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Consumer Behaviour - Post COVID 19 Lockdown
The COVID19 pandemic has changed the psychology of the consumers across the world as the virus has touched almost all shores. Given the magnitude & the complexity of the crisis and without a proper end in sight, economic recovery is becoming difficult to predict. Even experts are baffled. Consumer behavior changes as the world retreats into a ‘survival mode’. They generally feel jittery and anxious because they feel their sense of control has disappeared.” And the more it happens the more to affects the psyche of the consumer. However, a few weeks of change do not alter consumer behavior drastically. For example - while I agree that online grocery shopping may see a spurt, it does not mean that there will be a fundamental shift in behavior Generally speaking, being healthy and health awareness has increased. There is more emphasis on hygiene, sanitation, etc. India is also affected and here is my opinion on what the behavior of the customers will be towards ...
The Black Swan of COVID-19 Outbreak creating a New Normal
We continue to flounder with the COVID 19 pandemic, flounder because we do not have a plausible complete solution for it. The scale of this pandemic has been ‘never before’. The rate at which it has been propagating has been exponential. And let’s face it there are going to be some permanent changes in our lives. Without a doubt, it is a Black Swan! A lot of people are waiting to get back to normal life! But I dare say there will be no old normal but a new normal, a different type of! Typically with every Black Swan event, there Is a huge shift in people and their behavior. With this shift in behavior, many people are wondering whether the crisis offers the world an opportunity for a more sustainable and equal(ity) path. This pandemic will result in a loss of approx. $1 trillion worldwide which means it will have a terrible effect on developed countries and a devastating effect on poorer countries even if they are not affected directly by the virus ( which is unlikely...
Recruiting through Data - How Big Data Helps Recruit the Right Talent
For most companies, people costs would be the single largest expense. No amount of automation or systems can remove the need for people in any organization – it can reduce but not remove completely. Why does a person in a similar role outperform the others? Why are some people good team players and some individual contributors? How do organizations decide what makes good managers and further on good leaders? How well do organizations truly understand what drives performance? Why certain leaders thrive and others flame out? Can we accurately predict whether a candidate will really do well in our organization? The answer to most of these questions is ‘don’t know’. Most recruitment, performance and rewards decisions are made qualitatively – through a combination of gut feel, personal experience, and corporate belief systems. The time has come to reduce the subjectivity. This calls for scientifically designed systems and processes backed by information & knowledge. In today’s ...
Hype ? - about Hyperlocal Grocery
At around $350 billion, India is in the top grocery markets of the world. This is approximately 70% of the Indian retail business which is around $500 billion. Modern retail accounts for 10 - 20% of this pie. E-commerce or hyperlocals are obviously a tiny part of the pie just yet. Most companies, therefore, are still at a stage where they have to prove their business models and change consumer behaviour. These type of businesses are expected to reach around 2% of the grocery market by 2020, creating a potential market size of around $10 billion (Rs 60,000 crore). The hyperlocal on demand grocery has mainly two models - a) A large player like Big Basket offering localised services. Inventory is carried by the company. b) An aggregator using the local retailers to source products and handling the delivery c) An aggregator using local retailers to stock and deliver It is a no-brainer that an aggregation model, as it is asset-light, is les...
Food Gone Good - Food (Delivery) will Work
The 'hot' business till a year ago is seemingly ' hot to handle' now. There is a pervading sense of fear exacerbated by the closure some famous start ups in food delivery business. However, the naysayers will not question the potential in food delivery- The organised food business in India is worth $48 billion, or Rs 3 lakh crore, of which food delivery is valued at $15 billion (Rs 94,755 crore). In developed nations, takeaway and home delivery contributes to about 35% of the food business. In India only about 10% of the orders are for takeaway and home delivery. Furthermore, 80% of the orders are made through phone calls. Eateries like Dominos, Pizza Hut etc. alone get 50-60% of their sales through eCommerce. At last count there were around 120 start ups in this space, all jostling for the same customer in the same areas. Given the low entry barriers and healthy wallets of investors start ups have mushroomed. That is reason enough to ...