Research: The New Retail Reality
Images Retail|October 2020
A report by KPMG in India and Retailers Association of India (RAI) sheds light on how the pandemic has led to a change in consumer behaviour and more importantly how the retail space is undergoing a complete makeover…

With the ongoing pandemic, Indian retail is undergoing a huge makeover. Despite this, the sector continues to be one of India’s largest industries that makes up for about 10 percent of the GDP and around 8 percent of the employment. Shopping habits have been largely affected during the pandemic, with safety now taking over as a new criterion over price range, variety and convenience. In India, hypermarkets are witnessing lower footfalls and most sectors including apparel, accessories and durables have faced a lack of demand. Essential category players are also facing challenges, albeit of a different kind-managing huge spikes in demand, ensuring liquidity, modifying and managing store operations to maintain safety standards, managing employee and health and grappling with a shortage of staff.

While it is yet to be determined which consumer shopping trends will have a lasting impact coming out of COVID-19, what we know for certain is that the digital shelf is now more important than the physical shelf. While many brands are taking this time to innovate and nd new strategies for greater personalisation and digital connection, they’ll need to ultimately unpack what is a passing trend versus a real shift in consumer behaviour.

KEY ASPECTS:

Considering some of these changes, below are a few key aspects which retailers should consider post the COVID-19 scenario if they are to survive in this new reality:

Going Hyperlocal

New Age Phygital

Using Digital Technologies Maximum

Supply Chain Resilience

Revised Media and Advertising Spends

Staying Close to Customers

The report titled, ‘The New Retail Reality’ by KPMG in India and Retailers Association of India (RAI) sheds light on how the pandemic has led to a change in consumer behaviour and more importantly how the retail space is undergoing a complete makeover. Some of these changes include consumers becoming more digitally savvy, the increasing need for a touch-free shopping journey, price value equation, a rise in consumer awareness, popular discretionary spends, new product launches, local sentiments undergoing a change, increased consumer consciousness and last but not the least the online channel gaining traction.

Commenting on the report, Harsha Razdan, Partner and Head, Consumer Markets and Internet Business, KPMG in India said “The unchartered waters of COVID-19 has meant a gradual change in consumer behaviour. With new models of working and shopping evolving, physical and online channels too are undergoing makeovers. We are seeing an increasing thrust on localisation as the new standard. With rising consumer expectations, order fulfilment is becoming increasingly important for retailers to adhere to. To provide a seamless customer journey, it is important to be available across physical and digital touchpoints offering the right choices to consumers. Our view is that retailers across the world, especially the brick and mortar ones will have to borrow best practices from each other and get back up on their feet. Since there is uncertainty that continues with this crisis, innovation and adaptation is key. With the advent of a strong digital wave, it will be important for companies to adapt to the situation quickly & continue to innovate keeping consumers at the centre of their plans.”

Kumar Rajagopalan – CEO, Retailers Association of India (RAI) said “Retailers are relooking at their product mix and the way in which they do their businesses. Even neighbourhood retailers are stepping up their game by augmenting their digital capabilities to optimise every prospective opportunity to their bene t. They always had the trust factor going for them and are now also adding convenience to their arsenal. They are now creating their own web stores and taking orders by marketing their products through various digital channels such as Facebook and WhatsApp. The pandemic has pushed retailers to think out of the box and accelerate tech adoption. We see this trend continuing, making retail more interesting and consumer-focused.”

Changing Consumer Behaviour & Impact

DIGITALLY SAVVY CONSUMERS: The new consumer is digitally savvy and embraces interactions with organisations through digital channels with ease. Recent KPMG in India’s report titled ‘Time to open my wallet’ released in July 2020 reveals a comparative of pre and post COVID-19 scenario highlighting preference to online channels has increased 1.6X growth.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM IMAGES RETAILView All

HUGE STEP TOWARDS RECOVERY: BRANDS RECORD PRE-COVID LIKE SALES DURING FESTIVALS

Better consumer incomes and demand patterns over the past few months suggest a better situation for Tier III/IV geographies. E-commerce trends also suggest a similar pattern…

5 mins read
Images Retail
December 2020

URBAN SQUARE UDAIPUR WILL CHANGE THE RETAIL LANDSCAPE OF RAJASTHAN – Uddhav Poddar

In an exclusive chat with IMAGES Retail, Uddhav Poddar, Managing Director, Bhumika Realty, talks about how Rajasthan can be a new hub for modern retail with infrastructures like Urban Square and other malls. He also emphasised on the vision, progress and road ahead for the brand.

