AaramShop Grocery Festival - the power of many.

We have all seen "festivals and discount sales" being advertised by leading retailers on a month on month basis - and therefore it is quite obvious for folks to turn around and question the uniqueness associated with the AaramShop Grocery Festival which has been announced today for the next 8 days. 

The similarities end it being called a festival - the format is unique as it is probably the very 1st of it kind of multi-retailer, multi-brand format focused on FMCG / CPG brands.

The festival would run for 8 days at over a 1300 independently operating neighborhood grocers across New Delhi and 5 satellite towns catering to a population of over 22 million. 

AaramShop Grocery Festival is the largest unified consumer promotion created for small, independently operating retailers operating out of our neighborhoods.

The ASF is not designed as a "discount sale", but rather about creating pleasant surprises for shoppers when they buy any brand of groceries and daily essentials at their trusted neighborhood store. It is all about getting a little more than what the shopper had expected. The shopper gets to be part of the festival either by walking into the store or by ordering on the phone or by ordering groceries online from his neighborhood retailer using AaramShop.

The festival has been cleverly created to adopt to the varying business practices of the independent retailers and thus does not need modifications in the "business as normal", while at the same time helping the retailer grow his business.

The festival also helps brands connect with their consumers and retailers in a meaningful manner and therefore the festival has been partnered by some of the leading brands. The lead sponsor of the festival is Catch Salts & Spices (DS Group) & it is co-sponsored by Kohinoor Rice (Mc Cormick), Colgate Total (Colgate Pamolive), Saffola Oats (Marico), Red Label Natural Care (Hindustan Unilever), Sofit (Godrej Hershey) & Vanish (RB). 

 

The Delhi & NCR edition of the festival is the 1st of the series of festivals which would be held across the country and with the hope that the festival would have a positive impact on the businesses of the retailers over time and during the initiative. Contact us to know more about this initiative.  

The mobile train has left the station: Are you on board?

Brand marketers and retailers are often unsure of the need to up-the-ante when it come to mobile commerce and still consider it something that is too far out into the future. And then suddenly it seems to hit us hard. 

This past Black Friday was the day we realized that mobile shopping would be the future and while the numbers that came in correspond to the US, the trend is what needs to be looked at.

 

On Black Friday 2012, one out of every four dollars spent online at retail websites came from a mobile device. This amounts to more than $300 million dollars in one day alone. 

For those retailers (and brands) who’ve already embraced mobile, it was a day of celebration, a culmination of their hard work and foresight. For retailers who didn’t get their share of this new mobile world, it’s a wake-up call: Get with the mobile program, or have consumers leave you behind.

Read the full story here and if you are a FMCG / CPG brand or retailer talk to us to understand how mobile commerce would work for you and how it can be part of your marketing strategy.

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Online and Offline shopping experiences are blurring.

A new research from Google & Ipsos found that 80% of shoppers will research online for holidays shopping before making a purchase this season, and they switch devices to suit their needs. 

“For example, 51% of shoppers will research online and then visit the store to purchase, while 17% will visit a store first and then purchase online. Another 32% will research online, visit store to view a product, then return online to purchase. In short, the shopper’s journey looks less like a funnel and more like a flight map, and the lines between online and offline shopping experiences are blurring.” says Google Retail Industry Director, Todd Pollak.

This integration of the online and offline experiences offers great opportunities but also brings with it risks for all brands / retailers who are focussed on any one of the two formats. It is important to have a "hybrid" commerce strategy.

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The role of mobile in shopping related research.

At the Path To Purchase Institute’s annual Shopper Marketing Expo, Alison Chaltas of GFK shopper and retail strategy, shared a global study that revealed the future of shopping is “getting extreme.”

Chaltas said that a hard economy – with one in three barely able to meet expenses and only 15% living comfortably – is fueling the emergence of a new shopper profile. This “extreme shopper” is wired; 68% research purchases on the internet and buy in store.

While “extreme shopper” was new, the concept of ROBO (research online buy offline) has been around for a while, but the percentage was interestingly high. However, what caught my attention was the way in which the shopper was doing the research and the emergence of mobile as the research tool.

The study found one quarter are using their phone to help shop, and that they’re seeing a broadening of categories this applies to, not just consumer electronics and clothes, but also food and beverages, as well as health and beauty.

