Indian retail is expected to reach $990 billion by 2020, with organized retail making up only 16%. Online retail is growing and expected to reach 18% penetration in the next decade. However, offline retail will remain important due to preferences for instant ownership and trust in physical stores. Many customers now engage with both online and offline channels before purchasing. Retailers need to transition from single channel to multichannel and omnichannel approaches to integrate the customer experience across channels and realize full potential. Omnichannel provides benefits like acquiring new customers, delivering personalized experiences, offering consistent products, and providing a 360-degree view of customers. Some major Indian retailers like Adidas, Shoppers Stop, Soch, and Lensk
Ground Zero 4.0 | Scaling Up - Event ReportRedSeer
Executive Summary
The report is compiled of all the topics that were discussed at Ground Zero 4.0 and has been
segregated based on RedSeer’s research and panel inputs.
Key Findings:
1. Digital India
2. Retail
3. D2C
4. Education
5. Healthcare
6. Grocery
7. Etailing
There has been a sudden switch in the buying and selling pattern of the customers in all over India, which created the growth of e-commerce industry. This switch can also be noticed in the automobile industry. The online penetration of auto sector in the world market is approx. 0.7% in 2019. It was challenging for automobile ecommerce industry to make it successful in India, but eminent players of India have made it possible. To learn the possibilities and success of auto ecommerce industry go through this document.
Indian grocery traditionally has been a primarily unorganized market, wherein more than 90% of the market is driven by traditional ‘kirana stores. However, in the past decade or so, organized brick & mortar and online channels have gained prominence. Online grocery has been boosted by covid-19 related tailwinds, with the GMV run-rates of major players growing by 70%+ during the period. This has led to an increased focus on the sector by large conglomerates as well as mature online players.
During Covid, while there were some challenges in the initial days of the lockdown, the segment has grown significantly. Most notably, fresh vegetables and fruits have seen 144% growth, while FMCG products grew 150%. While a lot of this growth will normalize to some extent as the COVID situation subsides, a significant portion of new users will persist and drive growth.
With the increasing demand and competition, it becomes imperative for brands to stay ahead by making data-driven decisions. In order to equip the brands to win in the online space, BigBasket Brand Intelligence and RedSeer have partnered to author this report. The idea here is to combine high-quality RedSeer IP on broader trends in the sector and BigBasket’s grocery expertise to create a ready-reckoner for brands, as they make strategic, product or channel-related decisions.
This report is an abridged version of the larger report which can be subscribed as per need. Besides the key trends of the sector, customer insights etc., this report deep dives on key categories such as Snacks & Packaged Foods, Beverages, Personal Care and Home Utilities, we present the quarterly growth in sales in the past 5 quarters with various sub-category splits.
1. Online skill-based real-money gaming market in India is estimated to grow to become ~$3.8 Bn1 by 2024 speed of growing smartphone penetration, low cost of data and vast digital payment infrastructure allowing individuals access to instant real-time inter-bank transactions.
2. Introduced to Indian market in early 2010 and pioneered by Dream11, Fantasy sports contributed ~ 30% of the RMG market in 2019. Fantasy sports market has witnessed exponential growth in recent years fuelled by increasing user base, high engagement and increasing investor interest and is expected to grow by ~60% till 2024.
3. Casual online real-gaming market contributed ~70% of the total RMG market in 2019. However, it is expected to grow relatively slower at ~35% when compared to fantasy sports.
4. Driven by high growth opportunity in RMG market, horizontal players have started foraying in the segment. In 2019, Paytm entered the casual gaming space with Paytm First Games.
eCommerce platforms shipped ~2.5 billion shipments in
FY2020 growing at ~50%+ CAGR in the last 3 years. However,
we expect shipment volume to grow at ~30-35% CAGR for next
5 years.
Some of the key drivers of growth for eCommerce are the
latent demand in Tier-2+ cities, enablement of logistics
networks, infrastructure built by eCommerce platforms (large
horizontals), and new age third-party logistics players in
the last 3-4 years. The investment in logistics networks and
infrastructure has enabled eCommerce platforms to reach
online shoppers beyond metro and tier-1 cities to hinterland in
the country
Spend on hotels in international market observed higher drop compared to domestic market due to COVID led travel restrictions. We expect the recovery for international markets to take longer compared to domestic markets given the uncertainty around the travel requirements (due to COVID).
eCommerce platforms shipped ~2.5 billion shipments in
FY2020 growing at ~50%+ CAGR in the last 3 years. However,
we expect shipment volume to grow at ~30-35% CAGR for next
5 years.
