The retail industry is poised for a significant disruption. The landscape today already looks very different than it looked a decade ago. There are some major shifts that are impacting this:
Changing face of the consumer
The consumer landscape will see a significant shift over the coming decade. The US will see a shift in the baby boomer, millennial and the Hispanic landscape. Europe will also see an increase in the ageing population, while millenials become a major force. Asia will emerge as the dominant market with an enormous value conscious middle class. All this means that the nature of retail will change due to the different behaviors and needs of these groups.
Instant, Convenient, Personalized, Immersive
Buzzwords in the new world of retail. Consumers are looking for experiences that engage them and are relevant to them, they are highly influenced by referrals and communities, they have all the information they need at their fingertips. With renewed optimism, a fast-paced society, and an even faster-paced change in technology, consumers want new, different goods and experiences – now!
Distribution – A key enabler
Amazon Prime recently launched 1 and 2 hour delivery. Most retailers are moving to offering free of cost delivery and the delivery times are reducing. Enabling this is a huge distribution challenge. Going forward distribution capability will become a key strategic differentiator.
Who is not a retailer today? Google and Facebook have entered the fray, CPG companies are also exploring the model of direct to consumer. Retailers themselves are trying to play in multiple formats to be more relevant to the consumer needs. At the same time local presence is extremely key and hence online retailers are looking at set up local stores. Thus the competitive environment is a very dynamic one.
Challenges and opportunities
Emerging successful through this landscape will necessitate retailers to rethink their strategies to stay ahead in today's ‘click-and-mortar’ retail game. The opportunities are tremendous, but not all will win. We see a significant amount of consolidation and the emergence of clear winners and losers over the coming decade. The winners will need to address key strategic questions faced before them:
- How do we provide today’s digital consumer with an immersive, personalized and seamless omni channel experience?
- How do we orchestrate our supply chain to be able to deliver on the product in the most optimal manner to the customer?
- How do we lower our cost structure to help deliver value to the customers and shareholders?
- How do we adopt to the fast paced technology environment and reap competitive advantage from it?
- How do we make our organization more innovative, creative and agile to be able to win in the marketplace?
These are some of the key questions that retailers will need to work on. This in essence necessitates them to #RethinkRetail.
How Infosys delivers business value
At Infosys, we have been working on these industry challenges proactively and have developed a set of offerings for retailers leveraging our vast experience of having worked with industry leading retailers. We do this by helping organizations:
Help retailers realize value by transforming their processes and technology landscape. We do this while helping establish the right organizational constructs and enabling an environment of collaboration, creativity and agility. A combination of talent, tools, platforms and intellectual assets help us realize value for our customer.
Work with retailers to innovate and co-create leveraging the latest technologies. We do this with a focus on agile value delivery and a philosophy of Fail Fast, Fail Early, Fail Cheap!
Help retailers run a hugely cost effective and efficient operations across the business operations and technology landscape. We do this by leveraging a set of services, tools and a global presence to be able to service the global market needs.
All these services we provide with Human Centric orientation driven by the methodology of Design Thinking. This helps us to leverage our knowledge, imagination and creativity to deliver value through agile experimentation.