bucketkart came to Rasbor, a digital transformation agency to collaborate and bring in the necessary changes that would assist the site in sustaining their business in the long run. Among several changes and transformation that Rasbor performed, most of them were done keeping in mind the latest and upcoming grocery shopping trends online.
To make things better for the all-in-one store, performance optimization for better product navigation and user experience was done. Proper payment solutions were integrated for a hassle free experience. The remodeled Bucketkart site caters to every customer’s need while shopping online.
The Final Verdict
The Indian grocery and food market offers huge scope of business and opportunities for retail and FMCG companies. Over the next 10 years, India is going to see a steep rise in this field. To capture this opportunity, e-retailers should always be prepared according to the changing trends, consumer behavior patterns while making purchase, and other factors like approach towards online shopping, capability of price negotiations, etc. Several e-retailers have implemented measures to adapt to these modern trends. How about you?