This document discusses the changing retail landscape driven by digital disruption. It notes that digital natives aged 18-24 do most mobile shopping. Retail is being transformed by mobile technology, social networks, and how consumers interact and make decisions. Stores are also evolving in their role. The premium in the future will be on creating unique offers that keep customers coming back. An increasingly digital world is creating empowered consumers and new business environments. Technologies like analytics, cloud, mobility, and social media are top priorities for CIOs. India's IT-BPM exports to retail are growing and analytics are increasingly important. Key investments are in consulting, CRM, supply chain management, and sales/marketing. Startups also provide opportunities for

1. R Chandrashekhar
President, NASSCOM
Consumer-Centricity
Digital as a Differentiator

2. Four rapid disruptions re-defining the global retail
industry…
“Digital natives” – the age group of 18-24
years - shopped the most via mobile
phones
Global
demographic shifts
Mobile phone
technology
How consumers interact, make decisions,
check information, check stock, find stores,
communicate
Proliferation of social
networks
Developing world: Part of the daily fabric of
shopping
Developed world: More communication tool
than shopping tool
Evolving role of the
store
Premium in the future will be on creating
unique, brand-defining offers that keep
customers coming back

3. Increasingly digital world creating empowered
consumers and new business environment
Influence on Product Design
Requirement Change
Shorten Lifecycle
Closer Interaction
Demographics & Reach

4. The concept of customer interaction is drastically
changing
Data Explosion
Where is all this data
coming from?
Should I be looking at
all this data?
What will I get from
this data?
What are my
competitors doing?
Social Media
Why aren’t we tweeting?
Let’s start a blog?
Should we be on
facebook?
Growth of
Channels
What are the new
channels and devices?
Should I be integrating
all the channels?
Is my customer on all
channels?
Shifting Consumer
Demographics
Can I Profile my
Customers

5. Faster time to market:
Faster release of products to the
market
Clarks’ 3D printing shoe prototypes on demand:
–Cut design/development cycle to weeks
(prototypes in few hours vs. 2–3 weeks)
–More models of higher quality in shorter time
–Release shoes earlier in the market
Enhanced user experience (UX):
Focus on customer experience
Volvo’s Roam Delivery service:
Via a smart phone app, car owners
can have online deliveries left in
vehicles or have returns collected
from them. Owners can track when
their vehicle has been opened and
locked
Personal shopping via Google+
Hangout video conferencing:
Users can ask for specific
clothes, book one-on-one video
sessions and purchase items
Technology enabling retailers retain their competitive
edge and stay relevant to their consumer base (1/2)
Digital experience
RFID tags prompt videos on
“magic mirrors” about product
features
>10% of all orders in flagship store
now placed using iPads

6. Augmented reality:
Virtual reality experience
Interactive Sofa Studio allows customization
and on-demand manufacture of sofas through
3D printing
Gives users something tangible to base their
purchase - improved retail experience
Automated delivery:
For last-mile delivery
Technology enabling retailers retain their competitive
edge and stay relevant to their consumer base (2/2)
Inventory accuracy to
97% in RFID pilot
– Self-driving cars delivering products to
customers
– Robotic drones delivering in 30 minutes
– DHL using PARCELCOPTERS – to deliver
medication and other urgent goods in
Germany
Automation technology:
Increased supply chain
productivity
Electronics shelf
labelling to automate
price changes and
save associate time
Automated scheduling
based on forecasted
demand to reduce costs
due to oversupply of labor