Some of the key drivers of growth for eCommerce are the
latent demand in Tier-2+ cities, enablement of logistics
networks, infrastructure built by eCommerce platforms (large
horizontals), and new age third-party logistics players in
the last 3-4 years. The investment in logistics networks and
infrastructure has enabled eCommerce platforms to reach
online shoppers beyond metro and tier-1 cities to hinterland in
the country
Indian E-Grocery: A Promising Opportunity Led By Value-First UsersRedSeer
The ~$600 Bn grocery industry in India is undergoing
a similar disruption enabled by eGrocery platforms,
that have done a tremendous job in transforming how
people shop for their groceries. While these platforms
have solved for a number of consumer needs ranging
from improved access to higher convenience, the largest
challenge still faced by an average Indian is around
affordability and eGrocery platforms have the potential to
effectively resolve this aspect.
Ground Zero 4.0 | Scaling Up - Event ReportRedSeer
Executive Summary
The report is compiled of all the topics that were discussed at Ground Zero 4.0 and has been
segregated based on RedSeer’s research and panel inputs.
Key Findings:
1. Digital India
2. Retail
3. D2C
4. Education
5. Healthcare
6. Grocery
7. Etailing
There has been a sudden switch in the buying and selling pattern of the customers in all over India, which created the growth of e-commerce industry. This switch can also be noticed in the automobile industry. The online penetration of auto sector in the world market is approx. 0.7% in 2019. It was challenging for automobile ecommerce industry to make it successful in India, but eminent players of India have made it possible. To learn the possibilities and success of auto ecommerce industry go through this document.
Indian grocery traditionally has been a primarily unorganized market, wherein more than 90% of the market is driven by traditional ‘kirana stores. However, in the past decade or so, organized brick & mortar and online channels have gained prominence. Online grocery has been boosted by covid-19 related tailwinds, with the GMV run-rates of major players growing by 70%+ during the period. This has led to an increased focus on the sector by large conglomerates as well as mature online players.
During Covid, while there were some challenges in the initial days of the lockdown, the segment has grown significantly. Most notably, fresh vegetables and fruits have seen 144% growth, while FMCG products grew 150%. While a lot of this growth will normalize to some extent as the COVID situation subsides, a significant portion of new users will persist and drive growth.
With the increasing demand and competition, it becomes imperative for brands to stay ahead by making data-driven decisions. In order to equip the brands to win in the online space, BigBasket Brand Intelligence and RedSeer have partnered to author this report. The idea here is to combine high-quality RedSeer IP on broader trends in the sector and BigBasket’s grocery expertise to create a ready-reckoner for brands, as they make strategic, product or channel-related decisions.
This report is an abridged version of the larger report which can be subscribed as per need. Besides the key trends of the sector, customer insights etc., this report deep dives on key categories such as Snacks & Packaged Foods, Beverages, Personal Care and Home Utilities, we present the quarterly growth in sales in the past 5 quarters with various sub-category splits.
1. Online skill-based real-money gaming market in India is estimated to grow to become ~$3.8 Bn1 by 2024 speed of growing smartphone penetration, low cost of data and vast digital payment infrastructure allowing individuals access to instant real-time inter-bank transactions.
2. Introduced to Indian market in early 2010 and pioneered by Dream11, Fantasy sports contributed ~ 30% of the RMG market in 2019. Fantasy sports market has witnessed exponential growth in recent years fuelled by increasing user base, high engagement and increasing investor interest and is expected to grow by ~60% till 2024.
3. Casual online real-gaming market contributed ~70% of the total RMG market in 2019. However, it is expected to grow relatively slower at ~35% when compared to fantasy sports.
4. Driven by high growth opportunity in RMG market, horizontal players have started foraying in the segment. In 2019, Paytm entered the casual gaming space with Paytm First Games.
eCommerce platforms shipped ~2.5 billion shipments in
FY2020 growing at ~50%+ CAGR in the last 3 years. However,
we expect shipment volume to grow at ~30-35% CAGR for next
5 years.
