Indian retailers setting the pace with smart moves

The global retail may be experiencing consumption slow down, but fortunately, this is not true with the Indian retails market. Our retailers are now increasingly collecting, analysing and interpreting vast volume of data to enhance the overall customer experience and make more informed decisions, thanks to the ever increasing use of advanced analytics and AI. As a result of this game-changer, Indian retail market is believed to be on track to reach the $1 trillion mark by 2027.

If the latest study by Boston Consulting Group (BCG) and Retailers Association of India (RAI) is anything to go by, the retailers can unlock Rs 400 billion incremental EBITDA with advanced analytics and AI over the next five years, provided these are leveraged well and at scale. Mind you that the explosion of data in recent years has pushed advanced analytics and AI to the forefront of technology in retail industry. There are many instances of how a number of global retail leaders have successfully adopted advanced analytics and AI to solve critical business challenges and demonstrated significant value. In spite of

this focus on advanced analytics and AI, there is still significant headroom for improvement across dimensions in the coiuntry. Nevertheless, Indian retailers have already created a significant impact with analytics and AI, driving growth and profit objectives through multiple use-cases across the retail value chain. Large brick-and-mortar players and digital-first retailers have deployed analytics use-cases across the value chain, while mid-size retailers have taken a pragmatic approach with a few high-impact ones.

Experts like BCG think that deploying a balanced approach between in-house and external resourcing will be crucial for Indian retailers to effectively execute long-term transformation. While India currently lags multiple Asian countries in advanced analytics and AI maturity, particularly in technology, people and skills, and data governance, there are enough and more Indian retailers, who are truly disrupting the retail industry and creating huge value by leveraging advanced analytics. It is also important to adopt an approach of starting small and scale iteratively.

A successful transformation needs more focus around managing people and processes rather than just different algorithms or technologies.

What are expected of retailers in today’s context are personalisation, accuracy, speed and ‘anywhere’ retail. That’s what the consumers expect. Retailers who are able to utilise AI effectively will be the winners, going forward. There is no doubt whatsoever that there is significant capability for retailers to be more accurate and many of the retailers are on the path, and on a war-footing pace.

Given these adaptions and innovative approaches the Indian consumer can certainly look forward to better standards of retailing. That’s not all. They can also expect a much better offering of merchandise and services. Delivering sustained value creation is the need of the hour and Indian retailers are working towards that, by integrating data, technology and people and processes.