Premium food retail ….Is the time right to enhance and scale up the exotic experience?
The thought for this article occurred after a visit of mine to the food hall in Palladium Lower Parel Mumbai…under normal conditions I would have given a food retailing joint a skip on that day since I had no household purchases on my agenda on that day..
However the person who was with me was adamant that I should check it out and since the same happened to be someone to whom I couldn’t say no to easily I went in without much interest to be honest…
However, once I was inside let me tell you …I was hooked….the kind of stuff I was finding on display was amazing and to top it all there were 2 or 3 testers under each shelf…I kept walking on and you had a live kitchen where you could select the drink that you wanted and also prepare what you wanted from a variety of choices…
To complete the experience we went into Godrej’s Nature Basket which also addresses the same premium segment which also was located in the same floor…
Since then have been trying to figure out how this experiment stacks up in the normal retailing parameters…and what they would need to focus
1. Convenience
Well from a location point of view the one in Mumbai is located in Palladium a premium mall in Mumbai… Since it’s a new concept which is being tested out and is addressing a premium segment the ease to reach option I feel probably doesn’t hold good for this segment…
But since many of the things that are sold are unique and you can’t find them elsewhere am not really sure if there is an option to order and get the same delivered at home…Would be really good if such an option could be worked out and since there are more than enough delivery options thanks to the e- retailers, this shouldn’t be difficult to work something out.
2. Customer Experience
While the experimental kitchen was well-manned, one couldn’t really differentiate between the manpower at any other retail store, it was not too different, which is probably one area where this segment will have to work on…because a good sales person could really enhance the experience by providing a customised service to the person coming in and introduce him or her to newer products so many of which were available.
3. Pricing
Feel pricing as such is not such a big factor in this segment since you are actually providing products which are not easily or readily available elsewhere…But the clientele who frequent these stores are well travelled and well-read so while a slightly premium pricing is fine it should not be so exorbitantly priced.
4. Assortment
The assortment that I found in the store was varied and good…But when you are trying to bring in an experience there is no end point to it and the options are endless… So maybe new introductions will have to be displayed more and those which have already reached up to scale lesser to strike a balance between the two..
Master classes organised at the food halls which are run by experienced chefs which help people understand should be encouraged
Being an experimental concept I really felt the visual appeal of the display at both the stores could be improved to capture the interest of the customer and attract him to look at the product which probably he is doing for the first time and then be tempted to take the experience forward.
5. E – retail Channel
I really feel this is a segment which can be scaled up only by adding an e-retailing option .So while the stores at the premium locations will act as the experience zones where people can experience and experiment and try out new and varied varieties of food stuff scale can only be built if there is an option provided for these customers to repeat orders which I feel can be addressed by the e retailing option or the order and delivery option.
6. Innovation
The concept itself is innovative so innovative ways to market and upscale the experience has to be the way forward.
The experience at both the outlets and seeing the people at both the stores has convinced me that the segment adds value to the retail chain..
With the buying power of the Indian middle class growing day by day and with more and more people travelling abroad the aspirations to experiment with the premium foodstuff being provided is also growing day by day…
I am convinced that the time is ripe to scale up this segment of the retail chain…How the economics will work for it to achieve profitability is what we will figure out …
Watch this space for more…