Some of the key drivers of growth for eCommerce are the
latent demand in Tier-2+ cities, enablement of logistics
networks, infrastructure built by eCommerce platforms (large
horizontals), and new age third-party logistics players in
the last 3-4 years. The investment in logistics networks and
infrastructure has enabled eCommerce platforms to reach
online shoppers beyond metro and tier-1 cities to hinterland in
the country
Spend on hotels in international market observed higher drop compared to domestic market due to COVID led travel restrictions. We expect the recovery for international markets to take longer compared to domestic markets given the uncertainty around the travel requirements (due to COVID).
eCommerce platforms shipped ~2.5 billion shipments in
FY2020 growing at ~50%+ CAGR in the last 3 years. However,
we expect shipment volume to grow at ~30-35% CAGR for next
5 years.
Some of the key drivers of growth for eCommerce are the
latent demand in Tier-2+ cities, enablement of logistics
networks, infrastructure built by eCommerce platforms (large
horizontals), and new age third-party logistics players in
the last 3-4 years. The investment in logistics networks and
infrastructure has enabled eCommerce platforms to reach
online shoppers beyond metro and tier-1 cities to hinterland in
the country
Indian E-Grocery: A Promising Opportunity Led By Value-First UsersRedSeer
The ~$600 Bn grocery industry in India is undergoing
a similar disruption enabled by eGrocery platforms,
that have done a tremendous job in transforming how
people shop for their groceries. While these platforms
have solved for a number of consumer needs ranging
from improved access to higher convenience, the largest
challenge still faced by an average Indian is around
affordability and eGrocery platforms have the potential to
effectively resolve this aspect.
The $500 Mn Potential Indian Smartphone Insurance Market, But Are The Custome...RedSeer
With a 1.3 billion population, India showcases a humongous
market for smartphones. On an average, an Indian spends
1/3 of their total awake time on their phones. Driven by rapid
digitization and expanding internet accessibility, smartphones
have become a necessity and have already landed in the
hands of 550 million Indians.
Funded by large global investors, the e-tailing market in India is growing exponentially. Going forward, what are the megatrends likely to emerge in this market?
Indian Female Innerwear’s $12 Billion OpportunityRedSeer
India currently stands at quite an interesting juncture of consumption. It consists of a majority of young populace who are mainly driving the growth of income per capita and consumption. India’s GNI (Gross National Income) per capita was US$ 2,120 in 2019 which is lower than the US (US$ 65,850) and China (US$ 10,410). However, India’s GNI per capita is expected to grow at 7% between 2019 and 2025, which is faster than US’ and China’s expected growth rates between 2019 and 2025 at 2.9% and 6.1% respectively.
Kantar annual trends share insights on how the consumers are preparing themselves with the brewing challenges, obstacles, and opportunities as we move forward in 2022.
Gated community $ 500B consumption story in 2026RedSeer
1.4 Bn Indian population translates to ~310 Mn Households pan India. Out of this, top-50 cities, by population, have 50Mn households (~16%) expected to grow by 2.5% CAGR to reach 63Mn by 2031. In the top-50 cities, 16 Mn households (~32% of overall households in top-50 cities) reside in the gated communities. This is expected to grow by ~7% CAGR in the next 10 years to reach 32 Mn Households in 2031- contributing to ~50% of households in top-50 cities.
Flipkart-Walmart deal has been a landmark moment in the history of e-tailing. Since its humble beginnings in 2000, e-tailing has come a long way. The growth story of the industry in the last 10 years has been nothing less than remarkable. While the growth had slowed down between 2014-2016 due to multiple factors like DIPP regulations and demonetization, 2017 has seen a turnaround for the industry.
40% Of TikTok’s India Market Captured By Homegrown AppsRedSeer
Increase in smartphone sales driven by a rising middle class, more digitalization through tech advancements such as 5G, etc. Shorter attention spans of Millennials and GenZ, Increased visibility for creators, need for entertainment, Vast vernacular libraries. Short curated videos to be the primary source of entertainment (acting as fillers during breaks between daily tasks), Social community through short-form to aid in enhancing retention. High stickiness because of the wide array of content ( Challenges, hashtags, etc), monetization opportunities will aid in enhancing stickiness. Enhanced tech engine ensures better personalization and content moderation, leading to increased daily engagement.
Key themes in this section:
1. Moats for the winning play Based on learnings from global successful models, we have created a capability framework for identifying ‘emerging winners’ with proven capabilities
2. Experience on ‘emerging winners’
platforms Basis deep research on multiple aspects including personalization, user feedback and creator feedback- we have created a nuanced view of current experience on the platforms
As one of the fastest growing e-commerce models, RedSeer latest report highlights quick commerce platforms such as Swiggy's Instamart, Dunzo, and more.
