Amongst the many changes that we may see in the retail landscape is the return of the “at- home” retailer. Back in the sixties the cry of the vegetable seller, the hair cutter, the Waste picker (Kabadi) each a distinct melody from the other could be heard within residential colonies. COVID has given rise to a new word “Essential Retail”. The distinction between “wants” and “needs” will now be increasingly appreciated. The former would be reducing and purchasing would be limited to the latter.
Amongst the needs are the staple groceries, vegetables and fruits. At Home service will address the concerns of health (social distancing) as well as minimize time and costs. Likewise, other essential retail requirements like the barber, the masseur, may also witness at “at-home” service in deference to social distancing. The smartphone and the App world help build the link between customer and provider.
Pre COVID “wants” amongst the aspiring middle class and YUPPIE Families were easily met through the magic wand of the “EMI”. The Equated Monthly Installment helped acquire assets with future money. Here too, COVID has brought home the enormous challenge of an uncertain future. Decisions on these “want” assets would be taken in a pragmatic, realistic and cautious basis. How the players in the consumer durables space address this paradigm shift is the stuff of innovation.
Author
Sridhar Chari
Sapience Research