Although shopping in kiranas is a practice rooted in tradition and vendor-patron relationships, the increased presence of hypermarkets in India is beginning to expose citizens to a more westernized way of shopping. These hypermarkets are capable of providing consumers with brand name products on a much more extensive scale, and at lower price points than traditional kiranas. Through selling products complementary to both supermarkets and department stores, Indians are exposed to product options in a way that kiranas could never allow. Additionally, produce found in Indian hypermarkets passes through an efficient supply chain, keeping it fresher than kiranas’ fruits and vegetables, which are often disposed of due to waste. Overall, the variety of product provided as well as the quality and quantity of goods found in hypermarkets is drawing consumers away from kiranas and orienting them to the larger scaled stores.
The Indian government’s willingness to spend $500 billion to improve the nation’s infrastructure is excellent news for international retailers. This financing will aid in the advancement of India’s transportation systems and roads, and in turn, this will allow international retailers to set up large stores on the outskirts of bustling towns. The better transportation and roads will grant easier means for paying customers and company products to reach stores, and there will be increased space for larger scale hypermarkets. Currently, due to the poor state of India’s infrastructure, retailers are forced to seek real estate in urban locations, and this option lacks both store size and regard for India’s mom and pop style shops already existing. Additionally, improvement in infrastructure would allow for more westernized amenities to be utilized, such as refrigeration systems, and also boost supply chain efficiency. Comprehensively, through financing infrastructure, the efficiency, accessibility, and quality of hypermarkets will all be positively impacted.
The shifting age demographic of India towards a younger consumer is swaying marketing to appeal to a different type of customer. The current population of India is over halfway made up of individuals under the age of 25. As shoppers, these citizens are much more open to innovative ideas, modern technology, and new products than the previous generation, who preferred to patron only kiranas. The younger consumer, while still shopping at kiranas, is likely to visit hypermarkets, due to the opportunity for retailers to feature creative products never before seen in India. In order to discover more about India’s youthful demographic, international retailers can study the shopping habits of controlled groups of Indian youth, as well as run surveys and conduct market research regarding this sector’s values, impressionability, and openness to various products.
