Reason Analytics


Why Analytics in Retail?

side from bespoke analytics solutions for Retail, using it’s extensive knowledge of the retail industry, Reason has built a retail analytics accelerator solution which takes your retail reporting to near best practice with the thinking and work around the following areas being already completed:

  • What to report on and the best way to report on it
  • Reporting best practice architecture to ensure an optimal end user experience
  • Data types/model required
  • Security and deployment

Reason analytics has a deep understanding of the retail businesses having implemented various retail projects in the past in the following business types:

  • Large national sporting goods retailer.
  • Large multinational clothing retailer .
  • Various food businesses .

Want to make your retail business more data driven and transform the customer experience, we can help.

Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10% of the country’s gross domestic product (GDP) and around eight % of the employment.

India is the world’s fifth-largest global destination in the retail space. The retail sector in India accounts for over 10% of the country’s GDP and around 8% of the workforce (35+ million). It is expected to create 25 million new jobs by 2030.

The retail sector in India is expected to reach a whopping US$ 2 trillion in value by 2032, according to a recent analysis by the Boston Consulting Group (BCG).

India is the world’s fifth-largest global destination in the retail space. In the FDI Confidence Index, India ranked 17 (after US, Canada, Germany, United Kingdom, China, Japan, France, Australia, Switzerland, and Italy).

The emergence of the retail market in India presents various challenges, such as dynamic consumer behavior and inventory management.

 

The emergence of the retail market in India presents various challenges, such as dynamic consumer behavior and inventory management. These tools enable retailers to track key performance indicators (KPIs) like sales performance, inventory turnover, and customer satisfaction. By visualizing data through interactive dashboards, management can gain insights into market trends and consumer behavior, aiding in strategic decision-making. Qlik and Tableau facilitate predictive analytics, allowing retailers to forecast demand, optimize pricing strategies, and enhance overall operational efficiency.

Access to real-time data empowers management to make informed decisions promptly, adapt to market changes, and stay competitive in the evolving retail landscape.

Indian Retail Industry
Retail Market Chart

Evolution of Indian Retail Industry and Digital Relevance

Market Size

As per Kearney Research, India’s retail industry is projected to grow at 9% over 2019–2030, from US$ 779 billion in 2019 to US$ 1,407 billion by 2026 and more than US$ 1.8 trillion by 2030.

India’s digital economy is expected to touch US$ 800 billion by 2030 and the E-Commerce market is expected to touch US$ 350 billion in GMV by 2030.

                                                             INVESTMENTS/ DEVELOPMENTS

The Retail sector in India has seen a lot of investments and developments in the recent past.

