C&L October 2017_LR (5)

Cover Story
2,0 00
1,80 0
1,60 0
TOTAL MODERN RETAIL MARKET SIZE
MUMBAI METROPOLITAN REGION
NATIONAL C API TA L REGION
BENGALURU
CHENNAI
HYDERABAD
PUNE
TOP 6 URBAN CENTRES
1,718
Use predictive
analytics to
understand your
customer better
instead of post facto,” he added.
“Video analytics also has a huge potential in
retail stores and now retailers are using it to capture
customer trends, track traffic, catch shoplifters,
as well as reduce fraud.
INR billion
1,40 0
1,20 0
1,0 00
80 0
60 0
40 0
20 0
0
194
381
319
630
183
363
ligence that will drive business will come from
predictive analytics. “Data will continue to
become bigger. One of the problems that continue
to persist is the triviality with which we
handle KYC in retail stores. That activity has
to be given more seriousness. If the customer is
inside the store, what is the best way in which
you can invoke personalization, recognizition,
and reward the customer - instantaneously
61
119
43
86
TOTAL MODERN RETAIL MARKET SIZE IN 2016 (INR BN)
ESTIMATED MODERN RETAIL MARKET SIZE IN 2019 (INR BN)
Source: Knight Frank Research
72
141
871
The Future
According to Shankar, in many ways, businesses
are trying to bring up their play in all
channels - online and social - and prominently
stay available there.
“The disruption has been there, but whether
it will match up to the same level as their e-commerce
counterparts, through their online strategies,
will be a hope for the future,” he said.
Organized retailers have long focused their
business model innovations on aping the techniques
applied by their ecommerce counterparts.
To succeed, these tactics may not help in the
long run.
What Tata CLiQ has done in the last one year is
commendable. As its CEO puts it: We are attractive
for a brand-focused, quality-seeking audience
so that we can deliver a targeted phygital
marketplace.
Essentially, they are taking steps to carefully
carve a unique brand image via online, mobile
and social platforms, at the same time, making
use of their 149-year old brand heritage.
All other large Indian retailers have the same
advantage.
Small innovations and supply chain improvements
cannot differentiate an offline retailer. It needs
a structure for organizational change, a carefully
crafted cross-channel strategy that reflects what
customers want and where and when they want it.
Last but not least, the model requires a mechanism
for getting the most out of the technology, tools and
the vast ocean of big data that only is going to grow
larger every day. As for consumers, the more retailers
there are, the merrier they will be.
October 2017 | CIO&LEADER
17