CXOToday has engaged in an exclusive interview with Nirav Patel, Founder & CEO, WOGOM
- How has the concept of local retail evolved over the years, and what are the key drivers of this evolution?
ANS: The concept of local retail has evolved from small, family-owned neighborhood shops to larger, suburban malls and e-commerce giants. Key drivers of this evolution include industrialization, urbanization, the rise of e-commerce and technology, changing consumer preferences towards sustainability, and a renewed interest in supporting local businesses. With the event of LFR’s, there has been sustainable growth and opportunity for regional retail stores to thrive and flourish.
- Can you provide examples of successful hyper-local retail strategies that have emerged recently, and what made them effective?
Apple’s stores such as Image/ Unicorn: Apple has organized hyper-local events and workshops in its retail stores, catering to specific communities’ interests and needs. These events foster a sense of community engagement and customer loyalty.
Samsung’s café and Ganesha Stores: Samsung has deployed cafes in various local markets and talukas, showcasing their latest products and providing personalized demonstrations. Here the range of products is wider than what is available in multi-brand stores, this helps the customers to touch-feel and experience the entire range of products. These pop-ups create buzz, generate local interest, and drive foot traffic to the brand.
Phonewala, Kores, Bhatia, and Kabeer mobile stores: The regional stores have grown and created their strong footholds in Tier II and Tier III cities within the cities/states of their presence.
Similarly, in the consumer durable space, regional retail chains such as Kohinoor, Surya Electronics, and Snehanjaali have grown successfully in spite of stiff online – and offline competition. They have successfully launched their franchisees too.
- In the age of e-commerce, how do traditional local retailers adapt to stay competitive and relevant in their communities?
Online Presence: Establishing an online store or presence on platforms like social media to reach a broader customer base and provide convenient shopping options. Presence within the community via community influencers, and personalized understanding of the customers within the catchment areas.
Personalized Service: Offering personalized in-store experiences, product recommendations, and exceptional customer service to create a unique shopping atmosphere.
Curated Selections: Focusing on niche or unique product offerings that set them apart from online giants, catering to local tastes and preferences.
Click and Collect: Implementing click-and-collect services, allowing customers to order online and pick up their purchases in-store, combining the convenience of e-commerce with a local touch.
Express delivery: Deliver within a few minutes of an order being placed within the limited geography of their presence.
Trust and neighborhood shops / physical experience / till today around 56% of GT is in developed countries, unit economics growth
- What role does technology play in the evolution of local retail? Are there specific technologies that have had a significant impact?
E-commerce Platforms: Technology enables local retailers to establish an online presence, expanding their reach and providing a platform for online sales.
Point of Sale (POS) Systems: Modern POS systems offer inventory management, sales analytics, and customer data insights, helping local retailers streamline operations and enhance customer experiences. Single device to accept payments through various credit/ debit cards and UPI.
Contactless Payments: Technologies like NFC and mobile wallets facilitate contactless payments, improving payment efficiency and reducing physical contact during transactions. BNPL is significantly growing as an accepted tender and easy for customers to avail of credit digitally.
Augmented Reality (AR) and Virtual Reality (VR): These technologies enable immersive shopping experiences, where customers can visualize products in their real environment before purchasing.
Online Marketplaces: Local retailers can leverage platforms like Etsy and Amazon Marketplace to reach a wider audience, even if they don’t have their own e-commerce websites.
Local community influencers help drive awareness of the products which meet to the customer requirements.
- How can local retailers leverage data and analytics to better understand and serve their customers?
Local retailers can use data and analytics to track customer preferences, purchase history, and shopping behavior, and predict future requirements that can support purchase and sales. This information allows them to tailor marketing efforts, optimize inventory, and provide personalized customer experiences, ultimately increasing customer satisfaction, loyalty, and repeat footfalls.
- What are some challenges local retailers face in adopting digital and online strategies, and how can they overcome these obstacles?
Limited Resources: Many local retailers have limited budgets, manpower, and technical expertise for digital initiatives.
Competition from E-commerce Giants: They often compete with large online retailers that have vast resources and a global reach.
Supply Chain and Logistics: Managing online inventory and fulfilling orders efficiently can be a logistical challenge.
To overcome these obstacles, local retailers can:
Collaborate: Partner with other local businesses or join online marketplaces to expand their reach.
Focus on Niche Markets: Specialize in niche products or services that appeal to a specific target audience.
Offer Convenience: Provide options like online ordering with in-store pickup to enhance customer convenience.
Customer Engagement: Use social media and email marketing to engage with and retain customers.
- Are there any notable trends in consumer behavior that have shaped the evolution of local and hyper-local retail?
Preference for Local Products: Consumers increasingly seek locally sourced and handmade products, driving local retailers to highlight their community connections.
Convenience: Customers value convenience more than ever, prompting local retailers to offer online shopping, delivery services, and streamlined in-store experiences.
Preference over online stores: In many cases, customers prefer to purchase the products offline and from a known retailer to avoid the hassles of after-sales warranty.
Community Engagement: Retailers that actively engage with and support their local communities, encouraging local retailers to foster stronger community ties.
- What is the significance of sustainability and community engagement in the modern local retail landscape?
In the contemporary landscape of local retail, the incorporation of sustainability, community engagement, and the right morals and education carries remarkable importance as they resonate profoundly with the values held by consumers. These practices not only play a constructive role in shaping a positive brand perception but also cultivate unwavering loyalty and trust, thereby assisting local retailers in flourishing amidst a fiercely competitive and socially aware market.
