Loyalty : Traditional vs Organised retail format

India is witnessing innovation in store formats across categories – but are the Indian consumers aware of how and why they shop at a particular store?

I am a strong believer that study of consumers starts at home – yours and mine… I also firmly believe that availability breeds consumption.

Confused? Just take a quick look at how our own families make purchase decisions! Are our purchases really well planned? Or are they usually impulse? Do we really spend time on a family budget? Are we loyal to a favourite store? Or are we opportunists? Do we get all that we want?

Well, answer to almost all the questions can be - Yes & No!

Consumer behaviour across the nation is varied. However, a recent Technopak study across 17 cities still shows an overwhelming patronage of local traditional outlets (kiranas) by average Indian housewife…more so for perishables. And I, for one, have observed the same trend in my immediate neighbourhood, friends and family.

Although the necessities for shopping in different format stores are different, we maybe able to spot some trends on loyalty or commitment, such as …

Traditional formats – established relationships (I know someone who gets his monthly staples from a shop 30 kms away!), quality you can trust, reasonable prices, easily available credit and home delivery (ensured even for a toothbrush!). Great for convenience and the “top-up” spending.

Modern formats – contemporary look & feel, self service, hygienic surroundings, all-in-one place, wide range and availability of the latest products. A pleasant and undisturbed experience. Great place for bulk buys for grocery, personal care, home care, fabric care and other such products.

I will leave you this week with another interesting mix of loyalties in the various categories. This is study of a particular city regarding the impact of modern retail store in the immediate catchment area.

Isn't the impact pretty obvious?

The consumer today patronises both – although she shows specific inclination towards traditional formats in some categories. And then there is the new curious consumer - the Indian male. More about that next week.