Spend on hotels in international market observed higher drop compared to domestic market due to COVID led travel restrictions. We expect the recovery for international markets to take longer compared to domestic markets given the uncertainty around the travel requirements (due to COVID).
Size of Indonesia’s on demand services TAM by 2025. Indonesia’s share to rise to 41% by 2025E. Relatively high share of SEA pie expected to remain across Mobility, Food delivery and Logistics services.
Trends in eCommerce in India - Powered by Hoppingo.comHoppingo
Year 2014 has been very promising in terms of new eCommerce companies getting established, companies getting huge investments from investors like Tiger Global, Soft Bank etc. Billion has become new million, when it comes to investment in this sector and e-commerce became one of the most sought after investment choice.
We, at Hoppingo, have listed some of the trends that are hitting eCommerce in 2015.
Do let us know if you think differently!
Flipkart : Strategies for an Industry Top-dog in the E-commerce space Suhasini Jain
The presentation was created for an industry leader : Flipkart and how it can retain its position in the market with respect to its competitors using a few basic strategies .
The $500 Mn Potential Indian Smartphone Insurance Market, But Are The Custome...RedSeer
With a 1.3 billion population, India showcases a humongous
market for smartphones. On an average, an Indian spends
1/3 of their total awake time on their phones. Driven by rapid
digitization and expanding internet accessibility, smartphones
have become a necessity and have already landed in the
hands of 550 million Indians.
Funded by large global investors, the e-tailing market in India is growing exponentially. Going forward, what are the megatrends likely to emerge in this market?
Indian Female Innerwear’s $12 Billion OpportunityRedSeer
India currently stands at quite an interesting juncture of consumption. It consists of a majority of young populace who are mainly driving the growth of income per capita and consumption. India’s GNI (Gross National Income) per capita was US$ 2,120 in 2019 which is lower than the US (US$ 65,850) and China (US$ 10,410). However, India’s GNI per capita is expected to grow at 7% between 2019 and 2025, which is faster than US’ and China’s expected growth rates between 2019 and 2025 at 2.9% and 6.1% respectively.
Kantar annual trends share insights on how the consumers are preparing themselves with the brewing challenges, obstacles, and opportunities as we move forward in 2022.
Gated community $ 500B consumption story in 2026RedSeer
1.4 Bn Indian population translates to ~310 Mn Households pan India. Out of this, top-50 cities, by population, have 50Mn households (~16%) expected to grow by 2.5% CAGR to reach 63Mn by 2031. In the top-50 cities, 16 Mn households (~32% of overall households in top-50 cities) reside in the gated communities. This is expected to grow by ~7% CAGR in the next 10 years to reach 32 Mn Households in 2031- contributing to ~50% of households in top-50 cities.
Flipkart-Walmart deal has been a landmark moment in the history of e-tailing. Since its humble beginnings in 2000, e-tailing has come a long way. The growth story of the industry in the last 10 years has been nothing less than remarkable. While the growth had slowed down between 2014-2016 due to multiple factors like DIPP regulations and demonetization, 2017 has seen a turnaround for the industry.
40% Of TikTok’s India Market Captured By Homegrown AppsRedSeer
Increase in smartphone sales driven by a rising middle class, more digitalization through tech advancements such as 5G, etc. Shorter attention spans of Millennials and GenZ, Increased visibility for creators, need for entertainment, Vast vernacular libraries. Short curated videos to be the primary source of entertainment (acting as fillers during breaks between daily tasks), Social community through short-form to aid in enhancing retention. High stickiness because of the wide array of content ( Challenges, hashtags, etc), monetization opportunities will aid in enhancing stickiness. Enhanced tech engine ensures better personalization and content moderation, leading to increased daily engagement.
Key themes in this section:
1. Moats for the winning play Based on learnings from global successful models, we have created a capability framework for identifying ‘emerging winners’ with proven capabilities
2. Experience on ‘emerging winners’
platforms Basis deep research on multiple aspects including personalization, user feedback and creator feedback- we have created a nuanced view of current experience on the platforms
As one of the fastest growing e-commerce models, RedSeer latest report highlights quick commerce platforms such as Swiggy's Instamart, Dunzo, and more.
Spend on hotels in international market observed higher drop compared to domestic market due to COVID led travel restrictions. We expect the recovery for international markets to take longer compared to domestic markets given the uncertainty around the travel requirements (due to COVID).
