1. Future of Retail in India
Consumption will always happen. Every
generation consumes more than the previous
ones.
Who’ll make the customer consume more , that
is a question?
2. Introduction
2017 was the year
that put Bharat
online.
Two months into
demonetisation,
the hinterland was
forced to go online.
Those in small
towns had got a
taste of the digital.
4. Physical Retail
Physical retail still capture more than 85% of sales in U.S.
In India, it’s 93%.
Brings the human touch, the excitement across all 5 senses can only be delivered
by stores.
Acquisition of customers at the lowest rates.
Customers still like to visualise and feel products before purchasing them.
5. Evolution of Digital
In 2009, Indian ecommerce industry was at $3.8 billion. By 2012 it reached $12.6
billion. Now at around $35 billion.
India’s first brush with ecommerce was in 2002 when IRCTC was launched.
Although retail sales were available since since 2000, with eBay.
Online shopping was relaunched in India when Flipkart offered very high discounts.
Consumers in tier-2 and tier-3 cities who don’t have access to top brands, fulfil
their demands by going the online way.
7. Cost comparison
Physical Digital
Cost of acquiring customer Less than 2% 18-20%
Cost of delivery Nil 11-20%
Cost of managing business 8% 10%
Cost of doing business 15% of total sales Close to 50%
8. War between Physical and Digital
First war on electronics have
been won by digital.
Electronics covered 60% of
online sales in 2018. (So
imagine doing this at 50% of
cost of business)
Clothing still faces heavy
competition from both sides.
Grocery is a low margin
business thus till now
everyone is trying to obtain
profitability.
9. Impact of Ecommerce
Healthcare, real estate, public transport, food and beverage, not
a single industry has been left by the e-commerce’s pixie dust.
Ayurvedic medicinal plants are delivered through e-commerce
sites
In short, thanks to ecommerce, everything is on sale in India.
10. Problems of ecommerce
Though 70% of nearly 90 million online shoppers in India are influenced by the
information they glean from internet, only 16% of them actually ends up buying online.
Reverse logistics is a main concern.
Customer loyalty is absolutely not there in Indian Market.
Retention of customers is still a problem.
12. New way of doing the business is all about speed, velocity and building deeper
relationships with customers.
Every product or brand a customer chooses tells a story about him. Use that to know
more about him.
Try to make the customer spend his entire wallet with you.
Difference between the digital and physical retail will vanish.
Retailers will build large ecosystems for businesses in and around their areas of
operations.
13. Allows in-store visitors to see products and deals on their mobiles.
Ship purchases to stores.
Have in-store purchases shipped to their home.
Have store processed returns.
Allow for exchanges in physical retail location.
14. Jio model
Ally with traditional
retail (Kirana Stores)
Running a pilot project in
Mumbai, Chennai and
Ahemdabad for Reliance
employees.
Giving Jio subscribers
digital coupons of
different brands on its
Jio money platform.
With which they can buy
discounted products of
these brands at
neighbourhood shops.
Reliance will charge
brands for using their
platform for ‘below the
line marketing’ .
This clever plan can
spread like wildfire in the
hinterlands.
15. Future 3.0
New online-to-offline model Called Tathastu You ask it and you get it
Company will open retail
stores every 2km radius which
will offer discounts to those
living in their radius, where
consumers can become
members of their stores.
Each store will enrol 1500
customers with an annual fees.
Shoppers will get additional
10% off on each bill apart from
existing applicable offers,
consumer credit and home
delivery options.