WAL-MART'S market research is believed to have thrown up the possibility of the retail godzilla consider “home-delivery” for the Indian market, a first in the world for the Bentonville giant.
This seems to be based on the research premise that unlike their British and European counterparts, Indian households generally stock vegetables and groceries on a weekly basis, hence, the relevance of “home delivery.” A query to Wal-Mart business development and research outfir in India remained unanswered.
The over $300 billion Wal-Mart, which is poised to foray into India through an alliance with Bharti Group, had opened a business development and market research office almost a year ago. The home delivery aspect is just a part of many suggestions Wal-Mart's ongoing study.
While a majority of organised retailers in the country today offer doorstep-delivery only as a value-added service and do not focus on it to build their business, neighbourhood stores have been quick to lure buyers with this added convenience.
So, while the department store staff may take longer to drive home, the kirana store's chhotu comes running up the stairs much faster, if a little out of breath. And minimum orders can be as low as Rs 10/20! It only helps that the country has a tradition of home delivery, be it milk or laundry.
Explains Jeetu Mehta, president, Spencer's Retail: “Home-delivery makes more sense for top-ups for a household's grocery requirements. As a trend, door-step delivery globally grows with better internet connectivity through the online model. In India, the concept is yet to take off in organised retail. On its part, Spencer's offers this service within a 3/5 km radius from its stores.”
Adds Pranab Barua, CEO, Trinethra Super Retail Ltd (TSRL): “As much as 20% of our total sales come from the home-delivery route. At times, customers shop at the store and then ask for the supplies to be delivered or they order from home. Fabmall stores deliver within a 2/3 km radius at a minimum order of Rs 250.”
The Rs 240-crore TSRL has unveiled a new retail format - the Trinethra Quick Shop - to take on the neighbourhood convenience stores. The Quick Shops will showcase the main 3,000 SKUs which account for 70 to 80% of total sales.
Pizza Corner's CEO Anoop Sequeira has an interesting take on the subject: “Double Income No Kids (DINK) families are contributing to growing sales from the delivery route. Pressed for time, they might not opt for dine-ins. Similarly, families with kids also constitute a significant part of home-delivery customers.”