India’s Economic Recovery Likely to Pick with GDP Rising at 7.4 percent in FY23

The Indian economy is expected to grow at a healthy pace and consumers are feeling confident about spending money. According to International Monitory Fund (IMF), India’s economic recovery is likely to pick a strong pace with GDP rising at 7.4 percent in FY23. 

Deloitte India’s report in collaboration with MAPIC India focuses on technology-enabled retail evolution, sharing a detailed overview of the new-age business models being adopted by different brands to earn consumer loyalty in recent times.

The report states that the retail industry is expected to see year-on-year growth of 10 percent to reach nearly $2 trillion by 2032. India is the world’s fifth-largest retail market, contributing more than 10 percent to GDP and nearly 8 percent to employment.

Post the pandemic-related disruptions, today, retailers are expected to accelerate the adoption of the omnichannel strategy to operate proficiently amidst mobility restrictions, supply chain disruptions, and increasing competition. 

Further, increasing penetration of global brands has led to the emergence of new norms of loyalty for retailers where targeted marketing, personalized product selection, seamless purchase experience, customer loyalty programs, and supply chain resiliency, have taken the front stage.

While a large-scale convergence of online and offline channels will continue to happen, retailers are expected to invest in digital technologies to improve their operational efficiency and customer centricity and thrive in the rapidly changing and competitive consumer environment.

The following are a few examples of technology-based business models gaining prominence:

1. Targeted Marketing

• AI-based predictive analysis of customers’ social media profiles for targeted marketing
• Micro segmentation-based digital marketing to deliver a personalized experience
• Search engine optimization to drive traffic to online channels
• Push notifications on customers’ electronic devices to build brand awareness

2. Personalized Product Selection

• Digital kiosks/virtual shelves/endless aisles to enable virtual browsing of products within stores
• Smart beacons to track the in-store customer movement and deliver targeted product information/discounts
• AR-based in-store navigation features to allow shoppers easily find items within stores
• Seamless integration of brand websites and mobile apps for a complete digital experience
• Social commerce to create an interactive customer experience on networking websites
• Addition of vernacular languages to e-commerce platforms to widen customer accessibility
• Local language translation for consumers ordering online to boost regional commerce
• Automatic product customization based on AI/ML-based recommendation engine
• Virtual mirror/trial rooms/AI try-ons to enhance product selection experience in stores and on online channels

3. Seamless Purchase Experience

• Multi-nodal purchase options, such as click and collect, mobile Point of Sale (POS), and e-wallets/UPI payment
• Attractive omnichannel pricing strategy using AI-based precision marketing
• Self-checkout machines to help reduce wait time in stores
• Chatbots/mobile assistants/wearable tech to act as integrated touchpoints in an online purchase

4. Customer Retention and Loyalty

• Blockchain-based loyalty programs to enhance customer retention
• Bundling of services/products, automated discounted pricing, subscriptions offered to loyal customers​​​​​​

5. Supply Chain Management

• Integration of IoT/RFID/AI/robotics to make supply chain/logistic services more responsive
• Data-driven algorithms for real-time inventory management/store assessment planning
• Blockchain technology for contract management and supplier payments
   

Brick-and-mortar stores will continue to embrace digitization and dominate the retail channel in the country for consumers, shopping at their convenience will endure extraordinary growth in online sales in the future.