Without actionable intelligence, it is impossible for any business or organisation to move forward. At ARP, Vinay K Mayer is committed to ensuring that high-quality, cost-effective Market Research solutions are delivered seamlessly to a wide spectrum of industries that trust the company’s extensive domain expertise, local exposure, state-of-the-art technologies, and scientific methodologies. Currently, at the helm of Sales and Services Delivery activities at Asia Research Partners (ARP), Vinay’s years of experience in Business Process Outsourcing and Market Research has aided the successful completion of a wide variety of research projects across the globe, especially in the Asia-Pacific, European, North American, and the Middle East regions.
India’s retail industry is expected to grow at a tremendous rate in the next few years. By 2026, it is projected to reach US$ 1,410 billion. This growth presents a stellar opportunity for businesses to expand their operations in India and tap into this growing market. And Global Digital Transformation Market in Retail is expected to reach USD 389.72 billion by 2026.
According to the above statistics, there has been a significant rise in technological advancements, and retailers are now adapting by relying more on digital platforms to sell their products. Brands have started taking note of digitalization trends, such as AI and AR, to enhance user engagement.
The retail industry in India is very dynamic. New products and sellers are coming into the market all the time.
This can be tough to keep up with, but it’s important to stay on top of these changes if you want your business to be successful.
By understanding these industry trends, you’ll be able to make decisions that will help your business grow 10X. This research will help you understand what consumers want and how to reach them.
Additionally, you’ll be able to better identify opportunities for your business to capitalize on.
Here’s an expert analysis by Vinay K Mayer, Director – Market Research & Consulting at Asia Research Partners LLP, on the changing landscape and what it means for retailers.
E-commerce on the Rise
Indian e-commerce is certainly growing at a rapid pace, but it’s not the only sector that’s contributing to the country’s online trade. Indian Government Initiatives like Digital India, Skill India, Startup India and Make in India are all playing a role in making India a leading player in the global e-commerce market.
ASSOCHAM-Forrester and Retail Association of India (RAI) says the industry has experienced an annual growth rate of 51%, which is the highest in the world. From $24 billion in 2018, the industry is expected to hit $200 billion by 2026, representing more than an eightfold increase over eight years.
Retailing, the Omnichannel Way
With the rapid rise in technology, many retailers have adapted and become more comfortable with selling their products online. Indian retailers who want to stay ahead of the competition are turning to Omnichannel retailing, which is more prominent in the fashion industry.
The reason for this is that digital platforms allow retailers to reach a wider and better audience, as well as offer more variety to consumers.
Additionally, the cost of operating online is comparatively less than that of operating a traditional brick-and-mortar format. Plus, it is also pivotal to deliver a stellar Omnichannel customer experience to acquire and retain new customers.
Technological Advancements in the Retail Sector
- Artificial Intelligence (AI): AI is the most trending technological advancement available right now, be it in any sector. In retail, it is gaining attention due to improvement in the customer experience due to automated processes. AI in retail is expected to grow to $5,010.12 million by 2022. Just like sectors like hospitality and health, the retail sector could also see the use of robots accompanied by machine learning and predictive analytics.
- Artificial Intelligence (AI): AI is the most trending technological advancement available right now, be it in any sector. In retail, it is gaining attention due to improvement in the customer experience due to automated processes. AI in retail is expected to grow to $5,010.12 million by 2022. Just like sectors like hospitality and health, the retail sector could also see the use of robots accompanied by machine learning and predictive analytics.
- Augmented Reality (AR): Augmented reality (AR) is a technology that aims to blend digital content with the real world by augmenting the digital content with computer-generated sensory input such as sound, video, graphics, or GPS data. The technology is used to enhance one’s current perception of reality and is often used for entertainment, information, and communications. It is also used in military, government, and industrial applications. Augmented reality is the next big thing in the retail sector.
- Blockchain: The use of Blockchain technology in retail is a new trend that is rapidly gaining traction. It can be used to keep track of customer information, inventory, and order history, as well as customer satisfaction and feedback. Blockchain, which focuses on making the transactions between the parties secure without the need for third-party intermediaries will be the preferred mode of payment among the retailers for a more streamlined supply chain.
Rise of Digitally Savvy Generation and the Retail Sector
With the world ever-changing and adapting, it’s no surprise that the retail industry is following suit by changing the way it does things. With a more mobile-friendly and digitally savvy population, traditional retailing might not be as flexible. This is where the digital mode of retailing comes into play where it offers a more convenient way to shop for those who are always on the go!
With global warming on the rise, Gen Z-ers are getting more conscious about sustainability and prefer environmentally friendly products. This means that upcoming and existing brands will have to be very cautious about the products they are selling.
Cost-effectiveness is another major factor that is very crucial for today’s generation. They prefer to buy at affordable prices with better quality. The retailers will have to keep this in mind before launching their products in the market.
Bottom Line
The retail industry has undergone a lot of changes in the years past, but it’s fair to say that more changes are on the horizon. We have seen a lot of new technologies emerge to help retailers and consumers communicate, and we will continue to see them change the industry even further in the years ahead.