The popularity of vending machines in India is closely linked with its age-old ‘Kirana store’ culture. Vending machine businesses had a tough time competing with these established players.
While vending technology is highly popular in developed countries like Japan and the USA, India is still catching up. In fact, people abroad are even willing to pay a higher price for a commodity from vending, as it saves time and is available everywhere.
However, the vending business has yet to create the same craze in India and the consumers are still loyal to their round-the-corner shop.
The reasons are multiple, some of them are myths while some are genuine fears.
So, let’s explore the reasons why vending machines are not that popular in India. Most importantly, let us separate the myths from the fears!
Vending Machines are Stealing Jobs: Myth or Reality
Myth: When a vending machine replaces a familiar face of the grocery shop ‘bhaiya’, the first fear is job loss. It is all the more legitimate in a country with highest population and high unemployment rates.
Reality:
- Where the population goes up the demand goes up too. And vending machines are helping to fulfill this rising demand.
- Places like schools, office spaces, airports, etc. have limited space area where vending machines are convenient option than brick and mortar shops.
- The consumer behavior has also changed in the face of better quality products with efficient buying experience. Vending machine is a one-stop-solution for both.
So, the myth of job crisis due to vending machines need to go away.
Trust Issues with the Machine: Myth or Reality
Myth: In a consumer culture where people have a sense of belongingness with their store vendors, a robotic machine can creates a sense of unease.
Moreover, lack of digital literacy and the fear of money getting stuck further enhances this lack of trust.
Reality: The fear factor of common masses here is understandable. This is also reflected in the more popularity of vending machines in Tier 1 cities than in other tiers because in Tier 1, education and digital literacy is higher than the rest.
Having said that the increasingly user-friendly vending machines and the UPI revolution of India are steps in the right direction to overcome such trust concerns.
My Money Will Get Stuck: Myth or Reality
Myth: Some of the most common concerns regarding vending machines are:
- My money bills will get stuck in the machine
- Coil not rotating and items getting stuck in the machine
- Machines not accepting creased or torn notes
- The refund will not be processed properly
- Exact money bills are required
Reality: It is because of such concerns that you will find a person sitting with multiple bills and coins near a Delhi Metro Rail Corporation (DMRC) Automated Token Vending Machine (ATVM).
While vending machines manufacturers attempt their best to run the machines multiple times to ensure a fault-free experience, errors cannot be avoided completely.
In this context, the role of customer support, user manuals, etc. become very crucial.
You can go through a brief guide of how does a vending machine work!
Transaction Time is Long: Myth or Reality
Myth: The older vending machines used to vend only one order at a point in and that too took almost 2 to 3 minutes. This wasted about 10 minutes in vending three items from a machine which otherwise takes much less time from a grocery store.
Reality: However, this concern is a clear myth today.
- With multi-vending options available in the state-of-the art machines, delays in vending are a thing of past.
- On the contrary, one of the reasons why vending machines are becoming so popular in tier-1 cities is their super fast vending process.
Hence, the hesitations in Indian customers is just the fear to try something new.
But this new brings amazing consumer experience, saving time, energy and often cost too. The enthusiastic entrepreneur group of India has realized the potential of vending machine business.
It is reflecting in the increasing popularity of vending machines especially in Tier-1 cities and amongst the public sector as well.
The question here is are you ready to take steps towards this new face of retail marketing?
