Digital trends in the retail sector are transforming how brands and retailers connect with customers through digital channels like e-commerce. The Indian e-commerce market is growing rapidly and projected to become the second largest globally by 2034. Retailers are embracing technologies like hyperlocal delivery, digital tools for small Kirana stores, mobile commerce, artificial intelligence, and social commerce to improve customer experience and drive sales across physical and online platforms. Product identification standards help retailers and brands sell goods through both conventional and digital channels.

1. Digital Trends in the
Retail Sector
KIRAN MANDRAWADKAR
+91 9886 733 833

2. e-commerce trends that brand owners and
retailers follow to bridge the gap between how
they sell today and what their customers expect
in the digital economy.

3. Digital transformation is successfully
transcending physical and digital channels as
brand owners and retailers continue to invest in
digital mediums to grow the reach of their
products and sell more.

4. The Indian e-commerce industry has seen
tremendous growth, according to an industry
study by IBEF, and is projected to overtake the
US’ e-commerce industry to become the world's
second-largest e-commerce market by 2034.

5. Offering a huge opportunity for retailers, the
industry is characterized by rapid transformation in
terms of product innovations, new channels, and
augmentation in emerging technologies.

6. The Rise in Hyperlocal Commerce

7. Although books spurred the initial momentum of e-
commerce, fashion/apparel, and electronics follow the
next phase of growth, especially in emerging economies
of India and the Middle East.

8. Hyperlocal SKUs such as grocery, personal care,
beauty services, food, and FMCG products will
drive this development.

9. And rightly so because of several factors mainly
linked to trust reasons, Asian customers tend to
shop at their local neighborhood stores.

10. Emergence of Kiranas

11. Kirana stores have long been an integral part
of the retail fabric in India, currently
accounting for almost 90% of FMCG sales.

12. The rise of digitization in the Kirana world has
worked as a catalyst that enabled the integration of
digital technologies in the pursuit of ever-growing
profit margins.

13. Digital innovations like cloud technology, Snapbizz
‘Smart’ billing solutions, POS systems, and
wholesaler apps allow them to replenish faster,
enhance store efficiency, and attract new customers
by upgrading the shopping experience.

14. The small retailers who are traditionally operating
on a ‘store-only’ model, have now adopted digital
technologies and applications like ‘google sheets’ to
maintain stocks, mobile apps of wholesalers to
place orders, etc.

15. Some Kirana stores have also quickly transformed
into fulfillment centers for e-grocery portals to
keep the business going and furnish demands
arising out of the neighborhood.

16. Mobile Commerce

17. With the high penetration of mobile phones in
India, mobile trade or mCommerce is going to be a
major extension of e-Commerce with the potential
to outstrip its parent, in terms of revenue,
contribution rates, and conversions.

18. The Advent of Artificial Intelligence (AI)
and Machine Learning (ML)

19. • One thing that has helped e-commerce giants like Amazon in gaining a competitive
advantage over other e-Commerce firms is their ability to use AI and other cutting-
edge technologies to develop and expand all facets of their market.
• By using ‘Natural Language Processing’ to drive Alexa and leverage collaborative
filtering to customize suggestions, and optimizing its logistics by predictive
rerouting, Amazon has continued to extend AI and ML use cases.
• Although many firms not just in e-commerce already have automated systems in
place, troubleshooting is typically left to actual employees.
• Flipkart is applying artificial intelligence-based deep learning and Machine Learning
models to resolve last-mile delivery issues, which helps to save time and resources
at different stages of order management.

20. • As AI provides fast, accurate, and much-needed clarity to avoid logistical failures and
save costs, with this, Flipkart manages customer expectations and trust levels by
ensuring reliability.
• In India, new digital reality comprises platforms that don't bind just a section but
offer diversities in languages.
• People are more inclined to use apps and digital infrastructure that support their
regional language and voice-based queries, which make them highly accessible.
• Even retail giants like Reliance Retail has also started taking orders on WhatsApp for
the convenience of their customers, during the lockdown period.

21. Social Commerce to become key revenue channel

22. Over the last few years, social trade has steadily
gained traction, and 2020 is predicted to be its
'flywheel' moment. It's a perfect way for brands to
reach more consumers at a lower cost, in addition
to simplifying the buying journey.

23. This is expected to become the third big distribution
channel in the coming years, taking its place
alongside e-commerce and conventional retail.

24. To ensure goods can be sold through conventional
retailers and digital platforms, including online
marketplaces, accurate identification of products is
important. GTINs (unique product coding standard)
enables brand owners to identify products and sell online.

25. Stay tuned for more....
KIRAN MANDRAWADKAR
DIRECTOR – DIGITAL
+91 9886 733 833