Size of Indonesia’s on demand services TAM by 2025. Indonesia’s share to rise to 41% by 2025E. Relatively high share of SEA pie expected to remain across Mobility, Food delivery and Logistics services.
Trends in eCommerce in India - Powered by Hoppingo.comHoppingo
Year 2014 has been very promising in terms of new eCommerce companies getting established, companies getting huge investments from investors like Tiger Global, Soft Bank etc. Billion has become new million, when it comes to investment in this sector and e-commerce became one of the most sought after investment choice.
We, at Hoppingo, have listed some of the trends that are hitting eCommerce in 2015.
Do let us know if you think differently!
Flipkart : Strategies for an Industry Top-dog in the E-commerce space Suhasini Jain
The presentation was created for an industry leader : Flipkart and how it can retain its position in the market with respect to its competitors using a few basic strategies .
Why brick and mortar apparel retailers need to hit India’s e-retail hotspotsKanvic Consulting
Across regions, states and cities, Indian consumers are increasingly turning towards the Internet to shop for apparel. As the e-retail fever spreads to new geographies, building strength in digital channels will become an imperative for apparel retailers to both secure and expand their customer base.
This report informs companies about the current and future prospects of these nascent ʻClick and Dialʼ distribution channels. Furthermore, it presents Kanvicʼs perspective on
their expected development and highlights the major opportunities for companies to prosper in this market space, by adapting their strategy to the specifics of the Indian consumer market.
The growth of online shopping and the surge of off-price retailing are reshaping the retail industry. In 2016, retailers who want to survive will have to respond by restructuring their businesses. This POV captures some of the major Retail lessons learnt from 2015 and forecast for the year 2016 and beyond.
The Impact of Artificial Intelligence and Digital Disruption on the Supply ChainJason Prescott
Global industry veteran Jeff Streader discusses a critical component for success in today’s digital world and how this effects the modern supply chain. He shares his view on successful strategies and tactics that brands and retailers along with their supplier/ partners, need to understand and collaborate together. Jeff emphasizes the magnitude of understanding today’s digital consumer and how the Design Chain and Supply Chain, will work on the near future in a data-driven end-to-end value chain.
A Wake Up Call - By Prof Swapna Pradhan, WelingkarUday Salunkhe
Traditional brick-and-mortar stores should revisit their business models keeping the customer at the core, in order to stay relevant. This year, my pre-Diwali shopping turned out to be a pleasant experience— considering that I did not have to wait in a long queue at the billing counter. I was in and out of a popular national department store in an upmarket Mumbai suburb in less than 45 minutes.
New channel distributions unlock retail indiaeTailing India
New retail channels are neutralizing the traditional advantage that distribution offered and are providing opportunities for innovative brands to emerge.
Global Retail Market Analysis, focusing on the US, the latest trends, drivers, and the Impact of Covid on the future trend. Also, the report has a brief analysis of the key players of the Industry. What has worked for them? Did a detailed analysis on Costco Wholesale
This 7-second Brain Wave Ritual Attracts Money To You.!nirahealhty
Discover the power of a simple 7-second brain wave ritual that can attract wealth and abundance into your life. By tapping into specific brain frequencies, this technique helps you manifest financial success effortlessly. Ready to transform your financial future? Try this powerful ritual and start attracting money today!
ER(Entity Relationship) Diagram for online shopping - TAEHimani415946
https://bit.ly/3KACoyV
The ER diagram for the project is the foundation for the building of the database of the project. The properties, datatypes, and attributes are defined by the ER diagram.
Multi-cluster Kubernetes Networking- Patterns, Projects and GuidelinesSanjeev Rampal
Talk presented at Kubernetes Community Day, New York, May 2024.
Technical summary of Multi-Cluster Kubernetes Networking architectures with focus on 4 key topics.
1) Key patterns for Multi-cluster architectures
2) Architectural comparison of several OSS/ CNCF projects to address these patterns
3) Evolution trends for the APIs of these projects
4) Some design recommendations & guidelines for adopting/ deploying these solutions.
1.Wireless Communication System_Wireless communication is a broad term that i...JeyaPerumal1
Wireless communication involves the transmission of information over a distance without the help of wires, cables or any other forms of electrical conductors.
Wireless communication is a broad term that incorporates all procedures and forms of connecting and communicating between two or more devices using a wireless signal through wireless communication technologies and devices.
