The concept of vending has been introduced over the years with the aim of providing a way for consumers to access essentials, even during closed hours. This has also aided companies in expanding their wings even to remote areas. The vending industry has been blooming all around the world, with its pioneer being the United States of America. As of 2017, there were more than 6.9 million vending machines in the USA, with annual spending through these machines at $7 billion annually. The North America vending machine market is poised to grow at a CAGR of 14.3% between 2017-2023.
The Current State of the Vending Industry in India
When it comes to the vending industry in India, vending machines are mainly found in offices. Moreover, a research report, ‘Vending in India’ found that vending machines are scarce, however, those that do exist, always have a helper, which comes with its own set of issues.
However, a new generation of educated, dynamic, globally sensitized, highly aspirational and ever burgeoning socio-economic India has been spawned in recent times. This generation is referred to as millennials. While much more successful than their predecessors, millennials have everything, but time. The concept of 9-6 jobs is long gone, as this generation practically lives in their office. They are impatient and looking for instant gratification.
Therefore, this generation is always looking for simpler and faster ways of getting what they want. Which is why they chose to leapfrog from the fixed-line technology of the 20th century and move straight to the mobile technology of the 21st century. The best example of this is the complete shift from retails shops to online shopping. Through apps, the new generation of Indians gets whatever they want right at their doorstep.
In fact, India overtook the US as the world’s #2 market in apps downloads, with 12.1 billion, according to Forbes. Moreover, Forbes also reported that the average data use per subscriber grew 2500% from 65 MB per month in 2014 to 1.6 GB per month in 2017. App Annie forecasts that by 2022, India will have 37.2 billion downloads a year, a growth rate of 207%, making the country the fastest growing app market in the world. The success of apps like Swiggy, Zomato, and Flipkart & Amazon is a testament that the Indian consumer trusts payment via online apps and find these apps more convenient than visiting a retailer store or a mall.
And, that’s where the slowly but steadily increasing popularity of automated vending machines comes in. Predominantly installed at Railway Stations, Airports, Colleges and other Educational Institutions, Petrol Stations, Malls, Offices and Hospitals; the Automated Vending Machine presents a lucrative option for market players to effectively cater to an existential latent demand. What’s more, at Vendekin, we understand that consumers in India today are looking for cashless options. Which is exactly why we provide cashless payment options at vending machines, which not only pleases the consumers but also makes cash management for the VMO a lot easier and hassle free!
What Lies in the Future of the Vending Industry in India?
While there has been a visible change in the status quo of vending machines in the country, what is it that makes these machines an enticing proposition for Urban India?
The New Indian Consumer Faction
As mentioned above, the lifestyle and consumption factors of the ‘New-Aged Indian’ is fast-paced. They require something they have easy access to and can consume ‘on the go’. Owing to these factors, vending machines are the perfect solution, which caters to all these demands,
Simplify Cash Management
The second key change is in the mobile-based cashless payment technology provided by Vendekin. Using the Vendekin consumer app, the consumers can make use of any of the multiple payment methods within the app to instantly purchase goods for consumption. Moreover, while it solves the consumer’s problems, it also helps VMOs with cash management as well as tracking information about the machine’s inventory, health status and usage, remotely. This means you can manage and grow your vending business exponentially.
Overall, the vending industry is projected to record an affirmative growth majorly owing to the amplifying number of product types that will be sold through vending machines in the coming years. Hence, that day is not far when vending machines will be as popular as ATMs are today in India!