GOFRUGAL highlights the key trends of 2020

India is Asia’s third largest retail market and the world’s fourth largest after the US, China, and Japan. Being the world's largest millennial population, India is one of the fastest growing major economics globally. Food and grocery industry accounts to a major share of the retail market in India followed by apparel and footwear, consumer durables and IT segments. E-commerce is seeing the biggest growth trajectory in the recent years because of increased usage of smart phones, internet penetration in tier2 / tier3 cities and increase in online shopping. 2019 saw the highest disruption in technology and was the year of transition for retailers who have begun their digital journey. 2020 comes with a great promise for the industry and below are some key trends for retailers to watch out for:

1.       Frictionless consumer experiences will become a basic hygiene  

Today's market is flooded by infinite choices: products, channels with information anywhere anytime. Digital is redefining service expectations from consumers, last mile delivery being the key differentiator. Just like with food delivery, even retail and grocery segments are working on 2-4 hour delivery and probably lesser than that with drones. Delivery is expanding to other segments of retail like Pharma. Pick-up points are the new trend seen with bigger retailers to help reach consumers faster.

2.       Businesses will become agile and responsive, continuously innovate and evolve 

Big or small, success and growth today is defined based on how retailers spot their in-efficiencies, have the right skill/expertise to identify and comprehend the changes required, innovate and adopt faster with changes in market and even government regulations like GST/VAT. With new technologies like CV (Computer Vision), RPA (Robotic process automation), Beacons, Big Data/AI (Artificial intelligence) and ML (Machine learning) businesses need to comprehend the changes and understand how to implement them.

3.       Serving customers in the channels of their choice, connected collaborative commerce (O2O online to offline)

Given the growing complexity of retail today, adding new components or technologies brings in a whole lot of challenges. Such integration challenges are costing a lot of time and money, thus decreasing their ability to thrive in competitive markets. Going forward businesses cannot operate and work in silos, they connect and collaborate with ERP smart platforms. With such connected environments, there will be a need to capture feedback at all the touch-points, embrace them, understand the customisation required to current business landscape, ensure seamless data-flow with systems taking to each other  and most importantly understanding the level of support from vendors or partners for 100% business continuity.

4.       Information loaded business to in-sight driven business 

With the rise of e-commerce & mobile-commerce, Retailers have found new ways to reach customers. But to keep them growing in competitive market, it is important for businesses to turn data and analytics for enhanced decision making. Going forward with use of AI/ML Retailers will benefit on huge cost-saving, faster resolution to problems, identify new revenue channels, increased productivity, automated process and drive profits

5.       Invest and measure Return on Experience ROX

In today's world it is not just technology that is leading the change, it is consumers and their behaviours. Traditional way of measuring ROI is just not enough, Retailers need to identify the path to purchase and the factors that influence their decisions and thus measure the purchase experience of customers.