Indian Retail in a multi-channel world

Feb 27 2014

21st Century

Consumer

“Share-of-Watch leads to share of wallet”

The consumer is changing…..

Convenience Plays.

The consumer is changing….. RAI – PWC survey on “Total Retail” , Feb 2014N = 1000

The consumer is changing…..

Not just price. Range. “Endless Aisle”

RAI – PWC survey on “Total Retail” , Feb 2014N = 1000

47% of customers spoke about range as the main

reason to buy online. 51% mentioned price.

Retailers State of MindRetailers State of Mind

Source: Retail Operations Benchmarking Excellence Study, ROBES, 2014, RAI-TCS study

Multi-channel and customer experience are key 2014 priorities.

Brick and mortar retailers have found that their online cash memo size is 12% higher than in-store.

Source: Retail Operations Benchmarking Excellence Study, ROBES, 2014, RAI-TCS study

Ecommerce channels (non-store channel ) of brick and mortar retailers. Higher growth, higher cash memo size, lower returns.

Online returns of Brick and mortar retailers are <3% - significantly lower than pure-play Etailers.

Source: Retail Operations Benchmarking Excellence Study, ROBES, 2014, RAI-TCS study

Ecommerce channels (non-store channel ) of brick and mortar retailers. Higher growth, higher cash memo size, lower returns.

Harvesting benefits

from “TRUST”

Environmental triggers for Retail 3.0

Coping with a multi channel world

How do retailers cope with “Showrooming”?

• By accepting it as a fact of life. • There will be customers of the

market places who come to us for the service experience.

• We have found “Click and Collect” to be a viable solution.

Duncan Grant, Multichannel Director,

The Entertainer

We need to ask “What can I do that others can’t?”

Learnings from the UK Market.

Four facts about the UK market in terms of market maturity:

1. Every UK resident has a bank account

2. 76% of UK residents have smart phones

3. All families have a tablet

4. The courier / postal system covers most of UK.

In spite of that online sales at a market level is at 10%.

Online sales in the UK = ￡ 7 bn.

Things to think about : Purchase process

“Found it. Can you pay for it…?”

Multi channel can deliver new purchase paradigms.

Summary

Build on Trust. Create “Endless Aisles”

Increase “Share of watch”

Plan for Retail 3.0

Range / Quick Check-out of online PLUS Instant gratification of Brick and Mortar.

Puchaser Payor User

© Retailers Association of India

India retail snapshot Feb. 2014

“Build for Value, not Valuation” –

Kishore Biyani @ the Retail

Leadership Summit, Feb

2014.

Indian Retail in a multi-channel world

Feb 27 2014