Rapid Transformation of India’s Grocery Industry

Competition is heating up in India’s grocery industry. Grocery sales worldwide are predicted to reach $10 trillion by 2023, with Asia contributing to about 50% of this growth. China, India, Japan, Indonesia and South Korea drive 80% of the Asian grocery market.

Of the region, India’s grocery industry is transforming most rapidly. India’s grocery market was valued at $608 million in 2020 and is expected to grow to $1.3 trillion by 2024.

Favourable government policies and market trends are pushing India’s food and grocery market to new heights, while global players seek a share in this booming market. The main drivers for the increased traction of this market are:

• Changing customer lifestyles
• Health-conscious food preferences
• Tech-savvy population
• Increased stay at home times
• Heightened need for personal safety

Reliance industries, Future Retail and DMart are the major competitors, but international players like Tesco are also entering. Companies are looking to attract customers with digital transformation. Technologies, such as smarter stores, self-service check-out and other point-of-sale technologies are helping grocers gain an edge in this highly competitive market.

A Radical Shift

Grocery business owners have seen some of the most dramatic impact from the pandemic. Some customers still stockpile food, and many more are trending toward online ordering. According to Devendra Chawla, CEO of Spencer’s retail and Nature Basket - the bill sizes of grocers are now 1.5 times compared to the pre-COVID times. People are now buying more groceries each visit due to reduced trips to the store and restricted timings. A recent survey revealed that 87% of shoppers prefer to shop in stores with touchless or robust self-checkout options, to ensure safety.

Grocery sellers have scrambled to adapt to this rapid change in preferences while still delivering a seamless, safe experience.

Digital Signage Is Indispensable during Times of Change

Digital signage for grocery stores has proven to be indispensable during the pandemic, due to its ability to adapt content to the needs of the day. Grocers have used digital signage to:

• Communicate health and safety messages
• Optimize customer flow and report estimated wait times
• Advertise products
• Increase customer engagement
• Offer a frictionless shopping experience

Let’s consider how grocery digital signage is enhancing the grocery shopping experience.

• Educating Customers: Digital signage for grocery stores enhances the point-of-sale communication. Digital displays can feature the nutritional value of each food item and highlight any unique ingredients, to help health-conscious customers make more informed choices. QR codes can also be employed to include information about food sources.

• Dynamic Inventory Integration and Price Optimization: Grocery store digital signage can communicate prices and promotions in real-time. They can also display or respond to current levels of inventory to help streamline operations.

• Increase Engagement: Interactive digital signage in the form of touch screen kiosks, informative digital menu boards and self-checkout enable grocery stores to engage with customers in fresh new ways and offer added convenience.

• Advertise New Products: Point-of-sale digital displays that feature eye-catching visuals and videos give new life to products and promotions, leading to higher margins and share of wallet

• Offer Infotainment: Increase foot traffic, display brand ads, advertise new services or events, and share fun facts with eye-catching video wall displays.

• Promote Safety: Contactless payments have become a necessary feature for grocery stores. In fact, 75% of shoppers use the self-checkout option to pay for grocery bills. In addition, grocery digital signage promoting social distance positions the grocery store as a safe and responsible brand.

Grocery Stores Drive Business with Digital Signage

Digital signage is dynamic, flexible and quickly becoming a standard for in-store media.

Many Asian retailers like Hema and 7fresh are adapting to unique marketing strategies to engage with and indulge customers. Hema aims to enhance the shopping experience with the introduction of a mobile app. This app allows shoppers to learn product details by simply scanning a code. Since its release, 11 million customers have signed up for the app, which accounts for 60% of Hema’s total sales.

Scala Offers Reliable Solutions for Grocery Stores

Scala provides reliable, scalable and flexible MarTech solutions for grocery stores. Find out more about Scala’s solutions for grocery stores and kickstart your digital transformation today.

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