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Global marketing research firms have ubiquitously called the ongoing COVID-19 pandemic an unexpected catalyst for tech adoption’ in the retail industry. While the retail industry’s increasing reliance on technology over the past few years goes unsaid, the challenges posed by the pandemic will invariably accelerate the rate of adoption of new technology and tools.
Even after lockdown restrictions are eased, convenience along with safety and hygiene regulations like social distancing, contactless shopping, etc., will necessitate a new approach and retailers will have no option than to rely on technologies for frictionless services and experiential shopping experiences.
We have listed 5 cutting edge technologies from around the globe that promise to be unfathomably beneficial in the post COVID-19 retail scenario.1Shopping Apps
Apps find a mention in this list because they are ubiquitous and can prove to be the easiest way for retailers to offer experiential shopping experiences. “Post the pandemic apps are going to pay a big role in retail. People today like and want to shop smart. They will come to the mall particularly and shop for whatever they want to, and apps can supplement the whole shopping process. They can select the products through the app from different stores, making the whole process faster, safer and seamless,” says Arjun Gehlot, Director, Ambience Mall, New Delhi.
Retailers can also pick a lot up from shopping apps like Ubamarket, that has revolutionized the way people shop during the COVID-19 pandemic. Apart from unique features like pre-made shopping lists, in-store satnav and cashier-less checkout, the app also helps consumers check stock levels from home, as well as check length of queues in a particular store.
Apps can also be used to geo-target consumers and present them with more accurate and relevant advertisements and offers.
Amazon launched its newest technology Just Walk Out much in the in the veins of Amazon Go cashierless convenience stores. Featuring an amalgamation of modern technologies like cameras, sensors, computer vision techniques and deep learning, the proprietary allows retailers to automate operations including purchase, check-out and payment. Amazon Just Walk Out lets consumers avail checkout-free shopping without the involvement of Amazon accounts. The e-commerce behemoth has also launched a website outline the modus operandi of the technology and FAQs.3Smart Building Solutions
Although the technology is yet to pick up in India, Smart Building Technology holds tomorrow’s key to energy efficiency, cost reduction, optimization, and productivity. Smart Building Technology banks on IoT to share information between connected systems to optimize performance as well as automate processes.
Apart from that SBM holds immense benefits for retail – right from tracking and monitoring assets for efficiency, generating heat maps of footfalls, information on shopping habits, to determining the optimal sales strategies for the best same-stores-sales metrics to theft security. Connected systems ensure that store managers have access to all this information in a single location.
While data has become a fundamental part of e-commerce, managing this data, and utilizing it to one’s benefit is progressively getting harder. Integrated online and offline trading system and multi-language, Omnichannel environments and multi-store set-ups all have exceptionally complex information management needs.
PDM assures data integrity in all these environments and systems through a unified virtual location for data storage and management to yield enhanced data quality and accuracy, which in turn can boost purchase decision. A well-aligned PDM system helps in better visibility, enhanced consumer sopping experience, empowers staff and boots productivity as well as sales.5Artificial Intelligence
AI has been a boon for the retail world and its holds the answer to its post COVID-19 future. AI has immense applications within retail and promises to empower both brands and retailers to transform themselves, make informed decisions and drive profitability. AI can aid the entire retail value-chain to gain efficiency and improve agility at every stage of operations, including supply chain, marketing, sales, and customer outreach. It also holds the answer to one of the most important issue in the retail industry during corona time – clearing inventory. In fact, AI can also assist retailers in complying to new safety and hygienic norms in stores post COVID-19. Recently, a New Delhi based AI-driven computer vision SaaS venture called Wobot Intelligence has developed a unique full suite, plug-and-play, hygiene tracking solution that can be plugged into existing cameras to ensure an organization’s hygiene compliance.
One of the biggest challenges that we are facing in fashion retail has remained the same for the last decade or so. It is the non-availability of premium retail development at the right cost. The costing – per square meter occupation cost – in India is as high as in any other part of the world, then be it Paris, USA or China. However, the throughput is not the same. This is a big challenge for the fashion retailer.
The women’s shirt category is a relatively new and small category in women apparel. With a market size of Rs 2,527 crore, it contributes only 2 percent to the total women’s apparel market, which is dominated by women’s ethnic wear. This category is expected to grow at a CAGR of~11 percent in the near future due to increasing women in workforce, resulting in huge demand of formal shirts and growing demand for western wear among women.
Market Reach – Brands have their own customer base. With the popularity of multi-brand outlets, the retailers have a better customer base as they have already built their market presence across different retail formats and different geographies. With negligible customer acquisition and retention cost, the retailers have wide spread market reach for their private labels.
