The Indian retail trade is predicted to pushed by data-led alternatives and synthetic intelligence, mentioned a joint report by trade physique Assocham and Primus Partners.
The altering shopper preferences is driving the necessity for the digitisation of shops, and elevated integration of micro, small and medium enterprises (MSMEs) throughout the worth chain will additional speed up the expansion of data-driven retail, it added.
“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,” mentioned Assocham-Primus Partners’ joint report.
The unorganised phase has dominated the Indian retail sector and in 2019, the phase commanded as a lot as 85 per cent of the market, show-casing the numerous potential for digitalisation.
“The Indian retail trade is predicted to remodel owing to technology-disruptions, pushed by artificial intelligence and data-led alternatives,” it mentioned.
Moreover, within the coming instances, the services that make folks extra impartial will witness a rise in demand.
“Items like washing machines and dishwashers would be in demand to reduce dependence on support staff for household chores. The heightened focus on hygiene will prompt consumers to be willing to pay for sanitation efforts in malls, cinema halls, etc,” the report mentioned.
The report, based mostly on inputs from trade consultants, well being professionals and drug regulators, famous a number of unfolding consumption patterns which principally level in the direction of security considerations, ease of residing at dwelling and workplaces even because the financial system has principally been opened.
The rising concern of an infection would drive shopper behaviour throughout segments, particularly the acquisition of meals commodities. It expects gross sales of packaged merchandise in meals and staples to develop although a big proportion continues to be offered free in segments as wheat, rice, pulses, spices and many others.
“However, in the coming days, branded food commodities are expected to witness an increased demand owing to the perception of quality, hygiene, safety standards and source credibility. Customer re-assurance on these parameters will help create a more robust organized segment for food products,” it mentioned.
With the reverse migration of staff to their villages from cities, a very good monsoon, an elevated authorities expenditure of 40,000 crore via the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) and public initiatives are possible to make sure “increased demand from rural India and an area for FMCG companies to focus on”.
(Only the headline and movie of this report might have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)