Noida is one of the fastest-growing retail markets in North India. A large population base of over 0.8 million with an average household income of INR 671,000 (USD 8106) per annum translates into a large aggregate retail demand as well for Noida.
The city is an IT, BPO, and manufacturing hub in Northern India, which has also resulted in a large base of young affluent workforce with evolved retail preferences. It is home to some of the biggest IT & management consulting companies such as Microsoft, Accenture, Google, Capgemini, Infosys, TCS, Sapient, Paytm, KPMG, EY, HCL, Colt, Wipro, Cognizant, Adobe, Oracle, etc.
As Noida’s profile has risen over the years, the higher education sector has also grown at a staggering pace. Noida alongside the adjacent Greater Noida region is home to a host of nationally acclaimed universities, colleges, media institutes, law & business schools such as Amity, Sharda, Bennett, Galgotias, Jay Pee, etc. The presence of a large and extensive youth populace has further added a new layer to Noida’s growing and evolving retail industry.
The city’s strong infrastructure base and smooth connectivity further serve as a backbone to its economic growth pulse. Through the Noida-Greater Noida expressway it is connected to the national capital, while the 165 km long Yamuna expressway makes it accessible to the interiors of Western UP. Through eastern peripheral expressway and the newly built Yamuna Bridge, it is linked to Haryana.
Organized retail is a high-potential category in Noida with ample appetite for hypermarkets and supermarkets. The modern lifestyle, wherein people want all their requirements served under a single roof will further drive the market in a positive direction. Noida has indigenous store chains such as Grocio, Anand Gro alongside other national players such as Big Basket, More, Spencer, and Reliance Fresh. Premium grocery chains such as Nature Fresh and Le Marche also have a footprint in Noida to cater to changing preferences. However, the present market is still small against a demand that is growing at an unprecedented pace. This makes investing in modern retail outlet such as hypermarket and supermarket a high potential deal in Noida.
Moreover, Noida’s infrastructure and real estate are also conducive for hypermarkets and supermarkets to operate successfully. The Noida and nearby Greater Noida is systematically planned ad developed. There are plenty of IT parks, dedicated business parks & SEZs, residential complexes, large-scale retail communities wherein hypermarkets can be opened. Likewise, there are also big malls and shopping complexes offering the perfect space to start a retail venture.
By 2024 the Noida International airport (NIA) or the Jewar airport is set to open. This will further drive demand for modern retail businesses in Noida, especially across the Yamuna expressway region.
In the first phase of the airport, NIA will manage 12 million passengers. NIA is set to be the biggest airport in India and by 2040-50 the project will be completed in four phases. Once fully completed, the airport will handle 70 million passengers.
Consequently, with the advent of the airport, new business parks, IT parks, neighborhoods, 5 star hotels & resorts, high street retail will mushroom all around. Already a 500-acre central park has been planned near the airport. In close proximity to the airport dedicated zones have been announced for medical device, textile, pharma, handicrafts manufacturing.
This will not just boost business activities and commercial progress but also fuel demand for modern retail including hyper markets and super markets, high street, food & beverage outlets, QSRs, fine dine & casual dine place, pubs, etc.
In a hypermarket business, it is difficult to curate a USP in terms of products because of product uniformity. It is via the services and ethereal aspects that existing hypermarkets can curate an opportunity for themselves. Huge brands invest more in building infrastructure and technologies to improvise the customer experience and generate value-addition there. It is through these indirect niche-building and value-adding efforts that successful businesses in this industry can attract and retain customers leading to increased scope for revenue generation and profits.
The next crucial consideration in your retail hypermarket business plan is to look out for the best location. This is an utmost vital decision as you can only take this once and cannot change your store’s location if the footfall happens to be less than your expectation. Thus, this needs to be a well-planned decision with a long-term impact on your business.
Store layout makes a crucial part in a hypermarket business. The profit per square foot is a vital measure of benefit in the retail industry that hugely depends on the store layout. Nowadays, many hypermarket design consultants aid businesses with the store layout to utilise the store area optimally and to generate higher returns by adding more and more products to the inventory.
Branding is not only about having a flashy logo, an amazing website, or a catchy tagline. It is an experience to put it concisely. A brand is never a product, a promise, or a feeling but rather, it is the coming together of all the experiences one might have with a company. The entire purpose of the branding process is to provide an experience to the customers that make them come back and become your regular customers over some time. This can be assumed as the litmus test of your hypermarket brand.
A saying or rather a school of thought says that a set of skilled and happy employees lead to happy customers, which further leads to more profits and happy shareholders. This ideology has a multitude of advocates across the globe. Thus, its truthfulness can never be questioned. For your hypermarket business plan to be a success, your employees play a huge role here since they are the ones who represent your brand to the consumers, and everything depends on them. Thus, preserving a qualified, calm, and motivated workforce is vital for your brand and business.
All these factors and many more make your hypermarket business a failure or a success. For more assistance in beginning your hypermarket business, simply connect with our experienced team of consultants at The India Watch.