The retail landscape of India is vast and is divided into two major categories, the organised and the unorganised sector. The unorganised retail market of India constitutes about 95% of India’s economy. India, as we know, is a multi-cultural, diverse country where people have varied tastes and preferences, every few km. Also, a large part of the Indian population stays in families and there would just be a handful of individuals staying alone. This dictates that most of the daily needs of an Indian consumer, especially when it comes to eatables are dependent on the culture their family follows. A few metropolitan cities like Mumbai, Delhi, Bangalore have a higher concentration of multi-cultural, multi-lingual population as compared to the other tier 2, tier 3 cities of India.
The organised retail market focuses more on universal products and popular brands. Every organised retail market- be it a supermarket or departmental stores majorly curate/stock up on products from big brands irrespective of the cultural concentration of that locale. The user demographics here are very scantily taken into consideration.
An Indian consumer’s preference for shopping largely depends upon their age, education and gender. But when it comes to shopping at small retailers, culture plays an important role. An average Indian consumer will always prefer shopping at a local mom and pop store for authentic Indian items than an organised supermarket.
Culture influences the stocking up of products, especially in a mom and pop store. The kiranawala makes it a point to stock both universal as well as local products but focuses more on the local ones. Since he caters to a comparatively smaller neighbourhood, he is successful in catering to the specific needs of people. His user demographics are more in-depth, detailed and concentrated.
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User demographics and cultural relevance play a big role in carrying out a successful business as it largely affects its functioning. The target audience and their needs are largely influenced by their culture as it is by their education, age and gender.
The product inventories vary according to different regions and for the sales to turn out well it becomes extremely important to have clear communication with the product users. We here at Pay1, have always believed in understanding our customers’ needs and delivering exactly what they need. For the same reason, we have always had our communication plan laid out depending on the retailers’ region and locale. This has helped the retailers to understand us and our services better and aided us in scraping out the possibility of miscommunication. Even delivering a digital product or service which is more like a universal need in current times, also, always requires the need to understand the locale and sell your products and services in a local manner. Market research, understanding your audience, where they come from and their needs, their preferences are good to head starters to having a successful business.