Data-led opportunities and artificial intelligence (AI) are likely to drive the Indian retail industry, according to a joint report by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Primus Partners. Changing consumer preferences are driving store digitisation and increased integration of micro, small and medium enterprises (MSMEs) across the value chain will further accelerate the growth of data-driven retail, it said.
“The role of offline stores is likely to change, focusing on experience and collection. Consumers, to avoid crowds, would prefer to ‘buy and pay online, maybe pick-up in-store’, as a way of stepping out of their homes,” said the report.
The unorganised segment has dominated the Indian retail sector and in 2019, the segment commanded as much as 85 per cent of the market, show-casing the significant potential for digitalisation.
Moreover, in the coming times, the products and services that make people more independent will witness an increase in demand, a news agency reported citing the document.
The report, based on inputs from industry experts, health professionals and drug regulators, noted several unfolding consumption patterns which mostly point towards safety concerns, ease of living at home and workplaces even as the economy has mostly been opened. The rising fear of infection would drive consumer behaviour across segments, especially the purchase of food commodities.
With the reverse migration of workers to their villages from cities, a good monsoon, an increased government expenditure of 40,000 crore through the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) and public projects are likely to ensure ‘increased demand from rural India and an area for FMCG companies to focus on’, the report added.
Fibre2Fashion News Desk (DS)
Data-led opportunities and artificial intelligence are likely to drive the Indian retail industry, according to a report by ASSOCHAM and Primus Partners.Changing consumer preferences are driving store digitisation and increased integration of micro, small and medium enterprises across the value chain will accelerate the growth of data-driven retail, it said.