Ground Level Innovation

The advent of modern trade in India has seen a mushrooming of supermarkets, hypermarkets and shopping malls. Swanky in their presentation, they are called the new temples of India. So it's not uncommon to see throngs of people during weekends, who frequent these shopping complexes just to get a feel of the new shopping experience. Even if it's just window shopping or merely going up and down the escalator, Indians are lapping it up. Some observers believe the rise of modern grocery formats will lead to the demise of the neighbourhood kirana stores. While the kirana stores may be impacted in some pockets, the fear of modern trade killing the conventional trade is unfounded.
In my market visits across the country, I have witnessed how ordinary stores are rising up to the challenge from modern trade. In fact, in some cases they are far ahead in their attempt to service customers better. These shop owners are educated second generation traders who realise the importance to be abreast with the changes taking place in the market. So a local chemist shop in Mumbai has introduced SMS marketing for its target audience, a shop keeper in Hoshiarpur has a small call centre to call customers for their daily needs and three friends who have come together in Andhra Pradesh to start an Agri Mall to service villagers within a radius of 50 kms.
All the above examples reflect that the general trade is witnessing the changes taking place and is eager to adapt. Some do it on their own, but a large majority (grocer channel) will require help. Companies therefore have to be more proactive in their engagement with the grocer trade as helping this channel upgrade will only help the brands. Remember, modern trade is just 5-7 % of the total trade in India, the rest is the unorganised trade. Thus in the time to come, trade marketing with focus towards various trade channels will increasingly play an important role. I welcome thoughts, ideas and observations from readers on the changes in the market...

Mobile Telephony in the hinterland

I have travelled across Himachal, Eastern UP, Maharashtra and Andhra Pradesh and each time I marvel at the way mobile telephony is making further in-roads into the hinterland. Even if it's a population of only 1000 plus, the single shop within the village stocks recharge coupons or mobile accessories. The signages of Airtel, Idea, Vodafone to name a few adorn these shops. It's amazing that service providers have reached the last point of contact with the customers through these shops, which even FMCG companies have not touched so far.
These shops are grocer shops or kirana outlets, who now double up as mobile services outlets as well. In one instance, a tailor based in a small highway town along the Kalka-Shimla highway has become a mobile retailer, having converted half his shop into a mobile services outlet. And he's reaping the benefit, getting wooed by mobile services companies with freebies and margins. The sales team from companies are constantly on the lookout for such retailers who help them get an entry into such virgins markets. And as the next big battle for mobile services companies is the rural markets, expect more and more interesting marketing activities across rural India.