7. Digital disruption – Top Priorities For CIOs In 2015
A
• Social: Sales & marketing,
customer service and recruitment,
linking insights to R&D & design
• Mobility: Mobile POS/payments,
digital signage, context-aware tech
• Analytics/Big data: Descriptive &
predictive to prescriptive, cross
channel analytics
• Cloud: Balancing speed & agility
and privacy & security. Security
(privacy/protection), regulatory
(data retention within boundaries)
• Unified transaction platform:
Fully integrated systems and
pulling together business activities
like cross-channel order,
promotion, inventory, customer
data into one environment
• Data security: Need for speedier
cloud security system. Data
management and collaborative
services to help maintain customer
confidence. Innovation in prevention,
detection, remediation
• Enterprise security: Beyond
compliance with EMV (smart
payment cards) regulations to protect
consumer data collected at point-of-
sale; other potential cyber-attack
weakness like service provider
network links, mobile devices, email
• RFID: Track products from supply
chain to consumer
• 3D printing: “Just in time” supply
chain – lower cost of inventory,
transportation
• Build a single customer experience
• Understand CxOs: Partnerships
among IT, marketing, stores, and
others - change CIO’s role to being a
strategist
• Omni-channel: Integrating various
selling channels - see inventory
across channels in real time
• Need for speed: Strong governance
to measure strategic, tactical and
operation imperatives needs
• Up-skill staff:
oAlign ageing technology / skills
workforce with new-skills workforce
oAddress clients’ ageing technology
needs
•Modernize merchandising systems to
optimize assortment, pricing, inventory;
also support more frequent price
changes
SMAC technologies B Cyber Security C Ecosystem

8. India’s IT-BPM retail landscape - facts and trends (1/2)
India’s IT-BPM exports: Retail
USD billion
4.7
9.8
FY2010 FY2015
India Retail Market
• India: Ranks 15th on A T
Kearney’s 2015 Global
Retail Development IndexTM
• Market size: USD 1.3
trillion by 2020
• India: Good opportunity in
single-brand retail, cash-
and-carry, and eCommerce
CAGR
+15%
India IT-BPM exports: Retail
• 10% share in total IT-BPM
exports
• 2X growth in exports since
FY2010
• eTailing: Fastest growing e-
Commerce segment - USD
2.4 billion; >55% CAGR
since FY2010
TRENDS
• Indian IT-BPM firms’ niche capabilities - improve supply chain, operational efficiencies,
streamline/optimise store ops, manage merchandise, customer loyalty & build/manage multi-channel
capabilities
• Analytics: Merchandise & customer analytics, churn analytics, inventory mgmt, supply chain
optimisation, sales performance, market mix modeling, CRM, fraud detection and prevention

9. India’s IT-BPM retail landscape - facts and trends (1/2)
Key IT-BPM investments in retail
• Consulting/implementation:
Product/tech implementation, bid
data/analytics, custom application
development and maintenance,
process consulting
• CRM: Customer support, campaign
mgmt marketing/promotion, customer
insights/retention mgmt
• SCM: Demand/inventory planning /
forecasting, procurement & warehouse
• Transaction processing: Real-time
order processing mgmt, payment
processing, risk/data mgmt
• Sales & marketing: Channel selection,
merchandising, internet marketing,
sales campaign analytics, etc.
Case examples
Syntel’s Shopper Assist: A consumer
mobile app - Consumers can maintain
shopping lists, access to product
inventory, retailers can offer personalized
services - enhance customer loyalty and
engagement
Lenskart enables users to try and buy a
customized pair of glasses
Snapdeal launched its logistics platform,
“Safeship”, that offers an integrated
order fulfillment engine to sellers
Flipkart to use analytics to help SMEs
scale up business and target right
customers - help decide right selling
price, payment automation, proper
packaging, transportation, brand building

10. Over 500 eCommerce centric startups in India provide
opportunity for retail players to partner and expand market reach
~3,100 Start-ups
~2,000 Digital
~5,00 eCommerce
Indian Start-ups, 2014
eTailing/ Retail
Apparels, fashion & lifestyle,
mobile handsets & accessories,
electronics, etc
~200
eCommerce
enablers
~70
~50-60
~15-20
~50
Travel/ Ticketing
Ticketing services, hotels and
tour packages online
Classifieds
Offering classifieds space to advertise
product, job, matrimony sites, etc
Financial services
Online sale of insurance
related services, utility bill
payments, other transactions
Other online services
Online discounted deals,
coupons, search sites etc
Real time analytics
& trackingDelivery &
logistics
Mobile
payments
Mobile
advertising
Consumer
marketing
intelligence
Rise of the eTailers

11. THANK YOU
rc@nasscom.in