2016 has been a defining year for retail industry in India. From the demonetisation move of the government that gave impetus to online and cash-less transactions to Mobile Retail that saw a big push.
The massive adoption of smartphones, increased data network and scores of apps gave a big boost to the mobile retail. Retailers came up with specific strategies to incorporate mobile into its customer experience with massive transition from typical commerce to e-commerce and then to m-commerce. As a result, m-commerce industry in India is expected to capture 80% of the e-commerce market by 2020. Retailers are now using every technology available at their disposal to establish a direct route to their customers and end consumers in terms of digital payments, personalisation & agile retail.
Following key trends are likely to emerge in 2017 in the technology distribution and retail space:
Demonetisation being the defining move of 2016 for India, Its impact will be felt across business and service verticals. Following key trends are likely to emerge in 2017 in the tech distribution space:
· Higher acceptance for e-distribution - There will be increased acceptability for e-payments at small and big retailers alike, leading to an increased number of retailers going digital with higher acceptance for e-based offline distribution.
· More Efficient Distribution - This will be a surge in D2R business in India where manufacturers will directly bill to the retailers as per their need, making the supply chain more efficient and at far lesser cost.
· Grey Market will Crash - Demonetisation will lead to increase in cash-less transactions and hit the grey market massively (which, in case of accessories, can be as high as 70%).
· Accessories under GST Net - GST implementation will lead to further adherence of taxation, leading to growth in tax-paid accessories
· High-end Accessories market will boom - Increase in Smartphone penetration will lead to a major boom for high-end mobile accessories. We might be at the tipping point in 2017 with multiple international brands making a beeline for India.
This article has been authored by Ajay Laddha, Co-Founder, YMS Mobitech Pvt Ltd