Mumbai,
September 25, 2019: Contrary to the perception
about e-commerce being a disruption to physical brick and mortar retail, the
reverse is now seen in India’s tier-II and III towns, according to a cross
section of retailers at the concluding session of the two-day MAPIC India conference,formerly
India Retail Forum on Wednesday.
E-commerce had
already reached tier II and tier III including small towns with the product
portfolio and now the customer wants to know the experience physically, that
has aided the new malls in this space.
“In the large
cities, it is modern retail that has introduced new products to consumers. But
now thanks to omnichannel many more small towns have got introduced to new
assortment and products and the benefit of that comes to the whole ecosystem to
the larger retail landscape when you enter tier II and III towns.” said
Devendra Chawla, MD & CEO, Spencer’s Retail, which recently acquired
Nature’s Basket retail chain.
Malls in tier-II
and III towns are also undergoing a shift as food is becoming main stay
attracting foot falls and accounting for 60% expenditure while retail is 40%,
said Samir Menon, Managing Director, Yum Restaurants.
As a result,
malls in Tier-II and Tier III cities are already having food courts on the
ground floor and the trend may get extended to metros in the near term.
Earlier, in the
day, Anurag Mathur, Partner, PWC pointed out that consumer behaviour is
increasingly shaped by the presence of new channels in their lives, that
connects them to new brands.
According to
consumer insights survey by PWC, 75% of consumers have 3 or more healthcare
& wellness app on their smart device while 32% consumers are influenced to
buy a product or service following a positive review on social media.
The survey
indicated that fashion purchases were influenced the most by social media for
54% consumers while 31% say they buy products online weekly or more frequently.
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