C&L October 2017_LR (5)

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Cover Story "If retailers wants to do business in this age, and wants to be profitable, they have to be on every channel." —Vineeth Purushotaman CIO, Fortis Healthcare and Former CIO, Bharti Retail kirana stores -- many of them saw the spike in the prices as an aftermath of demonetization. The fashion and apparel unit suffered because buying clothes wasn’t a priority for consumers at the time. Most major retailers had already understood the importance of bringing the convenience and interactivity of online commerce into the offline world thereby integrating digital wallet into their point-of-sale systems. For instance, Shoppers Stop launched its digital wallet in September 2015, Reliance Retail launched ‘JioMoney’ in May 2016, and Future Group launched FuturePay in October 2016. The penetration of mobile Internet and smartphones aggregate, mobile wallets, with their ease of use and convenience, as expected, have grown in popularity ever since. According to a report, digital transactions, trebled and quadrupled in volume and value across various modes from wallets to cards and interbank transfers from a year earlier. The mobile wallet industry is expected to maintain the pace of its current expansion with transaction volume expected to touch USD 32 billion by 2022 and the Offer customized offers based on totally secure personal preferences and information value of transactions is also expected to reach INR 32 trillion by 2021, growing at a rate of 126%. GST – The Great Leveller “GST will significantly impact the retail sector,” said Mishra. It will bring two major reforms in the retail sector. One is definitely the shift from unorganized to organized retail, and second is the improvement in margins. "The prevailing revenue neutral rate for apparel industry is 12-14%, and any rate set out by the new GST regime above it would have affected demand in the short-term as companies would pass on hikes to consumers, However, with the latest reports, rate for the branded apparels has been fixed at 12%, expected to have a neutral impact on the apparel industry. The GST would reduce competition from the unorganized sector and provide a level playing field to the organized branded players," said a Credit Analysis & Research Limited report. GST will be able to set-off the service tax paid on the rent as input tax credit against the taxes to be paid on the final revenue. According to Mathur at PwC, a fully compliant value-chain will be more profitable than a partcomplaint one. As a retailer if you buy something from a vendor and you will be able to check the value chain, you can negotiate the credits that are available in the entire chain. As a result, the pricing and procurement will be better. “That’s where the retailers will get a more levelplaying field,” added Mathur. Know Your Customer and Technology Shoppers Stop, with an annual turnover of USD 300 million, owned by K Raheja Corp Group is one of the oldest players in the organized retail business. The department store chain, owned 14 CIO&LEADER | October 2017
Cover Story by the K Raheja Corp Group, has over 83 stores across 38 cities in India. In 1991, it launched its first store in Mumbai, and since then it has made consistent efforts to introduce innovative schemes such as the loyalty programs which has garnered over 4.6 million First Citizen members and one million Shoppers Stop Mobile app download. The retailer believes it can use anonymized aggregate data to provide mapping, directions and personalized in-store promotions to customers in the coming months. The retail major is aiming to accelerate the digitization of its stores in-line with its omni-channel strategy by 2020. According to Anil Shankar, Customer Care Associate & Vice President - IT, Shoppers Stop, this is a result of a sustained effort that has gone in the last couple of years. We have put in unrelenting effort in a direction where things are moving. Shankar has closely observed the evolution of the Indian retail sector for over two decades. He said that there has been a consistent effort in terms of how customer segments are moving and how customer preferences have changed - we have to align their strategies internally and put tech into play. In organized retail, this change is happening. “In the last 2-3 years, retailers are looking at deploying a cross-channel strategy. We acknowledge the fact that they will need to be available to the customer on channels in which the customer is available,” added Shankar. Multichannel retailing has been helping India’s consumption story and increasing the share of organized retail in the total retail pie. According to Mathur, in the present scenario, omnichannel agenda coupled with the pressures of delivering superior customer experience and in the face of aggressive competition will put the onus on developing an operating model which is strategically aligned to business goals. As a retailer, you can't choose between e-commerce and brick and mortar today. According to Veneeth Purushotaman, CIO, Fortis Healthcare, “the decision to choose the channel lies with the consumer. However the choice of being the channel is obviously in the hands of the retailer. If a retailer wants to do business in this age, and wants to be profitable, they have to be on every channel.” In a career spanning over two decades, Purushotaman has led technology leadership roles across several retail mammoths, such as Shoppers Stop, HyperCity and Bharti Retail. “Retail is the most dynamic and fast growing industry. Today a lot of consolidation is already happening among online and offline players. A good offline retailer player could shake hands with an online player rather than going all out and creating an online presence,” he said. According to E&Y’s Mishra, the element of connecting with customers, creating engagement, and connecting with the brand is significant – "The time has come when the retail players re-align technology, value, and margins in order to become profitable." Provide an enhanced and consistent experience across all channels —Meheriar Patel Chief Information Officer, AGC Networks Ltd and Essar Retail October 2017 | CIO&LEADER 15
Page 1: INSIGHT Meet the global desi IT lea
Page 5 and 6: EDITORIAL Shyamanuja Das shyamanuja
Page 7 and 8: FEATURE 04-08 Are You Ready For A D
Page 9 and 10: Feature stringent regulations for t
Page 11 and 12: Feature ...Continued from Page 5 an
Page 13 and 14: 100 IT Decision makers with 10,000+
Page 15 and 16: Cover Story TAKING STOCK Organized
Page 17: Cover Story from every Indian state
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Page 23 and 24: Vishal Salvi, Infosys Interview thi
Page 25 and 26: Event Report Sunil Manglore, Managi
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Page 29 and 30: Book Review I t is ironic that in a
Page 31 and 32: Insight Mamatha Chamarthi Chief Dig
Page 33 and 34: Insight Rahul Samant SVP & CIO, Del
Page 35 and 36: Insight O Putting cloud first, lite
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Page 39 and 40: Insight G Companies are struggling
Page 41 and 42: Insight Another important driver fo
Page 43 and 44: Insight I out of 144 countries 108
Page 45 and 46: #TheBigPicture 52% of winners from

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