Features of Wireless Communication
The evolution of wireless technology has brought many advancements with its effective features.
The transmitted distance can be anywhere between a few meters (for example, a television's remote control) and thousands of kilometers (for example, radio communication).
Wireless communication can be used for cellular telephony, wireless access to the internet, wireless home networking, and so on.
2. CONTENTS
1. Synopsis..........................................................................................................................1
2. Organized Retail Penetration in India ........................................................................2
3. Growing Influence of Online Retail in India...............................................................3
4. Going digital is mandatory ..........................................................................................5
5. Need for Transition from Single Channel to Multichannel and finally
Omnichannel ......................................................................................................................6
6. Benefits to the Brands/Retailers conferred by Omni Channel Approach...............7
7. Benefits to the Customer conferred by Omni Channel Approach.........................12
8. Indian Retailers with Omnichannel Footprints ........................................................14
3. 1
1. Synopsis
Indian retail market is expected to be sized at USD 990 Bn by 2020 with rural population constituting about
48 per cent of it. Out of this USD 990 Bn market, mere 16.2 per cent is organized which takes 4.6 per cent
of its share from online retail.
Currently, 50% of the retail market is in rural India, which faces a broken supply chain and a paucity of
purchase options. Even, some of the most popular Indian retailers don’t have a presence beyond top 300-
350 cities. Which opens-up the latent demand of rural India to be captured by channels other than offline.
Online is expected to be an important factor due to limited organized retail penetration and limited supply
in Tier 2+ cities. Online retail penetration is expected to reach 18 per cent in the next 10 years. But the
offline retail is still expected to be a formidable force because of the customer preference of instant
ownership and a strong sense of trust in offline channel.
Even in cities where organized retail is well penetrated, a clear majority of urban customers interacting with
both offline and online channel before making a purchase, which underscores the need for offline retailers
to have a good digital presence.
Comprehensive digital presence brings them to the multichannel stage, which is a major step towards
customer acquisition and higher brand visibility, but both the channels work in silos. To kill these silos and
reach the full potential; brands need to continue their journey to omnichannel retail by seamlessly
integrating their customer experience, inventory and backend processes.
Some of the major Indian retailers have already realized these benefits and have started taking steps in the
right direction, but omni transformation has proved out to be a difficult process for a lot of brands and
retailers, with limited options of enabling partners in Indian ecosystem it becomes even more difficult
4. 2
2. Organized Retail Penetration in India
Indian retail market stands tall at USD 710 Bn as of 2017 and is expected to grow up to USD 990 Bn by
2020. 70 per cent rural population is responsible for almost half of the total demand while the rest of it
comes from the urban population. Demand from the rural population is expected to grow in the coming
years.
Organized retail penetration is mere 11.8 per cent and is expected to reach 16.8 per cent by 2020. Offline
retail is a major contributor to the organized retail sector, however online retail penetration has started to
pick up the pace.
5. 3
However, the supply from organized retail is limited and fragmented. Some of the most popular retail brands
also have their presence limited to the top 300 cities in India. Therefore, they have not been able to cater
to the major segment of the Indian population. There is an urgent need to expand operations, especially in
Tier 2+ cities to bridge the supply gap.
3. Growing Influence of Online Retail in India
Due to growing demand, especially in Tier 2+ cities, online retail is expected to be an important influence
in Indian retail. Tier 2+ cities are expected to become the highest contributor to the online retail sector in
India.
6. 4
Customer side levers such as ubiquitous internet, affordable smartphones and barrage of free information
are encouraging more and more customers to try online channels. In China, a similar market like India, the
online penetration has reached ~18% of the overall retail turnover. Indian retail penetration is expected to
follow a similar trajectory because of the following reasons:
Rising Disposable
Income
Social Media Influence Increased Adoption
of Products
Latent Demand
Fulfilment
Acceptance of
aspirational categories
as functional ones
Entry of International
Brands that command
high ticket price
1 2 3
456
7. 5
There is a huge disparity between the categories of products when it comes to online retail penetration.
Some categories such as smartphones have matured significantly due to increased adoption while others
such as FMCG are far from reaching their full potential.
4. Going digital is mandatory
Despite the increasing demand, limited reach of organized offline retail and increasing online retail
penetration, offline retail will continue to be the major channel for retail in India. A clear majority of customers
feel a strong sense of trust in offline retailers due to face-to-face interactions and the touch-and-feel
component. Customers are habitual of instant ownership which lags in online retail. For size-categories and
certain non-size categories, product trials are still key to product discovery and purchase decisions.
