In 2017, the retail sector faced various challenges from a government-level policy transformation, technology perspective, and working capital perspective to sustainability. Success after 2018 depends primarily on engagement with each brand / retailer
Indian retailers account for over 14% of gross domestic product and about 8% of work, and in 2017 there were many opportunities, especially with the entry of various brands and new entrants.
Significant increases in branding, inventory management units (SKUs), and transactions over the last decade have increased opportunities and challenges regarding space requirements, working capital availability, customer traceability, transactions, and taxation. It was. Recent changes in taxation have created short-term uncertainties.
Customer retention and procurement continue to be a major challenge, in addition to increased labor costs and limited availability of retail assistants, beyond regular and market-to customers. Needs and demand have shifted from skilled labor models to semi-skilled and skilled labor.
Most importantly, the use of technology leads to a large amount of non-productive products, leading to increased leaks and consequently reduced profits.
We need to focus on solutions, anticipate future trends, and predict how the industry will ride the new wave.
Technology offers the opportunity to engage directly with customers
Technology is growing faster than previously imagined. Brands and retailers that can engage with customers and stakeholders will succeed. Both online and offline markets are growing rapidly. RoI measurements are only possible when the commitment is to the final consumer.
Omnichannel continues to grow
Retail growth is clearly visible neither offline nor online. There is no room to ignore one and focus on the other. Most brands including FMCG should be able to serve customers on both channels. Beyond that, they should be able to know their consumers, their needs and their dissatisfaction, regardless of the channel they choose to buy.
It is important to create an exciting experience
It is important to connect customer experience with brand engagement. Customer engagement will be the next major challenge.
Brands and retailers may know technologies and methods that can help identify consumers / customers, especially if the market is highly decentralized and many transactions take place in multi-brand stores. It should.
The importance of personalization in retail stores may not be necessary only in online stores. Personalization means understanding the customer well, predicting customer needs and expectations, and providing an engaging experience.
Personalization must also be extended to offline retail. While online transactions are increasing, it is also true that the majority of retail is still offline. Even online stores will only open more offline stores. Knowing customers at the point of sale is imminent to create an exciting experience.
Social connection sharing buying trends
The more social consumers and their opinions are greatly influenced by social friends. Brands need to be able to connect to social platforms, product sharing and consumer code to buy on the spot.
Connecting all offline stores that sell these products will further enhance the experience by delivering as quickly as possible. Brands / retailers can effectively turn these outlets into mini-warehouses. Therefore, being able to deliver immediately to the nearest store will please consumers.
Small returned to the world to succeed in India
India is dominated by small format stores. Many were initially worried about being wiped out for a number of reasons, including threats from online and large stores.
But trends around the world prove the fact that small formats return and succeed. Even large formats publish small formats together where they participate in the competition.
Convenience, low volume, repeated buying habits, and recognition of new and new models are becoming reasons to return to small format trends.
Success after 2018 depends largely on the engagement of each brand / retailer. Brands and retailers with the right idea focused on creating the future by adopting technologies that help in-store, mobile, cloud, analytics and social media be integrated into their integrated technology to increase customer engagement.