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The fifth edition Retail India Summit and Expo (RISE) was successfully held at Pullman New Delhi Aerocity on December 6, 2022.
RISE, a definitive platform by Retailers Association of India (RAI), enables retailers find the right business partners and solutions across categories to help take their business to the next level. The event brought together exhibitors, sponsors and visitors operating in retail, design, marketing, visual merchandising, shopfitting, retail real estate, technology and internet retailing.
Some of the talking points at RISE 2022, included the growth of conversational commerce, the omnichannel experience, advances in supply chain management, new-age communication solutions, digital technologies that drive retail, achieving hyper personalisation and many others.
While speaking at the event Kumar Rajagopalan, CEO Retailers Association of India said that the future on retail meant that the industry had to follow the PAFE formula. PAFE, which is the acronym for Personalisation, Accuracy, Fast, and Everywhere is the mantra for the retail industry, and retailers who adapt to these parameters are the ones that will show results in the future. While giving an example of personalisation, Kumar Rajagopalan said, “We need to know our customer well. It doesn’t make sense sending a message advertising a diaper to a couple that has no children. It’s not going to add any value to them and they will look at you as spam,” he said.
While speaking about the industry, Rohit Kumar Singh, Cabinet Secretary, Ministry of Consumer Affairs, Government of India, added, “The Indian retail industry is estimated to be valued at $800 billion, and it will only continue to grow. The Honourable Prime Minister has also said that the next 25 years belong to India i.e., the period between 2022 and 2047 – or until we complete 100 years of independence. He has also stressed on the need to work as a team, and when he means team, he means all the people of India working together. By doing so, we will achieve where we want to reach by 2047.”
The Cabinet Secretary also added that the primary goal of retailers was to protect customer interests. “While studying at Harvard, I was taught the five Ps in business i.e. product, price, promotions, place, and people. However, when I work with the government, I realise that an additional P plays a key role and encapsulates the five Ps. This P is Protecting the Consumer, and this is paramount for any business to thrive.”
Understand your needs
While speaking at RISE, Lalit Agarwal, MD at V-Mart retail also stressed on the need to innovate and digitise. “We need to digitize process. This doesn’t include only consumer processes, but also backend ones. There is a need to automate and create a seamless agility process, as customers have started being more vocal about their demands. Once these processes are streamlined, then we ensure that customers are satisfied.
“There are plenty of opportunities for retail. But with these also come challenges. It has become more about merchandising product, and ensuring supply chain management. It’s also about the way you do your business. Today, we’re selling our brand, and not a single product. If we are to build brand better, then we need to create brand imaginary both online and offline that are independent of each other. We also need to prioritise the must haves and the good-to-haves. Once you prioritise, then you will reach your goals.
“None of this will, however, be achieved unless you train your employees. Learning and developing your employees is a win-win for both of you, as they will deliver output for the investment you’ve made on them,” he said.
While speaking in one of the panels, Amit Dutta, CEO of Le Marche Retail said that before the pandemic hit us, we had to only focus on an experience. “Today, we also have to focus on home delivery using tools such as WhatsApp, Zomato, and Swiggy. The customer may have evolved, but the retail employee has not. Retailers are required to outperforms and meet targets, while taking on competition. This balance will happen over time, but will not be an overnight phenomenon. However, the retailers who achieve this balance are the ones that will be able to quickly scale their business,” he said.
Notably, retailers face many internal challenges as they strive to keep up with the constantly evolving needs and preferences of their customers. Some of these challenges include:
Gunjan Shah, the CEO of Bata India said that although the company was the oldest international footwear brand in India, they still had many challenges. “We may have over 1,700 stores, a large network, and a Rs 1,000 crore turnover every quarter, but the fact is that aspirational India is constantly upgrading. It’s up to us on how fast we can catch up with these aspirations,” he said.
Vishal Kapil, the Chief Technology Officer at Marks & Spencer India added that companies need to be self-aware of what they can or can’t do. Once you know what you’re strengths are, build on it. However, if you focus on what you don’t know, then you’ll end up destroying what you’ve already built on.
Citing the example of India’s pin system, Kapil said that it enables them to build their inventory based on the geography. “India’s pin code structure enables us to target specific audiences depending on their likes and dislikes. For example: areas whose pin code from 11 to 19 usually live in the northern parts of India, so we know that we have to introduce our winterwear collection there,” he added.
Zahid Ansari of Forever New Clothing also added that while technology is needed, it isn’t the solution that addresses the problem. “We need to focus on what is convenient for the customer. Technology may or may not play a role, and therefore it’s critical that we understand the difference between multichannel and omnichannel.”
Several retailers also spoke on the importance of conversational commerce, and the value it brings for business. Conversational commerce refers to the use of chat, messaging, and other interactive communication channels to facilitate e-commerce transactions and customer interactions. In the retail industry, there are several advantages to using conversational commerce:
Overall, conversational commerce offers many advantages for retailers looking to improve customer service, increase sales, and build customer loyalty. By embracing this technology, retailers can stay ahead of the curve and better meet the needs of their customers in an increasingly competitive market.
Some of the retailers also spoke on the importance of data-driven communication, and the fact that you will disappoint your customers if you don’t participate in it. This is because data-driven communication has played a key role in several areas, including:
Apoorv Sen, the Chief Business Officer of Iconic Fashion India said that the pandemic has been a decade of learning for the retail industry. “Before the pandemic, the customer had to come to us. In a post-pandemic world, we have to take the store to the customer. At Iconic Fashion India, we created our own online business into three phases where enabled marketplaces, created our own dot comes, and enabled the processes to leverage business.”
The going back to basics paid off and today Iconic Fashion India boasts of a Rs 100 crore business online. “It is the way you run the business. From our data points we also saw that 35 per cent of the customers who make online purchases visit our store. Since we know their history, it becomes easier to understand their requirements when they visit us. In contrast, we barely got any footfalls when we’d spend money on billboards, hoardings or on newspaper ads. At the end of the day, the customer’s experience is all that counts, and our job is to ensure we personalise their retail experience,” he said.
Generation Z, also known as Gen Z, is the demographic cohort following the Millennials. Gen Z consumers have grown up in a world where environmental and social issues are front and centre, and many are increasingly concerned about the impact of their purchasing decisions on the environment and society. As a result, sustainable shopping has become an important consideration for many Gen Z consumers.
Sustainable shopping refers to the practice of purchasing products and services that are environmentally and socially responsible, and that minimize negative impacts on the planet and its inhabitants. This can include buying products that are made with sustainable materials, produced using environmentally friendly manufacturing processes, or that support social and environmental causes.
Gen Z consumers are more likely than older generations to prioritize sustainable shopping, with many willing to pay a premium for products that meet their sustainability criteria. Retailers and brands that can demonstrate their commitment to sustainability and offer products that align with Gen Z values are likely to see increased demand and customer loyalty from this demographic.
In addition to prioritizing sustainable products, Gen Z consumers are also more likely to engage in sustainable shopping behaviours, such as buying second-hand or vintage items, repairing or upcycling products, and participating in circular economy models like renting or sharing products.
Overall, sustainable shopping is an important consideration for Gen Z consumers, and retailers and brands that can meet the sustainability needs and values of this demographic are likely to see increased demand and customer loyalty.
Rochita Dey of Sreeleathers acknowledged the role of the Gen Z generation. “Social media and access to communication have become more relevant. Gen z is conscious about trends. So we can’t make decisions based out of boardrooms, but rather speak to customers as you are answerable to them,” she said, while talking about how Sreeleathers has avoided the excess use of technology while addressing the future of retail.
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