  • Reliance Industries is likely to sell another 8-10% stake in Reliance Retail Ventures Ltd (RRVL) to fund expansion, retire debt and prepare for the initial public offering of the conglomerate’s retail business.
  • Reliance Consumer Products, the FMCG arm of Reliance Retail announced the launch of its made-for-India consumer packaged goods brand ‘Independence’ in Gujarat.
  • IKEA, the Swedish furniture maker has drawn up plans to invest Rs. 850 crore in its Indian operation.
  • Swedish retailer H&M is set to launch its home décor and accessories products such as dinnerware and bed linen in India next month. H&M HOME will be available on the company’s website and through Myntra in March.
  • Lulu Group, a UAE-based retail company, will invest Rs. 2,000 crore to develop a shopping mall near Ahmedabad in Gujarat as part of its plans to expand business in India.
  • India’s retail trading sector attracted US$ 4.48 billion FDIs between April 2000- June 2023.
  • According to data released by the Ministry of Statistics & Programme Implementation (MoSPI), India’s Consumer Price Index (CPI) based retail inflation stood at 6.44% YoY in February 2023.
  • In November 2022, Aditya Birla Fashion and Retail Ltd. entered a strategic partnership with the Galeries Lafayette to open luxury department stores and a dedicated e-commerce platform in India.
  • In August 2022, Louis Philippe, India’s leading premium menswear brand from Aditya Birla Fashion and Retail Ltd., announced the launch of its outlet in Vadodara, Gujarat.
  • In August 2022, Wipro Consumer announced the launch of traditional snacks and spices as it forays into packaged foods.
  • In July 2022, Reliance Brands Limited (rbl) partnered with Maison Valentino to bring to India the most established Italian Maison de Couture.
  • In June 2022, Reliance Brands Limited inks a JV with plastic legno spa to strengthen toy manufacturing ecosystem in India
  • In June 2022, Aditya Birla Group formally launches TMRW – a Digital First ‘House of Brands’ venture in the Fashion & Lifestyle space
  • In May 2022, Reliance brands limited (rbl) partnered with Tod’s S.p.A, the iconic Italian luxury brand to become the official retailer of the brand across all categories including footwear, handbags and accessories in the Indian market.
  • In April 2022, Wipro Consumer Care inaugurated its factory in Telangana. It has invested in a state-of-the-art soap finishing line that runs on highest speed of 700 Nos of soap /minute.
  • In FY22 (till 20th March 2022) total number of digital payment transactions volume stood at Rs. 8,193 crore (US$ 1.05 billion).
  • In July 2023, UPI transactions were valued at Rs. 15.33 lakh crore (US$ 185.60 billion).
  • In March 2022, Reliance Brands has bought the India franchisee rights and the current Sunglass Hut retail network from DLF Brands.
  • Retail tech companies supporting the retail sector with services such as digital ledgers, inventory management, payments solutions, and tools for logistics and fulfilment are taking off in India. The industry growth is phenomenal and encouraging business houses to take dynamic and informed decision to stay competitive .The role of analytics and data Visualization tools like Power BI/Qlilk /Tableau can play a crucial role in this aspect.
  • In November 2021, Department for Promotion of Industry and Internal Trade announced that it is working on a regulatory compliance portal to minimize burdensome compliance processes between industries and the government.
  • In October 2021, retailers in India increased by 14% compared with last year
  • With the rising need for consumer goods in different sectors including consumer electronics and home appliances, many companies have invested in the Indian retail space in the past few months.
  • In October 2021, Reliance announced plan to launch 7-Eleven Inc.’s convenience stores in India.
  • In October 2021, Reliance Retail introduced Freshpik, a new experiential gourmet food store in India, to expand its grocery segment in the ultra-premium category.
  • In October 2021, Plum, the direct-to-consumer beauty & personal care brand, announced plan to launch >50 offline stores across India (by 2023) to expand its customer base.
  • Tanishq, Shoppers Stop and Bestseller India (sells fashion brands Vero Moda, ONLY and Jack & Jones) plan to add 10-35 stores in FY22.

                                                                         ROAD AHEAD

The COVID-19 pandemic has caused changes in consumer preferences, habits, and attitudes over the past two years. This has a significant impact on how people buy and consume goods and services. Global retailers are now using cutting-edge business strategies to take advantage of new retail opportunities. Consumers no longer distinguish between offline and online consumption channels. Due to this, major companies are experimenting with different ways to design seamless retail experiences that are integrated across all channels.

By utilising both established e-commerce platforms and traditional techniques, retailers are also experimenting with revenue models to improve their customer value offer.

Online retail market in India is projected to reach US$ 350 billion by 2030 from an estimated US$ 55 billion in 2021, due to rising online shoppers in the country. Online penetration of retail is expected to reach 10.7% by 2024 versus 4.7% in 2019. Nevertheless, long-term outlook for the industry looks positive, supported by rising income, favourable demographics, entry of foreign players, and increasing urbanisation.

So it can be concluded that based on the statistics and` industry growth projections , Key players in Retail Sector is bound to more inclined to the digital platform and Analytics will pave the way for success .

So , please think of Reason Analytics for your innovative digital solution ….

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