Indian consumers are becoming (almost) as global in their thinking, preferences and orientation as their Western counterparts. The ability to travel abroad for business and recreation, the exposure to the Internet and other information and communication tools, lifestyle influencers from print, TV and film media, among other drivers, are shaping Indian consumers’ shopping behaviors and mindsets towards consumption. Indians, who typically followed a savings-oriented approach, are enjoying the benefits of higher incomes and are often splurging on lifestyle-oriented goods. The increased spending power and the desire to acquire global, trendy and current products are incentivizing consumers to purchase products across categories, in the mass, premium and luxury segments.
The consumption pattern of consumers is greatly influenced by convenience which directly affects their product choices. This suggests that products offering less convenience will be deemed less preferable to consumers. Therefore, adding convenience traits to certain products deemed healthy and/or beneficial could increase the consumption of these specific products. For consumers, convenience is by far the most important dynamic, and will continue to be so over the next five to 10 years, according to any number of prognosticators. Consumers are willing to pay more for convenience as their work habits and lifestyles change. The same can be said even for shoppers in developing nations. It’s a trade off many are willing to make, especially as disposable income rises in many countries. It’s all about time, and the consumer would rather buy time than prepare food.
Driven by the growing rates of disposable income in India, the food and beverage sector is witnessing dramatic changes in consumption patterns. Consumers have become more demanding, and want convenience, quality, and variety in their consumer products. As a result, modern retail stores such as supermarkets, convenience stores, and so on have become preferred shopping destinations for such products among urban Indian consumers.
Have you ever felt the need to buy something in the middle of the night? Are you in such a hurry that you do not want to go through a long line at the grocery only to pay for a few items? Yes, even the fast lane in the grocery is taking too much of your time sometimes. These days, people want things done with a snap of a finger, and we are not just only referring to gadgets here. Nowadays, everyone is living the fast life and to keep up with that, services have to be done as quickly as possible to meet the needs of the people. We see drive-through, automated teller machines, and other services made to make everything faster. This is why we see convenience stores sprouting everywhere.
Adding to this, unlike the regular shopping venues, convenience stores are now operating twenty-four hours a day, seven days a week. Why then would a customer wait for the shopping mall to open in the following morning to get what he or she needs when there’s an open store he can go to right now? The convenience they get keeps the customers devoted. This is why they keep coming back again and again. This is also the reason the convenience store concept has managed to thrive despite the presence of retail giants all around.
Having such a store near you always comes in handy. Because it is open 24 hours a day, seven days a week, one can get a hold of anything he needs in a flash. Convenience stores are found almost anywhere. You do not have to go too far or wait till morning to buy what you need. May it be oil for your car or as simple as a hot chocolate or coffee, the staff at would be happy to be of service.
Drivers such as rising income levels, ease of payment through cards, changing demographics and lifestyle along with FDI in retail have steered the convenience store market towards growth. The sector has witnessed government participation through FDI, single and multi-brand retailing and Goods and Services Tax.
Though there are not many players dotting the sector, yet good prospect is noticed in their gradual dominance and increasing revenue structure. The sector has still a long distance to travel especially when impediments like human resource constraints, customer migration, lack of logistics support and regulatory challenges continue to baffle. Though convenience store market in India is in a nascent stage, yet it is headed towards profound growth in near future. Certain determining factors work towards shaping the growth of such stores by translating the challenges into opportunities
By Samir Modi, Director at Twenty Four Seven Convenience Store