The economic landscape is a bit like the moon’s surface. Scarred and filled with craters that are deep and wide. Its takes imagination and gumption to survive in such an environment. The size of the market also means there is also a possibility that some businesses will just disappear. The retail sector in the state has witnessed the emergence of national players who are changing the dynamics. In the time of Covid 19 questions have to be asked about how this sector will emerge. Does Goa’s retail sector have the infrastructure to augment home deliveries as people increasingly look to shop online even for groceries? Will department stores as well as smaller shops and mini supermarkets reorient their workforce and technology for this.
The Borkars have been a presence in the Goan retail landscape for several generations. Their understanding of the nuances of the retail market is visible in the manner they have gone about expanding their presence around the state and their plans to spread outside the state. Vinay Borkar of Borkars admitted the business had changed over the past few years but the kind of change since the virus struck had been unbelievable. He said the business would change even further once the virus subsided. Delivery of goods purchased by customers online or via a telephone call was free in places like Mumbai, Delhi and other big cities. There was no question of charging customers because it was all about ensuring the experience was right for the customer. In Goa he said the bigger outlets could and would deliver but there was a strong possibility of a small charge being added to the final bill. Smaller outlets in Goa, he said would not consider the option of delivery even to houses even in the vicinity. He said “The concept of delivery goods free had not happened here. Goan retail outlets have not adopted that principle. It is also about a certain mentality which has to change”.
Sandhya Kini of Kini Supermarket smiled and said the market had changed so much in the days since the virus came to prominence. She said the supermarket had been delivering to customers residence for quite a while now. Sandhya said “Senior Citizens are certainly assisted with their purchases. All they have to do is request us and it is done. In fact, anyone who comes to our outlet and asks for it will be served. We are very conscious of our customers needs and the changing dynamic of the market and we are ready to tackle it.” That may be one case to debunk the argument that retail outlets in the state don’t deliver to the client’s residence but is it so. Delfino’s has carved a distinct niche for itself in the retail market.
Anil Pereira Director at the chain said the chain was delivering to colonies after getting permission to do so. This was of course near their outlet in Porvorim. He said “I don’t really know how long this situation will continue. We have put up a kiosk outside our outlet where our customers can place their order like cold cuts or groceries and they can drive through and pick it. We follow that model. We will not be able to go to individual houses and deliver their requirements. It does not work out for us. You have to understand, in Goa we don’t venture capitalists who can pump in huge sums of money this is all our own money. In places likes Mumbai retail outlets are focussed on customer retention and they are interested in showing x number of clients which can mean a higher value as and when they want to sell out. They splurge on discounts that requires large pockets. That does not happen here because it is our money here. We have to be very careful. So, the rules here are different”.
He may have a point given the small size of the market however Kirit Maganlal the head of Magsons said post covid 19 they would have to reengineer all their processes to stay relevant. He said the business environment would change and the direction it would take would depend on the paying customer. Value as an idea had changed in the minds of the customer. Health and wellness were now more important and not the gourmet angle which his company had pushed. Home delivery was important but it was different now. He said “ Today when I go for a delivery, the society does not allow me to go over to the customers house. I have to leave everything at the security gate. We are now faceless, earlier we could wish them and build a personal rapport.
That paradigm has certainly changed. We also decided to get onboard with Swiggy and Zomato for small ticket deliveries. We cannot deliver in 30 minutes which they do very well. They are also delivery groceries which is great for us but they started charging for each delivery which we do not do. The home delivery model will be a large chunk of the market which is something I do not enjoy in the current scenario”.
The retail market will witness turmoil in the days ahead and one will have to wait and watch what emerges out of that turmoil in the day ahead .
