Emerging and developing economies are home to 85 percent of the world’s population. These countries are the fastest growing retail markets in the world, where you can find any retail format you can imagine. Yet, most of shopping in the countries like India, for example, is still done in the millions of small shops crisscrossing local neighborhoods. These small shops are usually family owned. The owner, or Retailer, knows his customers very well; what products & brands they buy, and the value they expect.
Retailers go to Wholesalers when they need to buy stock. Wholesaler is a larger shop where small Retailers buy consumer goods in bulk at a low “wholesale” price, to resell them and pocket the margin. When the Retailer shops at the Wholesaler, he knows exactly what he wants to buy for his customers, so he doesn’t take the risk of buying anything different, in case he can’t sell it. This retail model is present in the emerging markets like India, but also in many developing countries in Asia, Middle East, Africa and Latin America. There are two types of wholesale shops:
- Over-the-Counter Wholesalers: Retailers give the Wholesaler a list of what they need, or tell them what they need, and the order is prepared behind the counter by employees. Payment is also done at the counter. Several Retailers are serviced at the same time by employees. This model represents the majority of the wholesale stores.
- Self-Service Wholesalers: Retailers collect goods in baskets themselves, and then wait in line to pay at the checkout counter.
Their lists are quite standard: usually 10-12 brands (in bulk) of typical of products like snacks, shampoos, detergents, diapers, etc. The “spontaneous purchase” that you make, as consumers, is very rare in this situation.
n both cases Retailers often spend almost 50% of their time waiting in this process, mostly near the counter. While waiting, they are bored, so they talk to each other, browse on their phones, look around in the store or just do nothing. Our sponsor, P&G, who sells shampoo, detergent, diaper brands, and more, believes that this is the only time when Retailers are open to discovering products that are not on their list / in their basket, so they want to grab their attention, to engage them on products they don’t buy.
How could P&G use this “bored waiting time” to introduce Retailers to other brands and products worth considering for their business?
Create an impactful solution for P&G that will engage retailers in the countries like India to consider buying additional products while they wait at Wholesaler store counters.
- #1 Prize €2,250
- #2 Prize €1,000
- #3 Prize €500