9 mins read
Images Retail
December 2020

GROWELL'S 101 MALL CELEBRATED THE RETAIL SUPERHEROES ON 'RETAIL EMPLOYEES DAY 2020'

2 mins read
Images Retail
December 2020

AMAZON REPORTS 60 PERCENT INCREASE IN WORLDWIDE SALES, BLACK FRIDAY REPORTS IN-STORE SHOPPING DROP

The economic downturn and uncertainty caused by the Coronavirus pandemic means 65 percent of people feel a high level of economic insecurity and are less willing to spend money. Contreras believed that for the moment, the crisis means it is appropriate to consume wisely…

5 mins read
Images Retail
December 2020

Ad-Hoc Local Lockdowns Detrimental to Recovery of Indian Economy

Although the intentions are that of citizen safety and social distancing, the recent instances of local lockdowns and ad-hoc restrictions being imposed in UP, Maharashtra, AP and Karnataka are making a distressing impact on retail businesses, says RAI...

4 mins read
Images Retail
September 2020

Research: The New Retail Reality

A report by KPMG in India and Retailers Association of India (RAI) sheds light on how the pandemic has led to a change in consumer behaviour and more importantly how the retail space is undergoing a complete makeover…

9 mins read
Images Retail
October 2020

Parivartan: A Platform to Collaborate & Innovate for Retailers

The event by TRRAIN was a virtual open forum where retailers from across formats and departments came together to brainstorm about the ‘new normal’…

2 mins read
Images Retail
October 2020

Gender-Neutral Beauty Brands Shatter Traditional Retail Stereotypes

Over the years, there has been a gradual change in consumer preferences towards cruelty free, natural, and organic products. This change has now evolved enough to include gender-neutral beauty products as well…

8 mins read
Images Retail
October 2020

Contactless Technology & the Future of the Foodservice Industry

The dine-in sector saw a drop of 6 percent in the number of restaurants in the first week of March, another 20 percent in the subsequent week. It all came to a standstill from April and lasted till mid-June. The only option left for many restaurants amidst the chaos was to become takeaway and delivery only outlets, explain foodservice industry leaders, while outlining their strategy to overcome the COVID era…

10+ mins read
Images Retail
October 2020

E-COMMERCE REPORTS STEEP INCLINE IN Q2 PROFITS GLOBALLY

Riding on the surge in demand in the COVID-19 times, online retail sales in Asia will grow from US$ 1.5 trillion in 2019 to US$ 2.5 trillion in 2024, with a compound annual growth rate (CAGR) of 11.3 percent…

5 mins read
Images Retail
October 2020
RELATED STORIES

YOGA & PEACE

DEEPAK CHOPRA speaks with DAAJI about the role Yoga has to play in bringing about world peace. This is an excerpt from their conversation broadcast on International Day of Peace, September 21, 2020. That documentary is available at https://heartfulness.org/en/international-day-of-peace/.

6 mins read
Heartfulness eMagazine
January 2021

Create the habit of meditation

CHIRAG KULKARNI, Co-Founder and CMO of Medly Pharmacies in the USA, speaks with RISHIKA SHARMA about creating a regular meditation practice, so as to make it a habit. He also shares how meditation has benefited both his personal and professional life.

7 mins read
Heartfulness eMagazine
January 2021

SHIA'S PRIVATE TEMPLE OF DOOM!

Indiana Jones gig derailed by abuse scandal

2 mins read
Globe
January 11, 2021

Let's Dish

"Food Raconteur” Ashok Nageshwaran wants to tell you a story.

2 mins read
DesignSTL
January/February 2021

THE MAKING OF A MODEL MINORITY

Indian Americans rarely stop to ask why our entrance into American society has been so rapid—or to consider what we have in common with other nonwhite Americans.

10+ mins read
The Atlantic
January - February 2021

Interconnectedness

In 2017, DR. VANDANA SHIVA spoke with KIM HUGHES about the sacredness of the Earth, the work she has been doing to bring awareness and change in the field of sustainable agriculture, and the importance of understanding our interconnectedness with Nature, and how we can change the way we eat.

8 mins read
Heartfulness eMagazine
December 2020

DIAMONDS - A Luxury Gem Steeped in Fact & Fable

The diamond is one fabled gemstone! For example, google “Hope Diamond” to see all the legends associated with just this one stone said to bring misfortune to its owners.

2 mins read
Rock&Gem Magazine
January 2021

Women's World

Brown Sugaa and Medusa

2 mins read
Born To Ride Southeast Magazine
December 2020

Women's World

Brown Sugaa and Medusa

2 mins read
Born To Ride Florida
December 2020

CHINA DEMANDS INDIA RESCIND APP BAN AMID BORDER TENSION

China on Wednesday demanded India rescind a ban on more Chinese mobile phone apps amid tension between Beijing and other governments over technology and security.

1 min read
Techlife News
November 28, 2020