Retail in Asia

In Markets

Inside India: Fresh market shopping is a multi-sensory experience

The advent of multinational grocery chains in India will streamline and standardise the shopping experience. While back-end infrastructure will be of benefit, major players need to be aware of India’s shopping habits at the front end.

The outdoor market (mandi) at Mehrauli village – open every day of the week – is occupied by stallholders who rent a regular pitch. Produce is piled high – and replenished throughout the day – leaving narrow paths for customers to navigate their way around. Sets of scales are used to sell fruits and vegetables in large quantities by the kilo.

Touch, talk, smell
It is clear from watching shoppers within this environment that there is a desire to participate in the buying process. Shoppers are engaged by the task in hand. Prices are compared, freshness is questioned, and everyone smells, squeezes and sorts through the produce during the decision-making process. The place is alive with interaction between buyer and seller.

Multiple stalls are visited until the buyer is happy with the price and quality of what is on offer. For example, the person I was with refused to pay INR35 (US75c) for a kilo of mangoes at a stall on the periphery, managing instead to buy at INR30 per kilo from a stall located deeper in the market.

Relationships and trust
No prices are written down: all communication is oral, which means anyone can sell and shop, irrespective of whether they can read and write. No receipts are issued and all transactions are in cash. Stallholders rely on building relationships and trust with customers.

Freshness and fresh ideas
While some of the produce might not look as perfect as what can be found in supermarkets, it is perfectly fresh. Lorries deliver fruit and vegetables overnight and the majority gets sold the next day. To give a sense of scale to the turnover, one stall sells up to 10,000 kg of tomatoes each day.

There is no doubt that organised retail can make a dramatic difference to the supply chain in India. The question is whether new entrants can replicate the inclusive shopping experience of the fresh market in a modern retail environment.

Dominic Twyford is the founder of India Insights, a retail consultancy in India offering clients insights into the Indian consumer as well as issues affecting their brands and businesses in the country.

Inside India is Retail in Asia’s regular column dedicated to showcasing opinions about the Indian retail industry.