For branded retailers, public transport and suppliers in India are currently in talks for the first time to create synergies of selling impulse category products such as mineral water, tissues, cold drinks, newspaper, magazines, perfumes, body lotion across various metros. Industry experts believe that in-transit shopping is an alternative option to open shop-in-shop concepts within hypermarkets, retail malls and departmental stores in the Rs 40,000-crore organised Indian retail industry.
Gaurav Marya, president, Franchise Retail Holdings (FRH) told FE, This is to spur retail volumes by an additional 10% and also make passengers life comfortable in the metros. The initial challenge to this business would be achieving a ticket size and bringing volumes which will ultimately make the whole business viable. It would also need more education on part of the transporters to be able to sell products to the travelers. Vehicle drivers can be educated on additional income from the sale to increase ticket size of their business.
Globally, this form of business contributes about 5-7% to retail business, but in India one can eventually a few years down the line look at a size of 8-10% of contribution to retail business. Catalogue shopping in airlines is already a hit in the worldwide market including India, Marya added.
Travel retail of such nature is a global concept primarily in Singapore and US. The nature of the product retailed at such points has to be based on decision making of the consumer which would either be impulse or vonvenience based.