Mumbai (Maharashtra) [India] September 3 (ANI/NewsVoir): Amidst the pandemic-induced slowdown, essential goods will fuel Indian retail industry’s growth in the coming quarters as consumer expenditure continues to remain focused on essentials – particularly food and grocery – reveals the latest report by ANAROCK & Retailers Association of India (RAI) titled ‘Indian Retail – Certainty Despite Headwinds’.
The average bill value for essentials has gone up 1.5 times after lifting of lockdown – from Rs 650 per basket in early March to more than Rs 900 per basket presently.
Food and grocery, followed by apparel, FMCD and electronics, furniture and home furnishings, and QSR will see a V-shaped recovery within the next two-three quarters. Other segments like beauty, wellness, and personal care and home essentials may take four-six quarters to recover fully.
Organized retail and e-commerce are on an upswing. According to IBEF, the share of Indian organized retail will double to 18 per cent in 2021 (from 9 per cent in 2017). Likewise, e-commerce is expected to more than double to 7 per cent from the previous 3 per cent in the same period.
Median basket value now at >Rs 900/basket against Rs 650 in early March
Essentials like Food & Grocery, Apparel, FMCD & Electronics, Furniture & Furnishings, and QSR to see V-shaped recovery within two-three quarters; Beauty, Wellness/Personal Care & Home Essentials may take up to four-six quarters
Avg. bill value up by over 25 per cent across segments
Omni-channel retail takes centre stage; in-mall doubling as urban warehouses to ensure fast delivery
Hygiene & sanitation now of prime importance in malls; touchpoints automation and digitalization now the new norm
“COVID-19 will work as a catalyst for the growth of organized retail and e-commerce in India. Online spending is on a marked rise with online shoppers projected to increase from 15 per cent in 2019 to 50 per cent of the total online population by 2026,” said Anuj Kejriwal, MD & CEO – ANAROCK Retail.
“In other new retail industry trends, omnichannel retailing is evolving rapidly with brands collaborating actively to enhance their reach. Many are using malls or in-mall stores as urban warehouses to ensure a faster delivery to customers and are tying-up with existing e-commerce/delivery portals to leverage their existing network and ensure reduced additional cost.”
“Omnichannel was gaining importance before the pandemic. The pandemic has enhanced the importance of retailers having an omnichannel strategy since concepts of digital browsing, click and collect, curbside delivery, video shopping etc. have gained importance. The pandemic has propelled consumers to purchase based on convenience either as delivery to home or by shopping at offline nearby stores or by time scheduled shopping,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).
In today’s pandemic-transformed retail landscape, essential commodities are a top priority for Indian shoppers. Recent surveys by RAI suggest that grocery and fashion are the top two preferred options immediately after relaxations in lockdown. As many as 33 per cent of consumers were excited to shop post the lockdown while 75 per cent of respondents in tier-II & tier-III cities plan to visit stores in malls in the next 3 months. Offline retailers have witnessed a conversion rate of 90 per cent post-COVID-19 versus 20 per cent – 40 per cent pre-COVID-19.
A sanitized shopping experience
The report further highlights that hygiene and sanitation measures being adopted by malls and store operators to combat the COVID-19 blues. Above all, mall owners are looking to minimize touchpoints by going digital and sanitizing cars before letting them in the parking spots. With valet services, cars are sanitized before and after the car is returned to a customer. Sanitization of customers’ belongings before mall entry also figures high on the list.
Store operators are sanitizing apparel after every trial, and steam-ironing them before returning them to the rack after 24 hours. Apart from social distancing markers at billing counters, both bags and products are sanitized after purchase. Many are also using technology for consumers to order before entering the store, or for home delivery of products. Automation and contactless technology will redefine the shopping experience in the future, and retailers will need to adopt such technologies.
Other Highlights
* Digitally influenced spending is estimated to reach USD 550 billion (30-35 per cent of all retail sales) by 2025 from USD 45-50 billion (8-10 per cent of all retail sales) in 2016.
* 70 per cent of retailers anticipate business recovery in more than six months and 20 per cent in more than a year, as per RAI survey.
* India to be the third largest consumer market in the world after the USA and China.
* Nuclear families spend 30 per cent more than joint families; nuclear households will grow to 74 per cent in 2025 from 70 per cent in 2016.
* Revenue sharing models to ease rental pressure; retailers modifying business models to partner with mall owners to combat the situation.
Download the report: www.anarock.com/research-insights/indian-retail-certainty-despite-headwinds.
ANAROCK is India’s leading independent real estate services company, chaired by Anuj Puri, with 14 offices across India and the Middle East, and 2000 plus experienced professionals.
The company has diversified interests across the real estate lifecycle and deploys its proprietary technology platform to accelerate marketing and sales.
ANAROCK’s services include Residential Broking & Technology, Retail (in partnership with Vindico), Commercial, Investment Banking, Hospitality (via HVS ANAROCK), Land Services, Industrial and Logistics, Investment Management, Research, Strategic Advisory & Valuations, and Project Management Services (in partnership with Mace).
The company has a unique business model, which is an amalgamation of traditional product sales supported by a modern technology platform with automated analytical and reporting tools. This offers timely solutions to its clients while delivering financially favorable and efficient results.
Within a period of three years, ANAROCK has become the fastest-growing real estate company in India. Our assurance of consistent ethical dealing with clients and partners reflects our motto – Values Over Value.
For more information, please visit www.anarock.com
Retailers Association of India (RAI) is the unified voice of Indian retailers. RAI works with all the stakeholders for creating the right environment for the growth of the modern retail industry in India.
It is a strong advocate for retailing in India and works with all levels of government and stakeholders with the aim to support employment growth and career opportunities in retail, to promote and sustain retail investments in communities from coast-to-coast, and to enhance consumer choice and industry competitiveness.
For more information, please visit: www.rai.net.in.
This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article. (ANI/NewsVoir)
To Listen to this News click on the play button.
