The pandemic has cost the Indian retail sector approximately USD 30 billion dollars in lost revenue. But it has also set it up for a strong bounce-back as smart retailers used the hiatus to implement a tech-first approach, by stitching their entire organizational DNA together using technology.
To understand how the retail sector has been transforming itself, across the value chain, with data and technology Moneycontrol Innovation Next, presented by Google Cloud, pulled together an elite panel of leaders, who have navigated the digital voyage with great success. The panelists - Jaideep Jaimin, Vice President – Digital Transformation, V Mart; Shaifali Sharma, Head of Planning, Buying & Merchandising, Aditya Birla Fashion and Retail; Sandeep Jabbal, Chief Digital Transformation and Information Officer, Shoppers Stop; Abhishek Sharma, Vice President, Supply Chain, Blackberrys Menswear and Sameer Dhingra, Director, Retail & Consumer, JAPAC, Google Cloud, shared interesting use cases of how retailers in India can move from being digital explorers to digitally resilient and overcome the challenges of digital implementation.
The last two years have taught us that brand loyalty is a fading notion as online shopping has given customers the freedom to seek out better experiences. With the rapid evolution of consumer preferences, towards more omni-channel experiences, retailers have begun to rethink consumer engagement. “They see the need to elevate customer experiences by ensuring that they are present at every-touch point in the consumer journey, from brick and mortar outlets to the digital space,” Shaifali Sharma explained.
Going a step beyond the omni-channel approach, Sameer Dhingra suggested that retailers should think ‘channel-less’ because shoppers don’t really think in terms of channels. “By the time the discovery, awareness and consideration phase is over, the decision to shop from a point of sale is basically a matter of convenience, economics and trust,” he observed. “So, it’s time to stop looking at point of sales and start thinking channel-less.”
Within this transformation taking place in the retail sector, data has been playing a very significant role. It is not just enabling insights, but decision-making based on those insights. Jaideep Jaimin suggested that the benefits go further, saying, “Whenever we have brought out insights of strategic analysis, it has a way of cutting across all silos and inertias and has instantly energized almost everyone in the room into action, irrespective of which part of the value chain they represent.”
Traditionally, retailers function through a long value chain that extends through supply chain, marketing, merchandising and various other operations, which typically work in silos with some linkages. Decision making is rather cyclical and follows a waterfall method, wherein planning outcomes in one segment flow into the plans of the next, and so on. But this is changing.
“In current times, consumer needs are so dynamic that we have to move very fast too,” remarked Sandeep Jabbal . “We need to eliminate silos and bring all the data together to get a clearer map of the consumer journey. Then we can make all the appropriate changes, not only in supply chain or retail or one particular segment but all along the chain, on a daily basis, if required, rather than through the cyclical, waterfall method.” Effectively, looking at data from consumer actions and stitching it across all functions translates into a better consumer experience and this can be measured using various metrics. Using data enables measurement of returns on the implementation of a strategy too, in terms of the impact that it has delivered.
With unpredictability in macroeconomic factors and cost fluctuations impacting raw material purchases, retailers typically find themselves in a situation where they cannot pass on the entire impact to consumers. Using technology to disrupt supply chains and enhance operational efficiency offers better solutions for both the retailers and consumers. “Unlike the orthodox approach of consolidating or moving to low-cost zones, the supply chain can be made agile by bringing in technology. Connecting with partners and sharing information in real time with minimal manual interventions, saves time. Eventually, as man hours get reduced and touch-points are eliminated, cost savings accrue,” said Abhishek Sharma.
While working on adopting technology, Sameer Dhingra cautioned against focusing on ad hoc testing and individual use cases. “These exercises end up becoming short term fixes to long term challenges,” he said. “Retailers must figure out what to prioritize by determining the biggest value drivers of the business and bunching them into meaningful clusters, which can become the focus of investments.”
He suggested that some clusters that retailers could consider were data-driven decision making towards better customer-centricity, building a digital commerce platform and structuring omni-channel growth to get better visibility of shopper journeys, executing a modern store strategy to provide platforms for in-store experiences and last, but not the least, other aspects of retailing such as operational efficiency, sustainability, supply-chain visibility, etc. If retailers look at multiple use cases across these areas and prioritize the largest value drivers, they can build a use case transformation roadmap so that they can stitch together a unified shopping experience for their consumers.
Moneycontrol journalists were not involved in the creation of the article.
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