Realizing the importance of offline channel, several online players have started testing the offline waters.
These players come with a wealth of user behavior information such as Customer Personas, Buying Funnel
and Digital Touchpoints. Once available offline these players become the preferred choice for their online
ease and new-found offline trust. Hence offline players must go digital save their current pie and to acquire
new digital customer. Digital channel imparts 3-5X benefits to offline players, not only by generating sales
but also by trapping customers in the brand/retailer ecosystem and hence plugging the offline revenue
leakage.
8. 6
5. Need for Transition from Single Channel to Multichannel and finally
Omnichannel
73% of the urban customers interact with both online as well as offline channel before making a purchase.
Customers have come to demand online ease with offline trust from the brands and retailers and expect a
seamless experience in both the channels. A combination of one or more of these factors has irreversibly
changed the shape of customer buying funnel. It is no longer linear and in fact, it is so dynamic that
companies should not assume anything other than the fact that it has a customer at the centre of it.
Major international retailers have started to realize the importance of adopting a multichannel approach to
retail to fulfil growing consumer demand. Recently, Amazon has acquired offline chain, Whole Foods, for
gaining offline footprint; while Walmart has acquired online portals like Flipkart and Bonobos to gain online
might. Majority of Indian retailers operate through a single channel. However, the Indian retail market is
more than ready for a multichannel experience. A few of the offline retailers to step into online retail have
been able to significantly broaden their customer base. Similarly, online players to step into brick and mortar
retail have been able to boost their sales by in-store product trials. The opportunity to operate through more
than one channel in the Indian market comes with a significant value proposition.
A multichannel approach to retail is a major step towards acquiring more customers, boosting brand visibility
and understanding consumer behaviour however it does not let the brand realize the full potential of
operating through both online and offline channels. It focuses on customer delight features in store and
online but in silos.
A typical digital journey starts from a single channel and transforms to multichannel before becoming truly
omnichannel. Each stage offers incremental benefits till the full potential is reached by adopting
omnichannel stage.
9. 7
6. Benefits to the Brands/Retailers conferred by Omni Channel Approach
a Acquire new customers
and deepen loyalty
CRM data, online customer data and loyalty program
data helps brands:
• In opening stores where the demand is high
• Acquiring new customers across platforms
• Deepen loyalty by serving the customer with offline
trust and online ease
Omnichannel approach helped one of the early entrants in omnichannel retail
in the US acquire loyal customer at faster pace with improved contribution
10. 8
b
Delivering a personalized
experience across all
channels
Brands should personalize their offerings and
services with the help of advanced analytics:
• Customers should be offered bits of advice and
service suggestion on the basis of past purchase
history and online browsing patterns
Ulta delivering a personalized experience through omni channel approach
11. 9
c
d
Offer relevant, innovative,
and often exclusive
products
Grow stores and e-commerce
to reach and serve more
customers
Brands should provide relevant and exclusive products
in the stores and online by using cross-channel insights:
• Integrated data across online and offline channels
help the brand create a unified customer profile for
cross-channel personalization
• In-store associates can provide better in-person
service with access to shopper’s online profile
• Insight generation across channels can pave the way
for personalized recommendations and offerings to
customers
• Successful omnichannel analytics can help brands
achieve ~70% of sales from ~25% most famous
products
360o view of the sales can help brands find their
demand centre and let them open stores and dark stores
at the most relevant locations:
• Online sales can help brand pin-point the location of
their next stores and dark houses
12. 10
e One single view of
synced inventory
Omnichannel allows a single view of synced
inventory
• Once stores and e-commerce business share the
same inventory, it results in min stock-outs and
same product exposure at both the touch points
Growth in offline channel has been driven by store expansion and consistent store sales growth
even after the launch of online platform for one of the largest BPC retailers in the US
13. 11
f 360o
Customer View Omnichannel allows 360o customer view:
• Online customer browsing data, offline transaction
history and loyalty data of the past, all are
combined to provide customized experience with
both online & offline
• Store associates can make product
recommendations to in-store shoppers based on
customer’s online shopping behaviour
14. 12
7. Benefits to the Customer conferred by Omni Channel Approach
Amongst fierce competition in both offline and online retail, seamless customer experience has become a
key differentiator. Retailers have started to focus more on delivering a perfect experience online, in-store
and through call centres. Not only do these channels need to be optimised but also integrated to provide
seamless, consistent and personalized consumer experience. Omnichannel retail is a single stop solution
to bridge consumer experience gaps.
a Shopping Convenience In today’s fast-paced world, shopping convenience is
the leitmotif of the customer expectations from brands
and retailers. More than ~40% customers want to have
the freedom of return and exchange at the channel of
their convenience.
