INSIGHTS IN RETAIL TRENDS

Dr. Noor Firdoos Jahan

 SOME DEFINITIONS
• Retailing includes all activities involved in selling goods or services directly to
final consumers for personal, non-business use – Philip Kotler

• A retailer or retail store is any business enterprise whose sale volume comes
primarily from retailing

• A retailer may be defined as a ‘dealer or trader who sells goods in small

quantities’
 INTERNATIONAL RETAIL-AT A GLANCE
• One of world’s largest industry exceeding US $ 9 trillion

• 47 Global Fortune 500 companies and 25 Asia's Top 200 companies are Retailers

2 9
• Dominated by developed countries 3
38
8

• US, EU & Japan constitute 80% of world retail sales

13

• Biggest player in India – Pantaloons' total group

• sales is about 2 Walmart super centres annual revenues
27
US EU Japan China India Russia Rest of World
 RETAIL LANDSCAPE IN INDIA
• Indian retail – dominated by unorganised sector
• 2 Million plus Mon and Pop Stores
• Organised sector estimated to be between 4-6% only
• FDI in retail not permitted to protect local retailers (excepting for single
brand and cash and carry formats. In this FDI is 51%)
• Indian retail is one of the least concentrated in the world
• India is third largest market in Asia and Oceania, behind Japan and
China
• Indian Retail is dominated by food and grocery which contributes
>65% of total market size and almost 99% is dominated by Kirana
stores.
 GLOBAL PLAYERS
• Highly evolved US market has Walmart as the leader which
has only 8% market share of US $ 2350 Billion

• UK Market has TESCO with only 13.4% market share of US$

406 Billion

• China still does not have a clear leader. Market size is US$
313 Billion
 TOP RETAIL TRENDS IN 2018
• Trend 1 – The customer experience is more important than ever
Experience per square foot will be the new retail metric to measure success.

• Trend 2 – Artificial intelligence will gain more clout

Artificial Intelligence will gain more clout with some executives predicting that 85 percent of all transactions
will be AI based by 2020. 2018 will be the year we see AI being deployed at scale.

• Trend 3 – The rise of the conscious customer will continue

The rise of the conscious customer will continue as consumers base their buying decisions on many factors
beyond price

• Trend 4 – The retail world we were promised is now here

Retailers have arrived at the intersection of elevated consumer expectations and technical possibility.

• Trend 5 – A tale of two hemispheres is playing out

A tale of two hemispheres is playing out as platform players and non traditional retailers expand their
reach and offerings. The juxtaposition between what is happening in the West and the East will
dominate the retail landscape
 TECHNOLOGY IS CHANGING THE CUSTOMER
EXPERIENCE
• Technology’s role as an enabler is becoming more and more
significant
• The coming year will see consumerisation of technology touch an all new level with consumers
not just in control of brands but also open to new paths of purchase.
• The era of digital consumerism is now here to stay

• Indian Retail which was $641 billion in 2016 will grow to $1.6 trillion
by 2026
• Share of Organised retail which is 7% currently will grow to 24% by 2020
• Technology will enable most brands to create customised shopping experiences for large or
small format retail.

• Applications using technologies such as Virtual Reality (VR) along

with Augmented Reality(AR) will eliminate customer pain points,
elevate customer service and create differentiated ,
personalised customer experience thereby offering retailers the
opportunity to transform the way people shop.
 KEY LESSONS FOR
RETAIL MARKETING
SUCCESS
1. Customer experience is the key
to success. The commercial
battleground is no longer just
price, product or efficient supply
chain. It is now customer
experience.

2. New metrics for success are

taking over. Experience per square
foot will become an important
metric.
3. Don’t give up on brick and mortar.
Understand the balance of digital and e
commerce required in order to reach
your customer. F

4. Understand how AI can help your

business. In 2018 we will see more AI
adoption. Retailers need to understand
where AI fits within their organization.
5. Look externally to help build your technology. The best way
for many companies, to achieve successful implementation of
technologies is to look outside their own four walls.

6. Stay true to the core of your brand. Customers want

authenticity and transparency. They want to know exactly
who they are buying from.

7.Understand that the customer has changed. It is important

to understand that the old ways of doing customer
segmentation aren’t sufficient. You need a multidimensional
view of your customer.
8. Recognizethat customer expectations have
changed and retailers who don’t meet expectations
are no longer contenders.

9. Be knowledgeable about what Eastern retailers are

doing. Advances in the East could be an indication of
how retail will change in the West.

10. Embrace the new retail world – it is here. The tools

and technologies to transform retail have arrived.
‘It is not the strongest of the
species that survives, nor the
most intelligent that survives. It is
the one that is most adaptable
to change’ – Charles Darwin