BackRetailers go mobile, take stores to customers’ doorsteps
Retailer Landmark is piloting both concepts for its Lifestyle and Max retail formatsRetailers, especially those selling apparel and accessories, have seen a slump in business, first because of the lockdown, and now because people fear visiting markets and malls
PremiumCompanies are getting creative to reach out to consumers as the pandemic has forced most people indoors. With rising coronavirus cases, they are identifying quick solutions to target shoppers, including mobile shops and doorstep deliveries in cities.
Food, footwear and apparel brands, including Lifestyle, Domino’s, Bata, Levi Strauss, Reliance Trends and Wildcraft, are taking their stores to shoppers’ doorsteps. They are either deploying mobile vans, which are essentially mini-stores that service apartment complexes over a few days or a weekend, or setting up temporary kiosks in large apartment complexes.
Retailer Landmark is piloting both concepts for its Lifestyle and Max retail formats.
In Pune city, a Lifestyle Style Express van has been set up as a pilot to help shoppers of an apartment complex purchase apparel and accessories. The retailer is exploring expanding the mobile van concept to other cities.
“We piloted the initiative with one Lifestyle Style Express, which is plying in Pune currently. We are taking the Lifestyle Style Express to apartments across the city so that customers can see the latest collection from their favourite brands at ease within their apartment complex," said Srinivas Rao, senior, vice-president, marketing, Lifestyle.
Rao said the initial response has been good as customers are discovering the convenience of shopping. “We also see this as a good opportunity to refresh the brand connect with customers," he added.
Retailers, especially those selling apparel and accessories, have seen a slump in business, first because of the lockdown, and now because people fear visiting markets and malls.
Analysts tracking the sector said the measures are likely a stop-gap arrangement till footfalls resume in stores. Still, some successful experiments could become permanent fixtures in the post-covid pandemic world.
“It is important from a brand perspective as it’s a direct and exclusive connect. Plus, it helps retailers in the disposal of older inventory," said Abneesh Roy, executive vice-president, research, Edelweiss Securities.
Bata, India’s top footwear retailer, introduced a ‘Store-on-Wheels’ in the first week of July in Greater Noida.
So far, it has set up mobile stores in 35 cities at 150 activations on a weekly basis. The firm is scaling up the reach of these mobile vans gradually.
“We are looking to target more regions and are in contact with many RWAs (resident welfare associations). We will set up more stores just as soon as we get the required approvals," said Sandeep Kataria, chief executive officer, Bata India.
Kataria said the concept is an asset-light service and doesn’t need much investment. Mobile kiosks are set up by its staff and products are delivered straight from the retailer’s outlets.
“So, the capital expenditure is not very high for us. Considering we have received a good response, we are planning on extending it to more cities and towns. We have already piloted the service in metros and tier-1 cities, and are also planning on reaching out to smaller towns and cities over 4-6 weeks," he said. Sales through the mobile vans have risen steadily, he said.
Mobile vans will become an “alternative channel" for the footwear retailer along with its new hyper-local channels like Bata ChatShop.
In over 40 cities, outdoor clothing, footwear, and travel gear retailer Wildcraft has established 3,000 kiosks to sell its recently launched range of masks and protective gear, including hazmat suit, gloves and eye-wear, and some 1,000 mini-mobile trays selling masks.
To be sure, in its fifth round of business survey released by the Retailers’ Association of India (RAI), it estimates that only a few categories such as food, grocery and consumer durables continued to show recovery in the last 15 days of July, against a year ago. While business was down for all categories of physical retailers, for apparel and clothing retailers sales were down by 69% on a year-on-year basis.
Sports goods, and beauty and wellness have also not yet recovered, RAI said on Monday.
As a result, retailers are driving more effective models, especially at a time when shoppers are also favouring online shopping.
Wildcraft has also worked with RWAs, placing such kiosks either inside or outside residential locations.
The sellers—typically blue collared, temporary workers—use PhonePe and other digital payment apps to sell masks that cost ₹150.
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