Omni enabled brands are meeting these expectations
by seamlessly integrating online and offline channels
b Consistent Experience Customers want consistent product & pricing
experience across channels. More than ~50% of the
customers want consistent promotions, prices and
product assortment across channels.
Omnichannel approach enables a brand to keep their
online and offline offerings and services in sync.
15. 13
c Relevant Interactions With the data deluge of current age, customer demands
relevant interactions with the brands. They want
suggestions and recommendation tailor-made for them.
More than 45% customers are comfortable sharing their
personal data for better insights. ~35% approve of data
sharing with the third party.
Omnichannel approach enables relevant interactions by
providing comprehensive insights on the combined data
of online and offline
Customer Empowerment Customer expects a brand to empower them for better
decision making through relevant content and
recommendation. Leading omni brands earn 80% of
their revenue from 20% of their loyal base by
empowering them for decision making
Omni enabled brands are empower their customer
through tailor-made insights and recommendation
d
16. 14
8. Indian Retailers with Omnichannel Footprints
The value proposition that comes with omnichannel retail has lured some of the major Indian retailers to
set into it. Both online and offline players have taken initiatives towards adopting omnichannel retail.
Adidas
Adidas has integrated about 200 stores with
‘Endless Aisle’ technology where shoppers are
equipped with iPads to browse and order items that
are not in stock at the physical stores. The
technology allows Adidas to have a single view of
inventory across stores. The products which were
earlier not accessible to all the customers are now
available to them at their door-step thus enhancing
customer experience to a whole new level.
Shoppers Stop
Shoppers Stop is one of the early adopters of
omnichannel retail in India. They started with
redesigning and launching a new website in 2015
followed by Android and iOS apps. The company
also set up anchor stores on e-tailing platforms
such as Snapdeal, Flipkart, Amazon, Jabong and
PayTM. Customers can shop across platforms and
can avail ‘Click and Collect’ features. Shoppers
Stop is aiming to corner 10% of its total sales from
online omni channel by 2020. They are also
expecting 100 per cent sales growth in FY’18-19.
Better Responsiveness Customer expects a brand to be responsive and
transparent in their communication
Omni enabled brands uses both online and offline
channels to communicate to customers effectively
and urgently
e
17. 15
Soch
Women’s ethnic wear brand Soch is another
player which has invested in omnichannel retail
adoption. Soch has integrated inventory across
all its stores. The endless aisle technology was
staff facing but customer-facing endless aisle has
been rolled out in selected stores.
Lenskart
Lenskart is one of the early online players to adopt
omnichannel retail by opening about 100
franchised stores where customers can try on
different frames before placing an order online.
Lenskart focuses on maintaining a ‘Single view of
Customer’ across channels thus helping them
retain more customers by providing a seamless
experience. Lenskart reported a revenue of INR
179 Cr in FY’17, an increase of 79%. Shipping,
Collection and Packaging costs also went down
by routing all local orders through stores.
Omnichannel retail rollout has helped Lenskart
come closer to achieving profitability.
19. 17
Shubham Anand
Lead- Retail & CPG
shubham@redseerconsulting.com
Shubham is leading Redseer`s growth into verticals like Retail-CPG.
He has an in-depth understanding of India`s changing retail landscape and has worked with
brands and funds across fashion, lifestyle, & electronics domain along with big conglomerates
with multi-industry focus in their growth journey.
He is an IIM Lucknow alumnus
Pankaj Sing Bhati
Consultant
pankaj.singh@redseerconsulting.com
Pankaj is a Consultant with RedSeer and has 4+ years of experience in strategy creation in
retail & omnichannel enablement.
He has an in-depth understanding of omnichannel and has worked with brands and funds
across beauty and pharmaceutical industries.
He is an IIM Kozhikode alumnus
Siddhant Kalra
Business Analyst
siddhantk@redseerconsulting.com
Siddhant is a business analyst with RedSeer and has 1+ years of experience.
He has worked on assignments covering market sizing and competitive benchmarking
in retail industry.
He is a BITS Pilani alumnus
Authors