The second big challenge – which mostly cropped up in the last three years or so – is discounting by online players. This percolated down to traditional retailers who then had to come up with similar discounts to combat the e-commerce threat. This impacts retailers who do not compromise on the quality and positioning of the brand. We hope this will stabilize in the near future, because at the end of the day, heavy discounts don’t make great business for anybody. In my view, it is customer delight that matters. We have to win customers through exceptional service and products and not through discounting.
That time is passé when men preferred chairs over trial rooms in stores and let their female counterparts choose outfits for them. Shopping is no more considered the ‘girl thing’ and men are taking an upper hand in choosing the best cuts and fits that resounds well with their identities. They believe, ‘looking good isn’t self-importance but self-respect’. The male apparel consumer is shifting from need-based clothing to outfits which best express themselves. Most importantly they demand for experience, variety and fun while shopping.
India’s leading online fashion brand, Jabong, has announced the dates of its much awaited Big Brand Sale (BBS). The 4-day shopping extravaganza will be held between the July 27-30, with discounts ranging from 55-80 percent, across all product categories. The fashion major is offering 4 lakh styles from over 3,000 international and Indian brands at very attractive discounts. Over 1 lakh styles are for the first time on over 50 percent discount, in addition to over 80 percent off on more than 15,000 styles.The 4-day shopping extravaganza will be held between the July 27-30, with discounts ranging from 55-80 percent, across all product categories
In the same year adidas collaborated with environmental group Parley and decided to lead the way with an ‘eco-innovative’ design. They mass produced shoes made from recycled water bottles found in the world’s oceans. The shoe was named UltraBOOST Uncaged Parley, but is more popularly known as Ocean Plastic Shoe.
Ananth Narayanan, CEO, Myntra-Jabong said, “The Jabong Big Brand Sale is our marquee property that aims at celebrating premium fashion in a unique way. We have witnessed a significant growth in the last 3 editions, and we are expecting 100 percent growth this edition over last year’s Big Brand Sale in July. We are anticipating 25 million sessions across platforms, acquiring 4X new Jabong customers as compared to same edition last year.”
Cost Competitiveness – As private labels have fewer distribution overheads, lesser number of intermediaries and negligible marketing cost, they are able to sell products at lower rates than their branded counterpart. Competitive rates of private labels in comparison to the retail brands make them attractive among the customers.
Overall, the immense growth charted for the luxury fashion segment in India is nothing short of exciting; but with all enticing opportunities come challenges. There are not in surmountable challenges though. Consolidation is a wise move and I would expect to see further mergers and some inter-market investments reducing the competition domestically and increasing competition for international brands, providing the end customer and consumer with better service.
The collaboration between TEA and Birla Cellulose brings seamless alignment with global innovation and ensures preference for the cluster’s products with global brands. One important aspect of differentiation is the sustainability credentials of both Tirupur Cluster and Birla Cellulose which would be communicated through a benefit story. Focusing on best in quality and cost is of paramount importance for greater operational efficiency, a must for the cluster to be competitive against global knitwear hubs.
The overall shirt market in India has witnessed several transitions in fabrics, fits, styles and designs in the last few years. With increasing fashion awareness among both men and women and on influx of international brands in the domestic fashion arena, the category is no more restricted to formal wear. Shirts, which were earlier predominantly owned by men can now be seen occupying major chunks of women wardrobes as well. As projected earlier, it is all set to grow at a higher growth rate than men’s shirts in the near future.
Dilip Gaur, Business Director, Pulp and Fibre Business Aditya Birla Group Business Director, Pulp and Fibre Business Aditya Birla Group said “I recall the meeting, we had with leaders of Tirupur Exporter’s Association (TEA) last year and the seed was sown for a much deeper collaboration between Liva and TEA. Today we are happy to launch LAPF Studio at Tirupur along with TEA, which I feel serve as a fountain of innovation for Man-Made Cellulose fibre based knitted apparel”.
The rapidly expanding Indian retail market, backed by factors such as strong fiscal and economic measures, rising disposable income, etc., is resulting in increasing consumer spending and increasing workforce. As a result it is witnessing some major shifts and growth in the recent years. Amidst this growing market, fashion retail stands out as one of the largest and one of the most rapidly growing categories.The rapidly expanding Indian retail market, backed by factors such as strong fiscal and economic measures, rising disposable income, etc., is resulting in increasing consumer spending and increasing workforce
Replay, Italian leader in the premium denim segment, has announced a strategic distribution partnership in India with Reliance Brands Limited.Replay, Italian leader in the premium denim segment, has announced a strategic distribution partnership in India with Reliance Brands Limited