Fast-moving consumer good (FMCG) companies and retailers in India are evolving at a rapid pace and facing major disruption in various parts of the value chain, according to a new study by global consulting major Deloitte and apex industry body FICCI.
The report sheds light on how the Indian consumer/shopper is evolving, how the shopper journey is changing today, and how the key decisions of the shopper (the What, When, Where, Why, Who, and the How) are evolving. These changes are driven by the rapid development of the retail environment from offline to online to omnichannel and thus, both the shoppers and channels are progressing independently and together, riding on the technology wave.
In this process, it has become critical for brands to be highly adaptive to cater to these changes, and keep abreast with the rapid evolution of trends and best practices in India and globally to be able to alter their strategies and meet the consumers’/shoppers’ expectations.
Followings are the key highlights of the report..
Significance of using voice of consumer (VoC) data to understand consumer needs: Brands using VoC data effectively are usually able to enhance their financial health and customer experience. Such companies are also able to have a higher retention rate. Interestingly, a lot of brands are using social listening to glean insights from social media channels, social forums, blogs, and product review sites with the help of technologies such as text analytics and artificial intelligence.
Rise of connected consumers and the need to use technology throughout the buying lifecycle: Companies will have to start using technology throughout the consumer lifecycle to engage with customers and perform engagement activities via traditional channels. Brands are realising the significance of using technology for customer engagement. They are using technology for various purposes, such as creating awareness about a brand via digital media, providing personalised promotions to consumers to increase purchases, using chat bots to provide after sales service, and creating an online platform to provide reward points.
Increasing focus on smaller towns and rural markets, and collaboration of traditional and modern retail: Saturation in metro markets presents an opportunity to tap the high potential and fast-growing semi-urban and rural segments. Given the increasing penetration of internet and digitisation of economy, kirana stores in rural India will soon place orders on mobile applications to replenish their inventory. However, this will take at least a decade to function smoothly.
Technology augmenting consumer experience Factors such as improved digital infrastructure, greater use of smartphones, and increasing number of start-ups in technology space is assisting in wider acceptance and greater implementation of modern technologies for commercial retail, especially with the evolved general trade.
E-wallets scaling up the payment ecosystem and handiness Greater degree of convenience, increasing internet penetration, greater smartphone usage and government support have led to the exponential growth of Unified Payment Instruments (UPI), especially m-wallets.