6.5.2 Evolution of Services¶
Traditional Retail Model¶
The Old Way: Kirana Stores¶
20 years ago, retail was predominantly conducted through Kirana stores or mom-and-pop stores. Customers would visit these stores with a list of items they needed. The shopkeeper would then: - Select the items - Weigh and pack them - Prepare a bill
This process was labor-intensive, with a strong service element, as customers relied on the shopkeeper to handle all the aspects of shopping.
Evolution of Retail Services¶
Home Delivery Service¶
As time went on, the retail experience started evolving. A new type of shopkeeper introduced the concept of home delivery. Instead of customers visiting the store: - They could simply send a list to the shopkeeper, often through a call or a message (such as WhatsApp). - The shopkeeper would deliver the items to the customer’s home, adding a layer of convenience and service.
Credit Service in Small Retail Stores¶
Even small retail businesses like tea stalls, vegetable vendors, and street food sellers in India began offering credit or Khata: - Customers could purchase items on credit throughout the month. - At the end of the month or the beginning of the next, the total amount would be calculated, and the customer would clear the bill.
Online Retail: Expanding Service Offerings¶
With the advent of online retail platforms such as Amazon, Flipkart, and BigBasket, the concept of service further evolved. Customers now had access to: - A much larger variety of products. - The ability to apply filters (e.g., brand, price, customer feedback) to narrow down their choices.
Quick Commerce: The New Era of Service¶
In metro cities, a new retail trend emerged: quick commerce. This took the service concept to the next level: - Instead of a scheduled delivery window, orders were fulfilled within minutes (typically 10 minutes). - Customers could receive their products quickly, enhancing convenience and immediacy.
Retailer’s Dilemma: Variety vs. Speed¶
Retailers face a decision: - Should they focus on providing a large variety of products, which would typically be available in large retail formats? - Or should they differentiate by offering fast delivery (i.e., quick commerce) to meet customer demand for speed?
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