They also found a multi-dimensional aspect to mobile shopping: value seeking is the goal of 89%, 51% are using mobile to connect to social media as a shopping tool, 24% are using it transactionally, and 82% informationally.

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Seamless shopper experience is a must.

According to Google, 62% of shoppers used a smartphone in a store  (in the US) to help with shopping research last year, indicating that retailers should aim to inform in-store purchase decisions with mobile apps or sites that are optimized for mobile.

Google says that, as far as online goes, video is becoming increasingly powerful in many categories, as far as discovery.

Mobile, is another big opportunity, not just because you can drive conversions, but so many people come to retailers through mobile. The key is not to have a disconnection between your mobile experience and your desktop web experience as a retailer. Consumers should get a familiar and seamless experience no matter what screen they’re on.

Price has historically been a major driver of purchases online, but having faith in the experience is becoming really important as well.

And for good reason – Google found that 13% of shoppers plan to watch online videos to help with shopping research, and 48% will use tablets to read product reviews before purchasing.

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The changing profile of Indian retailers & AaramShop.

A typical Indian Neighborhood Grocer

Kamal Desai is the 2^nd generation grocery retailer based out of Andheri West, in Mumbai. He took over day-to-day management and operations of his family-owned grocery store about 9 years ago.

The 9 years of running his store 1^st hand and assisting his father since early childhood enables Kamal to reflect on changing trends in Indian retail and its opportunities and challenges over the last 4 decades with a level of expertise.

The changes have been happening over the years, but the last 7 to 8 years have been the most exciting and challenging. Based on what he saw around, he started off by doing minor modifications to the store layout since he took over – starting with creating self-service isles, better product displays and accessibility, in-store lighting and then going on to air-condition the store.

While the neighborhood that Kamal services has seen a steady population growth and income levels, it has also seen a change in consumers’ tastes – prompting Kamal to move away from commodities to brands. And while Kamal has a strong one on one relationship with a lot of consumers and almost a legendary service level efficiency for loyal consumers – he is facing an increasing challenge with the changing lifestyle of a number of his consumers and of course from the increasing competition from the modern trade outlets.

How Web Traffic is Driving Brick and Mortar Expansion

People will always want to shop, and that’s not going to change, but the online experience has raised shoppers’ expectations and made them much more discerning, so it behooves all retailers to know their customer that much better.  The Web is providing a much broader, more accurate and real-time picture of exactly who they are and where they live, arming retailers with the information they need to make smarter decisions about physical expansion — the most capital-intensive of investments.

Read more of this insightful article on Forbes here. 

This hybrid retail opportunity creates opportunities not only for retailers but also for the  brands. Data & trends provided by online retailing is a reflection of the offline consumer behavior and is far more accurate and trust-worthy as against data based on surveys and focused groups. 

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Key Points About Integrating Traditional and New Mediums

Some brands have been forged in the digital fire while others have had to (or eventually will have to) jump into it. The biggest problem Michael sees here is we are trying to treat these two entities as one.

These are two very different situations and need to be treated as such. Those outside the bubble, who did not build their business in these channels are interested in what digital has to offer, but they don’t always need it just yet. It’s not that there isn’t a juicy opportunity, but balancing multiple channels (especially a mix of traditional and digital ones) is no easy feat.

Michael writes that we often try to show traditional brands the success digital brands have experienced. It is alluring, but it isn’t always relevant. Rather than enticing prospects with purely digital examples like Zappos or even those who have long had digital efforts like Levis, one needs to understand a few key points illustrated wonderfully here in a recent post by Michael Schechter.

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Digital Marketing Spending to Increase Across All Channels

While traditional digital channels such as search and email continue to dominate retailer marketing spending, social and mobile channels are growing in importance. Marketers are also seeking to improve data analytics capabilities to identify the most profitable channels and design the optimal marketing mix for driving engagement and sales. These are the top-level findings of a recent survey of 110 retailers conducted by Lauren Freedman and the e-tailing group, an e-commerce consultancy for merchants.

The report, “Surviving the Current Market Mania with a Solid 2012 Plan,” was sponsored by Bronto Software, the leading marketing platform for retailers and other commerce-focused companies. The free report is available for download at bronto.com.

Regarding revenue generation, merchants surveyed said that they expect top-performing channels will be SEO (31%), Mobile (mCommerce, iPads, mobile application – 30%) email (22%), paid search (22%) and social media (14%).

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