Scope of Modern Retailing in Agribusiness Sector
The Brick and Mortar retailing model has been prevalent in the agribusiness sector, mainly due to the purchasing behavior of farmers (end-users) and in-built trust and age-old relationship with local retailers. However, the recent pandemic outbreak highlighted the change in farmer’s buying behavior and the willingness to explore new purchasing options. On the other side, agribusiness companies also witnessed an urge to adopt modern retailing models to channelize their product and fulfill the market demand. This market trend is enabling modern retailing to challenge the status quo of traditional agri retailing.
The modern retailing in India is expected to grow at 20% per annum as compared to the anticipated growth of traditional retail at 10% per annum. Following are some innovative modern retailing approaches taken by market players and associated benefits accrued by organizing the existing fragmented market:
Next Anticipated Wave in Agri-Retailing Segment
The present day retailing models as described above works in silos. Moving forward, Agribusiness companies will be looking for implementing a holistic Omni channel/multi-channel approach. This will enable them to remain competitive in the market by leveraging integrated online and in-store channel network. The end-users will also gain benefits of having options for shopping in a variety of formats including access to online platforms while not missing in-store experiences to customers.
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